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Lily’s Udon

Executive Summary

Lily’s Udon will open up its first restaurant location in San Jose, California, heart of the silicon valley and home to 1,000,000 people. Due to the scarcity of udon restaurants in San Jose we feel that we will definitely attract a crowd of all ages and ethnicities. We will be an udon based restaurant while also serving Japanese-American fusion style dishes. The goal of Lily’s Udon will be to offer the best udon in the Silicon Valley at an excellent price, along with great customer service. We will benefit the community by attracting newcomers from other areas, and we will also advertise for many other local companies increasing the amount of business there is overall in the bay area. Our ideal customers would be honestly people of all ages; from toddlers to senior citizens. The reason for this is because noodles have been known to be an easy, comforting food to eat which makes it a versatile food choice for anyone. We will serve fresh, delicious udon bowls at an amazing price, and we will serve from lunch until dinner, being an option for people to eat at during most of the day. Our business will do great in San Jose because like we mentioned before, there is no other udon based restaurant in the area. This mean that Lily’s Udon will have high demand from the enormous population. Another reason why we’ll do great is because we are in the heart of the technology industry! We will have advertisements at different companies, and we will also work with transportation/food applications such as Uber Eats, Door Dash, Grubhub, and many more. We are going to be extremely tech friendly which is awesome considering how almost all striving businesses are computer/phone based. One last reason why our restaurant will thrive is because we will serve udon cafeteria style. People will wait in line, order/customize their bowls, add any sides or order anything else they want from the menu, sit down and eat, and then leave. It’ll be a quick come-and-go style restaurant; perfect for the fast-life of San Jose. Our family and staff has the knowledge and the connections to lead Lily’s Udon to success in the Silicon Valley.

I - The Contemporary Business Environment

Business Name Lily’s Udon Description of Business Lily’s Udon will be located in the heart of the Silicon Valley; San Jose, California. Our udon restaurant will offer delicious udon bowls and excellent customer service to anyone who steps foot into our door. Udon and many other Japanese-American side dishes will be served throughout the restaurant Form of Business Ownership The business will be a limited liability corporation (LLC). I will have two of my close friends and some of my family run the restaurant together. My two friends I am partnering up have immense knowledge in the restaurant business, and the family members I am hiring have accounting experience, along with experience with the human resources and public relations department. My two friends will be the rotating managers considering the fact that they’ve been restaurant managers before; they’ll be in charge of the floor arrangement, the bussers, bartenders, and kitchen workers. They’ll also assist any customer in need by being on the floor most of the time. My aunt will be our accountant, and my cousin and other aunt will be in charge of getting our business out there. They’re experts within public relations so we know they’ll do a great job attracting business to our restaurant. I, myself, will be in charge of most business and money related operations. I will make sure everyone is doing their job, and I will see if we are maintaining upward success as a restaurant. Ideal Customer Everyone will be our ideal customer! Any age, from toddler to senior citizen, will be able to enjoy our delicious, comforting udon bowls. All of our customers get to watch their noodles, soup, and other delicious food get hand made right before it’s served to them; solidifying the top quality freshness our restaurant has to offer. We will also have a full bar in the middle of the restaurant encouraging an exciting night life aspect to the restaurant. But that’s not all, we will also serve boba milk tea! Within the past decade, boba milk tea has been extremely popular within all age groups in San Jose; so offering this will definitely attract a crowd!

