Business Plan Part 2
Please redo the attached but the business needs to stay the same. I received a C on this assignment.
Note: Briefly describe your business. Is your business a new venture? Does your business already exist? Where do you conduct business and where is your business located?
[Type Summary introduction here using the above notes as a reference]
Note: Describe the ownership and legal structure of the Company. Who or what owns your company and what is the ownership arrangement? Is your company a sole proprietorship, a partnership, an S Corporation, a C Corporation, an LLC, an LLP or other?
Why was your company ownership and legal structure established this way? How is the ownership divided among partners and/or stockholders?
[Type Company Ownership here using the above notes as a reference]
Note: Describe the history of the Company. If the Company has been established and operating for some time, explain how the company was started, the vision and how it got to where it is now. If the Company is a start-up, explain how the idea to start this Company has come about.
[Type Company History here using the above notes as a reference]
BUSINESS PLAN FOR THUCHI LOUNGE AND RESTAURANT 6
Business Plan for Thuchi Lounge and Restaurant
Business Plan for Thuchi Lounge and Restaurant
Thuchi Lounge and Restaurant aim to focus on preparing New American-Swedish dishes with a small touch some Asian meals. Thus, inspired from varied cuisine’s specialties, the menu will appeal to many clients. In addition to a three-course business lunch prix fixe, the hotel will offer a three-course dinner Prix file and a regular menu. The hotel will open daily, whereby lunch will be served to start from 11:20 AM to 2:40 PM on weekdays, between 5 pm and 10 pm for Sunday dinner and 5 pm to 11 pm for Saturday and Friday dinner. On Saturdays and Sundays, the restaurant plans to serve brunch from 11 am to 3 pm. The hotel will not operate on Christmas, Thanksgiving, and New Year’s Days. However, operations will continue as usual on Memorial Day, Labor Day weekend and Fourth of July; the reason being that these are critical weekends that attracts many tourists.
Local artists will play a significant part by showcasing their work in the form of drawings and paintings in the restaurant. Once every month, the hotel will host a new artist to showcase their talent as a way of providing the art community with the opportunity to show their capability to large clientele from domestic and international destinations. For the opening night, the restaurant will send special invitations to attract many individuals. The shows can only be held in the lounge to ensure that the attendants will also seek restaurant services. When most restaurants and bars are closed, we plan to have a restaurant night to allow for socialization of other restaurant employees and owners on a night off in addition to contributing a sense of community when it comes to the local industry.
Special Wine Evenings will include five-course meals and new wines and other drinks sponsored by various distributors. During this time, interested clients can come to learn more about food and wine. Easter dinner, Labor Day weekend, Christmas dinners, and Swedish Midsummer are examples of other special evenings at Thuchi Lounge and Restaurant. At Thuchi Lounge and Restaurant, individuals can hold meetings, hold special occasions and have conversations with friends and families. On these special occasions, the hotel can either make full course meals or special hors d’oeuvre according to client’s needs.
Thuchi Lounge and Restaurant is an LLC corporation, owned by its founders. Khan (2014) says that setting up a limited liability restaurant protect the owners from personal responsibility. In case of occurrence of a risk, only the money invested in the business can be lost. Thuchi Lounge and Restaurant plans to open a chain of restaurants as it grows; thus, the management will set up separate limited liability corporations for each location. In the case of a lawsuit, only the assets of the individual restaurant are at risk. For starter business, Steele (2007) believes that an LLC is more flexible and simpler to operate as it does not have many requirements for shareholder meetings, a board of directors in addition to other managerial formalities.
When it comes to profits, entrepreneurs of an LLC can divvy share the revenue as they chose unlike shareholders in corporations who have to get a proportion to their percentage ownership in the business. With this structure, Thuchi Lounge and Restaurant can entice investors as well as members of staff with a share of the profits despite these people having not contributed equity in the start of the company. The profits of an LLC company are subject to taxation based on corporate entity or a pass-through entity system of taxation. What this means is that the restaurant avoids paying profits on owner’s personal income and corporate profits. While most limited liability companies chose the pass-through tax structure, others prefer C corporation tax system to save money by plowing back profit into the venture tax-free.
Ireland (2008) explains that LLCs operate under state statute rather not federal stature. It is, therefore, important to check on the particular state’s regulations and rules before establishing a business as a limited liability company. Notably, this kind of business is protected against possible liabilities; if a customer has an allergic reaction to the food in the restaurant, for example, the company is responsible for the damages which mean that the owners and other stakeholders are not legally accountable. Particularly, this is one of the main reasons why Thuchi Lounge and Restaurant chose this ownership structure.
One of the founders of Thuchi Lounge and Restaurant will be involved with the management of kitchen and personnel while the other will focus on financial issues. The company is in need of a 2,500 to 3,000 square feet restaurant space in Washington and Virginia. The founders are committing 60,000 dollars in capital from their personal savings and an additional 200,000 dollars SBA 7(A) loan plus a 125,000 dollars investors’ capital. The start-up costs amounting to 385,000 U.S. dollars is particularly expensed equipment, liquor license, consulting and legal fees, rent, furniture, start-up labor, painting and six months operating cash associated with starting operations of the restaurant. Depending on experience in the hotel industry, the founders believe that these are the main requirements to start-up Thuchi Lounge and Restaurant.
While people in the United States have has excellent access to healthier foods for decades, our market survey showed that there is a limited availability of New American-Swedish dishes with a small touch some Asian meals. Particularly, this is where the idea to start Washington and Virginia came from. Despite having the confidence of a market for these foods, the location has to be perfect. The founders chose Washington and Virginia as the right places since they have a flow of people. Besides, everyone, whether an art appreciator for the picture and drawings in our restaurant or prospective buyers, needs to eat. Both Washington and Virginia have well-developed cities and big town, so we are sure of a large clientele. But this market is also competitive when it comes to food and beverage as well as accommodation facilities. In this case, Thuchi Lounge and Restaurant has to maintain a quality of food and establish great employee-customer relationships by meeting or even exceeding customers’ expectations. The area chosen for the establishment of the restaurant is a perfect tourist destination considering its serene environment, access is easy, and there is a presence of a large pool of skilled workers. Arguably, all of these considerations are consistent with Thuchi Lounge and Restaurant’s goal of offering a top-quality meals experience. The marketing team plans to use word-of-mouth as the best form of promoting the company brand as the best in the food and restaurant market.
Ireland, P. (2008). Limited liability, shareholder rights and the problem of corporate irresponsibility. Cambridge Journal of Economics, 34(5), 837-856.
Khan, M. A. (2014). Restaurant franchising: Concepts, regulations, and practices. CRC Press.
Steele, M. T. (2007). Judicial Scrutiny of Fiduciary Duties in Delaware Limited Partnerships and Limited Liability Companies. Del. J. Corp. L., 32, 1.