InternationalBusiness Plan
Event
Sullivan’s SteakhouseGourmet Restaurant
Upper Merion Area High School DECAUpper Merion Area High School
435 Crossfield RoadKing of Prussia, PA, 19406
David Galban
January 27, 2012
i:
Table of ContentsI. Executive Summary
.1II. Introduction
2III. Analysis of the International Business Situation 4
A. Economic, political, and legal analysis of the trading country 41. Description of the trading country’s economic system 42. Description of the trading country’s governmental structure and stability 63. Description of laws and agencies that affect the business 7
B. Trade Area and Cultural Analysis 91. Geographic and Demographic Information 92. Market Segment Analysis for the Target Market 113. Analysis of the Potential Location 13
IV. Planned Operation of the Proposed Business 14A. Proposed Organization 14B. Proposed Product/Service 18
1. Details of the product/services to be offered 182. How the product/supplies will be transported from the home country 19
C. Proposed Strategies21
1. Proposed pricing policies 212. Proposed promotional program 22
V. Planned Financing25
VI. Bibliography27
VII. Appendix29
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I. Executive SummarySullivan’s Steakhouse, a brand of Del Frisco’s Restaurant Group, is a popular chain of restaurants
throughout North America. Appealing to most demographics but specifically tailored to the uppermiddle class, Sullivan’s has been nationally recognized and awarded. It currently has approximately 20locations throughout the country. Though it is nowhere near saturating the domestic market, we feel thatnow would be a good time for it to expand into the international market and thereby raise its customerbase by millions.
The best location for us to begin our international campaign would be New Zealand. NewZealand has recently been decentralized and now has one of the most liberal, free, and developedeconomies in the world. It is renowned for its ease of doing business and particularly for starting upboth foreign and domestic corporations.
New Zealand is famous for its cuisine, its beautiful geography, and its history and people. It ishas been traditionally a place full of rugged people, but now these pioneer spirits have settled down a bitand are embracing the world of high culture. Tourists also take advantage of the culture that NewZealand has to offer, as millions of foreign visitors come to New Zealand each year.
While in New Zealand, Sullivan’s would follow the conventional wisdom that the chainestablished in the United States, while modifying itself to suit local needs. New Zealand allows overseascompanies to form as subsidiaries that obey New Zealand law, which is less strict than that of the UnitedStates. If we are to enter New Zealand, we shall do so as a subsidiary, but with a completelyinterlocking executive with the parent company. Though we would not be a franchise, we would workas a chain throughout New Zealand with many qualities of a franchise, including manager flexibility andquicker response to local issues. In total, we would expect to establish four restaurants up and down thetwo main islands of New Zealand. These would be in the four main cities: Auckland, Wellington,Cbristchurch, and Dunedin. In this way we can expect to attract the largest number of customers.
Using calculations about local prices and wages, we have predicted that this venture will be avery profitable one indeed. Assuming a start-up fund of $300,000 NZD provided for by the parentcompany, we can expect a profit of about $578,000 during the first year alone. Over the course of threeyears, we have determined that this profit will increase by approximately 378%.
In conclusion, we have determined that this proposal would be in the best interests for DelFrisco’s Restaurant Group, and we strongly suggest and thank you for your support.
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II. Introduction
Cultural sophistication. Natural beauty. Pleasant people. These are the words that come to mind
when one thinks of New Zealand. New Zealand, a small country situated in the Southern Pacific, is a
beautiful nation of the 21st century, fully modernized and developed. The economy has grown
significantly in the past few decades and it represents a high-income region of the world. It is a
wonderful location to establish a business. And that is why, to the above list, we wish to add: Sullivan ‘s.
Sullivan’s Steakhouse is an American chain of restaurants owned by Del Frisco’s Restaurant
Group and is well-known and loved by its customers. We specialize in gourmet food items, primarily
steaks, seafood, and other meats. We are recognized for the quality of our food, not to mention large
portions. We are also famous for our friendly service and the sophisticated atmosphere in our
restaurants, which entices the business world, the cultural world, and the modern world all to dine at
Sullivan’s. Basically, we service anyone who wants to have good food and a good time in a good
atmosphere.
Currently Sullivan’s is privately owned, but that has not stopped it from expanding nationally. We
are in areas as diverse as Chicago, Anchorage, and Tucson. In each of these locations and at the national
level we have been awarded for our excellence, and high rates of customer satisfaction make it clear that
the public is quite fond of us. This has provided us with the capital and inspiration to expand. And
while we certainly do have enough space in the United States to continue growth, having a total of only
about 20 restaurants, we feel as though we are ready for an international market. This will allow us to
service millions more as well as establish a global reputation for high quality, which will certainly be
advantageous for any business, foreign and domestic. New Zealand is the ideal location to begin this
campaign. There are many reasons as to why this is so. Among these are:
)AVID M GALBAN Sunday, April29, 2012 11:20:35 AM ET
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• New Zealand is business-friendly. New Zealand has been ranked third in the annual Ease
of Doing Business ranking by the World Bank, behind only Singapore and Hong Kong and
ahead of the United States. It is easy and cheap to begin operations, taking less than a day
and costing only about $150 NZD. In addition, it has moderately low corporate taxes and
the registration process for intellectual property is simple and straightforward. Finally one
of the greatest beauties of New Zealand is its few restrictions on trade. It is fairly easy for
an international corporation to establish itself in New Zealand, and domestic agriculture
enables us to avoid having to work with customs and tariffs.
• New Zealand is culturally similar to the United States. While it is true that both have
very unique national identities, it cannot be denied that both New Zealand and the United
States come from the same Anglo-Saxon tradition. Both value reasoning and intuition,
both have concern for civil liberties and economic freedom, both have representative forms
of government, and both have approximately the same tastes in Western cuisine. This will
allow for ease in starting operations and there will be far less culture shock than there
might be elsewhere. This explains why we would not begin operations in a place like
Singapore. Though they are first in terms of ease of doing business, their culture is far
different from that of the United States, and we would have a more difficult time adjusting
our policies to suit this new cultural climate.
• New Zealand’s economy is driven by tourism. New Zealand is among the most popular
tourist destinations in the world. Millions of tourists pass through the airports of New
Zealand each year, and many of these tourists are from the United States. By servicing
New Zealand, we can service those tourists who are searching for American cuisine. In
addition, we modify our menus to cater to those who want traditional New Zealand fare as
well.
