wingstop restaurants - granicus

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WingStop Restaurants

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Business Plan

OWNERS

Shayan Halani

Abdul Halani

WingStopPalatine Park Place

Palatine, IL

Cell: (847) 529 -1887

Fax (TBD)

E -Mail: Shayan.Halani@gmail. com

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Table of Contents

I. Table of Contents 3

II. Executive Summary incomplete 4

III. General Company Description 4

IV. Products and Services 9

V. Marketing Plan 10

VI. Operational Plan

VII. Management and Organization

VIII. Personal Financial Statement

IX. Startup Expenses and Capitalization

X. Financial Plan

XI. Appendices

XII. Refining the Plan

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Executive Summary

The primary objectives of TBD Corporation is toUplift the existing market of WingStop in Chicago landAverage customer counts per day of 150 ( in year 1), to 200 ( in year 2), and to 250

in year 3).

Improve sales per customer each year. Sales per transaction in year 1 are expectedto be $ 11, $ 12 in year 2, and $ 13 in year 3.

Implement a marketing campaign (with the direction of and in addition of that ofWingStops) that focuses on the downtown Chicago market and Suburban areas.

Build location in the Palatine area in Northwest Suburbs, IL for 26th location in

Chicago and bring brand to a different segment in Chicago land area.

The manager and owner, Shayan Halani, is a skilled and educated professional with expertise in

take over management in startup situations. He will focus on: ( i) implementing cost - effectivestrategies to increase revenues, ( ii) developing marketing strategies, based on his extensive retailinterim management experience, to generate high customer counts and brand awareness in Niles, IL, and ( iii) exploring expansion opportunities. Abdul Halani, owner, will use his experience in food and beverage business to oversee and guide

Shayan Halani to operating a successful business. A professional, a veteran manager of retail

franchise operations will be determined in the process. Manager will oversee day to dayoperations as well as receive training from WingStop headquarters in Plano, TX for four weeks. Shayan Halani has purchased 2 development agreements for WingStop restaurants storesprimarily in the Downtown Chicago or Northern Suburbs of Chicago for $17, 000. He has raised

funds from Abdul Halani, his father, who will have a stake in the business ( >5 %). His father has

experience in operating 10 Dunkin Donuts. Shayan Halani anticipates financing futureexpansions, through a combination of operating cash flows from the existing business, tenantimprovement credits from landlords, capital raises and lender financing.

1200000

1000000

800000

600000

400000

200000

0

WingStop Revenues

Year 1 Year 2 Year 3

Sales

Profit

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General Company Description

WingStop is a quick service restaurant that serves Chicken wings, boneless wings, chicken strips, fresh cut seasoned fries, beer, and specialty sides such as potato salads and coleslaw. As anowner /operator, my role in this corporation will be to manage the location to bring sales andprofitability to the business.

Mission Statement: WingStop strives to generate sales and profit. Because we are a servicebusiness, we will also strive to serve our customers. These two reasons for our existence areinextricable.

Company Goals and Objectives: Our goal for WingStop is bring profitability to $ 100, 000 and

sales over $980,000. In order to meet these financial goals, we must place a system that includes

accountability and efficiency from the employees and manager of the store. Measuring theaccountability and efficiency will be reaching annual sales targets and meeting customersatisfaction.

The objective is to lease a site at Palatine Park Place, Space A -2, and open a dual concept thatwill include a forever yogurt and Wingstop. We will need to remodel the proposed retail area tothe specifications and standards of a typical WingStop. We plan to duplicate and message thesuccessful formula used by Franchisor. We will use our own personal strategies and skills tocreate our own success in the restaurant. We plan to train our crew to ensure outstanding resultsin quality food production and customer service. Two managers will receive 4 weeks training inPlano, TX to prepare the managers for the duties of running a WingStop store.

Objectives

Be the first WingStop in the Palatine

Provide the highest quality chicken wings in the area.

Give great customer service in a quick and efficient manner

Keep our menu simple to maintain low food cost

Maintain the competitive, fast -casual dining at the mid -range price point

Use marketing strategies to build volume quicklyFirst year sales over $850,000 with 30% percent growth in year 2, and 6 percent there

after.

