Financial Modeling for Restaurants

Creating detailed budgets and accurate financial projections is essential to the development of a strong business model. AllDay assists with aligning these projections with the overall conceptual vision for your operation.

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Expert Hospitality Market and Finance Knowledge

Developing realistic and achievable revenue projections is critical. From estimating sales volumes to zeroing in on your average checks and daily turns, these forecasts will be the basis for your businesses economics.

Calculating prime operating costs such as food, beverage and labor will help shape high-level financial decisions that will influence many aspects of your project, and help crystalize core business needs such as spatial requirements and occupancy budgets.

A five-year pro-forma income statement will indicate year over year growth and inform what net income will be available for distribution to owners, investors and other shareholders. This will assist in determining how to structure your raise, and how soon you can pay back investments in your business.

An occupancy budget takes into consideration your full occupancy costs— which include rent, real estate taxes, property liability insurance and any common area maintenance that may be charged by your landlord.  Knowing how much rent you can afford to pay is an important first step before heading out to view space with a broker.

Detailed payroll budgeting will help you asses one of your most influential operating costs— labor.  As minimum wages continue to rise nationwide, this aspect of your business requires careful planning and budgeting to make sure you’re building a staffing model that fits within your business’ economic and conceptual framework.

Capital expenditures budgeting is another complex early-stage planning function that requires a keen understanding of the development process.  AllDay’s team will develop a realistic cap ex budget that aligns with both your project’s creative and financial goals.

AllDay will provide you with a workable financial model that is representative of your business, giving you the tools you need to pitch investors, select vendors, and evaluate real estate opportunities.

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Did you know that on average it takes over 80 different vendors to open a restaurant? Let us help you make the right choices the first time. Call us now for a free consultation.

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