the dawg haus business plan final

Instructor: Andy GlazaBusiness OperationsOctober 5, 2006

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Table of Contents

1.0 Executive Summary ............................................................................................................31.1 Objectives and Goals .......................................................................................................51.2 Mission Statement ...........................................................................................................51.3 Keys to Success ................................................................................................................5

2.0 Company Overview .............................................................................................................62.1 Owners and their expertise .............................................................................................62.2 History of the Business ....................................................................................................62.3 Company Locations and Facilities ..................................................................................72.4 Description of the Business..............................................................................................8

2.4.1 How orders are taken ...............................................................................................82.4.2 Manufacturing Plan..................................................................................................9

2.5 Background of Product ...................................................................................................92.6 Description of Product ..................................................................................................10

3.0 Research and Development ...............................................................................................113.1 SWOT Analysis .............................................................................................................123.2 Service ............................................................................................................................14

3.2.1 Dedicated to Quality Service Programs: ................................................................144.0 Strategy and Implementation Summary ..........................................................................14

4.1 Marketing Strategy .......................................................................................................154.1.1 Positioning Statement .............................................................................................154.1.2 Pricing Strategy ......................................................................................................154.1.3 Marketing Tactics ...................................................................................................164.1.4 Promotional Strategy..............................................................................................16

4.2 Sales Strategy.................................................................................................................164.2.1 Sales Forecast..........................................................................................................174.2.2 Sales Programs........................................................................................................17

4.3 Milestones ......................................................................................................................185.0 Management ......................................................................................................................18

5.1 Corporate Structure Descriptions of The Dawg Haus .................................................185.2 Corporate Structure for The Dawg Haus .....................................................................20

6.0 Financials...........................................................................................................................216.1 Income Statement ..........................................................................................................226.2 Balance Sheet .................................................................................................................236.3 Cash Flow Statement.....................................................................................................246.4 Break-Even ....................................................................................................................256.5 Key Ratios......................................................................................................................25

Appendix: ................................................................................................................................26Menu ....................................................................................................................................26Sales Forecast ......................................................................................................................28Bibliography ........................................................................................................................29

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1.0 Executive Summary (Mike)

The Dawg Haus has established a successful presence in the food service industry. The

flagship location in Green Bay, Wisconsin, along with the facilities in Milwaukee and Madison,

will gross in excess of $486,000 in sales by year-end. This year’s operations will produce a net

profit of $86,000. This will be generated from an investment of $210,000 in initial capital.

Since conception of operations in 2002, The Dawg Haus has shown continuous growth and all

signs point to another successful finish to 2006.

Expansion plans are already underway for 2007. Owner funding and internally generated

cash flow will enable additional stores to open. An additional store in Milwaukee is being

looked into near the Bradley Center. Sales projections for the next four years are based upon

current planned store openings. Site surveys have been completed and prime locations for

expansion have been targeted.

Management has recognized the rapid growth potential made possible by the quick success and

fast return-on-investment from the first location. Payback of total invested capital on the first

location was realized in less than nineteen months of operation. Cash flow becomes positive

from operations immediately and profits were substantial in the first three years.

The management of The Dawg Haus has demonstrated its concept, execution,

marketability, and controls, and feels confident of its ability to successfully replicate the quick

start up of the Green Bay location to additional venues.

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Highlights (Chad)Current Forecasted

Year YearCategory 2006 2010

1. Net Revenue $1,221,300 $2,099,173 The trend in this category is positive. 2. Cost of Revenue $734,580 $1,259,504 The trend in this category is positive. 3. Gross Profit $486,720 $835,169 The trend in this category is positive. 4. Total Operating Expenses $402,974 $544,436 The trend in this category is positive. 5. Operating Profit $83,746 $290,733 The trend in this category is positive. 6. Return on Ow nership $178,622 $348,578 The trend in this category is positive.

Comments

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2006 2010

Executive SummaryCurrent vs. Projected

1. Net Revenue

2. Cost of Revenue

3. Gross Profit

4. Total Operating Expenses

5. Operating Profit

6. Return on Ow nership

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1.1 Objectives and Goals (Kerry)

The main objective of The Dawg Haus is to maintain a solid customer base through

excellent service, quality food, and an entertaining atmosphere. Through innovative promotions,

and charity events, members of The Dawg Haus management team feel that they can not only

maintain a solid regular customer base, but also bring in new customers seeking The Dawg Haus

experience.

The goal of The Dawg Haus is continued financial growth with the opening of new

restaurants in the state of Wisconsin. These restaurants will be strategically placed in the states

main sporting areas. With continued popularity of The Dawg Haus, the board of directors hopes

to, at some point, expand outside of Wisconsin and into other states. These goals and objectives

set forth will be achieved by instilling the company mission statement into all of The Dawg Haus

employees.

1.2 Mission Statement (Kerry)

Provide a quick and quality meal at an affordable price along with courteous and

outstanding service in an entertaining friendly atmosphere.

1.3 Keys to Success (Chad)

The keys to success of The Dawg Haus are:

1. The creation of a unique, innovative, and entertaining atmosphere that will

differentiate us from the competition.

2. Execution of our primary goal to serve nothing but the highest quality food at

reasonable prices in a clean, fun environment. We must deliver on this pledge

100% of the time.

