Ambully Resto Grill

Business Plan

TABLE OF CONTENT

Executive Summary
Company Analysis
Company History/ Situation
Company Location and facilities
Legal Form of Ownership
Profile of Management team
Insurance
Market Analysis
Product
Price
Distribution
Promotion/ Advertising
Industry History/ Industry Trends
Target Market and Customer Base
Barriers to Entry
Intellectual Property
Growth Opportunities
Trade Agreements/ Vendor/ Supplier Relationships
Exit Strategy
Company Revenues (projected)

Financial Analysis
Inventory
Start-up Cost Estimates
Budgets
Income Statement
Balance Sheet
Break-even analysis
Financial Ratios
Company Documents

Executive Summary
Ambully Resto Grill is a new eating establishment that will provide entrees and
grilled products in a slightly upscale yet comfortable atmosphere. The business
location has been chosen based on traffic patterns and the availability of real estate.
The establishment aims to consistently provide quality food and service to its
customers. Also, the customers of the establishment are able to bring their pets as
there is an area specially designed for pets.
The owners of the business are well versed in food preparation. To ensure the
business success, the owners will be managing the establishment, from the daily
procurement of inventory to the daily operations. The owners will be on-site much of
the time.
Overall, the owners are excited about the business and look forward to the grand
opening. While they are conservatively optimistic, they are aware of the high failure
rate in the restaurant industry. To mitigate this statistic, Ambully Resto Grill will have
strict financial measurements that will be monitored daily, weekly, and monthly basis.
The purpose of this plan is to document Grille & Bars intention of meeting the
following needs:

Analyze leasing and remodeling start-up costs

Purchase fixtures and furniture

Pay license fees

Purchase signage

Acquire initial inventory

Analyze operating capital needs

Company Analysis
Name
The name Ambully Resto Grill was chosen because the owners of the establishment
have a lot of American Bulldogs. Their love for their dogs inspired them to name the
establishment, Ambully.
Company Profile
Ambully Resto Grill is a restaurant and grill that will attract customers interested in
dining in a cozy atmosphere. The food that will be served are mostly grilled products
and Filipino cuisine. In general, the expected customers will be from the area of BF
Resort Village and neighboring subdivisions and villages. Several competing
restaurants offer a similar format, however are located closer to the center of BF
Resort Village.
The location of the establishment was chosen based on its proximity to the Friendship
Route, a route people use to keep away from the busy main road of Las Pinas. The
area has high car and foot traffic because of the Friendship Route.
Company Location and facilities
Ambully Resto Grill is planned to be located at _____.
Grille & Bar will offer a variety of hot and cold dishes with a traditional flair, and
trendy martini and mix drinks in the evening. Although the food will be traditional,
the amenities will be top shelf. The typical customer will be a young professional
with above average disposable income. Grille & Bar expects significant patronage
after 5PM for the happy hour specials and a moderate dinner crowd.
The restaurant will be divided into three separate areas with private dining booths in
each area. The largest dining area will be in the open air. Although the large dining
room is open air, it will offer privacy booths throughout the large expanse. The other
two smaller areas will be the bar and small dining room. The bar side includes a small
stage to host jazz and blues musicians, and a liquor bar made out of old wood found

on the property. Music will be bumped to all areas of the facility through the state-ofthe-art sound system.
Legal Form of Ownership
Grille & Bar is owned by a partnership that includes Sam Lai, Albert Yap and Howard
How. All three are successful businessmen with backgrounds in food and beverage
operations. Together they comprise an experienced and effective management team.
Profile of the Management team
The management team is comprised of the following:
Sam Lai currently owns a production house business and has had restaurants in the
past. He is a native resident of Damansara Heights and attended nearby HELP
University graduating with a Master in Business Administration specializing in
Marketing. He has over 10 years in entrepreneurship and understands the competitive
environment of restaurants.
Albert Yap is has lived in Damansara Heights for over eight years. He has been
helpful in developing several shopping malls throughout the city and working with
city leaders. Mr. Yap attended a university majoring in Real Estate and Tax. His
property management company is the second largest in Kuala Lumpur.
Howard How is the youngest of the three partners and recently completed his
education at HELP University. His Restaurant and Hotel degree will be beneficial as
he directs the operation an sets the tactical plan. Mr. Lai has worked at a number of
restaurants since he was 16 and most recently spent three semester breaks as an intern
at the admired Club Med in Cherating, Pahang.
In addition to the owners, a General Manager complements the management team for
Grille & Bar with solid experience in nightclub operations. She has successfully
managed several similar operations in the past.
Insurance

