Papa Geo’s – Restaurant Budget Proposal For 2012 - 2017 BUSN-278 [Term] Professor[name] DeVry University ------------------------------------------------- Table of Contents Section | Title | Subsection | Title | Page Number | 1.0 | Executive summary | | | | 2.0 | Sales Forecast | | | | | | 2.1 | Sales Forecast | | | | 2.2 | Methods and Assumptions | | 3.0 | Capital Expenditure Budget | | | | 4.0 | Investment Analysis | | | | | | 4.1 | Cash flows | | | | 4.2 | NPV Analysis | | | | 4.3 | Rate of Return Calculations | | | | 4.4 | Payback Period Calculations | | 5.0 | Pro Forma Financial Statements | | | | | | 5.1 | Pro Forma Income Statement | | | | 5.2 | …show more content…
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). * * 2.2 Methods and Assumptions * * According to the brief given on Papa Geo’s restaurant, there are about 10,000 families living within 15 minutes of the restaurant. Of these, between 3% and 5% are rich households (Phoenix marketing international, Wikipedia) and it is assumed that another 15% comprise of high income and upper middle class households. That leaves about 80% of the 10000 families in the area,that are the target market for the restaurant. * * According to a research paper (in restaurant.org), American families eat out about 4 times a week. However, considering that our target market comprises of mostly middle and lower income families, I’ve assumed that they eat out only about 2 times a week on an average. This means that, about 16000 families [(80%*10,000)*2] eat out in a week in that area in Ohio, Florida. * * In terms of
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.
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.
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
With the population within our restaurant radius growing at a steady six percent per year, the company believes that this
Much of this eating out could be prevented if you yourself were to meal prep once to twice a week for your children. This a much healthier and cost effective option rather than swinging by a drive thru and grabbing
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% of food advertising is for fruits, vegetables, grains, and beans, compared to the 90% for foods and beverages high in fats, salt, or added sugars featured on Saturday morning television.
Besides the fact food preparation is fast, every year thousands of commercials can be seen on TV. According to Spurlock, on average a single person watches about 10,000 different commercials per year, most of them being junk or fast food products. These influential commercials broadcast smart slogans and offer cheap food to attract customers. In a recent survey, at the Brea Mall Food Court, when asked if they ate on a daily basis, 28 % of males said yes, while 25% of women said they too ate out daily. A surprising portion of people, 30% said they enjoyed the taste and quality, while majority about 46% said there was no time to cook at home because of work or hectic schedules. With so many great food specials and a plethora of commercials, its no wonder Americans turn to fast food for meals. Fast food is practical, quick, and reasonably cheap, though unhealthy many seem to no care.
According to Smith (2013), he said that it is well documented that in America eating out has become more common than cooking at home. Now, from the perspective of Bangladesh eating out is a regular practice to a set of people- the community that lives in Old Town Dhaka. To keep the study more simple I would like to consider the population living just in Dhaka City- the capital. Not long ago eating out was little less practiced as it is today. Keeping the old town community aside eating out has also become very popular for the rest of the citizens. However there is a catch here. Such change only came in to play with people with
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
Eating out less is one way that we can change what we eat. Eating out on average costs more than eating out. According to Jane Dornbusch with the Boston Globe “The at-home meal prepared for two came to $11.84 per person. The meal per person at the Outback: $23.84.” This was comparing steak dinners with a side of soup. With eating out being more than twice the cost of eating at home, one can conclude that eating out too often can cause unnecessary economic stress on the consumer.
While the idea of eating outside of the home has been around for a considerable length of time, the fast food industry as we probably am aware it didn 't get its begin until the post-WWII American financial blast. Americans started to spend increasingly and purchase more as the economy blasted and a society of consumerism blossomed. As an aftereffect of this new yearning to have everything, combined with the steps made by ladies while the men were away, both individuals from the family unit started to work outside the home. Eating out, which had beforehand been viewed as an extravagance, turned into a typical event and after that a need. Laborers, and working families, required snappy administration and modest nourishment for both lunch and supper. This need is the thing that drove the amazing accomplishment of the early fast food goliaths, which took into account the family on the go. As the fast food industry started booming, they were the main source of part time job for teenagers. In late 1970’s, a staggering one out of eight US citizens were employed by McDonalds. In the mid-1970s as the nourishment business extended it turned out to be more aggressive setting off the "Burger Wars" of the 80s and 90s. Toward the start of the 21st century the business sector experienced another seismic movement as espresso chains and quick causal eateries rose as genuine contenders to bigger fast food chains. Brands like Starbucks, Chipotle, and Panera were introduced into the industry.
Financial projections of the business are going to be focusing for the first year. One thing that needs to be remembered is that the growth of the restaurant is going to be moderate and the cash flow is going to rise slowly but steady with time. Financial projections are going to be based on break-even
People don’t have enough money to buy anything else than fast food. First of all, "During the 1990s African American income grew tremendously. By 2000, 56% of African American households had an annual income of $35K or more compared to just 36% in 1969. However due to the recession that number dropped to just 51% by 2014 reversing much of these gains. The most dramatic change during the most recent recession was the percentage of Black households making under $15K which was well below the poverty line for families”(INCOME). In addition,"Similar results were found for shopping areas with 0.5-mile buffers. Predominantly black neighborhoods have 2.4 fast-food restaurants per square mile compared to 1.5 restaurants in predominantly white
For this particular business Beach front lane of brownsbay is considered as great location as there is a huge foot traffic and the locality is fond of eating at dine-in places instead of eating anywhere else and also spent more on eating outside rather than cooking by themself. Thus, it is estimated that the business will grow exponentially and by creating niche market in the hospitality industry, the sale of the business during the very frst year will be over $180,000 while maintaining a gross margin of around 82%. The business will gain competitive advantage due to its unique concept and having take out and training of desserts by chefs.
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)