Sunteți pe pagina 1din 13

06/08/2011

Company / Setup Information

Name of Entity Smith & Berry


Type of Entity Limited Liability Company

Name of Restaurant Smyth and Berry


Type of Concept Pizza & Delivery

Number of Dining Seats 25


Square Footage 1,500
Projected Opening Date Augst 15, 2008

Equity Capital $ 125,000

Worksheet: Company Info


Smith & Berry
Projected Sources & Uses of Cash
Development & Startup Period

SOURCES OF CASH:
Equity Contributions $ 125,000
Loan Financing 100,000
TOTAL SOURCES OF CASH $ 225,000

USES OF CASH:
Land & Building 0
Leasehold Improvements 25,000
Bar / Kitchen Equipment 30,000
Bar / Dining Room Furniture 5,000
Professional Services 5,000
Organizational & Development 26,500
Interior Finishes & Equipment 17,500
Exterior Finishes & Equipment 5,000
Pre-Opening Expenses 36,000
Working Capital & Contingency 75,000

TOTAL USES OF CASH $ 225,000


Smith & Berry
Capital Budget

TOTAL COST Detail

LAND & BUILDING 0


Land
Building - Construction / Contractor Fees

LEASEHOLD IMPROVEMENTS 25,000


Construction Contract 0
Landlord Contribution 25,000

KITCHEN EQUIPMENT (see Schedule) 30,000

DINING ROOM FURNITURE 5,000

PROFESSIONAL SERVICES 5,000


Architect & Engineering 0
Legal (lease & incorporation) 2,500
Project Consultant 0
Accounting & Tax 1,500
Name, Logo & Graphic Design 1,000

ORGANIZATIONAL & DEVELOPMENT 26,500


Deposits (utilities, sales tax, etc.) 1,000
Insurance Binder (property, casualty, liability) 3,000
Workers Comp. Binder 750
Building Permits 0
Other Licenses & Permits 1,500
Utility Deposits (gas, electric, water) 1,000
Change, Operating Banks & Petty Cash 750
Menus / Menu Boards 3,500
Lease Deposit 15,000
Travel, Research, Concept Development 0

INTERIOR FINISHES & EQUIPMENT 17,500


Kitchen Smallwares 3,500
Artwork & Specialty Décor 1,500
Security System 1,500
Music/Sound/Audio-Visual Systems 500
Cash Register / Point of Sale 7,500
Phone System 500
Office Equipment / Computer 1,000
Office Supplies 500
Interior Signs 0
Drive-Thru Signs & Equipment 0
Other 1,000

EXTERIOR FINISHES & EQUIPMENT 5,000


Landscaping 0
Exterior Signs & Decorations 5,000
Resurfacing 0
Parking Bumpers 0
Parking Lot Striping 0
Other 0

PRE-OPENING EXPENSES 36,000


Construction Period Utilities 2,500
Construction Period Building Lease 0
Construction Period Interest 1,000
Uniforms 500
Opening Inventories -
Food & Beverage 7,500
Paper 1,500
Retail Merchandise 0
Other Restaurant Supplies 1,500
Marketing -
Advertising 4,500
Public Relations 3,500
Opening Parties 1,000
Personnel -
Manager 1 3,500
Manager 2 3,500
Hourly Employees 2,500
Payroll Taxes & Employee Beneifts 3,000

WORKING CAPITAL & CONTINGENCY 75,000


Working Capital 50,000
Contingency 25,000
TOTAL PROJECT COST $ 225,000
Smith & Berry
Detailed Equipment Schedule

