BUSN 278 help Making Decisions/uophelp.com BUSN 278 help Making Decisions/uophelp.com | Page 5

Soda fountain bar 2 pizza ovens Salad and pizza / dessert bar Approximately 100 square foot commercial refrigerator 2 cash registers 6 video game vending machines Management office with desk and lower-priced laptop computer Staff lunchroom equipment such as microwave , sink , cupboards and refrigerator 20 four-seater tables with chairs Busing cart for transporting dirty dishes from the dining area to the dishwashing area 140 sets of dishes , including cutlery and drinking cups Commercial dishwasher Miscellaneous cooking and food handling equipment like trays , lifters , spoons , pots etcetera The cost of an average of 7 employees on the payroll . All operating costs , such as advertising , rent for a 3,500 square foot facility with male and female washrooms ( already installed ), utilities , maintenance , and annual depreciation
* If you have questions about startup requirements , or think other startup costs necessary for the business are missing , then make an assumption and state it in the relevant section of the report .
Given Financial Assumptions *
The owner will be granted a loan for the initial startup , repayable over 10 years at current interest rates for small business loans . The owner will use personal funds to operate the business until it generates enough cash flow to fund itself . Essentially , all sales are made by credit card . All credit card sales are paid to the restaurant daily by the credit card company . 2.5 % of sales is paid to the credit card company in fees . Food suppliers give 30 days of trade credit . Inventories are expected to be approximately 10 % of the following month ’ s sales . The average meal costs $ 4.00 in materials and labor . The average family spends $ 4.00 on vending machine tokens . Equipment is depreciated on a straight-line basis over 5 years . Managers have health benefits , other workers do not . The company will operate from 10:00 am to 9:00 pm , 7 days a week . The entrepreneur will manage the store and draw a salary . Every shift has one person on the cash register , one keeping the food bars stocked with food , two cooking the food , one on busing and table cleaning , a manager , and assistant manager .