business plan -dream-

EXECUTIVE SUMMARY

OZEN Group is a quick service counter concept, providing a blend of North American and Asian cuisine packaged in a rapid and friendly service to the customers.

OZEN Group will concentrate their marketing on two different sectors: the lunch crowd and the takeout/delivery crowd.

The food industry is a thriving sector in the Canadian economy and holds approximately 4% of the Canadian GDP. We should note that the food industry has seen in the past few years a slight growth in the sales and revenues between the periods of 2005 to 2007. However, with the economic downturn that the world is currently experiencing the CRFA (Canadian Restaurant & Foodservice Association) is predicting a decline of the industry between 2008 and 2009. Despite the bleak outlook, research shows that people won’t curb their eating habits as much as their retailing habits.

While there are a high number of restaurants in the region of Longueuil, only Sushi Shop offers Asian cuisine and none of the surrounding competitors have the innovative menu items and sauces provided by OZEN Group.

OZEN Group selling strategy will emphasize on innovative cuisine and exceptional customer service. Since we are a smaller enterprise than our competitors and less restricted to corporate image, we are much more flexible in our service system. Providing individualistic delivery method for the nearby offices would enable OZEN Group to target a wider clientele. A friendly and impactful staff will be primordial to insure recurring customers with seasonal promotion; this combination would ensure successful operation.

Through different partnerships, OZEN ASIA will be purchasing semi-finished product with minimum onsite food preparation. The daily operation will consist of one lead shift partner, one lead roller and one kitchen aid. We estimate that during peak time a second roller will be added to the rotation plus an extra employee for a total of five employees.

The executive board presently consists of Duy Nguyen as president and secretary-treasurer and Alain Nguyen as vice-president. Both have several years in management position and restaurant business.

Based on the size of our market and our defined market area, our sales projections for the first year are $530,000.00.

OZEN Group Inc. BUSINESS PLAN 2009 1

The estimated total of the project is $140,000.00; this includes professional fees, equipment purchasing and leasehold improvements. OZEN ASIA is seeking a small business loan of $55,000.00 to inject in the start up of the project from the Royal Bank of Canada.


TABLE OF CONTENTS

COVER PAGE

EXECUTIVE SUMMARY

TABLE OF CONTENTS

1. GENERAL INFORMATION1.1. BUSINESS NAME & QUEBEC REGISTRATION NUMBER1.2. BUSINESS COORDINATES1.3. ENTREPRENEUR’S NAME & COORDINATES1.4. START UP DATE1.5. SECTOR OF ACTIVITY

2. BUSINESS PROFILE2.1. MISSION STATEMENT2.2. LEGAL ASPECTS2.3. PRODUCT OFFERING

3. MARKET3.1. MACRO-MARKET

3.1.1.ANALYSIS OF INDUSTRY3.1.2.INDUSTRY FORECAST

3.2. MICRO-MARKET3.2.1.IDENTIFICATION, SEGMENTATION & CHARACTERISTICS OF TARGET MARKET3.2.2.COMPETITION ANALYSIS3.2.3.POSITIONING

4. MARKETING STRATEGIES4.1. PRODUCT STRATEGIES4.2. PRICING STRATEGIES4.3. PUBLICITY & PROMOTION STRATEGIES

5. OPERATION & PRODUCTION PLAN5.1. LAYOUT & IMPROVEMENTS5.2. FABRICATION PROCESS & TECHNOLOGY USED


5.3. STOCK MANAGEMENT / SYSTEM QUALITY CONTROL5.4. SUPPLIERS

6. HUMAN RESOURCES6.1. INTERNAL RESOURCES6.2. MANAGEMENT TEAM6.3. ENTREPRENEUR’S PROFESSIONAL CREDENTIALS

APPENDIX A FINANCIAL SUMMARY

APPENDIX B MENU PRICING

APPENDIX C LOGO

APPENDIX D RESUMES


1. GENERAL INFORMATION

1.1. BUSINESS NAME & QUEBEC REGISTRATION NUMBERGroupe OZEN ASIA Inc. - 1165800880

1.2. BUSINESS COORDINATES1215 Chemin du Trembaly, Unit 135Longueuil, Quebec, CanadaJ4N 1R4

1.3. ENTREPRENEUR’S NAMES & COORDINATESDuy Nguyen Alain Nguyen809 Benjamin Sulte 250 Ivanhoe CrescentsSainte-Julie, Quebec Pointe-Claire, QuebecJ3E 1M9 H9R 3Z9

1.4. START UP DATENovember 1st, 2009

1.5. SECTOR OF ACTIVITYOZEN is a quick service Asian fusion restaurant specializing in spring rolls and delivering a healthy option.

