Case Study: Papa Geo's Restaurant
The project that will embark on is the opening of a store that offers a wide variety and affordable food options for customers without sacrificing the taste, aroma and food presentation of every meal. This store will be called Papa Geo’s Restaurant and will include the lease of a store space in Southeast Calgary Alberta which is the ideal location. Not only will there cooked meals being offered but there will also be shipped perishable food package from different part of the world. Papa Geo’s Restaurant has a variety of food like rice, pasta, burger, and many more. The restaurant will offer about 20 sit where our customer will have a pleasant and gracious atmosphere and they will enjoy our service to the fullest.
The restaurant will start
as a small business, and we have done estimation on how much it will cost for the setup of the business. And we have ask for a loan from my bank (Royal bank of Canada) and we are happy they have approve the loan and we are set up for the building and setting all the necessary things that need to be in place. The company’s assets are enough to run the business continuously and without any contingency plan for future. Due to the limited competition, company is in profit to attract more customers.
Have a planned a better environment for my customer where they will have a good meal. My restaurant will have 5- years planning horizon so as not be uncertainty for us in the nearest future. Have made a good plan for the building of the restaurant and with the help of the loan from bank the upfront of the restaurant is in good hands, and I know my restaurant will be one of the best restaurants in the city of Calgary.
Briefly introduce the sales forecast section.
2.1 Sales Forecast
The sales of Papa Geo Restaurant are taken from the sales budget prepared (in week 6). These sales are expected to rise every year because of the estimated cost to be incurred every year and due to the starting of the business, these cost are more in the first year but as the operations continue the costs will diminish which will ultimately lead to increasing sales in further years.
Year 1 Year 2 Year 3 Year 4 Year 5
Sales $2,047,500 $2,070,000 $2,092,500 $2,115,000 $2,137,500
2.2 Methods and Assumptions
To calculate the sales for the first five years, I used regression analysis to calculate the sales. First of all the estimate of first years sales was made using research on the internet about the basic costs, units that can be produced and so on. Afterwards, using regression analysis, sales for the first five years were worked out easily.
The restaurant will start
as a small business, and we have done estimation on how much it will cost for the setup of the business. And we have ask for a loan from my bank (Royal bank of Canada) and we are happy they have approve the loan and we are set up for the building and setting all the necessary things that need to be in place. The company’s assets are enough to run the business continuously and without any contingency plan for future. Due to the limited competition, company is in profit to attract more customers.
Have a planned a better environment for my customer where they will have a good meal. My restaurant will have 5- years planning horizon so as not be uncertainty for us in the nearest future. Have made a good plan for the building of the restaurant and with the help of the loan from bank the upfront of the restaurant is in good hands, and I know my restaurant will be one of the best restaurants in the city of Calgary.
Briefly introduce the sales forecast section.
2.1 Sales Forecast
The sales of Papa Geo Restaurant are taken from the sales budget prepared (in week 6). These sales are expected to rise every year because of the estimated cost to be incurred every year and due to the starting of the business, these cost are more in the first year but as the operations continue the costs will diminish which will ultimately lead to increasing sales in further years.
Year 1 Year 2 Year 3 Year 4 Year 5
Sales $2,047,500 $2,070,000 $2,092,500 $2,115,000 $2,137,500
2.2 Methods and Assumptions
To calculate the sales for the first five years, I used regression analysis to calculate the sales. First of all the estimate of first years sales was made using research on the internet about the basic costs, units that can be produced and so on. Afterwards, using regression analysis, sales for the first five years were worked out easily.