Patrick Bairos

11/25/15
Operations Management
Professor Lavigne

Section I:
I want to open a business. I want to be my own boss, answer to myself, I have many
business ideas. One of them especially pops out from the others. I think it could become a
multimillion dollar company. I want to open a Turkish kebab fast food franchise but there is no
other idea like this in the market right now. People would come in like a normal chipotle or
subway restaurant where they have a few options for food but many toppings to put on them.
These fast food chains like, subway and chipotle, thrive in our economy. This is because one of
two reasons, its fast food but it's still "healthy" and the food is prepared in front of your eyes. I
have an idea to take these food franchises but instead of sandwiches or Mexican I'm going a new
route, Turkish. I will open a kebab fast food restaurant just like these hit franchises. Just to
explain a little about the kebab, in American English, with no qualification refers to shish kebab
which means, cooked on a skewer, whereas in Europe it refers to doner kebab, sliced meat served
in a pita. In the Middle East, kebab refers to meat that is cooked over or next to flames. Now you
have an understanding of the kebab, let me explain my idea into turning this modern Middle East
delicacy into a fast food restaurant. All the meat is going to be pre-cooked on a skewer, chicken
or beef, once meat is cooked and ready we will slice it and throw it on a griddle to seal the juices
in the meat. Then we will prepare the meat and throw it into a steam table to keep warm
throughout the day. After choosing your meats and bread, you pick from a variety of vegetables
like: coleslaw, lettuce, onions, peppers, etc. Afterwards we will wrap up your meal and send you
on your merry way. This is a genius idea! I've searched the existence of Turkish kebab
restaurants in New England and couldn't find many, the ones I could find were expensive sit

down restaurants so I believe I'm the only one in the market with this idea. This meaning the
kebab fast food restaurant will be a hit once it's up and running, all it will take is: funding,
location, equipment and good advertising.

Section II:
In order to make this kebab fast food restaurant reality rather than a dream is to first find
a good location and all the equipment I'll need to purchase for this restaurant. While looking for a
good location to start this business I ran into a little shop in Plymouth. Its great location for a
healthy alternative fast food restaurant, it's in the Center of the Historic Shopping District in
Plymouth, Massachusetts. So there will be tired/ hungry shoppers looking for something
delicious to eat and be able to sit down. This is a good location for the summer time because
Plymouth is always packed during the summer time because of tourists going there to Basque in
all its history. That's why this location is so great; it's in the center of the Historic Shopping
Center where all the tourists will be. This store is all completely renovated because it was an old
Historic building but it has all new Electricity, HVAC, and up to date sprinklers. There is a total
of 2,550 square feet available on two levels. The first level is 2200 square feet perfect for a little
kitchen area and has enough space for customers to sit and enjoy themselves. The second floor is
only 350 sq. ft. which isn't much but I shouldn't be using the second floor for more than a
refrigerator, freezer and carry other overstock items. This perfect location requires a 24 month
lease term for $3,400 per month. It's kind of pricey but I have faith my company will be putting
up those numbers on a good day. Especially during the summer time when we have a tourist
driven customer base.
Section III:

Now that I found a great location I need to start looking at kitchen equipment. Like how
much it will cost me to purchase this equipment and what do I need to get my restaurant running
efficiently. I've done my research and the equipment I'll need for a kebab restaurant is: a gyro
machine, tortilla press, funnel cake fryer, commercial work tables, steam/ cold food table,
cooking griddle, commercial freezer and refrigerator. Finding all the equipment I need was easy;
finding the best deals on all these products was very hard. I would rather lease my equipment but
it would take too much time and effort to find out prices for all these items. I would need to call
the vendors who are leasing this equipment and figure out what the costs/ depreciation is for all
of this. I figured since I'm not actually going forward with this idea right now there is no need to
find out all that. So for now I've stuck with basic prices to get an idea of the cost of this
equipment. In doing so, I've been bargain shopping and the total of all the kitchen equipment
needed is $18,201.73 not including taxes. I have a list of all the equipment needed and their
costs:

