Net Present Value and Papa Geo

First focusing on the fast food industry overall, people age from 18 to 34 are more likely to go to fast food restaurants in the last seven days than other demographic groups. This can be largely attributed to the quick service and relatively lower price that fast food restaurants provide, which accommodate to their quick pace of life and financial status. In addition, households with one or more child are also more likely to visit fast food restaurants, a result of the large market of advertising burgers and fries towards kids and families, making fast food restaurant a place for family fun time.

• People eat about one-third of their meals at restaurants, a figure that has almost doubled since the late 1970s.2 Fast food consumption is even higher among adolescents, with 75% eating fast food at least once a week.3

Smackey Dog Foods, Inc. is a relatively young and rapidly growing company. With sales growth that is far outstripping their competitors and expanding operations, the company is in a vulnerable period. The majority of small businesses go bankrupt within the first five years of operation, and the course that the Company follows now has the potential to be either beneficial or disastrous. As management is basing their decision expand on projections developed by the sales teem, the accuracy

Strategy a) Market Focus/Analysis The restaurant targets middle to lower-middle class families with children, as well as adults and seniors, located in Orlando, Florida. The area within 15 minutes of the store has 10,000 families, mostly from lower to middle class neighborhoods. Average family size is 4 people per household. There is no direct competition; however, there are fast food restaurants like McDonald’s, Taco Bell and Wendy’s in the geographical target market. The lower to middle class population is growing at about 6% per year over the next five years in this area.

Brain Enterprises Budget Proposal For Papa Geo’s Restaurant BUSN-278 SUMB11 Sec B Professor Marie Main DeVry University ------------------------------------------------- Table of Contents Section | Title | Subsection | Title | Page Number | 1.0 | Executive summary | | | 3 | 2.0 | Sales Forecast | | | 3 | | | 2.1 | Sales Forecast | 3 | | | 2.2 | Methods and Assumptions | 4 | 3.0 | Capital Expenditure Budget | | | 4 | 4.0 | Investment Analysis | | | 6 | | | 4.1 | Cash flows | 7 | | | 4.2 | NPV Analysis | 8 | | | 4.3 | Rate of Return Calculations | 8 | | | 4.4 | Payback Period Calculations | 9 | 5.0 | Pro Forma Financial Statements | | | 9 | | | 5.1 | Pro Forma Income Statement These figures are not definite and will likely change over time as figures are being actualized every year. These assumptions were based on an article written by the National Restaurant Association where they stated that as long as the economy keeps doing well the estimated sales in restaurants will exceed $604 Billion in 2011 alone (National Restaurant Association, 2011). From the projected forecast of sales for 2011 we are assuming that the prosperity in growth will continue each year. However with any economy nothing is for sure and sales should be monitored and increasing prices to keep up with costs will most likely need to be reviewed bi-annually.

Student Name MBA- IT Management E-Business QRT2 Task 1 April 15, 2013 A1. Viability of Product or Service: Spice King is an Indian Cuisine and Sweets restaurant located in Renton, WA. Their current site, www.spicekingrenton.com, could use some work to increase their web imprint and bring more business to the company. The restaurant is located within a small ethnic grocery shopping mart on a side street in Renton. The restaurant is frequented by the local shoppers but offers so much more than just a quick lunch. They offer a range of Indian food and desserts and offer delivery and catering. Delivery and catering orders are primarily done via phone call. Customer feedback shows because of current site deficiencies, few orders are

Customers also eat at Papa Geo’s due to the cleanliness of the facility, the speed of getting their seat and food, and the vending machines which keep the children busy while adults enjoy their meal.

Over the past few decades times have changed; one cannot say if it has been for better or worst. It is becoming more common for a household to have two working parents versus just the father being the only source of income. Not to mention that it seems that everyone now is running around one hundred miles an hour. With that said, it has affected the American households eating and living habits. Fast food, frozen dinners and processed food have become part of our daily routine. Half of the time people have no idea what chemicals, preservatives or ingredients that they are consuming. It is more a question of accessibility even though our health should be our main concern. David Zinczenko in, Don’t Blame the Eater, portrays the number of restaurants found in close range when he illustrates, “Drive down any thoroughfare in America, and I guarantee you’ll see one of our country’s more than 13,000 McDonald’s restaurants. Now, drive back up the block and try to find someplace to buy a grapefruit”(7). Zinczenko argues that a lot of fast food restaurants are available to Americans compared to healthy food choices. In Portion Distortion --You Don’t Know the Half of It, Shannon

