What is Pete Peterson’s? “The spot that offers multiple experiences”

What is Pete Peterson’s?

“The spot that offers multiple experiences”

6.03

6.72

6.03

6.72

22.00

1.60

1.60

6.03

0.28

1.33

0.380.55

Floor Plan

Product Offerings

Product Offerings

Location

CompetitionInteractive

Variety of Food & Drink vs. Service/Experience

Low-Key

HighLow

Pete Petersons’s

Lagana

Jansen

Hwy 16

Plunkett

LG&CC

Wong’s

Subway

King’s

Capital and Financial Budgets

Three investors provide $90,000 for 27.5%

equity

Revenue Projections

Year 1 Year 2 Year 3 Year 4 Year 5

Number of Customers/Day

98 105 110 116 121

Number of Days/Year

360 360 360 360 360

Average Purchase/Custome

r

$17.00 $17.43 $17.86 $18.31 $18.76

Total Sales $599,760

$657,787

$707,943

$761,924

$820,020

Break-even Analysis

Owner’s Compensation

Compensation (17.5%)

Year 1 Year 2 Year 3 Year 4 Year 5

Annual Salary $45,000 $46,125 $47,278 $48,460 $49,672

Dividends - $5,981 $9,081 $12,670 $14,903

Total $45,000 $52,106 $56,359 $61,130 $64,575

Investor ReturnInvestor (27.5%)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Dividend

s

Dividends

- $9,399 $14,270 $19,910 $23,420 $25,617 $92,616

Share of Terminal

Value

$115,618

Total of Dividend

s and Terminal

Value

$139,037

Feasibility

Questions?

Marketing: Promotion

WORD OF

MOUTH

Organizational Structure

Head Manager

Cooks ServersBar

Supervisor

Bartender

Customer Projections

Sunday(11am-8pm)

Monday(11am-11pm)

Friday(11am-1am)

Saturday(11am-1am)

11am-130pm

28 20 28 38

130pm-5pm 24 14 14 26

5pm-7pm 18 26 42 40

7pm-Close 6 14 50 38

Total 76 74 134 142Average Customers/Day = 98

Average Purchase Price

Dad Steak, Potatoes, and

Vegetables ($13.25)

1 Bottle Domestic

Beer ($4.25)

$17.50

Mom Chicken, Rice, and

Vegetables ($12.50)

Water ($0.00) $12.50

2 Kids 2 Chicken Fingers and Mozzarella

Sticks ($11.50)

2 Juice ($2.50)

$14.00

Total Average

Price

$14.50

Average Purchase Price

Calculated Average = $19.75Set Average Price = $17.00

Critical Factors

Number of Customers

Average Purchase per Customer

Potash Mining Industry

Sensitivity Analysis

Number of Customers/D

ay

Average Net Income (5 years)

70 BROKE

80 BROKE

90 $30,825

98 $63,552

110 $112,642

120 $153,551

130 $194,460

Average Purchase/Custom

er

Average Net Income

(5 years)14 BROKE

15 $16,386

16 $39,969

17 $63,55218 $87,135

19 $110,717

20 $134,300

Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5Sales $599,760 $657,787 $707,943 $761,924 $820,020

COGS $204,218 $223,976 $241,055 $259,435 $279,217

Gross Profit $395,542

$433,810

$466,888

$502,489

$540,803

OperatingExpenses

$368,537 $395,790 $398,464 $403,113 $408,388

TaxableIncome

$27,005 $38,020 $68,424 $99,376 $132,415

IncomeTax

$3,511 $4,943 $8,895 $12,919 $17,214

Net Income

$23,494

$33,078

$59,529

$86,457

$115,201