Feasibility Study of a Restaurant

The purpose of this case is to determine which key variables drive Crusty Pizza Restaurant’s monthly profit and then forecast what the monthly profit would be for potential stores. Based off of this information we will be able to make a recommendation to Crusty Dough Pizza Restaurant on which stores they should open and which they avoid. The group was provided 60 restaurants’ data that included monthly profit, student population, advertising expenditures, parking spots, population within 20 miles, pizza varieties, and competitors within 15 miles. For the potential stores we were given all of this

70 people), with each seat generating a net revenue (revenues minus costs of operation) of $35. Aggregate

See the frame used to analyze the case in Exhibit 1, the forecast in Exhibit 2, a breakdown of costs calculations in Exhibit 3, a breakdown of “Equipment & Fixture” costs and time allocation of all fixed costs in Exhibit 4. ASSUMPTIONS MADE (refer to the framework shown in exhibit 1 to identify each element: Price, Quantity, Fixed costs, Variable costs): General Assumptions: I assumed the cafè to stay opened 50 weeks, 350 days per year. Price: All data available from the case. No assumptions

I have project that the first-year revenue of $20,000 and a 15% growth rate for the next two years. The complete cost of sales is projected to average 50% of gross sales, including 40% for the purchase of equipment and 10% for the purchase of additional items. Net income is projected to reach $70,000 in four three as sales increase and operations become more

Also, teething problems with marketing, operations etc might not lead to optimum sales. Therefore, we will project only 60% of this figure as first year sales and use the estimated figure as the sales figure for Year 2. Over the planning period, starting from Year 2 onwards, sales are expected to grow at a rate of 3.9% every year, in line with industry estimates of the average growth of the restaurant industry in the US (Source: Mintel International, cited in section 6.0).

$200,000 - $500,000 Daily Operations Equipment (beds, towels, washer dryer, etc.) $1,000,000 – 5,000,000 Supplies $20,000 - $50,000 Operating Expense $779,000 - $832,000 Employees, 200-300 part time, @$7.25/hr.

Jack’s Sandwich Station has grown significantly since the business starting operating 5 years ago. The business started in a mobile food trailer, however, thanks to the popularity and taste of Jack’s sandwiches, it has added three bicycle towed concessions. Now, Jack is wanting to expand his business and open a restaurant 20 miles from his mobile food trailer location. Given the location of his restaurant, near the mall and suburbs, Jack sees a significant opportunity to expand his business. In order to accomplish this, Jack will need to analyze his growth strategy, business form, financing, organizational structure and staffing needs, customer and promotion strategy, and any ethical and social responsibilities he will have.

Cost of goods sold | (9,000) | 0.900 | (8,100) | Gross profit | 6,000 | |

A restaurant is a place where people pay to sit and eat meals that are served and cooked on the premises. Having a good restaurant is essential in order to have a profitable business. Yes, the food makes a restaurant good, but there are many other factors that can improve a restaurant. Ninfa’s Mexican restaurant was established in 1973 by a woman named Ninfa Rodriguez. Known as “Mama,” Ninfa started her business with a ten-table restaurant, using her own pots and pans, and created the world-renowned tradition of serving great food and delicious Margaritas. Ninfa’s has been recognized as the place where fajitas were first served to the public. Her legacy is about enjoyable food, as well as embracing everyone in the restaurant as family. Ninfa’s is an exceptional restaurant that includes good quality of food, with good pricing and customer service, as well as an inviting atmosphere for all families.

Takeout will be another part of the business. "La cucina di qualità a casa" has a very large potential clientele. After starting the restaurant we will start the catering business too. On festivities we will also have a menus for client to select from, and we will offer full catering service providing everything from table settings to the dessert. We anticipate our total sales allocation to be 90% restaurant sales and 10% catering sales. The combined cost of sales will be 33% producing a gross profit of 67% on total

A restaurant owner is considering expansion. He will collect data on his occupancy rates at various times of day, the wait times of customers before they are seated and served, conduct a survey of his current customers, research his competitors, and conduct a financial analysis. These statistics will enable him to make business decisions about how big his expansion should be, how many more booths and

The name of the business is Around the World. It is a one of a kind restaurant/buffet. It all started in late 2014 when Aimee Kustar and Cassie Pelletier came up with the idea of opening up a restaurant that had different themes within. It would appeal to people with different tastes and not make them always choose a different restaurant to find different types of food. There are no affiliates as of now, but that may be subject to change in the future. Right now, the current stage of progress is in the beginning. The plan is still being drawn up and ideas are still being made. The company has not opened yet. The unique feature of this restaurant is the whole theme. Most restaurants and buffets have a theme like Italian food, Japanese food, or Indian food. This restaurant will be a mix between many different cultures, so all of those different foods would all be in the same restaurant. When people go out to eat, they typically ask the question “what are we in the mood for?” this leads to them having to choose on ONE single type of food category whether it be Italian, BBQ, Chinese, etc. Instead, this decision doesn’t have to be made and all tastes can be taken into play in our restaurant. There will be no more fighting over who gets to pick the type of food they want because everyone can enjoy the type they want without having to sacrifice another’s. We do have an experience with different cultures, this will help with the overall layout of the

The restaurant industry is a simple concept, the store prepares the food, and consumers pay for it. Some people visit restaurants in order to save time or enjoy a certain taste that the restaurant has cornered. Others choose to eat out for celebrations and special occasions. Then others want to have a meeting place or study location to call their own. Whatever the reason for a consumer to eat out, there is a restaurant for them. Restaurants cater to all of the above reasons and take time to study and apply strategic principles in order to get customers in the door.

| Own brand | E-commerce | Bargain market | Price | BBQ: $600 | BBQ: $620 | BBQ: $500 | Price | Furniture: $850 | Furniture: $880 | Furniture: $650 | Price | Accessories: $50 | Accessories: $55 | Accessories: $40 | Unit contribution margin | BBQ: $500 | BBQ: $300 | BBQ: $200 | Unit contribution margin | Furniture: $600 | Furniture: $420 | Furniture: $220 | Unit contribution margin | Accessories: $40 | Accessories: $20 | Accessories: $10 | Total revenue | 8988000 | 15732000 | 10350000 | Total gross profit 2012/13 | 7084800 | 164000 | 3625000 | Additional fixed costs | Add lease $1000000 Add labour $500000 Add plant (depreciation): $500000 | Add training: $50000 Add online store development: $100000 Add new plant and equipment (depreciation): $150000 Add labour: $250000 Add reconfiguration of warehouse/office: $50000 | See approved budget (no change in fixed costs) | Total net profit 2012/13 | 200086 | 1679286 | 1259714 |

We can also compute for per unit cost of food (as item sold and cost of sale) by dividing the total Food Revenue/Food Cost of Sale by Unit Rental Count giving us P1,000 and P450 respectively. We will then try to create a forecasted income statement based on 40% occupancy (assuming only travel tour customers will utilize the hotel). 40% occupancy is 3,942 unit rentals (9,855 x 0.4).