Our Advantages Our main advantage is that we will be the ​only ​udon based restaurant in the area! A.k.a no competition in terms of udon style noodle bowls. We will be a cafeteria style, make-it-yourself style fast paced noodle restaurant. We will match the fast lifestyle of many workers and families in the busy Silicon Valley, allowing customers to come and leave as they please, or to sit and enjoy themselves in our nice indoor or outdoor dining areas. The meals will be at a great price and the quality of the food will be excellent as well; everything from the noodles to the broth to the veggies will all be housemade right in front of the customers. One thing that will also attract customers will be the restaurant environment; it will have a very modern environment, and we will support many bay area sports teams making it a fun environment for sports fans (Warriors, Giants, Sharks, Niners) Lily’s Udon will be a traditional Japanese Udon restaurant with a modern American bay area twist to it! Ethical Issues Never will our restaurant use any cheap, low quality food products; all of our food will be locally grown, or freshly made, from the food to the drinks. Though this might be expensive toward the restaurant, we believe it will benefit us attracting customers from the bay area and beyond. We also understand that California has been in a drought these recent years, and because of this we will conserve water as much as we can, only using the amount needed for dishes and making fresh noodles. We will also only offer water to customers at their own request. We want to promote fresh ingredients and an eco friendly environment. One last thing relating to an eco friendly environment will be solar panels on the roof of the restaurant; we think that solar power will be an efficient source of energy for Lily’s Udon! Social Responsibility Our essential goal is to spread good food and a happy, positive attitude throughout San Jose, hoping that it will continue to spread outside of the bay area. When people eat good food, they’re happy. We want to be the source of the happiness. We will also work with Second Harvest Food Bank by accepting canned food donations to help the hungry and homeless. We will also have community entertainment within our restaurant; whether it’s getting the community together to watch a sporting event, or having live music/dance performances, we will do what we can to bond together the people of San Jose with great food and entertainment.

Global Issues Lily’s Udon will be only located in San Jose in the short run, depending on how successful it is; right now we can’t really tell if there’ll be any issues. In the long run, if we ​are ​successful, we still wouldn’t predict global issues because we wouldn’t branch out too far, and all of our restaurants will be helping the earth with its eco-friendly environment.

II - The Business of Managing Mission Statement The mission of Lily’s Udon is to provide the best quality udon at an amazing price to the people of the Silicon Valley. Lily’s Udon will support everything in the bay area/Silicon Valley from the companies to the customers and culture. Business Goals First Year Goals :

1) To make positive revenue/profit (Breaking even would be good, but making more would be the main goal)

2) To become well known in the Silicon Valley (Customer relations, Yelp, etc.) 3) To be extremely efficient with great quality food and prices, and to also be as

eco-friendly as possible Intermediate to Long-Term Goals :

1) To earn sufficient net profit/revenues to maintain stability or even better for the next 3 years

2) Within 5 to 8 years, we want Lily’s Udon to be known worldwide. Opening other restaurants is still questionable, but recognition from other countries would be a goal.

SWOT Analysis for Lily’s Udon

ORGANIZATIONAL STRENGTHS Extremely skilled management team and employee force. Easy ordering and modern dining experience make it aesthetically pleasing to any customer

WEAKNESSES Parking might be busy considering that San Jose is a large, busy city (Downtown location) Rent and expenses will be extremely high considering that the location is in San Jose

ENVIRONMENTAL OPPORTUNITIES Customers will like the “make it yourself” style soup, and the homemade freshness and authenticity of our noodles Being in the “heart of technology,” Lily’s Udon has great potential of attracting customers through social media and company advertisements

THREATS San Jose’s high rent/living expenses sets high revenue standards for the restaurant Summertime in San Jose is really hot, and this may push away customers from wanting a hot bowl of soup

Management

1) FOH Manager (Front of House, Bar, helping run food, etc.) 2) BOH Manager (Back of House, kitchen manager, food supplies, etc.) 3) Grand Manager (Business operations, restaurant improvements, FOH/BOH

management, etc.) All 3 managers will be co-owners as well Organizational Chart

Grand Manager Front-of-House Manager Back-of-House Manager

Bartender / Server (Food Runner & Helper) Saute Chef / Noodle Maker Host / Busser / Cashier Soup Broth Maker / Desserts

