Transcript WELCOME TO CAFE MIAMI - Florida International University

WELCOME TO FIU’s
CAFE MIAMI 24/7
7/21/2015
Developed by Gerard Klonarides
The Challenge
• To plan, organize, staff, and direct a
24/7 café for the students, faculty and
administration in UPC
• To be ready to operate December 15th
2005
• To obtain all necessary licenses of
operation
7/21/2015
Developed by Gerard Klonarides
7/21/2015
Developed by Gerard Klonarides
What do we have?
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Location - the Graham Center Food Court
500 square feet
Concrete floor
Bare walls
7/21/2015
Developed by Gerard Klonarides
What is required?
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Utilities
Plumbing
Floor and wall tiles
Fire valves and
extinguishers
• Cooking facilities
• Storage cabinets
• Refrigeration cabinets
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Soda fountains
Mixers
Blenders
Coffee makers
Display shelves
Store Signage
Cash POS
PC with modem
Developed by Gerard Klonarides
What else?
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1 Manager
3 Supervisors
4 Cashiers
2 short order cooks and 3 cooks
10 assistant/server/cleaners/cashiers
3 security guards
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Developed by Gerard Klonarides
The parameters
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Below are some facts you need to consider:
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Plumbing work needs 1 month to complete but 2 weeks to find an appropriate contractor and sign the appropriate contract.
Flooring/Tiling requires 4 days but 1 month to find an appropriate contractor and sign the appropriate contract.
Fire and safety equipment including sprinklers for the grill require 1 month to complete, 2 weeks to find an appropriate
contractor and sign the appropriate contract but must be completed 2 weeks before grand opening.
The Fire Marshall must inspect the premises 1 week before the grand opening. However the FM requires an appointment 4
months prior to the inspection date.
Dade County license takes 3 weeks to issue upon inspection of rental agreement, insurance and articles of incorporation.
The A/C people require 1 week to complete tasks and 1 week to find an appropriate contractor and sign the appropriate
contract.
Electrical work requires 1 week to complete and 1 week to find an appropriate contractor and sign the appropriate contract.
The cabinetry/shelving requires 6 weeks for ordering and delivery. This contract also requires taking measurements when
the walls and floors are complete. 2 weeks are required to shop around for quotations
Cafeteria equipment including grills, fryers, washers, hoods, pots, pans, utensils, refrigeration, etc requires 3 weeks to
receive quotations and make a decision on which company to engage. On average they will require 6 weeks to deliver.
Food and non-food supplies will be on a daily basis. However you will need 3 weeks to call various companies for quotes
and a further 2 weeks for them to approve you as a business customer.
You will need 1 Manager, 3 supervisors, 4 cashiers, 2 short-order cooks, 3 cooks, 10 servers/cleaners and 3 security guards.
The hiring process will take 3 weeks to advertise and interview all personnel. You will need the Manager to be sent for
training for 1 month.
The Manager will need to train everyone else and will require at least 2 months
Business License will require submission of all necessary documentation and requires 1 working week to be issued.
A legal company needs to be set up, articles of incorporation need to be drawn up and filed with the State. Timeline for this is
up to your lawyer or yourself if you are dong it on your own.
A contract needs to be signed between your company and FIU for the use of the space, rent and share of profits. You should
allow a timeline for this of 1 month.
Eating area will be provided by FIU in conjunction with other existing stores.