2. BUSINESS PROFILE

2.1. MISSION STATEMENT

Our VisionTo create and cultivate a relevant generation – one man, one woman, one person and one community at a time.

Our Values Trust and Honesty Generosity and Reciprocity Family and Community Creation and Innovation


Our Product

It is and will always be, about quality. We are passionate about our products and it is through ethical sourcing and environmentally friendly choices that we strive to improve and impact the lives of the people we touch (our partners, our suppliers and our customers). We deeply care about the legacy we leave behind.

Our Partners

Because it is not just another job, it is our desire to create and to cultivate an environment of passion. We embrace diversity, a place where each of us can become ourselves. With trust, honesty, generosity and respect we will hold ourselves to the highest level of accountability and standards.

Our Customers

Through a smile or a laugh we believe we can uplift the quality of life of each and every one of our customers – even if it is just for a moment. It is more than just serving and delivering a product, it is about human connection.

Our Stores

We strive to become a haven from the worries of the outside world. An environment where one can come, and for a moment release the tension of one’s life. We endeavour to give an environment in which one can savour life as it was meant to be. It is about humanity.

Our Community

Every store is part of a community and we take this responsibility very seriously. We want to bring together all the ingredients of a community through our partners, our customers and our business. We want to contribute our part to create a thriving and active community. We want to lead in the transformation of each and every community that OZEN will set foot in.

Our Conscience

It is not simply about success but about impacting and leaving a legacy. We believe that through a high level of integrity and honesty and aligning with our own internal moral compass, we will serve our conscience and become leaders in the business world and the community. Through this standard we will become a value for our shareholders, our partners, our customers and our world.


This is Our Mission, this is Our Commitment, and this is Our World.

2.2. LEGAL ASPECTS

Permits required: Incorporation $600.00 Restaurant Permit $277.00 per year Construction Permit $2,000.00 onetime fee

The permit for location occupation is included in the lease with Intercom Immobilier.2.3. PRODUCT OFFERING

Please see Appendix B for a detailed list of items offered and pricing range.

3. MARKET

“Regardless of their prior activity, convenience and low average check size make quick-service restaurants and retail stores are the most popular destination for busy and hungry Canadians. These destinations account for 73% of total restaurant traffic. When people stop at a restaurant on or from their way to work, 95% visit a quick-service restaurant while just 5% stop at a full-service restaurant.” (Canadian Restaurant Foodservices Association –CRFA-)

3.1. MACRO-MARKET

The food service industry is a dynamic and vibrant sector of the Canadian economy, totalling a projected 59 billion in sales in 2008, which would represent 3.9% of Canada gross domestic product (GDP), according to the Canadian Restaurant Foodservices Association (CRFA). The food service industry is one of the largest employers providing over 2 million jobs to Canadians.

3.1.1.ANALYSIS OF INDUSTRY

FOOD SERVICE STATISTICS FOR THE PROVINCE OF QUEBEC (Statistic taken from CRFA & Stats Canada)

Annual Sales 2007 $9.1 billion Share of Quebec provincial GDP 3.8% Number of Employees 247,700 Food Service share of provincial workforce 6.4% Independently owned and Operated in 2006 70% Average Pre Tax Profit (% of operating revenue) 4.6% Bankruptcy Rate 1.3% (highest in Canada)


3.1.2.INDUSTRY FORECAST

According to the August 2008 CRFA forecast on the economic situation of the food industry, limited or partial service restaurants should see a decrease of 1.8% in sales for 2009 as compared to 2008 as seen in figure 1.

CRFA Canada Food Industry Forecast 2009 /20082009 Forecast (Millions of Dollars)

% Change 08 / 07

Full service Restaurant $20,956.5 -3.1%Limited service Restaurant $19,147.0 -1.8%Contract & Social caterer $3,780.3 -3.0%Pubs, Taverns & nightclubs $2,304.2 -2.6%TOTAL COMMERCIAL $46.188.0 -2.5%

Figure 1

It is expected that the popularity of Asian Food will continue to increase especially in the realm of limited service counters, as can be demonstrated by the fast growth of Sushi Shop, Thai Express in the past two years.

OZEN ASIA is blending North American and Asian cuisines; a combination that would allow OZEN ASIA to quickly adapt to the ever changing and newly emerging market trends, thus positioning itself and its product line to sustain longevity. A great product will endure the test of time.

