Reference no: EM13933338

You have always wanted to own a restaurant and have now decided to go into business, purchase a building, and open an Italian Bistro. The items listed below provide information regarding the purchases you will need to make to start your business.

The building and the land it sits on will cost $250,000 and you have 20% to put down on the property. Annual taxes are $6,000 and fire and liability insurance is $3,600.

You have $150,000 of additional funds to allocate for refurbishing the grounds, building structure, interior design, and kitchen. 10% of the savings will be allocated to the grounds, 20% to the building’s structure, 20% to update the interior design, and 50% for kitchen installation and fire suppression systems.

Tables are $200 each for 2 tops, $300 each for 4 tops, and $500 each for 6 tops. You plan to purchase eight (8) 2-top tables, six (6) 4-top tables, and ten (10) 6-top tables. Chairs cost $50 each. You are planning on being able to seat 100 people in the restaurant at a time and need 10 extra chairs. Silverware, tablecloths and napkins cost a total of $6,000, serving utensils cost a total of $3,000, and glassware cost a total of $5,000.

Place/plate settings cost $35 each. You need to purchase three times the number of planned seats for turn-around and breakage. (Remember you are planning for 100 people in your restaurant.)

Servicing carts, cooking equipment, prep tables, storage containers, and other supplies will cost a total of $16,000.

Research suggests that the average receipt total per person is $12.80 and the average cost per meal is $6.86 for the Italian restaurants in your area. The research also suggests that tables are turned over for new customers between 13 and 21 times a day in your area, and that restaurants have between 40% and 60% occupancy fill rate each day.