Dishwasher

Floor Plan

Raw Materials and Supplies 2 Cash Registers - $250 each 4 Deep Fryers - $500 each 3 Refrigeration Units - $2,000 each 1 Freezer - $1,800 1 Dishwashing Unit - $4,200 14850 100 Small Glasses - $1.50 each 100 Large Glasses - $2.00 each 100 sets of silverware/chopsticks - $10.00 each 100 sets of plates/bowls - @ $14.00 each Bar Equipment- Estimated $6,000 Total = $23,250 As a restaurant trying to promote organic food and quality freshness, most of our food inventory will be carried in restaurant from local farms and food distributors. All of our food will be shipped fresh and made fresh right in the house. We will be closed on major national holidays, but food delivery will never cease to take our inventory and keep our items fresh in the restaurant. Quality Assurance Quality will be ensured whether it’s the service or the food. The Front-Of-House manager will make sure all servers, bartenders, cashiers, and bussers are providing friendly, great service. The Back-Of-House manager will ensure that the quality of the food will be top notch, and that the workers from the head chef to the dishwasher will always put 100% into all of their work. Together, we will all work together to make sure Lily’s Udon is one of the best restaurants in the Silicon Valley.

III - People in Organizations Corporate Culture Our culture will be based around strong morals and ethics; no matter what position a worker is in, we will always try our best to demonstrate a positive work ethic. We will always be looking for ways to improve every aspect of our restaurant, as well as making our dining experience one that is unforgettable. Lily’s Udon will be a fun environment where people can enjoy fresh food, drinks, and bond with their community. “Monkey See Monkey Do” Logic We believe that positive, ethical behavior is definitely contagious. When other workers and customers see our restaurant's positive vibe and how our workers are, we believe our positivity will spread onto other people, and so on. As a community, we must remember that everything starts with the individual. If individuals starting acting in a positive manner, then it’ll move to groups, and then eventually whole communities. We see Lily’s Udon as a catalyst for a positive attitude and we’d also love to emphasize an eco-friendly environment. Job Descriptions FOH Manager (Front of House) ​: The FOH Manager will be responsible for the front of the restaurant and all of its people/entities. They will control worker schedules, watch over hosts, servers, bussers, and bartenders, and they’ll also help open and set up the restaurant, tidying up chairs and tables along with cleaning decor and the floor. They will also keep inventory of bar drinks, and look over cash register/tip money as well. BOH Manager (Back of House) ​: The BOH Manager will be responsible for the back of the restaurant and all of its people/entities. They will control kitchen worker schedules, watch over all chefs and dishwashers, and they’ll also plan out any food specials and prep the food for the day. They’ll also open up the kitchen, clean up the area, and keep inventory of all food and equipment. Grand Manager ​: The Grand Manager will watch over both FOH and BOH Managers, as well as all other workers. Their greatest concern will be all business related inquires and interactions; hiring accountants, bookkeepers, etc. They’ll be in charge of all restaurant related improvements, payroll for everyone, and occasionally stopping in to see how the restaurant is doing. They’ll always be looking for ways to advertise the restaurant and get its name out to the Silicon Valley and beyond.

Food Runners/Hosts ​: The food runners will be responsible for dropping off people’s food to their table, as well as assisting customers if anything is needed. Along with helping customers, food runners will be responsible for side work (cleaning the bar, closing the soda machine, etc) and folding at least 50 napkins every night. Hosts will be in charge of greeting customers and finding them a table. They’ll also be in charge of the floor plan, accommodating any seating problems, and helping out food runners/bussers if the restaurant isn’t busy. Cooks : ​All of the cooks will be required to come in an hour before opening time and meal prepping for the day. They will also be required to constantly prepare the requested food throughout the day/whatever is ordered by customers. When the restaurant is closing, they will also be required to tidy up the entire kitchen and put away all of the food items and ingredients. Dishwashers : ​They will be responsible for cleaning all dishes in the restaurant, as well as restocking them for everyone to use in the kitchen/front of the restaurant. When it isn’t busy, dishwashers will also take out the garbage, recycling, and maybe even chop up vegetables and help cooks if they’re trained to. Bartenders ​: The bartenders will be in charge of making any drink order desired (we have a full bar). They will also be in charge of keeping inventory of the bar, keeping it clean, and serving customers that sit at the bar. At the end of each night they will tidy up the bar area, close and put away all drinks, and take out any empty bottles & recyclables, Job Specifications Job Title : Front of House Manager (FOH) Needed Skills/Qualifications : ​The Front of House manager will have to be excellent with public speaking, communication, and any form of human relations. They will also need to have at least 2 years of restaurant experience as they will be assisting servers, bartenders, and bussers on the side. The FOH manager will also work very long hours because they will be opening and also closing the restaurant. (They get an hour long break mid-shift) The FOH manager should be able to demonstrate a positive attitude throughout the day and assist customers in whatever they need. Job Title : Back of House Manager (BOH) Needed Skills/Qualifications ​: The Back of House manager will have to have great leadership skills as they will be managing all food operations in the restaurant. Quick thinking and the ability to work well as a leader of a team, as well as having great culinary

