Income Statement Budget

Instructions: You own a restaurant that had the following results in the past year. The economy is growing at a rate of $5\%.$ The local Colleges and hospitals are growing. We are expecting a long dry summer next year. Please Name your restaurant, state some brief outlines on its concept. You can assume the one in class. Then fill out the grey areas on the budget. On the grey areas of the budget, you need to fill out what you think the budget would be and what your numbers and percent totals would be in relation to that variable.

Name of your Restaurant:

Concept

MGMT Goals $\%$

Sales Dollars Percent Dollars Why are you budgeting this? What actions will you take $($i$.$e$.$ Do a food giveaway promo, cut heat, hire a band.$)$

Food $1,013,60072\mathrm{.}4\%71\mathrm{.}0\%$ Keep our strong focus on food but grow beverage so it outpaces revenue growth on beverages.

Beverage $386,40027\mathrm{.}6\%29\mathrm{.}0\%$ Need to grow beverages so we can increase our gross margin.

Total Sales $1,400,000100\mathrm{.}0\%$ Grow $5\%1,470,000$

Cost of Sales

Food Cost $331,44732\mathrm{.}7\%32\mathrm{.}0\%$

Beverage Cost $85,39422\mathrm{.}1\%20\mathrm{.}0\%$

Cost of Goods Sold $416,84129\mathrm{.}8\%$

Gross Profit $983,15970\mathrm{.}2\%$

Labour

Salaries & Wages $403,20028\mathrm{.}8\%$

Employee Benefits $96,6006\mathrm{.}9\%$

Total Labour Costs $499,80035\mathrm{.}7\%$

Prime Cost $916,64165\mathrm{.}5\%$

Controllable Expenses

Direct Operating Expenses $70,0005\mathrm{.}0\%$

Music & Entertainment $11,2000\mathrm{.}8\%$

Marketing $32,2002\mathrm{.}3\%$

Utilities $63,0004\mathrm{.}5\%$

General & Administrative $37,8002\mathrm{.}7\%$

Repairs & Maintenance $7,0000\mathrm{.}5\%$

Total Controllable Expenses $221,20015\mathrm{.}8\%$

Income Before Fixed Costs $262,15918\mathrm{.}7\%$

Fixed Costs

Occupancy Costs $140,00010\mathrm{.}0\%$

Interest $65,0004\mathrm{.}6\%$

Depreciation $21,0001\mathrm{.}5\%$

Total Fixed Costs $226,00016\mathrm{.}1\%$

Net Income $36,1592\mathrm{.}6\%$