4 Moons Pizzeria

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Table of Contents
1.0 Executive Summary ..............................................................................................................1
1.1 Objectives ....................................................................................................................1
1.2 Mission .........................................................................................................................1
1.3 Keys to Success ...........................................................................................................1
Chart: Highlights ........................................................................................................2
2.0 Company Summary ..............................................................................................................2
2.1 Company Ownership ....................................................................................................2
2.2 Start-up Summary ........................................................................................................3
Chart: Start-up ...........................................................................................................3
Table: Start-up ...........................................................................................................4
3.0 Services ................................................................................................................................4
4.0 Market Analysis Summary ....................................................................................................4
4.1 Market Segmentation ...................................................................................................5
Table: Market Analysis ..............................................................................................5
Chart: Market Analysis (Pie) ......................................................................................6
4.2 Target Market Segment Strategy .................................................................................6
4.3 Service Business Analysis ...........................................................................................6
4.3.1 Competition and Buying Patterns .....................................................................7
5.0 Strategy and Implementation Summary ................................................................................7
5.1 Competitive Edge .........................................................................................................7
5.2 Marketing Strategy .......................................................................................................7
5.3 Sales Strategy ..............................................................................................................8
5.3.1 Sales Forecast ..................................................................................................8
Table: Sales Forecast .......................................................................................9
Chart: Sales Monthly .........................................................................................9
Chart: Sales by Year .......................................................................................10
6.0 Management Summary .......................................................................................................10
6.1 Personnel Plan ...........................................................................................................10
Table: Personnel .....................................................................................................11
7.0 Financial Plan .....................................................................................................................12
7.1 Start-up Funding ........................................................................................................12
Table: Start-up Funding ...........................................................................................12
7.2 Important Assumptions...............................................................................................13
Table: General Assumptions ...................................................................................13
7.3 Break-even Analysis ..................................................................................................14
Table: Break-even Analysis .....................................................................................14
Chart: Break-even Analysis .....................................................................................14
7.4 Projected Profit and Loss ...........................................................................................15
Chart: Profit Monthly ................................................................................................15
Chart: Profit Yearly ..................................................................................................16
Chart: Gross Margin Monthly ...................................................................................16
Chart: Gross Margin Yearly .....................................................................................17
Table: Profit and Loss ..............................................................................................17
7.5 Projected Cash Flow ..................................................................................................18
Table: Cash Flow.....................................................................................................18
Chart: Cash..............................................................................................................19
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Table of Contents
7.6 Projected Balance Sheet ............................................................................................20
Table: Balance Sheet ..............................................................................................20
7.7 Business Ratios .........................................................................................................21
Table: Ratios ...........................................................................................................21
Table: Sales Forecast ................................................................................................................1
Table: Personnel ........................................................................................................................2
Table: Profit and Loss ................................................................................................................3
Table: Cash Flow........................................................................................................................4
Table: Balance Sheet .................................................................................................................5
Table: General Assumptions ......................................................................................................6

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4 Moons Pizzeria
1.0 Executive Summary
The following plan is based on years of experience, is highly focused and promises to follow a
path of prosperity. It is based on conservative sales figures, and actual sales may be higher. The
projections contained herein are authentic and will be used as the budget for the business. 4
Moons Pizzeria will show a profit almost immediately, and will increase sales and profits each
year thereafter.

1.1 Objectives
The objective is to lease a site at 555 West Blue Plum Lane. We will need to remodel the
interior according to the Franchisor's design. We plan to duplicate and massage the successful
formula used by Franchisor. We will use our own personal strategies and skills to create our
own success in our 4 Moons Pizzeria. We plan to train our crew to ensure outstanding results in
quality food and customer service. Our objectives are as follows.

Be the first 4 Moons Pizzeria in Nevada

Provide the highest quality product, duplicating Franchisor's successful pizzerias in
Oregon
Give top notch service in a quick and efficient manner
Keep our menu simple to maintain low food cost
Maintain the competitive, fast-casual dining at the mid-range price point
Use marketing strategies to build volume quickly
First year sales over $677,000 with a 6% growth yearly
Maintain and expand an outstanding reputation as being the best neighborhood pizzeria

1.2 Mission
4 Moons Pizzeria exists for the purpose of generating sales and profit. Because we are a service
business, we will also exist to serve our customers. These two reasons for our existence are
inextricable. If one aspect does not exist, the other will cease to exist.

