Mexican Restaurant Business Plan

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Business Name: La Salsa Fresh Mexican Grill

Executive Summary

This restaurant business plan was created to secure investors to start a franchise business in Eugene, Oregon: the La Salsa Fresh Mexican Grill. It is one of the hottest restaurant franchises to team up with and offers enormous potential in Oregon. Currently, La Salsa is in all of the neighboring states and is still expanding. The Santa Barbara Restaurant Group (SBRG) franchises the La Salsa chain.

Per store revenues for La Salsa range between $400,000 to $1,000,000 depending heavily on location. Estimated start-up costs from SBRG are between $300,000 and $400,000, and require an initial investment of around $600,000. Half of this money will be financed by a small business loan, and the other half will come from private investors. Net profits will be high, yielding an estimated $85,000 a year per store (possibly much more).

Mexican Restaurant Annual Sales and Profit Forecast:

With a solid Mexican restaurant business plan, the new franchise buyer quickly got his business startup loan.

We think the Mexican restaurant business presents a solid small franchise opportunity. Over the next three years we plan on opening between 3 to 10 more units. This restaurant business plan only considers the first units. Actual experience will allow for the creation of more concrete goals later.

Business Plan Sales Forecast

Two La Salsa franchisees have provided helpful information on their sales revenues. One, located in Phoenix, Arizona, said that he has a lot competition in town (Quedoba, Chipotle's, Baja Fresh, etc.). His rough sales were at a very similar level as predicted in the Sales Forecast table. The numbers used seem to be consistent with experience in this industry.

In Eugene, the strongest competitors have not arrived in town yet. If La Salsa is established first it will gain the loyalty of the community, and sales could be considerably higher than those predicted in the Sales Forecast Table.

Monthly Sales Forecast:

Restaurant Business Plan Sales Forecast

Start-up Summary

The owners of the La Salsa chain have estimated overall start-up costs between $300,000 to $400,000. We used those figures for this business plan. The numbers in the start-up cost table below overestimate costs. This leaves room for error, to ensure adequate startup capital will be available.

Mexican Restaurant Start-up Expense Projections



Legal	$5,000
Stationery etc.	$2,000
Brochures	$1,000
Franchise Fee	$20,000
Insurance	$1,000
Rent	$5,000
Development Fee	$10,000
Expensed Equipment	$17,000
Other	$100,000
Total Start-up Expenses	$161,000

Start-up Assets
Cash Required	$102,000
Start-up Inventory	$50,000
Other Current Assets	$0
Long-term Assets	$287,000
Total Assets	$439,000

Total Requirements	$600,000

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