Maintain and expand an outstanding reputation and serve every food item made toorder.

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The Bone -IN chicken industry has definitely soared in last several years. To date, ( 12/ 11/ 2009)

WingStop has sold over 1. 8 billion chicken wings. Due to the massive market for makingchicken wings, WingStop has been able to fill a void in the daily consumer needs.

As a system wide franchise of over 500 stores, with more than 200 in development, WingStophas the buying power and marketing tools in place to provide excellent products to ourconsumers as well competitive pricing for franchisees in order to create profits and expand theirpersonal networks into several stores.

Business Experience

Abdul Halani

Franchisee and President of all Corporations of Dunkin Donuts located in Chicago Downtown

Franchisee from 1986 - Present)

Developed and Operated upto 12 Stores.

Chairperson of Midwest Advisory Council for 5 years

Vice President Dunkin Donuts Midwest Distribution center for 8 years.

Opened first satellite Dunkin Donuts in Chicago Downtown in 1989 .

Shayan Halani

General Manager of Dunkin Donuts, ( September 06 -March 2010)

Daily Operational Duties

Trained managers to provide excellent customer service. 2 stores were recognized byDunkin Donuts for fastest customer service timing in district.

Hired employees and formed a system for them to train by their managers. Implementedemployee handbooks to set rules and regulations of being an employee of our network. Required online training completion before working in the store.

Controlled food cost and labor cost to meet the need of ownership' s profitability. For theyear of 2009, ( Up to October), food and labor cost combined have been 48 %, which

exceeds our goal of 50 %.

Managed 10 stores sales of 8. 6 million in year of 2008.

Performed clerical duties as well, such as payroll, monthly profit and loss reports, balancesheets, food cost reports, labor usage reports.

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Dealt with changes in company standards and did all necessary training in order toimplement new standards in our stores.

Managed to bring up Mystery Shopper scores from 65% to 97% for average of all stores.

Dedicated 55 -60 hours a week to managing the stores

Education

Glenbrook South High School, Glenview IL

General Education GPA 3. 7, graduated June 2005

National Honor Society

DePaul University, Chicago, IL

Finance GPA 3. 5, graduated December 2008

Skills

Proficient in Word, Excel, PowerPoint and Microsoft Access

Completed ServSafe training, requirement for all restaurant in IL.

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Company Information

This company will be an S- Corporation, with two owners /operators, Shayan Halani ( 95 %)

As well as one partner, Abdul Halani, ( 5 %)

Proposed Location at Palatine Park Place, IL The size of the retail space is space is 1765 sqft

with seating for 35 people.

Center Includes, Starbucks, Tmobile, Subway, Panda Express, Jimmy Johns, Sonic, and severalother national brands.

Site Plan attached.

Demo attached.

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Products and Services

A traditional favorite, our Regular Wing has the bone in surrounded by lots of flavorful meat.

They are never breaded, just sauced and tossed in your favorite wing flavor. Available in familypacks, party platters or combo meals.

Wings are available from 10 to 100 wings. Prices range from 60 cents to 75 cents a wing.

Wings can be mix and matched with boneless or bone -in. Up to 10 popular flavors to choosefrom.

Boneless Strip also available at an additional price, which is a larger version of the bonelesswings traditionally offered.

Menu caters to the need of one person or party of 10 or more. Catering Orders are done withprior notice and given at a very competitive pricing.

Family Packs start at 27.99 and serves a family of four with drinks and fries

Fries are freshly cut everyday and also made to order to ensure freshness.

Sides such as potato salads and coleslaws are prepared daily to give customer variety other thanchicken.

Dips, which go perfectly with wings, include ranch, blue cheese, and cheese sauce, which arealso prepared on a daily basis to ensure freshness.

All Coke products are available as refreshments in the new Coke Freestyle Dispenser. Beer will

also be available to for adult guests over age 21.