We will always offer a fresh product and welcoming environment

We will remain cheerful, courteous, well trained, and focused on pleasing our guests
We will strive to become the first destination of choice for those in our neighborhood
and community
Our staff will be offered a workplace where they can prosper and grow in a dignified,
fun, and rewarding manner
We will give support to and contribute to our community schools, churches, groups, and
businesses

1.3 Keys to Success

Our policy of being operating managing members is to make sure we pass by every table to
greet, visit with, or at least send a smile to our guests.
We will visit any table or answer to any phone call that has feedback, positive or negative. We
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4 Moons Pizzeria
will use every means available to satisfy our customers.
We will be committed to the success and happiness of our staff.
We will be committed to providing quality food and beverage at all times.
We will consistently follow the franchisor's proven methods.

2.0 Company Summary

Established in 1958, 4 Moons Pizzerias are an award winning, "Home of the brick oven Pizza".
They offer a comfortable, friendly ambience, with its new "Modern Pizzeria" design. The menu
features pizza, hot calzones, strombollis, sandwiches, baked pastas, and fresh tossed salads. The
pizza dough is made fresh everyday on site. Beverages include soft drinks, imported and
domestic beer, micro brews, and an impressive wine list. Food ingredients are the finest
available including USDA Choice meats.

2.1 Company Ownership

We are an LLC, limited liability company, with four managing owners holding an equal share
(25%) and interest in the franchise.

Carol Mittani: General Managing Owner - Hands-on management of all daily restaurant
and company operations.
Steve Solutrian: Vice Managing Owner / Sales and restaurant operations. Hands-on
management of daily operations and sales trends.
Diane Solutrian: Vice Managing Owner / All office procedures. Hands-on management of
daily operations.
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4 Moons Pizzeria

Rikard Mittani: Vice Managing Owner / Marketing and future finances and investments.
Hands-on management of daily operations.

2.2 Start-up Summary

We hope to take advantage of an existing structure located at 555 West Blue Plum Lane, at
Lakeside Center. It is 2,828 square feet. We will remodel according to the Franchisor's designs to
make our concept both visually and functionally suitable.
Construction is estimated at $214,630 - see attached "Franchisor's Construction Cost Sheet" for
item breakdown.*
Start-up cash on hand is estimated for 3 months working capital, inventory, labor and rent.
Short-term assets include phone equipment, smallwares, booths, chairs, tables, pendants,
sconces, and lighting.
Long-term assets include all kitchen equipment, POS system, and signage.
*Confidential and proprietary information omitted from this sample plan.

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Table: Start-up
Start-up
Requirements
Start-up Expenses
Remodel Costs
Proscreen/Wallpaper-Menu Boards
Insurance
Franchise Fee
1st month rent
Drafting/Engineering
City fees/Misc costs
Beer and wine license
Training/travel
Utility start-up costs
Design
Total Start-up Expenses

$214,630
$3,644
$1,500
$25,000
$4,242
$3,000
$2,491
$500
$2,000
$5,000
$4,200
$266,207

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

$87,286
$10,000
$41,775
$99,732
$238,793

Total Requirements

$505,000

3.0 Services
4 Moons Pizzerias are comfortable and inviting. We are a fast-casual operation with dine in,
take-out, and delivery. The decor and theme are centered around the cutting edge open
kitchen with brick arches and distinctive lighting. Our energy and atmosphere will appeal to
families, groups, and schools.
The real power and energy of the pizzeria will come from the attentive and courteous service
provided by our managers and staff. Our fresh menu will be prepared by our motivated kitchen
team, and carefully orchestrated to provide the best service to our customers who are our
priority. We will have at least one manager on duty at all times.
Our hours are Sunday thru Thursday 11 am. to 10 pm. Friday and Saturday 11 am. to 11 pm.
Take out available during store hours. Delivery hours are 4 pm to closing everyday we are
open. We will offer delivery all day on Saturday and Sunday and some holidays.

4.0 Market Analysis Summary

Ohno is one of the fastest growing cities in America with Nevada being voted the best small
business state in the country. Ohno is a community diverse in the arts and culture. We have a
strong labor market, low taxes, affordable housing, and natural amenities making Ohno an
attractive place to live and do business.
The greater Ohno metropolitan area population has grown one third through the last decade
and is projected to grow 11.4% in the next five years.

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4 Moons Pizzeria
The median age is 36 years old with household incomes averaging $65,895. With a strong local
economy we have a population with disposable cash for dining and entertainment.
According to the Nevada Restaurant Association, Nevada restaurants are expected to lead
the nation in sales growth at 7.6%. Nevada is also the fastest growing state in the union.