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This plan was compiled through research of a good deal of sources. A good deal of information on
New Zealand could be found through government agencies online. In addition, through the web pages
of various companies, it was relatively easy to determine probable costs of rent, supplies, and other
necessities needed to properly conduct a food service business.
As a general note, unless otherwise indicated, all monetary figures throughout the plan will be
expressed in terms of New Zealand Dollars (NZD.)
III. Analysis of the International Business Situation
A. Economic, political, and legal analysis of the trading country
1. Description of the trading country’s economic system
Historically, New Zealand has generally had a very centralized economy. Much of industry was
state-owned, and the private sector was relatively small. However, within the past twenty years, much
has been done to liberalize the economy and make it more based on service industries rather than those
of manufacturing. What was once a primarily agrarian economy is now a decentralized, industrialized
free market, ranked third in the world for ease of doing business by the World Bank.
The economy is the 68th largest in the world, with a GDP of approximately $135.9 billion.
However, after the financial crisis, economic growth has been minimal, with only 2.1% growth observed
in 2010. The GDP per capita is approximately $33,000, which ranks New Zealand 51st in the world in
terms of PPP. Moreover, the current labor force is comprised of 2.333 million people, 7% working in
agriculture, 19% in industry, and 74% in the service sectors. Unemployment has always been low,
typically far less than it is in the United States, though today it is relatively high with 6.5% of New
Zealanders currently considered unemployed. Still, this means that 93.5% of those wanting work have
it, which does create a large source of disposable income.
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New Zealand is a country already established as an international trader. In 2010, exports were
estimated to be approximately $38.6 billion, and imports were at $35.7 billion. The most common
exports included dairy, meat, wood, fish, and machinery, and the most common imports were vehicles,
machinery, fuels, and plastics. Its four largest trading partners were Australia, China, the United States
and Japan. Currently few restrictions or tariffs are place on international trade, besides New Zealand’s
restrictions on foods and plants for fear of biological contamination. New Zealand has already
established several free trade agreements, the most important one being with its largest trading partner,
Australia, through the Closer Economics Relation Agreement of 1990. Currently foreign investment is
at $84.9 billion, with many international companies already doing business in New Zealand.
The infrastructure of New Zealand is well established. The cities of New Zealand are connected
with 93,748 kilometers of roads, and 65.4% of these roads are paved. There are also extensive railways;
the largest rail is the state-owned KiwiRail. The number of airports in New Zealand is in the hundreds,
the largest and busiest being the international airport in Auckland.
Taxes make up a significant portion of the GDP, and in fact the tax rates in New Zealand are
relatively high. There is a goods and services tax (GST) of 15% and a corporate tax of 28%. In
addition, minimum wage is currently set at $13 per hour.
Of course, what is perhaps the most important part of the New Zealand economy, at least for us,
is the tourism sector. In total, 2,582,935 foreign tourists visited New Zealand in 2011, the vast majority
coming mainly from Australia, the United Kingdom, the United States and China. Currently,
international tourism is increasing at a rate of 2.5% per year and naturally is a predominant portion of
the New Zealand economy. This of course works in our favor. As a restaurant, we can naturally appeal
to the tourist who seeks respite from the exotic and wants comfort in familiar foods, but also the daring
tourist who wants to fully immerse himself in the New Zealand culture. Tourism, it could be said, will
be our lifeblood in New Zealand, and it is essential that we appeal to that market.
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________ ___________________—
2. Description of the trading country’s governmental structure and stability
New Zealand is a parliamentary monarchy and, along with many other former British colonies, is
a member of the Commonwealth. As such, the reigning queen of New Zealand is Elizabeth II, who
serves as the head of state. Given her geographical distance from the country, however, she is
represented in New Zealand by the Governor-General, who is appointed by the queen following the
advice of the Prime Minister, and serves a five-year term. Both the queen and the Governor-General,
while important to the governmental structure, have little to do with any laws that are passed. Rather,
they sign laws already created into existence, and as such, serve as little more than a rubber stamp.
Legislature in New Zealand originates in a unicameral Parliament. Parliament is comprised
solely of the House of Representatives, which most always has 120 members, each of which receives a
three-year term. All citizens of New Zealand aged 18 or older are able to vote for ministers, and each is
given two votes: one for a local representative and one for a party. In this way, the New Zealand voting
system is a combination of the American and British forms. The most recent elections took place in
2011, which led to a 121 member House, with 60 seats going to the National Party, 34 to the Labour
Party, 13 to the Green Party, 8 to New Zealand First, 3 to the Maori Party, and the rest being distributed
among smaller parties.
The government is led by the executive branch, which consists of the prime minister, a Cabinet,
and the public sector. The Cabinet is made up of specialized ministers who work with legislation and
with the prime minister. Currently, the prime minister of New Zealand is John Key from the national
party. With a background in business and entrepreneurship, Key liberalized much of the very
centralized economy of New Zealand and worked to create the free-market state that it is today. As
such, his term seems beneficial to our business.
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A third branch of government, the judiciary, manages the court system. It is similar to the U.S.
judicial branch in that there is a hierarchy of courts, judges are supposed to stay politically neutral, and
they interpret law through the process ofjudicial review.
While New Zealand doesn’t have a Constitution in the form of one document like the United
States does, they do possess a constitution, which consists of several key laws passed by Parliament
concerning the structure of government. As such, they can be effectively referred to as a constitutional
monarchy.
The parliamentary system in New Zealand seems well-established and stable. Originating as a
British colony, New Zealand inherited a tradition of representative government and civil liberties. As
such, there has been a parliament in New Zealand since it was granted autonomy. By 1893, universal
suffrage was attained for both sexes, indicating its long history of democracy. A slight change was
made in 1996 to parliamentary structure, however, which replaced the traditional two-party political
system with a mixed-member proportional system, meaning that parties earned seats depending on the
proportion of votes they obtained.
In terms of business management, the New Zealand government maintains a largely laissez-faire
approach. Most of the industry that had been previously owned by the state has now been privatized,
and this has led to improvements in the economy. Outside of taxation, government registration, and
slight limitations on sales and businesses, the government now conducts little regulation.
In at least one index, New Zealand government has been ranked as the least corrupt in the world.
It is a government that we can trust, a government that should be a pleasure working with during our
operations in New Zealand
3. Description of laws and agencies that affect the business
The World Bank ranks New Zealand third in its annual Ease of Doing Business Index. This is in
part due to the limited government involvement in the economy. Most laws limiting trade and business
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concern consumer welfare. Perhaps the most important law in this respect is the Fair Trading Act. This
is designed to ensure competition in the marketplace in addition to protecting the rights of the consumer.