2- Visvardis DE3A 39" Electric Gyro Machine - 140 lb. Capacity-$1,649.00/Each

1- Cast Iron 7 1/2" Tortilla Press-$17.49

1- Carnival King DFC1800 25lb. Funnel Cake Fryer - 120V, 1800W- $399.99

1- 18 Gauge Regency 30" x 96" 304 Stainless Steel Work Table- $199.99

1- 14 Gauge Advance Tabco GLG-303 30" x 36" Stainless Steel Work Table with
Galvanized Undershelf- $357.30

1- Vollrath 38012 ServeWell 2 Pan Cold Food Table- $629.00

1- Eagle Group HT2 Steam Table 2 Well 7000 BTU - Open Well- $629.00

2- G15 15" Countertop Griddle with Manual Controls - $475.99/Each

1- True (TS-72F) - 79" Solid Door Reach-In Freezer - 300 Series - $5,678.99

1- Continental Refrigerator (2RF) - 52" Solid Door Dual Temperature- $6,057.99

After figuring out the entire financial situation I'll need a total of $18,201.73 for kitchen
equipment and for a total years payment on the lease of the building its $40,800.
Section IV:
Luckily for me there is no other fast food company quite like this one. Unluckily is its
very hard for me to find a market for me to compare it too. Ive researched normal Kebab food
Joints and found out they do really well in Foreign Countries and they are just street Carts
basically. Mine will be a walk in fast food restaurant like Chipotle or Subway. So another Market
I am researching is those healthier alternative fast food restaurants. They all seem to do very well
no matter what location they are in. They do better in upper middle class locations but that is
perfect for me because its the location I chose in the Plymouth shopping center is mostly upper
middle class because the shops in that center are expensive coach stores for example and only
people with money and taste go there to shop hopefully will chose my Kebab fast food
restaurant rather than a McDonalds or Burger king because its new and exciting!
Section V:
I have several advertising ideas. One idea is grand opening signs everywhere in
Plymouth, offering kids ten and under a free meal. This is a start for when it comes to
advertising. Offering children ten and under a free meal is a good idea because it gets families to
come in and order. A ten year old child can't drive himself to our restaurant so their parents have
to take them. They'll obviously order our food along with the free meal for their child. Hopefully
we get really busy because of this. Yea we will lose money because of the free meals, but those

families will hopefully advertise for us. Telling all their friends they had a great Turkish meal and
the atmosphere in the store was fantastic. Another advertising idea I have is the same approach
Chipotle have. This would be to take advantage of the whole natural products scheme.
Everything will be advertised as a natural product (which it will be). This will get customers to
choose my restaurant due to the fact its a healthier alternative; much like chipotle and subway!
Section VI:
Now that we have our location picked out through market research, I need to achieve the
demand on my product. In doing so because people get hungry as they walk and shop around so I
must have a great advertising plan like I stated before; kids eat for free. A business plan may
help you launch your business and keep track of your goals and objectives as you work to
expand it. (Jordan Meyers) One thing that doesnt get mentioned a lot but is very important is to
get any business licenses that I might need in order to run my business. The next big thing that
involves businesses big or small is financials. When researching what it takes to open and run
successful businesses money seemed to be the hot ticket item. It takes money to make money so
I will be at an advantage if I already have some capital to work with. By the looks of it, if I plan
to open that Turkish fast food business by the first year I would need $866,613.51. Ill make it
back in the upcoming year its just that my expenses in the first year are so great I need to pay
them off. Small businesses often have to pay quarterly taxes and may be subject to tax
requirements that individuals do not face. Keep records of all of your income and expenses, and
file taxes according to the deadlines of your local, state federal tax agencies. (Jordan Meyers)
Along with paying close attention to my financials it is important to stay organized. It is
important to track and record every transaction that involves the business.

