Sample Restaurant Business Plan-08!27!2011!21!09-21 Assembled
Sample Business Plan - Restaurant
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St. Petersburg Russian Restaurant
Business Plan
&
Cash Flow Projections
St. Petersburg Russian Restaurant
CONTENTS
History
Objectives
Location
Market Research
Suppliers
Staff
Projections for the three accounting years to October 2006, 2007 and 2008, including: -
Highlights
Brake Even Profit and Loss Forecasts Operating Cash Flow Forecasts
Cash Flow Forecasts Balance Sheet Projection Summary of Bank LoanConclusion
St. Petersburg Russian Restaurant
HISTORY
St. Petersburg Russian restaurant was established in Liverpool in 1996, as the only restaurant of its kind outside of London.
The restaurant is based in York Street, in Liverpool, and after undergoing substantial refurbishment with the aid of British Heritage Grants, was able to increase the size and hence the number of covers. Business has continually increased, and is often at capacity at weekends. The restaurant provides fine Russian food complimented with live music, traditional dancing and disco facilities available after dining.
Since becoming established, its profile has been raised by features in the quality, national and local press, in-journey magazines for companies such as Easyjet, Virgin and Fly Be and on BBC and Granada Television.
It was recently highly commended on the category of Best Liverpool Restaurant by Cheshire & Lancashire Life Magazines Food and Wine Awards 2004/05.
Also, it is part of the Liverpool Capital of Culture 2008 program.
OBJECTIVES
Our aim, as always, has been to provide a unique dining experience, by serving a combination of authentically Russian food and traditional entertainment, in a friendly and relaxed atmosphere.
Now that the Liverpool restaurant is firmly established, our aim is to use our experience and enthusiasm to provide Manchester with a similar, authentically Russian, dining experience.
We envisage that the restaurant will open in January or February 2006 with the ability to accommodate 200 covers.
St. Petersburg Russian Restaurant
LOCATION
The proposed restaurant site is 56 Faulkner Street, Manchester, M1 4FH.
The new restaurant will be in the vibrant heart of Manchester, on the edge of the citys famous Chinatown.
The location is considered an excellent site, as it is expected that as well as specific trade, it will also attract substantial passing trade due to the fact that it is in an area which is known for restaurant and indeed the property is an existing Chinese restaurant.
There will be a car park of approximately 80 sq.m. attached to the premises and it is well served by local transport amenities.
MARKET RESEARCH
We envisage that the following points will be our keys to successfully establishing the new restaurant: -
Our large client database already includes many addresses of satisfied customers from the Greater Manchester area and beyond.
Many of these customers have asked us when we will open a Manchester restaurant.
The restaurants location will provide it with customers booking as part of a day/night out in Manchester as well as a tremendous amount of passing trade, both during the day and at night.
As yet, there are no Russian restaurants in Manchester.
The Russian speaking and influenced population of Manchester has increased significantly in the last two years, due to former Soviet Bloc countries joining the European Union and more students enrolling at Manchester University.
Manchester is the twin city of St. Petersburg.
In the last year, three shops have opened specialising in Russian, Ukraine and other Eastern European food.
The first Russian disco in Manchester has recently opened.
St. Petersburg Russian Restaurant
SUPPLIERS
We intend to use the same local and national suppliers as for our Liverpool restaurant, who provide us with the quality and consistency we need.
STAFF
Key members of staff, manager and chefs will be trained in the Liverpool restaurant, to provide them with the experience necessary to fulfil our objectives. One chef has already been recruited and is due to commence work in Liverpool at the beginning of November 2005.
FUNDING
The estimated setup costs per the cash flow statement are summarised below: -
Setup Costs
Type of ExpenditureAmount
Goodwill 75,000
Legal Fees5,000
Initial Advertising1,500
Refurbishment25,000
Fixtures and Fittings25,000
Other Expenditure18,500
TOTAL150,000
Funding Sources
Source of FundingAmount
Capital introduced by directors75,000
Bank loan 75,000
TOTAL150,000
St. Petersburg Russian Restaurant
PROJECTIONS
The attached cash flow, profit and loss and balance sheet projections are based on the following assumptions and estimates: -
The restaurant capacity is 200 covers.
Initial sales in the first month are estimated at 30,550.
An estimated 5% month on month growth is envisaged in the first period of trading to October 2006.
A growth of 10% per annum is expected in the year to October 2007 and 20% per annum in the year to October 2008.