4.1 Market Segmentation

4 Moons target market is a three mile radius of site location. Within the three mile operating
radius is a population of 121,705. The total number of households in this area is 48,839 with
an average income of $58,197.
This area is densely populated, and a desirable part of town in which to live. It is an underserved portion of town, especially to the west up to the Caughlin Ranch area. It is on one of
the most traveled corridors in Ohno, Blue Plum Lane. Located near two of Ohno's most popular
malls, Parklane and Shopper's Square.
Our target market includes adults 20 to 54 years old who socialize and have families. Children
are a big part of our market, at a third of the population is this area. Ages 4 to 19 prefer pizza
over any fast food and often influence family dining decisions. According to one study, 93% of
the U.S. population eats pizza. If we sold one pizza per month with an average of $17.00 per
household, we would generate $721,141 in one month. This illustrates that with effective
marketing, superior product, and proper management we will reach and exceed our projected
sales goals.
In this area we have some of the best schools. 4 Moons Pizzerias provides support for local
area school groups and sports teams, as well as local church groups. We will be involved through
providing sponsorships, discounts, and donations.

Table: Market Analysis

Market Analysis
Potential Customers
Ages 0-19 (preferred fast food)
Ages 20-54 (w/disposable cash)
Over 55
Total

Growth
4%
4%
3%
3.87%

Year 1

Year 2

Year 3

Year 4

Year 5

30,426
61,583
26,775
118,784

31,643
64,046
27,685
123,374

32,909
66,608
28,626
128,143

34,225
69,272
29,599
133,096

35,594
72,043
30,605
138,242

CAGR
4.00%
4.00%
3.40%
3.87%

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4.2 Target Market Segment Strategy

We haven't ruled any one group or class out in our target market area. Just about everyone
eats pizza. Most residents in this area have busy schedules, and find value in exceptional and
timely service, as well as mouth watering, delightful food. We believe most everyone will
appreciate our value based menu and family atmosphere. We have a strong commitment to
community involvement including sponsorship for school/group teams.
We strongly believe we will overcome any competition in our area. The local competition includes
Sticky Paws Pizza, Damynos, Gridlow's Pizza, Hoopla Take-and-Bake, Clodhopper's, and Little
Sayzar. Most of these are at least two miles from our location and are no competition to our
concepts, ideals, fresh products, and welcoming service.

4.3 Service Business Analysis

Pizza Statistics:

Represent 17% of all restaurants.

Americans eat approximately 100 acres of pizza a day.
Pizza is a $32+ billion per year industry with continuing overall restaurant growth.
Accounts for 10% of all food service sales.
93% of Americans eat pizza at least once a month.
67% of Americans order pizza for a casual evening with friends.
Children between 3-11 prefer pizza over all other food groups.

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4.3.1 Competition and Buying Patterns
4 Moons Pizzerias are competitive in the mid price point, fast casual dining market. With an
average ticket of $17.00, we are priced above Hoopla Take-and-Bake and Damyno but below
Squaretable.
Quality, Quick, and Simple is the goal of 4 Moons Pizzerias. The customers are provided with
the highest quality product. Store design provides a warm and friendly environment for all.

5.0 Strategy and Implementation Summary

Emphasize service
We will differentiate ourselves with SERVICE! We will establish our business offering as a clear
and viable alternative for our target market.
Build a relationship-oriented business
Build long-term relationships with customers, not single-visit deals. Become their restaurant
and destination of choice. Make them understand the value of the relationship.
Focus on target markets
We need to focus our offerings on specific population groups as the key market segment we
should own. We do not want to compete for the buyers who go to "fast food" or "take and
bake" types of restaurants. We definitely want to be able to sell to smart, quality conscious
customers.
Utilize the various skills of our Managing Owners and learn through the extensive training
program provided by Franchisor.

5.1 Competitive Edge

Clearly our competitive edge will be our customer service experience and management approach.
Our smiling, unassuming, and good natured approach to all of our customers will be evident, and
highly appreciated.
We will constantly monitor our product to ensure quality food and beverage at all times. Our
recipes are delicious, made fresh daily, and our toppings go all the way to the edge of the pizza
crust.

5.2 Marketing Strategy

We will start our marketing during the construction phase. Our main factor in success is simply
that a person can enjoy a good pizza, fast service, and friendly familiar faces.
We will all be involved in Sales and Marketing. We will gather information about the
neighborhoods, use our POS System to track top sellers and gather a customer base for
marketing offers.
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Kids school tours

Gift Certificate Program
Phone book advertisement
Coupons
Door hangers
Sporting events for schools and group events
Eye catching signage
Excellent service and high quality food
Word of mouth

5.3 Sales Strategy

The marketing strategy discussed previously in this business plan will generate the desired sales.
We require our staff to have a thorough and comprehensive understanding of the menus,
ingredients and methods of preparation of all of our foods. We train our staff to always
describe and recommend items, even to regular customers, and to always up-sell. The key to our
employee's success in up-selling is the realization that it almost always brings in better tips
because the checks are higher.
We will emphasize service to differentiate ourselves. We will establish our business offerings as a
clear and viable alternative for our target market, from the scores of "slow delivery", "frozen
dough", and "your average" pizza chains.
We will build long-term relationships with our customers, becoming their destination of choice for
delivery, take out, and dine in. We will sell ourselves as the best neighborhood and community
pizzeria.

