Tao & Noodle

BUSINESS AND EXECUTION

PLAN

TAO & NOODLE

Adopting a traditional Chinese artistic theme, Tao & Noodle intends to serve a variety of
genuine Chinese foods that represent different regional cultures of China. As more local
Chinese Americans have moved to the southwest area of Las Vegas, there has been a
significant increase of interest in Chinese food culture. Based on that fact, it is convincing
that a Chinese-themed fine-dining restaurant will become a success in this neighborhood.

EXECUTIVE SUMMARY
INTRODUCTION
MENU

MARKET DESCRIPTION
COMPETITION

MARKETING STRATEGIES

MANAGEMENT TEAM

FINANCIAL PROJECTIONS
APPENDIX

EXECUTIVE SUMMARY
Founders
Sam Huang, Hong Yong Sun, Jin Yuan Li
Type of Business
Diner, structured as a limited liability business.
Company Concept
Tao & Noodle will serve as a luxury in the southwest community of Las Vegas.

INTRODUCTION
Tao & Noodle is designed to create a community atmosphere as a Chinese-themed
neighborhood dining attraction. We believe that there is more in Chinese food cultures to
be introduced to this ethnically diverse city. Because our business name, Tao & Noodle
refers to the true meanings of noodle, the major dishes on our menu will consist of a variety of different noodles and buns highlighting the different regions of China. Most of our
noodles will be entirely hand-made.

Due to our insistence on the quality of food, an open-kitchen will be

designed within the restaurant to demonstrate how our foods are made to
all of our customers. Also, we will support local businesses by using local
agricultural products to ensure the quality of our foods and give back to our
community.
Setting the mood of an upscale Chinese-themed diner with decor, Tao &
Noodle will have a 40 seat occupancy with an open-kitchen to demonstrate
the work of our chefs. Our restaurant will showcase red Chinese
pictographic lanterns, artificial cutlery set, and eastern-art decor wooden
furniture.

To keep our costs minimal, we will import all the furniture and decorations from China. We
will also hire more part-time employees versus full-time servers, and at the same time, work
with University of Nevada, Las Vegas to provide more internship opportunities for our local
education system in the service industry.
Based on the 2013 census data for the City of Las Vegas, our selected location within a 3
mile radius contains 30,000 families. The average annual income per family in this area is
$80,000. Over 56% of the populations annual income in this area exceeds $60,000. The
number of individuals that have strong purchase power is 62,000 including 19,000 Asian
Americans, which makes up approximately 24% of the number.

Menu
Our menu will contain but not be limited to the following major dishes:
Zha-Jiang Noodle
Hand-rolled noodle with Chinese flavored
salty fermented soybean paste and raw
vegetables on top to create a rich and
exotic eastern flavored spaghetti without
greasiness.

Eggplant Noodle
Our signature hand-pulled
noodle with eggplant and garlic
sauce, giving you a taste of China.

String Bean Steam Noodle

Hand-rolled noodle steamed with
stir-fried pork belly and string beans. The
savory flavor of the sauce is well absorbed
into the noodles.

Lan Zhou Hand-Pulled Noodle

Our signature noodle soup. Beef soup
simmered for long hours topped with our
hand-pulled noodle, sliced beef and
vegetables to create the most
unforgettable flavor.

Chinese Crepe
A savory crpe stuffed with scrambled egg,
crunchy wonton-style crackers, black bean
paste, cliantro, chives, and pickled veggies.
It is one of the most popular street food in
China.

Beef Pancake
Chinese traditional meat pie stuffed with
flavorful beef filling to create a rich and
unique taste.

MARKET DESCRIPTION
Southwest Las Vegas is a newly developed residential area. Based on the 2013 census data,
the total population is 100,819; approximately 17% of the total population of Las Vegas.
The location under our consideration is situated between two major cross streets in
southwest Las Vegas: West Warm Springs Road and South Rainbow Boulevard. According
to the data of the U.S. Department of Transportation in the past three years (2012-2014),
West Warm Springs Road has daily traffic of 10,000 motor vehicles, while Rainbow
Boulevard has daily traffic of 60,000 motor vehicles passing by the location.
Based on the 2013 census data for the City of Las Vegas, our selected location within a 3
mile radius contains 30,000 families. The average annual income per family in this area
is $80,000. Over 56% of the populations annual income in this area exceeds $60,000. The
number of individuals that have strong purchase power is 62,000 including 19,000 Asian
Americans which makes up approximately 24% of the number.

COMPETITION
Although a variety of Asian restaurants exist in the southwest area, there is currently only
one Chinese restaurant, Noodle Man, to be considered a major competitor. However, due
to the difference in genres of our food and market position as compared to Noodle Man,
we are able to differentiate our target market and collaborate the market share.
Tao & Noodle thrives off of the uniqueness and variety of our foods, our experienced
management team, and a significant Asian American market available to cater. As
previously stated, we bring food from different regions and cultures of China, currently
unavailable to locals. Also, each member of our management team has over 10 years of
successful experience in the food and beverage industry to be more than capable of
operating a new dining restaurant. Lastly, the large and inflating Asian American
population gives us confidence in our business.

