The Devil Restaurant

1. Executive Summary
1.1 Business Innovation

Korean Bibimbap, a new restaurant that is featured by healthy Korean food aims to provide white-collar workers with convenient service and business leisure under the help of e-commerce and efficient management. The main characteristics of Korean Bibimbap is as follows.

● Korean Bibimbap is set up as a restaurant selling healthy Korean meal sets at an acceptable price. Nowadays white-collar workers are faced with a dilemma on where to have dinner. On the one hand, despite the cheapness of food in staff canteen, some white-collar workers have been fed up with its distastefulness. On the other hand, many white-collar workers also complain that they can’t afford the food in restaurant because of its high price. Combined with high stress and long time of work, such a dilemme now has contributed to many health problems in white-collar workers. Based on the analysis of this situation, Korean Bibimbap will provide healthy Korean food in varied prices and an agreeable environment for white-collar workers to enjoy.

● Following the trend of e-commerce, Korean Bibimbap will use a electronic system including website and integrated management system for prospect background. Customers can not only come to the real shop for dinner but also place order through the internet. It deserves to be mentioned that online order service is still at its primary stage of development in China. This system will bring as much convenience as possible to consumers and in return expand the business of Korean Bibimbap.

2. Mission and Vission

Our first responsibility is to provide every customers healthy food at a fair price as well as the pleasure of eating. We will make sure that every consumer receives a warm welcome on walking in our restaurant. We value employee’s active efforts on bringing health as well as pleasure to customers, and on spreading healthy diet culture to the world. We would like to join hands to advance and retreat as one with the development of our restaurant. By working closely, we can pave the way for a better prospect of our restaurant.

1.3 Food Stucture

As its name suggests, at the start-up stage the main food provided in my restaurant is Korean Bibimbap sets, varying in variety and price. Korean Bibimbap will use advanced equipments to prepare and store food material on large scale without affecting the flavor and nutrition of Korean Bibimbap. More over, some special snakes will also be offered as a complement to deversification of food. At the expansion phase, Korean Bibimbap will add more food lines to the menu list.
1.4 Market Analysis

The restaurant market is a competitive market with low entry barriers, where new restaurants emerge rapidly and compete with the existing ones. Base on the SWOT analysis, a successful restaurant should have both distinctive food and high quality service at least. Besides, exposure to lage numbers of mobile population also accounts for the success of some famous restaurant. To take all these into consideration, Korean Bibimbap decides to target on white-collar workers in International Trade Center in Beijing.

5. Management

The management team mainly comprises five parts: administrative department, marketing department, human resource department, financial department and purchasing department, each of which has its specific responsibilities. Periodically, Korean Bibimbap will have personnel training, especially for these senior managers and gradually establish a comprehensive training system. At the same time, Korean Bibimbap will strengthen and perfect information management system on different levels, so as to facilitate the smooth and efficient operation.

1.6 Financial Planning

Total investment for the first year is one million, which comprises 0.7 million from partnerships and 0.3 million of bank loan. At the early stage, Korean Bibimbap has to pay regular interests to investors every month. At the second year, Korean Bibimbap will have paid off all the debts and continue to operate the business with acculmulated capital.

7. Risk Analysis

Major problems may come from the potential pandemic outbreak, some irresistible natural factors, external large-scale maligant competition, management risk, financial risk and policy risk. In order to minimize the negative effects of potential problems and risks, Korean Bibimbap will have special training on relevent staff to improve their ability to predict and evade risks.

1.8 Conclusion

In short, Korean Bibimbap is a restaurant combined with healthy food and advanced management, targeting on the white-collar workers. With the joint efforts of all staff, Korean Bibimbap will have a good market prospect and further development in the future.

2. Business Description

1. General Descriprion of the Business

Korean Bibimbap is a new restaurant featured by health and convenience, aiming to provide white-collar workers with convenient service and business leisure under the help of e-commerce and efficient management.

