Financial Projections


About the cost of the foods:

Content Estimated Costs
Meal $8.00 to $15.00
Lunch $8.79
Dinner $13.74

Assumptions about the restaurants:

Restaurants Estimation
Location Downtown Ghetto
Size $5000 square feet
Tables 20
Seats 86
Parking space 40
Employee 18
  • $860,000 - $1,200,000 revenue target; Industry average for casual restaurant average of $860,000.

  • Annual 3% increase for inflation and 5% annual increase in revenues

  • Year 2 Assumes Catering Business in Place.
    • Assumes 4 parties monthly at $15 per plate and $50 persons.
      • Catering will escalate to 8 parties monthly in month 20 and then 10 parties monthly thereafter.
      • Assumes additional increase in staffing (4 persons to be hired at 6 hours at $8.00 per hour).

Start-Up Costs

Total start up costs will be $363,000, $174,000 of which will be contributed by the owners and the remainder will be secured through a proposed bank loan.


Startup costs and expense projection

Source and Use of Funds

Total start-up costs are estimated to be $363,000. The majority of the costs are associated with the restaurant equipment, inventory and furniture and furnishings for the dining room. Total costs for these items are reported to be $110,500. The costs are associated with build out and renovation of the restaurant to provide updated plumbing and creating additional space in the dining area by removing a non-supporting wall: $50,000. Additional start up expenses are in the form of working capital and contingency $182,500.

Jeff and Betty Wright will contribute $174, 000 and are requesting an additional $189,000 in the form of a bank loan. The loan is expected to be a fully amortizing 5 year term note secured by UCC filings on all furniture fixtures and equipment.


Estimated source and use of funds

Break-Even Analysis

Total fixed costs associated with the restaurant are $669,186 and represent the annual expenses. The variable cost (overhead) is estimated to be $4.51 per meal. Based on the assumption of $11.37 as the average meal price, the breakeven revenue then is $1,108,970 or 97,535 meals (units). This is further depicted in the Table Below and the Graph that follow:


Projected break-even analysis

Financial Projections

Projected Profit and Loss

The profit and loss demonstrates modest increases in revenues over the three expected years with adjustments for inflation.


Projected profit and loss

Projected Cash Flow


Projected cash flow

Projected Balance Sheet


Projected balance sheet

Business Ratios


Ratio analysis

Hourly Labor Schedule


Hourly labout projection

Weekly Sales Projections


Weekly sales projection