29047941 secret recipe business plan

55
ABDM 5234 Entrepreneurship Skills KOLEJ TUNKU ABDUL RAHMAN ABDM 5234 ENTREPRENEURSHIP SKILLS No. Student Name Registration Number 1 Chan Chi Yee 08WBA12624 2 Lian Ye Chen 08WBA12418 3 Lim Swee Ling 08WBA10687 4 Ng Kim Toh 08WBA11482 5 Tee Yang Wei 08WBA12303 Academic Year: 2009/10 Course/Year: Advanced Diploma in Business Studies (Accounting)/ 2AAC Tutorial Class: Group 7 Lecturer: MR. LIM CHIN HOCK Tutor: MR. JAMES TEO Date of Submission: 10 AUGUST 2009 COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Upload: mohd-firdaus

Post on 08-Mar-2015

117 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

KOLEJ TUNKU ABDUL RAHMAN

ABDM 5234 ENTREPRENEURSHIP SKILLS

No. Student Name Registration Number

1 Chan Chi Yee 08WBA12624

2 Lian Ye Chen 08WBA12418

3 Lim Swee Ling 08WBA10687

4 Ng Kim Toh 08WBA11482

5 Tee Yang Wei 08WBA12303

Academic Year: 2009/10

Course/Year: Advanced Diploma in Business Studies (Accounting)/ 2AAC

Tutorial Class: Group 7

Lecturer: MR. LIM CHIN HOCK

Tutor: MR. JAMES TEO

Date of Submission: 10 AUGUST 2009

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 2: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

Contents

Page

Executive Summary

1

Company Description

2

Franchisor Description

2-3

Objectives and Missions

4-5

Industry and Market Analysis

6-9

Marketing Plan

10-15

Management Structure

16-17

Operational Plan

18-21

Implementation Plan

22-27

Financial Plan

28

Critical Risk Factors

29

Conclusion

30

Appendix

31-40

Bibliographies

41-42

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 3: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

1

Executive Summary

The purpose of this business plan is to secure a long term funding to open a Secret Recipe Café

franchise in Perak. The 5 owners in company are investing Rm 30,000 each person and total up

to Rm 150,000 in total. The long term loan we are seeking is in the amount of Rm 300,000, and

if approved it will be amortized to 10 years.

We will be forming a private limited company, Infinity Private Limited Company to get the

franchisee license from Secret Recipe Cakes & Café Sdn Bhd and open our franchise shop as the

first shop in Perak state. Our café will be strategically located at Unit 829, Jalan Batu Karang,

Taman Bandar Baru Kampar, 31900, Kampar, Perak it is refer as “new town’ in Kampar District.

Secret Recipe Café is a lifestyle concept café chain that features a modern and metropolitan

setting that has more than 150 outlets throughout Malaysia and Asia. It is one of the fastest

growing café chain in Asia. Our mission is to give the best satisfaction to our valued customer.

Secret Recipe café offers a wide choice of more than 40 different type of cake and fusion food. It

is one of the best place to dine in with friends and family.

As in our industry analysis report, the trend is moving toward dining out from home nowadays.

People tend to enjoy life and more concern about the quality of life, thus they are more likely to

dine in more classy and trendy café and not just have their meals at restaurant which does not

serve good quality food. The business we are going into is visible and viable as we offer best

quality food and best service at a reasonable price.

Despite the competitiveness from our competitor, with our promoting strategy and the brand

name of Secret Recipe, we are positive to attain the market share we estimated. Our management

team was build with 5 shareholders with qualification and knowledge in Accounting.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 4: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

2

Company Description

Infinity Private Limited is formed through a partnership of 5 fresh graduates from Tunku Abdul

Rahman College. We are planning to get a franchisee license from Secret Recipe Cakes & Café

Sdn Bhd to setup a Secret Recipe franchise lifestyle café at Unit 829, Jalan Batu Karang, Taman

Bandar Baru Kampar, 31900, Kampar,Perak. Our café will be a single unit, medium-sized single

story café serving large variety of tasty cakes and a fusion of tasty foods

Company Ownership

5 partners will jointly hold the company at 20% shares each. Profits are to be distributed equally

among the 5 partners.

Franchisor’s Description

Secret Recipe is a lifestyle café chain established since year 1997 by Yang Bahagia Dato’ Steven

Sim. He had successfully transformed a small business into a market leader within a short period

of time. Secret Recipe has established a firm presence in Asia, including Malaysia, Singapore,

Philippines, Indonesia, Thailand and Pakistan. A large variety of cakes and fusion of foods are

served under the brand name of Secret Recipe.

The company has registered double digit growth for the past 5 years. In a period of seven years,

Secret Recipe has expanded by over 100 cafes throughout the region. Defying the statistics of an

economic crisis, Secret Recipe continues to register annual growth of 30% for the past three

years, while profits saw a 300% increase in year 2002.

Secret Recipe has won numerous awards across the region for its authentic food recipes and fine

quality cakes including:

• “Best Cheesecake Award”

• “Most Original Chocolate Award”

• “Best Lamb Stew Award”

• “Malaysia’s Best Local Restaurant Chain”

• “Indonesian’s Best Restaurant Award”

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 5: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

3

• “Singapore’s Excellent Food Award”

• “Best Brand Food & Beverage Café – The Brand Laureate Asia Pacific”

• “Best Restaurant Award – Philippines Talter”

• “Best Casual Dining Restaurant of the Year – Hospitality Asia Platinum Awards”

Secret Recipe offers customers a warm and friendly ambience in a trend setting environment. In

line with Secret Recipe’s lifestyle café concept, the cafe features the theme of fresh and

simplicity chic interior.

The interior also presents an interlude of vibrant splashes of dramatic colours with plush sofas

and arty seats that liven up the ambience and adding on to the cosmopolitan characteristics of the

cafe.

Patrons can look forward to a pleasant dining experience in a modern in-trend set up. The café

concept certainly provides a conducive location for birthday and celebration parties, private

functions or business lunch functions.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 6: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

4

Vision

Our vision is to ride on the success of Secret Recipe brand and engrave a good brand impression

in the hearts of Kampar population. We strive to adhere to strict self regulation and control on

the food and service standards and quality that we provide to customers.

Mission Statement

At Infinity Private Limited, we believe that our accomplishment is driven by our philosophy of

practicing quality and high standards is the most important brand value for Secret Recipe. We

strive to provide the best satisfaction to our valued customers.

