global plan for pf changs
Global Business Plan
Module 16
PF Chang’s will collect all revenue through restaurant sales. This will include alcoholic beverages and food. 85% of sales revenue will derive from food sales, while the other 15% will be derived from alcoholic sales. With monetary exchange rates constant, each guest will be spending about $16 dollars per meal. Estimated sales per week per restaurant will be around US$75,000 for the first year of operation. With this number, a restaurant will make annual revenue of US$3,900,000. An initial opening of 5 restaurants across China will make the total revenue of US$19,500,000. Taxes may vary anywhere from 5%-20%.
Cash Inflow (for year 1)
Food sales – US$16,575,000
Beverage sales – US$2,925,000
Total – US$ 19,500,000
There will be around 40 front of house employees (servers, food runners, and bartenders) and about 30 kitchen employees (chefs, cooks, and prep cooks). Employees will have an average of US$5.00/hr and work an average of 50 hours per week. Weekly pay for all employees will total US$17,500 per restaurant. Food costs will average around US$11,250 per week per restaurant. Equipment and operating costs will be US$10,000 a week. Cash outflows per week per restaurant will be US$38,750.
Managers and Executive chefs will be paid an annual pay of US$50,000. There will be three managers and three executive chefs per restaurant. A total management pay per restaurant annually will be US$300,000.
Cash Outflow (for year 1)
Employees and Managers - US$6,050,000
Food Costs – US$2,295,000
Operating Costs – US$2,600,000
Total – US$10,945,000
To cover expenses such as tax, insurance, maintenance, and other fees, we will be including a cash outflow of US$1,500,000 annually for all five restaurants.
Revenue US$19,500,000
Costs US$10,945,000
Other US$1,500,000
Net Revenue US$7,055,000 (Annual for 5 restaurants)
Module 16
PF Chang’s will collect all revenue through restaurant sales. This will include alcoholic beverages and food. 85% of sales revenue will derive from food sales, while the other 15% will be derived from alcoholic sales. With monetary exchange rates constant, each guest will be spending about $16 dollars per meal. Estimated sales per week per restaurant will be around US$75,000 for the first year of operation. With this number, a restaurant will make annual revenue of US$3,900,000. An initial opening of 5 restaurants across China will make the total revenue of US$19,500,000. Taxes may vary anywhere from 5%-20%.
Cash Inflow (for year 1)
Food sales – US$16,575,000
Beverage sales – US$2,925,000
Total – US$ 19,500,000
There will be around 40 front of house employees (servers, food runners, and bartenders) and about 30 kitchen employees (chefs, cooks, and prep cooks). Employees will have an average of US$5.00/hr and work an average of 50 hours per week. Weekly pay for all employees will total US$17,500 per restaurant. Food costs will average around US$11,250 per week per restaurant. Equipment and operating costs will be US$10,000 a week. Cash outflows per week per restaurant will be US$38,750.
Managers and Executive chefs will be paid an annual pay of US$50,000. There will be three managers and three executive chefs per restaurant. A total management pay per restaurant annually will be US$300,000.
Cash Outflow (for year 1)
Employees and Managers - US$6,050,000
Food Costs – US$2,295,000
Operating Costs – US$2,600,000
Total – US$10,945,000
To cover expenses such as tax, insurance, maintenance, and other fees, we will be including a cash outflow of US$1,500,000 annually for all five restaurants.
Revenue US$19,500,000
Costs US$10,945,000
Other US$1,500,000
Net Revenue US$7,055,000 (Annual for 5 restaurants)