Business insurance will be acquired from ACE Insurance Company and cover liability
and general business activities. The partners negotiated with several companies and
chose ACE Insurance.
Market Analysis
Product
Grille & Bar will offer hot and cold dishes of the traditional variety. These will be
moderate portions served in an upbeat, trendy atmosphere. The typical dish will offer
a good-sized entre, side dish, and soup or salad. Quality will be emphasized from the
raw ingredients, to the type/ style of dishes and utensils. Every table will have a full
place setting laid on cloth tablecloths and cotton napkins. Although these will add
some cost to the overall operation, they will reflect the quality image Grille & Bar is
portraying.

Price
Consumers demand value when eating out and Grille & Bar will provide excellent
value for the offering. The generous entrees will be priced between RM7.50 and
RM9.90, with specials ranging from RM19.90 to RM39.90. These prices are
comparable to other restaurants in the vicinity and provide good value for the serving
size.
Beverages will be priced according to market demand and competition.
Soft drinks

RM7.5

Beer

RM13 bottle RM35 draft

Wine

varied among labels

Cocktails

RM38 house

Grille & Bar will use a combination of the market pricing model and mark-up pricing
model. Every meal must satisfy a certain benchmark for profitability. Grille & Bar
will also offer entry-level advertised specials to draw customers in the door. These
offerings will generally be excellent value, however, low cost to produce.

Distribution
All meals will be available at Grille & Bar only location at Jalan Batai, Damansara
Heights. Customers will have ample parking at Jalan Batai open car park. Inside the
restaurant, patrons will wait in either the bar or waiting room. The waiting room will
have replica antique benches and upholstered high back chairs.
Customers will have the option of eating-in the three dining areas or take-out.
Although the entire menu will not be available for take-out, and Grille & Bar will not
be available for take-out, and Grille & Bar will not advertise the take-out option.
Because they will be offering a high quality product, some of the product
characteristics may deteriorate in the time between picking up the meal.
Grille & Bar will use their website as an advertising medium, offering coupons,
information, and upcoming specials.
Promotion/ Advertising
Grille & Bar is planning a soft opening beginning January 15th and a Grand Opening
February 2nd. The soft opening will allow traffic to filter in before the anticipated
grand opening rush. This will allow all the employees enough time to become familiar
with the operation and customer interaction.
The Grand Opening will begin on a Thursday, which will further improve the
employees skills before the major dining nights of Friday and Saturday. The Grand
Opening will be advertised in the local paper and radio and last one month. Once the
newness of the restaurant has subsided, Grille & Bar will engage in an ongoing
advertising campaign targeted at the local vicinity, five-mile radius.

Special promotions will also occur prior to holidays and celebrated events (Mothers
day, Fathers day, etc). Because Grille & Bar has ample seating for 250 individuals, it
will be a destination for large gatherings of families and friends.
Nightly specials will be offered in the bar and weekend live music will be performed.
Local jazz and background music entertainers will provide music in the bar. Grille &

