S T R A T E G I C B U S I N E S S P L A N

1

Table of Contents

Executive Summary 2

Vision and Mission Statements 4

Management Team 6

Product Review 7

Target Market 9

Competitive Review 10

Industry Research 11

Goals and Objectives 13

SWOT Analysis 14

SWOT Matrix 16

Product Positioning Map 17

Marketing Mix Strategies 18

Location Analysis 20

Financial Statement 22

2

Executive Summary

The CompanyArt a la Mode Café will be a vanguardist establishment focused on bringing

together the simple pleasures of art and gastronomy, enlightening the minds,

the souls, and the taste buds of our customers. The main purpose of this Café is

to create a unique experience merging our love for art and tasty cuisine,

working as canvas to display the work of local and international artists. A cozy

and appetizing atmosphere that offers a succulent menu will go together with

the art scene.

Products and ServicesArt a la Mode Café will be a specialty restaurant offering simple

contemporary cuisine, a full liquor bar, and a gourmet coffee bar. The Café will

consist of two floors and an outside patio, its sleek design and architecture will

resemble the looks of a contemporary art gallery. The restaurant will feature art

displays that will change every week. Especial events with particular themes

and topics will also take place at Art a la Mode Café. Since art and cuisine go

hand-to-hand in this business there will be also an Art Menu.

Target MarketArt a la Mode Cafe will be located at the Hollywood Beach Historic District,

targeting audiences that whish to experience a different culinary approach

surrounded by interesting art displays, as well as local and international artists

that want exposure for their work. The target’s demographics mainly include

customers 18 years old and older, with an average income that have achieved

some level of higher education, and that reside in the South Florida area.

The CompetitionEven though Art a la Mode Café will be located in an area of great restaurant

development and competition, the majority of businesses focus on different

kinds of ethnic cuisines. Consequently, none of these businesses present a direct

threat, since being a specialty restaurant that will provide food and

entertainment will gives us the opportunity to stand up among the others.

3

Marketing and Sales StrategyArt a la Mode Cafe strategies will focus on offering its customers and

employees a rewarding experience. As a new business, promotion plays a

crucial role in our success and development. Different advertising strategies will

be use to generate the highest level of exposure, also promotional strategies

such as discount cards, Art a la Mode memberships, special daily features such

as live music, poetry, kids activities, etc.

OperationsArt a la Mode Café will operate in a two-story structure. The first floor, will serve

as the main sitting area while the upper floor will be focused on the art exhibits.

There is also an outside patio that will serve as sitting and smoking area. The Café

will open from Monday to Fridays from 11 a.m. to 11 p.m. offering lunch and

dinner, and Sunday from 10 a.m. to 10 p.m. offering brunch, lunch, and dinner.

ManagementGraphic designers Marines and Luis Espinoza, who will be performing the roles

of General Manager and Art Department Coordinator respectively, own Art a

la Mode Cafe. This business will have a genuine approach to art and culture in

its different forms of expression. Culinary Manager, Chef Maria Galvez

graduated from Le Cordon Bleu Academy with an outstanding performance.

Art a la Mode Café will have an exceptional team whose members have years

of experience in the field.

DevelopmentArt a la Mode Café’s goal is to transcend in the South Florida scene, and to

create a strong and loyal clientele trough the establishment of a membership

club, the development Art a la Mode merchandise, and probably in the future

expand the business to other areas of the state.

FinancialsThe financial strategy of Art a la Mode Cafe is to reinvest in the development

of our business. The estimated revenue projection for the first year of operation

is a little over $500,000. This amount should increase progressively throughout the

years in business.

Funds Sought and UsesThe funds obtained during the first year of business will be used for expansion

activities, hiring new staff, and increasing marketing activities. Long-term plans

include on-line distribution of our merchandise and the opening of a new

location in West Palm Beach by Winter 2010

4

Vision & Mission

Vision Statement

The vision of Art a la Mode Café is to transcend in the South Florida scene as

a vanguardist business that is focused on bringing together art and gastronomy,

enlightening the minds, the souls, and the taste buds of our customers.

