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INVESTOR OPPORTUNITY

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OUR MISSION

Is to be a part of people’s lives by offering tasty foods with high quality, innovation and at affordable prices anywhere in the world

OUR VALUES

One of the best national restaurant brands to commit to goals on local and organic produce and to commit to using only responsibly raised meat with some of the highest animal welfare standards.

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OUR VISION

To be one of the leading food companies in the world, admired for its brands, innovations and results, contributing to a better and sustainable world

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EXECUTIVE SUMMARY

Alpha Group is one of the leading restaurant chains in the game. We are well-renowned for our diverse hospitality practices which have helped us gain a huge reputation and client reliability over the years.

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Our services all over the years have been applauded by a wide reach of customers and organizations.

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Our goal is to provide a true fine dining experience with the use of our knowledge, experience and services, competing parallelly with the other leading restaurant chains.

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Quality, Safety and Hospitality have been our key heroes in bringing together Alpha Group and our happy customers.

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ALPHA Restaurant Group

  • We’ve grandly opened our first branch at Riverview, Phoenix in the first month of 2016.
  • The next branch was established in Pinnacle Peak Rd, Scottsdale in the February of the following Year.
  • In March 2018, we’ve successfully opened another franchise at Alma School Rd, Chandler.
  • In September 2019, our fourth branch was opened at Dobson Rd, Mesa.

BUSINESS PROFILE

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INDUSTRY OUTLOOK- Our Goals

500-1000

Restaurants in the USA

$10B

In Combined Revenue

85%

Average Gross Margin

$50,000

In Revenue per Worker

15-20%

Revenue Increase per Year

SUCCESS

ALPHA Restaurant Group

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MAJOR COMPETITORS

OREGANO'S PIZZA BISTRO INC. – 1 mile

Founded: 1993

AZ employees: 1,000

Principal: Mark S. Russell, founder and CEO

WILD THYME RESTAURANT GROUP– 2 miles

Founded: 2009

AZ employees: 210

Principal: Heinrich Stasiuk, president and founder

MACAYO RESTAURANTS LLC – 400 feet

Founded: 1946

AZ employees: 882

Principal: Sharisse Johnson, Gary Johnson, Stephen Johnson, owner and CEO

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21%

Local Residents

36%

Tourists

29%

Passing Travelers

7%

Students

7%

Local Businesses

CUSTOMERS

GROWTH

YR1

YR2

YR3

Local Residents

2%

$15000

$15300

$15606

Tourists

5%

$25000

$26250

$27563

Passing travelers

5%

$20000

$21000

$22050

Students

1%

$5000

$5050

$5101

Local Businesses

1%

$5000

$5050

$5101

TOTAL

2.8%

$70000

$72650

$75420

CUSTOMER SEGMENTATION

ALPHA Restaurant Group

BUSINESS PROFILE- The Market

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THE TEAM

ALPHA Restaurant Group

VENKAT ADITYA YEPURI

Founder

BHAVISHYA REDDY KONATHAM

Co-Founder

RISHIKESH TADAGONI

Managing Director

  • Master of Science in Hospitality Management, California State University.
  • Worked as assistant manager from 2010-2012 in Cava Bistro Restaurant.
  • Worked as manager from 2012-2014 in Hyatt Restaurant.

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  • Master of Science in Hospitality Management, Florida State University.
  • Worked as manager at Park Restaurant from 2008-2011.
  • Worked as senior manager at Fairfield Restaurant from 2011-2014.

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  • Bachelor of Science in Business Management, Colorado State University.
  • Worked as assistant manager at Odyssey Restaurant from 2009-2013.
  • Worked as manager at Blue Fox Restaurant from 2013-2014.

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THE TEAM

ALPHA Restaurant Group

KOUSHIK REDDY DACHIREDDY

Operational Director

NANDINI DEV

Manager

CHAITANYA VEERAMAHCHANENI

Human Resources Manager

  • Bachelor of Science in Hospitality Business Management, Michigan State University.
  • Worked as assistant manager at Vivanta Restaurant from 2008-2012.
  • Worked as manager at Mariott Restaurant from 2012-2016.
  • Master of Management in Hospitality, Cornell University.
  • Worked as assistant manager at Courtyard Restaurant from 2010-2011.
  • Worked as manager at Trident Restaurant from 2011-2014.
  • Master of Business Administration in Human Resources Management, New York State University.
  • Worked as assistant human resources manager at Radisson Grandeur Restaurant at California from 2012-2017.

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LOAN REQUEST

$560,000 – 70%

BANK

$240,000 – 30%

OWNER EQUITY

Our budget to establish a new restaurant and to expand our business is 800,000 dollars.

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LOAN UTILIZATION - USE OF FUNDS

ONE-TIME COSTS

ITEM

 

AMOUNT

Lease Security Deposit / Loan Down Payment

$12,000.00

Legal / Processing Fees

$2,000.00

Building Improvements

$3,00,000.00

Kitchen & Cooking Equipment

$1,50,000.00

Tables, Furniture and Tableware

$80,000.00

POS Systems

$20,000.00

Signage & Advertising

$30,000.00

Accessibility to disable persons

$30,000.00

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LOAN UTILIZATION - USE OF FUNDS

RECURRING COSTS

ITEM

 

 

 

AMOUNT

Lease / Mortgage Payments

$12,000.00

Employee Salaries

$40,000.00

Food/Beverage

Varies

Utilities

$2,500.00

Marketing & Advertising

$15,000.00

Social Marketing

Free!

