2017 2021 Business Plan | Marcha's Brooklyn - Restaurant Business Plan Writer
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Business Plan | Marcha’s Brooklyn 2017 - 2021
Table of Contents
I. EXECUTIVE SUMMARY ........................................................................................................................................... 2
II. BUSINESS OVERVIEW ........................................................................................................................................... 3
III. COMPANY AND OWNERSHIP STRUCTURE ................................................................................................... 5
IV. PRODUCT DESCRIPTION .................................................................................................................................... 6
V. MANAGEMENT STRUCTURE ............................................................................................................................... 7
VI. OPERATIONS .......................................................................................................................................................... 8
BUSINESS OPERATIONS ................................................................................................................................................................... 8
SUPPLIERS .......................................................................................................................................................................................... 8
LOCATION & OUTLAY....................................................................................................................................................................... 8
CAPITAL EQUIPMENT & START-UP REQUIREMENTS ..............................................................................................................11
VII. STAFFING ............................................................................................................................................................ 11
VIII. MARKET ANALYSIS ........................................................................................................................................ 12
TARGET SEGMENTS ........................................................................................................................................................................12
PRICING STRATEGY ........................................................................................................................................................................12
SALES & PROMOTION.....................................................................................................................................................................12
COMPETITORS .................................................................................................................................................................................13
COMPETITIVE EDGE .......................................................................................................................................................................14
SWOT ANALYSIS ............................................................................................................................................................................14
IX. FINANCIAL ANALYSIS ....................................................................................................................................... 15
START-UP COST REQUIREMENTS ................................................................................................................................................15
PROFIT & LOSS FORECAST FOR YEARS 1-5 ...............................................................................................................................16
NOTE: This business plan sample was prepared by Greg Newton. Although based on a real plan,
company name, financials and other pertinent information has been modified for client privacy
and protection. Any similarities with actual companies are purely coincidental.
I. Executive Summary
Introduction
Marchas Brooklyn is a Mexican, Tex-Mex style restaurant that sells fresh tacos made to order from
scratch. Its combination of creative Tex-Mex dishes, authentic tastes and popular margaritas brings
a unique flavor to the Brooklyn marketplace, and has built up a loyal following over the past 5+
years since opening in September 2010. The business generates approximately $20,000 per month,
and is owned and operated by Mr. Grant Brooks and Mr. Joseph Smith. Grant owns Marcha’s 5th
Avenue and Joseph owns The Restaurant Shop in Park Slope, and together they have founded and
managed 10 different start-up restaurants throughout Brooklyn.
Grant and Joseph plan to bring their restaurant experience, cash flow management skills and
knowledge of the local market to open 3 new Marcha’s locations in Brooklyn over the upcoming 5
years, and share its Marcha’s Mexican, Tex-Mex flavors with NYC customers. The first proposed
location opening is at 123 Vermont Place in Brooklyn, NY.
The Market
Mexican food is the 3rd most popular menu type in the USA, representing 8% of the total national
restaurant landscape. The industry is still in the growth phase of its life cycle, and is in its sixth
consecutive year of real growth. Over years 2010-15 the Mexican Restaurants industry has grown
by 3.1%, surpassing estimated annualized GDP growth during this period. New York State has a
booming restaurant industry, where it generates $35.8 billion annually.
Marchas’ target market is made up primarily of (a) neighborhood locals, (b) young, hipster
transplants and (c) NYC Texans seeking good queso and Tex-Mex flavors. Brooklyn is home to a
wide range of traditional Mexican restaurants and food trucks, and Marchas stands out by offering
unique Tex-Mex flavors together with its high quality Mexican ingredients and delicious fresh tastes.
Management sees ample demand and profitable opportunity to expand Marchas into new locations
throughout Brooklyn.
Financial Considerations
The company will require estimated $1 million to open 3 new Marchas locations over the next 5
years. Projected start-up costs for the first Vermont Ave location is $213,500. In return, the
business is expected to generate sales of $1,300,000 in its first year of operations.