Mission Statement

• Customers: Art a la Mode Café is designed by art lovers and for art lovers.

• Products or Services: Our mission is to create a unique experience for our

customers, merging our love for art and tasty cuisine. Art a la Mode Café serves

as a canvas to display the artwork of local and international artists. At the same

time, it offers a cozy and appetizing atmosphere with a succulent menu

designed to please the most exigent palates.

• Market: Located in the heart of the ever growing andmultifaceted Hollywood

Beach, Art a la Mode Café stands as an exiting specialty restaurant.

• Self-Concept: The specialty restaurant concept benefits our business since it

provides a narrow focus for our market segment. The fact that Art a la Mode

Café’s concept is well defined and easy to relate to gives us an advantage in

the industry, allowing our business to stand up among the others. Moreover, the

fact that we are a hybrid between an art gallery and a restaurant makes our

company even more appealing to the market.

• Technology: The establishment counts with state-of-the-art technology that

allows our staff to perform efficiently and provide a better experience for our

customers. We also take into consideration the ecological impact of our business

activities; therefore, we go one step further in our effort to use recycled goods

and use organic produce and products in the preparation of our food.

5

• Concern for survival, growth, and profitability: Our commitment to success is

the driving force of this business. The entire Art a la Mode Café staff and

managerial team is focused in achieving personal and financial growth.

• Philosophy: As members of the art community, we believe that entertainment

and culture go hand to hand. It’ is very important for our company to provide

exposure and promote the local and international talent. However, we carefully

select the artwork that will be displayed, in order to maintain our standards and

ensure that the material is appropriate for our audience. It is also a priority to

offer top quality cuisine, using only the freshest, and most healthy ingredients to

prepare the items in our menu.

• Concern for the Public Image: Our mission is to offer the community a way of

expression and to help the youth to develop an artistic culture. Art a la Mode

Café, as part of the South Florida community is concerned for the well being of

our people and our business operations will always have our community as a

priority.

• Concern for employees: Is essential for our company to guarantee that both

employees and customers find themselves in a comfortable environment were

is pleasant to work as well as to have a good time. Inside our company, it is a

priority to provide an ethical and professional workplace for all the employees.

6

Management Team

Owned by graphic designers Luis andMarines Espinoza, this business will have

a genuine approach to art and culture in its different forms of expression. Art a

la Mode Café will have an exceptional team whose members have years of

experience in the field. Both owners have worked in the restaurant business for

more than 5 years, acquiring all the knowledge needed to manage a successful

restaurant.

General Manager Marines Espinoza, graduated with a Bachelor’s Degree in

Advertising and Graphic Design from the Art Institute of Fort Lauderdale, she will

be also in charge of the Marketing and Sales Department.

Since art will play such a vital roll in the development and success of this business,

Graphic Designer Luis Espinoza, who is also a graduate from the Art Institute of

Fort Lauderdale, will be the Art Department and Event Coordinator Manager.

Culinary Manager, Chef Maria Galvez graduated from Le Cordon Bleu

Academy with an outstanding performance. She has worked for many hotels in

South Florida, including The Westin Diplomat and The St. Regis Fort Lauderdale.

Five years ago, she opened her own catering business and now she will be

heading the culinary department at Art a la Mode Café.

There will also be an Assistant Manager and a Service Supervisor; Mark

Johnson and Julia Smith will perform these positions.

Marines Espinoza

General Manager

Marketing & Sales Department

Chef Maria Galvez

Art Department Manager

Event Coordinator

Julia Smith

Service Supervisor

Mark Johnson

Assistant Manager

Luis Espinoza

Art Department Manager

Event Coordinator

7

Product Review

Art a la Mode Café will be a specialty restaurant that will offer simple

contemporary cuisine, a full liquor bar, and a gourmet coffee bar. The menu

was designed taking into consideration the new culinary trends and the

preferences of our target audience. The prices will be very competitive, the

menu items range from $5.99 to $18.