knowledge are the main qualities of this position. At least 2 years working in a restaurant or any food related occupation would be needed to fill this position. Job Title : Grand Manager Needed Skills/Qualifications : ​The Grand Manager will be in charge of all business related operations; meeting with suppliers, making deals with advertisers/companies, watching over the workers of the restaurant, making sure the restaurant is getting positive revenue, and vice versa. This position generally requires great human relations skills, and at least 2 years in the restaurant business, along with adequate business/marketing knowledge. Training Employees All employees no matter what position it is will have to be trained in a way where they will be able to work smart and efficiently in whatever they’re doing. As we pick up more and more employees, they will learn and shadow the “original” employees so they can pick up how to do their job. Employees will also be allowed to implement their own ideas into the workplace giving them more freedom to do things how they want (as long as it doesn’t affect our work ethics and it’s correct) Compensation Each of the 3 managers will start off with a $40,000 per year as salary; Living in San Jose isn’t cheap at all, so this may seem pretty low. The 3 managers will also get a percentage of tips from the restaurant, and they will also be able to work overtime hours to acquire more pay. All other positions except for the accountant will start at $10.50 an hour not including tips. As we become a more successful restaurant, the starting pay will continue to increase each year. The accountant will make $15.00 an hour; considering that this accounting position is part time, we will keep the pay steady at $15.00. Incentives Money isn’t everything. We want our restaurant to be like family, and we want a fun, work environment for everyone. We will have special occasion restaurant parties; like Christmas parties, a Super Bowl get together, and so much more. Lily’s Udon being a really big promoter of sports and other tech companies, this will give us connections to events like San Francisco Giants games, Golden State Warriors games, and other cool tech events. We see employee bonding as an excellent way of helping our workers enjoy their work even more.

IV - Principles of Marketing Target Market Our target market will range from high schoolers to senior citizens. We will offer a modern, yet subtle restaurant environment that any age of customer can enjoy. High schoolers can hang out with their friends and drink boba milk tea, and senior citizens can come in if they want a fresh bowl of noodles. High schoolers and college students are into modern, cool hangout spots where they can just “chill” and eat/drink milk tea. This will be one of our largest target markets because we’ll be located near many high schools and 2 college universities, San Jose State University and Santa Clara University. Adults from the ages of 25 to 50 can enjoy the aesthetics of the restaurant and enjoy freshly made udon bowls. They can come with family, co-workers, and friends to hangout and watch sports or just relax. Product Features and Benefits Lily’s Udon will be the only udon-based restaurant in San Jose! This means that no one else will offer specialized, fresh udon in the Silicon Valley. We believe that this scarcity will lead to more business for us, and the freshly made udon for the amazing price we’ll be selling it at will help business even more. Pricing Our prices will be amazing low for the quality of udon we will be selling, and the prices on all other food/drink items will be low as well. Along with the cheap pricing, we will offer Groupon and Restaurant.com offers for some of our items, discounting people’s meals. We understand that San Jose is one of the most expensive cities in the United States, so why not give these people a break and offer low priced, high quality food. Place (Distribution) Issues Our restaurant will be located in the heart of the Silicon Valley; to reflect our technology based city, our restaurant will be really modern with a slight futuristic vibe. With so many businesses, travelers, and locals around, we feel like there will be no distribution issues as many customers will stop by and give us the business we need.

