Unit 10 focuses on using financial methods and
statistical data to inform alternative selection within business decisions.
For this Assignment you will create a
PowerPoint® presentation based on your “purchase” of a restaurant. The
following information is to be used to create this presentation.
Your presentation is required to have at least one reference from a reliable source. This
means that you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers
and that only references from reliable sources will earn points. All resources
should be cited both as an in-text citation as well as being listed on a
reference slide in APA format.
You have always wanted to own a restaurant and
have now decided to go into business, purchase a building, and open an Italian
Bistro. The items listed below provide information regarding the purchases you
will need to make to start your business.
1) The building and the land it sits on will cost
$250,000 and you have 20% to put down on the property. Annual taxes are $6,000
and fire and liability insurance is $3,600.
2) You have $150,000 of additional funds to
allocate for refurbishing the grounds, building structure, interior design, and
kitchen. 10% of the savings will be allocated to the grounds, 20% to the
building’s structure, 20% to update the interior design, and 50% for kitchen
installation and fire suppression systems.
3) Tables are $200 each for 2 tops, $300 each for 4
tops, and $500 each for 6 tops. You plan to purchase eight (8) 2-top tables, six
(6) 4-top tables, and ten (10) 6-top tables. Chairs cost $50 each. You are
planning on being able to seat 100 people in the restaurant at a time and need
10 extra chairs. Silverware, tablecloths and napkins cost a total of $6,000,
serving utensils cost a total of $3,000, and glassware cost a total of $5,000.
4) Place/plate settings cost $35 each. You need to
purchase three times the number of planned seats for turn-around and breakage.
(Remember you are planning for 100 people in your restaurant.)
5) Servicing carts, cooking equipment, prep tables,
storage containers, and other supplies will cost a total of $16,000.
6) Research suggests that the average receipt total
per person is $12.80 and the average cost per meal is $6.86 for the Italian
restaurants in your area. The research also suggests that tables are turned
over for new customers between 13 and 21 times a day in your area, and that
restaurants have between 40% and 60% occupancy fill rate each day.
You mission is to
create a financial business plan explaining the initial outlay of funds this
business venture will cost.
PowerPoint Presentation for this business venture.
The following is
an outline of how your slides should be presented.
Slide 1: This is your title
page. Include your name, project title, the course and section number and the
assignment due date.
Slide 2: This slide is
your introduction slide. This slide should summarize your new business venture,
describe your restaurant concept (i.e. casual dining, bight atmosphere, etc.)
and provide other helpful information. For example, restaurant name, what types
of appetizers, salads, soups, entrees, beer and wine availability, and desserts
you might serve, and hours of operation. Highlight what makes you restaurant
Slide 3: This is your
building and real estate summary slide. This slide should include a small
picture or building plan drawing of the building, and summarize the purchase
price, down payment, and amount financed. The picture of the building can be
obtained from a real estate website, or from a building plan drawing available
on the Internet (be sure to cite this). This slide should also list the annual
tax and insurance amounts. It should also include the monthly mortgage payment
including principal, interest, taxes and insurance (PITI). The slide notes (section below the slide in
PowerPoint) should contain the steps you took to calculate the monthly
Slide 4 to 6: These
slides should include your start up expenses. On these slides you would list
the cost of purchasing all of the items listed in items 3, 4, 5 above (tables,
place setting, kitchen equipment, etc.). Here you can have fun and include
pictures of items, or include graphs of the cost. Be sure to list the total
start up expense required to open the restaurant somewhere.
Slide 7: This is your
revenue slide. Create revenues and food costs from your first 6 days of serving
food. Present the average receipt total per person, the average cost per meal,
number of times a table is sat or turned over, and fill rate or occupancy rate
to estimate your restaurants revenues. This is another place where a graph
could help illustrate your revenue potential.
Slide 8: Conclude your
presentation with the “wrap up” of the concept and any final thoughts you might
want to include.
List any resources you have used for this project. Be sure to include at least
from a reliable source. Because many of
the concepts here involve reading from the textbook, remember to include a reference
for your textbook, as well. Make sure your citations are presented in APA
work carefully. Use Standard American English, and make sure
your presentation is grammatically correct and does not contain spelling
errors. Strive to display exceptional content, organization, style and
mechanics. For your pictures or building plan drawings, collectively they
should cover no more than a quarter of the page. Use 12 - 14 point font size,
with normal margins. Use bullet points if appropriate.