Budget Project

Name:

Caf Uno P & L and Budget

Last Year % Budget %

SALES

Food $2,691,881 84.38% 80.0%

Beverage 498,119 15.62% 20.0%

Total Sales $3,190,000 100.00% 100.0%

COST OF SALES

Food $855,104 31.77% 32.0%

Beverages 104,005 20.88% 20.0%

Total Cost of Sales $959,109 30.07%

LABOR

Management $192,330 6.03%

Staff 576,989 18.09%

Employee Benefits 118,996 3.73%

Total Labor $888,315 27.85% 26.0%

PRIME COST $1,847,424 57.91%

OTHER CONTROLLABLE EXPENSES

Direct Operating Expenses $146,669 4.60% $145,357

Music & Entertainment 2,767 0.09%

Marketing 52,579 1.65%

Utilities 88,555 2.78% 97,836

Administrative & General Expenses 80,252 2.52% 78,269

Repairs & Maintenance 41,510 1.30%

Total Other Controllable Expenses $412,332 12.93%

CONTROLLABLE INCOME $930,244 29.16%

NON-CONTROLLABLE EXPENSES

Occupancy Costs $144,000 4.51% $132,000

Equipment Leases 0 0.00% 0

Depreciation & Amortization 49,812 1.56% 61,498

Total Non-Controllable Expenses 193,812 6.08%

RESTAURANT OPERATING INCOME 736,432

Interest Expense 104,100 3.26% 93,378

INCOME BEFORE INCOME TAXES 632,332

Income Taxes 235,146

NET INCOME 397,186

Based on last year's PL and the following assumptions, please make a budget for next year.You only need to fill in figures in the areas listed below:

Total Sales: Your total sales last year reflect 145,000 guests spending a check average of $22.00 ($3,190,000). Please budget next year's total sales assuming you will increase the check average by 5% but that may scare away 1.5% of your guests.

Sales Mix: As reflected in the budget area you want to increase bar sales to 20% of your total sales You have a great bar but most sales come from your already-busy dining room. When budeting, assume you will use tactics discussed below to increase bar sales to 20% of your overall sales which will move food sales to 80%

Cost of Goods: Once you have figured out your food sales and beverage sales, please calculate the Cost of Goods for each category using the numbers in the budget (32% food cost and 20% beverage cost). Then calculate the total cost of goods against total revenus in the budgeted area.

Labor Cost: You are hoping to decrease your total labor cost to 26%. Once you have calculated your budgeted total sales figure from the first step of this assignment, calculate your budgeted dollar amount for total labor. No need to break it down by labor category, just include total dollars budgeted for labor next year.

Last Step: In order to increase the bar sales to make them 20 of overall sales you will need to budget some money for Repairs & Maintenance, Maketing or maybe for Musicc and Entertainment. Decide how you are are going to increase bar sales. Renovations to make the bar more appealing (Repair & Maintenance), add live music, a DJ, televisions for sporting event viewing or even trivia nights with prizes (Music & Entertainment). No matter what you choose to do, you need to get the word out to the public that something exciting is happening (Marketing). So let me know what you're planning to do to build bar business and have it reflect in the budget.