intermediate report investment planning subject project planning of restaurant opening project

BUSINESS AREAS Food and beverage - entertainment services.. To meet the preferences, habits, needs of Vietnamese people and tastes of the market, the group launched the business project

PROJECT PLANNING OF RESTAURANT OPENING PROJECT

Instructors guide: BO THT THANH NHAN

PREAMBLUE 119 HH “HH TH HT TH TH TH TT HH TT kế 3 CHAPTER I1: PROJECT INTRODUC THION cà HH HH HH HH HH kiệt 4

1.1.1 BUSINESS AREAKL.LL ch HH HH HT HH TH TT TT TK 4 1.12 TINTRODUCE PROJECTS, PRODUCT nà HH HH HH HH hiện 4 1.13 MENU SHOE - LH HH HH HH kh HH TH TH HT Tp 4 1.1.4 )9830055009.0.401090)0011 5 1.2 ANALYZESTRENGTHS AND WEAKNESSES (SWOTT) - St nàn nen 5 1.2.1 STRENGTTHE - nh HH HH HH TH HH TT BH HH Hy 5 1.2.2 WEAKNESSES LH HH nhàng HH TH HT HT ĐH ĐK 5 1.2.3 OPPORTUNITTEE - cà nà HH HH HH HH HH HH kh HH Tà Hệ 5 12.4 THREATRENS - cà HH HH HT HH TH HT TH TH TT Tp 6 1.3 MARKETANALYSIE ch HH HH HH HT TH 6 1.3.1 MARKET DEMAND, LH H HH HH HH TH HT HH TH ĐH KH 6 1.3.2 THE GOAL OE THE STORE 1 11H TY HH HH HH HH nh HH kh TR 6 1.3.3 CUSTOMER CHARACTERISTICS ác + 1 hàn HH Hàn HH HH HH HH it 6 1.3.4 COMPETITTORS LH HH HH HH HH HH HH TT TH TT TT 7 PART 2: ASSESSMENT OEF INVERSTMENT PRO/JECTT cà HH HH HH HH thế 7 2.1 PROJECT EVALUATHƠN ác nàn HH HH HH HT TH TH TT TT 7 2.1.1 PROJECT PARAMETTERS LH HH HH HH nh HH TH Hiệp 7 2.1.2 INITIAL INVESTMENT cece ceccecseecesecreeseesessseceesseeseenssseseessessaeenessessseresseneneees 9 2.1.3 FORECAST OE COS TẾ LH HH HH HH HH HH TH hi 10 2.1.4 REVENUE FORECASTT LH HH HH HH TH HH nh HH TH 13 2.1.5 TINCOME SLATEMENT, - cà 3 SH TH “TH TH TH TH hư} 14 2.1.6 CASHFLOW BUILDING HH HH HH nh 15 2.1.7 PROJECT CASH FLOÔW LH HH HH nh HH HH kh HH HH 16 2.1.8 PROJECT APPRAISAL BY NPV, IRR, PP, DP - 3x HH 17 CHAPTER 3: RISK ANALYSIS OF THE PROJECT c2 SH ng HH nh ke, 19 3.1 PROJECT RISKES -c LH HH HH HH HH TH TT TH TT Tư 19 3.1.1 COMPETTTOR L1 LH HH “HH TH HH nh HH HH TH TH ĐH HE 20 3.1.2 CUSTOMER RISK cá SH HH HH HH HH HH TH HH TH 21 3.1.3 MARKETING EAILURE c1 1191 Ỳ* HH TH TH HH HH HH HH TEH 21 3.2 SCENARIO ANALUYSIE ch HH HH kh HT HH TH ĐH HH 22

3.2.1 WHERE COST OF GOODS SOLD AND VARIABLE COST INCREASE 10% 22

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PREAMBLE

For Vietnamese people, "snacking" is a phrase that any young person knows The hobby of snacking, enjoying food on the sidewalk, in small restaurants on the street has become a typical cultural feature of Vietnamese people Living in an era where the quality of life has been significantly improved, today's young people enjoy more comforts than previous generations And so, their needs also become bigger and more diverse than ever The Vietnamese eating habits and habits not only have three main meals a day, but also have snacks, missed meals, snacks This is the time when Vietnamese people enjoy snacks, creating conditions for hundreds of snacks to be born

CHAPTER 1: PROJECT INTRODUCTION

1.1 BUSINESS IDEA

1.1.1 BUSINESS AREAS

Food and beverage - entertainment services

1.1.2 INTRODUCE PROJECTS, PRODUCTS

- Snacking restaurants are a type of business that is thriving in Vietnam To meet the preferences, habits, needs of Vietnamese people and tastes of the market, the group launched the business project Hymin Quan

- Snack shops can put into business foods such as cheese sticks, chips, fried corn and drinks such as milk tea, coffee, and soft drinks