A gross profit margin of 80% is anticipated.Sales Projection for the 2006-2008 is summarised below:
PeriodAmount
Jan 0630,550
Feb 0632,078
Mar 0633,681
Apr 0635,365
May 0637,134
Jun 0638,990
Jul 0640,940
Aug 0642,987
Sep 0645,136
Oct 0647,393
Total 2005-2006384,255
Total 2006-2007461,106
Total 2007-2008507,216
St. Petersburg Russian Restaurant
PROJECTIONS (Continued) Wages have been provided for as follows, payable a month in arrears:-
Type of StaffAmount
Directors Remuneration24,000
Head chef15,000
Sauce chef12,996
Second chef12,000
Cook 1 (p/t)7,200
Cook 2 (p/t)3,996
Kitchen assistant3,996
Restaurant manager14,004
Waiter 121,996
Waiter 211,004
TOTAL126,192
These have been increased by 3% each April.
St. Petersburg Russian Restaurant
PROJECTIONS (Continued)Type of ExpenditureAmount
Rent 30,000
Rates (increasing by 8% p.a. each April)3,996
Light & heat (increasing by 5% p.a. each April)7,200
Insurance (increasing by 5% p.a. each January)7,872
Repairs and maintenance (increasing by 3% p.a.)1,800
Motor expenses (increasing by 5% p.a.)3,600
Phone (increasing by 5% p.a.)2,400
Advertising (increasing by 3% p.a.)18,000
Printing and stationary (increasing by 3% p.a.)1,200
Bank Charges3,000
Accountancy fees (increasing by 3% p.a.)6,000
Entertainment with no yearly increase.20,400
Sundries and contingencies with no yearly increase.4,200
Depreciation on refurbishment at 10% p.a. on a straight line basis. Depreciation on fixtures and fittings at 20% p.a. on a straight line basis.10,500
Interest on the loan of 75,000 repayable over 15 years has been calculated at 7.5% p.a. 5,498
TOTAL125,666
The business operates on a cash basis; as such there are not debtors or creditors.
St. Petersburg Russian Restaurant
HIGHLIGHTSPeriodRevenuesNet ProfitNet Profit (%)Operating ProfitClosing Bank Balance
2005-06384,25561,86916.1087,990111,852
Nov-050-10,0140.00-9,548-14,846
Dec-050-5,0130.00-4,548-19,505
Jan-0630,5503,44511.283,908-12,737
Feb-0632,0784,66814.555,1306,063
Mar-0633,6815,95317.676,41315,774
Apr-0635,3655,71716.167,76127,069
May-0637,1346,53817.619,17530,667
Jun-0638,9907,65319.6310,66145,369
Jul-0640,9408,82421.5512,22061,904
Aug-0642,98710,05423.3913,85868,772
Sep-0645,13611,34425.1315,57789,251
Oct-0647,39312,70026.8017,383111,852
2006-07461,10683,41418.09116,498206,984
2007-08507,216106,60721.02147,187330,068
St. Petersburg Russian Restaurant
BREAKE EVENQuantity(%)RevenuesFixed ExpensesVariable ExpensesTotal CostOperating Profit
10%38,425219,4147,685227,099-188,673
20%76,851219,41415,370234,784-157,933
30%115,276219,41423,055242,469-127,193
40%153,702219,41430,740250,154-96,452
50%192,127219,41438,425257,839-65,712
60%230,553219,41446,111265,525-34,971
70%268,978219,41453,796273,210-4,231
71%274,267219,41454,853274,2670
80%307,404219,41461,481280,89526,509
90%345,829219,41469,166288,58057,250
100%384,255219,41476,851296,26587,990
St. Petersburg Russian Restaurant
PROFIT & LOSS (PART 1)DescriptionNov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06
Revenues30,55032,07833,68135,36537,13438,990
Bar Drinks2,8002,9403,0873,2413,4033,574
Evening meals24,00025,20026,46027,78329,17230,631
Lunch & Early Evening Meals3,7503,9384,1344,3414,5584,786
Material Cost6,1106,4166,7367,0737,4277,798
Gross Profit24,44025,66226,94528,29229,70731,192
Entertainment1,7001,7001,7001,7001,7001,700
Sundries350350350350350350
Legal & professional5,000
Business insurance250250250250250250
Building insurance333333333333333333
Bank charges250250250250250250
Printing & Stationary100100100100100100
Motor running expenses300300300300300300
Motor insurance7373737373737373
Phone 200200200200200200