In general, it works to eliminate misleading information in terms of promotions, advertisements, and
pricing. For example, we would not be able to make faulty claims in any of our commercials or say
anything that might be considered deceptive, such as leading customers to believe that any prizes we
might offer them are worth more than they are or that we are offering them a huge discount when in
actuality that is not the case. Of course, these are actions that we would not consider in the first place.
Other consumer rights laws, such as the Consumer Guarantee Act, require that products do what they are
designed to do and are not faulty.
In order to set up our business, we will need to comply with the wishes of the Ministry of
Economic Development. We will need therefore to sign up for the national register and register any
trademarks or logos, though these processes are cost-efficient and easy. In addition, any restaurant in
New Zealand must comply with the Food Hygiene Regulations of 1974 and the Food Act of 1981,
which stipulate certain requirements for pest control, kitchen size, hand washing, among other things.
They also require that we have a Certificate of Registration, which guarantees that we comply with these
health regulations and without which we are not legally allowed to operate.
Inland Revenue has recently changed corporate tax rates. Currently it is set at 28% of profits,
which we would not be exempt from even during our first year. During each fiscal year, we would be
required to file a return, in the month of our choosing. However, any year in which we have a net loss,
we would not be required to pay any taxes, and in fact the loss would be added to the next year’s tax
returns. For instance, if one year we lost $30,000 and the next year we had a $30,000 profit, we would
end up paying no taxes for either year.
While not a government institution, advertisements in New Zealand are regulated by the
Advertising Standards Authority, and it would be in our best interests to abide by their standards.
VID M GALBAN Sunday, April29, 2012 11:20:35AM ET
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•V
V.- V -— - -V -
______ __________________
Among some of their requirements for the food industry are that advertisements do not promote an
inactive lifestyle, all nutritional facts are accurate, andV V
a.wRw ,L€r4; .ini K,nars.V
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SOUTH PACIFiC that the amount of food depicted is not excessivelyOCEA N
large.
As one final regulation, there are certain daysWhangarei
North during which most businesses are not allowed toAuckland V
island
-amilton raurarga operate in New Zealand. These include Christmas,
Thsman Sea ) Good Friday, and Easter Sunday. Additionally, on aNamerPalmerston
V Norms •iV• local holiday referred to Anzac Day, we would not be*WELLINGT0NNson
allowed until 1:00 p.m.Southisland B. Trade Area and Cultural Analysis•cThnstchurch
4.oi.kp-4,oi( Cx%
1. Geographic andV Duredn 1 Demographic Information•lnvercargill
New Zealand is an island country situated in• .,ni. V
PACIFICOCEAN the Southern Pacific, approximately 1000 miles
southeast of Australia. The total area is 267,710
square kilometers, which is 76 in the world in terms) Pit) 2CtOki0 lOt) t)&rn
of size. Most of the land is on two main islands,—V
referred to as the North and South Islands. There are also a few smaller islands and territories owned by
New Zealand, such as the Cook Islands, the Auckland Islands, and the Three Kings Islands. Total
coastline reaches 15,134 km.
Geographically, New Zealand is very mountainous, and despite its small size, there is much
variation in terms of altitude. At its lowest point, the land reaches sea level. The highest, Aoraki-Mount
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Cook, is 3754 meters above that. Despite this, approximately two thirds of land in New Zealand is
arable, which is reflected in its moderately large agricultural sector and its large annual harvests.
New Zealand is not large enough for there to be a significant change in climate as one travels
from north to south. Rather, much of the climate’s variation results from the mountainous terrain and
much of the significant weather patterns occur in the east to west direction. Below is a chart showing
the general temperature and rainfall rates for the four principle cities of New Zealand:
CityAucklandWellingtonChristchurchDunedin
January High
( °C)23.322.518.920.3
July High (°C) Rainfall (mm)14.5 1331
11.3 643
9.8 765
11.4 1447
Demographically speaking, New Zealand is a very diverse nation and has a many different
peoples. As of the last census in 2006, there were 4,027,947 permanent residents in New Zealand, with
it estimated that there were about 4.3 million by 2010. Originally a British colony, 77.6% of the New
Zealand population descends from European roots. There is also a strong minority of indigenous people
in New Zealand, the Maori, who make up 14.6% of the population. Other ethnicities hail from the
Pacific (6.9%) or Asia (9.2%). The most common languages that are spoken are English, as well as
Maori, in which 4.1% of the population is fluent. This predominant usage of English prevents really any
language barrier and establishes a common ground for our American and New Zealand operations.
The New Zealand population is well educated, with a current literacy rate of 99%. However,
they tend to prefer their ‘Kiwi ingenuity,’ using common sense and self-reliance to solve problems. This
connects to New Zealand ideals of masculinity, which traditionally has supported toughness, though this
image is in decline. Still, contending with the mountainous terrain has over the years instilled a sort of
ruggedness in the New Zealand identity. This can be seen in the fondness for rugby and in the still
sizable farming community.
VID M GALBAN Sunday, April 29, 2012 11:20:35AM ET
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New Zealanders enjoy nature and have worked to preserve the ecology of the islands. Popular
pastimes include kayaking and hiking. The natural beauty of New Zealand and the potential for
adventure have always been a draw for both the residents and the tourists.
Nevertheless, New Zealand has become modernized and more metropolitan. Today there is a
segment of New Zealand life that is high society, one of gourmet cuisine and haute culture. The
emergence of this mode of life is certainly beneficial to our restaurant, and we shall have the easiest time
catering to this group.
Utilizing this information, as well as knowledge of our current American operations, we have
been able to produce a list of our advantages and our disadvantages against our competition while in
New Zealand:
Competitive Advantages:• Highqualityfood• Large portions encourage repeat customers and customer satisfaction• “Chain” structure allows increased revenue and profit• Afready well-established in the United States and can rely on previously successful methodsCompetitive Disadvantages:• Less brand-name recognition• Less establishment in the area and less understanding of regulation
Hopefully as we continue to spend more time in New Zealand, the list of disadvantages will
grow less and less significant.
