This document outlines the projected budget for a restaurant over 10 years. It includes projections for sales, cost of goods sold, labor costs, expenses, and opening costs. Total sales are projected to increase by 5% each year. Food and alcohol sales are projected at 93% and 7% of total sales respectively. Cost of goods sold for food is 30% and alcohol is 25% of their respective sales. Labor costs include salaries at 10% of sales, hourly wages at 17%, benefits at 2%, and payroll taxes at 3%. Expenses such as rent, utilities and supplies are also accounted for.

1. Budget
SALES Sales Mix (%) SALES
Food/NA Bev 93.00% Food Sales 930,000$ 93.00% 976,500$ 93.00% 1,025,325$ 93.00% 1,076,591$ 93.00% 1,130,421$ 93.00% 1,186,942$ 93.00% 1,246,289$ 93.00% 1,308,603$ 93.00% 1,374,034$ 93.00% 1,442,735$ 93.00%
Beer/Wine 7.00% Beer/Wine Sales 70,000 7.00% 73,500 7.00% 77,175 7.00% 81,034 7.00% 85,085 7.00% 89,340 7.00% 93,807 7.00% 98,497 7.00% 103,422 7.00% 108,593 7.00%
TOTAL SALES 1,000,000$ 100.00% 1,050,000$ 100.00% 1,102,500$ 100.00% 1,157,625$ 100.00% 1,215,506$ 100.00% 1,276,282$ ###### 1,340,096$ 100.00% 1,407,100$ 100.00% 1,477,455$ 100.00% 1,551,328$ 100.00%
COST OF SALES Target Cost (%) SALES RELATED PRIME COSTS
Food 30.00% Food Cost of Goods 279,000$ 30.00% 292,950$ 30.00% 307,598$ 30.00% 322,977$ 30.00% 339,126$ 30.00% 356,083$ 30.00% 373,887$ 30.00% 392,581$ 30.00% 412,210$ 30.00% 432,821$ 30.00%
Beer/Wine 25.00% Beer/Wine Cost of Goods 17,500 25.00% 18,375 25.00% 19,294 25.00% 20,258 25.00% 21,271 25.00% 22,335 25.00% 23,452 25.00% 24,624 25.00% 25,855 25.00% 27,148 25.00%
TOTAL FOOD, BBER/WINE, LIQOUR COST 296,500$ 29.65% 311,325$ 29.65% 326,891$ 29.65% 343,236$ 29.65% 360,398$ 29.65% 378,417$ 29.65% 397,338$ 29.65% 417,205$ 29.65% 438,066$ 29.65% 459,969$ 29.65%
PAYROLL Cost (%) LABOR RELATED PRIME COSTS
SALARIES 10% Salaries 100,000$ 10.00% 105,000$ 10.00% 110,250$ 10.00% 115,763$ 10.00% 121,551$ 10.00% 127,628$ 10.00% 134,010$ 10.00% 140,710$ 10.00% 147,746$ 10.00% 155,133$ 10.00%
HOURLY WAGES 17% Wages (FOH) 170,000 17.00% 178,500 17.00% 187,425 17.00% 196,796 17.00% 206,636 17.00% 216,968 17.00% 227,816 17.00% 239,207 17.00% 251,167 17.00% 263,726 17.00%
BENEFITS 2% Benefits 20,000 2.00% 21,000 2.00% 22,050 2.00% 23,153 2.00% 24,310 2.00% 25,526 2.00% 26,802 2.00% 28,142 2.00% 29,549 2.00% 31,027 2.00%
PAYROLL TAX 3% Payroll Tax 30,000 3.00% 31,500 3.00% 33,075 3.00% 34,729 3.00% 36,465 3.00% 38,288 3.00% 40,203 3.00% 42,213 3.00% 44,324 3.00% 46,540 3.00%
TOTAL LABOR RELATED PRIME COST 320,000$ 32.00% 336,000$ 32.00% 352,800$ 32.00% 370,440$ 32.00% 388,962$ 32.00% 408,410$ 32.00% 428,831$ 32.00% 450,272$ 32.00% 472,786$ 32.00% 496,425$ 32.00%
Credit Cards % of Sales Rate
Credit Card Sales 70% 2.90% PRIME COST 616,500$ 61.65% 647,325$ 61.65% 679,691$ 61.65% 713,676$ 61.65% 749,360$ 61.65% 786,828$ 61.65% 826,169$ 61.65% 867,477$ 61.65% 910,851$ 61.65% 956,394$ 61.65%
EXPENSES
Indirect Expense Budget Rent Total Indirect Expense 91,500$ 9.15% 93,522$ 8.91% 95,604$ 8.67% 97,749$ 8.44% 99,958$ 8.22% 102,233$ 8.01% 104,576$ 7.80% 106,990$ 7.60% 109,477$ 7.41% 112,037$ 7.22%
