Liam Tayler Allyson Nash L í dia Mongay

1. Liam Tayler Allyson Nash Lídia Mongay

2. Market Statistics • The UK figure for people eating out of home (34%) • By year 2025 50% of food consumption will be out of the home • Eating out is in the fourth place of UK customer spending after food, housing and cars Eating out is no longer just a treat or a luxury – it's a fact of modern life

3. Market segmentation Professional (286,600) Residential (5,200) Tourist (5,000) Other (5,000) • Professional Segment • Male and female • Ages 25-55 (divisible into 2 main target groups) • Young professionals • Have attended college or graduate school • Eat out at least once a week • Yearly income between £25,000 and £100,000

4. Demographics

5. Needs Identified • Possible Scenarios • For the Bar: • Scenario 1: Quick lunch/snack business drink with for discussion with colleague/client. • Scenario 2: After work drink with tapas (formal). • Scenario 3: Recreational drink with tapas (informal). • For the Restaurant: • Scenario 1: Working lunch/dinner with colleagues/client (formal). • Scenario 2: Recreational lunch/dinner (informal).

6. General Concept • Unique Spanish environment where the local population of The City can relax and enjoy Spanish montaditos and culture. • Spanish style montaditos bar with food lining the bar. • Restaurant offering high quality Spanish food and tapas. • The payment process for the bar is going to be based on the number of ‘palillos’ the client has collected. • We aim at excellence and exceeding the expectations of our customers.

7. SWOT Analysis Weaknesses Strengths • Limited budget to develop brand awareness • New concept in the market • Start-up • Short term 'fashionable' foreign food trend • New Concept • Existing know how • MBA experience • Suppliers in Spain • UK people eating out will grow from 34 % 2002 to 50 % in 2025 • Global trend of healthy and natural food • High expenditure on drink and food • Cultural differences in eating and drinking habits • Fashion driven market • Low entry barriers Opportunities Threats

8. Competition

9. Development Quality Service Menu Food Concept and Market Price Location Atmosphere Management

10. Product & Price Product Spanish based drinks: • Wine, Beers, Coffee. Bar Food: • Tapas in a 'montaditos' form although assorted traditional tapas will also be provided. Restaurant Food: • Delicious traditional Spanish cuisine (main meals, montaditos and tapas). • Price • The pricing policy finds a balance between the customer's perception of value and a reasonable contribution to profit. • Cost-Based pricing: • Competitive pricing • Contribution based pricing

11. Place & Promotion • Place • Defined by the availability of rentable spaces, in accordance with our target market. • Promotional Objectives • Increase consumer awareness of the restaurant • Improve consumer perception of the restaurant • Entice 1st time buyers to try the restaurant • Promotional Mix • External promotion • magazines, emails, flyers, posters and tasters. • Internal promotion • 'on the house meal'

12. Layout Total: 115 sqm Restaurant: 44 sqm 36 seats 18 tables for 2 Kitchen: 30 sqm Bar: 42 sqm 10 m counter 10 stools 30 ps

13. Kitchen layout • Kitchen Equipment • Storage equipment • Fabrication and preparation equipment • Preparation and processing equipment • Assembly, holding and serving equipment • Cleaning and sanitation equipment

14. Process map

15. Critical processes Key processes Food preparation Order processing Service protocol Stock control • Strategic processes • Quality control • Customer satisfaction • Employee selection • Raw material supply • Scrap policy Support processes Training Communication Maintenance IT

16. Capacity-demand Capacity 2004 Weekday • 760 montaditos • 120 meals Saturdays • 250 montaditos • 80 meals

17. Human Resources Job category Salary (£) Manager 2.500 Chef 2.000 Kitchen hand 500 Head Waiter 800 Waiter 650 Bar tender 650 Bar/restaurant hand 450 Cleaner 450 1 manager 1 chef 1 head waiter 1 cleaner 5 waiters 4 bartenders 1 restaurant/bar hand 2 kitchen hand Total £13,050

18. Action plan

19. Financial Plan Total investment of £150,000: • Shareholders equity: £30,000 • Shareholders debt: £15,000 • Working capital loan of £36,000 • Fixed asset leasing £75,000 Recouped in 11 months ROA of 103% ROE of 131%

20. Sales Forecast 1 Standard menu constructed using market research from different restaurants of the City (Spanish restaurants and Tapas Bars). 2 • Optimal scenario. • opening hours • average spending • average turnaround Average spending was calculated simulating “typical” consumption patterns for each of the different opening hours 3 Optimal Scenario: 100% sales

21. Sensitivity Analysis

22. Growth Projections

23. Cost Structure 32% of the total costs are variable  raw materials Price Setting • A 300% mark-up over variable and later cross checked with the competition pricing structure to adjust Montaditos prices competitively. • Fixed costs include: • Labour • Utilities, • Rent, among others

24. Break Even Point Break Even Point: £30,000 a month

25. Balance Sheet Provisional Balance as of Dec 2004 • The provisional balance for the end of the first year leaves the company • 85% equity financed • In a risk averse position • Possibility of going into debt in the following years for expansion

26. www.montaditos.co.uk