2. Market Segment Analysis for the Target Market
Our restaurant, while appealing to a wide variety of people and tastes, offers dishes that may be
financially out of reach for the average American citizen on most days. In New Zealand, which has an
average per capita income of about 68% of that of the United States, this should be expected to be the
case as well. Nevertheless, this income is on the rise. In addition, a mere 6.6% of the New Zealand
population is unemployed, allowing for greater occurrences of disposable income and for a broader
target market.
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In the United States, Sullivan’s restaurants, while a national brand that spanned the entire
continent, were not all that common, located mainly in metropolitan areas or in those with high degrees
of affluence. In New Zealand, we will stick to a similar policy, most probably only establishing
locations in four major cities, those being Auckland, Wellington, Christchurch, and Dunedin, which in
addition to being among the largest cities in New Zealand are also geographically spread out among
both islands and are relatively distant from each other, which would ultimately allow for the highest
potential market. in addition, these are prime tourist destinations, particularly for international tourism,
which comprises a large portion of the New Zealand economy.
New Zealand had a total of 2,582,935 foreign visitors in 2011. Of these, the top three visiting
countries were Australia, with 1,284,617 tourists, the United Kingdom, with 231,764 tourists, and the
United States, with 184,228 tourists. Many of these enter New Zealand through the airport at Auckland.
Further, these are vacationers, and as a general rule, have sufficient funds to afford our cuisine. In
addition, New Zealand and all three of these touring nations share a culture with a common Anglo-
Saxon background. Similar restaurants to ours have appealed to these similar cultures in the past and
have had much success. Given our high quality, we should expect to do the same.
Let us now attempt to describe our potential market. Given our broad appeal, we do not have
one average customer, but in fact many. One is the fairly well-off, upper-middle class man and woman
with a taste for high society. They are generally older, and wish to enjoy the rest of their lives. Then
there is the young executive or salesperson, who is just entering the world of business and frequently
needs a sophisticated restaurant in which to have a power lunch. There is the common man and woman,
in their thirties or forties, single or married, who has need to celebrate and wishes to indulge themselves.
Finally, there is the tourist of any age who wants a taste of home while at the same time experiencing a
foreign culture. New Zealand has ample amounts of all of these: all free-market societies have produced
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II
wealthy citizens, recent privatization has led to an increase in the need for managers, and more than two
million foreign tourists visit the nation annually
Most fortunately for our business, the frequency at which New Zealanders eat their meals at
restaurants has been on the rise. Further, one of the appeals of the islands to the tourist community is
their cuisine. Given that part of the tourist experience is doing as the natives do, we can expect a high
frequency of tourist diners at restaurants as well. Or, if they wish to be comforted by familiar brands,
the national level of the Sullivan’s brand should of course be enticing. All of this, of course, makes now
an ideal time to establish a presence in New Zealand.
3. Analysis of the Potential Location
According to the World Bank’s Ease of Doing Business Ranking, New Zealand is ranked first for
starting business. The reasoning behind this is evident in the level of documentation required to
establish an overseas company in New Zealand: it is practically non-existent. For an international
company to register to begin conducting business, it is required only really to have a certificate of
incorporation from its country of origin or an equivalent to that. This does pose a small problem for
Sullivan’s, as its parent, Del Frisco’s Restaurant Group, is a limited liability company, rather than a true
corporation. If we wish to expand into the international market, it seems as though we may need to first
incorporate under American law. However, Del Frisco’s has recently announced its plans for an initial
public offering, which certainly seems to argue that they may be well on the way to incorporation
already.
Further, as we are not planning to import any actual products from the United States, for reasons
shown below, we do not need to contend with New Zealand Customs nor do we have to pay the
associated fees. This also eliminates worry about having to comply with biohazard regulation, a
stringent policy that New Zealand has concerning importation. Overall, this contributes to the effect of
it being rather easy to establish ourselves in New Zealand.
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One final document that we will need for operation in New Zealand is a Certificate of Registration.
We are a restaurant, and therefore must comply with health regulations. Other than that however, we do
not need to do much to begin business.
As such, once we get all of these documents taken care of we can initiate our operations. Our
initial location will be the city of Auckland, located on the north side of the Northern Island.
Auckland’s population exceeds 1.3 million residents and its award-winning international airport receives
over 13 million people annually. As it is a hub for New Zealanders as well as for tourists, it seems like
the ideal spot to launch our operations. It also has many cultural attractions, such as art gallery, a
sprawling coastline, and a multitude of festivals throughout the year. This furthers the draw that
Auckland has for both foreign and domestic tourists, and we should have no shortage of potential
customers.
We are not yet well-known in the region, and naturally we want to change this state of affairs. As
such, in choosing a property to lease
for our restaurant, we have not only
looked at size and cost, but also
visibility. One such property, at 56
Fort Street in the middle of Auckland
seems as though it might be an ideal
location. It is near several main roads,
and thus should not be hard for
customers to find. Also, at 234 square
meters (2519 square feet), it is large enough to seat a good deal of customers at once.
IV. Planned Operation of the Proposed Business
A. Proposed Organization
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JN
N
ilL-‘
Sullivan’s currently operates in the United States as a brand of Del Frisco’s Restaurant Group,
LLC, and has a chain of restaurants that are each under individual management. We wish to conduct
similar operations in New Zealand. This allows for greater product variability within each of the
individual restaurants. The restaurants we have in New Zealand do not need to have exactly the same
menus as those in the United States do, and perhaps they should not. We would thus allow usage of
New Zealand-grown goods and local recipes in addition to the recipes we use at home. Thus, while our
brand unity may slightly decline due to the differences of each location and the Del Frisco’s corporate
center may concede some power to the individual managers, these downsides will be more than
overcome by the benefits of being able to appeal to both an American and a New Zealander market,
accommodating two kinds of tourist and two kinds of local.
In respect to overseas companies, New Zealand offers three forms of registration: subsidiary,
branch, and new company. As mentioned before, we have felt it best to operate business in New
Zealand as a subsidiary. By this, we will be able to act as a New Zealand corporation, but will be
completely owned by Del Frisco’s Restaurant Group, and thereby retain our status as a private company.
In addition, our New Zealand subsidiary would be acting under less restrictive laws and taxes than
would our parent American company, and thus we could hopefully expect a greater return on our
investments than would be possible in the United States. However, the board of directors and all
executive positions will be the same for both the parent and subsidiary companies.
While we will not be a franchise per Se, we nevertheless will have a veryfranchise-esque feel.
