Table of Content

    Do you want to start bbq restaurant business?

    Do you want to start a BBQ business? Well, this business can be immensely profitable provided that you make delicious BBQs and market your business successfully.
    BBQs are loved by millions of people in the United States so the market for this business has undoubtedly a lot of potential. Secondly, this business can be started with any extent of investment. You can even start a small setup and expand it later or if you have sufficient savings you can start a high-class restaurant. In both cases, you have to make a comprehensive plan covering all aspects of your business. You have to plan everything including the tiniest details to make this business successful.
    So, before you move on to start this venture, develop a detailed business plan for it. The business plan will not only help you in startup but it will also help you in taking important decisions for your business over the next years. In case you don’t know how to write a good business plan, we are providing a detailed business plan of a startup ‘Jim’s BBQ’ to help you avoid the trouble of making a plan yourself.

    Executive Summary

    2.1 The Business

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    Jim’s Stop will be a licensed and ensured BBQ restaurant located in Tribeca, a neighborhood in the Manhattan borough of the New York City. We will be strategically located in the most suitable place to start a BBQ business. The business will be solely owned and operated by Jim Pert who is a famous American Chef and has been working at executive positions in various fast food restaurants for the last 20 years.

    2.2 Management

    Jim’s BBQ will be managed by Jim himself and he will be assisted by his younger brother Nick who holds a degree in finance from Harvard University. Initially, Jim will hire a small team comprising of chefs, waiters, assistants, cleaners and drivers for the startup. To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

    2.3 Customers

    Our customers will primarily be the residents living in the Tribeca neighborhood and people working in the commercial and businesses center of the city. We will offer BBQ meat by pound, sandwiches, desserts, sides and drinks to our customers. We will provide dine in, takeaway as well as free home delivery services to our esteemed customers. The community living nearby is very diverse and comprises of teens and adults, single as well as married people, most of which love fast foods. There are also a number of commercial and business centers in the vicinity of our restaurant so we can easily attract the employees working in them.

    2.4 Target of the Company

    Our main goal is to provide healthy, delicious as well as economical BBQs to our customers. Our primary target is to become the best BBQ restaurant in the New York City within next 5 years of our launch and to recover the initial investment within next 2 years of launch. Our secondary target is to achieve the net profit margin of £10k per month by the end of the first year, £15k per month by the end of the second year, and £25k per month by the end of the third year.

    BBQ Restaurant Business Plan - 3 Years Profit Forecast

    Company Summary

    3.1 Company Owner

    Jim is a famous American Chef and has been working at executive positions in various fast food restaurants for the last 20 years. He is famous for creating unique and juicy BBQs which are loved by all and sundry.

    3.2 Why the Business is being started

    The main motive behind Jim starting a barbecue business is his intense passion about BBQs. Jim is known for making unique BBQs by combining recipes from various localities and his unique mixed recipes are the reason behind his fame. By starting this venture, he aims to give everyone a taste of his unique BBQs.

    3.3 How the Business will be started

    Jims’s BBQ will be launched in the Tribeca neighborhood of Manhattan. A 250-square-feet building which was previously being used as a breakfast restaurant has been acquired on lease. Since the building was previously a restaurant, adequate seating arrangements are already present. The company will only acquire 4 grills, 4 smokers, 2 stoves and 2 full-size commercial refrigerators in addition to the usual inventory for a restaurant. The company’s financial experts have forecasted following costs for expenses, assets, investment, and a bank loan for business.
    BBQ Restaurant Business Plan - Startup Cost

    The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by company’s analysts, is given below:

    Start-up Expenses  
    Legal £55,300
    Consultants £0
    Insurance £32,750
    Rent £32,500
    Research and Development £32,750
    Expensed Equipment £32,750
    Signs £1,250
    Start-up Assets £0
    Cash Required £332,500
    Start-up Inventory £32,625
    Other Current Assets £232,500
    Long-term Assets £235,000
    TOTAL ASSETS £121,875
    Total Requirements £245,000
    START-UP FUNDING £273,125
    Start-up Expenses to Fund £11,875
    Start-up Assets to Fund £15,000
    Assets £23,125
    Non-cash Assets from Start-up £18,750
    Cash Requirements from Start-up £0
    Additional Cash Raised £18,750
    Cash Balance on Starting Date £21,875
    Liabilities and Capital £0
    Liabilities £0
    Current Borrowing £0
    Long-term Liabilities £0
    Accounts Payable (Outstanding Bills) £0
    Other Current Liabilities (interest-free) £0
    Capital £0
    Planned Investment £0
    Investor 1 £332,500
    Investor 2 £0
    Other £0
    Additional Investment Requirement £0
    Loss at Start-up (Start-up Expenses) £313,125
    TOTAL CAPITAL £251,875
    Total Funding £255,000