According to National Restaurant Association the restaurant industry covers one million fast food service locations in the U.S. and employs 14 million people. Globally, fast food generates a revenue of over $570 billion and it is expected to exceed $780 billion in 2016. Furthermore, the industry expects an annual growth of 2.5 percent for the next several years. The United States generated a revenue of $200 billion in 2015. In the restaurant market share 48.5 percent are covered by full service restaurants, which means that the QRS segment has sales of 51.5 percent and is supposed to grow

Fast food sabotages family dinners. The multitude, convenience, and affordability of fast-food restaurants encourages many families to eat on the run in the car, rather than having unhurried time together at the dinner table. Even mothers or fathers with the best intentions of cooking at home and eating with their children can find it hard to resist a drive-through window that makes dinner quick and easy. According to an article in Restaurant Quarterly, residents in medium-sized cities drives past an average of seven fast-food establishments on their way home from work. For a tired parent, passing a bag or box over the back seat to hungry, impatient children is a seductive option when compared to the cooking and dishwashing waiting at home. The gulping of burgers and sodas quickly consumed in cars have begun to replace the simple, slow joy of eating, talking, and relating to each other over a shared

According to the National Restaurant Association, one study showed that restaurant food represents about a fourth of Americans’ total caloric intake and one third of total sodium consumption. The restaurants of the fast food industry spend billions of dollars a year to market their products. According to cspinet.org, only 2%

The restaurant industry is said to be one of the oldest industries in the economy. As the economy and urbanization grow, so too does the industry of restaurants; it’s for this reason that the industry has been growing at a rapid pace. Even with the restaurant industry ebbing and flowing, there are still new entities entering the fray consistently. Some restaurants may close, but it will not be too long before a new restaurant opens in the place of the old one. Historically, the restaurant industry has contributed nearly 4 percent to the gross domestic product (GDP) of the United States (U.S.) economy. The most recent findings show that the restaurant industry employs more than 12.7 million people (which is approximately equal to 9 percent of the

Several studies have shown that the increase in fast food restaurants over the past few decades has resulted in a negative impact on the already outrageous obesity rate.According to the National Bureau of Economic Research, the number of fast food restaurants over the past thirty years has tripled, which equates to about three hundred thousand establishments in the United States alone. During this time the number of children, ages six to nineteen classified as obese, has risen from five percent to seventeen percent. The percentage of adults classified as obese has risen from half to two-thirds the population. Although fast food restaurants may be a contributing factor to the increasing obesity rate in the United States, people are

percent larger. According to an article written by Trent Hamm, the average American eats an average of 4.2 commercially prepared meals per week. In other words, as a nation, we eat out between four and five times a week however, according to an article written about snacking 50 percent of Americans snack three to four times a day which breaks down to 35 snacks in a week. Which has more calories 5 meals eating out a week or 35 snacks a week? That depends on what you order at a fast food restaurant and what your snacks are however, let’s take this into consideration let’s say you snack daily but you also eat out quite a bit. Both factors would contribute to you being obese. We blame fast food restaurants for obesity when it is the individual’s choice what to eat. Even when you’re at home you eat junk food so even if you didn’t eat out eating a lot of junk food would make you obese. I stated above in one of my paragraphs that it is the individual’s choice what to eat and how they let advertisements influence them. So, if you ask me if you should blame anyone it should be the advertisements well the people who made them. Let’s take a look at the advertisement at the bottom of this page the one on the left is what grabs your attention the one on the right is what they actually serve you Know you may be asking yourself how to do they make that burger look so good. Well according to an article written by Becket Adams that they dress up their food with all kinds

(Mccann, (2013) found that more men takeaway than women) Moreover, another study was conducted using participants from an introductory nutrition course at a university during week five of university in 2004. The study included individuals that were 19 years old and older. The same number of men and women participated in the study thus this was a control variable;113 women and 113 men took part in the study. Participants were given questionnaires concerning food choices. It was found that there were significant differences between the answers of men and women regarding eating at fast food restaurants at breakfast and lunch but not for dinner or snacks. It was found that 83% of men and 95% stated that they would not eat at fast food restaurants for snack and breakfast. Furthermore, it was found that there were significant differences between the responses of men and women when asked about eating at fast food restaurants at lunch at least one time every week. 58% of women and 84% of men stated that they eat fast food at least once a week. (Driskell, Meckna, Scales (2006) found that a larger percentage of men ate fast food for lunch at least one a week)