We will continue to provide friendly, personalized service beyond customer’s expectation and

serve premium quality products. We adhere strictly to Secret Recipe’s core values:

QUALITY – is everything we do. Quality is more than a word we use to describe our food and

service. It is a philosophy that everything we do. It is always the result of high standards, sincere

effort and skillful execution. Our commitment to quality distinguishes us apart from our

competitors.

DEDICATION- we are dedicated to maximize the level of performance and productivity in all

areas of or business. To drive success of our company, we must set aggressive goals, focus on

results and an obligation to earn a profit in order to remain in the business and growth. We must

not jeopardize our future for short-term gain. We will balance our need for current earnings with

our desire for consistent long-term profitability.

CONCEPT – a differentiated and proven concept with broad consumer appeal. This unique

positioning and strong brand image remain part of our strongest competitive advantage.

SERVICE – we believe quality, friendly and personalized services sets us apart from our

competitors. It is an effort we put in building positive customer relationship, transcend ingenuity,

hard work and passion for service excellence.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 7: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

5

RESULT ORIENTED – managing performance within the company and through customer

feedback is very important to gauge the growth of the company. We continuously measure our

performance and set targets by benchmarking to stay competitive and to move ahead for growth.

Objectives

Infinity Private Limited’s main objective is to achieve a break-even point within the first year of

commencing operating of business. During the first year period, marketing plan will be

implemented to tap into Kampar’s market share and achieve a 10% market penetration.

For the following years, we will continue to achieve positive percentage growth that can help our

café to grow steadily and remain dominant in the market segment that we are strong in.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 8: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

6

Industry Background

Statistics Malaysia shows that the Gross Domestic Product for the year 2008 has an average

growth of 4.73% for the whole year. However, it is at a 6.2% contraction for the first quarter of

year 2009. Consumer Price Index shows a 7.2% increase in price of foods for the period of

January to June 2009 as compared to year 2008.

Despite the contraction of economy nationwide, our researches lead us to a different opinion on

lifestyle trends in Malaysia. Consumers are more than willing to dine outside due to lack of time

to cook at home as a result of doing overtimes in work. Purchasing power for outside food has

greatly increase over the years because people find that the time is much wiser to be spend on

doing more work to get increases in wages.

Another trend that we see is a growing demand for better dining environment among family

households. Family households demand more from eateries, including good quality foods,

services and dining environment.

As one of the fastest growing franchise in the food service industry, we are right on track to tap

into the market in Kampar and woe customers to enjoy a good lifestyle dining experience at

Secret Recipe.

Market Analysis

Analysis of Business Environment

Kampar district of 920sq km have a growing population of 93,000 residents to date and a yearly

revenue of RM 12million.Our targeted market are the “new town” in Kampar district, Bandar

Baru Kampar where it had rapidly developed over the years.. More than 5,000 houses and shops

were build in this town and hub of education such as major university and college were set up

here. Furthermore, the biggest hotel in Kampar is already in operation here. It would attract

many tourists as it is located in center of many attractions such as Gua Tempurung, Batu

Berangkai Waterfall and white water rafting. Our market consists of students and lecturers from

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 9: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

7

Tunku Abdul Rahman University and Tunku Abdul Rahman College, white collar workers,

residents and also tourists.

Market size

In Bandar Baru Kampar there will be more than 18,000 residents residing that town. Many of

these household are from middle income family earning RM2,000-3,000 with high purchasing

power. The hub of education also draws a population of more than 9,000 students’ age between

18-24 with high purchasing power and going after trendy and classy lifestyle. The biggest hotel

in Kampar which located just 1 km from our shop, The Grand Kampar Hotel attracts more than

3,000 tourists annually because of it strategic location. Lastly, we targeted the1,200 white collar

worker who works in the town to consume in our café.

Should we be able to attract 10% of the population to order a slice of cake per month and10% of

the population to order a cake per year, we are able to sell 6,240 cakes year the year 2009 to that

market alone. On top of that, should there be a meal being bought for 2 slices of cake sold, we

are able to sell 37,440 meals for the year 2009.

Resident

Students and Lecturers

Tourists

White collar worker

Demographic Changes

The trend of demographic in our targeted area is set to be increased at a high rate with more

students coming to Kampar to pursue education in newly launched University Tunku Abdul

Rahman as the university completes its transition from old campus to the newly built campus.

This leads to increase in population aged 18 to 24 with high purchasing power. The demographic

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 10: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

8

of family households has now been largely diluted with a lot of college students. College

students tend to eat out more often than doing the cooking themselves.

Attitude of the community towards our business

There is a high demand for a lifestyle dining concept among college students and average family

household. This particular category of consumer is willing to pay premium in return for better

environment to dine in, good service and quality foods. Consumer reports in the targeted area

concludes that consumers would rather eat out with friends and families to save time on cooking,

while still able to utilize the extra time saved with friends and families. Thus, they demand

quality service and environment when dining out.

Analysis of the Competition

Our competition consists of a few food café located nearby our location. The competition will be

quite fierce as it offer food at lower price compares to our. But however our lifestyle café will set

us apart from the competition as we focus on best quality food and cake, cozy lifestyle ambiance

dining concept and therefore we emphasize on providing only the best dining experience to our

customers.

Golden Sand Cafe

Golden Sand café is our main competitor. It is located at the shop lots opposite to our store at

roughly 200 meter distance. It serves a variety of western food which includes steaks with rice,

spaghetti, and soups. Their main target is the students from university and college, thus their

average price per meal is set within the range of RM9-12.

Yum Yum Cafe

Yum Yum Café is located at the corner of the same shop lots as our café. They serve mostly

Chinese food such as noodle and rice which comes with a dish. Their meals price was set quite

low as to attract customer, within the range of RM 7-10. But however, the review from customer

for food has not been very good.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 11: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

9

Big A Kopitiam

Big A Kopitiam is a local restaurant which serves local delicacies from all over Malaysia. It is

located quite a distance from our shop, almost 2 km. Hence, they targeted market are those

downtown workers and late nighters as their shop operates till 2am.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 12: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

10

Marketing Plan

Product

Secret Recipe is well known in Malaysia for its fine quality cakes, fusion food and distinctive

service. Our well-guarded homemade recipes have become favorites for both old and young. We

are serving a wide selection of more than 40 types of gourmet quality cake and other baked

desserts. Other than that we also offer savory foods such as local delicacies and fusion food. It

includes Secret Recipe award winning Lamb-Stew and other favorite’s dish of all time, Black

Pepper Chicken, Kebab and Pasta.

