Sample Business Plan - Restaurant

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St. Petersburg Russian Restaurant

Business Plan

&

Cash Flow Projections


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


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.


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.


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


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


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.


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.


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


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


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


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


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


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


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


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


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


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


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

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Sample Business Plan - Restaurant