ALL SALES, INCOME, EXPENSE FIGURES IN US DOLLARS PROJECTED MINIMUM SALES AND COST:
I will make this projection starting with the income and expenses for a single shift. It is now my opinion that the hours of operation should be opening at
8 (08:00) AM each morning and closing at 2 (02:00) AM the next morning.
The first shift will arrive at work at 07:30 hours each morning and work until
17:00 hours. The second shift will arrive at 17:00 hours and work until restaurant closes at 02:30 hours. At 01:00 hours a cleaning person will arrive and clean and dispose of all trash and garbage having restaurant ready for morning operations the next morning. Employees will be paid a daily salary paid every 1st and 15th of each month for the number of days work during the time period.
For computing purposes every month will be considered to have 30 days.
General Manager/Director----------------------------$1500 per month (per shift $25)
Assistant Managers (1)------------------------------- $650 per month (per shift $11)
Dinning Room/Service Manager (4)---------------$400 per month (per shift $20)
First Cooks (5)--------------------------------------------$400 per month (per Shift $20)
Assistant Cooks (6)-------------------------------------$300 per month (per Shift $14)
Dishwasher/Kitchen Helper (6)----------------------$250 per month (per Shift $12)
After Hours Cleaning Person (2)---------------------$300 per month (per Shift $ 7)
Waitresses (10) tips plus------------------------------$100 per month (per Shift $ 5)
Each shift will be comprised of the following employees:
Manager
Assistant Manager Cost per Shift-----------------------$50
After Hours Cleaning
Dining Room Service Manager-------------------------------------$20
First Cook------------------------------------------------------------------$20
Assistant Cook-----------------------------------------------------------$15
Dishwasher/Kitchen Helper------------------------------------------$12
Waitresses (3)-------------------------------------------------------------$15
Total Labor Cost per Shift-------------------------$132.00
For projection purposes we will assume that our new restaurant will prepare
an average of 125 meals per shift. For the sake of ease and convenience we are going to project that these meals will be our most popular item on our menu which should also be the average for food cost. The meals served will be the
200 gm fried chicken filet lunch/dinner, including cole slaw and choice of potatoes or dirty rice.
Cost Breakdown for Fried Chicken Dinner:
Market Cost of Chicken Filet as of today 2.50 Lats or $4.00 per kilo.
200 grams of Chicken Filet------------------$.80
Serving of Cole Slaw--------------------------$.10
Potatoes or Rice--------------------------------$.10
Oil, Spices, Flour, Milk------------------------$.10
Total meal cost-----------------------$1.10
Formula for determining menu cost, remembering that Latvia has a VAT tax.
Cost of meal times 2.75 plus 18%. This meal then would be:
$1.10 X 2.75 X 1.18 ======= Menu Price of $3.60 In Lats item would be 2.25 Lats
Total Sales for our Shift will be 125 dinners times $3.60----------$450.00
%sales
VAT Tax cost-------------------------------------------------------<$ 81.00>
VAT Tax Credit on cost of food acquired for sale---------------- $ 24.75 12.5%
Shift Food Cost will be 125 dinners times $1.10------------------<$137.50> 30.5%
Shift Labor Cost will be-------------------------------- ------------<$132.00> 29.3%
Total Cost for shift-----------------------------------------<$325.75> 72.4%
GROSS PROFIT PER SHIFT-----------------+$124.25 27.6%
MONTHLY PROJECTIONS USING PROJECTED SHIFT SALES/COST:
Two (2) shifts X $450.00 = $900 X 30 days=======$27,000.00
Two (2) shifts X $325.75 = $651.50 X 30 days======<$19,545.00>
Fixed Expenses:
Rent--------------------------------------------------$1500.00
Accounting Fee----------------------------------$ 500.00
Other variable Cost:
Utilities (3%)---------------------------------------$ 810.00
Advertising/Promotion (2%)------------------$ 540.00
Cleaning, Paper Supplies ect.(1.5%)-------$ 405.00
Misc. Expenses (2%)----------------------------$ 540.00
TOTAL FIXED/OTHER COST========================<$4,295.00>
Monthly Net Profit=====================+$3,160.00
Additional Increments of $5000 per month in Sales:
Sales of -----------------------------------------------$32,000.00
Food, Labor, VAT cost (72.4%)--------------<$23,168.00>
Fixed Cost------------------------------------------<$ 2,900.00>
Other Cost (5.5%)--------------------------------<$ 1760.00>
NET PROFIT----------------------+$4,172.00
Additional increment of $5000 per month to $37,000.00 in Sales
Sales of-------------------------------------------------$37,000.00
Food, Labor, VAT cost (72.4%)---------------<$26,788.00>
Fixed Cost-------------------------------------------<$ 2,900.00>
Other Cost (5.5%)---------------------------------<$ 2,035.00>
NET PROFIT----------------------+$5,277.00
Additional increment of $5000 per month to $42,000 in Sales
Sales of-------------------------------------------------$42,000.00
Food, Labor, VAT cost (72.4%)----------------<$30,408.00>
Fixed Cost--------------------------------------------<$ 2,900.00>
Other Cost--------------------------------------------<$ 2,100.00>
NET PROFIT-----------------------+$6,592.00
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