ENTREPRISE’S STRENGTHS ENTREPRISE’S WEAKNESSES Proven Leadership. Existing knowledge of area. Partnership with Zen Asia Restaurant. Existing clientele (through ZEN ASIA) Strategic location. Product & Service Innovation. Competitive pricing.

o New market.o Qualified Staff.o Not yet a brand name.o New concept market.

INDUSTRY OPPORTUNITIES INDUSTRY THREATS Food and Service is a vibrant economy. Government wants to stimulate new

businesses.

o Highly competitive environment.o Decline in forecasted growth (-1.8%).o Economic recession.

Figure 2


3.2. MICRO-MARKET

3.2.1.IDENTIFICATION, SEGMENTATION & CHARECTERISTICS OF TARGET MARKET

OZEN ASIA will be targeting the quick service market with two different clienteles generating revenue: the lunch hour crowd and young families.

OZEN will specifically aim at the 25 to 44 young professional age group with a minimum household income of $45,000.00 annually.

TERRITORY COVERED

According to Statistics Canada in 2005, 30% of the population of Longueuil was made up of individuals 25 to 44 years of age, with a median household income of $49,973.00.

OZEN ASIA will be situated at the centre of the Longueuil commercial district, with a population density of 1,151 persons per square kilometre, and in the vicinity Pierre-Boucher Hospital, the Court of Justice of Longueuil, three Federal office buildings, l’Ecole des Metiers d’Arts, as well as many other financial institutions and offices.

In addition, OZEN ASIA will be located in the same building as over 50 staff offices of the Pierre Boucher Hospital.

3.2.2.COMPETITION ANALYSIS

There are multiple restaurants within 5 km of the location of OZEN ASIA, only a few will be direct competitors of OZEN ASIA. Harvey’s, Sushi Shop, Presse Cafe and Valentine are the principle competition of OZEN ASIA within the market region.

Figure 3 shows an overview of strengths and weaknesses of each competitor.

Name Location Product Price Strengths WeaknessesPresse Café

- Sandwiches lunch menu

Affordable Lots of choice Known name

- No niche Market

- Only lunch menu

Sushi Shop Sushi Rolls Maki Rolls Niche market Delivery Service Established

name

- Not for everyone

- Mainly evening


Evening Business

customers- Very restricted

market- Higher price

Harvey’s -Sandwiches-French Fries-Onion Rings

Established name

Very Competitive Price

- Bad reputation for health

- No specialty product

Valentine -French Fries-Sandwiches

Established name

Competitive Price

- No specialty product

- Bad reputation for health

Figure 3

All 4 are partial service restaurants require minimum staffing.

Presse Cafe’s main service market will be centered on lunch hour during a 7 day week, with a variety of choices on their menu. However they are often associated with a cafeteria style concept which may not be able to cater to the residential sector. The opening date for Presse Café has not been confirmed.

Sushi Shop has been open for just over a year and is doing extremely well. They are benefiting from a niche market, catering to a very select clientele looking for asian food at a low cost and quick service. They have also introduced a delivery service which has made their evening service extremely profitable.

Harvey’s is an established franchise competing against McDonald’s and Burger King, serving mainly burgers and fries, which according to CRFA are the most popular items in a quick service counter restaurant. Their high volume of sales offsets their extreme low price.

Valentine has opened its doors in January 2008. The brand has already an established name within the province of Quebec. It will be gathering the same market corner as Harvey’s. There is presently not enough information to be gathered to properly speculate on the success of this franchise.

3.2.3.POSITIONING


OZEN wants to be identified by the community as a healthy alternative while still providing the quick and friendly service associated with the fast food industry.

OZEN will distinguish its service from the competition’s by developing a relationship with its customers. This will be accomplished by employing several methods (such as keeping digital records of personal orders and customer’s information, thus facilitating future orders, and continuous training of staff on customer service excellence).

4. MARKETING STRATEGIES

4.1. PRODUCTS STRATEGIES

OZEN will provide fast, fresh, innovative high quality products to its customers at a very competitive price. OZEN will be producing and distributing Restaurant Zen Asia recipes and sauces. Restaurant Zen Asia’s product has proven its originality and quality and has been an ongoing success in its community for the past 6 years.

OZEN has also partnered with Land of Thousand Hills, a well established fair trade coffee producer. This partnership will enable OZEN to become a distributor and reseller of this brand in the province of Quebec.

4.2. PRICING STRATEGIES

OZEN compared the surrounding competitors’ price with the current pricing of Restaurant Zen Asia and found that Restaurant ZEN ASIA’s price was competitive at an average of $10.00 per customer. Therefore OZEN will basing its pricing structure on that of Restaurant Zen Asia.

To provide better value to its customers OZEN will introduce trios and combos. In addition, a loyalty program and corporate group discounts will be implemented.

