Develop an operating budget based on the following information.

You are about to open your first restaurant. You restaurant will have 125 seats and will be open 5 nights a week. Projected covers per week will average 1200 and you are open 50 weeks out of the year. Your guest check average will be $30 per person. The sales mix you have planned for is 70% food and 30% beverage. You have budgeted food cost to be 32% and beverage costs to be 14%. Labor Cost should come in at 20% of Total Sales with 74% Variable, 23% Fixed, and 3% Benefits. Benefits are a Fixed Cost.

Other Controllable and Non-Controllable Expenses:

Fixed Costs: Marketing 1% of total sales, Maintenance $18,000/year, Administrative $9,000/year and Rent $9,000/month.

Variable Costs: Utilities 12% of total sales, Paper and Chemical 3% of total sales. You did not take out a loan to start the business, so the Interest Expense is $0.

What is your average daily seat turnover for the restaurant during the week?

Develop a P&L statement (operating budget) for your first year of business.

What are your VC% and CM%

Determine the break-even point in sales assuming no profit. Also determine the break-even in units/customers for the year.

Develop a budget for year 2 based on a 10% increase in food sales, an 8% increase in beverage sales. Labor costs will increase to 26% of total newly projected sales with a continued mix of 74% Variable, 23% Fixed, and 3% Benefits. Paper and Chemical will increase to 5% of total sales. Rent will remain at $9,000 per month. All other costs will remain at the same percentage rate from year 1. The guest check average will remain the same.

What are the new forecasted VC and CM %?

Determine the break-even point in sales for 1 week based on year 2 budget assuming no profit.