Insurance & Permits

$10,000.00

Miscellaneous Expenses

$60,000.00

ALPHA Restaurant Group

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LOAN UTILIZATION - USE OF FUNDS

ALPHA Restaurant Group

BUDGET

$8,00,000

TOTAL STARTUP COSTS

$7,63,500

TOTAL ONE-TIME COSTS

$6,24,000

TOTAL RECURRING COSTS

$1,39,500

BALANCE

$36,500

ONE-TIME COSTS VS. RECURRING COSTS

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LOAN PAYMENT

ALPHA Restaurant Group

SBA loan size

7(a) loan paid off in under 7 years *

7(a) loan paid off in over 7 years *

More than $50,000

5.50%

6.0%

*Rates calculated with the current prime rate of 3.25%. Updated January 2021.

Program

Loan size

Lender

Purpose

7(a) loan program (SBA’s flagship loan program)

Up to $5 million

Banks, credit unions, specialized lenders

To fund working capital, expansion and equipment purchases

The following changes are on top of additional relief programs for small businesses:

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Loan limits increased. As of Jan. 1, 2021, the borrowing limit for SBA Express loans was increased from $350,000 to $1 million. That maximum will permanently drop to $500,000 on Oct. 1, 2021.

  • Fees waived. For 7(a) and 504 loans, the SBA will eliminate fees for both lenders and borrowers.
  • Payments covered. The government will make monthly payments of up to $9,000 on eligible SBA loans. The number of payments you can receive will depend on when your loan was approved, issued or disbursed.

An SBA loan is a type of small-business loan that's issued by private lenders but backed by the federal government. The SBA has several loan programs, including 7(a) loans, 504 loans and microloans.

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COLLATERAL

ALPHA Restaurant Group

Collateral is the security used to ensure your lender has a secondary source of repayment in case you are unable to make payments on your SBA loan.

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The SBA requires an unconditional personal guarantee as business collateral from everyone with at least 20% ownership in a company.

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This guarantee puts you and your personal assets on the hook for payments if your business can't make them.

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Bhavishya Reddy Konatham is giving her land worth $600,000 as Collateral for a $560,000 loan amount from the bank.

LOAN PAYMENT

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PERSONAL FINANCIAL STATEMENTS

ALPHA Restaurant Group

BHAVISHYA REDDY KONATHAM

ASSETS

 

HOUSE

$2,000,000

INVESTMENTS

$150,000

LAND

$600,000

TOTAL ASSETS

$2,750,000

LIABILITIES

 

HOUSE LOAN

$1,550,000

PREVIOUS LOAN

$1,000,000

TOTAL LIABILITIES

$2,550,000

NET WORTH

$200,000

RISHIKESH TADAGONI

ASSETS

 

HOUSE

$3,500,000

INVESTMENTS

$200,000

LAND

$900,000

TOTAL ASSETS

$4,600,000

LIABILITIES

 

HOUSE LOAN

$2,550,000

PREVIOUS LOAN

$1,930,000

TOTAL LIABILITIES

$4,480,000

NET WORTH

$120,000

NANDINI DEV

ASSETS

 

HOUSE

$2,885,374

INVESTMENTS

$238,000

LAND

$1,700,000

TOTAL ASSETS

$4,823,374

LIABILITIES

 

HOUSE LOAN

$2,486,678

PREVIOUS LOAN

$2,100,000

TOTAL LIABILITIES

$4,586,678

NET WORTH

$236,696

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PERSONAL FINANCIAL STATEMENTS

ALPHA Restaurant Group

VENKAT ADITYA YEPURI

ASSETS

 

HOUSE

$2,150,678

INVESTMENTS

$360,789

LAND

$1,200,000

TOTAL ASSETS

$3,711,467

LIABILITIES

 

HOUSE LOAN

$2,550,789

PREVIOUS LOAN

$1,050,898

TOTAL LIABILITIES

$3,601,687

NET WORTH

$109,780

CHAITANYA VEERAMAHCHANENI

ASSETS

 

HOUSE

$2,100,000

INVESTMENTS

$750,000

LAND

$1,750,876

TOTAL ASSETS

$4,600,876

LIABILITIES

 

HOUSE LOAN

$2,260,345

PREVIOUS LOAN

$2,145,678

TOTAL LIABILITIES

$4,406,023

NET WORTH

$194,853

KOUSHIK REDDY DACHIREDDY

ASSETS

 

HOUSE

$3,000,000

INVESTMENTS

$100,000

LAND

$1,100,000

TOTAL ASSETS

$4,200,000

LIABILITIES

 

HOUSE LOAN

$2,100,000

PREVIOUS LOAN

$1,950,000

TOTAL LIABILITIES

$4,050,000

NET WORTH

$150,000

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FINANCIAL STATEMENTS OF ALPHA GROUP

ALPHA Restaurant Group

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INCOME STATEMENT

ALPHA Restaurant Group

  • Alpha Group is incorporating different types of Cuisine Styles which is the reason why there was an increase in the Cost of Revenue from 2018 to 2020.

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  • The Net Income of Alpha Group is increasing from year to year, This shows our capability to repay the loan.

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BALANCE SHEET

ALPHA Restaurant Group

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CASH FLOW

ALPHA Restaurant Group

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ALPHA Restaurant Group

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