    Services for customers

    It is wiser to plan your services or menu before you think about how to start a BBQ business. You can only plan subsequent things after you know what you will be providing to your customers. Jim’s BBQ will offer following delicious meals to its esteemed customers:

    • Meat by pound: Chopped beef brisket, pork spare ribs, turkey breast, giant beef rib, sausages
    • Sandwiches: Chopped beef brisket, pork spare ribs, turkey breast, giant beef rib
    • Sides: Potato salad, slaw, pinto beans
    • Deserts: Pecan, lemon chess, bourbon banana, key lime
    • Drinks: Bottled water, sodas, juices, iced tea
    • Beers & Wines: Mimosa, blue owl, hops & grain

    Our customers can dine in, takeaway or even get free delivery on their doorstep.

    Marketing Analysis of bbq restaurant business

    The most important component of an effective BBQ business plan is its accurate marketing analysis that’s why Jim acquired the services of marketing experts to help him through this phase. It is only after this stage that good business plan for a restaurant could have been developed. After identifying the local market trends in Manhattan, the marketing experts and analysts also helped him to select the best site to start a barbecue business.
    The success or failure of a startup totally depends upon its marketing strategy which can only be developed on the basis of accurate marketing analysis. There are four main steps to carry out an accurate marketing analysis of a BBQ business which are to identify the current market trends of BBQ restaurants in Manhattan, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of the menu. Marketing analysis is a must-do thing before you even think how to open a BBQ restaurant. It must be considered before developing the BBQ restaurant business plan template.

    5.1 Marketing Segmentation

    As for a general trend, the market demand for BBQ businesses is on the rise. BBQ is one of the most popular American fast foods that’s why the number of BBQ restaurants has been increasing during the last few years. According to a recent report, there has been a staggering 21% increase in the restaurants offering BBQs in the Manhattan just in the last 4 years. As of now, there are thousands of established restaurants which provide high quality and delicious BBQ meals. This increase is credited to the fact that American citizens love BBQs and the second reason is that starting a BBQ restaurant has become very easy. In fact, the small BBQ setups and BBQ stands are selling more BBQs as compared to the established high-class residents. It is due to their greater accessibility and comparatively lower rates. Nevertheless, this industry has a lot of potential and a BBQ business, regardless of its magnitude, can yield immense profit provided that you successfully plan it and target your customers.

    5.2 Marketing Segmentation

    Our target market is the community living nearby at the 10 minutes’ drive from our restaurant. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from £40k to £50k while nearly 10% people have incomes even around £100,000. There are also a lot of working-class people who are extremely tight up with their busy routines and prefer to grab a bite of delicious BBQs while on their way home. Our marketing experts have identified following type of target audience which can become the potential customers of our restaurant.

    BBQ Restaurant Business Plan - Market Segmentation

    The detailed marketing segmentation comprising of the company’s target audience is as follows:

    5.2.1 Working Community:

    The first category includes the workers and employees who work in the businesses or offices located in the vicinity of our restaurant. Most of these workers live singly and depends on restaurants like us for their daily food needs. Secondly, many working-class people have a tight routine and they prefer to eat something as fast as they can without compromising on their busy schedule. That’s why this group will become the biggest consumer of our services. This customer group will drive the most number of sales so our marketing strategy will be specifically built to attract this group towards us.

    5.2.2 Residential Community:

    The second group of our target customers will be the community residing in the vicinity of our restaurant. BBQ is one of the favorite foods of American teens so we hope to have a lot of sales due to them. Not only teens, adults and middle-aged people also love BBQ. To attract this target group towards us, we will also offer various promotional packages.