All restaurants will be directly owned by the New Zealand subsidiary, which will hire managers for the
individual properties. However, these managers will be granted a large degree of autonomy in the daily
operations of their divisions, choosing recipes, establishing good public relations, and other such
necessities. The corporation, however, will keep charge over advertising and actual ownership, while of
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course receiving advice from the managers about local conditions. in this way, we can keep the
flexibility of a franchise without a decline in profit.
In order to begin business, we must first register our company name with the New Zealand
registry. We must then actually register as an overseas company as well. In total, this will cost
approximately $110 NZD ($85.47 USD.) After these steps are completed, we are officially allowed to
conduct business in New Zealand. At this time, we shall acquire both the needed property and cooking
materials. It seems as though we would have the greatest opportunity for growth to first lease a property
for a restaurant in Auckland, given the large size of both the city itself, as well as that of the
international airport.
For ease of transition and of general operation, we feel as though it would be best to keep an
organizational structure for individual restaurants similar to that which we have in the United States.
Thus we shall have a few key positions (the number of which per restaurant being the number next to
the title), which are explained in depth below:
• General Manager (1): The general manager will be charged with the everyday operations of the
restaurants. He or she will be responsible for the hiring of any staff that the restaurant needs,
such as waiters, cooks, and busboys. He or she will deal with any customer complaints and will
be responsible for maintaining a strong positive image for Sullivan’s. As such, it would be
beneficial, but not necessarily required, for the manager to be a New Zealander, such that they
could better relate to our newfound market. According to the New Zealand Department of
Labour, the average salary for a restaurant manager in 2008 was $52,219.
• Maître d’ (1): The maître d’ serves as the host for the restaurant and greets the diners as they
come in and ensures that they have promptly receive service. For them too it is important to
convey a strong positive image of Sullivan’s and to have the ability to connect with the
‘AVID M GALBAN Sunday, April29, 2012 11:20:35AM ET
16
customers. It would be preferable for them to be a native New Zealander. The average salary
for a maître d’ in 2009 was $38,792.
• Executive Chef (1): The executive chef is the leader of the kitchen and is responsible for the
preparation of the meals. He oversees the work of the other cooks and ensures that our food is
always of the highest quality. It would be required that the executive chef have much experience
in the culinary arts, especially in American and New Zealand cuisine. The average salary of an
executive chef in 2009 was $53,379.
• Cook (4): Our New Zealand restaurants shall have a kitchen staff that follows the traditional
brigade de cuisine, an organizational structure established for haute cuisine in the l9 century.
That being said, we will not be an overly large nor bureaucratic restaurant, and thus not every
position in the traditional scheme will be filled. We will, however, keep a sous-chef, chefs de
partie, a chef particularly dedicated to work in sauces, and some free-body cooks to work in each
of the kitchen’s individual stations. The average salaries for a sous-chef and a chef de partie in
2009 were $44,749 and $37,223, respectively.
• Waiter (15): Waiters will be responsible for taking the orders from our customers and bringing
the food to them. As these will most often be the only members of the staff that the customers
will ever see, it is required that they be courteous, outgoing, and charismatic. It would be
beneficial for our waiters to be New Zealanders. The average salary of a waiter in 2009 was
$36,238.
• Kitchen Assistant (4): These members of the staff clean up the tables and the restaurant towards
the end of the night, and thus are very rarely seen by the customers. The only requirement for a
kitchen assistant is that he or she works diligently. The average salary of a kitchen assistant in
2009 was $24,046.
17
ViD M GALBAN Sunday, April29, 2012 11:20:35AM ET
-
B. Proposed Product/Service
1. Details of the products/services to be offered
At its heart, Sullivan’s is a standard restaurant. Our menu is a la carte, with entrées, appetizers,
and desserts all being sold separately. Though we are principally known as a steakhouse, and thus
specialize in filet mignon, rib-eye, and lamb chops, we also sell seafood, such as our shrimp scampi,
poultry, and offer various sides, soups, salads, and desserts. In addition, we have an extensive wine and
cocktail list and pride ourselves on that fact. A sample page from an American menu can be found in
the appendix.
All of our meals are crafted by knowledgeable chefs, who ensure each dish the customers eat is
as delicious as the last. We also keep our portions ample, which certainly appeals to the customer and
gives us a competitive edge. These efforts have not gone unnoticed by critics. From 2000 to 2010,
Sullivan’s had been awarded the Wine Spectator’s Award of Excellence on a national level. In addition,
multiple local awards have been received, including the ranking of AOL Cities Best Steakhouse in
Chicago, Best Burger, Lunch Spot, Seafood, and Steak by CitySearch in Seattle, and the Best of Main
Line award for Best Steakhouse in King of Prussia. Such awards we wish to continue to get while in
New Zealand and wherever else we set up shop abroad.
However, at Sullivan’s we would like to consider that we are selling not just a meal, but rather an
experience. As such, we promote a positive and friendly atmosphere for the customers from the time
they enter the restaurant until the time they leave. All managers and waiters in the New Zealand
subsidiary should be instructed to establish protocol in courtesy and in promptness, so that we might
guarantee the customers that their time spent at our restaurants, which will average approximately two
hours, will be a pleasant one.
If this is to be the case, that we are in the belief that our restaurant is an experience, it makes
sense that we should make it a New Zealand experience. Hence, our New Zealand menus will offer not
18
‘AVID M GALBAN Sunday, April 29, 2012 11:20:35AM ET
I
only our classic American-style cuisine, but also traditional New Zealand food as well, particularly those
with a strong Maori influence, with traditional ingredients like fish, birds, potato, sweet potato, and
native roots and herbs, so that we can make the dining experience as authentic as possible for any
tourists. Nevertheless, this would never completely eliminate our American menus, and would provide
any tourist customers simultaneously with the sense of adventure and of home.
As will be mentioned below, everything we need to sell our products can be found already in
New Zealand, and thus the need for American imports is nil. This includes not only ingredients and
spices for our recipes, but also necessary equipment for cooking and serving. This includes
kitchenware, such as pots, pans, ovens, and refrigerators, in addition to furniture for the dining area,
such as chairs, tables, plates, and cutlery. In order to establish an authentic New Zealand atmosphere,
this would also include decor for the main dining room, such as traditional crafts, proper lighting, and
suitable coloration, all of course staying within the bounds of classy and refined taste.
Standard kitchen procedure will follow the brigade de cuisine structure as mentioned above, and
sufficient ingredients will always be kept on supply. Certain perishable foods, such as produce, will be
bought daily from local markets or food distributors, not only ensuring their freshness, but also infusing
the local economy with capital, improving public relations and increasing opportunities for customers to
dine at Sullivan’s.