● Target Consumers

More often than not, white collar workers is more likely to eat out. For modern white-collar workers, they lay more emphasis on both convenience and nutrition. At the same time, they are also curious about exotic flavour and attach importance to deliciousness of food. They also don’t have too much economic problem, so medium priced Korean Bibimbap will not make them hesitate too much.

● Site Selection

Because the target customers of Korean Bibimbap are white-collar workers, the location is finally decided as International Trade Center, which is known as one of the biggest office building areas.

● High Quality Services

All the staff have to be energetic and enthusiastic young people, who will have united training course about providing good service and should be interested in, if not familiar with, Bibimbap culture. Various characteristic services will be offered from the customers entering Korean Bibimbap till their departure. Furthermore, Korean Bibimbap will provide convenient online reservation and take-away services.

2. Industry Background

As a traditional industry, the restaurant industry has played important roles in the economic development. In the long term, the strong growth of restaurant industry will continue. There are two major reasons as follows:

● Although There are many restaurants in Beijing, the amount of people eating out is still a small proportion of the total population. With the further development of economy, there will be still great potential for new restaurant to win decent profits.

● From the perspective of demand, people will attach more importance to diversified, healthy and quality food. These demend will contribute to the further development of the restaurant industry.

In coclusion, the restaurant market is a competitive market with low entry barriers, where new restaurants emerge rapidly and compete with the existing ones. However, there is still great space for new restaurants as long as operators make efforts to establish their own features and improve the quality of service.

3. Goals and Potential

● Vission

To bring health and happiness to the world.

● Mission

To bring health by providing delicious food;
To bring happiness by providing better services.

● Core values

Healthy Delicacy

Our first responsibility is to provide every customers healthy food at a fair price as well as the pleasure of eating.

Consumers First

We will make sure that every consumer receives a warm welcome on walking in our restaurant. We measure our work against how much satisfaction our consumers get from our services. The satisfactory smile of customers will be our best encouragement forward.

Enthusiasm and Dedication

It is the enthusiasm and dedication of our employees that keeps our restaurant going and expanding. We value employee’s active efforts on bringing health as well as pleasure to customers, and on spreading healthy diet culture to the world.

Teamwork

We would like to join hands to advance and retreat as one with the development of our restaurant. By working closely, we can pave the way for a better prospect of our restaurant.

4. Uniqueness of Product

The distinctive food of Korean Bibimbap is featured by its nutrition and convenience. On the one hand, Bibimbap is nutritious food with low calories, for the main ingredients of Bibimbap are various vegetables. Compared to KFC and other kind of cuisines, Bibimbap lays more emphasis on nutrition and health. According to latest study, Korean chilli paste can stimulate the palate of people and in some sense improve the immunity of people. On the other hand, Bibimbap is also a delicious and convenient food to be offered at a short time. While operating the business, we will prepare some ingredient in large numer beforehand and use special equipment to store them. As Korean Bibimbap becomes stronger, more food series will be added, like Korean barbecue, to the menu of restaurant.

3. Marketing

1. Research and Analysis

3.1.1 Target Market

|Location |First tier cities, like Beijing, Shanghai, Guangzhou |
|Target consumer |Young customers with a certain economic strength and emphasis on convenience and quality of |
| |life |
|Concrete plan |The intended customers are white-collar workers in International Trade Center in Beijing |

3.1.2 Five forces analysis

● The rivalry among competing sellers is fierce.

In Beijing, we can find large numbers of restaurants that vary in operation scale, cooking style, service speed, food price and so on. Only the quantity of KFC amounts to 150, not to mention the total number of various restaurants.

Moreover, some popular and distinctive restaurants such as Mcdonald, Yoshinoya and California beef noodle king, have established good images and play important roles in Beijing’s restaurant industry. In order to attract customers, these restaurants also actively adjust the flavour of their food and develop new food products.

● The threat of new entrants is strong.