Things like payment records, how much money is made or lost in a given day, how much
product is still in the store, and how much product needs to be ordered are all things that needed
to be tracked in order to keep the business finances correct. I think it is very easy to lose track of
these things because as an entrepreneur it is our job to continue to innovate and make our
business better, and we can get so caught up in this that we forget to pay bills or lose track of
numbers and next thing we know were behind and have to fight an uphill battle. After looking at
what makes an entrepreneur successful and how to run a successful startup business I decided to
look at this topic from a different angle. I think knowing why businesses fail and entrepreneurs
dont succeed is important because it will help us understand how to avoid these problems. One
problem with the startup of a new product, like Turkish fast food, in a market is advertising that
new product, and gets potential customers to bite on the line I'm casting out for them. The
problem with a new product in the market is that no one really knows what that company is
about or what their product can offer the customer. If I were to choose a kind of advertisement I'd
go with; the friendly neighborhood food establishment. Achieving this kind of status will be hard
from the startup. A great idea is I'll advertise a sale for the grand opening where children ten and
under get a free meal. Offering children ten and under a free meal is a great idea because it gets
families to come in and order your food, especially in a shopping plaza. Also, it's a great
approach choosing children because they can't drive themselves to our restaurant so their parents
have to take them. The parents won't come in just to order for the children either; they'll
obviously order a meal along with the free meal for their child. Hopefully, we get really busy
because of this even if half of our inventory for the day is given away. Those families who came
in to purchase food will leave as permanent customers and will advertise for us sharing how
great our food and service is.

Section VII:
The Management team is just as important as anything else. I need a team that can
manage customers and employees at the same time. Ill only be opening one location to start off
so Ill be running as the manager to start off and maybe when and if I expand put those duties off
on my assistant manager for him to run my store. I need to have a team that can work an
assembly line per say. Its going to be run like a chipotle having three to four employees
running the line and two to three employees in the back cutting veggies, making coleslaw and
slicing meet off the skewer. Ill either be running the register or out back doing paperwork. I feel
I need to be on the floor for the start up because Im very friendly and Ive worked retail for five
years so I know how to talk to someone. I also feel people react very positively to seeing the
owner of a store out on the floor cutting veggies and meat or conversing with customers. My
team of part timers will mostly be teenagers in high school and Ill find someone whos driven
and connected to this company to become the assistant manager because hopefully if the
company grows he will fill in management shoes.
Financial Plan:
My first year it shows I will have a large Net Loss of $125,838.51 but gratefully my
second year I will make up for it having a Net Income of $27,216.49. I believe this is for the
large equipment expense in my first year for having to buy all my equipment to make my
restaurant run efficiently. My third year my Net Income goes down, my guess is I bought to
much product but gratefully the meat has a shelf life of six months so I will not need to worry.
Year four same thing my Net Income drops a little due to buying too much product but

thankfully year five I have a large Net Income of $157,429.15 because I cut down on spending
assuming I have a lot of meat left over from the months before.

Income
Gross Sales:
Customers Per
Day
Days of
Operation per
Week
Weeks of
Operation per
Year
Total Customers
Annually
Average Sale
per Customer
Total Gross
Sales

Year 1

Year 2

Year 3

Year 4

Year 5

250

300

300

300

350

51

51

51

51

51

107,1
00

89,250
$8.30

107,1
00

$8.30

107,1
00

$8.30

5 Year Total

124,9
50

$8.30

$8.30

$740
,775.
00

$888
,930.
00

$888
,930.
00

$888
,930.
00

$1,03
7,085
.00

$4,44
4,650
.00

$5,00
0.00
$225,
076.0
9
$400.
00
$7,40
7.75
$0.00

$5,00
0.00
$216,
874.3
6
$400.
00
$8,88
9.30
$0.00

$5,00
0.00
$216,
874.3
6
$400.
00
$8,88
9.30
$0.00

$5,00
0.00
$216,
874.3
6
$400.
00
$8,88
9.30
$0.00

$5,00
0.00
$227,
874.6
4
$400.
00
$10,3
70.85
$0.00

$25,00
0.00
$1,103
,573.8
1
$2,000
.00
$44,44
6.50
$0.00

Expenses
Advertising
Materials &
Supplies
Licenses, Fees &
Permits
Insurance (1%
of Gross Sales)
Office Expenses

Rent
Utilities
Cleaning &
Maintenance
Legal &
Accounting
Salaries:
Officers Count
Average
Annual Salary
Total
Officers Salaries
Administrative Count
Average
Annual Salary
Total
Administrative
Salaries
Staff Count
Average
Annual Salary
Total Staff
Salaries
Employee
Benefits (@ 15%
of Payroll)
Payroll Tax (@
7.5% of Payroll)

$40,8
00.00
$7,56
2.50
$10,0
00.00

$40,8
00.00
$7,56
2.50
$10,0
00.00

$40,8
00.00
$7,56
2.50
$10,0
00.00

$40,8
00.00
$7,56
2.50
$10,0
00.00

$40,8
00.00
$7,56
2.50
$10,0
00.00

$204,0
00.00
$37,81
2.50
$50,00
0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$50,0
00.00