Advertisement1,5001,5001,5001,5001,5001,5001,5001,500
Accountants charges500500500500500500
Repairs & Maintenance150150150150150150
Electricity100100250250250250250250
Gas350350350350350350
Rates333333333333333333
Rent2,5002,5002,5002,5002,5002,500
Fixed Expenses6,6731,6739,1409,1409,1409,1409,1409,140
Head Chef1,2501,2501,2501,2501,2501,250
Sauce Chef1,0831,0831,0831,0831,0831,083
Second Chef1,0001,0001,0001,0001,0001,000
Cook 1 (part time)600600600600600600
Cook 2 (part time)333333333333333333
Kitchen Assistant333333333333333333
Restaurant Manager1,1671,1671,1671,1671,1671,167
Waiter 1 (Full time)1,8331,8331,8331,8331,8331,833
Waiter 2 (Part time)917917917917917917
Director2,0002,0002,0002,0002,0002,0002,0002,000
Personnel Cost2,0002,00010,51710,51710,51710,51710,51710,517
Depreciation875875875875875875875875
Total Operation Expenses9,5484,54820,53220,53220,53220,53220,53220,532
Operating Profit-9,548-4,5486,4317,7799,19410,68112,24113,880
Interest Expenses466465463462460459458456
Income before Tax-10,014-5,0133,4454,6685,9537,3028,71810,205
Income Tax1,5852,1792,551
Net Profit-10,014-5,0133,4454,6685,9535,7176,5387,653
St. Petersburg Russian Restaurant
PROFIT & LOSS (PART 2)DescriptionJul-06Aug-06Sep-06Oct-06 2005/06 2006/07 2007/08
Revenues40,94042,98745,13647,393384,255461,106507,216
Bar Drinks3,7523,9404,1374,34435,21842,26246,488
Evening meals32,16233,77035,45937,232301,869362,243398,468
Lunch & Early Evening Meals5,0255,2775,5405,81747,16756,60162,261
Material Cost8,1888,5979,0279,47976,85192,221101,443
Gross Profit32,75234,39036,10937,914307,404368,884405,773
Entertainment1,7001,7001,7001,70017,00020,40020,400
Sundries3503503503503,5004,2004,200
Legal & professional5,000
Business insurance2502502502502,5003,1503,308
Building insurance3333333333333,3334,2004,410
Bank charges2502502502502,5003,0003,000
Printing & Stationary1001001001001,0001,2361,298
Motor running expenses3003003003003,0003,7803,969
Motor insurance73737373880924970
Phone 2002002002002,0002,5202,596
Advertisement1,5001,5001,5001,50018,00018,54019,096
Accountants charges5005005005005,0006,1806,365
Repairs & Maintenance1501501501501,5001,8901,985
Electricity2502502502502,7003,1503,308
Gas3503503503503,5004,4104,631
Rates3333333333333,3334,3204,666
Rent2,5002,5002,5002,50025,00030,00030,000
Fixed Expenses9,1409,1409,1409,14099,747111,900114,200
Head Chef1,2501,2501,2501,25012,50015,45015,914
Sauce Chef1,0831,0831,0831,08310,83313,39013,792
Second Chef1,0001,0001,0001,00010,00012,36012,731
Cook 1 (part time)6006006006006,0007,4167,638
Cook 2 (part time)3333333333333,3334,1204,244
Kitchen Assistant3333333333333,3334,1204,244
Restaurant Manager1,1671,1671,1671,16711,66714,42014,853
Waiter 1 (Full time)1,8331,8331,8331,83318,33322,66023,340
Waiter 2 (Part time)9179179179179,16711,33011,670
Director2,0002,0002,0002,00024,00024,72025,462
Personnel Cost10,51710,51710,51710,517109,167129,986133,886
Depreciation87587587587510,50010,50010,500
Total Operation Expenses20,53220,53220,53220,532219,414252,386258,586
Operating Profit15,60117,40719,30421,296119,718154,571189,068
Interest Expenses4554534524505,4985,2805,045
Income before Tax11,76613,40515,12616,93382,492111,218142,143
Income Tax2,9413,3513,7814,23320,62327,80535,536
Net Profit8,82410,05411,34412,70061,86983,414106,607
St. Petersburg Russian Restaurant
OPERATING CASH FLOW (PART 1)DescriptionNov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06
Opening Bank Balance5,7161,0577,82523,56333,27444,56948,167
Receivable Payments35,89637,69139,57641,55443,63245,814
Loans Received75,000
Other Receivables7,533
Owners Equity75,000