3. Controlling the costs at all times in all areas.

4. Hiring the best people available, training, motivating and encouraging them,

thereby retaining the friendliest, most efficient staff possible.

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2.0 Company Overview

2.1 Owners and their expertise (Kerry)

The board of directors, who are also the owners of The Dawg Haus, have a wide and

varying level of expertise in the restaurant and service industry. The first board member obtained

a masters degree from Harvard School of Business in 1997. Upon graduation from Harvard, he

obtained the position of Director of Sales and Marketing for a nationally recognized hotel chain.

In 1999 he was promoted to vice president of that division, where he increased sales by 35%

over the next year. In 2000, he was promoted to president of the entire sales and marketing

division of the hotel chain. In 2002, he left this position to open The Dawg Haus with the help of

some associates with similar interests.

The second board member graduated from the University of Wisconsin in 1995, with a

Bachelors of Science degree in accounting. Upon graduation she moved to the state of

California, were she accepted an accounting position with a leading software development firm.

In 1998, she was promoted to Chief Financial Officer of that firm where she held that position

until 2002, when she moved back to the state of Wisconsin to pursue the opportunity of opening

The Dawg Haus with some business associates she had met over the years in her position with

the software developing firm.

The third and final member of the board of directors graduated with a Bachelor of

Science degree in the culinary arts from Brown University in 1999. Upon graduating he moved

to the state of New York were he began his career as a junior chef at popular New York City

restaurant. With his creative culinary ideas and innovation; he was soon promoted to senior chef

in 2000. Once in this position he received many local, state and national awards for his new

culinary creations. In September of 2001, he was approached about becoming the Executive

Chef of The Dawg Haus, at which time he accepted the position. In 2002, he took his position

on the board of directors of The Dawg Haus.

2.2 History of the Business (Larry and Mike)

A group of investors saw a great opportunity in 2002 by opening a hot dog establishment

near Lambeau Field in Green Bay, Wisconsin, called The Dawg Haus. Not only did the first

venture work, but also the corporation is in the process of developing their fourth store in 5

years. It seems that there was a niche by the populace for hot dogs or let’s say something other

than burgers, but not just plain hot dogs but designer dogs. The hamburger has matured to the

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point that there is nothing left to create that is new. Each of the three investors have skills, that

when combined, created the winning combination. Since starting the business started in 2002,

The Dawg Haus Corporation has opened additional stores, near Milwaukee Park, near Camp

Randall Stadium in Madison, and now plans for a store to open in 2007 at the Bradley Center.

The Dawg Haus Corporation has established a management hierarchy befitting a growing

business. The corporation has received numerous citations and awards for the most progressive

new company, and most innovative menu. The philosophy of The Dawg Haus is to provide

quality food, quality service, with a trained work force and the desire to think out of the box and

take educated chances to improve the product line and embrace change.

In an effort to capitalize on a growing demand for enhanced hotdog varieties at sporting games,

The Dawg Haus Restaurant was formed in 2002. The Dawg Haus has promoted its brand

through start up operations in Milwaukee, Madison, and Green Bay Wisconsin. Customer

acceptance has been proven by in increase in customer feedback.

The Dawg Haus Restaurant has promoted heavily with tie-ins to Wisconsin sporting teams. The

Dawg Haus Restaurant is the radio home for the live Monday ESPN Radio coaches show

featuring Mike McCarthy and A.J. Hawk. This show is broadcasted during the hour preceding

the telecast of “Monday Night Football.” The Dawg Haus Restaurant is in contract talks with the

Milwaukee Brewers to start up a similar show featuring Ned Yost and Prince Fielder, and is

investigating possible opportunities with the University of Wisconsin-Madison.

2.3 Company Locations and Facilities (Mike)

The company stores are 1500 square feet and will seat 40 to 60 persons. Each of The

Dawg Haus restaurants will feature sports memorabilia from that sporting location. Each

restaurant will be equipped with audio and video systems to enable customers to enjoy the game

while they eat. Every restaurant will be clean looking, and pleasing to the customer.

Unit locations are as follows:

Green Bay— Original unit opened in 2002. This unit is located at one of the busiest intersections

in Green Bay. It is located across from Lambeau Field on Lombardi Avenue. Surrounding the

general area is the Packer Hall of Fame, the Pro Shop, and Clarke Hinkle Field. While enjoying

a hotdog you will be able to watch the Green Bay Packers practice. What would be more

enjoyable then eating a hotdog while watching Brett Favre throw a touchdown pass to Donald

Driver?

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Milwaukee—This unit is located near Miller Park and opened in 2004. While enjoying a hot dog

before, during, or after a game, one can view the Pro Shop or test out their arm strength using the

pitching simulator. A second unit is being talked about to be located near the Bradley Center in

the spring of 2007.

Madison—This unit which is located across from Camp Randall Stadium, is an extremely

popular facility during Wisconsin Badger football weekends. Here a person can enjoy a hot dog

while walking down State Street.

2.4 Description of the Business (Larry)

The Dawg Haus Corporation was established to fill a niche in the fast food industry. It

was designed to meet the needs of the hot dog fans by not only offering the famous regular hot

dog but a large selection of gourmet quality dogs.

The Dawg Haus serves not only dogs, but also a wide variety of condiments to enhance

your dog and a wide variety of meat choices such as brat dogs, polish dogs, and chicken dogs.

