Build the Business
You
are going to start a business in Meaford.
A restaurant
You
need to:
·
Come up with a name for the restaurant
·
Draw a logo for the restaurant
·
Plan out details about running the
restaurant
·
Come up with an advertising plan
·
You'll need to figure out how much it's
going to cost and how much of a loan you'll need.
The Goal: After 12 months in
business, you need to be making money!
Let's
get started
Part A - The Idea
Think:
What kind of restaurant is this going to be?
On
a nice piece of large paper:
1.
Come up with your restaurant name
2.
What kind of food is your restaurant going to sell?
3.
On a scale of 1 to 5, how fancy is your restaurant (1 is fast food and 5 is
very fancy)
4.
Use three separate words to describe the atmosphere and mood of your restaurant
5.
Come up with one sentence that describes your restaurant
6.
Draw your restaurant logo or sign
Part B - The Details
1. You need to rent a
location.
Circle one
Location A
- Downtown Meaford. A lot of people walk by. There is no parking lot, people
can park on the street. Large windows along the front. Enough room for 15
tables. Enough room for 30 customers.
Rent per month: $895.00
Location
B - Just outside of Meaford. Not too many people walk by. There is a parking
lot for 10 cars. The building is a basic rectangle shape with windows. Enough
room for 20 tables. Enough room for 40 customers.
Rent per month: $695.00
Location
C - On the highway outside Meaford. No sidewalk. There is parking for 50 cars.
The building is a beautiful old farmhouse. Enough room for 40 tables. Enough
room for 80 customers. The building is a bit older and needs $6000.00 in
repairs.
Rent per month: $495.00
2. You need to buy everything
to run the restaurant
Figure this all out on your note
paper. The bigger the restaurant, the more you'll need to buy.
Basic
Table: $20.00
Fancy
Table: $30.00
Basic
Chair: $4.00
Fancy
Chair: $10.00
Basic
Curtains: $500.00
Fancy
Curtains: $1000.00
Basic
Carpeting: $1000.00
Fancy
Carpeting: $1500.00
Full
Kitchen for basic food: $20 000.00
Full
Kitchen for exciting food: $40 000.00
Basic
Knife, Fork, Spoon, Plate, Cup: $2.00
Fancy
Knife, Fork, Spoon, Plate, Cup: $4.00
3. You need staff
Figure this all out on your note
paper.
Waiters
One
waiter can handle 5 tables.
Waiters:
$15.00 per hour
Dishwashers
One
dishwasher can handle 10 customers.
Dishwasher:
$10.00 per hour
Chefs
You
need to go back to part A, number 3. If you chose a rating of one for
fanciness, you need to hire one chef. If you chose two, then two chefs. If you
chose three, then three chefs, and so on.
Chef: $50.00 per hour
4. You need food and
Drink
Figure this all out on your note
paper.
Basic
Food and Drink costs $5000.00 per month. Multiply this number by the number on
your fancy scale to figure out your monthly food costs.
Ex. A fancy rating of 3: 5000 x 3 = 15 0000 (This means you spend $15 000 on food per
month)
5. Advertising
Figure this all out on your note
paper.
The
more you spend on advertising, the more people you can expect to come to your restaurant.
·
One ad in the Owen Sound Sun Times: $1000.00
·
One ad in the Meaford Express: $100.00
·
One ad in Toronto Life Magazine: $20
000.00
·
One 30-second radio ad on 92.3fm The
Dock: $500.00
·
500 flyers to be delivers to mailboxes:
$2000.00
·
Billboard on highway 10 for a month:
$1000.00
·
Your restaurant name written in Sky Writing
by the smoke from a plane: $100 000.00
·
Other creative advertising, come talk to
me about pricing.
6. Hours
Figure this all out on your note
paper.
The more you are open, the more
chance people will visit. But, it will cost you more to pay your staff.
What
days are you open?
What
hours are you open?
7. Think, think, think
Figure this all out on your note
paper AND talk it out with Elkins.
How
many customers do you expect in your restaurant each day? Why?
How
much is each customer going to buy?
Are
some days busier than others?
8. The menu
Create your menu. Make it look good.
You
need 10 foods and 5 drinks.
Each
customer will buy one food and one drink.
Figure
out the price for each food and each drink.
9. Take out a loan
You only need a loan for the first
costs to buy everything, NOT the per month costs.
Royal
Bank: Up to $100 000.00 at 2% per year.
TD
Bank: Up to $1 000 000.00 at 5%
per year.
10. Run the numbers
Ha!
This is actually a math assignment. (Go math go)
Figure out everything.
1.
How much money do you have to pay up front?
2.
How much of a loan do you need?
3.
How much money do you have to pay every month?
4.
How much money are you going to bring in from food sales?
5.
After a year, pay back the loan plus interest.
10. The result
1.
After a year, are you making any money?
2.
If not, what can you go back and change?
