Papa Geo's Resturant. Busn278

Papa Geo’s – Restaurant

Budget Proposal

For

{5 Years}

Completed by Jaclyn Mahon

BUSN-278

November 2014

Professor Timothy Kinsella

DeVry University

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Table of Contents

Section | Title | Subsection | Title | Page Number |

1.0 | Executive summary | | | 3 |

2.0 | Sales Forecast | | | |

| | 2.1 | Sales Forecast | 4 |

| | 2.2 | Methods and Assumptions | 5 |

3.0 | Capital Expenditure Budget | | | 7 |

4.0 | Investment Analysis | | | |

| | 4.1 | Cash flows | 10 |

| | 4.2 | NPV Analysis | 12 |

| | 4.3 | Rate of Return Calculations | 12 |

| | 4.4 | Payback Period Calculations | 13 |

5.0 | Pro Forma Financial Statements | | | |

| | 5.1 | Pro Forma Income Statement | 14 |

| | 5.2 | Pro-Forma Cash flow Statement | 15 |

| | 5.3 | Pro-Forma Balance Sheets | 17 |

6.0 | Works Cited | | | 18 |

7.0 | Appendices | | | |

| | 7.1 | Appendix 1: Pro Forma Income statement Breakdown | 19 |

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* 1.0 Executive Summary

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* This budget proposal is for the starting and running of a single location, sit-down Italian restaurant named Papa Geo’s. The restaurant would be located in Philadelphia, Pennsylvania and would majorly target middle to lower-middle class families with children, as well as adults and seniors, thus making it a friendly and family place. The major product and service provided by the restaurant would be Italian food served buffet style with an all-you-can-eat format with a lot of variety including a salad bar, pizza, several different types of pasta with three or four types of sauces, soup, desserts, and a self-serve soda bar. There would also be a gaming area within the restaurant with gaming machines installed which would be of interest to children. The business would provide wholesome and fresh food, in a simple format, with very good prices and is located in a densely...