The usual soft drink mix will be available, but also a good selection of dietary drinks to satisfy

those customers that need to watch their sugar intake. Coffee, milk, and tea are also available.

It is the intent of this corporation to offer an alternative to the “burger” and at the same

time offer a real balanced dietary meal by purchasing quality dogs, prepared to our specification

by a respected name in the sausage industry, and to proudly list our ingredients and their impact

on your health.

Our employees are trained to give the highest quality of service and are knowledgeable in

all aspects of the product The Dawg Haus offers.

2.4.1 How orders are taken (Larry)

Similar to most fast food establishments’, orders will be taken on the right side of the

service counter where money will be exchanged and the customer will be issued a receipt

containing the order selection and a claim number. Cups will be dispensed so the customer can

select their desired drink while waiting for their individual orders to come up. When the order is

ready, the associate on the left side of the counter will call out the claim number for the customer

to pick up.

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2.4.2 Manufacturing Plan (Larry)

Once an order is received, the associate behind the service counter will begin to assemble

the customers order based on the sales data which will be displayed on a monitor. Each associate

behind the service counter will be responsible for a certain aspect of the assembly line such as;

placing the hot dog on the bun, adding the required condiments, and making sure the meal is

properly wrapped before delivery and set on a serving container. The assembly line will have

placards or assembly instructions showing how each meal should look and what condiments

need to be on the sandwich. This will ensure that each sandwich is done the same and will

maintain quality. There will also be an associate in the rear of the kitchen who will supply the

production line with more products. It will be that person’s responsibility to make sure that there

will always be hot meat products available and also all condiments used on the line.

2.5 Background of Product (Larry)

The primary product served at all Dawg Haus establishments are know under these

aliases; frankfurters, franks, weenies, wienies, dogs, and red hots. A cooked sausage that

consists of a combination of beef and pork or all beef, which is cured, smoked and cooked, and

chicken. Seasonings may include coriander, garlic, ground mustard, nutmeg, salt, sugar, and

white pepper. They are fully cooked but are usually served hot.

The history of the hot dog goes back to the 9th century B.C. when it was mentioned in

Homer’s Odyssey, the year was 850 B.C. So this little frank has been around well before the

hamburger. History mentions Emperor Nero 64 A.D., Loentius of Neapolis, Cyprus, 7th Century.

This commentary could go on for quite a long time because it is mentioned in almost every

century. In 1893, sausages became a popular food at baseball parks. They were first introduced

in the St. Louis Browns ballpark and then spread to the rest of baseball. The term hot dog was

coined in 1901 by a sports cartoonist named Tad Dorgan. He was at the New York Polo

Grounds, where he heard some vendors selling red hot dachshund sausages. This prompted him

to draw a cartoon of a real dachshund covered with mustard on a bun. Since he did not know

how to spell dachshund he wrote on the caption "get your hot dogs." The cartoon was a hit and

the name persisted. Now days it is a favorite lunch at baseball parks, as well as many other

sporting events. It is a favorite at picnics when roasted over a fire, or just heated in a pot of

water at home. They now come with or without a skin, and the basic spices have changed to

meet ethnic tastes, and some are just made different for the audacious connoisseurs of our time.

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There are corn dogs (dogs wrapped in a pancake), chicken, turkey, and anything else you can

stuff into a skin. It is easy to see that the hot dog has been around for a long time and has not

really been given its proper due.

Today vendors push hot dog carts around selling dogs to your delight, drive-thru’s and

many establishments that offer a dog or kiddy menus that offer the dog. They have inspired

races at Miller Park in Milwaukee. In conclusion the hot dog is here to stay and now the

entrepreneur needs to find new and exciting ways to serve it and excite the customer to plead for

more.

2.6 Description of Product (Larry)

All of our franks will be made with the finest meat products and ingredients available,

and will be manufactured by the premier, world-renowned sausage manufacturer Johnsonville

Meats. Johnsonville Meats, a much respected quality orientated manufacturer in East central

Wisconsin, has agreed to be our sole supplier of all our sausages.

The sausages will be made in the same shape as a regular frank, but the ingredients

within will be the same as those found in; polish sausage, bratwurst, chicken, or any other

sausages that are, or will be offered.

The buns used will be contracted out to a local baker to assure daily freshness and to

maintain quality control by each of our establishment. There will be choices as to type of buns

from wheat, whole wheat, rye, and any other types based on customer demand.

All produce used by our establishments will be brought in daily by our produce broker

and will be prepared daily in our store kitchens. This will ensure that all of the stores will be

utilizing the same quality product.

Our soft drink beverages will be provided from a vendor that will service all of our

outlets to get volume discounts. Milk, coffee, and tea will come from contracted vendors

through our corporate office. Every effort will be taken to assure that all products used will be

manufactured in Wisconsin.

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3.0 Research and Development (Kerry)

In performing a SWOT analysis the research and development team has noticed an

opportunity for growth in the breakfast menu area of our business. Members of The Dawg Haus’

research and development team are now focusing on putting together a menu that will attract

people interested in a quality morning meal. This is being done with a focus on the menu to

capitalize on what The Dawg Haus is known for, quality sausage. With the help of our

Johnsonville associates we feel this is a profitable market well within our reach. With the

creation of a breakfast menu at The Dawg Haus we will be utilizing our assets that are currently

in place. These assets include buildings, equipment, along with our friendly courteous service, in

a fun family oriented atmosphere that appeals to everyone across the state of Wisconsin.