NUM QTY DESCRIPTION MANUF MODEL SOURCE EST $$

1 Refrigerated Dough Rolling Table Bev-Air WTR - 93 New $ 3,000


2 Dough Mixer Hobart 60 qt Used 5,500
3 Slicer General SMH 12 L New 2,900
4 Vertical Pan Stacking Rack New Age SWO 480 New 170
5 2 Pizza Ovens w/. Stand Bakers Pride Y-600 New 9,000
6 2 Pizza Prep Table Bev-Air DP 119 New 4,000
7 Menu Board 1,800
8 Hot Pizza Warmer HVRE HV 7894 New 675
9 Cutting Table Overshelf (included in leasehold improvements) 0
10 4 Rolling Bun Pan Racks HVRE SWO 204 New 565
11 Flour Dunnage Rack 150
12 3 Rolling Trash Can Rubbermaid 20 gal 90
13 First Aid Kit 100
14 Edlund Can Opener Edlund #2 New 50
15 Heated Delivery Hold Area 2,000
16 Chemical Storage Closet (included in leasehold improvements) 0

TOTAL $30,000
Smith & Berry
Initial Weekly Sales Projections

Dine-In % of
Pizza Other Carry - Out Delivery Total $$ Sales Week
Lunch Covers 8 5 5 28
Lunch Sales 137 29 80 446 692
Monday Dinner Covers 5 4 5 40
Dinner Sales 86 23 80 637 825
Total Sales 222 52 159 1,083 1,517 10.4%

Lunch Covers 8 5 5 35
Lunch Sales 137 29 80 558 803
Tuesday Dinner Covers 5 4 5 40
Dinner Sales 86 23 80 637 825
Total Sales 222 52 159 1,195 1,628 11.1%

Lunch Covers 10 8 6 35
Lunch Sales 171 47 96 558 871
Wednesday Dinner Covers 5 4 4 45
Dinner Sales 86 23 64 717 889
Total Sales 257 70 159 1,274 1,760 12.0%

Lunch Covers 12 8 10 40
Lunch Sales 205 47 159 637 1,049
Thursday Dinner Covers 10 8 4 50
Dinner Sales 171 46 64 797 1,077
Total Sales 376 93 223 1,434 2,125 14.5%

Lunch Covers 14 10 15 40
Lunch Sales 239 59 239 637 1,174
Friday Dinner Covers 12 6 8 90
Dinner Sales 205 34 127 1,434 1,801
Total Sales 445 93 366 2,071 2,975 20.3%

Lunch Covers 5 4 8 35
Lunch Sales 86 23 127 558 794
Saturday Dinner Covers 8 3 10 95
Dinner Sales 137 17 159 1,513 1,827
Total Sales 222 41 287 2,071 2,620 17.9%

Lunch Covers 6 7 8 20
Lunch Sales 103 41 127 319 590
Sunday Dinner Covers 12 6 10 65
Dinner Sales 205 34 159 1,035 1,434
Total Sales 308 75 287 1,354 2,024 13.8%

F&B Sales 2,052 475 1,641 10,482 14,650


Sales Mix 14% 3% 11% 72% 100%
WEEK TOTALS
Delivery Fees 658
Total Sales 15,308

ANNUALIZED SALES $796,009


Smith & Berry
Initial Labor Projection Worksheet

11 AM - 5 PM Monday Tuesday Wednesday Thursday Friday Saturday Sunday WEEK


Buffet & Non-Pizza Customers 5 5 8 8 10 4 7 47
Dine-In & Carry Out Pizzas 13 13 16 22 29 13 14 120
Delivery Pizzas 28 35 35 40 40 35 20 233
Total Pizzas 41 48 59 70 79 52 41 390
Total Food & Beverage Sales $692 $803 $871 $1,049 $1,174 $794 $590 $5,972
Position Rate Hours # Hours # Hours # Hours # Hours # Hours # Hours # Labor $
Kitchen -
Pizza Makers $ 10.00 8.0 1 8.0 1 8.0 1 8.0 1 8.0 1 8.0 1 8.0 1 $560
Prep Cooks $ 8.00 8.0 1 8.0 1 8.0 1 8.0 1 8.0 1 8.0 1 8.0 1 $448
Other $ 8.00 8.0 0 8.0 0 8.0 0 8.0 0 8.0 0 8.0 0 8.0 0 $0
Dining Room / Counter -
Counter Staff $ 12.00 6.0 1 6.0 1 6.0 1 6.0 1 6.0 1 6.0 1 6.0 1 $504
Other $ 8.00 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 $0
Delivery -
Drivers $ 0.00 6.0 1 6.0 1 6.0 1 6.0 1 6.0 2 6.0 2 6.0 1 $0
Other $ 0.00 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 $0
Labor Cost Per Shift - $ $216 $216 $216 $216 $216 $216 $216 $1,512
Labor Cost Per Shift - % 31.2% 26.9% 24.8% 20.6% 18.4% 27.2% 36.6% 25.3%

