The Problem Most food establishments are over priced

and inconsistent with their product! How many patrons visit a restaurant

excited for the experience to come only to leave feeling disrespected by bad service, ripped off with low quality high priced food, and cheated by poor preparation and blatant disregard for the products taste and delivery?

Happy Lane DeliJordan LebowitzFree dessert with drink & meal

Mission – To provide an array of delicious gourmet food from all walks of the world.

Vision – We will be the bench mark for high quality, delicious, consistent, well priced food.

Values – Unwavering devotion to uphold our vision and provide the customer with the deserved service and product.

Strategy – Remain consistent and offer free dessert with drink and meal purchase.

Industry

The Happy Lane Deli is modeled after the Lucky Dill Deli, located in Palm harbor, Fl.

In 2010, Maryland’s restaurants are projected to register $8.7 billion in sales.

The U.S. restaurant industry’s sales in 2010 will exceed a half-trillion dollars.

Source: National Restaurant Association, based on data from the Bureau ofLabor Statistics and U.S. Census Bureau

MarketRestaurant patrons that spend

between $10-$15 on a meal.Corporate chain restaurant

patrons.Blue collar workers due to our

large portions, free dessert, fast paced service and moderate price.

Gourmet appetites“We need a consistently good Deli

here; everything is bar food and corporate chains.” (My brother)

CompetitionStrength – Free dessert with drink

and meal purchase. Large portions. Owner has10 years of experience.

Weaknesses – Slightly higher price than other fast paced food establishments.

Opportunities - No deli within 20 minutes of location that compares. Lack of quality, moderately priced food in the area.

Threats – Poor economy

Business Model & Pro Forma Statement

Business Model

Free desert with purchase of drink and meal.

faced paced atmosphere will invite the business crowd and turn tables fast.

Pro Forma Statement

Startup expenses: $55,345.00

Startup assets: $150,000.00

Cash for recurring costs: $272,000.00

Total startup costs:$477,345.00

Profit and Loss Projection (3 Years)Happy Lane Deli

2011 % 2012 % 2013 %

Sales 2,625,150$ 100.00% 2,865,000$ 100.00% 3,000,000$ 100.00%Cost/ Goods Sold (COGS) - 0.00% - 0.00% - 0.00%Gross Profit 2,625,150$ 100.00% 2,865,000$ 100.00% 3,000,000$ 100.00%

Operating ExpensesSalary (Office & Overhead) 380,000$ 14.48% 400,000$ 13.96% 420,000$ 14.00%Payroll (taxes etc.) 35,000 1.33% 45,000 1.57% 55,000 1.83%Outside Services - 0.00% - 0.00% - 0.00%Supplies (off and operation) 600,000 22.86% 750,000 26.18% 850,000 28.33%Repairs/ Maintenance 20,000 0.76% 20,000 0.70% 20,000 0.67%Advertising 100,000 3.81% 100,000 3.49% 100,000 3.33%Car, Delivery and Travel - 0.00% - 0.00% - 0.00%Accounting and Legal 35,000 1.33% 35,000 1.22% 35,000 1.17%Rent 42,000 1.60% 45,000 1.57% 48,000 1.60%Telephone 720 0.03% 720 0.03% 720 0.02%Utilities 80,000 3.05% 80,000 2.79% 90,000 3.00%Insurance 50,000 1.90% 50,000 1.75% 50,000 1.67%Taxes (real estate etc.) 25,000 0.95% 25,000 0.87% 25,000 0.83%Interest - 0.00% - 0.00% - 0.00%Depreciation - 0.00% - 0.00% - 0.00%Other expense (misc.) 20,000 0.76% 20,000 0.70% 20,000 0.67%Other expense (specify) - 0.00% - 0.00% - 0.00%Total Expenses 1,387,720$ 52.86% 1,570,720$ 54.82% 1,713,720$ 57.12%

Net Profit Before Tax 1,237,430 1,294,280 1,286,280 Income Taxes - - - Net Profit After Tax 1,237,430 1,294,280 1,286,280 Owner Draw/ Dividends - - - Adj. to Retained Earnings 1,237,430$ 1,294,280$ 1,286,280$

Cash Flow, 3 yearsHappy Lane Deli

Mo. Mo. Mo. Mo. Mo. Mo. Mo. Mo. Mo. Mo. Mo. Mo. Year Year Year

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3

Sales Factor QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY QTY

$13 Per head 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 4E+05 150% 125%

Cost of Goods Sold$5 Per head

$0

Fixed costs To make changes to the P&L, $3,500 /month Rent$6,000 /month Utilities$4,200 /year Insurance$8,000 /month Advertising

8% /year Interest on loan(s)$500,000 Loan(s)

Variable Costs$25,000 /month Employees 1 1 1 1 2 2 2 2 2 2 2 2 2 3 3$10,000 /month Owner's draw

30% EmplBenefits

Opening Day Balance SheetHappy Lane Deli

Assets

Current AssetsCash in Bank 50,000$ Inventory 250,000 Prepaid Expenses 20,000 Other 10,000 Total Current Assets 330,000$

Fixed AssetsMachinery & Equipment 250,000$ Furniture & Fixtures 100,000 Leasehold Improvements 18,000 Real Estate / Buildings - Other 35,000 Total Fixed Assets 403,000$

Other AssetsSpecify -$ Specify - Total Other Assets -$

Total Assets 733,000$

Liabilities & Net Worth

Current LiabilitiesAccounts Payable -$ Taxes Payable 25,000 Notes Payable (due within 12 months) 10,000 Current Portion Long-term Debt 35,000 Other current liabilities (specify) - Total Current Liabilities 70,000$

Long-term LiabilitiesBank Loans Payable (greater than 12 months) 500,000$ Less: Short-term Portion (35,000) Notes Payable to Stockholders - Other long-term debt (specify) - Total Long-term Liabilities 465,000$

Total Liabilities 535,000$

Owners' Equity (Net Worth) 198,000$

Total Liabilities & Net Worth 733,000$

Key Financial ratiosProfitability: Gross Margin % = 47%

Liquidity: Current ratio = 4.7 – to – 1

Operating Ratios: Inventory Turns = 3.5days

Milestones

Call to ActionCome dine with us and allow

us to remind you what eating out is suppose to be all about!

Visit us at The Happy Lane Deli and receive a free freshly made dessert with purchase of a drink and meal!