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3.1 SWOT Analysis (Kerry)

Strengths, Weaknesses, Opportunities, and ThreatsAnalysis

Strengths The Dawg Haus Competitor 1 Competitor 2What are your

businessadvantages?

Quick meal,affordable,atmosphere

Atmosphere Atmosphere

What are your corecompetencies?

Courteous, friendly,affordable

Friendly, vibrantatmosphere

Friendly, vibrantatmosphere

Where are youmaking the most

money?

Green Bay location,during Packerstraining camp



What are you doingwell?

Quality food in afriendly familyatmosphere

Appealing to the eyeof customer Location

What areas are youavoiding? Rural communities Rural communities Rural communities

Where do you lackresources?

Volume of productfrom our supplier High product costs Family appeal

What are you doingpoorly?

Local charity fund-raising Not child, friendly Breakfast menu

Where are youlosing money? Morning hours Families with young

children Breakfast menu

What needsimprovement?

Develop a morningor breakfast menu More child friendly Breakfast menu

Weaknesses

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Any beneficialtrends?

Local and nationallyrecognized sports

teams

Lack of qualityrestaurants

Communityinvolvement

Niches thatcompetitors are

missing?

No sausage/hot dogtype menu Breakfast menu Nationally

recognized franchise

New technologies? Upgrade localintranet

Extensive soundsystem

No handle bathroomfixtures

New needs ofcustomers? Breakfast menu Family oriented

atmosphere Breakfast menu

Obstacles toovercome?

Growth ofsurrounding areas



Aggressivecompetitors? None None None

Successfulcompetitors?

Red robin, TexasRoad House, Maz

and Erma's


and Erma's


and Erma'sNegative economic

conditions?Closing of somelocal businesses

Closing of somelocal businesses

Closing of somelocal businesses

Governmentregulation?

Health departmentguidelines need

constant attention


constant attention


constant attentionChanging business

climate?Need to constantly

upgrade product lineNeed to constantly

upgrade product lineNeed to constantly

upgrade product line

Vulnerabilities? Breakfast market Lack of child/familyfriendly atmosphere Breakfast market

Opportunities

Threats

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3.2 Service (Mike)

The Dawg Haus has created gourmet hotdogs that are superior to competitors. Customers

can taste the quality and freshness of the product in every bite.

At The Dawg Haus, food is not a product the experience is a service. The Dawg Haus prides

themselves on providing exceptional service. This is accomplished through an extensive training

program and hiring experienced employees.

The topic of quality is a critical reminder of the fact that The Dawg Haus is a service

business. The success of our business depends upon the quality of service we offer and

delivering a consistent service. The Dawg Haus is committed to delivering this quality service.

3.2.1 Dedicated to Quality Service Programs: (Mike)

We’ve gone through large avenues to find people with a passion for teaching and sharing

their restaurant experiences. Along with being both knowledgeable and eager to please,

our staff members will be on hand to provide service to all Dawg Haus customers.

Performance will be evaluated internally and through customer surveys.

A highly valued member of The Dawg Haus staff will be the “Customer Happiness

Representative.” This individual will be available forty hours a week to monitor the level

of happiness amongst customers. This individual will be responsible for developing

customer satisfaction programs, monitoring customer experiences, responding to

customer concerns, and the general well being of every Dawg Haus customer.

4.0 Strategy and Implementation Summary (Chad)

Our strategy is based on serving our niche crowd markets well. The sports enthusiast, the

business entertainer and traveler, the local night crowd, as well as families dining out all can

enjoy The Dawg Haus experience.

What began as a customized version of a standard product tailored to the needs of local

clientele can become a niche product that will fill similar needs in similar markets across the

Midwest.

We are building our infrastructure so that we can replicate the product, the experience,

and the environment across broader geographic lines. Concentration will be on maintaining

quality and establishing a strong identity in each local market. The identity becomes the source

of critical mass upon which expansion efforts are based. Not only does it add marketing muscle,

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but it also becomes the framework for further expansion using both company owned and

franchised store locations. Franchises are planned to be marketed in early 2010.

4.1 Marketing Strategy (Chad and Mike)

A combination of local media and event marketing will be utilized at each location.

Radio is most effective, followed by print media (newspaper, brochures, etc.). As soon as all

stores are more established in the local markets, then broader media will be employed and a

website will be established.

The strategy of live broadcasting of professional and college sports tie-ins has been very

effective in generating free publicity for the flagship location which has been more effective than

any advertising could have been purchased. Our goal is to make The Dawg Haus the number one

destination in the state of Wisconsin. We are concentrating on three target populations:

Individuals: people that dine in by themselves.

Families: a group of people, either friends or a group of relatives dining together.

Take out: people that prefer to eat Dawg Haus food in their home or at a different

location than the actual restaurant.

Our goal is to be an active and vocal member of the community, and to provide continual re-

investment through participation in community activities and financial contributions.