Dinner/Late Night
Open 5 PM - 4 AM Monday Tuesday Wednesday Thursday Friday Saturday Sunday WEEK
Buffet & Non-Pizza Customers 4 4 4 8 6 3 6 35
Dine-In & Carry Out Pizzas 10 10 9 14 20 18 22 103
Delivery Pizzas 40 40 45 50 90 95 65 425
Total Pizzas 50 50 58 72 116 116 93 555
Total Restaurant $$ Sales $825 $825 $889 $1,077 $1,801 $1,827 $1,434 $8,678
Position Rate Hours # Hours # Hours # Hours # Hours # Hours # Hours # Labor $
Kitchen -
Pizza Makers $ 10.00 10.0 1 10.0 1 10.0 0 10.0 0 10.0 0 10.0 0 10.0 0 $200
Prep Cooks $ 8.00 12.0 1 12.0 1 12.0 1 12.0 1 12.0 1 12.0 1 12.0 1 $672
Other $ 8.00 6.0 0 8.0 0 8.0 0 8.0 0 8.0 0 8.0 0 8.0 0 $0
Dining Room / Counter -
Counter Staff $ 12.00 4.0 1 4.0 1 4.0 1 4.0 1 4.0 1 4.0 1 4.0 1 $336
Other $ 8.00 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 $0
Delivery -
Drivers $ 0.00 6.0 2 6.0 2 6.0 2 6.0 2 6.0 3 6.0 3 6.0 2 $0
Other $ 0.00 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 $0
Labor Cost Per Shift - $ $244 $244 $144 $144 $144 $144 $144 $1,208
Labor Cost Per Shift - % 29.6% 29.6% 16.2% 13.4% 8.0% 7.9% 10.0% 13.9%

- DAY / WEEK TOTALS - HOURLY LABOR (Food & Beverage Sales Only)
Total Sales $1,517 $1,628 $1,760 $2,125 $2,975 $2,620 $2,024 $14,650
Hourly Labor - $ $460 $460 $360 $360 $360 $360 $360 $2,720
Hourly Labor Cost - % 30.3% 28.2% 20.5% 16.9% 12.1% 13.7% 17.8% 18.6%

WEEK TOTALS - HOURLY LABOR (including delivery fees)


Total Food & Beverage Sales $14,650
Total Delivery Fees 658
Total Sales $15,308 100.0%

Hourly Labor Cost (before delivery fees) $2,720


Delivery Fees Paid to Drivers 658
Total Hourly Labor Cost $3,378 22.1%
06/08/2011

Smith & Berry


Assumptions to the Operating Projections

Sales (from "Sales Projection" worksheet) Weekly Ave Annual


Food & Beverage Sales 14,650 761,793 100.0%
Total Sales 14,650 761,793 100.0%

Cost of Sales Annual $ % of Sales


1. Food & Beverage Cost % 22.0% of total sales 167,594
2. Paper Cost % 3.5% of total sales 26,663
Total Cost of Sales 194,257 25.5%

Management Salaries (Annual) % of Sales


1. Managing Partner 40,000 5.3%
2. Assistant Manager 0 0.0%
3. Kitchen Manager 36,000 4.7%
4. Assistant Kitchen Manager 0 0.0%
Total Management Salaries 76,000 10.0%

Hourly Labor Cost (from "Hourly Labor" worksheet) Weekly Ave Annual %
Total Hourly Labor Cost 3,378 175,656 23.1%
Total Management Salaries 76,000 10.0%
Total Gross Payroll 251,656 33.0%

