Table of Content

    Do you want to start breakfast restaurant business?

    Are you thinking about starting a breakfast restaurant? Well, it is undoubtedly one of the most profitable startups, yielding the greatest rate of return as compared to other businesses.

    Breakfast is the most important meal of the day and a lot of people pay emphasis on having a great breakfast. Many of them don’t mind to spend heavy cash on a routine basis, provided they get delicious and healthy food. This business is not affected by any season and yields equal profit throughout the year. The biggest advantage in starting this business is that it gives us the maximum rate of return on relatively small investments as compared to other businesses.

    But this business is very difficult to plan in the initial stages. From the planning of menu to the procurement of inventory, you have to think through nearly everything. Food-related businesses have got more constraints as compared to other businesses, that is why before starting it, you need to have a bed and breakfast business plan covering even the tiniest bit of details.

    To help you avoid all the trouble of thinking and making a plan yourself, we are providing a detailed bed and breakfast business plan of a startup ‘The Food Court’.

    Executive Summary

    2.1 The Business

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    The Food Court will be a registered American breakfast restaurant business based in the central business district of Manhattan borough of the New York City. Manhattan is the most densely populated borough of the city and we will be strategically located in the main commercial zone of this populated borough. We will be surrounded by a number of commercial and business centers of the city.

    The business will be owned and operated by John Vent who is a renowned chef of the United States and has won several chef awards during the course of his service at various food chains.

    2.2 Management

    The Food Court will be primarily a breakfast place aimed to provide delicious and healthy breakfast to its customers. It will be managed by Mr. Vent and his son who has recently graduated from the Harvard University, after doing his MBA.

    2.3 Customers

    The restaurant will provide both dine in and takeaway breakfast facility to the commercial and residential zones of Manhattan borough, New York.

    2.4 Target of the Company

    Mr. Vent’s target is to become the best breakfast business of the New York City by introducing traditional foods to the diverse US culture.

    Bed And Breakfast Business Plan - 3 Years Profit Forecast

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    Company Summary

    3.1 Company Owner

    Mr. Vent is a famous chef of the United States, best known for his traditional dishes which are loved and cherished by everyone. He has been serving the food industry for more than 30 years and has also made appearances in various cooking shows. The two times ‘US-Chef of the Year’ award winner is now all set to renew the traditional breakfasts by his own venture.

    3.2 Why the Business is being started

    Throughout his career, Mr. Vent has strived for introducing traditional foods to the fast-food loving younger generation. He is strictly against fast-food because of the nutritional deficiency caused by them and the artificial materials used in them. He has also raised this concern in various talk shows to several media outlets. Finally, he has made his mind for opening a bed and breakfast business plan for fulfilling his dream of the revival of traditional nutritious foods in America.

    3.3 How the Business will be started

    Mr. Vent, with the help of financial experts, has forecasted following costs for expenses, assets, investment, and loans for the Start-up.

    Breakfast 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 $755,300
    Consultants $0
    Insurance $632,750
    Rent $232,500
    Research and Development $432,750
    Expensed Equipment $432,750
    Signs $31,250
    Start-up Assets $0
    Cash Required $3,232,500
    Start-up Inventory $532,625
    Other Current Assets $2,232,500
    Long-term Assets $1,235,000
    TOTAL ASSETS $3,121,875
    Total Requirements $3,245,000
    START-UP FUNDING $2,733,125
    Start-up Expenses to Fund $121,875
    Start-up Assets to Fund $195,000
    Assets $203,125
    Non-cash Assets from Start-up $118,750
    Cash Requirements from Start-up $0
    Additional Cash Raised $1,318,750
    Cash Balance on Starting Date $121,875
    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 $3,132,500
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $3,413,125
    TOTAL CAPITAL $2,521,875
    Total Funding $2,655,000
    Any questions? Get in Touch!

    Services for customers

    The Food Court will provide all sort of traditional foods, American as well as other regions’, to its esteemed customers. Just like other bed and breakfast business plan we will also present both options of dine in and takeaway to our customers. Each one of our offering will be prepared by maintaining strict health and quality measures.