The food menu includes items such as:

o Appetizer: Baked Brie and Fruit, Coconut Shrimps, Antipasto, Spring

Rolls, Tuna Carpaccio, etc.

o Entrees: Miso Salmon, Churrasco Steak, Chicken Cacciatore,

Lasagna, etc. There are also some vegetarian options such as

Portobello Mushroom Quesadillas.

o Desserts: Chocolate Fondue (with fruits, marshmallows or pastry),

Crème Brule, Fresh Berries and Cream, Tiramisu, Home-made Ice

creams and sorbets, etc.

The drink menu offers items such as:

o Spirits: a full bar stocked with the finest spirits in the market, from

the Bacardi products to the exclusive Remy Martin Cognacs. Also

national and imported beers.

o Wine List: a wide selection of the best wines from Italy, Spain,

California, and Argentina. The wine list ranges from Chardonnay to

Sauvignon Blanc, from Malbec to the finest Italian Chianti.

o Specialty and Gourmet Coffee Drinks: featuring the finest Italian

coffee beans, blended into delightful drinks with Frangelico,

Amaretto, Bailey's, Kahlua and more. Or simply enjoy espresso drinks

like cappuccino, macchiatos, or a tasty American coffee.

8

Art a la Mode Café has a sleek design and its architecture resembles the looks

of a contemporary art gallery. The restaurant has a main dining room in the first

floor and a second floor that is a specially designed area for the art exhibits, also

an outdoor patio that offers additional seating and a smoking area.

The restaurant features art displays that change every week. Special events

with particular themes and topics also take place at Art a la Mode Café. Since

art and cuisine go hand-to-hand in this business there will be also an Art Menu.

Such menu will feature the restaurant’s “weekly art specials” which will provide

extended information about the artwork that is being displayed through out the

place. This menu is also an attractive way to promote the artists and even sell the

pieces that are in display.

9

Target Market

Since Art a la Mode Café is considered a specialty restaurant, its target

market is easy to identify and could be described as follows:

Demographics:

o Age: 18 years old and older.

o Gender: Both sexes.

o Income: Average [$20k - $100k]

o Education: Some level of higher education [High School graduates,

college students, professionals]

o Geographic Location: The South Florida Area. [Miami Dade and

Broward counties]

o Marital Status: Any status.

Psychographics:

o Families, friends, and couples that which to experience a different

culinary approach surrounded by interesting art displays.

o Audiences in need of a place for unwinding and relaxing in an artsy

atmosphere.

o General audience with interest in learning about art and culture.

o Local and International artists that want exposure for their work

10

Competitive Review

After researching the area, the only business that presents some of the same

features is Art NowCafe. This restaurant is located in the Hollywood Young Circle,

and it has been open for about five years. However, after reading some of the

online reviews it is obvious that the business has deviated from its original

concept. The comments were not very positive because the place lost its quality

and the atmosphere doesn’t represent the art scene.

Many other restaurants are located around the Hollywood Beach Area some

of these are also specialty restaurants that focus on different kinds of ethnic

cuisines. However, none of them presents a direct threat to our business.

11

Industry Research

o Current market research already indicates that the restaurant industry

is the nation’s largest employer outside of government agencies,

employing and estimated 12.8 million people.

o Every one million dollars spent in restaurants generates 37 new jobs for

the nation’s economy, meaning that the estimated five percent sales

increases for 2007 over the current $539.9 billion dollars will create nearly

10,000 new jobs in the restaurant industry this year.

o More than seventy percent of all restaurants are independently owned,

single-unit operations.

o Regardless of other areas of economic slowing, people have shown a

tendency to always want to get out for dining and entertainment. In

fact, during times of economic depression, food establishment were

one of the few industries that were able to hold onto their assets and

sustain themselves through the hardship.

o According to the National Restaurant Association’s 2007 Restaurant

Industry Forecast, the industry will enter its 16th consecutive year of real

growth. Florida’s sales are expected to increase 7.1 percent with a profit

of $25.7 billion.

o For the past 50 years, the restaurant industry has been made up to three

distinct segments - fast food, casual dining, and fine dining. In recent

years, the industry has started to break into more categories, including

quick casual and home-meal replacement, which are two of the

fastest-growing segments within the food service industry.

o Although the quick-casual restaurant sector is still in its infancy, this

segment will continue to dominate industry growth in 2007 by dividing

into smaller and more specialized categories. More specialty restaurant

concepts are on the horizon for 2007 and those planning to launch a

new restaurant in 2997 should concentrate on delivering a specialized

product.