4.1.1 Positioning Statement (Chad)

Our main focus in marketing will be to increase customer awareness in the surrounding

communities. We will direct all of our tactics and programs toward the goal of explaining who

we are and what we are all about. We will price our products fairly, keep our standards high, and

execute the concept so word-of-mouth will be our main marketing force.

4.1.2 Pricing Strategy (Chad)

All menu items will be competitively priced. An average customer can expect to spend

around $5-$7 including food and drink with higher amounts expected on game days and

promotional days. Our average customer spends more than the industry average for moderately

priced establishments. We tend to believe that is do to creating an atmosphere that encourages

longer stays and more spending, but still allows for adequate turnover due to extended hours of

appeal.

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4.1.3 Marketing Tactics (Chad)

We will employ two different marketing tactics to increase customer awareness of The

Dawg Haus. Our most important tactic will be word-of-mouth marketing. This will be by far

the cheapest and most effective of our marketing programs. The second marketing tactic will be

in the local media. Radio spots, print ads, and in-store promotions will be used. This will also

be most costly and will be used sparingly to supplement as necessary.

4.1.4 Promotional Strategy (Chad and Mike)

We promote sports, sports, and more sports. The universal appeal of sports and sports

marketing has never been higher. Growth areas such as Milwaukee, Madison, and Green Bay

have an annual influx of new residents from many other parts of the country. This trend is true

throughout the Wisconsin area. Many new residents and many existing ones are fans of teams in

other markets. The Dawg Haus is a place for all. Each patron can watch his or her game of

interest. The enabling technology is the benchmark for The Dawg Haus.

Advertising budgets and sports event promotion is an on-going process of management

geared to promote the brand name and keep The Dawg Haus at the forefront of the sports theme

establishments in each local marketing area. Many new visitors or residents are fans of teams in

other markets. The Dawg Haus enjoys working with ESPN radio thus providing non-state fans

the opportunity to enjoy fine food with the technology that allows a fan to enjoy his or her game

of interest.

4.2 Sales Strategy (Chad)

The sales strategy is to build and open new locations on schedule in order to increase

revenue. Each individual store will continue to build its local customer base over the first three

years of operation. The goal is $500,000 to $1 million in annual sales per unit. A unit will be

considered mature once it has passed the $1.5 million mark in annual sales.

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4.2.1 Sales Forecast (Chad)

The following chart shows the projected sales growth for our three locations over the next

48 months.

0

500,000

1,000,000

1,500,000

2,000,000

2006 2007 2008 2009

48 Month Sales Forecast

UnitsTotal Sales

4.2.2 Sales Programs (Chad)

Each opening of Dawg Haus stores will have the same mix of marketing programs as the

others. Below are the programs that we will develop to kick open each location.

1. Grand Opening – Each new store will have outdoor signs in place as soon as

possible announcing that something new and exciting is coming to the neighborhood.

2. VIP Parties – We will host both a VIP lunch and dinner. This will serve the dual

purpose of training our staff and introducing ourselves to the community. The list of

individuals we will invite will come from the Chamber of Commerce. We will

choose a local charity to be the beneficiary of our event.

3. Direct Mail Piece – A stand-alone mailer will be produced in full color on heavy

weight paper. Inside will be all the important details of The Dawg Haus. We will

explain our menu, prices, hours of operation, “Theme Nights”, method of service, and

provide a locator map.

4. Radio – We will create one short music-based radio commercial, in both a 30 and 60

second spot.

5. Newspaper – We will create several different size newspaper ads, generic in nature,

to be used for any store in the chain..

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6. Local Store Marketing – We currently have three different local store marketing

programs. They include: customer raffles, charity carwash (free carwash while you

dine with us), and our school program (perfect attendance or honor roll students

receive a free meal).

4.3 Milestones (Mike)

The keys to success in achieving our goals are:

Product quality. Not only great food but great service and a fun-entertaining atmosphere.

Managing finances to enable us to open new locations.

Controlling costs.

Focusing on themes that have customer appeal.

Creation of spectacular design and layout at each facility.

High profile locations within the state of Wisconsin.

Celebrity events.

Retail merchandising.

5.0 Management (Kerry)

5.1 Corporate Structure Descriptions of The Dawg Haus

President: Sets company goals and mission statement. Oversees all business operations with

final decision over all matters.

V.P. Human Resources: Responsible for wage summaries, employment policies, and

employment procedures.

H.R. Manager: Assists vice president in all human resource matters; as well as delegation of

tasks to appropriate human resource associates.

H.R. Supervisor: Assures human resource associates stay focused on assigned tasks. Provides

assistance in these assigned tasks.

H.R. Employees: Does all assigned tasks in a prompt, conscientious matter.

V.P. Marketing: Locates and determines appropriate marketing strategies for desired locations.

Marketing Manager: Assists V.P. of marketing with goals and marketing strategies, as well as

delegation of tasks to appropriate marketing associates.

Marketing Supervisor: Assures marketing associates stay focused on company goals and tasks

as related to the marketing of the company. Also assists marketing associates in these tasks.

Marketing Employees: Does all assigned tasks in a prompt conscientious manner.

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V.P. Sales: Sets sales goals as related to company goals and future considerations.

Sales Manager: Assists V.P. of sales in maintaining company goals and future considerations,

as well as delegation of appropriate sales tasks to associates on a daily function.