4.3. PUBLICITY & PROMOTION STRATEGIES

Type of Pub / Promo Date CostDirect Mail October 01 2009 $2500.00Webpage/web advertisement September 01 2009 $1500.00Loyalty Card OPENING $1000.00TOTAL $4000.00


Direct mail with the Canada Post services and Internet promotion will be the main vehicles used to reach customers.

5. OPERATION & PRODUCTION PLAN

5.1. LAYOUT & IMPROVEMENTS

The chosen location was selected for its high commercial and residential traffic. Situated at the intersection of Chemin du Tremblay and Rue Adoncour in the Longueuil region, it will benefit from the proximity to Pierre Boucher Hospital and the Adoncour residential project. The Justice court and other institutions will also provide excellent source of potential customers.

The location is in a new building that will open for occupancy on August 1st 2009. OZEN has retained the services of Archinfin Architectural for the conceptual development of the interior design. The project is estimated at $110 per square foot and a total surface of 1495 square feet thus a value of $140,000.00.

5.2. FABRICATION PROCESS & TECHNOLOGY USED

Fabrication Process Flowchart

Equipment Actif To be acquired CostDishwasher - $1,000.00Fridges / Ovens / DFryer $6,650.00Freezer $2,745.00Microwaves $3,275.00Counters $5,500.00


Receivable Pre-cooked food will be purchased from Restaurant ZEN ASIA.Coffee purchased from Thousands Hills Coffee

Food PreparationPreparing Rolls Ingredients preparationSetup

Distribution Clients purchase

Tables/Chairs $4,5000.00Pots/Pans/Utensils/Misc

$6,000.00

Hot Oven $3000.00Technology Table

5.3. STOCK MANAGEMENT / SYSTEM QUALITY CONTROL

Stock management system will be conducted manually. Receivable and shipping are managed through a checklist and updated on a daily basis by staff member. The checklist and database can be accessible by using Google APPS for business to allow for remote access to the information. This application cost $50 per user per year. Audits will be performed by management staff on a monthly basis to ensure veracity and quality of the process.

Other software used by OZEN is simply accounting. This tool enables the corporation to track cost of goods on a real-time basis.

5.4. SUPPLIERSThe suppliers of food will be:

Coca Cola Canada Inc. (Canada) Restaurant Zen Asia Inc. (Quebec) Thousand Hills Coffee Inc. (USA)

Food and auxiliary supplies will be purchased at difference location with Costco and Kim Phat being the primary provider for food supplies.

6. HUMAN RESOURCES6.1. INTERNAL RESOURCES

POSITION HIRING DATE SALARYSTORE MANAGER AS REQUIRED (FULL TIME) $ 38,000.00 / yearSHIFT LEAD OCT.2009 (FULL OR PART TIME) $ 9.75 / hourROLLER MID-OCT.2009 (FULL OR PART TIME) $ 9.25 / hourASSISTTANT-ROLLER MID-OCT 2009 (FULL OR PART TIME) $ 9.25 / hourKITCHEN AID MID-OCT.2009 (FULL OR PART TIME) $ 9.25 / hourMISC. EMPLOYEE MID-OCT.2009 (FULL OR PART TIME) $ 9.25 / hour


6.2. MANAGEMENT TEAM

6.3. ENTREPRENEUR’S PROFESSIONAL CREDENTIALS

Alain Nguyen: He has been operating and managing Restaurant Zen Asia for the past 5 years under the tutelage of a 20 year experienced entrepreneur (Nguyen Xuan Thai Lai). During this time he has developed excellent customer service and leadership skills.

Duy Nguyen: For the past 10 years, Duy Nguyen has been developing his leadership and management skills in the engineering field. He has been able to participate in multi-million dollar projects and lead multi-disciplinary teams to success. Most recently, Duy Nguyen has been the Engineering Manager for a multi-national company with a team of 2 engineers and 5 draftsmen, receiving high praise for his leadership and management aptitudes. He now steps into a new role, bringing with him a wealth of management knowledge, and will be working under the tutelage of Nguyen Xuan Thai Lai.


CEOChief Executive

OfficerCFO

Chief Financial Officer

CONTROLLERACCOUNTANT

VP OPERATION

BUSINESS DEVELOPME

NT MANAGER

REGIONAL MANAGER

STORE MANAGERSHIFT LEAD

ROLLER ASSISTANT ROLLER KITCHEN AID MISC.

EMPLOEE

VP Human Resources

COMMUNITY INTEGRATION MANAGER

STAFF COACHING MANAGER

VP MARKETI

NG

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