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7/21/2015
Developed by Gerard Klonarides
The parameters
• The Fire Marshall needs to give his approval
between November 23rd – November 30th
• It takes however 2 months to make an
appointment for an inspection and two months
for re-inspection
• Dade County license takes 3 weeks to issue
• FIU permits of operation will be granted upon
signing of contract to undertake this project
7/21/2015
Developed by Gerard Klonarides
Utilities
• Require 2 weeks notice for connection as
well as a $200 deposit per utility
• Proof of license to operate from FIU, and
County
7/21/2015
Developed by Gerard Klonarides
You will require the following
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Installers for wall tiles
Installers for floor tiles
Installers for wall cabinets
Plumbers
Electricians
Installers for fire safety
7/21/2015
Developed by Gerard Klonarides
Equipment
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Oven
Grill
Micro oven
Mixer
Coffee maker
Blender
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Ice maker
Refrigeration
Freezer
Soda Machines
Storage
Developed by Gerard Klonarides
Planning Stage
• You will need to present a business plan to Cliff Perry
• You will need to produce a timeline graph (Gerard
Klonarides) of every action of planning, organizing, and
staffing including recruiting and training. This can be
presented in MS Excel, or MS Visio, or MS Project
• You will need to make oral presentations of the business
plan and progress reports (Brian Schriner)
• You will need to produce a written weekly progress
report to the FIU E-Business Board (Cliff Perry-Brian
Schriner-Gerard Klonarides)
• You will need to obtain permission through every stage
from the committee
7/21/2015
Developed by Gerard Klonarides
The Business plan
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Articles of incorporation
Sole proprietor/partnership/limited partnership/LLC/Corporation federal employer identification
number form SS-4
Rental agreement between FIU and company
Miami Dade occupational license form
Application for a Sales and Use tax seller’s permit Form DR-1 (Florida Department of Revenue)
Obtain circular E, Employer’s Tax Guide – IRS publication
Obtain the Payroll Tax Return form 941
Obtain New Employee Federal form W-4
Obtain Federal Unemployment Tax (FUTA) form 8109 from authorized bank
Comply with the 1990 American Disabilities Act
Letter requesting inspection to Fire Marshall
Letter requesting insurance for the premises
Application to the local Chamber of Commerce
A $100,000 budget for equipment and repairs
A Cash flow analysis for the next 5 years
Mission statement
HCM policy re hiring and firing
Long term strategy report
7/21/2015
Developed by Gerard Klonarides
An example of a timeline
January 5-11
Jan 12-18
Jan 19-25
Sign contract
with FIU
Draw floor plans
Plumbing
Electrical
Fire safety
Recruit Manager
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Developed by Gerard Klonarides
Jan 26-31
EXHIBITS
The following drawings and special provisions are attached as Exhibits and are a part of this Lease:
EXHIBIT A –Description of property ("Shopping Center").
EXHIBIT B - Plan showing the location of the premises and common area.
EXHIBIT C - Description of any work to be performed by Landlord, if any, and by Tenant in or on the premises.
EXHIBIT D - Sign Criteria.
EXHIBIT E - Tenant's Certificate.
EXHIBIT F - Rules and Regulations.
SECTION 3
PREMISES
Landlord, in consideration of the obligations to be performed by Tenant, leases to Tenant and Tenant leases from Landlord, on the terms and conditions set forth, the commercial space referred to as the "premises," shown hatched on Exhibit
a (excluding conduits and facilities as may be located in the premises for the common use of Landlord and other tenants). Tenant accepts the premises in an "as is" condition' except for the specific work to be performed by. Landlord, if any,
described as set forth in the description of "Landlord's Work" in Exhibit C. Tenant at its sole cost and expense shall be responsible for the completion of the work described as "Tenant's Work" in Exhibit C; all of which shall be performed in
accordance with and be subject to Section 11.
SECTION 4
TERM
4.1 Definition of Term. The term of this Lease shall be for the number of "lease years" (defined in Section 4.5) specified in Section 1(b), plus any partial calendar month during which the term commences if the term does not commence on
the first day of a calendar month.
4.2 Commencement Date. The term of this Lease shall commence ("Commencement Date") on ____________. Tenant has entered into the premises prior to execution of the Lease on an Early Entry License Agreement. For the purposes of
this Lease, the commencement date shall be ____________.
The term "delivery date" means the date on which Landlord gives Tenant written notice of the substantial completion of "Landl ord's Work" and Landlord tenders possession of the premises to Tenant. The term "substantial completion" means
that Landlord's Work is complete to the point that Tenant's contractor may commence Tenant's Work, it being understood and agreed that Landlord will not install or complete all items of Landlord's Work until Tenant has commenced and
completed portions of Tenant's Work to the point Landlord may re-enter the premises and complete Landlord's Work. Tenant shall promptly commence and diligently complete the construction of Tenant's Work upon delivery of possession of
the premises by Landlord and shall exercise its best effort to open for business in the premises within thirty (30) days of the Commencement Date. From the delivery date until the Commencement Date Tenant shall perform and be bound by
all of the provisions of this Lease except those requiring the payment of rent and other charges.
4.3 Tenant's Certificate. Following the Commencement Date, Tenant shall execute, acknowledge and deliver to Landlord a Tenant's Certificate in the form of Exhibit E, within ten (10) days of receipt of such Certificate from Landlord setting
forth, among other things, the Commencement Date and the termination date of this Lease and such other provisions as may be required by Landlord's lender or any prospective purchaser. Tenant's failure to execute and deliver such
Certificate shall not affect Landlord's determination of the Commencement Date in accordance with the provisions of this Lease and shall constitute an acknowledgement by Tenant that the statements set forth in the Certificate are true and
correct without exception.
4.4 Failure to Deliver. If the delivery date does not occur within two (2) years of the date of this Lease this Lease shall automatically terminate and cease to be of any force and effect. Landlord shall have no liability or obligation to Tenant by
reason of such termination except Landlord shall return to Tenant any advance rent and security deposit paid by Tenant.