RENT (3% Annual Increase) 67,386.00$ Bank Charges (Merchant Fees) 20,300 2.03% 21,315 2.03% 22,381 2.03% 23,500 2.03% 24,675 2.03% 25,909 2.03% 27,204 2.03% 28,564 2.03% 29,992 2.03% 31,492 2.03%
CAM CHARGES 16,003.00 Annual Increase Total Rent Utilities 26,400 2.64% 26,400 2.51% 26,400 2.39% 26,400 2.28% 26,400 2.17% 26,400 2.07% 26,400 1.97% 26,400 1.88% 26,400 1.79% 26,400 1.70%
LICENSES AND PERMITS 5,027.00 YR1 67,386.00$ Phone 4,320 0.43% 4,320 0.41% 4,320 0.39% 4,320 0.37% 4,320 0.36% 4,320 0.34% 4,320 0.32% 4,320 0.31% 4,320 0.29% 4,320 0.28%
PERSONAL PROPERTY TAX 3,084.00 YR2 69,407.58 Operating Supplies 60,000 6.00% 60,000 5.71% 60,000 5.44% 60,000 5.18% 60,000 4.94% 60,000 4.70% 60,000 4.48% 60,000 4.26% 60,000 4.06% 60,000 3.87%
AMORTIZATION 15,622.00 YR3 71,489.81 Liability Insurance 1,500 0.15% 1,500 0.14% 1,500 0.14% 1,500 0.13% 1,500 0.12% 1,500 0.12% 1,500 0.11% 1,500 0.11% 1,500 0.10% 1,500 0.10%
DEPRECIATION EXP 48,500.00 YR4 73,634.50 Guest Comps 3,600 0.36% 3,600 0.34% 3,600 0.33% 3,600 0.31% 3,600 0.30% 3,600 0.28% 3,600 0.27% 3,600 0.26% 3,600 0.24% 3,600 0.23%
YR5 75,843.54 Delivery Fee Expense - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
YR6 78,118.84 Marketing 18,000 1.80% 18,000 1.71% 18,000 1.63% 18,000 1.55% 18,000 1.48% 18,000 1.41% 18,000 1.34% 18,000 1.28% 18,000 1.22% 18,000 1.16%
Monthly Expense Budget $ per month YR7 80,462.41 Repairs & Maintenance 42,000 4.20% 42,000 4.00% 42,000 3.81% 42,000 3.63% 42,000 3.46% 42,000 3.29% 42,000 3.13% 42,000 2.98% 42,000 2.84% 42,000 2.71%
UTILITIES (Electricity, Gas, Water) 2,200$ YR8 82,876.28 R&M Kitchen & Bar Equip 21,000 2.10% 21,000 2.00% 21,000 1.90% 21,000 1.81% 21,000 1.73% 21,000 1.65% 21,000 1.57% 21,000 1.49% 21,000 1.42% 21,000 1.35%
PHONE/INTERNET 360 YR9 85,362.57 Laundry & Uniforms 6,000 0.60% 6,000 0.57% 6,000 0.54% 6,000 0.52% 6,000 0.49% 6,000 0.47% 6,000 0.45% 6,000 0.43% 6,000 0.41% 6,000 0.39%
OPERATING SUPPLIES 5,000 YR10 87,923.45 Legal & Accounting 18,000 1.80% 18,000 1.71% 18,000 1.63% 18,000 1.55% 18,000 1.48% 18,000 1.41% 18,000 1.34% 18,000 1.28% 18,000 1.22% 18,000 1.16%
LIABILITY INSURANCE 125 Office Supplies & Menus 3,300 0.33% 3,300 0.31% 3,300 0.30% 3,300 0.29% 3,300 0.27% 3,300 0.26% 3,300 0.25% 3,300 0.23% 3,300 0.22% 3,300 0.21%
GUEST COMPS 300 Bank Fees 1,200 0.12% 1,200 0.11% 1,200 0.11% 1,200 0.10% 1,200 0.10% 1,200 0.09% 1,200 0.09% 1,200 0.09% 1,200 0.08% 1,200 0.08%
DELIVERY FEE EXPENSE - Postage 300 0.03% 300 0.03% 300 0.03% 300 0.03% 300 0.02% 300 0.02% 300 0.02% 300 0.02% 300 0.02% 300 0.02%
MARKETING 1,500 Travel 300 0.03% 300 0.03% 300 0.03% 300 0.03% 300 0.02% 300 0.02% 300 0.02% 300 0.02% 300 0.02% 300 0.02%
REPAIRS AND MAINTENANCE 3,500 Employee Awards 600 0.06% 600 0.06% 600 0.05% 600 0.05% 600 0.05% 600 0.05% 600 0.04% 600 0.04% 600 0.04% 600 0.04%
R&M KITCHEN AND BAR EQUIP 1,750 Fines & Penalties 1,800 0.18% 1,800 0.17% 1,800 0.16% 1,800 0.16% 1,800 0.15% 1,800 0.14% 1,800 0.13% 1,800 0.13% 1,800 0.12% 1,800 0.12%
LAUNDRY AND UNIFORMS 500 Dues & Subscriptions 3,900 0.39% 3,900 0.37% 3,900 0.35% 3,900 0.34% 3,900 0.32% 3,900 0.31% 3,900 0.29% 3,900 0.28% 3,900 0.26% 3,900 0.25%
LEGAL AND ACCOUNTING 1,500 TOTAL MISC COSTS 324,020$ 32.40% 327,057$ 31.15% 330,205$ 29.95% 333,468$ 28.81% 336,852$ 27.71% 340,361$ 26.67% 344,000$ 25.67% 347,774$ 24.72% 351,689$ 23.80% 355,749$ 22.93%