- The food is delicious, clean, attractive and served quickly

- Clean and airy space creates comfort and relaxation for customers

- Staff are friendly, hospitable, and enthusiastic

- Demand for eating and drinking 1s higher and higher

The store is convenient in terms of location, the store is located opposite 2 big universities, and the store is located on a big road with convenient transportation and a crowded population The above advantages can easily attract potential customers

Besides, there are many shops and agents supplying different processing materials on the market

1.2.4 THREATENS

1.3

Some or many customers are still concerned about the safety, nutritional level and possible allergies when using the product (squid balls, shrimp balls, .) Food, entertainment, and beverage,

The risk of market share shrinking by competitors

MARKET ANALYSIS

1.3.1 MARKET DEMAND

With the store's location opposite the university with a high concentration of students, teachers, students, students and young men and women are our main customers because this is the class with great demand In particular, the group of customers that the restaurant targets is young people, aged from 15-

30 years old This is a group of customers who have entertainment and relaxation needs They are ice cream shops, cafes they make up the majority

1.3.2 THE GOAL OF THE STORE

Products are plentiful, diversified, service staff, professional

The store will be a place for all customers to relax, a place to meet and exchange interesting friends after a tiring time

Maximize customer satisfaction

1.3.3 CUSTOMER CHARACTERISTICS

The main customers of the shop are students - students

- This is a group of customers with many different needs, so meeting all their needs will give the restaurant a great competitive advantage in the business environment “entertainment - beverage - dining "Strong growth as of today

- Total investment of the project includes Site rental, equipment, contingency costs

@ The cost of re-renting the premises:

According to our group's reference about the market and the fact, the rental price of our shop has

+ Area: 40 m2

+ 1 month: 11,000,000 VND

+ | year: 132,000,000 VND

Sign a 5-year lease, pay monthly

@ Processing equipment costs

Including machinery and tools for the sale of food such as frying machines, blender, refrigerators, gas cookers, sinuses are listed in the following table:

Unit: VND

No Equipment Unit Amount Price Total

I Frying machine The I 800,000 800,000

2 Blender The I 400,000 400,000

4 Freezer The 1 6,000,000 6,000,000

5 Fridge The I 7,000,000 7,000,000

6 Double gas stove The l 1,000,000 1,000,000

Set of pots, sinuses,

7 pans The set 1 900,000 900,000

Bowls, chopsticks, | The set

8 spoons, forks, cups 1 2,000,000 2,000,000

9 Kitchenware The set l 500,000 500,000

10 The tray The 2 80,000 160,000 Vases, cups of

6 Cashier The set I 4,000,000 4,000,000

7 Mini folding | Theset | 19 1,000,100 | 10,001,000

For the purpose of quick capital recovery, we decided to apply the straight-line

depreciation method, the expected construction time of the project is 5 years

Depreciation expenses are presented in the following table:

Unit: VND

2022 2023 2024 2025 2026 2027

40,9 32,760, 24,5 16,3 | 8,190,24 Begin 51,200 960 70,720 80,480 | 0

Principal interest is paid evenly

Initial investment: 300,000,000 VND (in which equity is 150,000,000 VND and bank loan is 150,000,000 VND)

50% loan from Agribank: VND 150,000,000

balance 0 0 99,943,705 | 70,325,490 | 37,153,089 Total 41,611,460 | 41,611,460 | 41,611,460 | 41,611,460 | 41,611,460

payment

Interest 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 | 18,000,000 Principal 23,611,460 | 23,611,460 | 23,611,460 | 23,611,460 | 23,611,460 Ending 150,000,00 | 126,388.54

balance 0 0 99,943,705 | 70,325,490 | 37,153,089 0

2.1.4 FORECAST OF COSTS

@ Cost of goods sold

The cost of raw materials is calculated based on the price of each type multiplied by the quantity per month used We expect average raw material spending to remain unchanged from year to year

The cost of raw materials is based on the restaurant's menu and ability to attract customers This cost includes the cost of the types of materials, spices, flavors that the restaurant needs to use The cost categories are listed below the table below:

The cost of leasing the premises will be paid on a fixed basis at the end of the month Business registration fee will be paid in the first year of the project

The marketing costs we use in the first year - when starting the business We plan to print flyers to distribute to customers and advertise on websites by running digital marketing Therefore, from 2022 - 2026, fixed costs do not include registration costs and marketing costs Fixed costs are shown in the following table:

Unit: VND

1 month In 2022 In 2023-2026 Fixed costs 139,220,000 136,020,000 Cost rent 11,000,000 132,000,000 1,584,000,000 Internet money 335,000 4,020,000 48,240,000 Registration form 3,000,000 3,000,000 Marketing expense 200,000 200,000

