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Executive Summary
Good Chicks is a chicken fast-food restaurant integrated into the Hyde Park, Chicago, community. We offer a balance between convenience, affordability, and gourmet food that our customers love.
Sunny Brookes, an experienced fast-food entrepreneur, owns and manages the business. She started Good Chicks in a food truck in 2017 and launched the storefront in 2019.
We chose Hyde Park because of its diverse population. The university students and faculty are a lively group that allows for business at all hours of the day. Locals in this area are vibrant and match the Good Chicks brand well.
Despite the effects of the COVID-19 pandemic, we have increased our annual sales revenue from $500,000 in our first year to $800,000. Our current goal is to open another branch in five years.
Good Chicks is seeking a $120,000 loan to fund kitchen equipment, working capital, and marketing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $878,360 | $915,480 | $956,710 |
| Gross margin | 38% | 39% | 39% |
| Net profit / (loss) | ($11,387) | ($8,224) | $23,759 |
Company Overview
Good Chicks is a fast-food chicken restaurant in Hyde Park, Chicago, Illinois. Our fried chicken attracts University of Chicago students, staff, and locals alike.
Our offering is central to university culture. We pride ourselves on being available 24/7, especially after the pandemic when many businesses abandoned this model. Our proximity to the university places us in a prime spot for late-night dining. Students returning from the bustling nightlife scene in downtown Chicago and those preparing for exams and working on assignments frequent Good Chicks, and we’ve become ingrained in the community since our establishment.
Good Chicks was established in 2017 by Sunny Brookes. Sunny is a former food truck owner who sought to make her business a more permanent addition to the Chicago area.
We are a limited liability company registered in the state of Illinois. Sunny Brookes solely owns the business, so sole proprietorship was considered but has been foregone because of the benefits of an LLC registration type.
Our vision is to create community through dining, as humans have done for eons. We’ve been successful since our inception, generating $500,000 in sales revenue in our first year of operations. However, the COVID-19 lockdown negatively impacted us. Our primary clientele left the city due to the closure of universities and other businesses.
Our steady return to success in years past has been fruitful. We have returned to our previous benchmark of $500,000 in annual sales revenue and surpassed it last year with $800,000.
Legal structure: LLC
Mission: To serve fresh, affordable chicken to students, university staff and residents in Hyde Park, Chicago, building long-term loyalty through quality and reliability.
Objectives:
- Year 1: Consolidate operations, reach revenue target of $878,360, and grow our loyal customer base
- Year 2: Expand service capacity, grow revenue to $915,480, and hire additional staff
- Year 3: Lift net margin above 2%, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The chicken fast food industry serves chicken-based dishes in a convenient fast food format that consumers worldwide value.
The fast-food chicken industry is large and growing steadily. This growth is largely due to increased healthier food options that meet consumer demand and increased disposable income.
Convenience factors are important in the fast food industry. The majority of chicken fast food restaurant purchases are done via a drive-thru. In-store takeaway purchases are a close second, with on-premise consumption being the least preferred purchase option. The COVID-19 pandemic is partly responsible for the increase in drive-thru preference.
We offset this preference through our location in a high foot-traffic area next to the university.
Long-standing fast-food chains are the biggest competitive threat to small fast-food restaurants. They have more resources to maintain their market share and the advantage of brand loyalty, which comes from familiarity.
External factors influencing operations include increasing regulations. Changes in food safety regulations and employee remuneration have greatly impacted the industry. Many chains are facing a labor shortage due to unrest related to remuneration.
Large fast-food businesses have turned to technology to remedy their labor shortage. Patrons can pre-order food or use screens in the establishment for a contactless ordering experience.
Customer analysis:
Good Chicks has three main customer segments, with a wide variation within the segments.
The largest customer segment is students, with this group making up about 50% of Good Chicks patrons. The group is further segmented as follows.
Undergraduate students are aged 18-24. Postgraduate students range between 25 and 35 years old. Students typically have lower budgets for expenditures such as fast food, but their need for convenience is an important factor in their spending decisions.
Students are among some of the most diverse groups, so their food preferences vary.
