Deli Restaurant Business Plan

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New World Deli

Financial Plan

Forecast

Key Assumptions

We assume a slightly higher gross margin than industry standards for eating places, because we don’t have the full slate of meals or servers.  Also, kitchen and busboy employees are not included in cost of sales, for simplicity. 

Because we’re new to this business, we’ve adjusted the profitability into normal range by adding a relatively large amount of additional unitemized expenses.  That gives us a buffer for the additional unforeseen expenses that we expect will come up.  If they don’t, then we’ll be more profitable than normal for the deli business

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

Startup expenses (as listed in retained earnings Dec 16) are: 

    
Legal    $500
Stationery etc.    $300
Rent    $1,000
Expensed Equipment    $3,000
Other    $1,000
TOTAL START-UP EXPENSES    $5,800

Sources of Funds

  Jane Ericson will be investing $20,000 of savings and guaranteeing a loan for another $30,000 with personal assets.  In addition, the business will receive an interest-free loan from a family member of $10,000, to be repaid within the first year.

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $346,340 $511,643 $682,268
Operating Expenses
Salaries & Wages $201,600 $315,008 $339,708
Employee Related Expenses $40,320 $63,002 $67,941
sales $14,400 $14,400 $14,400
marketing $7,200 $7,200 $7,200
Utilities $6,000 $6,000 $6,000
Rent $24,000 $24,000 $24,000
Amortization of Other Current Assets $0 $0 $0
Interest Incurred $1,150
Depreciation and Amortization $2,400 $2,400 $2,400
Gain or Loss from Sale of Assets
Income Taxes $7,391 $11,945 $33,092
Total Expenses $637,219 $935,533 $1,150,254
Net Profit $41,879 $67,689 $187,526

Projected Balance Sheet

Starting Balances 2020 2021 2022
Cash $28,200 $62,819 $139,503 $244,960
Accounts Receivable $0 $0 $0
Inventory
Other Current Assets $2,000 $2,000 $2,000 $2,000
Total Current Assets $30,200 $64,819 $141,503 $246,960
Long-Term Assets $24,000 $24,000 $24,000 $24,000
Accumulated Depreciation ($2,400) ($4,800) ($7,200)
Total Long-Term Assets $24,000 $21,600 $19,200 $16,800
Accounts Payable $28,869 $33,948 $44,195
Income Taxes Payable $1,470 $2,987 $8,271
Sales Taxes Payable
Short-Term Debt $40,000
Prepaid Revenue
Total Current Liabilities $40,000 $30,339 $36,935 $52,466
Long-Term Debt $0 $0 $0 $0
Long-Term Liabilities $0 $0 $0 $0
Paid-In Capital $20,000 $20,000 $20,000 $20,000
Retained Earnings ($5,800) ($5,800) $36,079 $3,768
Earnings $41,879 $67,689 $187,526

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $41,879 $67,689 $187,526
Depreciation & Amortization $2,400 $2,400 $2,400
Change in Accounts Receivable $0 $0 $0
Change in Inventory
Change in Accounts Payable $28,869 $5,079 $10,246
Change in Income Tax Payable $1,470 $1,517 $5,284
Change in Sales Tax Payable
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received
Dividends & Distributions ($100,000)
Change in Short-Term Debt ($40,000)
Change in Long-Term Debt $0 $0 $0
Cash at Beginning of Period $28,200 $62,819 $139,503
Net Change in Cash $34,619 $76,685 $105,456
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