Fast Food Restaurant Business Plan

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Fresin Fries

Financial Plan

Forecast

Key Assumptions

  1. Status quo regarding regulation
  2. No major change in macro-economic or political situation. 
  3. We assume our product, product quality, and social media marketing will generate healthy growth in buzz and steady increase in sales
  4. We assume efficient management of multiple sites
  5. We will make the first site work before moving to the second. 
  6. We will not add sites while any site is not working well
  7. We expect expansion will cause a loss in our second year, but that it will be an acceptable loss and we will have working capital to finance it. 

Revenue

Chart visualizing the data for Revenue

Revenue

Chart visualizing the data for Revenue

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

Our startup funding of $100,000 will cover both startup expenses and initial assets. specifically:

Startup expenses of $54,500 incurred before launch: 

These pre-launch, pre-revenue expenses show up in our financials as negative retained earnings in the Balance Sheet at launch. 

  • Legal: $3,000
  • Furniture and interior: 17,000 (We discussed calling these assets, but we think we can legitimately expense them instead; that’s better for tax treatment)
  • Rent: $15,000. We need five weeks in the location for fixup and such before we launch. 
  • Branding: $3,500. Includes imagery, website, logo, social media accounts, etc.
  • Location fixup: $10,000
  • Other: $2,000
  • Total: $50,500

Current assets required:

  • Cash: $50,000 to cover early deficits, working capital, etc. 
  • Inventory: $10,000
  • Plates, napkins, etc. $4,000 (other current assets in starting balance) 

Long-term Assets

  • Kitchen and fixtures: $22,000

Total Startup Costs: 

  • $54,500 in expenses incurred before launch
  • $86,000 in assets required at launch, including $50K cash reserve. 
  • Total: $140,500 startup cost

 

 

Sources of Funds

Investment will be in equal parts from all four founders. We expect to invest $100,000 to start and an additional $100,000 at the beginning of the second year. We plan to avoid commercial borrowing. 

Statements

Projected Profit & Loss

FY2019 FY2020 FY2021
Gross Margin $331,784 $621,346 $1,169,675
Operating Expenses
Salaries & Wages $88,200 $306,960 $484,968
Employee Related Expenses $17,640 $61,392 $96,994
Rent $174,000 $248,000 $298,000
Utilities $9,000 $15,000 $24,000
Marketing expenses $21,756 $40,744 $76,700
Amortization of Other Current Assets $11,000 $31,000 $50,250
Interest Incurred
Depreciation and Amortization $3,143 $4,045 $5,713
Gain or Loss from Sale of Assets
Income Taxes $1,761 ($1,761) $13,575
Total Expenses $538,625 $1,102,634 $1,798,024
Net Profit $5,284 ($84,034) $119,476

Projected Balance Sheet

Starting Balances FY2019 FY2020 FY2021
Cash $50,000 $26,029 $26,361 $159,099
Accounts Receivable $0 $0 $0 $0
Inventory $10,000 $33,104 $62,319 $62,319
Other Current Assets $4,000 $6,500 $11,500 $15,250
Total Current Assets $64,000 $65,634 $100,180 $236,669
Long-Term Assets $22,000 $22,000 $27,000 $32,000
Accumulated Depreciation $0 ($3,143) ($7,188) ($12,901)
Total Long-Term Assets $22,000 $18,857 $19,812 $19,099
Accounts Payable $32,500 $26,647 $43,816 $47,772
Income Taxes Payable ($3,107) ($1,761) $8,033
Sales Taxes Payable $2,167 $3,187 $5,737
Short-Term Debt
Prepaid Revenue
Total Current Liabilities $32,500 $25,707 $45,242 $61,542
Long-Term Debt
Long-Term Liabilities
Paid-In Capital $100,000 $100,000 $200,000 $200,000
Retained Earnings ($46,500) ($46,500) ($41,216) ($125,250)
Earnings $5,284 ($84,035) $119,476

Projected Cash Flow Statement

FY2019 FY2020 FY2021
Net Cash Flow from Operations
Net Profit $5,284 ($84,034) $119,476
Depreciation & Amortization $14,143 $35,046 $55,962
Change in Accounts Receivable $0 $0 $0
Change in Inventory ($23,104) ($29,215) $0
Change in Accounts Payable ($5,853) $17,169 $3,956
Change in Income Tax Payable ($3,107) $1,346 $9,794
Change in Sales Tax Payable $2,167 $1,020 $2,550
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold ($13,500) ($41,000) ($59,000)
Investments Received $100,000
Dividends & Distributions
Change in Short-Term Debt
Change in Long-Term Debt
Cash at Beginning of Period $50,000 $26,029 $26,361
Net Change in Cash ($23,971) $331 $132,739
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