12

o Dietary issues are a concern for every consumer, and restaurants will

satisfy consumers’ appetites for healthier menu options in 2007 by

offering wraps, chicken dishes and energy drinks. Restaurants are also

incorporation more locally grown and organic ingredients into menu

items in the wake of E. coli and salmonella scares. Consumers will

continue to embrace the menu flexibility that tapas-style eateries offer,

such as creatively composed Appetizer, small plates, snacks, and

sandwiches.

o Restaurants are increasing their environmental effort. More than three

out of four restaurants purchase products made from recycled

materials. In addition, restaurants recycle fats/oil/grease [FOG], paper,

aluminum/metal cans, glass, plastic, and food waste.

o Restaurant concepts will have smaller and smaller footprints as industry

players compress sales to square-foot rations, and marketing budgets

will shift from mass media practices to non-traditional approaches

including local stores marketing, for-walls marketing, and public

relations.

13

Goals & Objectives

G1: To increase customer awareness.o.a: Generate intensive business exposure through advertising to

increase the percentage of customer awareness in our area in the first

3 months after opening. The advertising strategies will include: radio,

magazine, and newspaper ads, banners around the area, on-line

advertising, and direct mail among others.

G2: To achieve a high level of customer satisfaction.o.a: Provide training for the service staff every three months to

educate them about prompt and efficient service.

o.b: Closely monitor the customers’ opinions about service, food

quality, art exhibits, and overall experience through the application of

surveys along with every check. Study general results month by month.

G3: Build a frequent and loyal clientele.o.a: To increase sales by 10% in the first year of business.

o.b: Create an Art a la Mode Café membership club, and recruit at

least 50 members in 6 months.

o.c: Develop Art a la Mode merchandise, such as tote bags, paint

brushes, sketching pads, t-shirts, etc, within the first year of business.

G4: Open a new location in West Palm Beach by Winter 2010o.a: Calculate start-up capital based upon the profitability of the

current Art a la Mode Café by the second quarter of 2009

o.b: Research for a new location by the third quarter of 2009

o.c: Conduct a market and location analysis by the first quarter 2010

14

SWOT Analysis

Strengths

o We can provide a unique service experience in the area, providing

the perfect combination of entertainment.

o We can have a strong cultural presence in the community.

o We can be a major point of convergence for artists and art lovers.

o Our art displays won’t be limited to paintings; it will also include

sculptures, music, poetry, graphic design, etc.

o Being a specialty business gives us the opportunity to stand up

among the other restaurants in the area.

o Residential buildings and houses surround Art a la Mode Cafe. This

fact could allow the development of frequent customers from the

area.

o Our menu prices are affordable and the items are appealing to a

wide audience.

o Being located in the new redeveloped Hollywood Beach tourist

area gives our business a high pedestrian traffic.

Weaknesses

o We need to avoid the misperception of our business concept. The

idea of a restaurant/art gallery may be confusing for the general

public.

o Being a new business will present a risk for the success of the

company since it will take some time for the public to be aware

of Art a la Mode Café and the services we offer.

o Our business concept might be too niche for the area.

o We might deal with some staffing issues, such as service staff

training and art gallery assistants.

o The customer affluence might be influenced by the different kinds

of art displays, creating irregularities in the business activities.

15

Opportunities

o With time our business could expand, and open new restaurants

with the same concept in nearby cities.

o If the business succeeds, our business could be attractive to famous

local and international artists. This could generate cross promotion

between the artists and our establishment.

o South Florida is a very culturally diverse state, so this creates

opportunities for our business to raise and be appealing to the

different communities.

o Florida is a major tourist destination, and with the right advertising

Art a la Mode Café could become a landmark for the city of

Hollywood Beach.

