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 sales revenue from $300,000 to $800,000 annually since our establishment. Our current goal is to open another branch in five years.
Good Chicks is seeking $120,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $480,000 | $680,000 | $920,000 |
| Gross margin | 64% | 64% | 64% |
| Net profit / (loss) | $28,800 | $77,600 | $136,000 |
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 Hyde Park area.
We are a limited liability corporation registered in the state of Illinois. Sunny Brookes solely owns the business, so sole trader registration 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 with $300,000 last year.
Legal structure: LLC
Mission: To deliver exceptional fast food restaurant services to clients in Hyde Park, Chicago, Illinois, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Establish operations, reach initial revenue target of $480,000, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $680,000, and hire additional staff
- Year 3: Achieve operational profitability, 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 worth $61 billion and has a 7% annual growth rate. 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 th least preferred purchase option. The COVID-19 pandemic is partly responsible for the increase in drive-thru preference.
Beating this preference is possible through placing your restaurant strategically in high foot-traffic areas.
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.
The group is aged 18-24, as per the norm for undergraduate university students. 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 Hyde Park 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 brand, wide reach | Higher price point, less personalised |
| Popeyes | Strong marketing, national presence | Generic offering, less specialist focus |
| Portillo's | Competitive pricing | Lower service quality, limited expertise |
Good Chicks's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| 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 maintain this figure for the next two years while we plan future initiatives.
To maintain our target sales revenue figure, we need to make between $66,000 and $70,000 in sales revenue each month. Further broken down, that’s an average of about $2500 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 Hyde Park, Chicago, Illinois, USA market while reflecting the quality and specialist nature of the services delivered. 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 clients searching for fast food restaurant services in Hyde Park, Chicago, Illinois, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Hyde Park, Chicago, Illinois, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $33,600 (7% of projected revenue)
Additional marketing notes:
The 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 Hyde Park 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 $96,000. 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 $3,840 (4)
- SEO: $5,760 (6)
- Pay Per Click Advertising: $9,600 (10)
- Social Media Advertising: $11,520 (12)
- Email Marketing: $3,840 (4)
- Content Creation: $3,840 (4)
20% of our marketing budget goes toward traditional marketing and is allocated as follows:
- Print advertising: $5,760 (6)
- Business cards and flyers $3,840 (4)
- Community engagement events: $9,600 (10)
10% of our marketing budget goes toward public relations and is allocated as follows:
- Charity and donations: $3,840(4)
- Brand partnerships: $5,760 (6)
The 5% of the marketing budget is allocated for miscellaneous costs. The remaining 25% goes toward the marketing team’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 licences and permits for fast food restaurant operations in Hyde Park, Chicago, Illinois, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before trading begins
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 6 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.
Sunny Brookes — Founder & Director
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance during the first three years of trading.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
Wrapping up the Fast Food Restaurant Business Plan
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $480,000 | $680,000 | $920,000 |
| Food, beverage and packaging costs | $172,800 | $244,800 | $331,200 |
| Gross profit | $307,200 | $435,200 | $588,800 |
| Gross margin | 64% | 64% | 64% |
| Salaries and wages | $144,000 | $204,000 | $276,000 |
| Marketing and advertising | $33,600 | $47,600 | $64,400 |
| Rent and utilities | $72,000 | $72,000 | $75,600 |
| Other operating costs | $28,800 | $34,000 | $36,800 |
| Total operating expenses | $278,400 | $357,600 | $452,800 |
| Net profit / (loss) | $28,800 | $77,600 | $136,000 |
Break-even analysis:
- Estimated fixed monthly costs: $20,400
- To cover fixed costs, Good Chicks needs to generate approximately $31,900 in monthly revenue
- Break-even is projected to be reached in Month 5 of trading
Key financial assumptions:
- Revenue growth of 41% in Year 2 and 35% in Year 3 based on planned capacity expansion and marketing investment
- Food, beverage and packaging costs estimated at 36% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs set at 30% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget fixed at 7% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
Funding requirements:
Good Chicks is seeking $120,000 to fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $48,000 |
| Working capital (6 months) | $42,000 |
| Marketing launch | $18,000 |
| Legal, licences, and professional fees | $12,000 |
| Total | $120,000 |