19
lID M GALBAN Sunday, April 29, 2012 11:20:35AM ET
2. How the product/supplies will be transported from the home country
New Zealand has a large agricultural sector, and thus many of the ingredients that we use in our
meals can be easily produced and found on the islands. This eliminates much of our need to import
goods from the United States and keeps our transportation costs down to far below what they would be
otherwise. Additionally, by using local foods, we appeal to the tourist who wants the cuisine that New
Zealand has to offer. We are, in essence, combining New Zealand and American cuisines. Ecotourists,
who represent a large proportion of New Zealand tourists, will be particularly enticed by this, for locally
grown crops and cattle require far less preservatives and thus are more “natural.”
The four cities in which we plan to establish restaurants are in districts where the number of
farms is in the hundreds, if not the thousands. The most common crops grown were potatoes, with
500,000 tons, apples, with 482,000 tons, wheat, with 360,000 tons, and barley with 281,000 tons. There
are also sizable harvests of corn, squash, tomatoes, and carrots. In terms of total meat production, 9.65
million heads of cattle, 39.54 million sheep, and 344,000 pigs were raised. Further, the 61% of the beef,
65% of the lamb, and 51% of the mutton was exported, indicating that there is clearly a supply beyond
that which is needed by the people. We should thus be able to expect relatively low prices for all of our
food goods.
Some goods, such as certain vintages of wine, may not be available locally. Fortunately,
however, anything that we cannot find in New Zealand can most likely be found in Australia, and thus
all of our supplies can be found in a 1250 mile radius. This will appeal to our refined customers, who
prefer fine wines from all over the world.
While it was mentioned above that each city is near its own farms and thus we will generally not
have to ship goods over great distances, it may be the case that some local ingredients may be better than
others, and thus to improve our overall quality, we will ship these goods to all our restaurants. Perhaps
the quickest and most cost-efficient method of transportation that we have found is through KiwiRail, an
international rail line that services both islands. From their website, we have concluded that shipping
20
)AVID M GALBAN Sunday, April 29,2012 11:20:35AM ET
from Auckland to Dunedin, which would be the longest haul we would need to take, would cost
approximately $2,674. Enough is shipped in each delivery that we can ship with a low enough
frequency to remain cost-efficient.
In addition to ingredients, we will also need local sources of restaurant supplies. For its quality
and relatively low costs, we have determined Southern Hospitality to be an ideal provider of such
suppliers. Through them, it is possible to furnish chairs, tables, cutlery, kitchen utensils, and the like.
Further, as they have showcases in all four of the cities in which we plan to establish ourselves, we can
keep to relatively low transportation costs.
An example ofafullyfurnished Sullivan ‘.s’ restaurant
C. Proposed Strategies
1. Proposed pricing policies
Sullivan’s serves largely as a gourmet restaurant and is known for its high quality. That said,
any pricing policy would need to be able to cover our expenses and at the same time remain competitive
with other restaurants in the area and stay affordable for the average New Zealander.
lD M GALBAN Sunday, April29, 2012 11:20:35AM ET
21
The currency of New Zealand is the New Zealand dollar, which is divided into 100 cents. At the
current exchange rate, one NZD is equal to .8214 USD. This, of course, makes prices slightly cheaper
in New Zealand than in the United States, and it is this currency with which we shall conduct business.
For all of our food products that we sell in New Zealand, we would like to see at least a 100%
profit margin. That is to say that if it costs $20 for the ingredients, labor, and transportation required to
produce a meal, that meal should be sold at a minimum of $40. However, food prices should be
expected to vary region by region, with some goods being harder to find in remote places. Nevertheless,
given our menu from the United States, we can estimate that one person’s meal, on average, will cost at
least $60. This, however, doesn’t include the New Zealand Goods and Services Tax, which is a flat tax
for all goods, currently levied at 15%. Still, New Zealand has a high minimum wage of $13/hour, and
thus tipping in restaurants is nowhere near as obligatory as it is in the United States. Thus, the cost for
the consumer of a United States restaurant and a New Zealand restaurant should be approximately the
same.
Despite what may seem to be a rather high price, we still maintain a competitive edge. While in
New Zealand and in Auckland, our main competitors will be established fine dining eateries. A
quintessential representative among these would be the One Tree Grill. A simple meal there, consisting
of 300 g of beef sirloin, a side of asparagus, and a dessert of ice cream would total $37+$8+$12.5 or
$57.5, before the tax was added. It is clear that our prices keep within this range. In addition, we are
known for our relatively large portions, and thus we provide a greater value to the customer.
While we will lack brand name recognition at first, as seen below our first few weeks in New
Zealand will be introduced with a discount campaign. If we offer a 15% discount, we can still keep a
hefty 70% profit margin.
2. Proposed promotional program
Sullivan’s, having our basis largely in New American cuisine and now fusing with traditional New
22
DAVID M GALBAN Sunday, April 29,2012 11:20:35 AM ET
Zealand fare, conveys an image of sophistication, sleekness, and modernity. Naturally, any marketing
program that we conduct in New Zealand will portray us in this light. As such, it works to our
advantage to use both traditional marketing in addition to newer, more technological methods.
Our biggest difficulty in terms of marketing will be name recognition. While we are a well-
known brand in the United States, we have not yet expanded to an international market and therefore
should be new to New Zealanders. Any program we conduct, therefore, should have its primary focus
on getting our name out to the public and improving our image. As a secondary factor, we must realize
that a large proportion of our customer basis will be tourists, primarily from the United States, the
United Kingdom, and Australia. In America especially we have already achieved a brand name
recognition and any marketing that we conduct should reflect on the reputation we have established in
America in order to increase our market share of the tourist population.
During our first year, we do not plan to set up a location outside of Auckland. Therefore, much
of our promotional energy will be concentrated there. Not only does this allow us to better understand
our now smaller target market, but this is far cheaper than marketing nationally. In terms of traditional
media, we shall place advertisements in newspapers, magazines, and on television. Prime TV is perhaps
the most watched network in New Zealand, and has several different channels. The network also offers
significant discounts for local marketing rather than national, and any commercials for solely the
Auckland region can air for half the national rate.