We offer more than 40 types of different cheesecake, chocolate cake, and brownies. Other than

that, we also offer seasonal cakes using seasonal ingredient in Malaysia such as Durian Cake,

Durian Cheesecake and Hazel Cheesecake. Health Cake was introduced to the market as the

market trend shift to healthier lifestyle. Sugar free and trans-free cake such as Sugar Free Moist

Chocolate Cake and Hi-fiber Cream Cheese was put on shelf and gets good review from the

customers.

Secret Recipe do have the service of baking cake in shape of different character of Disney

cartoon based on the preference of customer’s choice of flavor . Customer can choose the

cartoon character pose from our album and choose up to 3 different flavors depending on how

big the cake they want. This cake reservation must be made 3 days in advance.

Our menu includes a few sections, which are:

Vegetarian: Its offers choice of salads and Japanese soba for those who vegetarian or those who

wish to have a fresh bowl of salad as appetizer.

Soup: Secret Recipe does have well-guarded recipes of soups such as mushroom soup, pumpkin

soup and carrot and ginger soup.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 13: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

11

Chicken: This section serves chicken in a variety of dish such as Chicken Steak Burger With

Fries, Grilled Chicken (Black Pepper, Mushroom, BBQ) Chicken Kebab and many more

delicious dish with chicken.

Pasta: We offer spaghetti with recipe all over the world no matter in western or Asia, such as

Spaghetti Bolognese and Tom Yam spaghetti. It is popular food in our menu.

Asian Classic: This section provides the best food selected from all over Asia.

Fish and Lamb: The Lamb Stew has been awarded ‘Best Lamb Stew Award”, it had becomes a

signature dish in Secret Recipe. Western foods are also served such as Fish And Chips.

Kids club: Secret Recipe Café had been also considering kids favorites dish and so gather it in

menu too. It comes in a smaller portion and smaller bite to ease the kids in dining.

Pies: It offers best pies recipe and created to engage the taste buds of customer.

Brownies: Brownies are offer in Secret Recipe Café with a variety choice. It is suitable for both

young and old and in comes in a fine texture of taste and quality.

Secret Recipe Café also serves a variety choice of drinks that includes Coffee, Organic tea,

Milkshake, Yoghurt shake, Fruit Juice, Ice Blended, Iced tea and also hot drinks.

Distribution

We distribute our products directly to our customer, which is through retail shop. Secret Recipe

also offers cake delivery if customers make booking of minimum 2 cakes through our website,

www.secretrecipe.com.my. The delivery will be made in 5 km radius from our shop.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 14: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

12

Promotion

As we are the franchise of Secret Recipe Café, the advertising on the franchise business as a

whole will be place by the induct company in major newspaper. At the grand opening of our

branch, we will hold an opening party. Free food such as our signature cheesecake and drinks

from menu will be served. By this method we can gain publicity and build our brand name in

town. The grand opening of the branch in Kampar will be put up in website of Secret Recipe

Café as free advertising. Besides that we will also put up banner at the lamp post along the main

road into the town to bring up the awareness of residents in town of the opening of our café.

Apart from that we will place advertisement of the opening of our shop in local daily newspaper.

This is an effective ways of spreading the words among the local to let them aware of the brand

new café existence.

Upon opening of our shop, we will distribute flyers at both the Tunku Abdul Rahman University

and Tunku Abdul Rahman College and to the white collar workers. Then we make a sponsorship

for an event in Tunku Abdul Rahman University to build our brand name and to introduce it to

the students and lecturers.

As to attract the tourist, we will meet the management of The Grand Kampar Hotel to discuss on

placing our brochure on the front desk as information to the tourist who accommodate there.

Secret Recipe Café also offer Birthday Promotion for the birthday girl/boy with the condition of

purchasing a whole cake and the birthday girl/ boy will be given a complimentary meal and drink.

The second promotion is RM15 per meal which comes with a drink; the customer can choose the

meal and drink from the given set menu.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 15: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

13

Place

We have chosen a strategic location facing a new plaza which will be built not far in future. This

location is located in the center of the town where it’s surrounded by the Tunku Abdul Rahman

University, Tunku Abdul Rahman College, more than 5000 houses and shop lots. After

surveying a few potential shop lots, we have decided to rent Unit 829, Taman Bandar Baru

Kampar, 31900, Kampar, Perak.

The property is about 2056 square feet and the height is about 4 meters. The rental of the premise

is Rm 2,000 per month. The premise will be renovated according to the design of layout

provided by the main franchisor of Secret Recipe Cakes & Café Sdn Bhd as to customize all the

branch.

The location was selected because the population in the town alone is 18,000 residents and the

students from both the university and college make up to 9,000. Furthermore the biggest hotel in

Kampar district was located about 400 meters away from our shop, the hotel attracts more than

3,000 tourist per year. This new town in Kampar will have a steady growth of population as the

hub of education was build here and the business center of Kampar are shifting into here as well.

The shop was located at the front row of shop lots and can be easily seen from the main road

from Kampar old town. The main road is the road accessible to university, college and also the

hotel. It may draw many attention and gets free publicity.

There are many parking lots available at the front of our shop and within our café area. It is very

convenient for customer to find parking.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 16: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

14

Pricing

Our product prices are set by Secret Recipe and we adhere to the price strategies set by Secret

Recipe. Secret Recipe uses a price lining strategy on certain categories of products. This is to

simplify the choices of the customers by introducing same pricing for foods of the same type.

Secret Recipe’s markup of 250% to arrive at menu price is at the industry average level range.

This is to cover up the overheads generated to operate the business. Retail prices will be

competitive at about $15 for the average meal which is about 30% above our competitor’s prices.

However customers are simply willing to pay more for healthier, tasty food served in a clean,

comfortable and pleasant environment.

Our pricing objective is to be as reasonable as possible for the average household income who

demands a good dining experience, therefore the cap limit for which the average target market

would be willing to pay for a meal is slightly above the normal pricing. This applies to the ala

carte meals only.

We have another set if pricing policies for our cakes which is different from the ala carte meals.

Tapping into the idea and trend of people craving for Secret Recipe’s cakes, we are able to

introduce our cakes at a standard RM6.30 per slice of cake and a standard RM70.00 per cake.

Customers are just willing to go for our quality cakes because of our brand in cake making

industry which had won us lots of awards.

Nevertheless, for cakes that requires custom designs, shapes, decorations, a premium will be

charged because of the usage of more than 1 recipes and the additional work on the cake.