$250,0
00.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00
1
$50,00
0.00

$0.00
1
$50,0
00.00

$50,0
00.00
14
$29,58
0.00

$0.00
1
$50,0
00.00

$50,0
00.00
14
$29,5
80.00

$0.00
1
$50,0
00.00

$50,0
00.00
14
$29,5
80.00

1
$50,0
00.00
$50,0
00.00

14
$29,5
80.00

14
$29,5
80.00

$414,
120.0
0

$414,
120.0
0

$414,
120.0
0

$414,
120.0
0

$414,
120.0
0

$2,070
,600.0
0

$69,6
18.00
$34,8
09.00

$69,6
18.00
$34,8
09.00

$69,6
18.00
$34,8
09.00

$69,6
18.00
$34,8
09.00

$69,6
18.00
$34,8
09.00

$348,0
90.00
$174,0
45.00

Depreciation:
Cost of
Equipment
Purchased
Useful Life of
Equipment (X
Years)
Annual
Depreciation

$18,20
1.73

$18,2
01.73

10.00

$18,2
01.73

10.00

$18,2
01.73

10.00

$18,2
01.73

10.00

10.00

$1,82
0.17

$3,64
0.35

$5,46
0.52

$7,28
0.69

$9,10
0.87

$27,30
2.60

Total
Expenses

$866
,613.
51

$861
,713.
51

$863
,533.
68

$865
,353.
85

$879,
655.8
6

$4,33
6,870
.41

Net Income

($12
5,83
8.51)

$27,
216.
49

$25,
396.
32

$23,
576.
15

$157,
429.1
5

$107,
779.6
0

$27,2
16.49
$3,64
0.35

$25,3
96.32
$5,46
0.52

$23,5
76.15
$7,28
0.69

$30,8
56.84
($18,
201.7
3)

$30,8
56.84
($18,
201.7
3)

$30,8
56.84
($18,
201.7
3)

$12,6
55.11

$12,6
55.11

$12,6
55.11

Cash Flow
Net Income
Depreciation
Net Cash from
Operations
Equipment
Purchases

Net Cash
Flow

($125,
838.5
1)
$1,82
0.17
($124,
018.3
4)
($18,2
01.73)
($142,
220.0
7)

$157,
429.1
5
$9,10
0.87
$166,
530.0
1
($18,2
01.73)
$148,
328.2
8

$107,7
79.60
$27,30
2.60
$135,0
82.19
($91,0
08.65)
$44,07
3.54

Cash
Requireme
nts
(Excess)

$142
,220.
07

($12
,655.
11)

($12
,655.
11)

($12
,655.
11)

($14
8,328
.28)

($44,
073.5
4)
Cas
h
Equi
pme
nt
A/D
Equi
p.
R.E.

$44,07
3.54
$91,00
8.65
$27,30
2.60
$107,7
79.60

(a)

(b)
(c)
(d)
(e)

operations strategy, competitive priorities, and positioning the firm in the marketplace
a. operations strategy: A plan specifying how an organization will allocate resources in order to support infrastructure and
production. An operations strategy is typically driven by the overall business strategy of the organization, and is
designed to maximize the effectiveness of production and support elements while minimizing costs.
b. competitive priorities:
c. Market positioning: an effort to influence consumer perception of a brand or product relative to the perception of
competing brands or products. Its objective is to occupy a clear, unique, and advantageous position in the consumers
mind
process choice
capacity determination;
location and layout: Section II
Inventory, distribution, and total quality management systems.
Demographic Plymouth Mass:
o population 2014; 507,022
o persons under 18 years; 22.5% = 114,080
o Housing Units; 202,448
o Home ownership rate; 77.1% = 156,087 (means a lot of home owners have a flexible income)
o Median household income; $75,092
Property taxes Plymouth mass:
o Tax rate 2015 15.54%
Total years payment: $40,800. (*.1554 = $6,340.32)
o Exemptions:
Small commerce exemption; 10% of assessed value of properties (no more than 10 employees, value less than
$1 million)
[example] $40,800 (15.54% - 10%) = $2,260.32 property taxes paid for year end