OFFICE SUPPLIES AND MENUS 275
BANK FEES 100 OPENING COSTS
POSTAGE 25 Pre Opening Training Budget 5,000$ 0.50%
TRAVEL 25 Soft Opening Budget 3,000 0.30%
EMPLOYEE AWARDS 50 TOTAL MISC COSTS 8,000$ 0.80%
FINE AND PENALTIES 150
DUES AND SUBSCRIPTIONS 325
TOTAL SALES 1,000,000$ 100.00% 1,050,000$ 100.00% 1,102,500$ 100.00% 1,157,625$ 100.00% 1,215,506$ 100.00% 1,276,282$ 100.00% 1,340,096$ 100.00% 1,407,100$ 100.00% 1,477,455$ 100.00% 1,551,328$ 100.00%
Opening Expenses $
PRE OPENING TRAINING BUDGET 5,000$ PRIME COSTS
SOFT OPENING BUDGET 3,000 Sales Related 296,500$ 29.65% 311,325$ 29.65% 326,891$ 29.65% 343,236$ 29.65% 360,398$ 29.65% 378,417$ 29.65% 397,338$ 29.65% 417,205$ 29.65% 438,066$ 29.65% 459,969$ 29.65%
Labor Related 320,000 32.00% 336,000 32.00% 352,800 32.00% 370,440 32.00% 388,962 32.00% 408,410 32.00% 428,831 32.00% 450,272 32.00% 472,786 32.00% 496,425 32.00%
TOTAL PRIME COSTS 616,500$ 61.65% 647,325$ 61.65% 679,691$ 61.65% 713,676$ 61.65% 749,360$ 61.65% 786,828$ 61.65% 826,169$ 61.65% 867,477$ 61.65% 910,851$ 61.65% 956,394$ 61.65%
GROSS PROFIT 383,500$ 38.35% 402,675$ 38.35% 422,809$ 38.35% 443,949$ 38.35% 466,147$ 38.35% 489,454$ 38.35% 513,927$ 38.35% 539,623$ 38.35% 566,604$ 38.35% 594,934$ 38.35%
TOTAL EXPENSES 332,020$ 33.20% 327,057$ 31.15% 330,205$ 29.95% 333,468$ 28.81% 336,852$ 27.71% 340,361$ 26.67% 344,000$ 25.67% 347,774$ 24.72% 351,689$ 23.80% 355,749$ 22.93%
EBITDA 51,480$ 5.15% 75,618$ 7.20% 92,604$ 8.40% 110,481$ 9.54% 129,294$ 10.64% 149,093$ 11.68% 169,926$ 12.68% 191,849$ 13.63% 214,915$ 14.55% 239,185$ 15.42%
$1,000,000 $1,050,000 $1,102,500 $1,551,328
YR 1 YR 2 YR 3 YR 4
$1,407,100 $1,477,455$1,157,625 $1,215,506 $1,276,282 $1,340,096
YR 8YR 5Input Revenue & Cost Variables YR 9 YR 10YR 7YR 6

2. BIG BUNS
Site Sq. Ft. 2,042
Build Out & Equipment (per sq. ft.) 425$ 867,850$
Tenant Improvement Allowance 60$ 122,520$
Loan Amount 265,000$
Loan Term (years) 10
Loan Interest Rate 7.5%
Sales 1,000,000$
Sales growth % 5.0%
Inflation 2%
Tax Rate 25%
Cost of Capital 6%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0 1 2 3 4 5 6 7 8 9 10
1,000,000$ 1,050,000$ 1,102,500$ 1,157,625$ 1,215,506$ 1,276,282$ 1,340,096$ 1,407,100$ 1,477,455$ 1,551,328$
383,500 402,675 422,809 443,949 466,147 489,454 513,927 539,623 566,604 594,934
EBITDA 51,480 75,618 92,604 110,481 129,294 149,093 169,926 191,849 214,915 239,185
(12,642) 11,496 28,482 46,359 65,172 84,971 105,804 127,727 150,793 175,063
19,248 17,811.50 16,263.84 14,596.04 12,798.75 10,861.94 8,774.77 6,525.57 4,101.76 1,489.78
(31,890) (6,315) 12,218 31,763 52,374 74,109 97,030 121,201 146,691 173,573
(3,161) 2,874 7,121 11,590 16,293 21,243 26,451 31,932 37,698 43,766
(28,729) (9,189) 5,098 20,173 36,080 52,866 70,578 89,269 108,993 129,807
867,850
(867,850) 35,393 54,933 69,220 84,295 100,202 116,988 134,700 153,391 173,115 193,929
NPV (106,755)$
IRR 3.86% No
Profitability Index 0.88
*Assumed straight line depreciation
*Assuming blended principal and interest payments
EBT
Net Income
Capital Expenditure
Free Cash Flow
Year
Expected Revenue
Gross Profit
EBIT
Taxes
Loan Interest