agec 495 college of agriculture & bioresources university of sasaktchewan café tanya gleim leah...
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![Page 1: AgEc 495 College of Agriculture & Bioresources University of Sasaktchewan Café Tanya Gleim Leah Fullerton Kyle Mackow Michael Yeager](https://reader035.vdocuments.mx/reader035/viewer/2022081518/55199ed955034648068b4b01/html5/thumbnails/1.jpg)
AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
CaféCafé
Tanya GleimTanya Gleim
Leah FullertonLeah Fullerton
Kyle MackowKyle Mackow
Michael YeagerMichael Yeager
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Café LocationCafé Location
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Site PlanSite Planz
H W Y # 5 5
………..Roses……………xxxxxxxxxxxxxx
Cafe
Deckk
Tree Row
Tree Row
Tree Row
Tree Row
Parking
Tree Row
Tree Row
Tree Ro
w
Tree Row
Tree
Tree
Entrance Sign
Split Railed Fence
Split Railed Fence
Perennial Flower Gardens
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
CaféCafé
![Page 5: AgEc 495 College of Agriculture & Bioresources University of Sasaktchewan Café Tanya Gleim Leah Fullerton Kyle Mackow Michael Yeager](https://reader035.vdocuments.mx/reader035/viewer/2022081518/55199ed955034648068b4b01/html5/thumbnails/5.jpg)
AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Operations & Human Resource Operations & Human Resource PlanPlan
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Organizational Organizational StructureStructure
Board of Advisors
Joint Managers
Cooks
Servers
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Floor PlanFloor Plan
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Hours of OperationHours of Operation
May & JuneWeekdays 11:00AM-4:00PMWeekends 11:00AM-8:00PM
July & AugustWeekly 10:00AM-9:00PM
September & OctoberWeekly 11:00AM-8:00PM
Hours of Operation
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Human Resources PlanHuman Resources Plan
Managers : $20,000 Managers : $20,000 each annuallyeach annually
Cooks : $12.00/hourCooks : $12.00/hour
Servers : Servers : $10.00/hour$10.00/hour
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Marketing PlanMarketing Plan
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Marketing MixMarketing Mix
Products and ServicesProducts and Services
PricePrice
Promotion Promotion
PlacePlace
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Target MarketsTarget Markets
TravellersTravellers
Local populationLocal population
Young familiesYoung families
School groupsSchool groups
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Positioning StatementPositioning Statement
The Cafe will provide a The Cafe will provide a wholesome and home-made wholesome and home-made dining experience. dining experience.
The Café will provide a place to The Café will provide a place to experience the tranquil country experience the tranquil country atmosphere, within the serene atmosphere, within the serene prairie landscape.prairie landscape.
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
SWOTSWOT
Strengths Weaknesses
Human Resources
- Managers are ambitious, dedicated and optimistic of the business and have previous business management experience
- Two managers to split duties and assist each other with responsibilities
- Managers are new to restaurant industry
- Managers have a lack of expertise and training in cooking and restaurant management
Physical Resources
- Building, Corn Maze & Berry Patches are already established
- Located on Highway 55
- Renovations, Landscaping & Capital Equipment
Financial Resources
- Negative CCC- No Accounts Receivable- 30 day Accounts Payable on
credit
- Seasonal profits- Profits are dependent on sales
and number of customers
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
SWOTSWOT
Opportunities Threats
Customers - Home-cooked - Country setting
- Competition in cities/towns, where customers don’t have to drive
Competition - Not many restaurants in area- Meath Park restaurant (with full
menu) currently for sale-large opportunity if it does not sell & shuts down
- Café in Albertville (14 kms from Pickin’ Patch)
- Large threat if Meath Park restaurant is sold & operational prior to café opening