Employee Benefits Monthly $ Annual $ % of Sales


1. FICA Taxes - as a % of Gross Payroll 8.00% 20,132
2. State Unemployment-as a % of Gross Payroll 2.00% 5,033
3. Federal Unemployment-as a % of Gross Payroll 0.80% 2,013
4. Other Payroll Taxes-as a % of Gross Payroll 0.00% 0
5. Worker's Comp. - as a % of Gross Payroll 4.0% 10,066
6. Group Medical Insurance - cost per employee 0 0
7. Group Medical Ins.-# of employees covered 0
8. Disability & Life Insurance 0 0
9. 401k Plan - per month 0 0
10. Employee Meals - per month 500 6,000
11. Employee Education - per month 0 0
12. Awards & Prizes - per month 0 0
13. Employee Christmas & Other Parties - per month 0 0
14. Transportation & Housing - per month 0 0
Total Employee Benefits 43,245 5.7%

Direct Operating Expenses Monthly $ % of Sales Annual $ % of Sales


1. Auto Expense 0 0
2. Cleaning Supplies 200 2,400
3. Contract Cleaning 300 3,600
4. Extermination 300 3,600
5. Kitchen Utensils 150 1,800
6. Laundry 150 1,800
7. Licenses & Permits 300 3,600
8. Miscellaneous 300 3,600
9. Security System 250 3,000
10. Uniforms 100 1,200
Total Direct Operating Expenses 24,600 3.2%

Music & Entertainment - Monthly $ Annual $ % of Sales


1. Musak & Sound System 65 780
2. Other 0
Total Music & Entertainment 780 0.1%

Marketing - Monthly $ Annual $ % of Sales


1. PR 3,000 36,000
2. Advertising 250 3,000
3. Printed Materials 500 6,000
4. Research 0 0
Total Marketing 45,000 5.9%

Utilities - Monthly $ Annual $ % of Sales


1. Electricity 800 9,600
2. Gas 1,200 14,400
3. Water 0 0
4. Trash Removal 100 1,200
Total Utilities 25,200 3.3%

General & Administrative - Monthly $ Annual $ % of Sales


1. Accounting Services 600 7,200
2. Bank Charges 50 600
3. Bank Deposit Services 0 0
4. Cash (Over) / Short 5 60
5. Credit Card Charges (see below) 15,449
6. Dues & Subscriptions 150 1,800
7. Insurance - Non-Own Auto Liability (delivery) 200 2,400
8. Miscellaneous 200 2,400
9. Office Supplies 100 1,200
10. Payroll Processing 0 0
11. Postage 250 3,000
12. Professional Fees 0 0
13. Protective Services 0 0
14. Telephone 300 3,600
15. Training Materials 25 300
Total General & Administrative 38,009 5.0%

Credit Card Charges:


1. Percentage of Credit Card Sales 78.0%
2. Average Discount Percentage 2.6%

Repairs & Maintenance Monthly $ Annual $ % of Sales


1. Building Repairs & Maint. 0 0
2. Equipment Repairs & Maint. 500 6,000
3. Grounds, Landscaping & Parking Lot 0 0
Total Repairs & Maintenance 6,000 0.8%

Occupancy Costs: Monthly $ Annual $ % of Sales


1. Base (minimum) Rent 7,000 84,000
2. Percentage Rent - 0
Percentage amount 7.0%
On annual sales above 1,000,000
3. Common Area Maintenance (CAM) 0 0
4. Equipment Rental 0 0
5. Real Estate Taxes 0 0
6. Personal Property Taxes 200 2,400
7. Insurance on Building & Contents 700 8,400
8. Liquor Liability 0 0
Total Occupancy Costs 94,800 12.4%

Depreciation & Amortization: Basis Period Per Year % of Sales


1. Building 0 30 years 0
2. Leasehold Improvements 61,500 39.5 years 1,557
3. Furniture & Equipment 49,000 7 years 7,000
4. Pre-Opening Costs 43,000 5 years 8,600
Total Depreciation & Amortization 17,157 2.3%

