Casa Di Italia

Company Description
Casa Di Italia, a partnership, will be a new type of restaurant for the Baldwin Hills area of Brenthall. It will be an Italian restaurant that features delicious meals for people who are interested in healthy eating. In addition, the restaurant will have a small display area where diners and others can purchase quality Italian food products that are used to prepare the meals served in the restaurant. Casa Di Italia will be located at 881 McCabe Road in Baldwin Hills, a southern suburb of Brenthall, Pennsylvania. Mission Statement

Casa Di Italia’s mission is to serve and sell hi-quality Italian foods at moderate prices in a friendly, healthy atmosphere that offers superior service to customers. Vision Statement
Within five years, Casa Di Italia will be recognized as one of the top five moderately priced Italian restaurants in the Brenthall area. Customer Services
Casa Di Italia is more than an Italian restaurant and grocery. Sixty percent of the menu items will be low-fat, low-sodium entrees. At least two specials will be featured each day. All entrees can be personalized to meet the preferences of individual diners. Many of the pastas, cheeses, condiments, ingredients, and recipes used in the restaurant will be sold in the display area.

The restaurant will open every day from 4 p.m. to 11 p.m., except Christmas and New Year’s Day. A grand opening is scheduled on Friday, September 15. Reservations will be accepted, casual dress will be encouraged, and takeout dinners will be available. Free parking will be offered in a well-lit parking lot around the restaurant building. Casa Di Italia will have a Web site that customers can use to view the menu and specials, make reservations, order takeout dinners, and select food products for purchase. Industry Analysis

Casa Di Italia is part of an industry that has established itself as an integral part of an American lifestyle. More than forty-five percent of
today’s food dollar is spent away from home, and almost half of all adults are restaurant patrons on a typical day. Children, teenagers and young adults are more familiar with restaurants and knew cuisines than ever before and are increasing their restaurant spending. The same is true for the baby boomers and members of the older generation who have been empowered by strong economic growth and gains in income. National GrowthThe restaurant industry enjoyed nine consecutive years of real sales growth as they entered the new century. Sales in 2000 were calculated at $376 billion and are expected to increase steadily to $577 billion by 20120; an increase of 53 percent in ten years. Full-service restaurants accounted for about two-thirds or $253 billion of the 200 sales. Using the same ratio, full-service will account for about $388 billion of the industry sales 2010. Baldwin Hills Growth

The restaurant business in the Baldwin Hills area of Brenthall is growing steadily as more and more people move into the southern end of Young County. A recent survey by the Brenthall Chamber of Commerce revealed that restaurant sales have increased slightly more than twenty-four percent in the southern section of Brenthall during the past five years. The average person in the Baldwin Hills area spent $768 for food away from home last year, and $515 of that was spent in restaurants. The survey results show that Baldwin Hills and nearby communities have seen a five percent growth in population in the past six years. Almost forty percent of the Baldwin Hills households have an annual income of $50,000 or more. People from this economic level make the best restaurant-industry customers.

One major operational challenge that Casa Di Italia is likely to face is being able to find and keep qualified and motivated workers to offer the superior level of service planned. The shortage of competent workers is the downside of the strong economy that has benefited the restaurant industry. Market Share

Casa Di Italia will develop a strong presence in the Baldwin Hills area by serving high-quality, healthy Italian entrees at moderate prices and providing superiors service. The competitive advantage will be strengthened
by the award-winning chef who has agreed to work at Casa Di Italia. Target Market

Casa Di Italia target’s a variety of people, but for the most part the target customers have these characteristics: * Located in the Baldwin Hills area
* Make buying decisions based on quality, service, and convenience * Part of the middle to upper socioeconomic group
* Between the ages of 25 and 70
* Married as dating couples
The census data for Young County show the following characteristics for the population in the restaurant’s primary service area: * 57% of the population is between the ages 25 and 69
* 75% or more households have an annual income of $35,000 or higher * 49% of the population is married
* Italian heritage is the third-highest ethnic group in You County * 17% of the families are working married couples with children at home * 13% of the families are working married couples with no children at home * 20% of the households are singles living alone

