What is the NPV and Break Even point for both the street food market and the catering market?
Exhibit 1 - Sam's Grill Sample Menu Items $5.00Pork & Brisket Sandwich $12.00* $5.00 Marinated Chicken & Veggie Kabob Grass-fed Hamburgers Beer Brat with Sauerkraut Mac & Cheese, Cole Slaw, Beans $10.00Grilled Chicken Legs $8.00* Loaded French Fries $3.00*Gatorade $6.00* $2.00 Bottled Water $1.00 *Price varied based upon the vendor fee charged by event management. Note: Mike targeted a minimum avg. ticket order of $10.00 and a 25%-35% food cost. Source: Mike Barney - Owner, Sam's Grill (July 2017)- Sample Street Food Menu BBQ Lunch Garden Party for 30 people; Buffet Service Sample Catering Menu Unit Price Line Total Quantity 1 tray Appetizer - Garden Fresh Bruschetta $120/tray $120.00 30 ent 3.50/cnt $105.00 8 lbs 22.99/lb $183.92 8 lbs 22.99/lb $183.92 Salad - Mixed Field Greens Entre - Slow Smoked Brisket Entre-Slow Smoked Turkey Side - Buttermilk Cornbread Side - Mama's Tater Salad Side-Cowboy Beans BBQ Sauce 3 trays 4.99/dzn $37.50 7.5 lbs 9.99/lb $74.93 7.5 lbs 7.50/lb $56.25 0.75 gal 20.00/gal $15.00 Beverage - Unsweetened Tea 1.5 gal 5.50/gal $8.25 1.5 gal 10.00/gal $15.00 Beverage - Fresh Squeezed Lemonade Services - On-site Buffet 1 hour 125.00/hr $125.00 $924.77 Sub-Total Tax at 10.95% Grand Total $101.26 $1,026.33 Source: Mike Barney - Owner, Sam's Grill (April 2017) Exhibit 2-Profit and Loss Statement (2014-2016) Ordinary Income Food Sales Total Income Cost of Goods Sold Food Purchases Direct Labor Payroll (Cody paid $3,613 (2015) and $6,470 (2016)) Business Licenses/ Permits/Insurance Total COGS Gross Profit Operating Expense (Fixed) Advertising & Promotion Automobile Expenses Bank Service Charges Computer and Internet Expenses Office Supplies Professional Fees Propane Reimbursement Rent Expense Repairs and Maintenance Restaurant Supplies Supplies Uniforms Utilities Total Operating Expense Net Ordinary Income Other Income/Expense Ask My Accountant Total Other Expense Net Operating Income Income/Expense ($ US) - Accrual Basis January through December 2014 2015 2016 Comments 86,921 86,9212014: 8 special public events & 32,401 Goal: 30% of Food Sales thru purchasing efficiencies and sourcing co-operative 10,6752015: Cody (450 hrs) & sub-contract labor 2016: Cody (650 hrs) & sub- contract labor 4,005 Per event basis 47,081 39,840 2,131 4,700 Fuel and maintenance 210 1,000 53 2,300 Client meetings, Legal, Acct, R&D 555 109 1,500 Leased kitchen space 92 549 1,239 73 255 14,6772014 Operating Expense not temized 25,074 1,604 1,604 23,470 Sam paid himself a salary from Net Income after reinvesting back in business (2016) 18,000 18,000 24,568 24,568 12,533 4,937 1,434 18,904 5,664 1,105 369 287 228 283 2,043 286 1,412 1,454 382 15,000 7,849 (2,185) 33 (3,000) (2,218) 6,000 12,000 seasonal weekend street service; 2015: 15 special public events; 2016: 40 special public events Exhibit 3 - Estimated Investment Levels and Future Case Flow Projections (rounded) Options Estimated Estimated Net Cash Flow Year 1 (2017) Estimated Net Cash Flow Year 2 Investment (2018) $9,000 $30,500 $40,500 (A) Expand Street Food Add $25,000 $51,450 $75,950 (B) Catering and Maintain Street Food Mike's research assumed/estimated: Total revenues for 2017 - option (A): $122,000 Total revenues for 2017 - option (B): $147,000 Discount Rate for (A) 5% and for (B) 15% 20%-25% (A) & 40%-45% (B) profit before taxes 20% YOY "normal" growth rate for street food revenue (2016-2019) +2% YOY inflation rate; +3% YOY contingency expense $3,500 revenue per catering event (2017) 5% YOY higher operating expenses for (B) vs. (A) 2017 COGS 50% (A) and 52% (B) of Total Income bef. inflation/contingency "Est. Investment" primarily kitchen equipment YOY: Year over Year Source: Mike Barney- Owner, Sam's Grill (July 2017) Estimated