It’s quite easy for new restaurants to enter the industry. For small and medium-sized restaurants, they only require small capital to start their business. For those with strong capital strength, they can also attract lots of customers by providing tasty food, good service and good environment. As long as these large-size restaurants win good reputation, they can expand their market and set up more chain restaurants.

● Competition from substitute products is strong.

Just as is analyzed above, there are too many types of restaurants in Beijing, so customers can easily find similar food products. Just take KFC and Mcdonald for example. If the price of hamburger in KFC all declines, customers of Mcdonald may rush to KFC, vise versa. Customers are free to decide on which kind of food to eat, for example, Chinese food or Japanese cooking. The more similar restaurants there are, the more choices customers have.

● The bargaining power of suppliers is weak.

The major supplier in restaurant industry is the ingredient supplier. There is a large pool of suppliers for the restaurant operators to choose, so the increase of ingredient price can only affect the operation of a restaurant in a small way. Some restaurants like KFC even have factories of their own for producing major ingredient (chicken).

● The bargaining power of buyers is strong.

There is a buyers’ market. despite the fact that with the increase of income, more and more people tend to eat out rather than cook by themselves. More people afford to consume in different restaurants than before and flock to some distinctive restaurants and look upon them as symbol of identity. The customers still have many choices of their own on account of price, service and cnvenience.

In conclusion, the collective strengths of the five competitive forces are moderate. On the one hand, the restaurant market is a still competitive market with low entry barriers, where new restaurants emerge rapidly and compete with the existing ones. On the other hand, there is still great space for restaurants to expand market, as long as they make efforts to establish their own features and improve the quality of service. Based on the five forces analysis, the conclusion is drawn that it’s profitable for new comers to enter the restaurant industry.

3.1.3 Driving forces

The major driving forces of restaurant industry are as follows:

● Changes in cost and efficiency

Increase in cost will make restaurant managers faced with greater pressure to raise the price of their products. In turn, changes in price may lead to changes in the number of consumers. Decrease in efficiency can directly affect the quantity of consumers. Other conditions being equal, restaurants with more effective service are more welcome than those without.

● Consumer preference changes

People’s preference to food are different and can change at any time. Those restaurants who have single product can hardly maintain customers in the long term. To avoid the loss caused by consumer preference changes, restaurant should develop new variety of products as much as possible but without removing the feature of the restaurant.

● Changing societal concerns, attitudes and lifestyles.

Nowadays consumers become more concerned about the food safety. Any negative news about restaurant industry may have big effect on consumer behaviors. Recantly it has been reported that many restaurants were using illegal cooking-oil for food. From the perspective of consumers, some people tend to avoid eating out after hearing about the news.

In conclusion, it is most important to attract and maintain customers for running restaurants. It is also important for restaurants to adjusted the variety of their food according the changes in consumers’ need,.

3.2 Competition

In this part, I will first have a SWOT analysis on two potential competitors. One of them is KFC, while the other one is Last Tile ( a hot pot restaurant). Then I will have a SWOT analysis on my own restaurant. Based on all these analyses, I hope to provide an insight into the potential competition.

|SWOT |KFC |Last Tile |Korean Bibimbap |
|Strength |Strong brand name; Advanced |Excellent service; |Distinctively healthy food; high |
| |business model; Advantageous |High quality of food; Reasonable |service quality; |
| |location; Convenient |price; | |
|Weakness |Food structure; |Large sum of starting capital is |High cost;Insufficient brand |
| | |required |awareness; |
|Opportuni-ty |Take away service; |Take away service; |People’s pursuit of healthy food; |
| |Internet development; |Internet development; | |
|Threat |Changes in consumers’ attitudes; |Negative news about its food; |Strong competition ; |

3.2.1 SWOT Analysis on KFC

As a famous fast food restaurant, KFC has won popularity all over the world. In the 1980s, KFC entered the China’s market and set an good example for the participants in restaurant industry. In the following analysis, a SWOT analysis on KFC will be given so that new comers of the restaurant industry can learn from its success.