The Italian Warehouse offers mostly pizzas and calzones. It offers a limited Italian menu at low prices in an environment where service is not as important as price. The Pepper Garden is a regional chain restaurant with an established name. It serves moderately priced meals, caters to families, specializes in spaghetti and lasagna entrees, and has an open salad and dessert bar that appeal to young children as well as parents. Mike’s Pasta has a menu similar to that planned for Casa Di Italia, but it is located in an area where only on-street parking is available. Carbonara an upscale shopping mall. Carbonara is the restaurant we want to emulate for quality of food and service. Casa Di Italia will be able to offer a similar menu, but with healthier choices, and similar service at lower prices since Casa Di Italia’s occupation costs are much lower than Carbonara’s. Furthermore, Carbonara Ristorante is located five miles from Casa Di Italia’ therefore, the competition from it will be lessened. Sestilli’s restaurant opened last year; it serves targeting. One competitive advantage Casa Di Italia will
have is parking—Sestilli’s offers only valet parking. Direct Competition

Casa Di Italia will face strong competition from area restaurants, especially Italian restaurants, and specialty food stores. There is won store specializing in Italian foods within a five-mile radius of Casa Di Italia. Four of these are well established and two have opened with the past two years. Spot checks during peak dining hours reveal that all but one is attracting customers in adequate or large numbers. Four of the restaurants offer free parking in a restaurant lot, one offers valet parking only, and one has only on-street parking availiable. One restaurants serve high-priced meals, four serve moderately priced meals, and one offers low-priced meals. None of these restaurants has a specialty food store housed within the restaurant. Four restaurants take reservations, one has call-ahead seating, and one does not take reservations in any form. The six nearby Italian restaurants and their distance from Casa Di Italia are given below. * The Italian Warehouse- – 2.5 miles to the east

* The Pepper Garden- – 1.3 miles to the northeast
* Mike’s Pasta House- – 1.6 miles to the west
* Carbonara Ristorante- – 5 miles to the north
* Calabro’s- – 3.6 miles to the southwest
* Sestilli’s Restaurant- – 4.3 miles to the northwest
Indirect Competition
Casa Di Italia will face some indirect competition, especially for the takeout portion of the business. The indirect competition will come mostly from the grovery stores in the area that offer an extensive array of prepared entrees attractive to customers wanting takeout. Casa Di Italia will be able to offer a higher quality meal with greater consistency at a slightly higher price than the grovery stores. In addition, Casa Di Italia meals are healthier and fresher, and the entrees can be personalized. The five area grocery stores offering prepared entrees are listed below. * Stop and Shop– 2.4 miles

* Grocery King– 0.5 miles
* Storeland–4.7 miles
* Kunkle’s– 3.6 miles
* Bestfoods–1.5 miles
In addition, the retail store aspect of Casa Di Italia will compete with businesses that sell food products via the Internet, magazines and newspapers, and direct mail. Casa Di Italia’s retail business is directed mostly to those customers who eat at the restaurant and want to purchase the same food products for use at home. Familiarity and satisfaction with the quality of Casa Di Italia’s food products will be a competitive advantage.

While competition is high in the restaurant industry, there is room for a specialty restaurant that serves healthy, high-quality food on a consistent basis at moderate prices. Oftentimes, when the owner’s expertise is the same or similar, those who try the hardest and have the most determination are those who succeed. The owners of Casa Di Italia have the necessary expertise, have a high level of determination, and will put forth the effort needed to be successful in the restaurant industry. Marketing Plan

Casa Di Italia will distinguish itself from similar businesses by having a sound marketing strategy. The combination of the restaurant and retail sales will make us different from other area Italian specialty restaurants. The abundance of healthy entrees on the regular and special menus will make us attractive to a large segment of the population that is becoming increasingly concerned about health issues. These differences, along with moderate prices, superior service, and a convenient location with free paring, will be emphasized in the marketing plan. Casa Di Italia Meets Customer Needs

Casa Di Italia’s marketing plan will emphasize that we meet the customer’s needs. That is, we will meet their needs for high-quality, healthy foods that are moderately priced: * At a convenient location in Baldwin Hills

* With free, safe parking
* In a confortable, casual, quiet atmosphere
* With superior service
* With entrees that can be personalized
The retail store operation will be marketed primarily to customers who frequent the restaurant for in-house dining or takeout, since this operation is designed to complement the restaurant operation. Pre-Grand Opening Event