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Marketing Plan

Restaurants are designed to be located primarily in shopping centers. They typically occupy from1, 350 to 1, 800 square feet of leased retail space. Restaurants feature a distinctive " aviation

theme" decor that we assemble and sell to franchisees. Most Restaurants provide limited

customer seating because many customers call in their orders for off - premises consumption. We

have allowed franchisees to open " take -out only" Restaurants that contain no customer seating. We consider these Restaurants experimental and will allow other franchisees to open " take -out

only" Restaurants only in special circumstances that we, in our sole judgment, considerparticularly suited to that approach. Restaurants market their products to customers of all agesand economic levels. Our Restaurants have not experienced significant sales fluctuations that can

be attributed to seasonal factors. This experience may not be typical of seasonal sales variationsother restaurant operators experience. Restaurants typically encounter lower sales after majorconsumer spending seasons ( Christmas and the start of the school year) and during the winter, especially in colder regions of the nation.

MARKETING

o Develop a customer profile within immediate vicinity. o Develop relationship with neighbor banks /offies and setup rewards program for

more frequents visits. .

o Marketing Budget of $20,000 for grand opening events and specialso Marking Budget includes direct mailing coupon through Local values. Marketing

initiative to promote Chicken Wings special.

o Working with Chicago Bulls team to get one or two players to come to Storegrand- opening event.

o Provide gift cards to customers for first 100 guests that enter on Opening Dayo Institute a customer appreciation day special within 6 monthso Institute a lunch specials program (similar for Subway $5 foot long) on Tuesday

and Thursdays in order to compete with Buffalo Wild Wings 45 cents wing night. o $ 5 combo would include 6 wings, dipping sauce, small fries, and a drink. o We would accept all competitors' coupons.

o Communicate with store managers at weekly meeting regarding marketingcampaigns to ensure " infrastructure" is in place for each week or each marketingwindow from corporate

o Plan out weekly and monthly campaigns for the next six months: o Sponsor one high school football team (Walter Payton High school located two

blocks west) and one Peewee football within first year of opening. o During first week of training, all products made will be given away to local

businesses and companies for them to acknowledge that we are there.

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Existing WingStop Restaurants in Chicago land area

Illinois Locations

CHICAGO

1637 N MILWAUKEE AVE- Sales around 10, 000- 12, 000

3326 N WESTERN AVE

DECATUR

1491 W KING ST

DOWNERS GROVE

2589 OGDEN AVENUE

ELMWOOD PARK

1740 N HARLEM AVE- Number one Store in the Nation

EVANSTON

2434 MAIN ST

EVERGREEN PARK

2511 W 95TH ST- Over 60% increase in store sales from Last year (number One increase innation

GLEN ELLYN

545C ROOSEVELT RD

LANSING

17701 TORRENCE AVE

NAPERVILLE

2695 FORGUE DR

ROSELLE

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LAKE ST at W BRYN MAWR AVE

SAINT CHARLES

1840 W MAIN ST

Competition

Neighborhood bars ( Dine -In restaurant)

Gator Wing Shack

Typical Bar near that will offer variety of wing deals. However their brand and marketing is targeted mostlyat sports bar theme. They use these deals to get the people inside to drink more. Our effectiveness worksin the opposite way, we want our guest to come in for the wings and maybe grab a beer or soda.

Wendy's ( Fast food restaurant)

Wendy' s offers boneless wings in three different sauces. The prices of their Wings are lowers thanWingStop, however the quality and size of each wing is much lower. In addition, as opposed to WingStop, Wendy' s pre cooks their wings in order to meet the need of drive -thru where as WingStop prepares allWings to order. Many of the customers and target are similar for WingStop and Wendy' s.

Pricing

Family Packs35 Wing Family Pack- ($ 27.99)

50 Wing Family Pack- ($ 39.99)

16/ 24 Chicken Strip Pack- ($ 21. 99/ 31. 99)

Individual Meals

6/ 10 Wing Combo- ($ 7. 99/ 8. 99)

3/ 5 Strip Combo ($ 6. 99/ 8. 99)

Regular Wings/ Boneless Wings

10- 7.49

20- 13. 99

35- 22.99

50- 29.99

75- 45. 99

100- 56.99

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Our pricing is the not the cheapest pricing in the market, however it does become verycompetitive due to the fact of Wing Stop' s quality. . The pricing is targeted to show higher valueto our products and show cheaper prices with combos and family packages.

Prices of Buffalo Wild wings ranges from 79 cents a wing on regular nights.