SALES SUMMARY
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $1,300,000 $1,339,000 $1,379,170 $1,420,545 $1,463,161
Gross Profit $772,085 $795,247 $819,105 $843,678 $868,988
Net Income $129,545 $184,138 $205,144 $226,780 $249,064
This target is seen as attainable through a key location and management’s experience opening
similar profitable restaurant start-ups. This business plan will discuss the tactics and strategies to
generate the revenues as stated, and the implementation to successfully become a profitable
Mexican, Tex-Mex chain in the Brooklyn marketplace.
2
II. Business Overview
Business Overview
Marchas Brooklyn (www.Marchasbrooklyn.com) is a Mexican, Tex-Mex style restaurant that sells
fresh tacos made to order from scratch. The combination of creative Tex-Mex dishes, authentic
tastes and popular margaritas gives a unique flavor to the Brooklyn marketplace and has allowed
the taco restaurant to successfully build up a loyal following customer base.
Marchas is located at 401 Washington Ave. Brooklyn, New York, and has been in operations for
over 5 years, since opening in September of 2010. The taco restaurant is co-owned and managed
by native Brooklynites Mr. Grant Brooks and Mr. Joseph Smith, who bring a high level of restaurant
experience to the company. Grant owns Marcha’s 5th Avenue and Joseph owns The Restaurant
Shop in Park Slope, and together they have founded and managed 10 different start-up restaurants
throughout Brooklyn.
The “Marchas” Concept
The taco concept comes from Joseph's upbringing in Texas, as does the name of the restaurant.
Some of the recipes are traditional, while others are original creations based on foods Joseph and
Grant themselves would love to eat. They developed their love of Mexican food over the years
through dozens of trips to Mexico, and by enjoying a variety of street food and tacos growing up.
The restaurant has been well received both by locals “born and bred” in the neighborhood and
newcomers alike.
The restaurant generates approximately $25,000 each month in revenue. In the warmer weather
the sidewalk cafe adds 30-40% more business. Marchas fills a gap that exists in the Brooklyn food
and beverage market, and management sees an excellent opportunity to expand 3 new Marchas
locations over the next 5 years. The first proposed location opening is at 123 Vermont Place in
Brooklyn, NY.
Commercial Viability of the Business
Driven by an improving economy, restaurant industry sales are expected to have hit an estimated
record high of $709.2 billion in 2015, which represents the sixth consecutive year of real growth in
restaurant sales1.
Mexican Food Restaurants: A Growing Market
Mexican food is the 3rd most popular menu type in the USA, representing 8 percent of the total
national restaurant landscape2. According to IBISWorld, the US Mexican Restaurants industry is in
the growth phase of its life cycle, where it generated $38 billion in 2015 and saw 2.9% positive
1
2015 Restaurant Industry Forecast by the National Restaurant Association, 2015.
2
The Mexican Restaurant Industry Landscape by CHD, 2014. http://www.chd-expert.com/resource-
center/2014-mexican-restaurant-industry-landscape
3
growth between the years 2010-2015. The industry has benefitted from (a) an increased
acceptance of Mexican cuisine in the mainstream American palate, (b) increasing immigration
populations and (c) domestic adaptations of Mexican food, such as Tex-Mex cuisine. As a result of
these major trends, industry revenue is expected to continue growing during the years to 20203.
Industry Growth Projected
Over the five years 2015 to 2020, industry value added, which measures an industry's contribution
to US GDP, is forecast to grow at an average rate of 3.1% per year, compared with estimated
annualized GDP growth of 2.5% over the same period. Thus, the US Mexican Food Restaurants
industry is exhibiting consistent, long-term growth, at a faster rate than the economy as a whole.
Likewise, the number of industry establishments is expected to grow at an average rate of 3.0%
per year over the five years to 2020. The industry is comfortably outpacing the broader foodservice
sector3.
This market research combined with Marcha’s consistent sales growth over the past 5 years
demonstrates a strong commercial viability for additional Marcha’s Brooklyn locations.