One week before opening Casa Di Italia to the public, the owners will host an invitation-only night for VIPs who are community leaders and business owners or managers. Approximately one hundred invitations will be issued with reply cards for the Pre-Grand Opening dinner event. This function serves two main purposes: * To let community VIPs know about Casa Di Italia so they will advertise by “word of mouth” to expand the potential customer base. * To provide the chefs, wait staff, and other employees with training and practice to reduce problems and concerns when the restaurant opens to the public. Grand Opening

A Grand Opening Ceremony is scheduled so Casa Di Italia will begin on July 15—two months prior to the Grand Opening. The Baldwin Hills Water Company will permit us to enclose an insert in September water bills announcing the restaurant’s opening to area residents.

A Grand Opening sign will be placed in front of the restaurant by July 15 announcing the opening of Casa Di Italia. The sign will be visible to those traveling on McCabe Road, a main artery into Brenthall.

An ad with a $5 off coupon on any entrée or store product costing $15 or more will be placed in the three issues of the “Cent Saver” that immediately precede the Grand Opening. A quarter-page ad in the “Cent Saver” every other month.

A one page flyer announcing the Grand Opening will be placed on automobiles at each of the three nearby shopping malls on the two Saturday afternoons immediately preceding the Grand Opening. The cost to prepare and print 4,000 flyers is $125; the cost to distribute them is $60.

Casa Di Italia will place a “buy one, get one free” coupon and sample menu in the next edition of the popular Brenthall South Entertainment Guide.
There is no cost for this promotion other than the cost associated with the coupons used. The next edition will be distributed in September, the month that Casa DI Italia opens.

Casa Di Italia will offer free dinner certificates to the host of the area’s highest-rated morning drive-time radio show. Two coupons will be offered each week to get and keep the Casa Di Italia name and location before the listening public. Magazine and Newspaper Advertisements

The Baldwin Hills area has one local weekly newspaper that accepts commercial advertisements. The Local Town Crier charges $108 for a quarter-page ad, and Casa Di Italia two major dailies exceeds budget allocations. Furthermore, these papers have a much wider geographic market than the one targeted for Casa Di Italia.

The above mix of publicity, promotion, and advertising will give Casa Di Italia the exposure it needs to attract customer from the targeted population and geographical area. Operations
One key factor in the success of Casa Di Italia will be teamwork. Teamwork between the two partners and between the partners and the employees will be stressed to make the business operate efficiently and effectively to meet its mission and vision.

The partners will be actively involved in the operations and will work alongside the employees to ensure the quality and consistency of the meals served and the service rendered. Employees will be expected to treat all customers with respect at all times. Employee-of-the-month recognition, tickets to major events and gift certificates will be awarded regularly to exemplary employees to motivate employees to do their best at all times. Recruitment, Selection, and Training

Beginning by August 15, Casa Di Italia will recruit, interview, and select employees who will begin employment shortly before the restaurant opens. Help-wanted ads will be placed in the local newspapers, with local job placement services, and at the local occupational high school and community
college where students are majoring in culinary arts or hospitality management. One week prior to the Pre-Grand Opening, extensive training will begin, especially for the assistant and prep chefs and wait staff.

Upon employment, all employees will receive a booklet that gives information about the business, mission and vision, menu, and expectations regarding service and food quality. Training to work the register and credit card machine, seat and serve guests, and pronounce and explain menu items and pricing will be provided on an “as needed” basis prior to and after employment.

The purpose of the retail store and knowledge of its products and restaurant policies and procedures will also be included in the training for all employees. In the early stages of employment, each new employee will be teamed with a “veteran” employee who will assume responsibility for continuous training until the employee is fully prepared. The Building

Casa Di Italia will occupy a medium-sized building with four areas for the public ample space for the employees. Public Areas
The dining area is approximately 2,500 square feet and will accommodate 75 diners seated at tables and booths. The retail store space is approximately 225 sq. feet and will have products displayed on shelves that are accessible to customers. The reception and waiting area is approximately 150 square feet. The hostess and cashier stations are located there, as well as seating for ten waiting customers. The restrooms, each approximately 80 square feet, are located near the reception and waiting area. Employee Areas