Sales Supervisor: Oversees individual restaurants and its associates so that all sales goals and

future considerations are being met; responsible for the delegation of tasks to meet or exceed

daily customer satisfaction in a prompt and courteous manner.

Wait Staff: Follow assigned tasks as set by sales supervisor, interact with customers in a

friendly courteous manner, take customer orders, and responsible for accurate money distribution

for each sale.

Cooks: Prepare food in a prompt, safe and clean manner to ensure complete customer

satisfaction.

V.P. Quality: Sets standards of quality to meet all state and federal health and safety guidelines.

Quality Manager: To assist V.P. of quality in obtaining all state and federal health and safety

guidelines, as well as delegation of tasks to ensure these guidelines are being maintained.

Quality Supervisor: Oversees, and assists individual restaurant and its maintenance associates

to ensure the company, as well as state and federal health and safety guidelines are being

maintained or exceeded.

Maintenance: Carries out all functions as assigned by quality manager or quality supervisor

with a constant regard for fellow associates, and customers’ well being.

We have an extensive corporate structure to ensure all company goals and guidelines are being

met in all areas. With this extensive corporate structure we believe this will ensure that all

involved in The Dawg Haus will feel a sense of empowerment. With this type of corporate

structure we hope to meet or exceed all company financials and future growth goals.

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5.2 Corporate Structure for The Dawg Haus (Kerry)

Board ofDirectors

V.P. HumanResources

V.P.Marketing

V.P. Sales V.P. Quality

QualityManager

SalesManager

MarketingManager

H.R.Manager

QualitySupervisor

SalesSupervisor

MarketingSupervisor

H.R. Supervisor

H.R. Employees MarketingEmployees

Wait staff

Cooks

Maintenance

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6.0 Financials (Chad)

Sales – The Dawg Haus is basing its projected sales on the success of the current three

stores. The fourth store will open in spring of 2007, followed by future openings. Sales have

been projected on the low side using $500,000 per store.

Cost of Goods Sold – The cost of goods sold we determined by past sales of the already

open stores.

Management of Payroll – Figures are based upon using one manager per store with each

having an assistant manager.

Fixed and Variable Expenses – The various fixed and variable expenses were

determined by taking actual numbers from the history of the existing stores.

Marketing Fees – These funds will be used for the production of various marketing

materials.

Advertising – These funds will be used, if necessary, to maintain our sales at projected

levels. If the stores are running significantly ahead of our sales projections, then these fuunds

may not be necessary.

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6.1 Income Statement (Chad)

Comparative Income Statement - 4 Periods

Income Details $ % $ % $ % $ %Gross Sales $1,224,300 100.25% $1,633,897 100.23% $1,770,662 100.23% $1,825,992 100.00%Discounts/Allowances ($3,000) -0.25% ($3,800) -0.23% ($4,000) -0.23% ($4,000) -0.22%Net Sales $1,221,300 100.00% $1,630,097 100.00% $1,766,662 100.00% $1,821,992 99.78%

Direct Material Cost $367,290 30.07% $490,169 30.07% $531,199 30.07% $547,798 30.07%Direct Labor Cost $367,290 30.07% $490,169 30.07% $531,199 30.07% $547,798 30.07%

Total Cost of Sales $734,580 60.15% $980,338 60.14% $1,062,397 60.14% $1,095,595 60.13%Gross Profit $486,720 39.85% $649,759 39.86% $704,265 39.86% $726,397 39.87%

ExpensesFixed Expenses

Administrative Salaries $120,000 9.83% $126,000 7.73% $132,300 7.49% $138,915 7.62%Advertising $36,000 2.95% $46,000 2.82% $48,000 2.72% $48,000 2.63%Employee Benefits $18,000 1.47% $18,900 1.16% $19,845 1.12% $20,837 1.14%Home Office Business Expenses $1,000 0.08% $1,030 0.06% $1,061 0.06% $1,093 0.06%Insurance $20,000 1.64% $21,000 1.29% $22,050 1.25% $23,153 1.27%Professional Fees $6,000 0.49% $7,000 0.43% $7,000 0.40% $8,000 0.44%Legal & Professional Services $5,000 0.41% $5,000 0.31% $5,000 0.28% $5,000 0.27%Meals & Entertainment $1,500 0.12% $1,500 0.09% $1,500 0.08% $1,500 0.08%Office Expense $6,000 0.49% $6,180 0.38% $6,365 0.36% $6,556 0.36%Own - Equipment $3,000 0.25% $3,090 0.19% $3,183 0.18% $3,278 0.18%Own - Store Locations $8,750 0.72% $9,110 0.56% $9,544 0.54% $9,929 0.54%Repairs $1,000 0.08% $1,030 0.06% $1,061 0.06% $1,093 0.06%Supplies $1,000 0.08% $1,030 0.06% $1,061 0.06% $1,093 0.06%Taxes - Business & Payroll $12,000 0.98% $12,600 0.77% $13,230 0.75% $13,892 0.76%Travel $500 0.04% $500 0.03% $500 0.03% $500 0.03%Utilities $11,974 0.98% $16,764 1.03% $17,602 1.00% $18,482 1.01%

Total Fixed Expenses $251,724 20.61% $276,734 16.98% $289,302 16.38% $301,320 16.54%

