WingStop Restaurants

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Wing Stop
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Business Plan
OWNERS
Shayan Halani
Abdul Halani
WingStop
Palatine 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
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
10
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Executive Summary
The primary objectives of TBD Corporation is to
Uplift the existing market of WingStop in Chicago land
Average 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 expected
to be $ 11, $ 12 in year 2, and $ 13 in year 3.
Implement a marketing campaign ( with the direction of and in addition of that of
WingStops) 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 -effective
strategies to increase revenues, ( ii) developing marketing strategies, based on his extensive retail
interim 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 day
operations as well as receive training from WingStop headquarters in Plano, TX for four weeks.
Shayan Halani has purchased 2 development agreements for WingStop restaurants stores
primarily 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 future
expansions, through a combination of operating cash flows from the existing business, tenant
improvement credits from landlords, capital raises and lender financing.
WingStop Revenues
1200000
1000000
800000
Sales
600000
Profit
400000
200000
0
Year 1
Year 2
Year 3
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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 an
owner /operator, my role in this corporation will be to manage the location to bring sales and
profitability to the business.
Mission Statement: WingStop strives to generate sales and profit. Because we are a service
business, we will also strive to serve our customers. These two reasons for our existence are
inextricable.
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 the
accountability and efficiency will be reaching annual sales targets and meeting customer
satisfaction.
The objective is to lease a site at Palatine Park Place, Space A -2, and open a dual concept that
will include a forever yogurt and Wingstop. We will need to remodel the proposed retail area to
the specifications and standards of a typical WingStop. We plan to duplicate and message the
successful formula used by Franchisor. We will use our own personal strategies and skills to
create our own success in the restaurant. We plan to train our crew to ensure outstanding results
in quality food production and customer service. Two managers will receive 4 weeks training in
Plano, 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 quickly
First 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 to
order.
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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 making
chicken 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, WingStop
has the buying power and marketing tools in place to provide excellent products to our
consumers as well competitive pricing for franchisees in order to create profits and expand their
personal 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 by
Dunkin Donuts for fastest customer service timing in district.
Hired employees and formed a system for them to train by their managers. Implemented
employee 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 the
year 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, balance
sheets, food cost reports, labor usage reports.
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Dealt with changes in company standards and did all necessary training in order to
implement 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 several
other 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 family
packs, 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 choose
from.
Boneless Strip also available at an additional price, which is a larger version of the boneless
wings traditionally offered.
Menu caters to the need of one person or party of 10 or more. Catering Orders are done with
prior 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 than
chicken.
Dips, which go perfectly with wings, include ranch, blue cheese, and cheese sauce, which are
also 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 from
1, 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, consider
particularly suited to that approach. Restaurants market their products to customers of all ages
and 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 variations
other restaurant operators experience. Restaurants typically encounter lower sales after major
consumer spending seasons ( Christmas and the start of the school year) and during the winter,
especially in colder regions of the nation.
MARKETING
o
o
Develop a customer profile within immediate vicinity.
Develop relationship with neighbor banks /offies and setup rewards program for
more frequents visits. .
o
o
Marketing Budget of $20,000 for grand opening events and specials
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 Store
grand- opening event.
o
Provide gift cards to customers for first 100 guests that enter on Opening Day
o
Institute a customer appreciation day special within 6 months
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
o
We would accept all competitors' coupons.
o
Communicate with store managers at weekly meeting regarding marketing
campaigns to ensure " infrastructure" is in place for each week or each marketing
window 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
o
blocks west) and one Peewee football within first year of opening.
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 in
nation
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 mostly
at sports bar theme. They use these deals to get the people inside to drink more. Our effectiveness works
in 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 than
WingStop, 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 all
Wings to order. Many of the customers and target are similar for WingStop and Wendy' s.
Pricing
Family Packs
35 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 very
competitive due to the fact of Wing Stop' s quality. . The pricing is targeted to show higher value
to 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. Surrounded
by 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, where
WingStop does 75%
o
o
of its business.
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.
Store is located across the street from Popeyes, which helps business because the
overflow of Popeyes and other restaurants will increase business of WingStop because of
fast -food service.
o
Carry -Out parking (TBD upon permit) ( Carry out business accounts for over 60%
Wing Stop' s revenues)
of
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 a
delivery 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 in
Plano, Tx. Training intensely covers operational, clerical, and
management training to help prior to opening.
Pay structure
o
Company will offer 25% of the net cash flow profit to working manager
that has completed 4 week training course in Plano, TX and has
completed all necessary trainings. Profit -sharing manager will be placed
in store from opening period. Manager will work 55 -60 hrs in store and
specifically report to Shayan Halani.
Training methods and requirements
TRAINING PROGRAI%
I
Subject
Hours of Classroom
Hours of On -The-
Training
Job Training
3
0
Our training facility
1
0
Our training facility
IntroductioniWingstop
Location
Culture
Franchising and Brand
Development
Ops_ Manual
1
0
Our training facility
Food Preparation and
0
12
Our training
S
0
Our training facility
100
0
Our training facility
Personnel —Hiring &
Training
4
0
Our training facility
Uniform Standard &
1
0
Our training facility
2
6
Restaurant
Storage
Food Safety & HACCP (1)
Specific Position
Training/ Navigator/Pilot/
WingmantBombardier/
Gunner/Paratrooper")
Hygiene
Cleaning, Sanitation &
Maintenance
Marketing. Advertising &
Our training facility
and training restaurant
8
0
Our training facilit,
Promotions
Communications & P. O. S.
Our training facility
1
Systems
and training restaurant
1
0
Our training facility
1. 5
0
Our training facility
5
0
Our training facility
Security
3
0
Our training facility
Labor
S
0
Our training facility
Homework
0
10 ( at home)
Exit Interview Wrap up
5
0
Our training facility
New Restaurant Opening
1
0
Our training facility
Costs' Breakeven/ What a
guest is worth/Accounting
Wingnet/Htunan
Resources/Polling/ Guest
Complaints
Research &
Developmental)
Matrix P
/ & L' C O Si S PMH
Case Counts •WSR
Operations
Expectations
20
WINGSTOP FDD - 2008
CHGO1\ 31158496. 2
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Subject
Operator Simulation ( In
Hours of Classroom
Hours of On -The-
Training
Job Training
0
8
Location
Our training
Restaurant
Training
Restaurant). Polling;
Register Set-
Up 'Inventory. Gift
Cards Schedules
General
Fund
Reviews & Final
12
0
161
39
Our training facility
Examination
Total Training:
All employees will be paid hourly, including store manger. There will a weekly schedule
for each employee and staff member.
All employees would be trained in -store prior to grand opening week, which takes around
2 weeks.
Inventory
Kitchen 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 for
frozen 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.