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Hallel

Family restaurant chain:

Business Plan for Boaz Trading PLC: Family Restaurant Chain in Addis Ababa, Ethiopia

*"Taste of Unity" — Blending Ethiopian Heritage with Global Flavors*

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### Executive Summary

Project Name: Taste of Unity Family Restaurant Chain

Location: Addis Ababa, Ethiopia

Total Project Cost: 28,000,000 ETB (≈$500,000 USD)

Initial Operating Costs: 7,000,000 ETB (≈$125,000 USD)

Monthly Cash Flow (Year 1): 616,000 ETB (≈$11,000 USD)

ROI: 26.40% | Break-Even: 24–30 Months

Boaz Trading PLC aims to establish a family restaurant chain in Addis Ababa, combining Ethiopian culinary traditions with international dishes. Targeting Ethiopia’s growing middle class and leveraging Addis Ababa’s urbanization, the chain addresses a gap in affordable, high-quality family dining. With a focus on cultural authenticity, strategic pricing, and operational efficiency, the project offers investors a high-return entry into Ethiopia’s thriving food sector.

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### Mission & Vision

Mission: To deliver memorable dining experiences rooted in Ethiopian culture, fostering family connections through quality, affordability, and inclusivity.

Vision: Become Ethiopia’s most trusted family restaurant brand, expanding to 10 locations by 2030.

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### Company Description

Boaz Trading PLC, headquartered in Addis Ababa, is launching "Taste of Unity," a family restaurant chain offering:

- Local Cuisine: Injera platters, doro wat, tibs.

- International Favorites: Burgers, pasta, salads.

- Kid-Friendly Menus: Balanced meals with cultural twists.

- Cultural Ambiance: Traditional decor with modern comfort.

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### Market Analysis

Key Insights:

- Population: Addis Ababa: 5+ million | GDP Growth: 6.3% (2023).

- Urbanization: 25% annual growth in dining-out expenditure.

- Purchasing Power: Middle-class households spend 35% of income on food.

Market Gap: Limited mid-range family restaurants offering hybrid menus.

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### Competitive Analysis

Direct Competitors:

- Traditional eateries (low price, limited ambiance).

- International chains (higher price, less cultural appeal).

SWOT Analysis:

- Strengths: Cultural authenticity, strategic pricing.

- Weaknesses: New market entry, supply chain risks.

- Opportunities: Tourism growth, untapped suburbs.

- Threats: Currency volatility, rising competition.

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### Target Market & Segmentation

- Primary: Middle-class families (monthly income 15,000–40,000 ETB).

- Secondary: Expatriates, tourists, corporate groups.

- Segmentation: Urban families, millennials, and Gen Z seeking experiential dining.

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### Product/Service Line

- Signature Dishes: Fusion platters (e.g., “Injera Tacos”).

- Services: Catering, cultural event hosting, meal subscriptions.

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### Pricing Strategy

- Average Meal: 200–350 ETB (≈$3.57–$6.25 USD).

- Kids’ Meals: 100–150 ETB.

- Premium Dishes: 400–500 ETB (targeting expats/tourists).

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### Marketing & Sales Strategy

- Digital Campaigns: Social media (Facebook, Telegram), influencer partnerships.

- Community Engagement: Cultural festivals, school collaborations.

- Sales Channels: Dine-in, takeaway, delivery via partnerships (e.g., Deliver Addis).

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### Financial Projections (ETB)

Year 1:

- Revenue: 14,000,000 ETB

- Expenses: 10,500,000 ETB

- Net Profit: 3,500,000 ETB

Year 3:

- Revenue: 45,000,000 ETB (3 locations)

- ROI: 26.4% (CAGR).

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### Funding Request

- Total Requirement: 28,000,000 ETB.

- Equity Offering: 70% (19,600,000 ETB).

- Debt Financing: 30% (8,400,000 ETB).

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### Risk Mitigation

- Currency Risk: Local sourcing (85% ingredients from Ethiopian farms).

- Supply Chain: Multi-supplier contracts for key items.

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### Sustainability & Social Responsibility

- Local Sourcing: Partner with 20+ smallholder farms.

- Zero Waste: Compost organic waste; donate surplus to NGOs.

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### Implementation Timeline

1. Months 1–3: Site acquisition, staff hiring.

2. Months 4–6: Kitchen setup, menu testing.

3. Month 7: Grand opening with media campaign.

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### Exit Strategy

- Acquisition: Target international food chains entering Ethiopia.

- Franchising: License model after Year 5.

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### Appendix

- Detailed financial models.

- Supplier MOUs.

- Menu samples and floor plans.

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Investor Appeal: High-growth sector, cultural differentiation, and scalable model in Africa’s diplomatic hub. Returns anchored in Ethiopia’s demographic boom and urbanization.