● Strengths

Strong Brand Name: KFC

The tasty fast food and excellent service provided by KFC have contributed to its good image and great success. In terms the type of food, only Macdonald is strong enough to be compared with KFC in the whole restaurant industry. Furthermore, KFC has been dedicated to developing new product to satisfy tastes of consumers in different countries. At the same time, convenient service also palys an important role in impressing and maintaining consumers. The idea that the consumer is god has been always carried out by the working team of KFC.

Advanced Business Model: Franchise

This kind of business model has helped KFC successfully expand its market through the world. On the one hand, with little investment, the KFC company can obtain stable income out of the initial fee of franchisee. This makes KFC easier and less risky to operate. On the other hand, KFC company offers franchisees identical training and management, which can guarantee the quality and unity of KFC’s culture and product.

Good Investigation on Market: Advantageous Location

Before setting up a new operation point, KFC will always have a full investigation about the environment of the intended location. Generally speaking, KFC is found in places where it can be exposed to large amount of floating people.

● Weakness: Internal Food Structure

As a fast food producer, KFC can not change the fact that fast food is defined as junk food. To make it worse, it’s almost impossble for KFC to change the food structure which is exactly the distinctiveness of KFC. As people come to pay more atteion to the health of diet, how to solve this internal contradition may be the key effort of KFC in the future.

● Opportunity: Take-away Service

On the basis of real shop, KFC also operate the take-away service. Consumers can order a meal by just telephoning the KFC. This service will make up the insufficiency of real shops and expand its market in real matter.

● Threat: Changes in Consumers’ Attitude and Lifestyle

Although KFC has many strengthes for its success, it still faces the threat of changes in consumers’ attitudes towards fast food. The idea that fast food is not healthy enough may change comsumers’ choice. In recent years, negative news about KFC all the more affected the consumers’ behavior. How to address these bad effects well will be of great importance to the long-term success of KFC.

Except for that, KFC also faces the threat of strong competition from other fast food restaurants like Mcdonald. As KFC and Mcdonald offer similar products, the need for them to distinguish from each other is strong and always there.

3.2.2 SWOT Analysis on Last Tile

Last Tile is a Chinese hot-pot restaurant. Since it was first found in 1994, Last Tile has achieved great success over China. As a typical Chinese restaurant promoting green and health, Last Tile has many successful experience to be learnt by other Chinese restaurants.

● Strengths

Excellent Service: Consumer is the god.

The Last Tile company put quality service at the first place. This can be shown on the snacks offered while waiting, constantly changing tower and all the rest of it. The warmhearted meticulous service attitude creates a sort of warm atmosphere. High quality service is one of the most striking features of Last Tile.

High Quality and Reasonable Price

The main food of Last Tile is the typical Chinese hot pot. Consumers may have different choices, and more importantly its deliciousness serves as a important means for attracting consumers. In addition, the price of Last Tile is relatively acceptable for majority of average paople.

● Weakness

It’s really hard to find out any obvious weaknesses. If there must be one, it would be that starting Last Tile requires a larger sum of capital, compared to KFC. But we should also see that the business model of Last Tile has its own benefits.

● Opportunity

As more and more people begin to care about their health, which is consistent with the ideals of Last Tile, people would rather choose restaurant like Last Tile than go to fast food restaurant like KFC. In the long term, the healthy and green food in Last Tile may be in the furturistic trend.

● Threats

Trust crisis may be a threat to the Last Tile. Not long ago the news report about the blending material of hot pot has affected the image of the Last Tile. Similar problem should be avoided in the future.