Bar will not be the new release site for up and coming musicians, however, will offer
good listening music in a relaxed atmosphere.
Industry History/ Industry Trends
The restaurant industry will continue to grow due to the growth of the domestic
industry in 2011 and as the economy improved and disposable income increases, these
will propel the industry into another year of real growth.
The major challenges facing the industry are economy, maintaining the business
volume, recruiting/ retaining labor, and competition.
Overall the restaurant industry is experiencing excellent growth and expansion.
Individuals are eating out more and enjoy gathering outside the home.
Target market and Customer Base
The main target market is upper middle class professional in the local vicinity. These
individuals have more disposable income and enjoy a few cocktails while dining. The
average customer will be 24-45 with an average household income of RM42,000.
Many of these individuals will have young families, however, Grille & Bar will not
pursue childrens visitation. It will be a destination place for couples on a night out,
without the children.
The partners estimate that over 250,000 individuals satisfy their immediate target
market and live within five miles of the location. In addition to the immediate target
market, Grille & Bar will have access to 200,000 individuals older than 45 who live
within five miles.
Due to the location, projections for 2011 show a three percent growth in the 25-45-age
category. The area is experiencing excellent growth and expansion of commercial and
multi-residential housing units.
Barriers to Entry
Although it is relatively easy to open a restaurant, Grille & Bar will experience
several barriers to entry such as state license, health department certification, and
numerous inspections by various organizations.

The main barrier to entering the industry is the large capital expenditure for the
building and fixtures. Fortunately this barrier is mitigated by the partners strong
financial foundation and business experience.
Grille & Bar will try to increase the local barriers by offering excellent products at
affordable prices. If customers seek out Grille & Bar, they will visit more frequently
making it more difficult for other establishments.
Intellectual Property
Grille & Bar has applied for federal and state protection from the Malaysia Patent and
Trademark office. The partners completed a search of potential names, and
determined Grille & Bar is available. Because of their franchise goal, the partners
wanted to ensure brand/ name recognition and protection from the start.
Only a few individuals will manage recipes and food preparation secrets. This will
further protect Grille & Bar from exposing their excellent menu items.
Growth Opportunities
Grille & Bar will be modeled after other successful restaurants like Outback, The Ship
and TGIF. With that in mind, the partners would like to make Grille & Bar a franchise
opportunity and manage it as such. This is an excellent growth model, as franchisees
will build the network, at limited risk to the original partners.

Trade Agreements/ Vendor/ Supplier Relationships

The partners have partnered with De-Luxe Food, Casa Vino and Allied Foodservice
Equipment to supply all food and restaurant needs. These two companies offered the
best quality and variety of items when compared to smaller lesser-known companies.
Grille & Bar will use locally owned Starkey Industry Sdn Bhd for the entire kitchen
hardware. Alpha Steel will provide refrigerators, vegetable and manual slicers, food

processor, mixers, slicers, water boilers, convection ovens, pasta boilers, charbroilers,
bar blender and dishwashers for the entire restaurant.
Other interior design and decorating will be provided by Archideco Design. Archideco
is a locally owned and well-respected design firm that has assisted with numerous
commercial projects. The Principal, Jason K L Fong is having 20 years of design
experience in interior design industry including caf and restaurant and retail shops.
He has been involved in numerous prestigious projects while with the Sunway Group.
Exit Strategy
The exit strategy in not well defined, however has two simple outcomes; closures or
franchise expansion. The partners are well aware of the restaurant industries failure
rate and will monitor the financials closely. While knowing the failure rate is one
thing, acting upon the triggers is another. The partners have devised a series of
financial calculations that when triggered will signal to them that the business is
headed in the wrong direction. Because the newlywed phase of a restaurant varies in
timeline, the partners are prepared to close the business before the first anniversary if
necessary to limit financial losses.
The second exit strategy is expansion to franchise. This will be evaluated at the 12month point. When Grille & Bar is exceeding financial projections and the partners
expectations, they plan on pursuing franchise agreements. From the beginning,
standards will be in place and strictly followed. Estimated growth cannot be
determined until a later date.

Company Revenues (projected)

Year
Revenue
Net income

2011

2012

2013

$511,275

$530,400

$549,525

$44,064

$46,032

$62,832

Revenues will be comprised of both food items and drink items with an average
purchase of $10. Grille & Bar believe this is a conservation number and look forward
to higher receipts.
Financial Analysis
Inventory
Start-up Cost Estimates
Budgets
Income Statement
Balance Sheet
Break-even analysis
Financial Ratios
Company Documents