Customized cakes with 1 recipe will have a markup of 250% of its cost, 2 recipes will have a

markup of 600% on cost and 3 recipes will have a markup of 800% on cost. The premiums are

paid for the amount of recipes used in the cake making process.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 17: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

15

We will exercise product bundling by introducing set meals to customers who come to dine

during peak hours, which is lunch hour and dinner hour. The objective of setting product

bundling pricing is to maximize table turnovers during the peak period and boosting sales. By

packaging a main course meal with a soup of choice and a drink, we are able to introduce set

packs at a much lower markup margin. Riding on the idea that white collar classes people and

college students who are in a rush to have their lunch, it would be effective that we get a lower

margin but able to maximize the table turnovers in order to maximize our sales during peak

hours.

Labor costs are based on monthly basis where staffs will be paid at the end of the month. Besides

this, bonus will be given at the start of every year. Bonuses are given to employee based on

performance of the company for the year.

Raw materials prices that we obtained are discounted prices 10% below market price as set in an

agreement by Secret Recipe franchisor with suppliers. This is the bang for the buck spot as the

cost and thus, leaving us with more space for our margins.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 18: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

16

Management Structure

Our management team consist of five(5) partners which will be Chan Chi Yee, Lian Ye Chen,

Lim Swee Ling, Ng Kim Toh, Tee Yang Wei. We segregate the duties to among five partners.

Our aim is to motivate our managers to take a personal stake in the success of company, and for

the reason each managers will be shared any profit that has been generated.

The sharing profit ratio will be 20% for each partner.

Marketing and Sales Manager

This position will be assigned to Chan Chi Yee. He will responsible for daily sales, advertising,

promotional plan and budgeting plan.

Financial Manager

Tee Yang Wei will be appointed as financial manager as he has the qualification as an

accountant. Therefore, he is capable of handling this responsibility. He will responsible for

accounting reporting and tax computation.

Purchasing Manager

Ng Kim Toh will take the responsibility of this position. She is responsible for keep contact with

our master suppliers list in order to ensure the supplier will deliver the raw material on times and

in good condition.

Administration and Human Resource Manager

This position will be appointed to Lian Ye Chen. She will responsible for all the administration

works. In addition, she also responsible to contact with Secret Recipe franchisor for fresh recruit

on-site training, set up and implement staff policy and accounting payroll.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 19: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

17

Supervisor

Lim Swee Ling will take over this responsibility. She is responsible for evaluate staff

performance, prepare staff daily schedule, monitor the daily operation and perform cash counting

at the end of each operating day.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 20: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

18

Operational Plan

Location

It must be at the good strategic location. Therefore, the location that we have chose will be

located at Taman Bandar Baru Selatan Kampar which is a surrounding by housing area, highly

visible, high stream of people as it is near to the University of Tunku Abdul Rahman and College

Tunku Abdul Rahman. The floor area is about 2,056 square feet. The rental per month will be

RM2,000 which is considered reasonable. The shop will be renovated as the design of layout that

provided by Secret Recipe franchisor.

Operation Hours

Our daily operation hours for Sunday to Thursday will be 10am to 10pm. For Friday and

Saturday our operation hours will be from 10am to 12am to accommodate the longer peak period

during dinner, because more family households choose to dine up outside during this time.

Besides that, our staff will be required to come in 1 hour in advance in order to any necessary

preparation.

Operation

In order to keep efficiency for daily operation, we will hire two chefs, one will be the main chef

and another one will be responsible for pastry plus we also hire an assistance chef to provide

assistance for the two main chefs. Besides that, four full-time staff will also be recruited and also

one part time staff that will fill in the job whenever one of our full-time staff is on leave. We will

also assign two shifts for our staff which is 1 day shift and night shift. Furthermore, the order and

payment by customers will be fully computerized, in order to ensure the effectiveness and

efficiency of our operation to minimize error.

Supplier

We will purchase our raw material from the suppliers which provided by the Secret Recipe

franchisor because it is more reliable and quality control by headquarter. Furthermore, purchase

the raw material through the suppliers list given by Secret Recipe franchisor will be given us a

lower price which the price is quoted at below 10% of the market price. We also given the

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 21: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

19

benefit of 30 days credit term for procurement of raw material, this allows to loosen up our cash

outflow.

Equipment

The suppliers of equipment, furniture, kitchen ware, auxiliary, toiletries and cutleries will be

provided by the Secret Recipe franchisor as to customize to their policy of shop layout concept.

Training

Secret Recipe franchisor will be provided on-site training for the chef, pastry chef and also

waitress. The chef must undergo 1 month training on how to prepare the dish on menu at Kuala

Lumpur headquarter. The pastry chef must also be trained in Kuala Lumpur on how to prepare

the cake and desserts. The objective of training not only to teach on the preparation of food but

also to increase their knowledge and skill. The full time workers will also be train by the

management in headquarter as how to serve the customers and how to prepare the drinks.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 22: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

20

Daily Business Schedule

Time Person in charge Job Description

9.00am to 10.00am • All the staff who

work at morning shift

• Chefs and chef

assistance

• The staff will be did some

cleaning process such as sweep

and mop the floor, clean the

table and etc.

• While, the chefs and chef

assistance will be prepared for

the raw material for the daily

usage.

• Supervisor will bank in the

yesterday cash received to bank

account.

10.00am to 1.00pm • All staffs include

chefs and chef

assistance

• Waitress will serve the

customers, take order, prepare

the

• Supervisor will manage the cash

payment system and serve the

customers when it is necessary.

• Chefs and chef assistance will

start their cooking in order to

meet customers’ order.

1.00pm to 3.00pm • All staff including

night shift staff

• Part-timer (if full-

time staff is on leave)

• The staff that work for night

shift will be come in at 1.00pm

and start their work.

• Morning shift staff will be given

one hour for their lunch.

3.00pm to 7.00pm • All staff • Continue their job as above.

• Night shift staff will be given 1

hour for dinner.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 23: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

21

7.00pm to 9.30pm • All staff • Morning shift staff can be knock

off work at 7.00pm

• Other staff will still continue

their job.

9.30 to 10.00pm • All staff • Chef and chef assistance will do

the necessary keeping for the

raw material, cleaning and

throw rubbish

• Other staff will clean the table,

throw rubbish.