To conclude, after the SWOT analysis on KFC and Last Tile, we can see that a successful restaurant should first have delicious and distinctive food and high quality service. We can also learn from their weaknesses. Considering that the starting capital of Korean Bibimbap may not be enough, the business model of KFC can be copied and online order may also be made use of. Furthemore, as people lay more emphasis on health of food, Korean Bibimbap advocating healthy food and healthy life can be a strong competitor to fast food restaurants. This is a weighted average analysis on KFC and Last Tile.

|Restaurant industry | |KFC |Last Tile |
|Key Success Factor Measure |Weight |Score |Weighted |Score |Weighted |
| | | | | | |
|Quality/Product Performance |25% |8 |2 |8 |2 |
|Reputation/Image |23% |8 |1.84 |7 |1.61 |
|Distribution Capability |14% |7 |0.98 |6 |0.84 |
|Product Innovation Capability |18% |7 |1.26 |7 |1.26 |
|Customer Service Capabilities |20% |7 |1.4 |9 |1.8 |
| | | | | | |
|Sum of Assigned Weights |1 | | | | |
| | | | | | |
|Key Success Factor Totals | |64 |7.48 |61 |7.51 |

3.3 Marketing Plan

3.3.1 Scale of Business

Generally speaking, the actual scale of restanrant will be decided on the amout of initial capital and development stage. At the start-up phase, it is the small and flexible business model, which needs moderate sum of capital and mainly operates on Bibimbap. At the epansion phse, it is to establish a big real shop and to offer a variety of food, ranging from Bibimbap to different kinds of Korean food.

3.3.2 Advertising and promotion

It is rather important to let customers to know that Korean Bibimbap is healthy food. And being healthy will be the key factor to differnetiate Korean Bibimbap from any other kind of restaurants and attract potential customers. That’s why Korean Bibimbap will make efforts to make publicity about Korean Bibimbap.

Specificly speaking, I will send leaflets to potential customers and hold some discount rates activities. If possible, I will also through the internet or television promote culture of healthy food including Korean Bibimbap to the public.

3.3.3 Pricing

As the targeted customers are white collar workers, the price of Korean Bibimbap will range from 10 to 30 yuan or at average 20 yuan. There are two reasons:

● There are still many white-collar workers refusing to eat out because of its high price. In order to gain these potential customers, Korean Bibimbap will adopt reletively price at 10 yuan. At the same time, we will also provide a variety of food at different prices to satisfy different customers.

● The advanced equipent for scale production can save as much cost as possible and the average cost of Korean Bibimbap is estimated as 8 yuan. This low cost makes it possible for Korean Bibimbap to price as low as 10 yuan.

Chapter 4 Operation

4.1 Business location

As is stated in the marketing part, Korean Bibimbap will be located in International Trade Center. There are several reasons for this decision. Firstly, there are groups of office buildings in International Trade Center in Beijing, which means there are large numbers of white collar workers. That feature is in accordance with the target customers of Korean Bibimbap. Secondly, as a sophisticated office building area, the International Trade Center have people from different culture, who are more likely to accept new concept and exotic food. Thirdly, there are three great ingredient markets in International Trade Center area, from which means we can easily get ingredient supplements

2. Personnel

The following chart is the manning table.

|Department |Position |Num. |Responsibility |
|Administration |General Manager | 1 |All the tasks inside and outside the restaurant, |
| | | |including supervision, training and management on |
| | | |manpower. |
|Marketing |Market Manager | 1 |Formulation and execution of short-term plan for sales |
| | | |promotion |
| |Subordinate Staff | 2 | |
|Human Resources |HR Manager | 1 |Staff recruitment and training, formulation and |
| | | |execution of rewards and punishment to staff. |
| |Subordinate Staff | 1 | |
|Finance |Financial Manager | 1 |Raising and planning funds, making financial analysis |
| | | |and financial statement, operating internal auditing |
| |Subordinate Staff | 1 | |
|Purchasing |Purchasing Manager | 1 |Maintain partnerships with suppliers; purchase and |
| | | |manage relevant kitchen facilities, and procure food |
| | | |material. |
| |Subordinate Staff | 2 | |
|Front Line |Chef | 5 |Spread the concept of healthy diet by providing |
| | | |excellent service and distinctive food to customers. |
| | | |The number of this part will become larger when the |
| | | |restaurant expand business. |
| |Waiter | 8 | |
| |Cashier | 2 | |
| |Dish Washer | 3 | |