Proposed Location

Palatine Park Place, IL

o Location is very convenient for Customers who are performing daily errands. Surroundedby several restaurants and shopping centers such as Jewel, Walgreens, 7- Eleven. Restaurants include Starbucks, Jimmy Johns, Dunkin Donuts and Chipotle.

o Parking is available right in front of restaurant. More parking available after 6pm, whereWingStop does 75% of its business.

o The WingStop restaurant will be designed to the newest image that appeals to customers. Design outlaid goes accordance with other WingStop in the Chicago land area.

o Store is located across the street from Popeyes, which helps business because theoverflow of Popeyes and other restaurants will increase business of WingStop because offast -food service.

o Carry -Out parking (TBD upon permit) (Carry out business accounts for over 60% of

Wing Stop' s revenues)

o 35 seats inside restaurant for causal dining experience with audio /visual equipment

o Set customer awareness in the North Side of Illinois for other proposed locations in

surrounding areas.

Sales Forecast

Cash flow (Attached document in Email) for Year

Breakeven Form (monthly, Year 1, 2, 3)

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Operational Plan

Construction

Cost: Break Down of Costs in Attached

Production

All the products will be made on site. All of the products come into the facility through adelivery service determined by the Franchisor.

Business Hours are everyday, 11 am- 12am.

Personnel

Number of employees: 35 Employees

o Employees will be recruited from neighboring business

o Ads in Chicago Tribune that will run for 2 weeks and as well as Career

builder.

o Walk -Ins or In -Store applications.

Quality of Staff

o Shayan Halani and working manager will receive 4 week training inPlano, Tx. Training intensely covers operational, clerical, andmanagement training to help prior to opening.

Pay structure

o Company will offer 25% of the net cash flow profit to working managerthat has completed 4 week training course in Plano, TX and hascompleted all necessary trainings. Profit - sharing manager will be placedin store from opening period. Manager will work 55 -60 hrs in store andspecifically report to Shayan Halani.

Training methods and requirements

TRAINING PROGRAI%I

SubjectHours of Classroom

Training

Hours of On -The-

Job TrainingLocation

IntroductioniWingstopCulture

3 0 Our training facility

Franchising and BrandDevelopment


Ops_ Manual 1 0 Our training facilityFood Preparation and

Storage

0 12 Our trainingRestaurant

Food Safety & HACCP (1) S 0 Our training facilitySpecific Position

Training/Navigator/Pilot/ WingmantBombardier/

Gunner/Paratrooper")


Personnel — Hiring & Training


Uniform Standard &

Hygiene


Cleaning, Sanitation & Maintenance

2 6 Our training facilityand training restaurant

Marketing. Advertising & Promotions

8 0 Our training facilit,

Communications & P. O.S.

Systems

1 Our training facilityand training restaurant

Costs' Breakeven/What a

guest is worth/Accounting


Wingnet/Htunan

Resources/Polling/GuestComplaints

1. 5 0 Our training facility

Research & Developmental)


Security 3 0 Our training facilityLabor

Matrix /P & L' COSiSPMH

Case Counts •WSR

S 0 Our training facility

Homework 0 10 ( at home)

Exit Interview Wrap up 5 0 Our training facility

New Restaurant OpeningOperations

Expectations


20WINGSTOP FDD - 2008

CHGO1\ 31158496. 2

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SubjectHours of Classroom

Training

Hours of On -The-

Job TrainingLocation

Operator Simulation ( In

Training

Restaurant). Polling; Register Set-

Up 'Inventory. GiftCards Schedules General

Fund

0 8 Our trainingRestaurant

Reviews & Final

Examination


Total Training: 161 39

All employees will be paid hourly, including store manger. There will a weekly schedulefor each employee and staff member.

All employees would be trained in -store prior to grand opening week, which takes around2 weeks.

InventoryKitchen size is approx 600 -700 sqft.

Average value of inventory on hand will be $ 7, 000

Turnover for the inventory on hand should be 3 days for all fresh products and 7 days forfrozen and dry goods.

Seasonal buildups, inventory will triple for February because of Super Bowl.

Orders will be place 24 hours before delivery arrives to site.

wingstop restaurants - granicus

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