5.3.1 Sales Forecast

We are forecasting sales of approximately $677,000 in our first fiscal year (May 2005 to April
2006) with an opening date of mid-May 2005. We foresee sales increasing at .5% monthly, an
overall yearly rate of 6% per year. Our forecast is conservative and is based on an average of
$17.00 average per order.
We are convinced that our business will increase with time. We have a strong management
team who will be on property daily to monitor daily operations. We will constantly watch food
quality, customer service, and costs.

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Table: Sales Forecast
Sales Forecast
Year 1

Year 2

Year 3

Sales
Total Restaurant Sales
Other
Total Sales

$677,297
$0
$677,297

$717,935
$0
$717,935

$761,011
$0
$761,011

Direct Cost of Sales

Cost of Sales
Other
Subtotal Direct Cost of Sales

Year 1
$135,461
$0
$135,461

Year 2
$143,590
$0
$143,590

Year 3
$152,206
$0
$152,206

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4 Moons Pizzeria

6.0 Management Summary

4 Moons consists of four members with an equal concern in our franchise. We will owner
operate our pizzeria daily. We will keep our starting salaries low to keep labor costs down.
Each member contributes with a generalized assignment as well as being trained in all restaurant
operations, including making pizza, working the counter, and delivering pizza. We are an
extremely experienced, and well balanced team.

Please see our attached resumes for a precise summary.*

Carol Mittani will be General Manager working every day to insure success. Steve Solutrian,
Diane Solutrian, and Rikard Mittani will be on site various hours, and during peak dinner hours
to help with general operational tasks, plus opening to closing hours on the weekend.
* Confidential and proprietary information omitted from this sample plan.

6.1 Personnel Plan

We plan to have a part-time staff to include pizza makers, delivery drivers, and counter
persons. We are planning on a staff of 10 employees to come on at peak business levels.
Our first month will have a higher labor rate due to training, pre-opening preparation and
grand opening labor.
We have forecasted labor at 18% of gross sales. We will strive to keep our payroll at 18% or
lower.

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Table: Personnel
Personnel Plan
Wages
Other
Total People

Year 1
$126,738
$0
14

Year 2
$129,228
$0
14

Year 3
$136,982
$0
14

Total Payroll

$126,738

$129,228

$136,982

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7.0 Financial Plan
Our main concerns will be aggressive time management to keep labor costs under control. Proper
purchasing, food preparation and handling, and control of cheese consumption to keep food costs
down. Growth will be sustained through increased sales.

7.1 Start-up Funding

Our start-up figures are approximate costs for start-up of a 4 Moons Pizzeria franchise as
prescribed by the Franchisor.
4 Moons has $160,000 initial investment, $25,000 of which will cover the franchise fee.
Our estimated start up is $505,000. We are seeking an SBA Loan in the amount of $345,000
(see Long term liability line).

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$266,207
$238,793
$505,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$151,507
$87,286
$0
$87,286
$238,793

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$345,000
$0
$0
$345,000

Capital
Planned Investment
Solutrian, Steve and Diane
Mittani, Rikard and Carol
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

$75,000
$75,000
$10,000
$160,000
($266,207)
($106,207)

Total Capital and Liabilities

$238,793

Total Funding

$505,000

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7.2 Important Assumptions
We are projecting profit based on the performance of other franchises and our own
judgement based on the following:

We assume by using marketing strategies, sales strategies, good customer relationships,

fresh food, and good management practices, we will succeed.
In order to meet the sales goal in the first year, open for at least 360 days, we would
have to sell 111 checks each day with a $17 per check average.
Our sales each day should reach an minimum average of $1,881.43.
Our forecast is based on an average. Some months will increase and others decrease.
We do not predict any major decreases in sales, as Ohno area restaurants are busy all
year round.

Table: General Assumptions

General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Year 1
1
0.00%
7.00%
30.00%
0

Year 2
2
0.00%
7.00%
30.00%
0

Year 3
3
0.00%
7.00%
30.00%
0

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7.3 Break-even Analysis
Break-even based on fixed costs including rent, insurance, maintenance, investor note, and preopening amortization. Additionally, controllables such as service labor, kitchen labor,
management labor, excess rent, advertising, royalty, and legal/professional fees are included.

Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$22,254

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

20%
$17,804

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7.4 Projected Profit and Loss
As the Profit and Loss table shows, the company expects to continue its steady growth in
profitability over the next three years. We predicted a conservative 6% per year increase in
sales.
The first month may have higher payroll due to employee training and restaurant set up.
Our operating expenses include rent at $4,242 estimate per month, royalty fees of 5% of gross
sales, equipment rental and repair, utilities projected at 11% of gross sales, administrative
charges including PC charges, cleaning supplies, payroll charges, and office supplies.
Marketing fees are 4% of gross sales per month.

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Table: Profit and Loss

Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

Year 1
$677,297
$135,461
$0
$135,461

Year 2
$717,935
$143,590
$0
$143,590

Year 3
$761,011
$152,206
$0
$152,206

Gross Margin
Gross Margin %

$541,836
80.00%

$574,345
80.00%

$608,805
80.00%

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Royalty fees
Equip rent/repair
Utilities
Admin charges

$126,738
$0
$30,000
$50,904
$0
$3,000
$0
$3,000

$129,228
$0
$30,000
$50,904
$0
$5,400
$0
$3,000

$136,982
$0
$30,000
$52,431
$0
$5,400
$0
$3,000

Total Operating Expenses

$213,642

$218,532

$227,813

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$328,194
$358,194
$23,367
$91,448

$355,813
$385,813
$21,648
$100,249

$380,992
$410,992
$19,738
$108,376

Net Profit
Net Profit/Sales

$213,378
31.50%

$233,915
32.58%

$252,878
33.23%

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4 Moons Pizzeria
7.5 Projected Cash Flow
The cash flow depends on assumptions for good daily operational management, good traffic
counts in the restaurant, inventory turnover, payment days, and accounts receivable
management. We do not predict any new financing until we open our second franchise.
Principal amounts are based on a loan of $345,000 with a 10 year SBA Loan at 7% interest.

Table: Cash Flow

Pro Forma Cash Flow
Year 1

Year 2

Year 3

Cash from Operations

Cash Sales
Subtotal Cash from Operations

$677,297
$677,297

$717,935
$717,935

$761,011
$761,011

Additional Cash Received

Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

$0
$0
$0
$0
$0
$0
$0
$677,297

$0
$0
$0
$0
$0
$0
$0
$717,935

$0
$0
$0
$0
$0
$0
$0
$761,011

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations

$126,738
$276,887
$403,625

$129,228
$324,826
$454,054

$136,982
$340,198
$477,180

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$22,576
$0
$0
$0
$426,201

$0
$0
$0
$26,332
$0
$0
$0
$480,386

$0
$0
$0
$28,237
$0
$0
$0
$505,417

Net Cash Flow

Cash Balance

$251,096
$338,382

$237,549
$575,931

$255,594
$831,525

Cash Received

Expenditures

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7.6 Projected Balance Sheet
The balance sheet is quite solid. We do not project any real trouble meeting our debt
obligations--as long as we can achieve our specific sales objectives.

Table: Balance Sheet

Pro Forma Balance Sheet
Year 1

Year 2

Year 3

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets

$338,382
$6,044
$41,775
$386,201

$575,931
$6,471
$41,775
$624,177

$831,525
$6,859
$41,775
$880,159

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$99,732
$30,000
$69,732
$455,933

$99,732
$60,000
$39,732
$663,909

$99,732
$90,000
$9,732
$889,891

Year 1

Year 2

Year 3

$26,338
$0
$0
$26,338

$26,730
$0
$0
$26,730

$28,072
$0
$0
$28,072

$322,424
$348,762

$296,092
$322,822

$267,855
$295,927

$160,000
($266,207)
$213,378
$107,171
$455,933

$160,000
($52,829)
$233,915
$341,086
$663,909

$160,000
$181,086
$252,878
$593,964
$889,891

$107,171

$341,086

$593,964

Assets

Liabilities and Capital

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

Page 20

4 Moons Pizzeria
7.7 Business Ratios
The company's projected business ratios are provided in the following table. The final column,
Industry Profile, shows ratios for the "Pizza Restaurant Industry", as determined by the Standard
Industry Classification 5812.0600 with annual sales of $500,000 to $999,000.

Table: Ratios
Ratio Analysis
Year 1
n.a.