The largest newspaper in Auckland in terms of circulation is the New Zealand Herald, which had
a circulation of 187,000 in 2008. They offer several methods of advertising that would be of interest to
us. A half-page advertisement would cost $5,020, a full page would cost $8,970, and the back cover
would cost $10,315. They also sell square centimeters of advertising space and varying rates. In
addition, we may place inserts into the paper at a rate of $62.50 per 1,000, provided we do so for at least
100,000 papers. While these would not rates we would necessarily be able to afford daily, it would
23
‘ID M GALBAN Sunday, April29, 2012 11:20:35AM ET
certainly be advantageous to utilize these resources at least in the beginning. As a tentative schedule,
approximately one week before we open our first restaurant, we will issue an insert campaign, providing
coupons for newspaper readers. Approximately two weeks after we open, we will issue an
advertisement for the back page of the paper. Subsequent advertisements will follow periodically, once
the situation is assessed. In addition, we will advertise in magazines that may appeal to our clientele.
For instance, we might place bimonthly ads in TIME, which would charge $3,805 for each half-page.
As mentioned above, we have a need to appeal to the tourist. This could easily be attained by
putting our name on travel websites, such as www.newzealand.com. In addition, each of the Sullivan’s
restaurants in New Zealand will have its own page on the central Sullivan’s website, and therefore
should come up when searched for by a search engine. We shall also use more modern social media,
such as Facebook and Twitter, which will increase our brand name recognition, entice additional
customers to dine at our restaurant through the distribution of discounts and coupons, and increase our
target market as we appeal to the younger age brackets.
In addition to these forms of marketing, we shall also work to improve our public relations. We
shall establish long-term partnerships with other companies who suit our target market. For example,
we may partner with concert halls or museums and offer a discount package. Or, to entice the tourist
market, we shall sponsor transportation services and work with travel agencies. We shall also support
local charities and community benefits, gaining the trust and recognition of the local residents.
Later, as we enter Year 2 and establish our second New Zealand restaurant in Wellington,
marketing costs should expect to increase. However, with the tourism industry encouraging domestic
tourism, which is rising at a rate of approximately 1.5%, we should expect a moderate level of brand
name recognition even before we begin our Wellington campaign. The same holds true for Christchurch
and Dunedin, but more so.
24
DAVID M GALBAN Sunday, April 29, 2012 11:20:35AM ET
V. Planned Financing
Sullivan’s Steakbouse Projected Income Statement- Year 1
Quarter 1 Quarter 2 Quarter 3 Quarter 4 YearCustomers/Night 100 150 175 200Cost/Meal $60 $60 $60 $60Revenue $546,000 $819,000 $955,500 $1,080,000 $3,400,500
Salaries $235,141 $235,141 $235,141 $235,141 $940,564Rent $26,910 $26,910 $26,910 $26,910 $107,640Advertising $15,000 $5,000 $5,000 $5,000 $30,000Utilities $2,000 $2,000 $2,000 $2,000 $8,000Ingredients $218,400.0 $327,600.0 $382,200.0 $432,000.0 $1,360,200Supplies $150,000 $0 $0 $0 $150,000Insurance $1,000 $1,000 $1,000 $1,000 $4,000Incorporation $100 $0 $0 $0 $100Public Relations $1,000 $1,000 $1,000 $1,000 $4,000Transportation $2,000 $3,000 $3,500 $4,000 $12,500Communication $500 $500 $500 $500 $2,000Miscellaneous $250 $250 $250 $250 $1,000Expenses $652,301 $602,401 $657,501 $707,801 $2,620,004
Profit ($106,301) $216,599 $297,999 $372,199 $780,496Tax $0 $30,883.44 $83,439.72 $104,215.72 $218,538.88Net Profit ($106,301) $185,716 $214,559 $267,983 $561,957
Sullivan’s Steakhouse Cash Flow Statement- Year 1
Quarter 1 Quarter 2 Quarter 3 Quarter 4Cash onHand $300,000 $193,699 $410,298 $708,297Sales $546,000 $819,000 $955,500 $1,080,000Paid $652,301 $602,401 $657,501 $707,801Cash onHand $193,699 $410,298 $708,297 $1,080,496
Sullivan’s Steakhouse Three Year Plan
Year 1 I Year 2 Year 3 I
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‘ID M GALBAN Sunday, April 29, 2012 11:20:35 AM ET
Sales $3,400,500 $7,720,500 $12,040,500Expenses $2,620,004 $5,457,608 $8,295,312Profit $780,496 $2,262,892 $3,745,188Tax $218,538.88 $633,609.76 $1,048,652.64NetProfit $561,957.12 $1,629,282.24 $2,696,535.36
We have predicted excellent returns for Sullivan’s Steakhouse over the course of the first three
years of business. In detennining revenue, we figured that it would take approximately one year for a
restaurant to reach a maximum capacity of about 200 guests a day. This number in turn was derived
from the fact that a meal takes two hours to eat at Sullivan’s. This leads to approximately 2 rounds of
customers every night for dinner in addition to our lunch guests. Thus, for each restaurant, with our
advertising campaign in effect, we’ve predicted its first quarter will receive an average of 100 customers
per day; its second quarter will receive 150; its third will receive 175; its fourth will receive the full 200.
Further, we followed the previous prediction that an average meal earns us $60 in revenue. Total
salaries were calculated from the sum of all of the previously mentioned wages. Supplies served as a
start-up fee, where we would pay for all of our tables, kitchen materials, and the like all at once, in
addition to any sort of insurance. Ingredient costs were put at 40% of food costs, recognizing that this is
subject to variation throughout the country. Likewise, advertising expenses were an approximation, but
taking into account the promotional plan mentioned above. Utilities were estimated and should be
expected to vary from the predicted value. Miscellaneous fees include such costs as registration and
legal fees. Taxation is kept at the standard New Zealand rate of 28%, however, given the tax laws
whereby taxable profit is reduce by an amount lost in a previous year, the amount of tax that is needed to
be owed in the second quarter is less than this 28%, given the loss that we will have in the first.
Our three-year plan assumed that we would be opening a new restaurant every year, which is a
very reasonable proposition. Thus, the finances for the original year would be repeated for each
restaurant until it reached its maximum suspected revenue per year. Restaurants already established26
DAVID M GALBAN Sunday, April 29, 2012 11:20:35AM ET
were assumed to keep their maximum revenue and not require further supplies. Following these trends,
we have been able to predict a 378% increase in net profit over the course of these three years.
VI. Bibliography
Auckland. Auckland Tourism, 2011. Web. 27 Jan. 2012. <http://www.aucklandnz.com!>.