Other Income Monthly $ Annual $


1. Vending & Telephone Commissions 0 0
2. Grease Sales 100 1,200
3. Misc Other Income 0 0

Other Expense Monthly $ Annual $


1. Interest 646 7,754
2. Misc Other Expense 200 2,400

Loan Financing
Principle Amount 100,000
Rate 8.0%
Term 10 years Annual $
Monthly Payment 1,213 monthly pmt. 14,559

Worksheet: Assumptions
06/08/2011
Smith & Berry
Annual Operating Projection - Detail
First Full Year of Operations
MONTHLY AVE ANNUAL
Sales:
Food & Beverage $ 63,483 95.7% $ 761,793 95.7%
Delivery Fees 2,851 4.3% 34,216 4.3%
TOTAL SALES 66,334 100.0% 796,009 100.0%
Cost of Sales: (as a % of food & beveage sales)
Food & Beverage 13,966 22.0% 167,594 22.0%
Paper 2,222 3.5% 26,663 3.5%
TOTAL COST OF SALES 16,188 25.5% 194,257 25.5%
Gross Profit 50,146 75.6% 601,751 75.6%
Payroll:
Salaries & Wages -
Management 6,333 9.5% 76,000 9.5%
Hourly Employees 14,638 22.1% 175,656 22.1%
Total Salaries & Wages 20,971 31.6% 251,656 31.6%
Employee Benefits -
Payroll Taxes - Mgt. Incentive 2,265 3.4% 27,179 3.4%
Worker's Comp. 839 1.3% 10,066 1.3%
Group Medical Insurance 0 0.0% 0 0.0%
Other 500 0.8% 6,000 0.8%
Total Employee Benefits 3,604 5.4% 43,245 5.4%
TOTAL PAYROLL 24,575 37.0% 294,901 37.0%
PRIME COST 40,763 61.5% 489,158 61.5%
Other Controllable Expenses:
Direct Operating Expenses
Auto Expense 0 0.0% 0 0.0%
Cleaning Supplies 200 0.3% 2,400 0.3%
Contract Cleaning 300 0.5% 3,600 0.5%
Extermination 300 0.5% 3,600 0.5%
Kitchen Utensils 150 0.2% 1,800 0.2%
Laundry & Linen 150 0.2% 1,800 0.2%
Licenses & Permits 300 0.5% 3,600 0.5%
Miscellaneous 300 0.5% 3,600 0.5%
Security System 250 0.4% 3,000 0.4%
Uniforms 100 0.2% 1,200 0.2%
Total Direct Operating Expenses 2,050 3.1% 24,600 3.1%
Music & Entertainment -
Musak & Sound System 65 0.1% 780 0.1%
Other 0 0.0% 0 0.0%
Total Music & Entertainment 65 0.1% 780 0.1%
Marketing -
Selling & Promotions 3,000 4.5% 36,000 4.5%
Advertising 250 0.4% 3,000 0.4%
Printed Materials 500 0.8% 6,000 0.8%
Research 0 0.0% 0 0.0%
Total Marketing 3,750 5.7% 45,000 5.7%
Utilities -
Electrical 800 1.2% 9,600 1.2%
Gas 1,200 1.8% 14,400 1.8%
Water 0 0.0% 0 0.0%
Trash Removal 100 0.2% 1,200 0.2%
Total Utilities 2,100 3.2% 25,200 3.2%
General & Administrative -
Accounting Services 600 0.9% 7,200 0.9%
Bank Charges 50 0.1% 600 0.1%
Bank Deposit Services 0 0.0% 0 0.0%
Cash (Over) / Short 5 0.0% 60 0.0%
Credit Card Charges 1,287 1.9% 15,449 1.9%
Dues & Subscriptions 150 0.2% 1,800 0.2%
Insurance - Non-Owned Auto Liability (delivery) 200 0.3% 2,400 0.3%
Miscellaneous 200 0.3% 2,400 0.3%