Threats

o Since our business is located in the Hollywood Beach hurricane

evacuation area, weather issues may represent financial and

structural threats for our business.

o The opening of future business that may have a similar concept and

become strong competitors.

o Non-acceptance by the art community

16

SWOT Matrix

Strengths:-Unique service experience

-Major meeting point for

artists and art lovers

-Specialty business

-Development of frequent

customers

-Affordable prices &

appealing menu items

-Tourist area [high

pedestrian traffic]

Weaknesses:-Misperception of our

business concept

-New business [public

awareness]

-Staffing issues [service

staff training and art

gallery assistants]

- The customer affluence

influenced by art displays

[irregular business

activities]

Opportunities:-Business expansion

-Cross promotions

between artists and

our business

-Appealing to

culturally diverse

communities

-Florida is a major

tourist destination, Art

a la Mode Café

could become a city

landmark.

S|O Strategies:-Special features such as

poetry Mondays, live music

on Tuesdays, or a Sunday

special where kids are the

artists, etc.

-Plan an aggressive

advertising campaign that

includes travel and tourism

agents to create awareness

around the area.

-Offer discount on the

menu items for people in

the art business

W|O Strategies:-Emphasize the culinary

aspect of the business in

our advertisement to

portray a concise concept

to the general public.

- The staff should be from

multicultural backgrounds,

this would be helpful for

tourist purposes.

-Create a general

atmosphere where all

kinds of public can feel

comfortable.

Threats:-Non-acceptance by

the art community

-Weather issues

[Hollywood Beach

hurricane evacuation

area]

-Competitors that

may have a similar

concept

S|T Strategies:-Always display unique and

trendy artwork that will

draw the customers’

attention along with

exceptional service that

invites them to keep

coming back to the

restaurant.

-Develop an alternative

seasonal menu with

discount prices for the

hurricane season.

-Reinforce the structure with

protective windows.

W|T Strategies:-Promotional strategies

such as discount cards, or

Art a la Mode

memberships that will

incite customers to refer

friends to our business. This

strategy will also help to

spread the restaurant’s

concept from the

customer’s perspective

-During hurricane season

staff will be reduced to fit

the business activity.

17

Product Positioning

18

Marketing Mix

The main strategy behind our business concept is to make our customers feel

that Art a la Mode Café is as unique as they are, and that we offer them the

opportunity to relax, have fun, and learn in an appealing atmosphere. This

business has a great potential for success because it presents a wide range of

growth opportunities. The marketing and advertising strategies have been

designed to take advantage of our resources, products, and services.

ProductArt a la Mode Café as a product or service needs to be portrayed as symbol

of quality and innovation. Starting with our business’ name our concept is clear

and specific; our operations will merge the pleasures of contemporary cuisine

and vanguardist art. Art a la Mode Café style is unique and inviting, our

establishment has being designed to comfortably accommodate 150 customers

between the dining tables and the bar, plus a lounge and art display area

located on the top floor. Art is the reason for everything in this business;

consequently everything from the glassware to the menu, from the cutlery to

the decor will reflect our style.

PriceThe menu prices, from food items to drinks and coffee have been determined

by studying our target market, our location, and the quality of our products. The

main objective while creating this business is to give the customer the best value

for their time and money. For this reason, our prices are affordable and range

from $5.99 to $18. Regarding to the art exhibits; there will be a price list of the

happening displays that will be provided to the customers along with the regular

menu. However, Art a la Mode Cafe will act only as an intermediary between

the artists and our customers.

19

PromotionAs a new business, promotion plays a crucial role in our success and

development. Different advertising strategies will be use to generate the highest

level of exposure. For example, local radio commercials, magazine and

newspaper ads, direct mail, and banners around the area. In addition, internal

promotions such as special discounts for people in the art business, and Art a la

Mode Cafe memberships will invite people to refer friends and family to obtain

discounts on food and merchandise. Our art programs can be promoted at

schools in the area to attract kids with artistic interests. Moreover, word of mouth

among the art community can create a useful awareness that could contribute

our business from the artistic perspective as well as to increase our customer

base. PR is also very important, strategies such as sponsoring community events

or educational activities will be great publicity. Other strategies could include

deals with travel agencies, the Hollywood Beach Arts and Tourism department,

and a user-friendly website with information about the events, the menu,

coupons and other specials.