    5.2.3 Passers-by:

    The third category includes those people who do not live or work near our restaurant but have come to the area for any business purpose or commercial activity. We also hope to attract these passers-by with our economical and delicious BBQ.
    The detailed market analysis of our potential customers is given in the following table:

    Market Analysis
    Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR
    Working Community 45% 11,433 13,344 16,553 18,745 20,545 13.43%
    Residential Community 38% 22,334 32,344 43,665 52,544 66,432 10.00%
    Passers-By 17% 8,322 9,455 10,655 12,867 14,433 15.32%
    Total 100% 42,089 55,143 70,873 84,156 101,410 9.54%

    5.3 Business Target

    Our business targets are as follows:

    • To become the best BBQ restaurant in Manhattan within next 5 years of our launch
    • To recover the initial investment in the form of earned profits within next 2 years of launch
    • To achieve the net profit margin of £10k per month by the end of the first year, £15k per month by the end of the second year, and £25k per month by the end of the third year

    5.4 Product Pricing

    Product pricing is one of the most important factors in deciding the sales and marketing strategy. Selecting the price for products is a difficult task because startups have to attract customers while yield profit at the same time. These two things cannot be achieved at the same time and the only way out is to select a compromised trade-off or balance between the two. After considering the market demands, we have priced all our products in the similar ranges as of our competitors. Our menu is priced as follows:

    • Meat by pound: £16.99 per pound
    • Sandwiches: £6.99 per single meat and £9.99 per double meat sandwich
    • Sides: £1.99 per single serving, £4.99 per medium serving and £8.99 per large serving
    • Deserts: £2.99 per single serving, £5.99 per medium serving and £9.99 per large serving
    • Drinks: £1.99 per serving
    • Beers & Wines: £3.99 per serving


    Sales strategy is also an important component of a BBQ restaurant business plan and hence it must be developed with great care and attention must be paid to every detail.

    6.1 Competitive Analysis:

    We have a really tough competition because BBQs restaurants are nearly everywhere in Manhattan but none of our competitors is offering as much high quality and delicious BBQs as ours. This is our main competitive advantage over other established businesses. Jim is known for making unique BBQs by combining recipes from various localities and his unique mixed recipes will give us an unparalleled edge over other BBQ restaurants.

    6.2 Sales Strategy

    After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.

    • We will ensure at least a 20% increase in website traffic each month and will ensure at least an 80% conversion rate, i.e. to turn 80% of our website visitors into our customers.
    • We will get featured in the local news or on a certain website by a popular blogger to increase our brand awareness in people.
    • We will advertise our restaurant in food magazines, newspapers, TV stations, and social media.
    • We will offer a 20% discount on all meals for the first three months of our launch.

    6.3 Sales Monthly:

    Our monthly sales, as forecasted by the company’s financial experts, are as follows:

    BBQ Restaurant Business Plan - Sales Monthly

    6.4 Sales Yearly:

    Our yearly sales, as forecasted by the company’s financial experts, are as follows:

    BBQ Restaurant Business Plan - Sales Yearly

    6.5 Sales Forecast

    Considering the quality of our food and our exceptional marketing strategy, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

    BBQ Restaurant Business Plan - Unit Sales

    The detailed information about sales forecast, total unit sales, total sales is given in the following table:

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Meat by pound 1,887,030 2,680,320 2,588,240
    Sandwiches 802,370 815,430 823,540
    Sides 539,320 770230 1,002,310
    Desserts 265,450 322,390 393,320
    Drinks 143,530 125,030 176,240
    Bears & Wines 134,240 394,340 842,230
    TOTAL UNIT SALES 3,771,940 5,107,740 5,825,880
    Unit Prices Year 1 Year 2 Year 3
    Meat by pound £140.00 £150.00 £160.00
    Sandwiches £600.00 £800.00 £1,000.00
    Sides £700.00 £800.00 £900.00
    Desserts £650.00 £750.00 £850.00
    Drinks £140.00 £120.00 £100.00
    Bears & Wines £150.00 £1,300.00 £1,450.00
    Meat by pound £2,149,800 £2,784,000 £3,383,200
    Sandwiches £120,050 £194,500 £268,500
    Sides £50,110 £71,600 £93,000
    Desserts £139,350 £194,600 £249,850
    Drinks £62,350 £72,300 £82,250
    Bears & Wines £229,500 £365,500 £501,500
    Direct Unit Costs Year 1 Year 2 Year 3
    Meat by pound £0.70 £0.80 £0.90
    Sandwiches £0.40 £0.45 £0.50
    Sides £0.30 £0.35 £0.40
    Desserts £3.00 £3.50 £4.00
    Drinks £0.70 £0.75 £0.80
    Bears & Wines £3.00 £3.50 £4.00
    Direct Cost of Sales
    Meat by pound £989,300 £1,839,000 £2,679,700
    Sandwiches £66,600 £119,900 £173,200
    Sides £17,900 £35,000 £52,100
    Desserts £19,400 £67,600 £115,800
    Drinks £27,700 £69,200 £110,700
    Bears & Wines £64,200 £224,700 £385,200
    Subtotal Direct Cost of Sales £1,294,100 £1,699,400 £2,104,700