Net Cash Flow Year 3 (2019) $53,000 $117,450 Exhibit 1 - Sam's Grill Sample Menu Items $5.00Pork & Brisket Sandwich $12.00* $5.00 Marinated Chicken & Veggie Kabob Grass-fed Hamburgers Beer Brat with Sauerkraut Mac & Cheese, Cole Slaw, Beans $10.00Grilled Chicken Legs $8.00* Loaded French Fries $3.00*Gatorade $6.00* $2.00 Bottled Water $1.00 *Price varied based upon the vendor fee charged by event management. Note: Mike targeted a minimum avg. ticket order of $10.00 and a 25%-35% food cost. Source: Mike Barney - Owner, Sam's Grill (July 2017)- Sample Street Food Menu BBQ Lunch Garden Party for 30 people; Buffet Service Sample Catering Menu Unit Price Line Total Quantity 1 tray Appetizer - Garden Fresh Bruschetta $120/tray $120.00 30 ent 3.50/cnt $105.00 8 lbs 22.99/lb $183.92 8 lbs 22.99/lb $183.92 Salad - Mixed Field Greens Entre - Slow Smoked Brisket Entre-Slow Smoked Turkey Side - Buttermilk Cornbread Side - Mama's Tater Salad Side-Cowboy Beans BBQ Sauce 3 trays 4.99/dzn $37.50 7.5 lbs 9.99/lb $74.93 7.5 lbs 7.50/lb $56.25 0.75 gal 20.00/gal $15.00 Beverage - Unsweetened Tea 1.5 gal 5.50/gal $8.25 1.5 gal 10.00/gal $15.00 Beverage - Fresh Squeezed Lemonade Services - On-site Buffet 1 hour 125.00/hr $125.00 $924.77 Sub-Total Tax at 10.95% Grand Total $101.26 $1,026.33 Source: Mike Barney - Owner, Sam's Grill (April 2017) Exhibit 2-Profit and Loss Statement (2014-2016) Ordinary Income Food Sales Total Income Cost of Goods Sold Food Purchases Direct Labor Payroll (Cody paid $3,613 (2015) and $6,470 (2016)) Business Licenses/ Permits/Insurance Total COGS Gross Profit Operating Expense (Fixed) Advertising & Promotion Automobile Expenses Bank Service Charges Computer and Internet Expenses Office Supplies Professional Fees Propane Reimbursement Rent Expense Repairs and Maintenance Restaurant Supplies Supplies Uniforms Utilities Total Operating Expense Net Ordinary Income Other Income/Expense Ask My Accountant Total Other Expense Net Operating Income Income/Expense ($ US) - Accrual Basis January through December 2014 2015 2016 Comments 86,921 86,9212014: 8 special public events & 32,401 Goal: 30% of Food Sales thru purchasing efficiencies and sourcing co-operative 10,6752015: Cody (450 hrs) & sub-contract labor 2016: Cody (650 hrs) & sub- contract labor 4,005 Per event basis 47,081 39,840 2,131 4,700 Fuel and maintenance 210 1,000 53 2,300 Client meetings, Legal, Acct, R&D 555 109 1,500 Leased kitchen space 92 549 1,239 73 255 14,6772014 Operating Expense not temized 25,074 1,604 1,604 23,470 Sam paid himself a salary from Net Income after reinvesting back in business (2016) 18,000 18,000 24,568 24,568 12,533 4,937 1,434 18,904 5,664 1,105 369 287 228 283 2,043 286 1,412 1,454 382 15,000 7,849 (2,185) 33 (3,000) (2,218) 6,000 12,000 seasonal weekend street service; 2015: 15 special public events; 2016: 40 special public events Exhibit 3 - Estimated Investment Levels and Future Case Flow Projections (rounded) Options Estimated Estimated Net Cash Flow Year 1 (2017) Estimated Net Cash Flow Year 2 Investment (2018) $9,000 $30,500 $40,500 (A) Expand Street Food Add $25,000 $51,450 $75,950 (B) Catering and Maintain Street Food Mike's research assumed/estimated: Total revenues for 2017 - option (A): $122,000 Total revenues for 2017 - option (B): $147,000 Discount Rate for (A) 5% and for (B) 15% 20%-25% (A) & 40%-45% (B) profit before taxes 20% YOY "normal" growth rate for street food revenue (2016-2019) +2% YOY inflation rate; +3% YOY contingency expense $3,500 revenue per catering event (2017) 5% YOY higher operating expenses for (B) vs. (A) 2017 COGS 50% (A) and 52% (B) of Total Income bef. inflation/contingency "Est. Investment" primarily kitchen equipment YOY: Year over Year Source: Mike Barney- Owner, Sam's Grill (July 2017) Estimated Net Cash Flow Year 3 (2019) $53,000 $117,450