In terms of psychographic information, students value convenience, late-night services, affordability, and healthy food options. Food delivery apps are extremely popular in this segment.
University faculty and staff are the second largest group of Good Chicks customers, accounting for about 30% of our customer base.
They have more disposable income than university students but don’t make purchases as often. This group ranges between 30 and 65 years old. They are more health conscious than students and value higher quality food, which restaurants should consider when designing their menus.
Group dining and large orders are common among this group. Having facilities to serve these needs will increase the number of return customers in this group.
The smallest group is Chicago residents. A large portion of this group is working professionals who only frequent the establishment after work in the evenings, on weekends, and major holidays.
The spending patterns between local residents and university faculty and staff are similar. Infrequent visits with higher spending are the norm.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Raising Cane's | Established national brand, wide reach | Large chain; standardised menu and hours |
| Popeyes | Strong marketing, national presence | Large chain; less local or community focus |
| Portillo's | Well-known Chicago brand, loyal following | Broader menu; chicken is not the core offer |
Good Chicks’ competitive edge: 24-hour opening, a location beside the University of Chicago, and a menu built around students, staff and local residents set us apart from the established chains listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Trading since 2017 with a storefront since 2019; experienced owner-operator; 24-hour opening beside the University of Chicago; revenue recovered from $500,000 to $800,000 after the pandemic | Weaknesses: Single location; heavy reliance on the student market and term-time trade; thin margins, with losses forecast in Years 1 and 2 |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Good Chicks currently averages $800,000 in sales revenue annually. We aim to hold customer numbers at this level for the next two years, with annual price reviews lifting revenue to about $878,000 in Year 1, while we plan future initiatives.
To maintain our target sales revenue figure, we need to make between $73,000 and $77,000 in sales revenue each month. Further broken down, that’s an average of about $2,400 per day and 200-300 customers served daily.
We have three distribution channels. Most of our sales occur on the premises, accounting for 50% of our total sales. Online click-and-collect and meal delivery apps comprise 35% of our sales revenue. Our proximity to the University of Chicago's main campus creates a unique opportunity to supply university events.
Our premium menu items are used to cater faculty events.
Acquisition and retention is an important part of our sales strategy. We are part of the surrounding community and have customer loyalty, but the sales strategies of businesses with larger budgets continue to pose a threat. This is especially true in the era of social media sensationalism.
We have a loyalty rewards program to encourage repeat purchases. The points accumulate and can be used to make purchases. We operate 24 hours a day to capitalize on the buying habits of all our customer segments.
Pricing strategy: Pricing is set to be competitive within the Chicago, Illinois, USA market while reflecting the quality of the food we serve. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from customers searching for late-night food near the University of Chicago
- Social media — active presence on relevant platforms to build brand awareness and engage prospective customers
- Referral program — incentivized referral program for existing customers; target 30% of new customers via referral by end of Year 2
- Local networking and partnerships — attendance at campus and community events and partnerships with complementary businesses in Hyde Park
- Google Ads — targeted paid search campaigns for high-intent keywords around new menu launches
Marketing budget Year 1: $48,000 (5.5% of projected revenue)
Additional marketing notes:
Good Chicks’ vision is to create community through dining. Our core values are quality, community, curated variety, and customer experience. Our target market of university students, faculty, and Chicago locals inspires our brand identity elements in the following ways.
Good Chicks’ personality can be described as friendly, energetic, and modern. We aim to mirror the community we’re a part of and keep up with their modern lifestyles.
Our annual marketing budget is $48,000. We divide the funds among four marketing categories, which include several marketing activities.
The first marketing category used is digital marketing. 40% of our marketing budget goes towards digital marketing and is split in the following way:
- Website $1,920 (4%)
- SEO: $2,880 (6%)
- Pay Per Click Advertising: $4,800 (10%)
- Social Media Advertising: $5,760 (12%)
- Email Marketing: $1,920 (4%)
- Content Creation: $1,920 (4%)
20% of our marketing budget goes toward traditional marketing and is allocated as follows:
- Print advertising: $2,880 (6%)
- Business cards and flyers $1,920 (4%)
- Community engagement events: $4,800 (10%)
10% of our marketing budget goes toward public relations and is allocated as follows:
- Charity and donations: $1,920 (4%)
- Brand partnerships: $2,880 (6%)
Another 5% of the marketing budget is allocated for miscellaneous costs. The remaining 25% goes toward our external marketing consultant’s performance bonus.