Total cash in150,00035,89645,22439,57641,55443,63245,814
Salaries Payments2,0002,00010,51710,51710,51710,51710,51710,517
Material Payments7,1797,5387,9158,3118,7269,163
Purchases Payments7,8411,96610,74010,74010,74010,74010,74010,740
Investments in Goodwill75,000
Interest Expenses466465463462460459458456
Equipment Payments58,750
Loan Payments227228229231232234235237
Tax Payments
VAT Returns (Rebates)9,359
Total cash out144,2844,65929,12829,48729,86430,26040,03431,112
Closing Bank Balance5,7161,0577,82523,56333,27444,56948,16762,869
VAT on Sales5,3465,6145,8946,1896,4986,823
VAT on Purchases9,9182932,6692,7222,7782,8372,8992,964
VAT Returns (Rebates)-7,5339,359
St. Petersburg Russian Restaurant
OPERATING CASH FLOW (PART 2)DescriptionJul-06Aug-06Sep-06Oct-06 2005/06 2006/07 2007/08
Opening Bank Balance62,86979,40486,272106,751129,352223,734
Receivable Payments48,10450,51053,03555,687451,499541,799595,979
Loans Received75,000
Other Receivables7,533
Owners Equity75,000
Total cash in48,10450,51053,03555,687609,032541,799595,979
Salaries Payments10,51710,51710,51710,517109,167129,986133,886
Material Payments9,62110,10210,60711,13790,300108,360119,196
Purchases Payments10,74010,74010,74010,740117,203131,483134,185
Investments in Goodwill75,000
Interest Expenses4554534524505,4985,2805,045
Equipment Payments58,750
Loan Payments2382402412432,8143,0323,267
Tax Payments21,37328,555
VAT Returns (Rebates)11,59020,94947,90349,512
Total cash out31,57043,64132,55633,086479,680447,416473,645
Closing Bank Balance79,40486,272106,751129,352129,352223,734346,068
VAT on Sales7,1647,5237,8998,29467,24580,69388,763
VAT on Purchases3,0323,1043,1793,25839,65535,72137,738
VAT Returns (Rebates)11,59013,41647,90349,512
St. Petersburg Russian Restaurant
CASH FLOW (PART 1)DescriptionNov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06
Cash flow provided/used by operating activities
Net Income-9,764-4,7633,6954,9186,1315,6646,7267,841
Depreciation625625625625625625625625
Cash Earnings-9,139-4,1384,3205,5436,7566,2897,3518,466
Change in Accounts Receivable-9,918-2932,6777,533
Change in Accounts Payable2,8913,1885,240-3,5186,473
Cash flow provided/used by operating activities-19,057-4,4316,99715,9689,94411,5283,83314,939
Cash Flows from Investing Activities
Purchase of property, plant, and equipment-50,000
Investments in Goodwill-75,000
Cash flow provided/used by investing activities-125,000
Cash Flow from Financing Activities
Owners' Equity75,000
Change of long term debt74,773-228-229-231-232-234-235-237
Cash flow provided/used by financing activities149,773-228-229-231-232-234-235-237
Change in cash and cash equivalents5,716-4,6596,76815,7379,71211,2953,59814,702
Net Cash in the beginning of the year5,7161,0577,82523,56333,27444,56948,167
Net Cash at the end of the year5,7161,0577,82523,56333,27444,56948,16762,869
St. Petersburg Russian Restaurant
CASH FLOW (PART 2)DescriptionJul-06Aug-06Sep-06Oct-062005/06 2006/07 2007/08
Cash flow provided/used by operating activities
Net Income9,01210,24111,53212,88764,11985,664108,857
Depreciation6256256256257,5007,5007,500
Cash Earnings9,63710,86612,15713,51271,61993,164116,357
Change in Accounts Receivable
Change in Accounts Payable7,136-3,7588,5649,33135,5474,2519,244
Cash flow provided/used by operating activities16,7737,10820,72022,843107,16597,415125,601
Cash Flows from Investing Activities
Purchase of property, plant, and equipment-50,000
Investments in Goodwill-75,000
Cash flow provided/used by investing activities-125,000
Cash Flow from Financing Activities
Owners' Equity75,000
Change of long term debt-238-240-241-24372,186-3,032-3,267