Worksheet: P&L-Detail
06/08/2011
Smith & Berry
Annual Operating Projection - Detail
First Full Year of Operations
MONTHLY AVE ANNUAL
Office Supplies 100 0.2% 1,200 0.2%
Payroll Processing 0 0.0% 0 0.0%
Postage 250 0.4% 3,000 0.4%
Legal & Professional Fees 0 0.0% 0 0.0%
Protective Services 0 0.0% 0 0.0%
Telephone 300 0.5% 3,600 0.5%
Training Costs 25 0.0% 300 0.0%
Total General & Administrative 3,167 4.8% 38,009 4.8%
Repairs & Maintenance -
Building Repairs & Maint. 0 0.0% 0 0.0%
Equipment Repairs & Maint. 500 0.8% 6,000 0.8%
Grounds, Landscaping & Parking Lot 0 0.0% 0 0.0%
Total Repairs & Maintenance 500 0.8% 6,000 0.8%
CONTROLLABLE PROFIT 13,938 21.0% 167,261 21.0%
Occupancy Costs & Depreciation
Occupancy Costs -
Rent & Common Area Maintenance 7,000 10.6% 84,000 10.6%
Percentage Rent 0 0.0% 0 0.0%
Common Area Maintenance (CAM) 0 0.0% 0 0.0%
Equipment Rental 0 0.0% 0 0.0%
Real Estate Taxes 0 0.0% 0 0.0%
Personal Property Taxes 200 0.3% 2,400 0.3%
Insurance on Building & Contents 700 1.1% 8,400 1.1%
Liquor Liability 0 0.0% 0 0.0%
Total Occupancy Costs 7,900 11.9% 94,800 11.9%
Depreciation & Amortization -
Building 0 0.0% 0 0.0%
Leasehold Improvements 130 0.2% 1,557 0.2%
Furniture & Equipment 583 0.9% 7,000 0.9%
Pre-Opening Costs 717 1.1% 8,600 1.1%
Total Depreciation 1,430 2.2% 17,157 2.2%
TOTAL OCCUPANCY & DEPREC. 9,330 14.1% 111,957 14.1%

Other (Income) Expense -


Vending & Telephone Commissions 0 0.0% 0 0.0%
Delivery Charges (100) (0.2%) (1,200) (0.2%)
Misc Other Income 0 0.0% 0 0.0%
Interest 646 1.0% 7,754 1.0%
Misc Other Expense 200 0.3% 2,400 0.3%
Total Other (Income) Expense 746 1.1% 8,954 1.1%

NET INCOME BEFORE INCOME TAXES $ 3,863 5.8% $ 46,350 5.8%


ADD BACK:
Depreciation & Amortization 1,430 2.2% 17,157 2.2%
DEDUCT:
Loan Principal Payments (567) (10.3%) (6,805) (0.9%)
CASH FLOW BEFORE INCOME TAXES $ 4,725 7.1% $ 56,702 7.1%

Worksheet: P&L-Detail
Smith & Berry
Annual Operating Projection - Summary
First Full Year of Operations

MONTHLY AVE ANNUAL


Sales:
Food & Beverage $ 63,483 95.7% $ 761,793 95.7%
Delivery Fees 2,851 4.3% 34,216 4.3%
TOTAL SALES 66,334 100.0% 796,009 100.0%
Cost of Sales: (as a % of food & beveage sales)
Food & Beverage 13,966 22.0% 167,594 22.0%
Paper 2,222 3.5% 26,663 3.5%
TOTAL COST OF SALES 16,188 25.5% 194,257 25.5%
Gross Profit 50,146 75.6% 601,751 75.6%
Payroll:
Salaries & Wages 20,971 31.6% 251,656 31.6%
Employee Benefits 3,604 5.4% 43,245 5.4%
TOTAL PAYROLL 24,575 37.0% 294,901 37.0%
PRIME COST 40,763 61.5% 489,158 61.5%
Other Controllable Expenses:
Direct Operating Expenses 2,050 3.1% 24,600 3.1%
Music & Entertainment 65 0.1% 780 0.1%
Marketing 3,750 5.7% 45,000 5.7%
Utilities 2,100 3.2% 25,200 3.2%
General & Administrative Expenses 3,167 4.8% 38,009 4.8%
Repairs & Maintenance 500 0.8% 6,000 0.8%
TOTAL OTHER CONTROLLABLE EXP. 11,632 17.5% 139,589 17.5%
CONTROLLABLE PROFIT 13,938 21.0% 167,261 21.0%
Occupancy Costs & Depreciation
Occupancy Costs 7,900 11.9% 94,800 11.9%
Depreciation & Amortization 1,430 2.2% 17,157 2.2%