Advertising We will have one major way of advertising… social media! We will promote our restaurant through most social media applications such as Yelp, Facebook, Instagram, Twitter, Groupon, Snapchat and so much more. We live in the heart of the tech world, and a majority of people living in San Jose are on their smartphones or computers, so they’re bound to see our restaurant on any of these social media platforms. Promotion We will have a happy hour from 5PM - 8PM promoting people from nearby businesses to come by after work, and we’ll constantly promote our restaurant through Groupon and Yelp. We will also offer sidewalk seating for anyone who wants to enjoy any street festivals that occur in downtown San Jose; when people see customers outside our restaurant having a good time and enjoying the food/drink, it will definitely attract a crowd. We will also offer discounts on food to any military members, Google or Apple workers, and senior citizens. Along with this, we will offer special offers on Yelp that will make customers want to come in and use it (they will validate this offer by “checking in” on Yelp, letting other people know they’ve come to Lily’s Udon)

V - Managing Information IT Resources Like we mentioned in the ​Advertising ​segment in part 4, we plan on using IT as our main source of advertising and business relations. Yelp, Groupon, Facebook, Instagram, and many more platforms will be used as resources to get our business out there in the Silicon Valley. Computers and smartphones, especially here in the Silicon Valley, will be all the IT resources we need for a successful business. Customer Service Our customers will always come first, so no matter what we will always try to accommodate any of our customer’s wants and needs. Our restaurant will also be very community based, so we will always get to know our customers and treat everyone with the same respect they deserve. We believe that this will also bring regulars to our restaurant, and they’ll tell their family and friends, giving us even more business. It all start with the customers. Everything in the restaurant will be quality assured and based around pleasing the customer; from the attitudes of our workers to the quality of the food, we will always be working to do anything we can to satisfy the customer.

One of the first specials we are going to implement into our restaurant are L.U. Cards, specialized stamp cards that you can get stamped after each visit. After a certain number of stamps, you can choose any of the rewards on the main menu board. (Options will be listed, for example, free milk tea drink, or a free bowl of soup, etc.) This is just one of the specials we will do, we will implement many more in the future. Cost of Doing Business

Expenses Expected Monthly

Cost Expected Yearly

Cost

Rent 900 10,800

Salaries and Wages 18,000 216,000

Supplies 200 2,400

Advertising and Other Promotions

200 2,400

Utilities: Heat, Electricity, etc.

700 8,400

Telephone and Internet 150 1,800

Insurance 362 4,344

Total 20,512 246,144

Expected Revenue We are expected to have around 200 customers a day on regular to busy nights, and roughly around 130-150 on slow nights. We believe that customers will be spending an average of $10.00 for a typical bowl of soup along with a drink. If we average mainly 200 customers a day with each individual spending around $10.00, then the restaurant will have revenues of $728,000 per year. Rounding down, if we have around 130 customers per day at $10.00 a customer, we will still have revenues of $473,200

Balance Sheet Assets

Current Assets

Cash in Bank

$65,000 Inventory

$5,000 Prepaid Expenses (insurance)

$2,000 Total Current Assets

$72,000 Fixed Assets

Machinery & Equipment

$14,000 Furniture & Fixtures

$9,000 Real Estate / Buildings

$0 Total Fixed Assets

$23,000 Total Assets

$95,000

Liabilities & Net Worth

Current Liabilities

Accounts Payable

$7,000 Taxes Payable

$6,000 Notes Payable (due within 12 months)

$0 Total Current Liabilities

$13,000 Long-term Liabilities

Bank Loans Payable (greater than 12 months)

$0 Less: Short-term Portion

$0 Total Long-term Liabilities

$0 Total Liabilities

$13,000

Owners' Equity (Net Worth)

$82,000

Total Liabilities & Net Worth

$95,000

Startup Costs Our balance sheet shows total assets of $95,000. Each manager will invest $20,000 each, leaving us with a startup cost of $35,000. ($60,000 invested) Financing We will require a loan of $35,000 to start the business; we will request this amount from a bank and use it toward the restaurant.