Movie Theater Restaurant Business Plan

Second Run Pizza

Financial Plan

We will invest $300,000 of our own capital. This will provide the start-up financing required.

7.1 Break-even Analysis

Our break-even analysis is based on the average of the first-year numbers for total sales by meal served, total cost of sales, and all operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. We realize that this is not the same as fixed cost, but these conservative assumptions make for a better estimate of real risk.

Movie theater restaurant business plan, financial plan chart image

Break-even Analysis


Monthly Units Break-even	7,778
Monthly Revenue Break-even	$46,356

Assumptions:
Average Per-Unit Revenue	$5.96
Average Per-Unit Variable Cost	$1.53
Estimated Monthly Fixed Cost	$34,483

7.2 Projected Profit and Loss

The following table and chart shows projected profit and loss.

Pro Forma Profit and Loss
	Year 1	Year 2	Year 3
Sales	$692,100	$860,000	$1,150,000
Direct Cost of Sales	$177,255	$213,500	$287,000
Movie Screening Expenses	$77,861	$96,750	$129,375
Total Cost of Sales	$255,116	$310,250	$416,375

Gross Margin	$436,984	$549,750	$733,625
Gross Margin %	63.14%	63.92%	63.79%


Expenses
Payroll	$288,000	$307,000	$326,000
Sales and Marketing and Other Expenses	$22,600	$8,000	$8,000
Depreciation	$0	$0	$0
Leased Equipment	$0	$0	$0
Utilities	$14,400	$14,400	$14,400
Insurance	$21,600	$21,600	$21,600
Rent	$24,000	$24,000	$24,000
Payroll Taxes	$43,200	$46,050	$48,900
Other	$0	$0	$0

Total Operating Expenses	$413,800	$421,050	$442,900

Profit Before Interest and Taxes	$23,184	$128,700	$290,725
EBITDA	$23,184	$128,700	$290,725
Interest Expense	$0	$0	$0
Taxes Incurred	$6,955	$38,610	$87,218

Net Profit	$16,229	$90,090	$203,508
Net Profit/Sales	2.34%	10.48%	17.70%

7.3 Projected Cash Flow

The table and chart shows projected cash flow for the year.

Pro Forma Cash Flow
	Year 1	Year 2	Year 3
Cash Received

Cash from Operations
Cash Sales	$692,100	$860,000	$1,150,000
Subtotal Cash from Operations	$692,100	$860,000	$1,150,000

Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
Subtotal Cash Received	$692,100	$860,000	$1,150,000

Expenditures	Year 1	Year 2	Year 3

Expenditures from Operations
Cash Spending	$288,000	$307,000	$326,000
Bill Payments	$337,234	$475,500	$607,541
Subtotal Spent on Operations	$625,234	$782,500	$933,541

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
Subtotal Cash Spent	$625,234	$782,500	$933,541

Net Cash Flow	$66,866	$77,500	$216,459
Cash Balance	$216,066	$293,566	$510,026

7.4 Projected Balance Sheet

The table shows projected balance sheet for three years.

Pro Forma Balance Sheet
	Year 1	Year 2	Year 3
Assets

Current Assets
Cash	$216,066	$293,566	$510,026
Other Current Assets	$10,000	$10,000	$10,000
Total Current Assets	$226,066	$303,566	$520,026

Long-term Assets
Long-term Assets	$0	$0	$0
Accumulated Depreciation	$0	$0	$0
Total Long-term Assets	$0	$0	$0
Total Assets	$226,066	$303,566	$520,026

Liabilities and Capital	Year 1	Year 2	Year 3

Current Liabilities
Accounts Payable	$50,638	$38,047	$50,999
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$50,638	$38,047	$50,999

Long-term Liabilities	$0	$0	$0
Total Liabilities	$50,638	$38,047	$50,999

Paid-in Capital	$300,000	$300,000	$300,000
Retained Earnings	($140,800)	($124,571)	($34,481)
Earnings	$16,229	$90,090	$203,508
Total Capital	$175,429	$265,519	$469,026
Total Liabilities and Capital	$226,066	$303,566	$520,026

Net Worth	$175,429	$265,519	$469,026

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry Profile ratios based on the Standard Industrial Classification (SIC) code 5813, Eating Places, are shown for comparison.

Ratio Analysis
	Year 1	Year 2	Year 3	Industry Profile
Sales Growth	0.00%	24.26%	33.72%	1.90%

Percent of Total Assets
Other Current Assets	4.42%	3.29%	1.92%	44.60%
Total Current Assets	100.00%	100.00%	100.00%	52.30%
Long-term Assets	0.00%	0.00%	0.00%	47.70%
Total Assets	100.00%	100.00%	100.00%	100.00%

Current Liabilities	22.40%	12.53%	9.81%	28.20%
Long-term Liabilities	0.00%	0.00%	0.00%	23.10%
Total Liabilities	22.40%	12.53%	9.81%	51.30%
Net Worth	77.60%	87.47%	90.19%	48.70%

Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	63.14%	63.92%	63.79%	42.30%
Selling, General & Administrative Expenses	60.79%	53.45%	46.10%	23.40%
Advertising Expenses	3.27%	0.93%	0.70%	2.40%
Profit Before Interest and Taxes	3.35%	14.97%	25.28%	2.80%

Main Ratios
Current	4.46	7.98	10.20	1.14
Quick	4.46	7.98	10.20	0.74
Total Debt to Total Assets	22.40%	12.53%	9.81%	51.30%
Pre-tax Return on Net Worth	13.22%	48.47%	61.98%	5.20%
Pre-tax Return on Assets	10.26%	42.40%	55.91%	10.60%

Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	2.34%	10.48%	17.70%	n.a
Return on Equity	9.25%	33.93%	43.39%	n.a

Activity Ratios
Accounts Payable Turnover	7.66	12.17	12.17	n.a
Payment Days	27	35	26	n.a
Total Asset Turnover	3.06	2.83	2.21	n.a

Debt Ratios
Debt to Net Worth	0.29	0.14	0.11	n.a
Current Liab. to Liab.	1.00	1.00	1.00	n.a

Liquidity Ratios
Net Working Capital	$175,429	$265,519	$469,026	n.a
Interest Coverage	0.00	0.00	0.00	n.a

Additional Ratios
Assets to Sales	0.33	0.35	0.45	n.a
Current Debt/Total Assets	22%	13%	10%	n.a
Acid Test	4.46	7.98	10.20	n.a
Sales/Net Worth	3.95	3.24	2.45	n.a
Dividend Payout	0.00	0.00	0.00	n.a