Other (Income) Expenses


Other (Income) (100) (0.2%) (1,200) (0.2%)
Interest Expense 646 1.0% 7,754 1.0%
Other Expense 200 0.3% 2,400 0.3%
NET INCOME BEFORE INCOME TAXES $ 3,863 5.8% $ 46,350 5.8%
ADD BACK:
Depreciation & Amortization 1,430 2.2% 17,157 2.2%
DEDUCT:
Loan Principal Payments (567) (0.9%) (6,805) (0.9%)
CASH FLOW BEFORE INCOME TAXES $ 4,725 7.1% $ 56,702 7.1%

KEY RATIOS:
Sales Per Square Foot $531
Sales Per Seat $31,840
Sales to Investment 3.5
Smith & Berry
5 Year Operating Projections
Year 1 Year 2 Year 3 Year 4 Year 5

PROJECTED INVESTMENT RETURNS


Distributable Cash Flow Percent * 85% 85% 90% 90% 90%
Distributable Cash Flow $48,197 $64,524 $88,184 $92,111 $96,172
Cash Distribution:
Investment Partner/Member (LLC) $38,557 $48,166 $29,365 $30,673 $32,025
Operating Partner/Member (LLC) $9,639 $16,357 $58,819 $61,438 $64,147
Investment Partner/Member (LLC) Returns:
Net Investment After Cash Distributions - End of Year $46,443 $0 $0 $0 $0
Payback Period 1.7 yrs.
Annual Return on Investment (before tax) 45.4% 56.7% 34.5% 36.1% 37.7%
Average Annual Return on Investment 42.1%
* It may be advantageous to retain a portion of the cash flow in the business for working capital, capital improvement reserves or for other reasons.

INVESTMENT ASSUMPTIONS

Total Equity Investment $125,000


Operating Partner/Member (LLC)
Equity Contribution $40,000
Cash Distribution Ratio Before Investor Payback* 20%
Cash Distribution Ratio After Investor Payback 67%
Investment Partner/Member (LLC)
Equity Contribution $85,000
Cash Distribution Ratio Before Investor Payback 80%
Cash Distribution Ratio After Investor Payback 33%

* Investor "Payback" is the point at which the investor recoups 100% of their Equity Contribution.

OPERATING ASSUMPTIONS - Years 2 - 5


Sales - % Increase Over Prior Year
Food & Beverage 6.0% 6.0% 3.0% 3.0%
Delivery Fees 4.0% 4.0% 3.0% 3.0%
Cost of Sales - Cost as a % of Sales
Food & Beverage 22.0% 22.0% 22.0% 22.0%
Paper 3.5% 3.5% 3.5% 3.5%
Salaries & Wages - % Increase over Prior Year
Salaries & Wages 3.0% 3.0% 3.0% 3.0%
Employee Benefits 3.0% 3.0% 3.0% 3.0%
Other Expenses - % Increase over Prior Year
Direct Operating Expenses 3.0% 3.0% 3.0% 3.0%
Music & Entertainment 3.0% 3.0% 3.0% 3.0%
Marketing 3.0% 3.0% 3.0% 3.0%
Utilities 3.0% 3.0% 3.0% 3.0%
General & Administrative Expenses 3.0% 3.0% 3.0% 3.0%
Repairs & Maintenance 3.0% 3.0% 3.0% 3.0%
Occupancy Costs 2.0% 2.0% 2.0% 2.0%
Depreciation & Amortization (assumed to be constant in years 1-5)
Other (Income) 3.0% 3.0% 3.0% 3.0%
Interest Expense (from annual interest expense on loan amortization schedule on "Assumptions" page)
Other Expense 3.0% 3.0% 3.0% 3.0%
Loan Principal Payments (from annual total principal payments on loan amortization schedule on "Assumptions" page)
Smith & Berry
CASH FLOW Break-Even Worksheet

