Pie Restaurant Business Plan

The proposed business location for the first UPer Crust store will be in downtown Yubetchatown. Five possible sites are being considered in three areas: the new Yubetchatown Station presently under construction, central downtown Yubetchatown, and the area of Chambers Street and 18th Avenue.

Each will need approximately 500-700 square feet. This area will include freezer space for on-site storage of frozen product. The operating space will consist of an oven, counter and serving area, pie warmers and ambient display cases, cold beverage display, an eating area and a restroom.

The stores will be located on high traffic commuter routes and close to shopping facilities in order to catch customers going to or from work, while they are out for lunch, or on a shopping expedition. The business will operate from Monday through Sunday. Hours of operation will depend entirely on the area and final location of each store.

5.1 Facilities and Equipment

Pie warmers are custom designed and manufactured display cases. Chilled and ambient display cases that house salads, desserts and cold beverages, uniform in design, will also be purchased. Commercial ovens, cash registers and point of sale (POS) accounting systems will be necessary capital asset acquisitions.

5.2 Suppliers and Alliances

UPer Crust Pies is in negotiations with two Michigan Upper Peninsula pie manufacturers to supply frozen pies, rolls and a small selection of dessert pies. It will establish a relationship with a reputable shipping company and a freight agent to aid in the smooth transition of product from the UP to our distribution center.

The company is also currently seeking reputable organizations to supply its stores with fresh salads and desserts on a daily basis, and will also establish contracts with a beverage company to provide popular product brands. Credit and delivery policies will be established; to avoid fluctuating costs the company will endeavor to build a fixed product rate into the contracts.

UPer Crust Pies wishes to establish long-term loyal relationships with its suppliers. Factors such as history, reliability, reputation, delivery system, service, product guarantees and liability issues will be crucial in the final decision. Due to the company’s expansion plans in years two and three, it is important that our suppliers have regional and possibly national coverage.

5.3 Inventory

Our imported products will be stored locally with a company that specializes in cold storage. Lead time for ordering, production, shipping and receiving is expected to be two months, although this will depend on sales volumes and product demand during the first year of business. This lead time will be reviewed constantly and altered in accordance with company expansion and seasonal demands.

Frozen and chilled pastries will be distributed to stores on a weekly basis, dependant on turnover, and will be kept frozen on site. Perishables such as salads and some desserts will be delivered fresh directly to our stores on a daily or two- to three-day schedule. Cold beverages will also be delivered directly to stores according to demand. A small back-up supply of products will also be kept on site.

5.4 Legal Environment

A submission of application for a food license to the State Department of Health will include prepared plans and specifications for review and approval before the construction or remodeling of the initial establishment. The application fee is $300.00.

The State Department of Health will conduct one or more pre-operational inspections to verify that the establishment is constructed and equipped in accordance with the approved plans and in compliance with the Food Code.

The State Department of Health  also requires that each employee possess a Food Handlers Permit. This permit is $10.00 and is obtained after a simple exam.

The company will adhere to the State Department of Health and U.S. Food and Drug Administration Food Code standards. An appropriate insurance policy will also be taken out in accordance with State Department of Health regulations.

5.5 Policies and Procedures

Establishing company policies and procedures will be important the company’s growth and employee development. The following policies and procedures will be adopted:

• Development of an employee policy handbook
• Development of a company procedures and systems handbook
• Clearly defined employee job descriptions, training, reviews and monthly meetings
• An open-door policy for employee suggestions and concerns

The company’s credit policy will be to accept only cash, Visa or MasterCard credit cards.