MARKETING STRATEGIES
Advertising costs will consist of 1-2% of sales. Beacase radio and print ads are not cost
effective, Tao & Noodle will spend ad dollars in other creative ways:


T-shirts and coffee mugs with Tao & Noodle logo


Postcards of the storefront in an old-fashioned airbrushed style illustration.


Carry-out bags featuring the printed logo with menu stuff-in.


Operations of social media such as Facebook, Twitter, Instagram, Google+,
and Pinterest; along with major search engines and local business reviewing sites such as
Yelp, to create the buzz of our business.


Sponsoring various community projects and events to help with name
recognition.
Ultimately, the best advertising for Tao & Noodle will be word-of-mouth from satisfied
customers.

MANAGEMENT TEAM
The business funding will be a 45/40/15 split between the partners. Sam Huang will
oversee the storefront, while Jin Yuan Li and Hong Yong Sun oversee the operation of the
food making process. Sam Huang and Jin Yuan Li will establish restaurant policies. Sam
Huang, Jin Yuan Li, and Hong Yong Sun will be involved in the design, menu, food
preparation, service and management. The team will also hire an experienced manager to
oversee the operation when the partners are not available. Medical insurance will be
provided for Sam Huang, Jin Yuan Li, and Hong Yong Sun. Any full-time staff members
who has fulfilled one year of employment will be eligible for medical insurance.

Sam Huang:
An entrepreneur with a vision of food and beverage
industry in Las Vegas. Sam graduated from The
University of Nevada, Las Vegas with a Bachelors
Degree in Hospitality, Food and Beverage
Administration. Before Sam had decided to start his
new journey as an entrepreneur, he interned at China
One, Szechuan Restaurant, and Chens Chinese. He
obtained great insight and management skills in food
and beverage management. Sam has also worked as
brand counselor and brand ambassador of the famous
Italian luxury retail brand Bottega Veneta, assisting
with marketing strategies, planning and employee
training.

Executive Chef Jin Yuan Li:

Former chief executive chef of famous restaurant
Grand China ( in Beijing, China. Jin has
been in the industry for over 2 decades. He
immigrated to the United States and worked as
executive chef at Beijing Noodle No. 9 in Caesars
Palace since 2010. As a celebrity chef at Beijing
Noodle No. 9, he showed his skills of hand-pulled
noodle making and was invited to the Vegas Uncorkd
Grand Tasting at Caesars Palace to demonstrate his
culinary abilities.

Hong Yong Sun:

A pioneer of modern fine dining in Beijing with over 30 years of
experience in the food and beverage industry. Before Hongs new
journey in the United States, he owned and managed three Chinese
bistros in Beijing, China. In 1996, Hong was invited to Southern
California to share his knowledge of operating and managing
restaurants with a number of entrepreneurs in the industry.

FINANCIAL PROJECTIONS
The following projections are based on past experiences with business in Las Vegas. The
equipment and leasehold improvement figures are estimates given to the management team
by suppliers and contractors.


Most Conservative Projection of $567,000/year in sales is based on
approximately 100 customers per day (360 days/year) based on an estimated guest check of
$8.75.


Middle Projection of $718,000/year in sales is based on approximately 228
people per day (360 days/year) based on an estimated guest check of $8.75.


Most Optimistic Projection of $1,000,000/year in sales is based on
approximately 317 customers per day (360 days/year) based on estimated guest check of
$8.75.


Inventory Purchases are based on 40% of sales, which is admittedly highthe
goal is to reduce this expense to around 33%.


Labor Costs are based on prevailing wages for necessary employees, hours and
duties based on similar operations. Current government tax rates and insurance quotes are
the basis for the payroll taxes and benefit package.


Growth in sales is figured at a 17% increase per year.
See appendix for a complete breakdown of equipment and start-up costs.
Plans include the purchase of a computer with a software package to do payroll and weekly
inventory. The cash register system will track sales by category. An accountant will be hired
to take care of quarterly payroll and business taxes.

APPENDIX : MASTER COST LIST

Tenant Improvement Work (including kitchen and dining area)
$135,000.00
Furniture
$15,000.00
Cutlery
$10,500.00
Food Inventory
$7,000.00
First Month Rent + Deposit
$7,800.00
Utility Deposit
$2,500.00
Sales Tax Deposit
$4,800.00
Working Capital Reserve
$80,000.00
Computer System & Cash Register
$2,500.00
Health Department Fee
$300.00
Business License & Docs.
$500.00
Insurance
$4,000.00
Stereo System
$500.00
T-Shirts/Mugs
$600.00
Advertising Package
$1,000.00
Miscellaneous Cost
$3,000.00

Total
$311,000