• Supervisor will perform the

daily cash counting and keep the

cash at security box.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 24: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

22

Implementation Plan

Task Implementation Steps Start

Date

Duration Completion Date Staff Responsible

Administrative

Registration of business • Filling up forms to Registrar of

Company to establish a private

limited company

• Filing of documents required by

Registrar of Company to complete

business registration procedure

1/10/200

9

90 days 31/12/2009 Administration

Manager

Registration of franchisee • Filling up forms to Registrar of

Franchise to establish as a

franchisee

• Filing of documents required by

Registrar of Franchise to complete

franchisee registration procedure

1/10/200

9

90 days 31/12/2009 Administration

Manager

Loan application • Application of bank facility for

RHB Bank

• Seek a loan term loan application

2/10/200

9

7 days 9/10/2009 Financial

Manager

Business operating

license

• Obtain business operating license

with municipal council

8/10/200

9

60 days 6/12/2009 Administration

Manager

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 25: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

23

Task Implementation Steps Start

Date

Duration Completion Date Staff Responsible

Location agreements • Seek and confirmation of location

for business operation

• Confirm and enter into tenancy

agreement of business operation

location

12/10/20

09

7 days 19/10/2009 Administration

Manager &

Financial

Manager

Renovation and fitting of

furniture, lightings,

decorations

• Liaise with franchisor’s concept

designer to design the location into

Secret Recipe’s theme

• Get contractors to renovate the

theme designed

• Installing of furniture and lightings,

decorations

20/10/20

09

72 days 31/12/2009 Purchasing

Manager,

Financial

Manager &

Administration

Manager

Approval from Ministry

of Health

• Submission of form to Ministry of

Health for medical checkups of

partners

• Attend food sanitation classes

• Allow health workers to evaluate

sanitation compliances at premise

• Confirmation of approval

21/10/20

09

14 days 4/11/2009 Administration

Manager

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 26: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

24

Task Implementation Steps Start

Date

Duration Completion Date Staff Responsible

Approval from

Environmental Protection

Bureau

• Compliance with Environmental

Protection Act

• Allow officers to determine level of

compliance of premise to ensure it

is in compliance with

Environmental Protection Act

22/10/20

09

14 days 5/11/2009 Administration

Manager

Tax & Legal

Compliances

• Submission of documents to LHDN

(Lembaga Hasil Dalam Negeri) for

tax compliances of business

• Legal, solicit on business legal

system compliances

5/11/200

9

7 days 12/11/2009 Financial

Manager

Insurance • Application for premise’s fire

insurance, employee’s liability

insurance from Kurnia Insurance

(Malaysia)

16/11/20

09

3 days 19/11/2009 Human Resource

Manager,

Supervisor &

Administrative

Manager

Human Resource

Recruitment • Publicity activities to be done to 4/12/200 14 days 18/12/2009 Human Resource

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 27: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

25

Task Implementation Steps Start

Date

Duration Completion Date Staff Responsible

notify public about vacancy to be

filled up

• Conducting of interviews

• Confirmation of staff structure

9 Manager &

Supervisor

Medical Checkups • Medical checkups for all recruited

staffs to comply with regulation

bodies requirements

19/12/20

09

3 days 22/12/2009 Human Resource

Manager

Training • Liaise with franchisor’s staff trainer

and follow up close with on-site

training of staffs

15/11/20

09

1 month 25/12/2009 Human Resource

Manager

Marketing &

Promotion

Advertising • Advertise at local daily newspaper

• Put in the date of grand opening

and the grand opening party

• After opening, advertise on the set

meal promotion.

15/12/20

09

3&1/2

months

31/3/2009 Marketing and

Sales Manager

Printing • Design the banner to put up on 1/12/200 25 days 25/12/2009 Marketing and

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 28: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

26

Task Implementation Steps Start

Date

Duration Completion Date Staff Responsible

lamp post along main road

• Design flyer to be distributed to

students, residents and workers.

• Design brochure to be put in the

front desk of hotel.

• Get into contact with printing

supplier and get the best deal

• Choose material and confirm the

printing

9 Sales Manager

Sponsorship for Tunku

Abdul Rahman Event

• Meeting with the board of

University.

• Discuss on the details of the

sponsorship.

• Confirm of which event to sponsor.

1/2/2010 1 month 28/2/2010 Marketing and

Sales Manager

Grand Opening 1/1/2010

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 29: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

27

Gantt Chart of Implementation Plan

Month

Task

Oct

2009

Nov

2009

Dec

2009

Jan

2010

Feb

2010

Mar

2010

Registration of business

Registration of

franchisee

Loan application

Business operating

license

Location agreements

Renovation and fitting

of furniture, lightings,

decorations

Approval from Ministry

of Health

Approval from

Environmental

Protection Bureau

Tax & Legal

Compliances

Insurance

Recruitment

Medical Checkups

Training

Advertising

Grand Opening

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 30: 29047941 Secret Recipe Business Plan

ABDM 5234 Entrepreneurship Skills

28

Financial Plan

-refer excel

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 31: 29047941 Secret Recipe Business Plan

FINANCIAL PLAN

Startup CostsRM

Furniture & Fitting 35,000 Renovation 90,000 Kitchen Equipment 55,000 Total Capital Expenses 180,000

Franchise Fee 120,000 Franchise Fee - Registration 1,000 Franchise Fee - Processing Fee 50 Business License 3,480 Grand Opening Advertising 80,000 Rental (Deposit) 15,000 Total Deposit & Prepayments 219,530

Startup Costs 399,530

Equity RMCapital 150,000

Long-term LiabilitiesLong-term loan 300,000

Total Equity and Libilities 450,000

Calculation of Working CapitalTotal Equity and Liabilities 450,000 (-) Startup Costs (399,530) Working Capital 50,470

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 32: 29047941 Secret Recipe Business Plan

Pro Forma Income Statement for Year 1Infinity Private Limited

Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalSales 84,296 85,946 87,629 89,346 91,097 92,883 94,704 96,563 98,458 100,391 102,363 104,374 1,128,049 (-)Cost of Good Sold 23,956 24,428 24,909 25,399 25,899 26,410 26,930 27,461 28,003 28,555 29,118 29,693 320,762 Gross profit 60,340 61,518 62,720 63,946 65,197 66,473 67,774 69,101 70,455 71,836 73,245 74,681 807,287

Gross Profit Margin 72 72 72 72 72 72 72 72 72 72 72 72 72

ExpensesDepreciation 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 Maintenance and repairs 400 400 400 400 400 400 400 400 400 400 400 400 4,800 Salaries and wages 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000 EPF 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 Rent 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Telephone bill 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Interest expense 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 13,500 Utilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Accounting fee 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Advertising 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600 Royalty fees - 7% 5,901 6,016 6,134 6,254 6,377 6,502 6,629 6,759 6,892 7,027 7,165 7,306 78,963 Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 2,400 Total Expenses 51,026 51,141 51,259 51,379 51,502 51,627 51,754 51,884 52,017 52,152 52,290 52,431 620,463

Profit before taxes 9,314 10,377 11,461 12,567 13,695 14,846 16,020 17,217 18,438 19,684 20,954 22,250 186,824 Taxes - 25% 2,328 2,594 2,865 3,142 3,424 3,712 4,005 4,304 4,610 4,921 5,239 5,563 46,706

