Launching a Mexican Cafe Business Plan

Pages: 5 (1391 words)  ·  Bibliography Sources: 0  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business  ·  Written: May 14, 2019

It will also offer trivia night once per week and obtain a liquor license to sell tequila and beer with its cuisine.

Competitive Analysis

The strengths of Paco Taco will be that it offers casual cuisine in a great location at an affordable price. Other competitors in the area do not offer the same type of service or product, which allows this company to stand out and differentiate itself from others. The company will differentiate itself from others still further by promoting its authentic cuisine, embedding itself in the community through good will drives and campaigns, supporting student issues, and so on. It will identify with the needs of the local students and become the place that they in turn identify with when it comes to meal time. The social aspect of eating will be what drives the café’s success.

Design and Development Plan

The café is designed to serve both those who want to sit and eat with friends and to serve those who want to get their food and go. The plan will be to expand the venue once major debts are repaid and the business is financially stable. This could include expanding downward and opening up on the first floor as well so that the two floors are connected and even better services can be provided, like games, music, ping pong, and other recreational offerings along with a full bar.

Operations and Management Plan

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The kind of growth that is expected for the restaurant café will be based primarily on spring and fall sessions, which should allow the business to profit substantially and pay back the loan within 3 years while also enjoying profits; the ROI is expected at 25% over the first 3 years and continuing upward from there. Start-up costs are discussed in the next section. Investment will be from personal stakeholders who will be interested in owning a percentage of the shares of the business. Investors will be from family so that the business can be family-owned and managed. The management plan is to include owner as non-salaried managers, who will oversee operations just like they would oversee their own investment portfolio. This will ensure that they are hands-on operators.

Financial Plan


Business Plan on Launching a Mexican Cafe Assignment

There is currently space available directly across from St. John’s University on Union Turnpike—1733 sq. ft. located on the 2nd floor above the concourse—that could be used to get the restaurant started. The space is being offered for $45 per sq. ft. or $78,000 per year. That comes to $6500 per month. This comes to approximately seating space for 80. Lease terms will be for five years, with the first 3 months paid in full.

Employee costs will include 4 full-time cooks plus 6 service counter and wait staff for a total of 10 employees. Employees will most likely be students and costs should be approximately $360,000 per year.

Food costs should come with a $10,000 credit from the supplier, which will cover the first month of food ordering operations. Food costs should be approximately $120,000 per year.

Cost of renovations will be approximately $100,000. This will be required for setting up the kitchen, counter and seating.

Advertising and promotionals will be at a minimal cost, using primarily social media, so these will not be significantly impactful on the overall cost associated with the business.

To finance operations, a business loan will be required from a bank, with personal assets offered as collateral. The loan amount required will be to pay for first 6 months of rent--$40k plus renovations at $100k plus 6 months of food costs at $60k and 6 months of employee costs at $180k. The total loan needed is $380k. The loan should be serviced at 4% interest rate or better and the life of the loan should be for 10 years.

Sales Estimates

With a service counter available for takeout, the expected average sales revenue is $250,000 over the first 3 months of business, and $1 million in revenues over the first year. Factoring in costs, including rent and loan… [END OF PREVIEW] . . . READ MORE

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How to Cite "Launching a Mexican Cafe" Business Plan in a Bibliography:

APA Style

Launching a Mexican Cafe.  (2019, May 14).  Retrieved September 19, 2020, from

MLA Format

"Launching a Mexican Cafe."  14 May 2019.  Web.  19 September 2020. <>.

Chicago Style

"Launching a Mexican Cafe."  May 14, 2019.  Accessed September 19, 2020.