what is pete peterson’s? “the spot that offers multiple experiences”
TRANSCRIPT
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What is Pete Peterson’s?
“The spot that offers multiple experiences”
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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
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Product Offerings
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Product Offerings
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Location
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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
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Capital and Financial Budgets
Three investors provide $90,000 for 27.5%
equity
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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
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Break-even Analysis
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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
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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
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Feasibility
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Questions?
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Marketing: Promotion
WORD OF
MOUTH
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Organizational Structure
Head Manager
Cooks ServersBar
Supervisor
Bartender
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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
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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
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Average Purchase Price
Calculated Average = $19.75Set Average Price = $17.00
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Critical Factors
Number of Customers
Average Purchase per Customer
Potash Mining Industry
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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
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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