Cash flow provided/used by financing activities-238-240-241-243147,186-3,032-3,267
Change in cash and cash equivalents16,5356,86820,47922,601129,35294,383122,334
Net Cash in the beginning of the year62,86979,40486,272106,751129,352223,734
Net Cash at the end of the year79,40486,272106,751129,352129,352223,734346,068
St. Petersburg Russian Restaurant
BALANCE SHEET (PART 1)DescriptionNov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06
Cash5,7161,0577,82523,56333,27444,56948,16762,869
Accounts Receivable
Inventory
Other Accounts Receivable9,91810,2117,533
Total Current Assets15,63411,26815,35923,56333,27444,56948,16762,869
Fixed Assets50,00050,00050,00050,00050,00050,00050,00050,000
Acc. Depreciation-625-1,250-1,875-2,500-3,125-3,750-4,375-5,000
Goodwill75,00075,00075,00075,00075,00075,00075,00075,000
Total Fixed Assets124,375123,750123,125122,500121,875121,250120,625120,000
Total Assets140,009135,018138,484146,063155,149165,819168,792182,869
Accounts Payable
Other Payables
Bank and S.T. Liabilities
Tax Due721,9604,2026,816
VAT Payable2,8916,0079,3593,5997,458
Salary & Benefits Payable
Total Current Liabilities2,8916,07911,3197,80114,274
L.T. Liabilities74,77374,54674,31674,08573,85373,62073,38473,148
Other Provisions
Pension Provision
Total L.T. Liabilities74,77374,54674,31674,08573,85373,62073,38473,148
Total Liabilities74,77374,54674,31676,97779,93384,93981,18687,422
Owners Equity75,00075,00075,00075,00075,00075,00075,00075,000
Profit Provision
Retained Earnings-9,764-14,528-10,833-5,9142175,88012,60620,447
Total Equity65,23660,47264,16769,08675,21780,88087,60695,447
Total Equity and Liabilities140,009135,018138,484146,063155,149165,819168,792182,869
St. Petersburg Russian Restaurant
BALANCE SHEET (PART 2)DescriptionJul-06Aug-06Sep-06Oct-062005/06 2006/07 2007/08
Cash79,40486,272106,751129,352129,352223,734346,068
Accounts Receivable
Inventory
Other Accounts Receivable
Total Current Assets79,40486,272106,751129,352129,352223,734346,068
Fixed Assets50,00050,00050,00050,00050,00050,00050,000
Acc. Depreciation-5,625-6,250-6,875-7,500-7,500-15,000-22,500
Goodwill75,00075,00075,00075,00075,00075,00075,000
Total Fixed Assets119,375118,750118,125117,500117,500110,000102,500
Total Assets198,779205,022224,876246,852246,852333,734448,568
Accounts Payable
Other Payables
Bank and S.T. Liabilities
Tax Due9,82013,23317,07721,37321,37328,55536,286
VAT Payable11,5904,4199,13814,17414,17411,24312,756
Salary & Benefits Payable
Total Current Liabilities21,41017,65226,21535,54735,54739,79849,042
L.T. Liabilities72,91072,67072,42972,18672,18669,15565,887
Other Provisions
Pension Provision
Total L.T. Liabilities72,91072,67072,42972,18672,18669,15565,887
Total Liabilities94,32090,32298,645107,733107,733108,952114,929
Owners Equity75,00075,00075,00075,00075,00075,00075,000
Profit Provision
Retained Earnings29,45939,70051,23264,11964,119149,782258,639
Total Equity104,459114,700126,232139,119139,119224,782333,639
Total Equity and Liabilities198,779205,022224,876246,852246,852333,734448,568
St. Petersburg Russian Restaurant
SUMMARYT OF BANK LOAN
Bank loan2005/062006/072007/08Total
Interest Accrued0000
Loan Balance72,42969,41666,16966,169
Capital Borrowed75,0000075,000
Capital Paid2,5713,0133,2478,831
Interest Charged5,0775,3305,09615,503
Interest Paid5,0775,3305,09615,503
CONCLUSION
From a detailed review of the enclosed projections, it is to be concluded that the expected profits are comfortably sufficient to justify the pursuing of the objectives detailed at the beginning of this business plan. PAGE 5Prepared By Rosetta IT Solutions Ltd. Pagewww.rosetta-it.com