Fixed Costs Annual Monthly


Total Management Salaries $76,000 $6,333
Minimum Hourly Labor 75% $131,742 $10,979
Employee Benefits $36,746 $3,062
Direct Operating Expenses $24,600 $2,050
Music & Entertainment $780 $65
Marketing $45,000 $3,750
Utilities $25,200 $2,100
General & Administrative $22,560 $1,880
Repairs & Maintenance $6,000 $500
Occupancy Costs $94,800 $7,900
Interest $7,754 $646
Misc Other Expense $2,400 $200
Loan Principal Payments $6,805 $567
$480,387 $40,032

Variable Costs % of Sales $


Cost of Sales 25.5% $15,501
Hourly Labor 5.8% $3,504
Employee Benefits 0.9% $519
Credit Card Expense 2.0% $1,233
34.1% $20,757

Annual Monthly
Percentage Rent $- $-

Annual Monthly Weekly


Break-even Sales $729,470 $60,789 $14,028
06/08/2011

Smith & Berry


Cash Flow Break-Even Sales Volume

MONTHLY ANNUAL
Sales:
Total Sales $ 60,789 100.0% $ 729,470 100.0%
TOTAL SALES 60,789 100.0% 729,470 100.0%
Cost of Sales:
Food & Beverage 13,374 22.0% 160,483 22.0%
Paper 2,128 3.5% 25,531 3.5%
TOTAL COST OF SALES 15,501 25.5% 186,015 25.5%
Gross Profit 45,288 74.5% 543,455 74.5%
Payroll:
Salaries & Wages 20,816 34.2% 249,793 34.2%
Employee Benefits 3,581 5.9% 42,969 5.9%
TOTAL PAYROLL 24,397 40.1% 292,762 40.1%
PRIME COST 39,898 65.6% 478,777 65.6%
Other Controllable Expenses:
Direct Operating Expenses 2,050 3.4% 24,600 3.4%
Music & Entertainment 65 0.1% 780 0.1%
Marketing 3,750 6.2% 45,000 6.2%
Utilities 2,100 3.5% 25,200 3.5%
General & Administrative Expenses 3,113 5.1% 37,354 5.1%
Repairs & Maintenance 500 0.8% 6,000 0.8%
TOTAL OTHER CONTROLLABLE EXP. 11,578 19.0% 138,934 19.0%
CONTROLLABLE PROFIT 9,313 15.3% 111,759 15.3%
Occupancy Costs & Depreciation
Occupancy Costs 7,900 13.0% 94,800 13.0%
Depreciation & Amortization 1,430 2.4% 17,157 2.4%

Other (Income) Expenses


Other (Income) 0 0.0% 0 0.0%
Interest Expense 646 1.1% 7,754 1.1%
Other Expense 200 0.3% 2,400 0.3%
NET INCOME BEFORE INCOME TAXES ($863) (1.4%) ($10,352) (1.4%)
ADD BACK:
Depreciation & Amortization 1,430 2.4% 17,157 2.4%
DEDUCT:
Loan Principal Payments (567) (0.9%) (6,805) (0.9%)
CASH FLOW BEFORE INCOME TAXES $ 0 0.0% $ 0 0.0%

BREAK-EVEN SALES
Week $14,028
Month $60,789
Year $729,470

Worksheet: Break-Even P&L Summary