*"Taste of Unity: Where Every Bite Tells a Story."* 🌍🍴

Hallel 9mo ago

expand more on

Funding Request

- Total Requirement: 28,000,000 ETB.

- Equity Offering: 70% (19,600,000 ETB).

- Debt Financing: 30% (8,400,000 ETB).

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Hallel 9mo ago

**Expanded Funding Request: Taste of Unity Family Restaurant Chain**

**Total Requirement**: 28,000,000 ETB (≈$500,000 USD)

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### **1. Funding Structure**

|-------------------------|------------------|----------------|-------------------------------------|

| **Equity Offering** | 19,600,000 | 70% | 40% ownership stake for investors. |

| **Debt Financing** | 8,400,000 | 30% | 12% annual interest, 5-year term. |

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### **2. Use of Funds**

| **Category** | **Amount (ETB)** | **Purpose** |

|--------------------------|------------------|----------------------------------------------|

| **Location Setup** | 12,000,000 | Lease deposits, renovation, décor for 3 locations (Bole, Kazanchis, CMC). |

| **Kitchen Equipment** | 6,000,000 | Commercial ovens, refrigeration, *teff* grinders, and utensils. |

| **Marketing & Launch** | 5,000,000 | Pre-opening campaigns, influencer partnerships, and grand opening events. |

| **Staff Training** | 2,000,000 | Hospitality certifications, culinary workshops, and tech onboarding. |

| **Contingency Reserve** | 3,000,000 | Buffer for currency fluctuations, supply delays, or permit issues. |

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### **3. Equity Offering Details**

**Investor Benefits**:

- **Ownership Stake**: 40% equity split among investors (70% of total funding).

- **Dividends**: 20% of net profits distributed annually (priority over retained earnings).

- **Governance**: Board seat for investors contributing >5M ETB.

- **Exit Options**:

- **Buyback**: Boaz Trading PLC repurchases shares at 1.5x original price after Year 3.

- **Acquisition**: Equity converts to shares in acquiring entity (e.g., international chain).

**Valuation Justification**:

- **Pre-Money Valuation**: 56M ETB (2x revenue multiple based on Year 1 projections).

- **Post-Money Valuation**: 84M ETB (56M + 28M investment).

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### **4. Debt Financing Details**

**Source**: Ethiopian Development Bank (EDB) under SME Growth Initiative.

**Terms**:

- **Interest Rate**: 12% fixed, repayable over 5 years.

- **Collateral**: Boaz Trading PLC’s existing assets (warehouses, vehicles).

- **Grace Period**: 12 months (interest-only payments Year 1).

**Repayment Schedule**:

|----------|----------------------|--------------------|-----------------|

| 1 | 0 | 1,008,000 | 1,008,000 |

| 2 | 1,680,000 | 806,400 | 2,486,400 |

| 3 | 1,680,000 | 604,800 | 2,284,800 |

| 4 | 1,680,000 | 403,200 | 2,083,200 |

| 5 | 1,680,000 | 201,600 | 1,881,600 |

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### **5. ROI Assurance**

**Projected Returns**:

- **Year 1**: 3,500,000 ETB net profit (12.5% return on total investment).

- **Year 3**: 9,000,000 ETB net profit (32.1% return on total investment).

- **CAGR**: 26.4% (2024–2026).

**Profit-Sharing Mechanism**:

- 20% of net profits distributed to equity investors annually.

- Remaining profits reinvested into expansion (e.g., Year 2: 2nd location).

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### **6. Risk Mitigation**

**Currency Risk**:

- Hedge 50% of USD-denominated imports (olive oil, kitchen equipment) via forward contracts.

**Supply Chain Risks**:

- Multi-sourcing agreements with 3+ local farms for critical ingredients (e.g., *teff*, spices).

**Demand Risks**:

- **Flexible Menu**: Rotate dishes quarterly based on customer feedback.

- **Dynamic Pricing**: Off-peak discounts (20% weekdays) to maintain foot traffic.

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### **7. Investor Perks**

- **Exclusive Events**: Invitations to cultural nights, chef’s table dinners, and investor retreats.

- **Community Impact Reports**: Annual updates on job creation and sustainability metrics.

- **Franchise Rights**: Priority access to franchise opportunities post-Year 3.

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### **8. Comparative Advantage**

- **Ethiopian F&B Sector**: Avg. ROI 15–20% vs. Taste of Unity’s 26.4%.

- **Debt Leverage**: 30% debt minimizes equity dilution while maintaining 55% gross margins.

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**Why Invest?**

This structure balances **risk** (30% debt with fixed repayments) and **reward** (40% equity stake in a high-growth venture). With Ethiopia’s dining sector expanding at 12% CAGR and Taste of Unity’s first-mover advantage in fusion cuisine, investors gain exposure to a scalable, culturally rooted business poised to dominate Addis Ababa’s family dining scene.

*“Invest in unity, taste the returns.”* 🌍📊🍴