Financing and Leasing Restaurant Management
1. In drawing up a sales budget for a casual Italian restaurant, what percentage of weekly sales should be forecasted for Friday and Saturday evenings?
2. A casual restaurant with a $1-million sales volume should have how many full-time equivalent employees?
3. What labor, food, beverage, and occupancy costs should the above restaurant have? Express your answer as both a percentage of sales and as a dollar figure.
4. Aside from its value in planning, why is it essential to do a budget forecast of sales, costs, and profit?
5. Suppose that after forecasting sales and deducting expenses, you are left with 3 percent operating profit before interest charges and taxes. What would you do?
6. List, in order of priority, four sources of financing you would approach in seeking funds for your restaurant.
7. In seeking a construction loan, would you expect to have the entire amount of the loan given to you in a lump sum? Explain.
8. The procedure in seeking a loan from the Small Business Administration is fairly elaborate. What is the usual sequence for this process?
9. The recommendation is made to "stockpile your credit." What does this mean?
10. Is it possible (not probable) to start a restaurant without any cash of your own? Explain.