5. Management

1. Organization

General Manager

Marketing Human Resourse Finanacial Purchasing Department Department Department Department

2. Management Team

● General Manager ( 4000 yuan/month)

Responsible to the Board of Directors, general manager must assume all the tasks inside and outside the restaurant, including supervision, training and management of manpower. General manager should be able to understand social trends and analyze market. Master’s degree inanagement, relevant work experience and professional ethic are also required.

● Market Manager (4000 yuan/month)

Responsibilities include both formulation and execution of short-term plan for sales promotion. Market manager is required to have relevant marketing experience and innovation ability, and able to keep on good terms with the media.

● HR Manager (4000 yuan/month)

Reponsibilities of HR manager cover staff recruitment and training, formulation and execution of rewards and punishment to staff. HR manager is required to understand psychology of staff and be familiar with human resources management.

● Financial Manager (4000yuan/month)

Responsibilities include raising and planning funds, making financial analysis and financial statement, operating internal auditing. Certificates related with finance and relevant work experience are required.

● Purchasing Manager (4000 yuan/month)

Responsibilities are to establish and maintain partnerships with suppliers, purchase and manage relevant kitchen facilities, and procure food material.
3. Investors

The operation of Korean Bibimbap will depend on two main funding resources: one is bank loan which accounts for 30% of total fund; the other is partner funding for 70%. For the both, Korean Bibimbap will pay interest and profits to them every month.

6. Financial

1. Financial need

●Start-up phase

Starting capital: one million yuan

Type of funds: Equity: 70% Liability: 30%

Sources of funds: the main way to raise funds is through partnership for 70% of total amount and bank loan for 30%. 0.7 million yuan will be funded by individual partners while the number of partners will be decided accordingly.

● Expansion phase

By July 2013 when all debt will have been paid off, we will use accumulated capital to operate the restaurant. While having further accumulation, the restaurant will recruit more staff and expand the scale of restaurant. And most of all, we will make efforts to develop new food variety.

2. Income Statement ( refer to appendix for detailed statistics)

Take income statement for the year ended March 31, 2013 as an example.

● Sales revenue

The total revenue for the year ended March 31, 2013 is 6020000 yuan. No sales returns and allowances are not considered.

● Total expenses

Total expenses here include rent, payroll, utilities, taxes and supplies. Specificlly speaking, the total expenses for the year ended March 31, 2013 is 3076400 yuan.

● Net profit

According to the equation that net profit equals sales revenue minus total expenses. The net profit of first year is 2943600 yuan.

6.3 Balance sheet and cash flow ( refer to appendix for detailed statistics)

● Assets

In the first year, furnishing the restaurant and purchasing basic equipments will cost 140000 yuan which comprises main part of the fixed assets. Another 360000 yuan will be paid for the rent of the whole year which is part of the current assets. Plus the rest of original capital and sales revenue, the total assets by March 31, 2013 are 4169800 yuan.

● Liabilities

In late 2012 and early 2013, the total liabilities include bank loan and total expenses. However, in June 2014 all the bank loan will have been paid off.

● Equity

In the balance sheet, the total equity is 700000 yuan.

4. Break-even analysis

Take the first year as example. The average price of Korean Bibimbap in Korean Bibimbap is designed as 50 yuan, while the variable cost of Korean Bibimbap is at 20 yuan. As is showed in income statement of 2013, the fixed cost is estimated to be 168000 yuan per month. Because there is no cost in question, the computing formula becom: FC=(SP-VC)S

0= (SP-VC)S-FC =(20-8)S-168000 =12S-168000 168000=12S 14000=S

We can see from the calculation above that break-even is 14000 units per month which means every day almost 466 units of Korean Bibimbap must be sold out. If not, there will be loss.