- The variable costs

The costs to transport the restaurant: electricity, water, Unexpected costs are the costs used in cases of risks, uncertainties or unexpected arising in the business process

of the restaurant Or it could be an employee bonus We estimate a l-year average variable cost to be shown in the table below:

Unit: VND

| month 2023 2022 - 2027 The variable costs 268,200,000 268,200,000

Employee salary 18,650,000 223,800,000 223,800,000

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The average price per customer to enter the restaurant must pay (listed in the table below) The above price is the price for diners, in accordance with the purchasing power of target customers Estimated number of business days in a year is 360 days Estimated average daily sales for the shop are calculated by multiplying the selling price by the yield for each product

Unit: VND

No Name of type Price mean | Quantity Money

l Types of milk tea 25,000 15 375,000

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Total | day 195,000 94 2,057,000

| year 740,520,000

2.1.6 INCOME STATEMENT

We expect the average revenue to remain constant over the years

Fixed tax rate (Tax rate): 20%

Unit: VND

2023 2024 2025 2026 2027 Revenue 740,520,000 740,520,000 | 740,520,000 | 740,520,000 | 740,520,000

Cost of 199,200,000 199,200,000 | 199,200,000 | 199,200,000 | 199,200,000 goods sold

CP works 415,610,240 412,410,240 | 412,410,240 | 412,410,240 | 412,410,240 Fixed Cost 139,220,000 136,020,000 | 136,020,000 | 136,020,000 | 136,020,000 Variable cost 268,200,000 268,200,000 | 268,200,000 | 268,200,000 | 268,200,000 Depreciation 8,190,240 8,190,240 8,190,240 8,190,240 8,190,240

EBIT 125,709,760 128,909,760 | 128,909,760 | 128,909,760 | 128,909,760

I (Interest) 18,000,000 15,166,625 | 11,993,245 | 8,439,059 4,458,371 EBT 107,709,760 113,743,135 | 116,916,515 | 120,470,701 | 124,451,389

T 20% 20% 20% 20% 20% EAT 86,167,808 90,994,508 | 93,533,212 | 96,376,561 | 99,561,111

2.1.7, CASH FLOW BUILDING

@ NWC Table (Net working capital sheet)

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The first year we plan to spend VND 50,000,000 to buy all kinds of materials for food and beverage sales And that will increase by 10,000,000 By the last year we will

recoup the money spent over the years The table of net working capital is shown in

After 5 years of operation, at the end of the project will sell the equipment purchased

at the opening of the shop Resell for 20% of the original purchase price

@ Machine sales tax

@ Salvage PPE

2.1.8 PROJECT CASH FLOW

DA 40,951, - - - -

200 CAPEX 300,000,000

2.1.9 PROJECT APPRAISAL BY NPV, IRR, PP, DPP

@ NPV

NPV

45,805,920 VND

45,805,920 17%

3.88 4.88

Profits from project investment are more profitable than depositing in the bank

Based on research and analysis results With the current price of the project NPV = 45,805,920 VND> 0, we can conclude that the project is highly profitable and should be invested

The group's opportunity cost can be achieved by investing in a restaurant around 12%, with the internal rate of return IRR = 17% greater than the group's opportunity cost Through the process of planning, analyzing and calculating the above financial indicators, the project will bring profits, and the ability to recover capital and pay interest on bank loans quickly

THIS PROJECT SHOULD BE IMPLIED

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CHAPTER 3: RISK ANALYSIS OF THE PROJECT

3.1 PROJECT RISKS

@ Wrong target group of customers

Eating is always one of the most essential needs of a person But not everyone is a potential snack store customer If you misidentify your target audience, you will not offer a suitable menu of snacks; the restaurant decoration is not attractive enough and there are no "tricks" to effectively reach customers

¢ Unsuitable selection of a sunk food business location

Business location is the "trump card" that determines the success of any business field However, the business location in front of the university is not necessarily a good place to run a snack bar Since the majority of students go to school during the day, they will mainly eat lunch to enter school and when after school, they will go home, not sure that they will go to the snack bar

@ Risks related to lack of food safety and hygiene

One of the most worrying owners of junk food is the problem of food hygiene and safety If unfortunately the store has customers with food poisoning, the owner must compensate for the health care costs of the customer The reputation of the restaurant will also be seriously affected, even forced to stop working

@ Number of "virtual" customers, low revenue

When I first started a snacking business, the number of customers was relatively large Many of them come to the restaurant curious about new dishes; acquaintances, friends come to support This group of customers is called "virtual customer" That is, they only come to the shop to support and satisfy curiosity for the first time

After a short time in operation, the number of customers decreased Potential customers and "gut" customers are not many Revenue is decreasing and it is difficult

to maintain a long-term business

@ The menu is not rich, can not catch up with the “hot trend"

A boring menu; "Immutable" over time will make the shop unable to compete with other snacks in the area Without the "exclusive" and branded snacks of the restaurant,

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