    Personnel plan

    The success of a company heavily depends on its staff, the number and type of which should be determined in the initial stages. That’s why a detailed personnel plan is needed before starting a BBQ business. The personnel plan of Jim’s BBQ is as follows:

    7.1 Company Staff

    Jim will act as the Head Chef of the restaurant. The company will initially hire following people:

    • 1 Manager to manage the overall operations of the restaurant
    • 1 Cashier to receive cash from the people
    • 2 Accountants to maintain financial records
    • 4 Sales Executives responsible for marketing and advertising the restaurant
    • 15 Chefs for preparing meals
    • 10 Waiters to serve the customers
    • 8 Cleaners to clean dishes and other facilities at the restaurant
    • 7 Delivery Drivers to deliver BBQs to the local residents

    7.2 Average Salary of Employees

    The following table shows the forecasted data about employees and their salaries for next three years.

     Personnel Plan      
    Year 1 Year 2 Year 3
    Manager £85,000 £95,000 £105,000
    Cashier £66,000 £73,000 £80,000
    Accountants £45,000 £52,000 £59,000
    Sales Executives £145,000 £152,000 £159,000
    Chefs £550,000 £650,000 £750,000
    Waiters £410,000 £440,000 £480,000
    Cleaners £60,000 £63,300 £70,000
    Drivers £70,000 £73,300 £80,000
    Total Salaries £1,280,000 £1,430,600 £1,598,000

    Financial Plan

    The final thing to do before you think about how to start a barbecue business is to develop a comprehensive financial plan which will cover the detailed costs of startup.

    8.1 Important Assumptions

    The company’s financial projections are forecasted on the basis of following assumptions.

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 11.00% 12.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 26.42% 27.76% 28.12%
    Other 0 0 0

    8.2 Brake-even Analysis

    The following graph shows the company’s Brake-even Analysis.

    BBQ Restaurant Business Plan - Brake-even Analysis

    The following table shows the company’s Brake-even Analysis.

     Brake-Even Analysis  
    Monthly Units Break-even 5530
    Monthly Revenue Break-even £159,740
    Average Per-Unit Revenue £260.87
    Average Per-Unit Variable Cost £0.89
    Estimated Monthly Fixed Cost £196,410

    8.3 Projected Profit and Loss

    The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales £309,069 £385,934 £462,799
    Direct Cost of Sales £15,100 £19,153 £23,206
    Other £0 £0 £0
    TOTAL COST OF SALES £15,100 £19,153 £23,206
    Gross Margin £293,969 £366,781 £439,593
    Gross Margin % 94.98% 94.72% 94.46%
    Payroll £138,036 £162,898 £187,760
    Sales and Marketing and Other Expenses £1,850 £2,000 £2,150
    Depreciation £2,070 £2,070 £2,070
    Leased Equipment £0 £0 £0
    Utilities £4,000 £4,250 £4,500
    Insurance £1,800 £1,800 £1,800
    Rent £6,500 £7,000 £7,500
    Payroll Taxes £34,510 £40,726 £46,942
    Other £0 £0 £0
    Total Operating Expenses £188,766 £220,744 £252,722
    Profit Before Interest and Taxes £105,205 £146,040 £186,875
    EBITDA £107,275 £148,110 £188,945
    Interest Expense £0 £0 £0
    Taxes Incurred £26,838 £37,315 £47,792
    Net Profit £78,367 £108,725 £139,083
    Net Profit/Sales 30.00% 39.32% 48.64%

    The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

    8.3.1 Profit Monthly

    BBQ Restaurant Business Plan - PROFIT MONTHLY

    8.3.2 Profit Yearly

    BBQ Restaurant Business Plan - PROFIT YEARLY

    8.3.3 Gross Margin Monthly

    BBQ Restaurant Business Plan - GROSS MARGIN MONTHLY

    8.3.4 Gross Margin Yearly

    The following table shows detailed information about profit and loss, and total cost of sales.

    BBQ Restaurant Business Plan - GROSS MARGIN YEARLY

    8.4 Projected Cash Flow

    The following column diagram shows the projected cash flow.