5. Budgets ( refer to the appendix for detailed information.)

Budgets of Korean Bibimbap mainly comprise rent, payroll, utilities, taxes and supplies. Along with the development of Korean Bibimbap, the expenses on utilities, taxes and supplies will increase year by year, while the rent and payroll will keep relatively stable because of need of accumulationof capital. The detailed information will be offered in the budgets statement and please take a closer look at it if necessary.

7. Critical Risks

7.1 Potential problem and risks

Major problems include the potential pandemic outbreak, some irresistible natural factors, external large-scale maligant competition, management risk, financial risk and policy risk. This part will focus on the following risks: operational risk, financial risk and policy risk.

● Operational risk

In an industry with low threshold, Korean Bibimbap is likely to face great pressure brought by strong competition from other restaurants and changes in demand. Any mistakes in operation and manageent may lead to loss and even failure.

● Financial risk

For the newly established restaurant, any amount of withdrawl capital can result in shortage of funds, thus restricting the development of the restaurant. As for Korean Bibimbap, there are about 30% of capital from bank loan, and 70% from partnership. It may be sensible for Korean Bibimbap to complete original accumulation as soon as possible.

● Policy risk

As a restaurant characterized by foreign food--Korean food, Korean Bibimbap will also face the potential risk caused by national policy, to some extent which may affect consumer behavior. Yet in the foreseeable future, there will still be good climate and large room for exotic cuisine restaurant to achieve success in China.

2. Alternative courses of action

As a saying goes, the bigger the risk is, the more interest it will be. However, in order to avoid most risks and minimize negative effects of those potential risks, Korean Bibimbap will take measures as follows.

● Managment system

Efforts will be made to establish a complete manageent system from three aspects. First of all, we will recruit professional management personnel and set up training system to master and spread the core value of Korean Bibimbap. In terms of restaurant culture, we will insist on the concept of healthy diet and hold regular promotion activities every month. Besides, we will use advanced information management system for daily operation.

● Investors

Compared to the long-term investment, we prefer to attract short-term investment, which may place less pressure and ristriction on operation. Some benefits will be distributed to investors so as to lessen the possibility of withdrawing investment.

To conclude, While taking excellent food and service as top priority, we will also make efforts to improve the ability of management team.

8. Harvest Strategy

1. Possible withdrawal method

At the biginning of establishment, if Korean Bibimbap fails to earn profits on schedule or if it encounters obstacles in developing process, my restanrant may withdraw from business. As 30% of total capital comes from liability, we are more likely to adopt bankruptcy liquidation as a protective measure. However, as it takes time for customers to accept a newly established restaurant, temporary loss will not be the only consideration for Korean Bibimbap to exit the market.

As is showed in financial statements, the total debt of Korean Bibimbap will be paid off by July 2013. If Korean Bibimbap encounters difficulties after that time, we may choose to swicth to other industries or put the restaurant for auction.

9. Milestone Schedule

A Timetable for each phase of the business is as follows:

|Jan. 1-8, 2012 |Site selection; investigation on spot; deposit down payment |
|Jan. 9-11, 2012 |Consult and apply for license from indutry and business department |
|Jan. 18-19, 2012 |Pay full rent after getting the license |
|Jan. 20-30, 2012 |Make job description for head chef; seek for a qualified chef |
|Feb. 1-10, 2012 |Design the standard menu; start considering relevant equipment |
|Feb. 11-15, 2012 |Determine working hours and process |
|Feb. 16-23, 2012 |Decorate the restaurant |
|Feb. 24-28, 2012 |Arrange positions for staff; start looking for waiters |
|Mar. 1-8, 2012 |Staff training |
|Mar. 9-16, 2012 |Equipment procurement and intallment |
|Mar. 17-24, 2012 |Determine suppliers and make advertisements |
|Mar. 25 |Start trial operation for 7 days |

10. Appendix