Auckland Airport. N.p., 2010. Web. 27 Jan. 2012. <http://www.aucklandairport.co.nz/>.
Business.Govt.NZ. Ministry of Economic Development, 2012. Web. 26 Jan. 2012.
<http://www.business.govt.nz/>.
“Business Income Tax.” I,qlandRevenue. Inland Revenue, 2011. Web. 26 Jan. 2012.
<http ://www.ird.govt.nz,1businessincometaxAimputationJ1imputationctrchange/>.
CareersNZ. N.p., n.d. Web. 25 Jan. 2012. <http://www.careers.govt.nz/>.
“Del Frisco’s Restaurant Group Files to Go Public.” CBSDFW. N.p., 2012. Web. 27 Jan. 2012.
<http ://dfw.cbslocal.comjl2O 12/101 í124i1de1-friscos-restaurant-group-files-to-go-public/>.
Department ofLabour. New Zealand Dept. of Labor, n.d. Web. 25 Jan. 2012.
<http ://www.dol.govt.nz/1er4payilminimumwage/>.
Dharamsey, Amar, Robert Maybruch, and Konstantin Pokidyshev. International Business Plan Event:
Quality Business Solutions, Inc. N.p.: n.p., 2008. Print.
Doing Business. World Bank, 2012. Web. 26 Jan. 2012. <http://www.doingbusiness.org>.
Engler, Ben, and Rachiel Kennen. International Business Plan Event. Play It Again Sports. N.p.: n.p.,
2011. Print.
Jowett, Denise. Personal interview. 27 Jan. 2012.
KiwiRail Freight Hub. KiwiRail, 2011. Web. 24 Jan. 2012. <http://www.kiwirailfreight.co.nz/>.
Ministiy ofEconomic Development. Ministry of Economic Development, n.d. Web. 27 Jan. 2012.
<http ://www.med.govt.nz/>.
27
VID M GALBAN Sunday April 29, 2012 11:20:35AM ET
I.
New Zealand. N.p., 2011. Web. 26 Jan. 2012. <http://www.newzea1and.com!>.
“New Zealand.” CIA WorldFactbook. Central Intelligence Agency, 2012. Web. 26 Jan. 2012.
<https ://www.cia.govilibrary/publicationsi1the-world-factbookJ1geos/Inz.htm1>.
“New Zealand.” The Statesman Yearbook. Ed. Barry Turner. N.p.: Palgrave Macmillan, 2012. N. pag.
Print.
New Zealand Herald. APN Holdings, 2012. Web. 27 Jan. 2012. <http://www.nzherald.co.nz/>.
“The New Zealand Legal System.” Ministry ofJustice. New Zealand Ministry of Justice, n.d. Web. 25
Jan. 2012. <http ://www.justice.govt.nz/lpublications/lglobal-publications/Mthe-new-zealand-legal
system>.
New Zealand Parliament. N.p., 2012. Web. 27 Jan. 2012. <http://www.parliament.nz/len-NZ>.
New Zealand Tourism Guide. New Zealand Tourism Guide, 2010. Web. 27 Jan. 2012.
<http://www.tourism.net.nz/>.
Prime Commercial. N.p., 2012. Web. 25 Jan. 2012. <http://www.primecommercial.co.nz/>.
Prime TV. Prime Television LTD, 2010. Web. 27 Jan. 2012. <http://www.primetv.co.nz/>.
Southern Hospitality LTD. Southern Hospitality LTD, 2011. Web. 25 Jan. 2012.
<http://www.southemhospitality.co.nz!>.
Statistics New Zealand. N.p., 2012. Web. 25 Jan. 2012. <http://www.stats.govt.nz/>.
Sullivan’s Steakhouse. Del Frisco’s Restaurant Group, 2011. Web. 24 Jan. 2012.
<http://sullivansteakhouse.com!>.
Zagat. Zagat, 2012. Web. 27 Jan. 2012. <http://www.zagat.com!>.
AVID M GALBAN Sunday, April 29, 2012 11:20:35AM ET
28
1
VII. Appendix
CHEF’S SELECTIONS
CHILI CRUSTED RIBEYEBROILED RIBEYE 16 OZ, CHILI CRUST, ROASTEDRED PEPPER — TRUFFLE BUTTER
FILET DUXELLEBROILED WILD MUSHROOM STUFFED FILETS 02,MUSHROOM MADEIRA RAGOUT
FILET OSCARBROILED FILETS OZ, JUMBO LUMP CRABASPARAGUS & BEARNAISE
FILET & LOBSTERBROILED 6 OZ FILET, BUTTER BRAISED LOBSTER TAIL, CHIVE SAUCE
SULLY’S MEATLOAFALL BEEF MEATLOAF, HINTS OF BLUE CHEESE,HORSERADISH MASHED POTATOES, SAUTEED ONIONS,MUSHROOMS & BORDELAISE SAUCE
ROASTED CHICKEN “PICATTA STYLE”SCALLION MASHED POTATOES & LEMON CAPER SAUCE
STEAKS & CHOPS, ETC.FILET MIGNON 8 OZ/12 OZ
34/39
NEW YORK STRIP 12 OZ/16 OZ35/40
RIBEYE 16 OZ40
BONE-IN RIBEYE 22 OZ “COWBOY CUT”42
BONE-IN KC STRIP 18 OZ41
PORTERHOUSE 24 OZ45
LAMB CHOPS-TRIPLE CUT39
VEAL CHOP39
41
37
42
55
25
25
COMPLIMENTARY ICEBERG LETTUCE WEDGE WITH BLUE CHEESE DRESSINGOR
CAESAR SALAD WITH ANY ENTREE
— SAUCES
BOURBON
PEPPERCORN
SAUCE
3
MADEIRA MUSHROOM
SAUCE
3
HOLLANDAISE
OR
BEARNAISE
3
PAIRINGS —
OSCAR
JUMBO LUMP CRAB,ASPARAGUS &
BEARNAISE SAUCE
10
— BUTTERS
CABERNET
GOAT CHEESE
BUTTER
3
033011
29
ALASKAN KING CRAB
LEGS, Y LB
23
SPLIT AUSTRALIANLOBSTER TAIL, 7 oz
28
GORGONZOLA GARLIC
BUTTER
3
ROASTED RED
PEPPER-TRUFFLEBUTTER
3
f ID M GALBAN Sunday, April29, 2012 11:20:35 AM ET
5’