Year 2
6.00%

Year 3
6.00%

Industry Profile
5.24%

1.33%
9.16%
84.71%
15.29%
100.00%

0.97%
6.29%
94.02%
5.98%
100.00%

0.77%
4.69%
98.91%
1.09%
100.00%

4.34%
35.11%
43.74%
56.26%
100.00%

5.78%
70.72%
76.49%
23.51%

4.03%
44.60%
48.62%
51.38%

3.15%
30.10%
33.25%
66.75%

18.93%
25.48%
44.41%
55.59%

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes

100.00%
80.00%
48.50%
4.43%
48.46%

100.00%
80.00%
47.42%
0.00%
49.56%

100.00%
80.00%
46.77%
0.00%
50.06%

100.00%
61.91%
39.08%
2.55%
1.38%

Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets

14.66
14.43
76.49%
284.43%
66.86%

23.35
23.11
48.62%
97.97%
50.33%

31.35
31.11
33.25%
60.82%
40.60%

1.14
0.79
49.97%
3.97%
7.93%

Additional Ratios
Net Profit Margin
Return on Equity

Year 1
31.50%
199.10%

Year 2
32.58%
68.58%

Year 3
33.23%
42.57%

n.a
n.a

23.52
11.51
27
1.49

22.95
12.17
30
1.08

22.84
12.17
29
0.86

n.a
n.a
n.a
n.a

3.25
0.08

0.95
0.08

0.50
0.09

n.a
n.a

$359,863
14.04

$597,446
16.44

$852,087
19.30

n.a
n.a

0.67
6%
14.43
6.32
0.00

0.92
4%
23.11
2.10
0.00

1.17
3%
31.11
1.28
0.00

n.a
n.a
n.a
n.a
n.a

Sales Growth
Percent of Total Assets
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 21

Appendix
Table: Sales Forecast
Sales Forecast
Sales
Total Restaurant Sales
Other
Total Sales
Direct Cost of Sales
Cost of Sales
Other
Subtotal Direct Cost of Sales

0%
0%

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$28,750
$0
$28,750

$57,500
$0
$57,500

$57,788
$0
$57,788

$58,076
$0
$58,076

$58,366
$0
$58,366

$58,658
$0
$58,658

$58,952
$0
$58,952

$59,246
$0
$59,246

$59,542
$0
$59,542

$59,840
$0
$59,840

$60,139
$0
$60,139

$60,440
$0
$60,440

Month 1
$5,750
$0
$5,750

Month 2
$11,500
$0
$11,500

Month 3
$11,557
$0
$11,557

Month 4
$11,616
$0
$11,616

Month 5
$11,673
$0
$11,673

Month 6
$11,732
$0
$11,732

Month 7
$11,791
$0
$11,791

Month 8
$11,849
$0
$11,849

Month 9
$11,909
$0
$11,909

Month 10
$11,968
$0
$11,968

Month 11
$12,028
$0
$12,028

Month 12
$12,088
$0
$12,088

Page 1

Appendix
Table: Personnel
Personnel Plan
Wages
Other
Total People
Total Payroll

18%
0%

Month 1
$10,000
$0
14

Month 2
$10,350
$0
14

Month 3
$10,402
$0
14

Month 4
$10,454
$0
14

Month 5
$10,506
$0
14

Month 6
$10,558
$0
14

Month 7
$10,611
$0
14

Month 8
$10,664
$0
14

Month 9
$10,718
$0
14

Month 10
$10,771
$0
14

Month 11
$10,825
$0
14

Month 12
$10,879
$0
14

$10,000

$10,350

$10,402

$10,454

$10,506

$10,558

$10,611

$10,664

$10,718

$10,771

$10,825

$10,879

Page 2

Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Other Costs of Sales
Total Cost of Sales