Operating Plan
Organizational Objective Department Activity Duration Deliver high-quality service Daily operations
- Maintain clean, well-functioning restaurant
- Monitor staff performance
Daily Maintain high food standards Food preparation
- Check supplies for freshness before use
- Prepare food with care and attention to quality Daily Operate an efficient, consistent, and profitable inventory Inventory
- Check inventory and record stock
- Order supplies based on anticipated demand
- Create a minimal waste strategy Weekly High staff retention Human resources
- Create schedules for optimal staffing
- Manage changes in schedules Weekly
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Sunny Brookes (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licenses and permits for fast food restaurant operations in Chicago, Illinois, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments kept up to date
Management Team
Owner and CEO, Sunny Brookes.
Sunny has an MBA and 20 years of restaurant management experience. She worked in the fast-food restaurant industry for 8 years before opening the Good Chicks food truck. The truck’s success was so great that it was possible to open a Good Chicks storefront two years later.
Head Chef, Kara Bersten.
Kara has been with Good Chicks since its beginning as a food truck. She has combined her hands-on experience with a culinary degree and management courses. She is responsible for the kitchen and works closely with our operations team to manage inventory.
Assistant Manager, Leonora Wells.
Leonora has a degree in Tourism and Hospitality Management and three years of experience in the fast-food industry. She assists other management staff with lower-level management tasks.
Good Chicks has a single storefront location. Our current operational size does not warrant a full executive management team, so we outsource several functions. We use an external marketing and HR consultant, as well as an accounting firm, to perform the specialized functions that our internal team is not equipped for.
Advisory support: Alongside its accounting firm, the business will engage a business mentor through the local enterprise support network to provide strategic guidance over the forecast period.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $878,360 | $915,480 | $956,710 |
| Direct Cost of Sales | $238,900 | $248,700 | $259,600 |
| Production Payroll | $281,300 | $290,200 | $299,100 |
| Other Cost of Sales | $22,750 | $23,710 | $24,790 |
| Total Cost of Sales | $542,950 | $562,610 | $583,490 |
| Gross Margin | $335,410 | $352,870 | $373,220 |
| Gross Margin % | 38.2% | 38.5% | 39.0% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Advertising/Promotion | $33,600 | $34,700 | $36,100 |
| Other Sales and Marketing Expenses | $14,400 | $14,900 | $15,500 |
| Total Sales and Marketing Expenses | $48,000 | $49,600 | $51,600 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $86,400 | $89,000 | $91,700 |
| Depreciation | $35,600 | $36,514 | $15,643 |
| Dues and Subscriptions | $1,500 | $1,550 | $1,600 |
| Professional Fees | $9,600 | $9,900 | $10,200 |
| Rent | $58,800 | $60,560 | $62,380 |
| Software Purchases | $5,800 | $6,000 | $6,200 |
| Insurance | $13,200 | $13,700 | $14,300 |
| Telephone and Internet Access | $2,400 | $2,500 | $2,600 |
| Utilities | $26,400 | $27,300 | $28,100 |
| Miscellaneous | $9,600 | $9,900 | $10,300 |
| Payroll Taxes | $33,828 | $34,886 | $35,954 |
| Total General and Administrative Expenses | $283,128 | $291,810 | $278,977 |
| Other Expenses | |||
| Consultants | $10,800 | $11,100 | $11,400 |
| Total Other Expenses | $10,800 | $11,100 | $11,400 |
| Total Operating Expenses | $341,928 | $352,510 | $341,977 |
| Profit Before Interest and Taxes | ($6,518) | $360 | $31,243 |
| EBITDA | $29,082 | $36,874 | $46,886 |