Profit After Tax 6,985 7,783 8,596 9,425 10,272 11,135 12,015 12,913 13,829 14,763 15,716 16,688 140,118

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 33: 29047941 Secret Recipe Business Plan

Pro Forma Income Statement for Year 2Infinity Private Limited

Quarter Q1 Q2 Q3 Q4 TotalSales 386,122 402,278 419,242 437,054 1,644,696 (-)Cost of Good Sold 106,631 111,247 116,093 121,183 455,153 Gross profit 279,491 291,031 303,148 315,871 1,189,543

Gross Profit Margin 72 72 72 72 72

ExpensesDepreciation 9,000 9,000 9,000 9,000 36,000 Maintenance and repairs 1,200 1,200 1,200 1,200 4,800 Salaries and wages 90,000 90,000 90,000 90,000 360,000 EPF 10,800 10,800 10,800 10,800 43,200 Rent 6,000 6,000 6,000 6,000 24,000 Telephone bill 600 600 600 600 2,400 Interest expense 3,000 3,000 3,000 3,000 12,000 Utilities 3,000 3,000 3,000 3,000 12,000 Accounting fee 2,400 2,400 2,400 2,400 9,600 Insurance 3,000 3,000 3,000 3,000 12,000 Advertising 4,860 4,860 4,860 4,860 19,440 Royalty fees - 7% 27,029 28,159 29,347 30,594 115,129 Miscellaneous 600 600 600 600 2,400 Total Expenses 161,489 162,619 163,807 165,054 652,969

Profit before taxes 118,003 128,412 139,342 150,818 536,574 Taxes - 25% 29,501 32,103 34,835 37,704 134,143 Profit After Tax 88,502 96,309 104,506 113,113 402,430

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 34: 29047941 Secret Recipe Business Plan

Pro Forma Income Statement for Year 3Infinity Private Limited

Quarter Q1 Q2 Q3 Q4 TotalSales 455,757 475,395 496,014 517,665 1,944,830 Cost of Good Sold 126,526 132,137 138,028 144,214 540,906 Gross profit 329,230 343,258 357,986 373,451 1,403,925

Gross Profit Margin 72 72 72 72 72

ExpensesDepreciation 9,000 9,000 9,000 9,000 36,000 Maintenance and repairs 1,200 1,200 1,200 1,200 4,800 Salaries and wages 90,000 90,000 90,000 90,000 360,000 EPF 10,800 10,800 10,800 10,800 43,200 Rent 6,000 6,000 6,000 6,000 24,000 Telephone bill 600 600 600 600 2,400 Interest expense 2,625 2,625 2,625 2,625 10,500 Utilities 3,000 3,000 3,000 3,000 12,000 Accounting fee 2,400 2,400 2,400 2,400 9,600 Insurance 3,000 3,000 3,000 3,000 12,000 Advertising 4,374 4,374 4,374 4,374 17,496 Royalty fees - 7% 31,903 33,278 34,721 36,237 136,138 Miscellaneous 600 600 600 600 2,400 Total Expenses 165,502 166,877 168,320 169,836 670,534

Profit before taxes 163,729 176,381 189,666 203,615 733,390 Taxes 40,932 44,095 47,416 50,904 183,348 Profit After Tax 122,796 132,286 142,249 152,711 550,043

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 35: 29047941 Secret Recipe Business Plan

Pro Forma Cash Flow Statement For Year 1Infinity Private Limited

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Beginning Cash Balance 50,470 57,955 66,238 75,334 85,259 96,031 107,666 120,181 133,593 147,922 163,185 179,400 Cash Inflows (Income)Cash Sales 84,296 85,946 87,629 89,346 91,097 92,883 94,704 96,563 98,458 100,391 102,363 104,374

Available Cash Balance 134,766 143,901 153,867 164,680 176,356 188,914 202,370 216,743 232,051 248,313 265,548 283,775

Cash Outflows (Expenses)Salaries and wages 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 EPF 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 Advertising 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 Rent 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Utilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Telephone bill 200 200 200 200 200 200 200 200 200 200 200 200 Insurance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Accounting fee 800 800 800 800 800 800 800 800 800 800 800 800 Miscellaneous 200 200 200 200 200 200 200 200 200 200 200 200 Loan payment 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Interest payment 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 Taxes 2,328 2,594 2,865 3,142 3,424 3,712 4,005 4,304 4,610 4,921 5,239 5,563 Maintenance and repairs 400 400 400 400 400 400 400 400 400 400 400 400 Inventory Purchases 23,956 24,428 24,909 25,399 25,899 26,410 26,930 27,461 28,003 28,555 29,118 29,693 Royalty fees 5,901 6,016 6,134 6,254 6,377 6,502 6,629 6,759 6,892 7,027 7,165 7,306 Total Cash Outflows 76,811 77,663 78,533 79,420 80,325 81,248 82,190 83,150 84,129 85,128 86,147 87,187

Ending Cash Balance 57,955 66,238 75,334 85,259 96,031 107,666 120,181 133,593 147,922 163,185 179,400 196,588

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 36: 29047941 Secret Recipe Business Plan

Pro Forma Cash Flow Statement For Year 2Infinity Private Limited

Quarter Q1 Q2 Q3 Q4

Beginning Cash Balance 196,588 286,590 384,399 490,405 Cash Inflows (Income)Cash Sales 386,122 402,278 419,242 437,054

Available Cash Balance 582,710 688,868 803,641 927,459

Cash Outflows (Expenses)Salaries and wages 90,000 90,000 90,000 90,000 EPF 10,800 10,800 10,800 10,800 Advertising 4,860 4,860 4,860 4,860 Rent 6,000 6,000 6,000 6,000 Utilities 3,000 3,000 3,000 3,000 Telephone bill 600 600 600 600 Insurance 3,000 3,000 3,000 3,000 Accounting fee 2,400 2,400 2,400 2,400 Miscellaneous 600 600 600 600 Loan payment 7,500 7,500 7,500 7,500 Interest payment 3,000 3,000 3,000 3,000 Taxes 29,501 32,103 34,835 37,704 Inventory Purchases 106,631 111,247 116,093 121,183 Maintenance and repairs 1,200 1,200 1,200 1,200 Royalty fees 27,029 28,159 29,347 30,594 Total Cash Outflows 296,120 304,469 313,236 322,441

Ending Cash Balance 286,590 384,399 490,405 605,018

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 37: 29047941 Secret Recipe Business Plan