Daily Sales
The average purchase per person at Marchas is $13.75, where the weekend is the busiest time of
the week for sales.
Daily Sales Breakdown
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Mon Tue Wed Thurs Fri Sat Sun
Management
Marcha’s Brooklyn is owned and managed by Mr. Joseph Smith and Mr. Grant Brooks, who
combined have opened 10 restaurants throughout their careers.
3
Mexican Restaurants in the US: Market Research Report by IBISWorld, April 2015.
4Joseph Smith | Owner-Manager
Joseph has worked in the food and beverage industry since the age of 15, where he has managed
restaurants ranging from high-end Mediterranean to a raw oyster and fried fish shack. He worked
as the Associate Food and Beverage Director for InterContinental Hotel Group, and has owned and
operated four successful independent restaurant concepts in the Brookyn marketplace - all of which
are in business today.
Grant Brooks | Owner-Manager
Grant opened his first French pastry shop with his wife at the time in 1992, which grew to two
additional locations and a production site. In 2000 they opened the bar The Restaurant Shop,
which he later took over fully owning and managing. Since 2008 Grant has worked with Joseph to
open (a) The Restaurant Shop which receives accolades and enters NY magazine competitions
each year, (b) Marchas Restaurant in 2010 and (c) NYC slice place ABC Pizzeria in 2013.
As business partners Joseph and Grant have an excellent working relationship and have worked
together in several different restaurant projects. Duties are split based on schedules and a work
dynamic for maximum restaurant productivity. Joseph and Grant will bring a high level of
management knowledge, experience and cohesiveness the new Marcha Brooklyn locations.
III. Company and Ownership Structure
Business Structure
The company is Marcha’s Restaurant Inc. DBA Marchas Brooklyn, and operates as an S corporation.
Percent Ownership
The company is co-owned 50% by Grant Brooks and 50% by Joseph Smith.
5IV. Product Description
Tacos & Queso
Marchas sells 12-13 different tacos ($3.50-4.50) at any given time: 2 chicken, 3 pork, 3 beef, 2
seafood, and 3 vegetarian taco options are available. Marchas also specializes in quality queso - a
Tex-Mex hot cheese dip served alongside chips, guacamole and salsa - that is also used to top the
Marchas ($7.00). Although queso is very rare in New York, it is ubiquitous in Texas and loved by
Texans as well as New Yorkers who get their opportunity to try it. The menu also includes very
popular healthy option: our cup of Black Beans and Collared Greens.
Fresh Juice Margaritas & Food Prepared by Hand
Marchas’ mix of creative new Tex-Mex items and authentic Mexican recipes is unique, especially to
this area of the country. The joint offers properly prepared fresh juice margaritas and corn tortillas
handmade from masa ground onsite at Tortilleria Nixtamal in Corona, Queens, and delivered fresh
daily. Housemade flour tortillas are finished on the griddle throughout service, and Marchas’ offers
next-level ballpark Marchas that are seriously addictive.
6Breakfast Tacos - a Texan Staple
Marchas offers breakfast tacos ($3.50) for brunch on the weekends, which is yet another Texas
staple that is very rare outside of the state. It is essentially an omelette with your choice of several
different toppings or mix-ins served on a fresh housemade flour tortilla and served with fresh salsa
verde. A serious favorite for Texans and curious Brooklynites who give it a try.
V. Management Structure
Organizational Chart
Marcha’s Restaurant operates under the following organizational and pay structure:
• Co-owners – Grant and Joseph
• Manager, Sara Fernandez - $550 per week salary (plus tips when working on the floor)
• Assistant Manager, Cat Fernandez - $11 per hour (plus tips when working on the floor)
• Kitchen Manager, Mike Gomez - $650 per week salary
• Cooks/FOH - Several cooks at $11-$13 per hour. Several FOH (front of house) at $10 per
hour.