| Interest Expense | $4,869 | $8,584 | $6,174 |
| Taxes Incurred | $0 | $0 | $1,310 |
| Net Profit | ($11,387) | ($8,224) | $23,759 |
| Net Profit/Sales | (1.3%) | (0.9%) | 2.5% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $755,390 | $787,313 | $822,771 |
| Cash from Receivables | $121,530 | $127,721 | $133,444 |
| Subtotal Cash from Operations | $876,920 | $915,034 | $956,215 |
| Additional Cash Received | |||
| New Long-term Liabilities | $120,000 | $0 | $0 |
| Subtotal Cash Received | $996,920 | $915,034 | $956,215 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $401,528 | $414,086 | $426,754 |
| Bill Payments | $452,031 | $472,266 | $489,626 |
| Subtotal Spent on Operations | $853,559 | $886,352 | $916,380 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $19,600 | $23,800 | $25,900 |
| Purchase Other Current Assets | $500 | $300 | $400 |
| Purchase Long-term Assets | $81,200 | $6,400 | $7,900 |
| Subtotal Cash Spent | $954,859 | $916,852 | $950,580 |
| Net Cash Flow | $42,061 | ($1,818) | $5,635 |
| Cash Balance | $60,661 | $58,843 | $64,478 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $60,661 | $58,843 | $64,478 |
| Accounts Receivable | $10,540 | $10,986 | $11,481 |
| Inventory and Other Current Assets | $11,400 | $11,700 | $12,100 |
| Total Current Assets | $82,601 | $81,529 | $88,059 |
| Long-term Assets | |||
| Long-term Assets | $249,200 | $255,600 | $263,500 |
| Accumulated Depreciation | ($153,600) | ($190,114) | ($205,757) |
| Total Long-term Assets | $95,600 | $65,486 | $57,743 |
| Total Assets | $178,201 | $147,015 | $145,802 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $22,388 | $23,226 | $24,154 |
| Subtotal Current Liabilities | $22,388 | $23,226 | $24,154 |
| Long-term Liabilities | $100,400 | $76,600 | $50,700 |
| Total Liabilities | $122,788 | $99,826 | $74,854 |
| Paid-in Capital | $65,000 | $65,000 | $65,000 |
| Retained Earnings | $1,800 | ($9,587) | ($17,811) |
| Earnings | ($11,387) | ($8,224) | $23,759 |
| Total Capital | $55,413 | $47,189 | $70,948 |
| Total Liabilities and Capital | $178,201 | $147,015 | $145,802 |
| Net Worth | $55,413 | $47,189 | $70,948 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $878,360 | $915,480 | $956,710 |
| Food, packaging and kitchen wages | $542,950 | $562,610 | $583,490 |
| Gross profit | $335,410 | $352,870 | $373,220 |
| Gross margin | 38.2% | 38.5% | 39.0% |
| Salaries and wages | $120,228 | $123,886 | $127,654 |
| Marketing and advertising | $48,000 | $49,600 | $51,600 |
| Rent and utilities | $85,200 | $87,860 | $90,480 |
| Other operating costs | $88,500 | $91,164 | $72,243 |
| Total operating expenses | $341,928 | $352,510 | $341,977 |
| Interest and income tax | $4,869 | $8,584 | $7,484 |
| Net profit / (loss) | ($11,387) | ($8,224) | $23,759 |
Break-even analysis:
- Estimated fixed monthly costs: $28,500
- To cover fixed costs, Good Chicks needs to generate approximately $74,600 in monthly revenue
- Average Year 1 monthly revenue of about $73,200 sits just below this level; operating profit follows in Year 2 (about $76,300 a month)
Key financial assumptions:
- Revenue growth of 4% in Year 2 and 4.5% in Year 3 based on steady volumes and annual price reviews
- Food, beverage and packaging costs estimated at about 30% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs set at about 45–46% of revenue, reflecting 24-hour opening
- Marketing budget fixed at about 5.5% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; most sales are paid at the point of sale
Funding requirements:
Good Chicks is seeking $120,000 to fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $81,200 |
| Working capital | $24,300 |
| Marketing campaign | $9,500 |
| Legal, licences, and professional fees | $5,000 |
| Total | $120,000 |
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