Pro Forma Cash Flow Statement For Year 3Infinity Private Limited

Quarter Q1 Q2 Q3 Q4

Beginning Cash Balance 605,018 729,315 863,100 1,006,850 Cash Inflows (Income)Cash Sales 455,757 475,395 496,014 517,665

Available Cash Balance 1,060,775 1,204,709 1,359,115 1,524,515

Cash Outflows (Expenses)Salaries and wages 90,000 90,000 90,000 90,000 EPF 10,800 10,800 10,800 10,800 Advertising 4,374 4,374 4,374 4,374 Rent 6,000 6,000 6,000 6,000 Utilities 3,000 3,000 3,000 3,000 Telephone bill 600 600 600 600 Insurance 3,000 3,000 3,000 3,000 Accounting fee 2,400 2,400 2,400 2,400 Miscellaneous 600 600 600 600 Loan payment 7,500 7,500 7,500 7,500 Interest payment 2,625 2,625 2,625 2,625 Taxes 40,932 44,095 47,416 50,904 Inventory Purchases 126,526 132,137 138,028 144,214 Maintenance and repairs 1,200 1,200 1,200 1,200 Royalty fees 31,903 33,278 34,721 36,237 Total Cash Outflows 331,460 341,609 352,265 363,454

Ending Cash Balance 729,315 863,100 1,006,850 1,161,061

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 38: 29047941 Secret Recipe Business Plan

Pro Forma Balance SheetInfinity Private Limited

Opening Balance Year 1 Year 2 Year 3Fixed AssetsFurniture & Fixtures 35,000 28,000 21,000 14,000 Kitchen Equipment 55,000 44,000 33,000 22,000 Renovations 90,000 72,000 54,000 36,000 Total Current Assets 180,000 144,000 108,000 72,000

Current AssetsCash and Bank 50,470 196,588 605,018 1,161,061 Prepayments 219,530 219,530 219,530 219,530 Total Current Assets 270,000 416,118 824,548 1,380,591

Total Assets 450,000 560,118 932,548 1,452,591

EquityCapital 150,000 150,000 150,000 150,000 Retained Earnings - 140,118 402,430 550,043 Retained Earnings b/f - - 140,118 542,548 Total Equity 150,000 290,118 692,548 1,242,591

LiabilitiesLong Term Loan 300,000 270,000 240,000 210,000 Total Liabilities 300,000 270,000 240,000 210,000

Total Equity and Liabilities 450,000 560,118 932,548 1,452,591

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 39: 29047941 Secret Recipe Business Plan

Break-Even Analysis

Breakeven Value = Total Fixed Cost/ Gross MarginYear 1 Year 2 Year 3

Expenses RM RM RMEmployee Salary 360,000 360,000 360,000 Advertising 21,600 19,440 17,496 Rent 24,000 24,000 24,000 Depreciation 36,000 36,000 36,000 Utilities 12,000 12,000 12,000 Telephone bill 2,400 2,400 2,400 Interest expense 13,500 12,000 10,500 Insurance 12,000 12,000 12,000 Accounting Fee 9,600 9,600 9,600 EPF @ 12% 43,200 43,200 43,200 Total Fixed Costs 534,300 530,640 527,196 Gross Margin 72 72 72

Breakeven Value 746,595 733,678 730,315

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 40: 29047941 Secret Recipe Business Plan

APPENDIX

Employment Salary on monthly basisQuantity Salary (RM) Total (RM)

Marketing and Sales Manager 1 3,500 3,500 Financial Manager 1 3,500 3,500 Purchasing Manager 1 3,500 3,500 Administration and Human Resource Manager 1 3,500 3,500 Supervisor 1 3,500 3,500 Main Chef 2 2,250 4,500 Assistance Chef 1 1,800 1,800 Full Time Staff 4 1,300 5,200 Part Time Staff 1 1,000 1,000

13 30,000

Sales Forecast (Food & beverages)For first year, sales per month estimated to be increased by 2% every month

For year 2 and year 3, sales per year estimated to be increased by 5% every quarter

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total82,500 84,150 85,833 87,550 89,301 91,087 92,908 94,767 96,662 98,595 100,567 102,578 1,106,497

Year 1 Year 2 Q1 Q2 Q3 Q4 Year 3 Q1 Q2 Q3 Q41,106,497 323,122 339,278 356,242 374,054 392,757 412,395 433,014 454,665

Purchase Forecast (Food & beverages)We use mark-up of 250% for the menu pricing, so the cost of purchase should be(Sales/Cost) - 1 = 250%(Sales/Cost) = 3.5Cost = Sales/3.5

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total23,571 24,043 24,524 25,014 25,514 26,025 26,545 27,076 27,618 28,170 28,733 29,308 316,142

Year 1 Year 2 Q1 Q2 Q3 Q4 Year 3 Q1 Q2 Q3 Q4316,142 92,321 96,937 101,783 106,873 112,216 117,827 123,718 129,904

Sales forecast(cake)We estimated we can sell 1 customised cake for every 30 normal cakes sold RMSo, sales for customised cake every month : (12x83)+(3x120)+(2x220) 1796

Purchase forecast(cake)cake (1 recipe) = markup 250%cake (2 recipe) = markup 600%cake (3 recipe) = markup 800%

RMSo, cost of cake for everymonth = (12x83/3.5)+(3x120/7)+(2x220/9) 385

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 41: 29047941 Secret Recipe Business Plan

Other Cost EstimationRM RM RM

1)DepreciationDepreciation per year at 20%i) Furniture and fitting 7,000 ii) Kitchen equipement 11,000 iii) Renovation 18,000

36,000

2)Maintenance and RepairsMaintenance and Repairs per year 4,800

3)RentRental per month 2,000

4)Telephone BillTelephone bill per month 200

5)Interest Expenses and loan payment Year 1 Year 2 Year 3Long term loan balance 300,000 270,000 240,000 (-) loan repayment 30,000 30,000 30,000 Interest payment per year 13,500 12,000 10,500 Long term loan balance at year end 270,000 240,000 210,000

6)UtilitiesUtilities fee per month 1,000

7)InsuranceInsurance per year 12,000

8)Advertising Year 1 Year 2 Year 3Advertising fees per month 1,800 1,620 1,458 Advertising fees decrease 10% per year because our shop will be well known year after year.

9)MiscellaneousOthee expenses per month 200

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 42: 29047941 Secret Recipe Business Plan

29

Critical Risk Factors

Strong Competitors

Lifestyle cafes of similar concepts are mushrooming nationwide due to the high demand of such

dining concepts. However, the trend is beginning to shift from people dining at home towards

dining outside as the time they have after work is getting less, food service industry continues to

be one of the largest industry in Malaysia.

