Appendix 5 - Sample Mobilization Plan 1 (Non-service Business)

 

Roma, an Italian restaurant in Batesville, Arkansas

 

Strategic Plan

Including customer analysis, manpower planning, management reporting, personal planning

 

Mission Statement

To provide the Independence County community with high-quality Italian cuisine in a family-friendly atmosphere and allow the owners to achieve personal and financial independence.

 

Definition of Business

Roma is a mid-priced restaurant serving lunch and dinner daily to young families and single adults in the Batesville area (secondary target: greater Independence County community).

 

Goals

To offer a variety of mid-priced dishes representing the bounty of Italian cuisine; to cultivate loyal customers from local residents most in need of a mid-priced, convenient family-friendly restaurant; to provide personal and financial independence for the owners; and to earn a fair rate of return for the investors of the restaurant.

 

Objective 1: Incorporate dishes into the menu representing the diversity of Italian cuisine.

Strategy

• Main menu of 10-15 standard items.
• 3-5 seasonal items.
• 2-3 budget items introduced daily.

 

Objective 2: Moderately priced foods.

Strategy

• Standard items will be priced 10 percent less than competing local restaurants, but will offer 10 percent more food on plate.

• Seasonal offerings will be priced at a premium (30 percent gross margin).

• Budget items will be priced at a very competitive ratio (15 percent gross margin).

 

Objective 3: Personal and financial independence.

Strategy

• Minimum salary of $35,000 for each owner.
• Business and personal savings to total a minimum of $50,000 for each owner.
• Owner salary paid (to family or designated agent) even if he/she called to active duty.

 

Objective 4: Fair rate of return for investors and owners.

Strategy

• Market share of 12 percent.
• Annual sales growth of 20 percent.
• Annual return on assets of 15 percent.
• Monthly cash flow reaching $55,000.
• Monthly customer volume of 2,500.
• Average sale per person of $25.
• Ratio of food cost-to-sales = .2.

 

Objective 5: Exploit the convenience that dual-career families with children and single adults crave.

Strategy

• Promote daily 5:00-6:30 P.M. “early bird” specials to fill restaurant in the slow pre-dinner periods (target single adults who often do not want to bother with cooking for only one).

• Weekend brunches from 10:00 A.M.-2:00 P.M. to maximize appeal to families with children.

 

Customer Analysis

• Identify best-paying (cash) and most-profitable customer segment. Determine who they are, how often they eat at Roma, and what actions would ensure their continued business.

• Personally introduce key customers to restaurant manager who will assume customer service responsibilities in your absence.

• Set aside a minimum of five hours per week to personally develop new business.

• Once mobilized, notify customers via personalized letter.

 

Manpower Planning

• Upon mobilization, management team will consist of the bookkeeper, the restaurant manager, and the accountant.

- The bookkeeper is responsible for daily financial matters and management reporting.
- The restaurant manager is responsible for operational issues involving in priority order: customer service, menu changes, personnel decisions, and vendor activities.
- In addition to analyzing management reports and making recommendations, the accountant is the final authority and responsible for critical functions.

• Business continuation training is expected to take 240 hours as follows:
- Bookkeeper, 95 hours
- Restaurant manager, 105 hours
- Accountant, 40 hours

• Training will commence May 1 and be completed by November 30.

• The temporary management team will meet every Friday at 9:00 A.M. to review the current week and plan the next.

• Accountant will communicate with the mobilized National Guard service member on an as-needed basis.

 

Management Reporting

• During mobilization, financial statements will be prepared monthly (rather than quarterly as they are now) by the bookkeeper and reviewed by the accountant. The following reports will be prepared daily and weekly by the bookkeeper:

Cash flow
Profitability by day, week, and shift
Customer total
Expense summary
Sales-to-employee ratio

• The following reports will be prepared weekly by the restaurant manager:

Employee productivity
Average sale-per-customer
Ratio of food cost to sales

• Reports along with recommendations will be discussed at the Fridaymanagement team meeting.

• The bookkeeper will prepare the following notification letters:

Insurance and professional liability carriers
Banker, investment broker, retirement plan manager, real estate broker, lessors
Creditors
Major health insurance carriers
State licensing boards (if appropriate)
Professional associations and societies

 

Personal Planning

• Meet with accountant by May 1 each year to update the value of the business. Discuss business continuation or sale options.

• Meet with accountant and financial adviser by May 30 each year to discuss personal tax status, method to ensure payroll and federal/state tax deposits are met during mobilization, and allocation of cash to family in Guard member’s absence.

• Meet with attorney by June 30 each year to discuss will and possible trust, ownership transfer in event of death, life insurance policies with potential proceeds, and asset distribution plan.

• Schedule rehearsal during annual Sept. 1-15 training and weekend exercises.