Budget Proposal
| Papa Geo’s (5 Year Budget Proposal) | | | 1.0 Executive Summary |
Papa Geo’s is devoted to bringing top notch Italian cuisine at an affordable price that everyone can enjoy, because at Papa Geo’s you’re not just our guest you’re family. We offer a wondrous all-you-can-eat style buffet of the fines Italian cuisine. Unlike your typical sit-down buffets in the Orlando, Florida area; we ensure a unique experience with a combination of both exceptional foods as well as great entertainment that the entire family can enjoy. The following budget plan illustrations how our restaurant will manage our expenses to increase the company’s revenues allowing for a 10 % gain in profit of sales. The budget plan for Papa Geo’s covers the first five years of our company’s growth. The up-front amount for required to be invested is $992,000.00. The loan will be paid in full during the first quarter of the fourth year of business. The net present value for the up-front amount to be invested is $1,069,822 with an internal rate of return at 28% on the investment. | | 2.0 Sales Summary |
2.1 Sales Forecast
Papa Geo’s total sales will start with the industry average in its first year of $414,616.45. We at Papa Geo’s are striving to compete with the top industry companies by targeting an increase of 10% per year in sales over the next five years. By promising and fulfilling our excellent services and quality of food the 10% increase per year maybe an understatement of where our restaurant could be headed in the future. Below is the projection of our sales for the next five years based on a 10% increase in sales each year.
2.2 Methods and Assumptions
The basic assumptions are that we keep our inventories at about 10% of the next month’s sales along with maintaining an average cost of materials and labor at about $4.00 per meal. Papa Geo’s will be open from 10:00am to 9:00pm, 7 days a week with our peak hours being 3:00pm – 6:00pm Monday through
Papa Geo’s is devoted to bringing top notch Italian cuisine at an affordable price that everyone can enjoy, because at Papa Geo’s you’re not just our guest you’re family. We offer a wondrous all-you-can-eat style buffet of the fines Italian cuisine. Unlike your typical sit-down buffets in the Orlando, Florida area; we ensure a unique experience with a combination of both exceptional foods as well as great entertainment that the entire family can enjoy. The following budget plan illustrations how our restaurant will manage our expenses to increase the company’s revenues allowing for a 10 % gain in profit of sales. The budget plan for Papa Geo’s covers the first five years of our company’s growth. The up-front amount for required to be invested is $992,000.00. The loan will be paid in full during the first quarter of the fourth year of business. The net present value for the up-front amount to be invested is $1,069,822 with an internal rate of return at 28% on the investment. | | 2.0 Sales Summary |
2.1 Sales Forecast
Papa Geo’s total sales will start with the industry average in its first year of $414,616.45. We at Papa Geo’s are striving to compete with the top industry companies by targeting an increase of 10% per year in sales over the next five years. By promising and fulfilling our excellent services and quality of food the 10% increase per year maybe an understatement of where our restaurant could be headed in the future. Below is the projection of our sales for the next five years based on a 10% increase in sales each year.
2.2 Methods and Assumptions
The basic assumptions are that we keep our inventories at about 10% of the next month’s sales along with maintaining an average cost of materials and labor at about $4.00 per meal. Papa Geo’s will be open from 10:00am to 9:00pm, 7 days a week with our peak hours being 3:00pm – 6:00pm Monday through
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