Table 1 - Organizational Chart
Owners
(Grant & Joseph)
Manager
Sara Fernandez
Assist. Manager
Cat Fernandez
Kitchen Manager
Cooks/FOH
7Marcha’s Brooklyn currently employees 15 staff. Upon expansion, each new location will grow to
between 15-25 staff members by Year 1 of operations (variable based on sales levels and shift
scheduling).
VI. Operations
Business Operations
Marcha’s Brooklyn operates as a typical restaurant business operation, offering table service, take-
out and delivery services. Staff maintains a continual workflow to match the customer volume -
from greeting/taking customer orders, to cooking and preparing dishes, to payment and table
cleanup. Everything is done to maximize pleasure of experience for the customer, and create a
consistent experience of delicious food, cleanliness and professionalism, with positive and friendly
staff interactions.
Food ingredients are bought locally, purchased for projected levels of demand. Management works
to ensure the business runs fluidly with excellent cash flow management.
Suppliers
Management purchases all food fresh and sourced from local market to ensure quality and taste of
dishes, while simultaneously supporting local growers and reducing overhead costs.
Location & Outlay
Current Location
Marcha’s Brooklyn is located at 401 Washington Ave. in Brooklyn, NY, near the Brooklyn S line
shuttle. The business occupies:
• 450 sq feet. restaurant space first floor
• 400 sq ft of garage storage first floor
• 450 sq ft basement space
The restaurant draws customers from the following surrounding neighborhoods: Crown Heights,
Prospect Heights, Bed Stuy and Clinton Hill.
8Proposed New Location
Management intends to open 3 new Marcha’s Brooklyn locations over the next 5 years to 2021 with
a focus on the following neighborhoods: Downtown Brooklyn, Park Slope, Fort Green, Clinton Hill,
Bed Stuy and other hip yet underserved Brooklyn neighborhoods as far north as Bushwick, and
south to Windsor Terrace and Kensington.
Management is planning its first new location at 123 Vermont Place:
9Hours of Operations
Marcha’s Brooklyn is open the following hours:
• Mon – Friday 4-11pm
• Sat 11am-11pm
• Sun 11am-10pm
Hours for future locations will be based on neighborhood, where Marchas’ menu is flexible in that it
can equally satisfy breakfast, lunch and dinner.
10Capital Equipment & Start-Up Requirements
Capital equipment required for the new opening location will include: Kitchen equipment for
$20,000, POS (Point of Sale) equipment for $20,000 and new table and chairs for $5,000.
Additional required equipment includes a tortilla press, a deep cleaner and a margarita machine.
Management projects total start-up cost requirements to be $213,500, with the most significant
costs being property lease payments, cash on hand requirements, start-up inventory and
equipment purchases. Management is seeking funding to finance start-up expenses for this
opening restaurant branch.
Please see Section VIII for a list of all start-up expenses for the opening 387 Vermont Ave. location.
VII. Staffing
Each new location will require between 15-25 hired staff (full-time and part-time combination) for
the following roles: manager, assistant manager, kitchen manager, cooks, and FOH/BOH staff
(bussers/cleanup, servers/cashier). All staff members will be hired before Months 2-3 of operations,
and personnel costs are projected at $364,000 per year.
Annual Personnel Plan
Managers 85,000
Assistant Manager 45,000
Kitchen Manager 40,000
Cooks 62,000
Bussers/Cleanup 50,000
Servers 42,000
Cashiers 40,000
Total People 15-25
Total Payroll $364,000
11VIII. Market Analysis
Marcha’s Brooklyn’s primary target markets are:
• Young, hip, artsy transplants.
• Neigborhood locals, predominantly African-American (young to middle-aged).
• NYC Texans seeking good queso and Tex-Mex flavors.
Target Segments
Management segments its customers evenly into 50% locals and 50% transplants. Additionally,
75% of customers dine in, whereas the remaining 25% order take-out or delivery.
Customer Segmentation
NYC Texans,
20%
Neighborhood
Hipster Locals, 50%
Transplants,
30%
Pricing Strategy
Management will continue with its penetration pricing strategy, where the restaurant will offer its
high quality food at a slightly lower price than neighboring competitors. This will encourage
customers new to Marcha’s to trial the food and spread word-of-mouth.