    We will offer the traditional American breakfast comprising of beans, bacons, sausages, eggs, toasts with butter, marmalade, or jelly along with tea, coffee or drinks. We will also offer traditional food packages of five other countries:

    • Chinese breakfast comprising of rice in vegetable soup, dumplings, fried sponge cake, porridge and steamed creamy custard bun
    • French breakfast comprising of tea, juice, coffee, hot chocolate, with bread, butter and pastries
    • Turkish breakfast comprising of cheese, jam, bread, olives, honey, omelette, and fruits
    • English breakfast comprising of eggs, fried bread, baked beans, bacon, sausages, and mushrooms
    • Italian breakfast comprising of caffè latte (hot coffee with milk), fette biscottate (cookie-like rusk hard bread), coffee with bread and rolls, butter, jam and cookies

    Marketing Analysis of breakfast restaurant business


    The most important thing to do before you open a breakfast restaurant is to carry out its accurate marketing analysis. It helps to decide the company’s strategies over the next years. It must be incorporated in the bed and breakfast business plan and all subsequent things must be plan according to it. Considering its importance, Mr. Vent obtained the services of marketing experts to help him develop a bed and breakfast business plan taking in account the current marketing demands.

    As per current market, breakfast industry is seen with a tremendous increase over the last years and is expected to increase steadily in the future. According to the NPD Group, the open breakfast places have increased by about 17% in the last 6 years. Moreover, this industry is not affected by any season or time of the year so we can say that its market demand is quite high.

    The success or failure a startup totally depends upon how they market themselves to target their specific customer groups. A successful marketing strategy can only be developed after knowing the target audience and potential customers. Mr. Vent has carried out an extensive research with marketing experts to know their target customers and focus their marketing strategy towards them before they open a breakfast restaurant.

    5.1 Marketing Segmentation

    The marketing experts from The Food Court have identified following type of target audience which can become the potential customers of the company.

    bed and breakfast business plan - Market Segmentation

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

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    5.1.1 General Traffic:

    Our customers are very diverse and it is very difficult to categorize them. General traffic refers to those customers who happen to be near our restaurant and decides to have their breakfast here. This category includes all those people who have come to our area for their own tasks and activities. As we discussed already that we are situated in the main commercial district of Manhattan which is visited by several thousands of people daily. This general traffic is very diverse and comprises of people from different nationalities, hence we will offer the traditional foods of their regions to make them feel like home.

    5.1.2 Companies and Businesses:

    This category includes all employees working in the various office, companies and businesses situated near us. Most of these workers are single and usually rely on restaurants like us for their daily breakfast. We will be the perfect choice for them for having a variety of breakfasts of several regions at their disposal. Some of these people, which are not single, are very busy in their routines and most of the time they don’t even have time to take breakfast in their homes. We will prepare special packages for these busy people which can be easily consumed while walking. The employees of these companies and businesses will eat our breakfasts on a daily basis.

    5.1.3 Local Residents:

    Although we are situated in a commercial zone yet the resident zone is also not too far. We also aim to target the local residents residing in nearby areas. We are sure that once they have tasted our traditional offerings, they will turn into our regular customers.

    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
    General Traffic 38% 11,433 13,344 16,553 18,745 20,545 13.43%
    Companies and Businesses 44% 22,334 32,344 43,665 52,544 66,432 10.00%
    Local Residents 18% 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%

    5.2 Business Target

    Our target is to become the best breakfast restaurant of New York within next 5 years of launch. We also aim to recover our initial capital within 3 years of our launch and grow our sales by 20% each year. At our restaurant, we will also provide a top-notch customer service. Our every employee and waiter will treat our customers with utmost respect so as to build a long-lasting relationship with them.

    5.3 Product Pricing

    Product pricing is the most important factor affecting the sales of a bed and breakfast business. People are really picky about menu prices while selecting a place to eat. In order to revive the traditional foods and to make sure that a lot of people will be attracted towards us we have priced our basic American menu in the same range as of our competitors. But the traditional packages of other countries are slightly costlier because they require a lot of effort and imported materials.


    After carrying out an accurate market analysis, Mr. Vent created an exceptional strategy for business for targeting the identified potential customers. The sales strategy developed by him with the help of finance experts, is as follows:

    6.1 Competitive Analysis:

    The Food Court will have a tough competition ahead because there are thousands of already established breakfast restaurants in Manhattan so the average cost of breakfast will be kept nearly the same as of other similar restaurants. Moreover, people are always hesitant to try a new restaurant and are more willing to dine in their usual trusted restaurants. That’s why something innovative and extraordinary is needed to stand out in this challenging environment.

    6.2 Sales Strategy

    Mr. Vent, with the help of company experts, has developed an ingenious strategy to advertise his new venture and to make sure that everyone gets a taste of what he has to offer. Firstly, we will offer free breakfasts for the first three days of our launch. We will also send our breakfast packages to the various companies, offices and bed and breakfast business plan near us, so that they may also get to know the taste of our unique and delicious foods. We will offer free-delivery services to encourage sales for local residents businesses. We will advertise our restaurant and menu on social media and will also allow users to order their food or reserve their table by means of online channels.