Month 1
$28,750
$5,750
$0
$5,750

Month 2
$57,500
$11,500
$0
$11,500

Month 3
$57,788
$11,557
$0
$11,557

Month 4
$58,076
$11,616
$0
$11,616

Month 5
$58,366
$11,673
$0
$11,673

Month 6
$58,658
$11,732
$0
$11,732

Month 7
$58,952
$11,791
$0
$11,791

Month 8
$59,246
$11,849
$0
$11,849

Month 9
$59,542
$11,909
$0
$11,909

Month 10
$59,840
$11,968
$0
$11,968

Month 11
$60,139
$12,028
$0
$12,028

Month 12
$60,440
$12,088
$0
$12,088

Gross Margin
Gross Margin %

$23,000
80.00%

$46,000
80.00%

$46,231
80.00%

$46,460
80.00%

$46,693
80.00%

$46,926
80.00%

$47,161
80.00%

$47,397
80.00%

$47,633
80.00%

$47,872
80.00%

$48,111
80.00%

$48,352
80.00%

$10,000
$0
$2,500
$4,242
$0
$250
$0
$250

$10,350
$0
$2,500
$4,242
$0
$250
$0
$250

$10,402
$0
$2,500
$4,242
$0
$250
$0
$250

$10,454
$0
$2,500
$4,242
$0
$250
$0
$250

$10,506
$0
$2,500
$4,242
$0
$250
$0
$250

$10,558
$0
$2,500
$4,242
$0
$250
$0
$250

$10,611
$0
$2,500
$4,242
$0
$250
$0
$250

$10,664
$0
$2,500
$4,242
$0
$250
$0
$250

$10,718
$0
$2,500
$4,242
$0
$250
$0
$250

$10,771
$0
$2,500
$4,242
$0
$250
$0
$250

$10,825
$0
$2,500
$4,242
$0
$250
$0
$250

$10,879
$0
$2,500
$4,242
$0
$250
$0
$250

$17,242

$17,592

$17,644

$17,696

$17,748

$17,800

$17,853

$17,906

$17,960

$18,013

$18,067

$18,121

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

$5,758
$8,258
$2,013
$1,124

$28,408
$30,908
$2,001
$7,922

$28,587
$31,087
$1,989
$7,979

$28,764
$31,264
$1,977
$8,036

$28,945
$31,445
$1,966
$8,094

$29,126
$31,626
$1,954
$8,152

$29,308
$31,808
$1,942
$8,210

$29,491
$31,991
$1,930
$8,268

$29,673
$32,173
$1,918
$8,327

$29,859
$32,359
$1,905
$8,386

$30,044
$32,544
$1,893
$8,445

$30,231
$32,731
$1,881
$8,505

Net Profit
Net Profit/Sales

$2,622
9.12%

$18,485
32.15%

$18,619
32.22%

$18,751
32.29%

$18,886
32.36%

$19,020
32.43%

$19,156
32.49%

$19,293
32.56%

$19,429
32.63%

$19,567
32.70%

$19,706
32.77%

$19,845
32.83%

Expenses
Payroll
Marketing/Promotion
Depreciation
Rent
Royalty fees
Equip rent/repair
Utilities
Admin charges
Total Operating Expenses

4%

5%
11%

Page 3

Appendix
Table: Cash Flow
Pro Forma Cash Flow
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$28,750
$28,750

$57,500
$57,500

$57,788
$57,788

$58,076
$58,076

$58,366
$58,366

$58,658
$58,658

$58,952
$58,952

$59,246
$59,246

$59,542
$59,542

$59,840
$59,840

$60,139
$60,139

$60,440
$60,440

$0
$0
$0
$0
$0
$0
$0
$28,750

$0
$0
$0
$0
$0
$0
$0
$57,500

$0
$0
$0
$0
$0
$0
$0
$57,788

$0
$0
$0
$0
$0
$0
$0
$58,076

$0
$0
$0
$0
$0
$0
$0
$58,366

$0
$0
$0
$0
$0
$0
$0
$58,658

$0
$0
$0
$0
$0
$0
$0
$58,952

$0
$0
$0
$0
$0
$0
$0
$59,246

$0
$0
$0
$0
$0
$0
$0
$59,542

$0
$0
$0
$0
$0
$0
$0
$59,840

$0
$0
$0
$0
$0
$0
$0
$60,139

$0
$0
$0
$0
$0
$0
$0
$60,440

Expenditures

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations

$10,000
$263
$10,263

$10,350
$8,538
$18,888

$10,402
$27,619
$38,021

$10,454
$26,300
$36,753

$10,506
$26,404
$36,910

$10,558
$26,506
$37,065

$10,611
$26,612
$37,224

$10,664
$26,717
$37,382

$10,718
$26,822
$37,539

$10,771
$26,929
$37,700

$10,825
$27,034
$37,860

$10,879
$27,142
$38,021

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

$0
$0
$0
$0
$0
$0
$0
$10,263

$0
$0
$0
$1,993
$0
$0
$0
$20,881

$0
$0
$0
$2,005
$0
$0
$0
$40,026

$0
$0
$0
$2,017
$0
$0
$0
$38,770

$0
$0
$0
$2,028
$0
$0
$0
$38,938

$0
$0
$0
$2,040
$0
$0
$0
$39,105

$0
$0
$0
$2,052
$0
$0
$0
$39,276

$0
$0
$0
$2,064
$0
$0
$0
$39,446

$0
$0
$0
$2,076
$0
$0
$0
$39,615

$0
$0
$0
$2,088
$0
$0
$0
$39,788

$0
$0
$0
$2,100
$0
$0
$0
$39,960

$0
$0
$0
$2,113
$0
$0
$0
$40,134

$18,487
$105,773

$36,619
$142,393

$17,762
$160,154

$19,306
$179,460

$19,428
$198,888

$19,553
$218,441

$19,676
$238,117

$19,800
$257,918

$19,927
$277,845

$20,052
$297,897

$20,179
$318,076

$20,306
$338,382

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received

Net Cash Flow

Cash Balance

0.00%

Page 4

Appendix
Table: Balance Sheet
Pro Forma Balance Sheet
Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets

$87,286
$10,000
$41,775
$139,061

$105,773
$4,250
$41,775
$151,798

$142,393
$5,750
$41,775
$189,918

$160,154
$5,779
$41,775
$207,708

$179,460
$5,808
$41,775
$227,043

$198,888
$5,837
$41,775
$246,499

$218,441
$5,866
$41,775
$266,082

$238,117
$5,896
$41,775
$285,788

$257,918
$5,925
$41,775
$305,617

$277,845
$5,955
$41,775
$325,574

$297,897
$5,984
$41,775
$345,656

$318,076
$6,014
$41,775
$365,865

$338,382
$6,044
$41,775
$386,201

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$99,732
$0
$99,732
$238,793

$99,732
$2,500
$97,232
$249,030

$99,732
$5,000
$94,732
$284,650

$99,732
$7,500
$92,232
$299,940

$99,732
$10,000
$89,732
$316,775

$99,732
$12,500
$87,232
$333,731

$99,732
$15,000
$84,732
$350,814

$99,732
$17,500
$82,232
$368,020

$99,732
$20,000
$79,732
$385,349

$99,732
$22,500
$77,232
$402,806

$99,732
$25,000
$74,732
$420,388

$99,732
$27,500
$72,232
$438,097

$99,732
$30,000
$69,732
$455,933

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0
$0
$0
$0

$7,616
$0
$0
$7,616

$26,743
$0
$0
$26,743

$25,420
$0
$0
$25,420

$25,521
$0
$0
$25,521

$25,620
$0
$0
$25,620

$25,722
$0
$0
$25,722

$25,824
$0
$0
$25,824

$25,924
$0
$0
$25,924

$26,028
$0
$0
$26,028

$26,130
$0
$0
$26,130

$26,234
$0
$0
$26,234

$26,338
$0
$0
$26,338

$345,000
$345,000

$345,000
$352,616

$343,007
$369,750

$341,002
$366,422

$338,985
$364,506

$336,957
$362,577

$334,917
$360,639

$332,865
$358,689

$330,801
$356,725

$328,725
$354,753

$326,637
$352,767

$324,537
$350,771

$322,424
$348,762

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

$160,000
($266,207)
$0
($106,207)
$238,793

$160,000
($266,207)
$2,622
($103,585)
$249,030

$160,000
($266,207)
$21,107
($85,100)
$284,650

$160,000
($266,207)
$39,725
($66,482)
$299,940

$160,000
($266,207)
$58,476
($47,731)
$316,775

$160,000
($266,207)
$77,362
($28,845)
$333,731

$160,000
($266,207)
$96,382
($9,825)
$350,814

$160,000
($266,207)
$115,538
$9,331
$368,020

$160,000
($266,207)
$134,831
$28,624
$385,349

$160,000
($266,207)
$154,260
$48,053
$402,806

$160,000
($266,207)
$173,828
$67,621
$420,388

$160,000
($266,207)
$193,533
$87,326
$438,097

$160,000
($266,207)
$213,378
$107,171
$455,933

Net Worth

($106,207)

($103,585)

($85,100)

($66,482)

($47,731)

($28,845)

($9,825)

$9,331

$28,624

$48,053

$67,621

$87,326

$107,171

Liabilities and Capital

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities

Page 5

Appendix
Table: General Assumptions
General Assumptions
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other

Tax Rate

Month 1
1
0.00%
7.00%
30.00%
0

Month 2
2
0.00%
7.00%
30.00%
0

Month 3
3
0.00%
7.00%
30.00%
0

Month 4
4
0.00%
7.00%
30.00%
0

Month 5
5
0.00%
7.00%
30.00%
0

Month 6
6
0.00%
7.00%
30.00%
0

Month 7
7
0.00%
7.00%
30.00%
0

Month 8
8
0.00%
7.00%
30.00%
0

Month 9
9
0.00%
7.00%
30.00%
0

Month 10
10
0.00%
7.00%
30.00%
0

Month 11
11
0.00%
7.00%
30.00%
0

Month 12
12
0.00%
7.00%
30.00%
0

Page 6