Sales & Promotion
Marcha’s Brooklyn currently implements a successful social media strategy through Facebook and
Instagram. This allows the restaurant to communicate offers, showcase its menu items, spread
word of mouth and promote timely deals. Marcha’s also offers simple dollar off discounts such as
dollar-off tacos and beers for happy hour from 4-7pm Monday to Friday and dollar-off two tacos and
beans.
12Competitors
Major Players
The 5 largest players in the US Mexican restaurant industry are: Chipotle Mexican Grill, Del Taco,
Qdoba, Taco Bell and Moe’s Southwest Grill. These chains make up approximately 26% of market
share4 and have large brand awareness and convenient locations throughout the country, however
they fall short in terms of quality and authentic Mexican food in the eyes of the true Mexican and
Tex-Mex food lover.
Local Competition
Management considers its top 5 direct competitors to be: Calexico, Dos Toros, Tacombi, Kimchi
Grill and Oaxaca.
1. Calexico (Calexico.net) – Founded originally by three brothers from Calexico, California, today
Calexico has 4 locations throughout Brooklyn and offers a wide range of traditional Mexican foods
and dishes. Its food trucks and restaurant locations has been touted for its delicious tacos and
burritos throughout NYC.
2. Dos Toros (www.dostoros.com) - Similarly to Calexico, Dos Toros was founded by two brothers
who came over from California to bring true Mexican flavors to NYC. Touting fresh ingredients and
quality meats, the chain has 10 locations throughout New York with 2 locations in Brooklyn.
3. Tacombi (www.tacombi.com) – Founded in 2005 in Yucatan in Mexico, Tacombi began from
selling tacos out of a VW bus, and brought its Mexican flavors to NYC. The restaurant aims to
deliver “Mexican hospitality” through quality food and service, including made to order Mexican
juices and foods made from scratch. Tacombi has locations in Nolita, Flatiron, Montauk and Bleeker
Street.
4. Kimchi Grill (www.kimchigrill.com) – Kimchi Grill has a popular “Kimchi Taco” arm of the
business and Taco Truck that drives throughout Brooklyn and other parts of NY selling unique
Korean-style tacos, “big belly” burritos and bowls. The Taco Truck is a popular appeal for the
young hipster crowd, and NY taco lovers.
5. Oaxaca (www.oaxacatacos.com) - Oaxaca aims to offer the “Taste of Mexico” by bringing
traditional Mexican fare inspired by the flavors and ingredients of Oaxaca, Mexico. Like Marcha’s,
the restaurant sources its ingredients from local, organic and sustainable sources through its 12
locations throughout New York (with a 13th opening soon in the upper East Side).
4
The Mexican Restaurant Industry Landscape by CHD, 2014. http://www.chd-expert.com/resource-
center/2014-mexican-restaurant-industry-landscape
13Competitive Edge
Marchas’ competitive edge lies in its combination of (a) high quality ingredients - flavorful food
made from scratch and fresh-squeezed juice margaritas, (b) consistent, quality service - with
smiling staff in a hip atmosphere and large sidewalk café and (c) delicious Texas-style Tex-Mex
favorites not available in other NYC Mexican restaurants. Management additionally stands behind
fresh locally sourced ingredients and offers a consistently great experience - through prompt and
friendly service and consistently delicious food.
This combination has resonated with customers to create a strong, loyal base, and management
aims to replicate this successful formula to its new opening locations.
SWOT Analysis
Strengths
• Strong management with track record of success with start-up restaurants in the local
market.
• Management can leverage its “newness factor” as a new entrant to the neighborhood (with
second location), and generate interest, curiosity and excitement.
• Focus on food made with fresh local ingredients from sustainable sources.
• Existing loyal customer base.
Weaknesses
• Higher food cost.
• Newer business than several competitors, weaker brand recognition.