    6.3 Sales Forecast

    We believe that if people try our delicious and healthy traditional foods, they will then eat them for the rest of their lives. That’s why we have forecasted our sales pattern to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on yearly basis which are summarized in the column charts.

    bed and breakfast 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
    American Traditional Breakfast Package 187,030 260,320 258,240
    French Traditional Breakfast Package 802,370 815,430 823,540
    Chinese Traditional Breakfast Package 539,320 770230 1,002,310
    Turkish Traditional Breakfast Package 265,450 322,390 393,320
    English Traditional Breakfast Package 143,530 125,030 176,240
    Italian Traditional Breakfast Package 134,240 394,340 842,230
    TOTAL UNIT SALES 2,071,940 2,687,740 3,495,880
    Unit Prices Year 1 Year 2 Year 3
    American Traditional Breakfast Package $140.00 $150.00 $160.00
    French Traditional Breakfast Package $600.00 $800.00 $1,000.00
    Chinese Traditional Breakfast Package $700.00 $800.00 $900.00
    Turkish Traditional Breakfast Package $650.00 $750.00 $850.00
    English Traditional Breakfast Package $140.00 $120.00 $100.00
    Italian Traditional Breakfast Package $150.00 $1,300.00 $1,450.00
    American Traditional Breakfast Package $214,800 $274,000 $333,200
    French Traditional Breakfast Package $120,050 $194,500 $268,500
    Chinese Traditional Breakfast Package $50,110 $71,600 $93,000
    Turkish Traditional Breakfast Package $139,350 $194,600 $249,850
    English Traditional Breakfast Package $62,350 $72,300 $82,250
    Italian Traditional Breakfast Package $229,500 $365,500 $501,500
    Direct Unit Costs Year 1 Year 2 Year 3
    American Traditional Breakfast Package $0.70 $0.80 $0.90
    French Traditional Breakfast Package $0.40 $0.45 $0.50
    Chinese Traditional Breakfast Package $0.30 $0.35 $0.40
    Turkish Traditional Breakfast Package $3.00 $3.50 $4.00
    English Traditional Breakfast Package $0.70 $0.75 $0.80
    Italian Traditional Breakfast Package $3.00 $3.50 $4.00
    Direct Cost of Sales
    American Traditional Breakfast Package $98,300 $183,000 $267,700
    French Traditional Breakfast Package $66,600 $119,900 $173,200
    Chinese Traditional Breakfast Package $17,900 $35,000 $52,100
    Turkish Traditional Breakfast Package $19,400 $67,600 $115,800
    English Traditional Breakfast Package $27,700 $69,200 $110,700
    Italian Traditional Breakfast Package $64,200 $224,700 $385,200
    Subtotal Direct Cost of Sales $294,100 $699,400 $1,104,700
    Any questions? Get in Touch

    Personnel plan

    Along with providing dine in facility, The Food Court will be a restaurant that delivers breakfast to its customers as well. That’s why it will need a lot of staff for its proper operation. The company experts have developed the following plan for the staff needed for the company along with their average salaries.

    7.1 Company Staff

    Mr. Vent will act as the General Manager as well 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 Administrators / Accountants to maintain financial records
    • 4 Sales and Marketing Executives responsible for marketing and advertising of the restaurant
    • 10 Chefs for making the breakfasts
    • 20 Waiters to serve the customers
    • 8 Cleaners to clean the dishes and other facilities at the restaurant
    • 10 Drivers to deliver the breakfasts to the local residents, companies and businesses

    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.

    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
    Administrators / Accountants $45,000 $52,000 $59,000
    Sales and Marketing 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 Food Court will be one of the many bed and breakfast business plan in Manhattan. The bed and breakfast business plan will be solely financed by Mr. Vent and no equity funding or business plan bank loan will be required unless it expands faster than forecasted.

    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.

    bed and breakfast 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 Losss

    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%

    8.3.1 Profit Monthly

    bed and breakfast business plan - PROFIT MONTHLY

    8.3.2 Profit Yearly

    bed and breakfast business plan - PROFIT YEARLY

    8.3.3 Gross Margin Monthly

    bed and breakfast 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.

    bed and breakfast business plan - GROSS MARGIN YEARLY

    8.4 Projected Cash Flow

    The following column diagram shows the projected cash flow.

    bed and breakfast 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
    Any questions? Get in Touch!

    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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