Firehouse Subs expansion
Firehouse Subs in Australia
Research Project – Final Plan
Global Management
TABLE OF CONTENTS
Cover Page 1
Table of contents 2
I.
I. Executive Summary
1.1 Introduction
Firehouse Subs is a fast casual sandwich restaurant chain established in 1994 that focuses on hot subs served with meats and cheeses. The headquarters are located in Jacksonville, FL. Firehouse Subs now wants to expand internationally to Australia a region we feel has the right target market, cultural tastes and low barriers to entry for our company.
I.2 Products
Our products are fresh, made-to-order hot and cold sandwiches that appeal to a wide variety of consumers.
I.3 The Market
The fast casual restaurant industry has seen tremendous growth over the past decade. That growth is due in part to the increasing younger population that seeks out the dining atmosphere and convenience that fast casual offers. Firehouse Subs uniquely caters to this target market as well as families that seek healthier fast-food alternatives.
I.4 Management Team
Chris Sorenson – Co-Founder
Robin Sorenson – Co-Founder
Stephen Joost – Vice President and Founding Partner
Don Fox – Chief Executive Officer
Vincent Burchianti – Chief Financial Officer
I.5 Financial Considerations
Firehouse Subs expects to invest $1,500,000 of its own capital to finance lease improvements, equipment, advertising, hiring and training of a staff hired locally to launch and open the first restaurant in Australia.
Firehouse Subs anticipates sales of $540,000 in the first year, $675,000 in the second year, and $810,000 in the third year of the plan. The initial restaurant should break even by its sixth month of the plan and continue to increase sales from that point. Profits for the time period are expected to be $77,146 in the first year, $115,349 in year 2, and $159,025 in year 3. Firehouse Subs is confident that there will be no issues in the areas of cash flow.
Research Project – Final Plan
Global Management
TABLE OF CONTENTS
Cover Page 1
Table of contents 2
I.
I. Executive Summary
1.1 Introduction
Firehouse Subs is a fast casual sandwich restaurant chain established in 1994 that focuses on hot subs served with meats and cheeses. The headquarters are located in Jacksonville, FL. Firehouse Subs now wants to expand internationally to Australia a region we feel has the right target market, cultural tastes and low barriers to entry for our company.
I.2 Products
Our products are fresh, made-to-order hot and cold sandwiches that appeal to a wide variety of consumers.
I.3 The Market
The fast casual restaurant industry has seen tremendous growth over the past decade. That growth is due in part to the increasing younger population that seeks out the dining atmosphere and convenience that fast casual offers. Firehouse Subs uniquely caters to this target market as well as families that seek healthier fast-food alternatives.
I.4 Management Team
Chris Sorenson – Co-Founder
Robin Sorenson – Co-Founder
Stephen Joost – Vice President and Founding Partner
Don Fox – Chief Executive Officer
Vincent Burchianti – Chief Financial Officer
I.5 Financial Considerations
Firehouse Subs expects to invest $1,500,000 of its own capital to finance lease improvements, equipment, advertising, hiring and training of a staff hired locally to launch and open the first restaurant in Australia.
Firehouse Subs anticipates sales of $540,000 in the first year, $675,000 in the second year, and $810,000 in the third year of the plan. The initial restaurant should break even by its sixth month of the plan and continue to increase sales from that point. Profits for the time period are expected to be $77,146 in the first year, $115,349 in year 2, and $159,025 in year 3. Firehouse Subs is confident that there will be no issues in the areas of cash flow.
References: Armstrong, M. (October 28, 2013). Developing menus with Millenials in mind. Retrieved from http://www.fastcasual.com/article/221851/Developing-menus-with-Millennials-in-mind Franchise Council of Australia. (November, 26, 2013). About the FCA. Retrieved from https://www.franchise.org.au/about-the-fca.html GTS Strategy Partners International Law Office. October 8, 2013. Expanding into new markets through franchising. Retrieved from http://www.internationallawoffice.com/newsletters/detail.aspx?g=eb4c77db- 324f- 48bc- 87d8-0149267a2af2 Investopedia.com Lanham, R. (March 2011). Millenials (Millennial generation). Retrieved from http://whatis.techtarget.com/definition/millennials-millennial-generation Mathis, K. (7/2011). Firehouse Subs: ‘No plan for status quo.’ Financial News and Daily Record. Jacksonville, FL. Morrison, M. (May 6, 2013). More Americans Dining Out on Sandwiches Boosts Category Growth You’re the Boss Editors. (Sep. 22, 2010). Did Firehouse Subs Pick the Right Plan? New York Times