The back room has ample space for a fully equipped kitchen, a waiter area for submitting and obtaining orders, a laundry and dishwashing section, bread and salad prep area, employee restroom, and a small office for the partners to share. The entire restaurant operation will be on one floor with storage facilities in the basement that are accessible from the back room. The building has a security system for theft, smoke, and fire and is equipped with an up-to-date sprinkler system throughout. Quality Control

Michelle Calvini and Rachel Costanza, the partners, will have control and responsibility for all operations. Scheduling will ensure that one of the partners is present during all hours of operations. When this not possible, the head chef will act on their behalf.

Primarily, all employees except the chefs, partners, and dishwashers will be motivated by tips to ensure the quality of their work. The chefs with supervisory responsibilities will participate in a profit-sharing plan to motivate them to meet the mission and vision of the business. The partners are equal in all respects and will share the profits in addition to drawing equal salaries.

Comment cards will be placed on each dinner table and in the store so customers can make suggestion, register complaints, or commend individuals or operations. (See sample in Appendix A.) Using Technology

Casa Di Italia has a Web page with an easy-to-remember URL: Rachel is the Webmaster and responsible for keeping the contents of the Web page up to date. Rachel will also ensure that employees are trained to use the reservation and e-mail systems that are part of the Web page. hosts the Web page for a monthly fee of $8.95. The URL was registered for a two-year period at a cost $60. The Web page is presently accessible. The URL will be included on all promotional materials, since it is easy to remember once the public knows the name of the restaurant. Management and Organization

Casa Di Italia is a partnership formed by Rachel Costanza and Michelle Calvini, Partner.
Michelle is the daughter of parents who operated a small Italian restaurant for ten years, ending two years ago. Since the age of 13, Michelle worked in various positions in her parents’ restaurant. Her duties included saving as a hostess and waitress, busing tables, baking, dishwashing, and assisting with accounting and promotion. Growing up in a successful in this business and has experienced firsthand the ups and downs of the business.

Michelle has spent one month in Italy during each of the past three summers to observe and work in her uncle’s restaurant in Naples. She learned much about authentic Italian food and the differences in the way it is prepared in Italy and America. Michelle completed her Bachelor of Science degree in business administration with a major in hospitality management this past June. During her senior year, she interned as a marketing assistant at a top-rated Italian restaurant in the Brenthall area.

Michelle’s major area of responsibility within this partnership will be supervising the employees and working with the chefs to prepare the menu that will help the business fulfill its mission and vision. Rachel Costanza, Partner

The second partner, Rachel Costanzo, also has prior experience in the food industry. At the age of 16, she started working part-time for Parks Family Restaurants, a local chain catering to families of moderate means with young children. Rachel worked as a hostess, expeditor, dining room coordinator, bus person, and dishwasher. Often she was asked to assist the managers with managerial tasks.

From her experiences, Rachel understands the importance of meeting customer needs and performing operation tasks responsibly. She understands the high risk of running a restaurant in a competitive area. Rachel completed numerous accounting and computer courses in high school and at the community college where she majored in business administration. Presently, Rachel is enrolled in a Bachelor of Science degree-completion preform with a major in accounting. Her degree requirements will be completed via distance learning to give her the flexibility she needs to work in the business and continue her formal studies.

Rachel will be responsible for accounting, marketing, purchasing, and planning and will serve as manager of the retail store. The Chefs
Two chefs have accepted offers of employment and will begin working at Casa Di Italia one week prior the Pre-Grand Opening. Prior to that, each will serve as a consultant to design the kitchen area, purchase the equipment and
supplies, and establish the menu, and stock the kitchen and store area with food products. The Head Chef

Pietro Calvini has been the head chef for Superiore Casa. During his tenure at Superiore Casa, he marketed his own Italian dressing and pasta sauces to local grocery stores in response to requests at the restaurant. Superiore Casa was ranked as the top Italian restaurant in Brenthall, and Chef Calvini was recognized as Chef of the Year in the Brenthall magazine at the time he left to start his own Italian restaurant.

