Jazz’in Restaurant: Business Plan Presentation

Introduction

• Jazz’In Restaurant is a 100 seat casual-dining restaurant with live jazz music.
• It will be located at Panama City, FL, which has experienced significant growth in recent years and has a large number of visitors to its beachside.
• It will have a limited menu with appetizers, including grilled cheese plate, sea scallops, curried calamari. The entrees will include coho salmon, grilled beef and hamburgers, battered fish and chips, philly cheesesteak sandwich. The drinks section will include beers, white and red wine. Desserts include fudge brownie, vanilla cheesecake, and double chocolate cake.
• The restaurant will operate from 12:00 PM to midnight.
• Jazz’In Restaurant will stand out among restaurants in the area as it will provide a cosy environment with extra comfort and great food.

Location and Premise

• The restaurant will be located at Long Range, New Jersey.
• The premise selected for the restaurant is 2129 E 5th Street, Panama City FL 32401.
• The cost of the land is $99,900. The total cost, including building construction is $250,000, and the down payment is $50,000 (20%).
• Annual taxes of the restaurant business is estimated to be $6,000, and liability insurance is $3,600
• $150,000 is allocated for refurbishing the grounds, building structure, interior design, and kitchen as follows:
  • Grounds Refurbishment 15,000$;
  • Building Structure 30,000$;
  • Interior Design 30,000$;
  • Kitchen Installation and Fire Supression Systems 75,000$.

Calculation of PITI

Land and building cost: $250,000;

Down payment: -$50,000;

Mortgage Amount: $200,000;

Number of $1,000 units = 200;

Interest: 3.00% – 30Y Fixed (Trulia, 2020);

Table Value= 4.22;

Monthly Payment = 4.22 * 200 = $844;

Annual Taxes: $6,000;

Monthly Taxes: $6,000/12 = $500;

Annual Liability Insurance: $3,600;

Monthly Insurance: $3,600/12 = $300;

PITI: $844 + $500 + $300 = $1,644.

Start up Expenses

• The restaurant has a capacity of 100 seats.
• The layout of the floor will be to maximize seating capacity.
• It will have 24 tables of different sizes in the main dining hall.
• The total cost of acquiring dining tables is $8,400. The breakdown of their costs is given in the following:

• The restaurant will have 100 chairs for 24 tables.
• It will also have an additional 10 chairs for accommodating more people when required. These chairs could also be used as a replacement for damaged chairs.
• The cost per chair is $50. The total cost of 110 chairs is $50 x 110 = $5,500.

Estimated Revenue

The estimated revenue for the first 6 days of serving food is provided in the following:

1. Table turnover: 15;
2. Total seats = 100;
3. Occupancy rate: 50%;
4. Seat occupancy per day = 100 x 50% x 9 = 750.

Summary

• Jazz’In Restaurant will be a casual dining restaurant with live Jazz music located on the beach side of Panama City, FL.
• It will be built at a prime location in Panama City, FL, which has heavy foot traffic and dense residential areas.
• It will have a capacity of serving food to 100 people at a time.
• It will offer the best quality food made by using fresh ingredients.
• The total investment required for the restaurant is $453,950.
• The restaurant is expected to generate strong earnings.

References

Century 21 Commercial. (2020). 2120 E 5TH street, Panama City, FL 32401. Web.

Cleaves, ‎C., Hobbs, M., & ‎Noble, J. (2013). Business math (10th ed.). New York, NY: Pearson.

Trulia. (2020). Find mortgage rates in Panama City Beach, FL . Web.