La Salsa Fresh Mexican Grill
This business plan was created to secure investors. La Salsa Fresh Mexican Grill is one of the hottest franchises to team up with and offers enormous potential in Oregon. Currently, La Salsa is in all of the neighboring states of Oregon and is still expanding. The Santa Barbara Restaurant Group (SBRG) franchises the La Salsa chain.
There are two main reasons that La Salsa will succeed in Eugene: first is the lack of direct competition (nothing like it in town), the second is the high demand for a product like this in Eugene. Eugene is in preparation for a large population growth period, the current population of the greater Eugene/ Springfield metro area is over 300,000 according to Census 2000 and expanding.
The creation of a Limited Liability Corporation (LLC) will shield owners and investors from personal liability. Over the next three years Benjamin D. Strock plans to expand La Salsa in Oregon, developing between 3 to 10 restaurants under the LLC. This business plan only includes the first store plans which will help create more concrete goals. Per store revenues for La Salsa range between $400,000 to $1,000,000 depending heavily on location. Estimated start-up costs from SBRG are between $300,000 and $400,000, and require an initial investment of around $600,000. Half of this money will be financed by a small business loan, and the other half will come from private investors. Net profits will be high, yielding an estimated $85,000 a year per store (possibly much more).
The franchisor, SBRG will control most of pricing, training, building and advertising in exchange for between 8% and 10% of gross sales. Hopefully, the first La Salsa in Oregon will be built and running within three months of the initial financing assuming that a location has been agreed upon by franchisor, franchisee and investors.
La Salsa Fresh Mexican Grill will establish itself as the premier casual Mexican dining restaurant in Eugene while maintaining uncompromising principles as we grow to more than three restaurants. The six following guiding principles will help us measure the appropriateness of our decisions.
- Provide a great work environment and treat employees with dignity and respect.
- Embrace diversity as an essential component in the way that we do business.
- Apply the highest standards of excellence to the food production, preparation, and service to our customers.
- Build lasting relationships with the guests.
- Contribute positively to communities and our environment.
- Recognize that profitability is essential to our future success.
- Set up a LLC to limit investor and personal liability.
- Complete construction less than three months after financing.
- Reach positive net profit in first quarter.
- Become a market leader in Eugene.
- Average $60,000 plus in revenues monthly.
- Increase annual sales between 3-7%.
1.3 Keys to Success
- Location, Location, Location.
- Obtaining bank financing at reasonable interest rates, and securing individual investors.
- Finding and hiring qualified motivated employees.
- Controlling the effective use of marketing dollars to stimulate sales.
- Providing extraordinary food with unparalleled taste.