Quality Restaurant Business – PowerPoint Presentation

Quality Restaurant Business

FIN/419

Business name

In my case I will name my business as “Quality Restaurant Business”.I will starting my business in China which is the most populated nation in the world.Quality Restaurant will be meaning services as well as food products offered in our restaurant are of high hygiene and useful for consumers.Moreover, the name will be used since it sounds attractive to customers (Veblen, 2017).

Quality Restaurant Business is currently at a startup position whose target market is the Chinese Population. Mission: To provide quality food stuff to Chinese population. Vision: To be the best restaurant in China for provision of quality food services. Products: Quality and dietary food stuff such as poultry based dishes and Pork-based dishes.

Executive summary

Based on past studies, China has been said to have the largest demand of food products among other wellness services. Moreover, the country is recording an increase in obesity rates hence there is need to involve wellness services among other dietary measures.Such a scenario has increased a demand for diets as well as wellness services.

Description of the foreign country

Quality Restaurant Business will be targeting China’s population who are in need of healthy diets. Our products will be unique in a way that, they will be serving all emerging health needs among china population. The structure of this business will mainly constitute of an operational manager, chefs, waiters among other personnel’s (Veblen, 2017).

Business description and structure

Globally, China is the most populated nation.It has a total population of over one-billion people. Currently, China has an emerging economy indicating a fast growing middle as well as high social classes. As a result, the high class population will be willing to try out new healthy services as well as new diets (Cavusgil, 2017).

Market and Company analysis

Quality Restaurant will be using the following platforms in marketing its products: Social media marketingInternet marketingEvent marketingMass media marketing

Marketing

Sales Operational Plan

Quality Restaurant sales operational plan will constitute of selling food products in the restaurant as well as selling through online platforms (Cavusgil, 2017).The company will implement a website where customers can order food stuff at their homes. Moreover, the restaurant will have to hire enough salesmen who will be delivering services to customers within the shortest time possible.The gym services will be charged for an affordable fee for all customers.

Quality Restaurant will invest the $300,000 within the first three years as illustrated below: Marketing $20,000Leasing premises & other Eqpmnt $30,000Hiring staff $40,000General operations $50,000Expansion fund $80,000Buying gym equipment $30,000Reserve $50,000

Capital Expenditure

{5C22544A-7EE6-4342-B048-85BDC9FD1C3A}Income Statement ProjectionUS Dollars in 100sFiscal years ended on201720182019Net sales $2,000.00 $ 2,114.00 $2,209.13 Cost of sales $ 800.00 $ 816.00 $ 846.19 Gross margin $1,200.00 $ 1,298.00 $1,362.94     Expenses:   Selling, general and administrative $ 500.00 $ 547.00 $ 552.00 Depreciation $ 200.00 $ 230.00 $ 260.00 Interest – net $ 65.00 $ 70.00 $ 78.00 Total expenses $ 765.00 $ 847.00 $ 890.00     Pre-tax earnings $ 435.00 $ 451.00 $ 472.94 Income tax provision (35%) $ 152.25 $ 157.85 $ 165.53 Net earnings $ 282.75 $ 293.15 $ 307.41

Financial statements forecast (3 years)

Liquidity ratiosSince Quality Restaurant will be serving as a start-up business, the $300,000 will be representing the current assets. Making an assumption that 50% of the current assets was borrowed, current ratio will be calculated as show below:Current Ratio = Current Assets/Current Liabilities= $300,000/150,000= 2

Business health assessment

Solvency ratiosThis will constitute of debt ratio which will be calculated as shown below:Debt Ratio = Total Liabilities/Total Assets= 150,000/300,000= 0.5

Business health assessment

Asset Management RatiosThis will constitute of the total asset turnover which will be calculated as shown below:Total Asset Turnover = Net Sales/Total Assets= 200,000/300,000= 0.67

Business health assessment

Profitability ratiosProfit Margin = Net Revenues/Net Sales=28275/200,000= 12.63%

Business health assessment

Market value ratiosAssuming Quality Restaurant sold 950 common shares at rates of $40 per share to raise common equity of $38,000, EPS would be computed as illustrated below;Earnings per Share = Net Profit/Average basic common shares outstanding=28,275/950= $29.76

Business health assessment

ReferencesCavusgil, S. (2017). International Business: The New Realities. Harlow: Pearson Education Limited.Subramanyam, K. (2014). Financial statement analysis. New York, NY: McGraw-Hill.Veblen, T. (2017). The theory of business enterprise. Abingdon, Oxon: Routledge.

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