Open new restaurant-up-scale restaurant will be profitable

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Gilbert Monzon wants to open a new restaurant. In order to do so, he needs to convince Banco Popular that his up-scale restaurant will be profitable. Gilbert wants to use Planners Lab to model the profit and loss for the next six months. He will use this information in the business plan he plans to present to the CFO of the bank. Gilbert has decided to name his restaurant “Parrot Club” and he has located the perfect building in San Juan. Rent is $2000 and utilities are $1000 per month. Gilbert estimates that on average the restaurant will be open 20 days each month. The building has capacity for 20 tables with 4 chairs per table. Advertising should cost about $500 per month. The average dollar spent by each patron in the first month is estimated to be $15. Gilbert believes this figure should increase by $1 each month. He estimates traffic to be 75%, 80%, 85%, 90%, 95%, 95% of capacity over the next six months. From his experience he believes miscellaneous expenses (linen, menus, etc.) will add up to $1000 per month, cost of goods sold (food, liquor, etc.) 35% of revenue and payroll 20% of revenue. Finally, he assumes that the tables will turn over (i.e., the number of seatings) twice a day during the first month, three times during the second and third months and four times per day during the fourth, fifth and sixth months.

Reference no: EM13857372

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