4.5 Lease Year. A "lease year" is a period of twelve (12) consecutive calendar months commencing on the first day of the first calendar month of the term of this Lease, except the first lease year shall also include any partial month during
which the Commencement Date occurs if the Commencement Date does not occur on the first day of a month, and the last lease year shall end on the expiration or sooner termination of this Lease.
SECTION 5
RENTAL
5.1 Minimum Annual Rental. Tenant shall pay as rental for the use and occupancy of the premise the minimum annual rental as set forth specified in Section 1(e), payable in advance, in twelve (12) equal monthly installments during each
lease year, on the first day of each month without offset or deduction, except the first payment shall be made upon execution of this Lease. Should the Commencement Date be on a day other than the first day of a month, the rental for such
fractional month shall be computed on a daily basis for the period from the Commencement Date to the end of such month, at an amount equal to one three-hundred-sixtieth (1/360) of the minimum annual rental for each day in such
fractional month and shall be paid on the Commencement Date.
5.2. (a) Additional Rental Payment Owing Upon Tenant's receipt of Nondisturbance Agreement. Tenant shall pay to Landlord addi tional rent in the amount of $____________(hereinafter referred to as "additional rental payment"), according
to the payment schedule noted below, upon receipt of a nondisturbance agreement (the "Nondisturbance Agreement") from Landlord's current lien holder of record, _______________ ("Lender"), or from the assignee of Lender with respect
to such lien, hereinafter referred to as "Landlord's lender". The Nondisturbance Agreement shall be in a form acceptable to Lender.
The additional rental payment of $______________ shall be due on the commencement date noted below and shall be payable as fo llows: interest only on the unpaid balance during months 1 through 24, with interest calculated on the
unpaid balance at the rate of ___ percent (__%); equal monthly payments during months 25 to 60, calculated to amortize the unpaid balance as if due over a ten year period, at an interest rate of ___ percent (__%); and a lump sum payment
of the balance then due in month 60. The foregoing payment schedule is summarized as follows:
Due Date
Amount Due
SAMPLE
SAMPLE
The Commencement Date of the first monthly payment shall be the later of (a) ____________, or (b) the first day of the first month following the month during which Landlord has provided to Tenant the Nondisturbance Agreement.
Landlord shall apply all amounts received from Tenant pursuant to this Lease first to the obligations of Tenant other than the additional rental payment, and lastly to the obligation of the Tenant for the additional rental payment.
The failure by Tenant to make any installment of the additional rental payment when due shall cause the entire unpaid remaini ng balance of such additional rental payment to become immediately due and payable to Landlord. The failure by
Tenant to make any installment of the additional rental payment when due shall constitute a material default by the Tenant of the terms of the Lease under paragraph 20.1, and the Landlord shall be entitled to any and all remedies provided
under the terms of the Lease as a result of such material default, as provided under paragraph 20.2 of the Lease.
The obligation of tenant to pay the additional rental payment is expressly conditioned upon Tenant's receipt from the Landlord's lender of the Nondisturbance Agreement.
(b) Letter of Credit. As collateral for the fulfillment of the Tenant's obligation to make the additional rental payment described herein, Tenant shall provide to Landlord within ten (10) days after the later of (a) ____________, or (b) the date of
Tenant's receipt of the Nondisturbance Agreement, a $____________irrevocable direct pay or stand by letter of credit ("Letter of Credit") in favor of Landlord, issued by a bank acceptable to Landlord in its sole and absolute discretion, and
confirmed, if Landlord deems such confirmation necessary, by a bank acceptable to Landlord in its sole and absolute discretion, in form and substance acceptable to Landlord.
The Letter of Credit shall have as an expiry date for payment, a date no earlier than the Lump-sum Payment Due Date, as defined above; provided, Tenant can choose an earlier expiry date for the Letter of Credit on the condition that prior to
expiration of the Letter of Credit, the Tenant replaces the Letter of Credit with a replacement Letter of Credit, or a series thereof, which, when taken as a whole, have an expiry date no earlier than the Lump-sum Payment Due Date.
If Tenant desires to replace the Letter of Credit, any replacement Letter of Credit in substitution of the previously expiring Letter of Credit shall, with the exception as to the face amount noted below, be on the same terms as the Letter of
Credit, shall be issued by a bank acceptable to Landlord in its sole and absolute discretion, shall be issued on or before the 30th day prior to the expiration of the previously expiring Letter of Credit, with notice to Landlord thereof, and the
effectiveness of which shall commence concurrently with the expiration of the previous Letter of Credit.
Upon any replacement of the Letter of Credit, Tenant may reduce the face amount of the Letter of Credit from $____________to an amount equal to the then unpaid balance of the additional rental payment, as confirmed to Tenant in writing
by Landlord.