Opportunities
• Growing popularity of Mexican dishes and reality shows such as MasterChef, Man v. Food,
Kitchen Nightmares, Hell’s Kitchen and Top Chef is increasing both customer awareness and
appreciation for delicious, quality foods as Marchas offers.
• Great expansion opportunities both in NYC and other parts of the US.
• Mexican and Texan communities throughout Brooklyn (and the US).
Threats
• Intense competition (e.g. entrant of popular authentic Texan restaurant chain).
• Rise in local food costs
• A worsened US economic state could have a negative impact on disposable income levels,
economic outlook and spending habits of Americans. Any of which could negatively affect
company profits.
14IX. Financial Analysis
Start-up Cost Requirements
The following are the required start-up costs for the business. Management projects to require $1
million in funding to open the next 3 locations.
Startup Requirements
Key Money (total $135,000) 75,000
1st, Last and security 19,500
Kitchen Equipment 20,000
Tortilla Press 3,500
Deep Clean 1,500
POS 20,000
Margarita Machine 3,000
Paint 5,000
Wall Decoration/Maps 5,000
New Lights 5,000
Table/Chairs 5,000
Liquor Inventory 3,000
Food Inventory 7,000
Lawyer Fees 4,000
Liquor License 7,000
One Month Payroll Reserve 30,000
TOTAL REQUIREMENTS $213,500
Funding Allocation Breakdown
Other, $41,000
Inventory,
$10,000 Lease, $94,500
Reno/Furnishin
g, $20,000
Equipment,
$48,000
15Profit & Loss Forecast for Years 1-5
The following is the 5-year projected profit and loss for the opening Vermont Ave Marcha’s Brooklyn location.
Income and expense for Vermont Place Marcha's
1st year 2nd year 3rd year 4th year 5th year
Sales Revenues** 1,300,000 1,339,000 1,379,170 1,420,545 1,463,161
Minus: Sales Tax 8.629% -112,177 -115,542 -119,009 -122,579 -126,256
1,187,823 1,223,458 1,260,161 1,297,966 1,336,905
Minus: Cost of Goods Sold 35.0% -415,738 -428,210 -441,056 -454,288 -467,917
GROSS REVENUE $772,085 $795,247 $819,105 $843,678 $868,988
Operating Expenses:
Payroll 364,000 364,000 364,000 364,000 364,000
Rent ($5800 3% increases each yr) 52,200 80,340 82,750 85,232 87,790
Real Estate Taxes 1,000 1,000 1,000 1,000 1,000
Telephone/internet 3,200 3,200 3,200 3,200 3,200
Gas, electric, garbage, pest (3% increase per year) 42,000 42,000 42,000 42,000 42,000
Licenses, permits, fees and fines 14,000 14,000 14,000 14,000 14,000
Credit Card Fees (1.1% of total rev) 14,300 14,729 15,171 15,626 16,095
Payroll Taxes (6% of payroll) 21,840 21,840 21,840 21,840 21,840
Payroll Service 4,000 4,000 4,000 4,000 4,000
Supplies (bar, kitchen, take out and office) 32,000 32,000 32,000 32,000 32,000
Legal and Accounting Fees 5,000 5,000 5,000 5,000 5,000
Insurance: general, liquor liabilty, workers comp 14,000 14,000 14,000 14,000 14,000
Repairs/upkeep 10,000 10,000 10,000 10,000 10,000
Key Money Payback 1st year only 60,000 0 0 0 0
Other: Misc. 5,000 5,000 5,000 5,000 5,000
Operating Expenses $642,540 $611,109 $613,961 $616,898 $619,925
Net Profit or Loss $129,545 $184,138 $205,144 $226,780 $249,064
Net Income as a % of Sales 9.96% 13.75% 14.87% 15.96% 17.02%
5 years
Total Net Profit/Loss: $994,671
Weekly Revenue Breakdown Sales Payroll
Total 28%
$25,000 $7,000
**3% increase in revenue per year
16Annual Sales Performance 2014-15
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2014 2015
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