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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

Risk Mitigation

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

- Supply Chain: Multi-supplier contracts for key items

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Discussion

Hallel 9mo ago

**Expanded Risk Mitigation Strategy: Taste of Unity Family Restaurant Chain**

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### **1. Currency Risk Mitigation**

**Risk**: Fluctuations in the ETB/USD exchange rate could inflate costs of imported ingredients (15% of total sourcing).

**Mitigation Strategies**:

1. **Local Sourcing (85% Ingredients)**:

- **Key Items**: *Teff*, spices, vegetables, and dairy procured from Ethiopian farms (e.g., Awash Milk Cooperative, Bahir Dar Farms).

- **Impact**: Reduces dependency on imports, insulating the business from forex volatility.

- **Partnerships**: Collaborate with the *Ethiopian Agricultural Transformation Agency (ATA)* to improve local crop yields and quality.

2. **Hedging via Forward Contracts**:

- **Mechanism**: Lock in USD/ETB rates for 50% of annual import needs (e.g., olive oil, specialty cheeses).

- **Example**: Secure $20,000 USD at 56 ETB/USD for 12 months via the *Ethiopian Commodity Exchange*.

3. **Supplier Diversification**:

- **Geographic Spread**: Source imports from Europe (e.g., Spanish olive oil) and Turkey to reduce USD dependency.

- **Currency Mix**: Negotiate contracts in EUR or ETB where possible.

4. **Pricing Adjustments**:

- **Dynamic Menu Pricing**: Add a 5% “import surcharge” to premium dishes (e.g., truffle-infused *kibe*) during currency crises.

- **Promote Local Dishes**: Highlight Ethiopian-only platters during forex instability to balance sales mix.

5. **Contingency Fund**:

- Allocate 5% of annual revenue (≈700,000 ETB in Year 1) to buffer against exchange rate shocks.

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### **2. Supply Chain Risk Mitigation**

**Risk**: Disruptions due to droughts, logistics delays, or supplier failures could impact ingredient availability.

**Mitigation Strategies**:

1. **Multi-Supplier Contracts**:

- **Critical Ingredients**: Secure 2–3 suppliers for each key item:

| **Ingredient** | **Primary Supplier** | **Backup Supplier** |

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

| *Teff* | Bahir Dar Farms | Oromia Farmers Cooperative |

| Dairy | Awash Milk | Lakeside Dairy (Hawassa) |

| Spices | Addis Mercato Vendors | Dire Dawa Spice Co-op |

- **Terms**: Minimum order guarantees, quality audits, and penalties for non-compliance.

2. **Buffer Stock**:

- Maintain a 30-day inventory of high-risk items (e.g., imported olive oil, *berbere* spice).

- **Storage**: Invest in solar-powered cold storage units to extend shelf life.

3. **Logistics Diversification**:

- **Ports**: Use both Djibouti and Berbera ports for imports to avoid congestion.

- **Transport Partners**: Contract with *DP World* (priority clearance) and local logistics firms.

4. **Emergency Protocols**:

- **Local Alternatives**: Substitute imports with local ingredients during shortages (e.g., sunflower oil instead of olive oil).

- **Air Freight Reserve**: Set aside $10,000 USD annually for urgent ingredient airlifts.

5. **Farmer Training & Support**:

- Partner with NGOs like *Farm Africa* to train farmers in drought-resistant crops and sustainable practices.

- **Impact**: Increase local yields by 20%, reducing reliance on backups.

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### **3. Integrated Risk Management Framework**

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

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### **4. Technology Integration**

- **Inventory Management**: Use *TradeGecko* software for real-time tracking of stock levels and automated reordering.

- **Blockchain Traceability**: Pilot with Bahir Dar Farms to trace *teff* from farm to table, ensuring transparency and quick issue resolution.

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### **5. Financial Safeguards**

- **Insurance**: Cover supply chain disruptions via *EthioLife Insurance* (annual premium: 500,000 ETB).

- **Debt Covenants**: Ensure loan terms allow flexibility for emergency borrowing if needed.

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**Conclusion**:

By combining local sourcing, financial hedging, multi-supplier networks, and community-driven farmer support, *Taste of Unity* minimizes exposure to currency and supply chain risks. These strategies align with its mission of sustainability and cultural preservation while safeguarding investor returns.

*“Prepared for storms, rooted in resilience.”* 🌾🛡️