Discussion Post: Real World Thoughts Restaurant Entrepreneurs Assume you are consulting with a group of entrepreneurs who are starting a restaurant. They hisve $1,000,000 to irwest. The landilord is proposing $4,000 monthly rent on a five-year lease plus 775 of gross sales over $25.000. The building is 3.000 square feet and your clients figure that approximately, 60 percent of the square tootage will be the dining area and 40 percent will be for everything else fititchen, common area, bathrooms, ete.). A general restaurant averages around 15 square feet per person in its dining area. The owners want to open for breakfast and lamch, from 7AM to 2PM, with an average table tumover rate of 1 hour. During an average shift. the restaurant will need at least two cooks, a dishwather, five waitstatt/teussers, and a floor manager. Your clients want to know if it is possible to make money at this venture be fore they signt the ieace. Without regard to the initial investment, what kinds of information do you need to gather to comidete your analysis? For iristance: What ate some of the fued costs of such a venture? What ase examples of variable costs? Assume you are consulting with a group of entrepreneurs who are starting a restaurant. They have $1.000.000 to inved. The tandand is propesing $4.000 monthly rent on a five. year lease plus 7% of gross sales over $25,000. The bultifing 63,000 squre feet and your tienta fagure thut approximately 60 percent of the square footage will be the dining area and 40 percent will be for eventhing elue laitchen. common ares buthroomt. etc.). A general restaurant averages around 15 square feet per person in its dining area The owners want to open for braatat and iunch, from 7 M. to 2PM, with an average table turnover rate of 1 hour, During an average shitt, the restacant will need at least two cooks a distiwanher, fine Waitstaff/bussers. and a floor manager. Your clients want to know if it is possible to make money at this venture before they sher the lewse. Without regard to the initial investment, what kinds of information do you need to gather to complete your analpis? For instance What are sorne of the foxd costs of such a venture? What are examples of variable costs? Are there any mixed costs, or costs that are hard to categorice? What are they and how would whi accourt for them