Global Disease

With the global pandemic outbreak of H1N1 influenza, people are likely to stay indoors rather

and would rather dine at home or order food because of the potential lethality of the virus. This

directly affects our business because of the widespread of the virus. This is inherent for us and

we cannot do anything to reduce this problem.

Economic Recession

Malaysia is going through a contraction in economy since the last quarter of year 2008. This

directly indicates that consumer's purchasing power has drop and consumers would not spend

lavishly. However, signs of economy recovering are beginning to pick up as of the third quarter

of year 2009 and it's likely to be recovered in early year 2010.

Unnoticing, the food service industry is not affected considerably as there are still signs that the

industry is growing at a positive rate with consumers want more of it.

Supplier

Since our suppliers are fixed by franchisor, it may be a long way journey for the ingredients to be

delivered to our location because of our location at a new area in Kampar. Therefore, the

freshness of our raw materials might be jeopardized. To ensure the quality of our materials are at

highest level possible, we would request our suppliers to upgrade their delivery method and

packing method during delivery period to ensure the materials retain their quality.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 43: 29047941 Secret Recipe Business Plan

30

Conclusion

Before we enter into the food industry in Kampar, we had done sufficient amount of market

research and analyzed the business environment to determine the feasibility of venturing into the

target market. Our analysis shows a positive sign of market trends towards what our business

plan is offering.

We had planned our business venture by having marketing plans, operation plan, implementation

plans and financial projections.

Our marketing plan is written thoroughly by using the “4P’s” rule of thumb to be as concise and

detail as possible. We detailed out all our product mix, selection of location, promotion strategy

used and pricing strategies used. By combining our competitive advantage of riding on the good

brand name value of Secret Recipe, we are able to gain a high markup on cost. Our special

pricing strategy enables us to maximize our table turnover during peak period and thus increase

our sales to the maximum.

Our implementation plan allows us to complete all our business operating procedures in time for

grand opening on 1st of January 2010. With this implementation plan, we are right on track to

start operating in 3 months period.

Nevertheless, we are prepared for any uncertainties and risks that might hinder our business from

operating smoothly. We are confident that we will ride through the storm of economic recession

and our risk will be minimized with the strategies that we used.

Upon evaluating all the researches and analysis, we are confident that our business will have a

steady and promising growth in the short term and a steady profit margin in the long term due to

the strict adherence and believe in the success of Secret Recipe’s brand name. We are of the

opinion that our business plan will be a huge success and will win over the hearts of Kampar

people.

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 44: 29047941 Secret Recipe Business Plan

31

Appendixes:

Beverage & Desserts Menu

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 45: 29047941 Secret Recipe Business Plan

32

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 46: 29047941 Secret Recipe Business Plan

33

Secret Recipe Café Food Menu

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 47: 29047941 Secret Recipe Business Plan

34

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 48: 29047941 Secret Recipe Business Plan

35

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 49: 29047941 Secret Recipe Business Plan

36

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 50: 29047941 Secret Recipe Business Plan

37

Shop Location

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 51: 29047941 Secret Recipe Business Plan

38

Shop layout

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 52: 29047941 Secret Recipe Business Plan

39

Promotion

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 53: 29047941 Secret Recipe Business Plan

40

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 54: 29047941 Secret Recipe Business Plan

41

Bibliography

http://www.mfa.org.my/

http://www.just-food.com/store/product.aspx?id=77601

http://www.ssm.com.my/en/docs/Procedure_Guidelines_for_Registration_of_a_Business.pdf

http://www.mdkampar.gov.my/latarbelakang?p_p_id=56_INSTANCE_tKR1&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&p_p_col_id=column-3&p_p_col_count=1&page=2

http://www.mfa.org.my/?franchise_article:pembangunan-sektor-francais-dalam-ekonomi-malaysia

http://www.food-beverage-malaysia.com/

http://www.bharatbook.com/Market-Research-Reports/Food-Drink-Report-Malaysia.html

KAMPAR. (n.d.). The secret of Secret Recipe. Retrieved July 14, 2009, from

http://biz.thestar.com.my/news/story.asp?file=/2009/3/21/business/3471796&sec=busins

LENG, F. T., & BAHRI, S. (n.d.). Bright future for Kampar. Retrieved July 25, 2009, from

http://thestar.com.my/metro/story.asp?file=/2009/6/4/north/4010985&sec=North

Malaysia Food and Drink Report Q3 2009 (download) - Food Market Research Reports. (n.d.).

Retrieved July 15, 2009, from http://www.just-food.com/store/product.aspx?id=77601

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI

Page 55: 29047941 Secret Recipe Business Plan

42

SHOPLOT NEAR KAMPAR PERAK UTAR KTAR FOR RENT LEASE in Malaysia @

Adpost.com Classifieds > Malaysia > SHOPLOT NEAR KAMPAR PERAK UTAR KTAR

FOR RENT LEASE in Malaysia,free,malaysian,classified ad,classified ads. (n.d.).

Retrieved July 15, 2009, from http://www.adpost.com/my/homes_offices/36677/

Secret Recipe |Cyber Cafe, Internet Cafe, Coffee Shop, Coffee House, Bistro Cafe, Beach

Café | Ad | 88DB Malaysia. (n.d.). Retrieved July 14, 2009, from

http://my.88db.com/my/Services/Post_Detail.page/Food_Beverage/Caf%C3%A9/?PostI

D=51382

Sophia. (n.d.). Secret Recipe, Café & Cake House, Malaysia. Retrieved July 14, 2009, from

http://www.streetdirectory.com/malaysia/kl/food_advisor/review/new/restaurant-

secret_recipe_a_successful_formula-305.php

Suruhanjaya Syarikat Malaysia. (n.d.). Retrieved July 16, 2009, from

http://www.ssm.com.my/en/services_acts.php

The Official Website of Department of Statistics Malaysia. (n.d.). Retrieved July 15, 2009, from

http://www.statistics.gov.my/eng/

cakes, v. o., food, f., & service., d. (n.d.). Secret recipe franchise. Retrieved July 16, 2009, from

http://www.secretrecipe.com.my/secretrecipe/catalog/content/57/index.html

secret recipe franchise. (n.d.). Retrieved August 10, 2009, from

http://www.secretrecipe.com.my/secretrecipe/catalog/content/372/60/index.html

COPYRIGHT 2009 ALL RIGHTS RESERVED WWW.ALVINCHAN.NET

CHAN CHI YEE, LIAN YE CHEN, LIM SWEE LING, NG KIM TOH, TEE YANG WEI