Variable ExpensesOffice salaries $30,000 2.46% $31,500 1.93% $63,075 3.57% $66,229 3.63%Employee benefits $43,000 3.52% $46,875 2.88% $47,970 2.72% $51,249 2.81%Payroll taxes $18,000 1.47% $18,540 1.14% $19,096 1.08% $19,669 1.08%Telephone and telegraph $6,000 0.49% $6,180 0.38% $6,365 0.36% $6,556 0.36%Stationary and office supplies $500 0.04% $500 0.03% $500 0.03% $500 0.03%

Total Variable Expenses $97,500 7.98% $103,595 6.36% $137,007 7.76% $144,203 7.91%

Operating expenses $349,224 28.59% $380,329 23.33% $426,308 24.13% $445,523 24.45%Interest $16,250 1.33% $16,738 1.03% $17,240 0.98% $17,757 0.97%Depreciation $35,123 2.88% $38,234 2.35% $42,832 2.42% $44,753 2.46%

Total expenses $400,597 32.80% $435,300 26.70% $486,379 27.53% $508,033 27.88%

Operating income $86,123 7.05% $214,459 13.16% $217,886 12.33% $218,364 11.98%

Income before tax $86,123 7.05% $214,459 13.16% $217,886 12.33% $218,364 11.98%

Income taxes $25,837 2.12% $64,338 3.95% $65,366 3.70% $65,509 3.60%

Net income $60,286 4.94% $150,121 9.21% $152,520 8.63% $152,855 8.39%

Return On Ownership $180,286 14.76% $276,121 16.94% $284,820 16.12% $291,770 16.01%

2008

October 04, 2006

2009Year2006

Year Year Year2007

Sales Revenue Fixed Expenses Other Expenses Income Before Tax Income Taxes Net Income (Loss)

23

6.2 Balance Sheet (Chad)

ASSETS $ % $ % $ % $ %Current Assets

Cash and cash equivalents $6,000 1.35% $6,908 1.22% $37,220 6.66% $176,543 26.83%Inventory $15,000 3.37% $20,000 3.53% $25,000 4.48% $30,000 4.56%

Total Current Assets $21,000 4.72% $26,908 4.75% $62,220 11.14% $206,543 31.39%Fixed Assets

Land $180,000 40.43% $210,000 37.10% $210,000 37.60% $210,000 31.91%Buildings $300,000 67.38% $400,000 70.68% $400,000 71.63% $400,000 60.79%Equipment $69,126 15.53% $92,168 16.29% $92,168 16.50% $92,168 14.01%Subtotal $549,126 123.33% $702,168 124.07% $702,168 125.74% $702,168 106.71%

Less-accumulated depreciation $124,875 28.05% $163,109 28.82% $205,940 36.88% $250,693 38.10%Total Fixed Assets $424,251 95.28% $539,059 95.25% $496,228 88.86% $451,475 68.61%Total Assets $445,251 100.00% $565,967 100.00% $558,448 100.00% $658,018 100.00%

LIABILITIES AND STOCKHOLDERS' EQUITY

Current LiabilitiesAccounts payable $10,000 1.87% $12,000 1.52% $12,000 1.34% $13,000 1.31%

Current portion of long-term debt $37,500 7.02% $50,000 6.33% $50,000 5.60% $50,000 5.02%Income taxes $25,837 4.84% $64,338 8.14% $65,366 7.31% $65,509 6.58%Accrued expenses $12,000 2.25% $12,000 1.52% $12,000 1.34% $12,000 1.21%

Total Current Liabilities $85,337 15.98% $138,338 17.51% $139,366 15.60% $140,509 14.11%

Non-Current LiabilitiesLong-term debt $112,500 21.07% $162,500 20.57% $112,500 12.59% $60,500 6.08%Other long-term liabilities $9,000 1.69% $12,000 1.52% $12,000 1.34% $12,000 1.21%

Total Liabilities $206,837 38.74% $312,838 39.60% $263,866 29.53% $213,009 21.40%

Stockholders' EquityCapital stock issued $210,000 39.33% $210,000 26.58% $210,000 23.50% $210,000 21.09%Number of shares issued $100 0.02% $100 0.01% $100 0.01% $100 0.01%Retained earnings $117,089 21.93% $267,210 33.82% $419,730 46.97% $572,585 57.51%

Total Stockholders' Equity $327,089 61.26% $477,210 60.40% $629,730 70.47% $782,585 78.60%

Total Liabilities and Equity $533,926 100.00% $790,048 100.00% $893,596 100.00% $995,594 100.00%

October 04, 2006

2009

Comparative Balance Sheet - 4 Periods

Year2007 2008

Year2006

Year Year

Total Current Assets Total Fixed Assets Total Assets Total Current Liabilities Total Liabilities Total Stockholders' Equity Total Liabilities and Equity

24

6.3 Cash Flow Statement (Chad)

Year Year Year YearCash from operations 2006 2007 2008 2009

Net earnings (loss) $60,286 $150,121 $152,520 $152,855Add-depreciation and amortization $35,123 $38,234 $42,832 $44,753