It is agreed that upon the occurrence of a default in the payment of any installment of the additional rental payment when due, or in the event that Tenant fails to secure a replacement Letter of Credit for the previously expiring Letter of Credit,
on or before the 30th day prior to its scheduled expiration, Lender may draw upon the Letter of Credit in accordance with its terms, in whole or in part, without resorting to any other security, and may apply any such draw against, and/or hold
the proceeds of such draw as security for, any unpaid portion of the additional rental payment.
The failure of Tenant to provide the Letter of Credit as provided for herein shall constitute a material default by the Tenant of the terms of the Lease under paragraph 20.1, and the Landlord shall be entitled to any and all remedies provided
under the terms of the Lease as a result of such material default, as provided under paragraph 20.2 of the Lease.
Upon payment of the Tenant's obligation to pay the additional rental payment, Landlord shall immediately release the Letter of Credit after the end of each calendar year and at the end of the lease term. Tenant shall pay to Landlord with
each semi-annual statement a sum equal to the Percentage Rental Rate times the total monthly gross sales for such six month period less the installment of minimum annual rental paid for such six month period. The Percentage Rental paid
shall be adjusted after the end of each calendar year so that the total Percentage Rental paid or payable shall not exceed the Percentage Rental Rate times the total gross sales for the applicable calendar year less the minimum annual
rental installments paid during such calendar year.
Notwithstanding section 5.4(b), Tenant shall pay percentage rent on a semi-annual basis. The measurement periods shall be July thru December and January through June of each year. Tenant shall report sales thirty days after the end of
each period and percentage rent is due August 1st and February 1st of each year.
(c) Each monthly and annual statement shall be certified as true and correct by Tenant if Tenant is composed of individuals, or by a responsible officer of Tenant if Tenant is a corporation, or by Tenant's managing partner if Tenant is a
7/21/2015
Developed by Gerard Klonarides
Miami Dade Occupational License
The Occupational License is a tax imposed for the privilege of doing business in the County.
Anyone providing merchandise, entertainment or service directly or indirectly to the public,
even through a one-person company or home-based occupation, must obtain a license to
operate.
Occupational license taxes vary depending on the nature of business. The number of
employees, equipment and seating capacity are a few variables that factor into the cost of
the license. A license is required for each place of business and for each separate
classification at the same location. Licenses are transferable when there is a change of
ownership, business location or trade name.
A personal license is not transferable to another individual. Before a County License is
issued, a business must meet all conditions required. No Occupational License will be
issued unless the Social Security Number or Employee Identification Number is provided by
the person to be licensed.
Occupational Licenses are issued for one year beginning October 1 and expiring on
September 30 of each year. Licenses not renewed by September 30 become delinquent
and subject to a penalty of 10% for the month of October and an additional 5% for each
month of delinquency thereafter, provided that the penalty does not exceed 25% of the
occupational license tax.
7/21/2015
Developed by Gerard Klonarides
Fire Marshall
• Dear Sirs,
• We respectfully request inspection of our
premises during the week starting …/…./…..
• Our establishment is a 24/7 Cafe :Miami Café”
operating within the grounds of FIU
• We will have completed all safety aspects
according to your suggestions.
• We enclose a check for $150 for the inspection.
• We remain
• Sincerely Yours,
7/21/2015
Developed by Gerard Klonarides
Memo
• To
: E- Board
From
: Team 101
• Subject
: Weekly status report
• Date
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• We would like to report the following:
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7/21/2015
Permits requested/granted
Communication written/received
Construction
Purchasing
Recruitment
Training
Financials
The Market
Agreements signed, to be signed, or being considered
Major concerns for the E-Board
Issues requiring attention of the E-Board
Developed by Gerard Klonarides
The TEAM and the CHALLENGE
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You are part of a Project Management team that will install, and operate a “Café
Miami 24/7” at FIU from the bottom up.
You should work in teams for this project
Use any of the project management tools MS Visio, MS Project or MS Excel to
complete the timeline project.
You will need to present a detailed timeline with tasks for “Café Miami 24/7.”
You need to turn in 1. a hard copy of the paper 2. an email copy that will contain the
following:
Page 1 Your name, class, date, semester, professor’s name and a digital color visible
photo of yourself or group
Page 2 A memo from your group to the board outlining the project and how you
would go about it. You should also note any problems you feel you might encounter
along the way.
Page 3 Should contain your management strategy and your tactics that you foresee
you will use as there is bound to be a reaction from the surrounding 24/7 fast food
chains. Particular attention should be paid to your pricing policy.
Page 4 Should contain your mission statement for “Café Miami 24/7”
Page 5 Should contain the human resource policy.
Page 6 Should contain your detailed timeline and milestones.
7/21/2015
Developed by Gerard Klonarides