PlaceLocation is one of the key elements for the success of this business. Our

location is very convenient since is between Miami and Fort Lauderdale, one

the most touristic areas of South Florida, these adds value to our business, and

also makes it more accessible to possible customers.

20

Location Analysis

The small town characteristics of Hollywood Beach such as personal service,

local ownership, sense of community and intimate scale of architecture are the

foundation of its unique identity. These characteristics are represented and

facilitated by the scale, style, spatial organization, and material characteristics

of the existing stock of historic structures. At the same time, the natural assets of

Hollywood Beach such as ocean access and proximity to regional nature parks

are important elements of its unique identity and among its most valuable assets.

These structures and natural assets present a unique sense of place that is one

of the Beach’s most important means to distinguish itself in the Greater Fort

Lauderdale tourist market and to protect its position as an economically viable

tourist destination.

Unlike most beachfront retail strips, which are buffered from the ocean by a

roadway, Hollywood’s beachfront retail is buffered by the Broadwalk—a

30-foot-wide pedestrian walkway that is unique on the East Coast. The public

promenade and beachside restaurants, hotels and shops have established the

unique atmosphere of Hollywood beach. Active spaces at ground level allow

passersby and patrons to interact and to create a socially vibrant public space.

The existence of this kind of public space is part of the unique and valuable

legacy of Hollywood Beach’s urban design. An active beachfront with a mix of

ground level retail, restaurant, and hotel uses along the Broadwalk is Hollywood

Beach’s most significant character-defining feature.

The Hollywood Beach downtown area has experienced efforts for economic

redevelopment for the past few years. The area contains several beach

neighborhoods, and is divided in the following zones: North Beach, Central

Beach, and South Beach. Art a la Mode Café will be located in the South Beach

zone, which is a high intensity urban area that started with the development of

high-rise residential buildings and The Diplomat Hotel in the 1950s to the 1980s.

21

Demographically, the beach has a majority of white residents with lower

percentages of other residents. Furthermore, the beach population of older

aged residents, primarily 65 and over. However, in the past few years due to the

extensive development in the area, Hollywood Beach is now one of the trendiest

cities in Broward County.

The beach area has higher income averages than the City as a whole. South

Beach has a higher average at $35,054 than North and Central Beach, with

North Beach having the lowest average at $30,251. The housing values in

Hollywood Beach are much higher than the city as a whole. South Beach

average housing value averages at $206,300. While North and Central Beach

also remain high with $109,600 and $156,900 as averages.

22

Financial Statement

Sales Yearly %Food $ 525,780 38.1

Beverage $ 736,920 53.4

Total Sales $ 1,380,000 91.5

Cost of Sales

Food $ 351,900

Beverage $ 117,300

Total Costs of Sales $ 469,200 34

Gross Profit $ 910,800 66

Other Income [Art Commission] $ 10,000

Interest Income $ 55,258 6

Total Income $ 865,552 62.72

Controllable Expenses

Salaries & Wages $ 129,832.8 15

Employee Benefits $ 47,605.36 5.5

Operating Expenses $ 9,521 1.1

Marketing $ 17,311.04 2

Utilities & Rent $ 147,143.84 17

Administrative Expenses $ 43,277.6 5

Repair & Maintenance $ 6058,86 0.7

Total Controllable Expenses $ 400,750.5 46.3

Net Profit $ 464,801.5 33.68

23

Assumptions

o Based on an average of 250 covers (customers) per day.

o Working 7 days a week, during the whole year, with some holiday

exceptions.

o Averaging an expense of $16.50 per customer.

o Employee wages starting at $3.5 for the service staff, and $6.79 for

regulat staff.