Net cash from operations $95,409 $188,355 $195,351 $197,608

Cash provided (used) byoperating activities

Accounts Receivable $0 $0 $0 $0Inventory $5,000 $5,000 $5,000 $5,000Other current assets $0 $0 $0 $0Other non-current assets $0 $0 $0 $0Accounts payable $1,000 $2,000 $0 $1,000Current portion of long-term debt $0 $12,500 $0 $0Income taxes $38,501 $38,501 $1,028 $144Accrued expenses $0 $0 $0 $0Other current liabilities $0 $0 $0 $0Distributions to shareholders $0 $0 $0 $0

Net cash used by operations $44,501 $58,001 $6,028 $6,144

Investment transactionsIncreases (decreases)

Land $0 ($30,000) $0 $0Buildings and improvements $0 ($100,000) $0 $0Equipment $0 ($23,042) $0 $0Intangible assets $0 $0 $0 $0

Net cash from investments $0 ($153,042) $0 $0

Financing transactionsIncreases (decreases)

Short term notes payable $0 $0 $0 $0Long term debt ($50,000) $50,000 ($50,000) ($52,000)Deferred income $0 $0 $0 $0Deferred income taxes $0 $0 $0 $0Other long-term liabilities $0 $3,000 $0 $0Capital invested $0 $0 $0 $0

Net cash from financing ($50,000) $53,000 ($50,000) ($52,000)

Net increase (decrease) in cash $908 $30,312 $139,323 $139,464

Cash at beginning of period $6,000 $6,908 $37,220 $176,543

Cash at the end of period $6,908 $37,220 $176,543 $316,007

October 04, 2006

CASH FLOW STATEMENT - 4 YEARS

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2006 2007 2008 2009

Cash Flow

25

6.4 Break-Even (Chad)

Breakeven 2006 2007 2008 2009Break-Even $909,970 $918,382 $1,007,711 $1,056,415B/E % 74.51% 56.34% 57.04% 57.98%DAY OF B/E 272 206 208 212DATE OF B/E Sep 27 Jul 23 Jul 26 Jul 29

6.5 Key Ratios (Chad)

Key Ratios 2006 2007 2008 2009Current Ratio 0.25 0.19 0.45 1.47Quick Ratio 0.07 0.05 0.27 1.26Debt Ratio 0.46 0.55 0.47 0.32Asset Turnover 2.74 2.88 3.16 2.77Net Income/Sales 0.05 0.09 0.09 0.08Debt/Equity 0.63 0.66 0.42 0.27Return on Assets 0.13 0.23 0.20 0.18

26

Appendix: Menu (Larry)

28

Appendix Table: Sales Forecast

48 Month Sales ForecastFiscal Year 1 2006

2006Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Product NameSingles/Drink 6,000 6,000 6,000 7,500 9,000 12,000 12,000 12,000 12,000 7,500 7,500 7,500 210,000Selling Price $5.35 $5.35 $5.35 $5.35 $5.35 $5.35 $5.35 $5.35 $5.35 $5.35 $5.35 $5.35Combos 6,000 6,000 6,000 7,500 9,000 12,000 12,000 12,000 12,000 7,500 7,500 7,500Selling Price $6.31 $6.31 $6.31 $6.31 $6.31 $6.31 $6.31 $6.31 $6.31 $6.31 $6.31 $6.31Total Sales $69,960 $69,960 $69,960 $87,450 $104,940 $139,920 $139,920 $139,920 $139,920 $87,450 $87,450 $87,450 $1,224,300% of Total 5.71% 5.71% 5.71% 7.14% 8.57% 11.43% 11.43% 11.43% 11.43% 7.14% 7.14% 7.14% 100.00%


Singles/Drink 6,060 6,060 8,080 10,100 12,120 16,160 16,160 16,160 16,160 10,100 10,100 10,100 274,720Selling Price $5.35 $5.35 $5.35 $5.35 $5.35 $5.50 $5.50 $5.50 $5.50 $5.50 $5.50 $5.50Combos 6,060 6,060 8,080 10,100 12,120 16,160 16,160 16,160 16,160 10,100 10,100 10,100Selling Price $6.31 $6.31 $6.31 $6.31 $6.31 $6.50 $6.50 $6.50 $6.50 $6.50 $6.50 $6.50Total Sales $70,660 $70,660 $94,213 $117,766 $141,319 $193,920 $193,920 $193,920 $193,920 $121,200 $121,200 $121,200 $1,633,897% of Total 4.32% 4.32% 5.77% 7.21% 8.65% 11.87% 11.87% 11.87% 11.87% 7.42% 7.42% 7.42% 100.00%





29

Bibliography

Kerry Kaderabek:1. Class discussion2. Logo design (Jake Kortens)3. Text4. Yahoo search

Mike Scheele1. Class discussion2. Text3. Yahoo search4. www.Entrepreneur.com

Chad Senkbeil1. Class discussion2. Text3. Google search4. www.Entrepreneur.com5. www.Jaxworks.com6. www.loc.gov/rr/business/company/public.html7. http://www.uspto.gov/web/offices/tac/doc/basic/index.html8. http://www.uspto.gov/main/trademarks.htm

Larry Senkbeil1. Class discussion2. Text3. Google search4. www.restaurantequipment.com5. www.popcornsupply.com6. www.bluesolutions.com7. www.restaurantservices.com8. www.advancetabco.com9. The Team Handbook, third edition

the dawg haus business plan final

Business

sales strategy

marketing strategy

pricing strategy

promotional strategy

mission statement

positioning statement

income statement

sales programs