    BBQ Restaurant Business Plan - Projected Cash Flow Diagram

    The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales £40,124 £45,046 £50,068
    Cash from Receivables £7,023 £8,610 £9,297
    SUBTOTAL CASH FROM OPERATIONS £47,143 £53,651 £59,359
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received £0 £0 £0
    New Current Borrowing £0 £0 £0
    New Other Liabilities (interest-free) £0 £0 £0
    New Long-term Liabilities £0 £0 £0
    Sales of Other Current Assets £0 £0 £0
    Sales of Long-term Assets £0 £0 £0
    New Investment Received £0 £0 £0
    SUBTOTAL CASH RECEIVED £47,143 £53,651 £55,359
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending £21,647 £24,204 £26,951
    Bill Payments £13,539 £15,385 £170,631
    SUBTOTAL SPENT ON OPERATIONS £35,296 £39,549 £43,582
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out £0 £0 £0
    Principal Repayment of Current Borrowing £0 £0 £0
    Other Liabilities Principal Repayment £0 £0 £0
    Long-term Liabilities Principal Repayment £0 £0 £0
    Purchase Other Current Assets £0 £0 £0
    Purchase Long-term Assets £0 £0 £0
    Dividends £0 £0 £0
    SUBTOTAL CASH SPENT £35,296 £35,489 £43,882
    Net Cash Flow £11,551 £13,167 £15,683
    Cash Balance £21,823 £22,381 £28,239

    8.5 Projected Balance Sheet

    The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash £184,666 £218,525 £252,384
    Accounts Receivable £12,613 £14,493 £16,373
    Inventory £2,980 £3,450 £3,920
    Other Current Assets £1,000 £1,000 £1,000
    TOTAL CURRENT ASSETS £201,259 £237,468 £273,677
    Long-term Assets
    Long-term Assets £10,000 £10,000 £10,000
    Accumulated Depreciation £12,420 £14,490 £16,560
    TOTAL LONG-TERM ASSETS £980 £610 £240
    TOTAL ASSETS £198,839 £232,978 £267,117
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable £9,482 £10,792 £12,102
    Current Borrowing £0 £0 £0
    Other Current Liabilities £0 £0 £0
    SUBTOTAL CURRENT LIABILITIES £9,482 £10,792 £12,102
    Long-term Liabilities £0 £0 £0
    TOTAL LIABILITIES £9,482 £10,792 £12,102
    Paid-in Capital £30,000 £30,000 £30,000
    Retained Earnings £48,651 £72,636 £96,621
    Earnings £100,709 £119,555 £138,401
    TOTAL CAPITAL £189,360 £222,190 £255,020
    TOTAL LIABILITIES AND CAPITAL £198,839 £232,978 £267,117
    Net Worth £182,060 £226,240 £270,420

    8.6 Business Ratios

    The following table shows data about business ratios, ratio analysis, total assets, net worth.

     Ratio Analysis        
    Year 1 Year 2 Year 3 Industry Profile
    Sales Growth 4.35% 30.82% 63.29% 4.00%
    Percent of Total Assets
    Accounts Receivable 5.61% 4.71% 3.81% 9.70%
    Inventory 1.85% 1.82% 1.79% 9.80%
    Other Current Assets 1.75% 2.02% 2.29% 27.40%
    Total Current Assets 138.53% 150.99% 163.45% 54.60%
    Long-term Assets -9.47% -21.01% -32.55% 58.40%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.68% 3.04% 2.76% 27.30%
    Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
    Total Liabilities 4.68% 3.04% 2.76% 54.10%
    NET WORTH 99.32% 101.04% 102.76% 44.90%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.18% 93.85% 93.52% 0.00%
    Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
    Advertising Expenses 2.06% 1.11% 0.28% 1.40%
    Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
    Main Ratios
    Current 25.86 29.39 32.92 1.63
    Quick 25.4 28.88 32.36 0.84
    Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
    Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
    Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 19.20% 21.16% 23.12% N.A.
    Return on Equity 47.79% 50.53% 53.27% N.A.
    Activity Ratios
    Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
    Collection Days 92 99 106 N.A.
    Inventory Turnover 19.7 22.55 25.4 N.A.
    Accounts Payable Turnover 14.17 14.67 15.17 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 1.84 1.55 1.26 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.02 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital £120,943 £140,664 £160,385 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.45 0.48 0.51 N.A.
    Current Debt/Total Assets 4% 3% 2% N.A.
    Acid Test 23.66 27.01 30.36 N.A.
    Sales/Net Worth 1.68 1.29 0.9 N.A.
    Dividend Payout 0 0 0 N.A.

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