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Proposal

: Outsourcing Proposal

: English : : ENG214W FT12-4

: ......................................................... /FT12B002/ : ............................................................ . /Ph.D/

.2014

2014 4 22

Outsourcing Proposal . /FT12B002/

Contents
1. Executive Summary 2. Company History 3. Intention 4. Benefits 5. Summary 6. Appendix 1

Outsourcing Proposal . /FT12B002/

Executive Summary

The goal of this proposal is to outsource our brand Darui Cafe to Japan with your helping hand. Since Japan has a freshly developed business market our company members are expecting high-anticipation which later can tighten our relations. Darui Caf has been operating for 20 years which led us to a highly respected organization among public. Currently our organization has a branch located in Korea which has been operated for 5 years without any issue. Furthermore, were hoping a same result in Japan due to a research made by our research manager in Japan for 1 year.

Outsourcing Proposal . /FT12B002/

1. Company history Darui Caf was founded by John Lockheart (CEO of the company) which grew into a popular chain of 1500 cafes that owns $10 billion business from a small Denver soup, salad, and sandwich restaurant. Our company can be defined as a Multi-Unit restaurant business in the US. In 2009, the U.S restaurant and contract foodservice industry was a $500billion industry with 960 locations. Multi-unit restaurant concepts represented approximately 25% of the industry by units, with independent operators as the balance. The restaurant and foodservice industry in the US is highly fragmented.

Outsourcing Proposal . /FT12B002/

2. Intention
As our research we find that most of the people in Japan go to quick service cafe because they are busy. Mostly teenagers living in Japan, they usually like to go quick service restaurant with their friends to spend time more efficient. There is good chance to increase our profit by outsourcing. We can give you a guarantee that if you franchise a quick service restaurant you will gain more benefits and profits. We all want to gain a more profits. Thats why we researched about this business and chosen to open a quick service cafe in Japan.

Outsourcing Proposal . /FT12B002/

3. Benefits
All of quick service cafe have got lower risk and lower return. But with this kind of opportunity if you are outsourcing our quick service restaurant in Japan you can get more profit. Teenagers are coming to our restaurant because our restaurant is very nice place to spend time with friends. It means you will get more profit with more lower risk. Thats why we are going to open a new quick service cafe in Japan.

With a population of over 1.4 billion people and annual GDP growth of 14.5% over the past decade, Japan is ripe for investment. Two additional trends attracted US restaurants: Japans urban population rose from 36.2% of the total in 2000 to 46.6% in 2009, and a strong middle class emerged whose per capita income surged from RMB 6282 to 17175.(RMB 1=USD 0.15)

Outsourcing Proposal . /FT12B002/

4. Summary
Outsourcing our restaurant will offer you many benefits. First one is lower risk because our restaurant is quick service restaurant. Once you started your cafe in Japan you can run smoothly without oversight. Second one is quick service cafe is very simple and easy to control all profits and loss. The last and biggest one is our royalty is $46,800. You will pay us only $46,800 and you can run your business. Weekly sales is $15,000 in Los Angeles you can get more profit in Japan because new fashioned quick service cafe will be very big opportunity in Japan. Also Capital requirement is lower than other restaurants except Papa Johns Int`l Inc. But they are old fashioned and having debt.

Outsourcing Proposal . /FT12B002/

5. Appendix 1
Darui Cafe Estimated Income Statement in Japan

6.
7. 8. Revenues Sales 9.248.134 9. Roylaties 603.365

10. Ingredients

945.924

11. Total 10.797.423 12. Costs and Expenses 13. Food & Paper 2.623.712 14. Labor 2.933.980 15. Occupancy 16. Total 6.264.482 17. Food and paper good inventory 18. Depreciation and amortization 19. G&A 20. Marketing 1.239.413 21. Pre-opening expenses 22. Total Costs and expenses 3.237.458 23. Operating profit 1.295.483 24. Interest expense 25. Other Expense 26. Income before tax 27. Income tax 28. Net Income 4.725 29.624 1.261.134 480.571 780.563 29.974 776.902 480.711 710.458 706.790

Outsourcing Proposal . /FT12B002/

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