He and his wife, Maria, opened and operated Ristoranti Di Pino successfully for ten years before closing it for personal reasons. Since then Pietro has been the head chef at Carbonaro’s and establish Casa Di Italia. His expertise in menu planning and food preparation, his knowledge of the competitor the partners are attempting to emulate, and his keen interest in seeing Casa Di Italia be successful makes him an invaluable resource for Casa Di Italia. The Assistant Chef

Tony Pomilio, Assistant Chef, also makes an ideal addition to the kitchen staff of Casa Di Italia. In the past he worked at Ristorante De Pino where Pietro trained him in all operations—busing and waiting on tables, washing dishes, and working in the kitchen—before he was promoted to Prep Chef. Presently, he is working at the Water Street Restaurant, a restaurant serving a variety of foods in a semi-formal atmosphere. Tony’s career goal is to open his own Italian restaurant within six years, and he welcomes the opportunity to work with Pietro to prepare himself for that venture. Management Structure

The owners, Michelle Calvini and Rachel Costanzo, will be involved with all of the day-to-day operations and all aspects of the business. While each has her area of primary responsibility, each is capable of assisting the other. They will work closely together and will share decision-making responsibilities.

By the Grand Opening, Rachel and Michelle will employ 14 individuals: Three
chefs—a head chef, assistant chef, and prep chef
* One hostess
* Six servers
* Two bus persons
* Two dishwashers

The partners have established short-and long-term goals at the end of each quarter. Short-Term Goal
By the end of the first year, the owners are striving to have an income statement that is comparable to the industry average when the percent of revenues for cost of sales, gross profit, expenses, and net profit are computed. The goal is to generate a 7%net profit on $1 million in service will be monitored very closely to help ensure that a reputation of being a high-quality, moderately priced restaurant that offers a healthy menu and superior service is established and maintained. Long-Term Goals

Casa Di Italia will open for lunch as soon as the partners are able to make the financial commitment to do so without jeopardizing the desired percent of revenues that becomes net profit. The primary concerns are being able to afford the additional employee pay and benefits and having all start-up loans repaid before opening for lunch.

Within five years, Casa Di Italia aims to become a well-known, established business labeled as the top Italian restaurant in Baldwin Hills and one of the top five moderately priced Italian restaurants in the Brenthall area. Strategy for Achieving Goals

* To accomplish the short- and long-term goals, the business has these priorities: Superior service at all times to ensure repeat business.
* Retain chefs who can prepare high-quality, moderately priced, healthy Italian meals that meet customer preferences to ensure repeat business. * Market the business to continually attract new customers who will become regular customers. * Change the menu regularly to provide greater variety for customers. Risks

The greatest risks associated with Casa Di Italia, like any other restaurant, are that it may fail as a result of a low number of customers, low-quality meals, poor location or service, and competition that cannot be met.

The partners believe they have selected a good location and employed chefs who will deliver high-quality meals. Furthermore, the owners have a realistic plan to build, maintain, and expand the customer base and the expertise to market the business and orient and train the staff to meet the competition.

The restaurant will open in September, a month that traditionally enjoys good restaurant sales. Furthermore, opening in September will give the restaurant nine months of operations before the summer month, which are usually the months with lower restaurant sale. Financials

Casa Di Italia expects to generate an average of $20 per dining customer. This figure includes an average expenditure of $5 per customer for food store purchases. This additional %5 dining to compensate for the diners who do not purchase products at the store. Takeout diners will also help the owners meet the $20-per-dining-customer goal.

The quarterly income statements presented in Appendix B are based on the following assumptions:
Based on the projected Quarterly Income Statements, the restaurant will generate a net income of $82.8999 by the end of the first year. All of this income will be returned to those who financed the start-up costs of $100,000 will be financed as follows: * $25,000 interest-free loan from each of two equal partners * $20,000 loan at 10% interest from family members

* $30,000 loan at 17% interest from First City National Bank
The partners have agreed that the principal borrowed from First City National and the family members will be paid back before any money is returned to the owners. Therefore, based on the projected income, the
$30,000 principal on the bank loan and the $20,000 borrowed from family members will be fully paid by the end of the first year of operation. The remaining $32,899 will be returned to the partners. It is expected that each partner will get the remaining $17,101 of her investment by the end of the sixth quarter of operations.

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