Market Trends
- Healthy eating choices-no deep-fried foods-fresh fruit from the farm
- Low population in direct area - Café promotes dessert menu
items, which are higher calorie
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
The MarketThe Market
Prince Albert’s population = Prince Albert’s population = 34,14034,140
Candle Lake’s population = 792Candle Lake’s population = 792
R.M. of Garden RiverR.M. of Garden River = 633 = 633
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
CompetitionCompetition
Mapletrees Restaurant – Mapletrees Restaurant – Prince AlbertPrince Albert
Rosewood Grille – Rosewood Grille – Prince AlbertPrince Albert
Waters Edge Restaurant & Lounge Waters Edge Restaurant & Lounge – – Candle LakeCandle Lake
Candle Castle Restaurant – Candle Castle Restaurant – Candle Candle LakeLake
Rails – Rails – Meath ParkMeath Park
Country Coffee - Country Coffee - AlbertvilleAlbertville
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Sales ObjectivesSales Objectives
To gain customer loyalty by serving To gain customer loyalty by serving approximately 17,724 customers per yearapproximately 17,724 customers per year
Suppers = 44% of sales profit Suppers = 44% of sales profit
Desserts = 34% of sales profitDesserts = 34% of sales profit
Lunches = 22 % of sales profitLunches = 22 % of sales profit
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Marketing Plan BudgetMarketing Plan Budget
Highway signs (5 signs at $520) 2,600$ Chartered Accountant fee 1,500$ Lawyer Fee 2,400$ Food Safe Course 300$ Travel expenses 116$ Newspaper advertisements 1,968$ Pamphlets 1,200$ Web site 1,199$ Total Marketing Expenses 11,283$
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Financial PlanFinancial Plan
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Capital Budget Capital Budget SummarySummary
Working Capital
Accounts Recievable 1,452$ Inventories 1,398$ Accounts Payable ($25,127)
Net Working Capital ($22,277)
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Administration & Administration & General Marketing General Marketing
ExpensesExpensesAdministration Expenses
Management Salary 43,560$ Total Administration Expenses 43,560$
Marketing expensesHighway signs (5 signs at $520) 2,600$ Chartered Accountant fee 1,500$ Lawyer Fee 2,400$ Food Safe Course 300$ Travel expenses 116$ Newspaper advertisements 1,968$ Pamphlets 1,200$ Web site 1,199$ Total Marketing Expenses 11,283$
Total administration and marketing expenses 54,843$
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Manufacturing Manufacturing OverheadOverhead
Fixed and Variable Manufacturing Overhead
DepreciationBuilding @ 10% 4,437$ Computer Equipment @ 30% 375$ Office Equipment Depreciation @ 20% 386$ Restaurant Equipment @ 20% and 100% 3,152$
Total Depreciation 8,350$ Maintentance and Utilities
Repairs @ 1.5% of building cost 1,200$ Water/sewer @ $100/month 1,200$ Power @ 225/month 2,700$ Telephone @ $150/month 1,800$ Internet @ $54/month 648$ Property Taxes (18.2 Mill Rate) 1,159$ Insurance (2% of build.& equip.cost) 2,040$
Total Manufacturing Overhead 19,097$
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Cost of Goods Cost of Goods ManufacturedManufactured
Cost of Goods Manufactured
Total Direct Materials 37,157$ Total Direct Labour 49,245$ Total Manufacturing Overhead 19,097$
Total Cost of Good Manufactured 105,499$
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Cost of Goods SoldCost of Goods Sold
Cost of Goods Sold
Beginning Inventory 1,398$ Cost of Goods Manufactured 105,499$ Cost of Goods Available for Sale 106,898$ Ending Inventory -$
Cost of Goods Sold 106,898$
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Cash Conversion CycleCash Conversion Cycle
CCC = -20CCC = -20
Raw Materials (7) + Average Collection Raw Materials (7) + Average Collection Period (3) – Accounts Payable (30)Period (3) – Accounts Payable (30)
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Summary of Financial Summary of Financial ResultsResults
Year 2008 2009 2010 2011 2012Sales 176,634$ 183,770$ 191,194$ 198,919$ 206,955$ COGS 106,898$ 114,252$ 113,902$ 115,236$ 116,906$ Gross Margin 69,736$ 69,518$ 77,292$ 83,682$ 90,048$ Expenses 54,843$ 50,617$ 51,629$ 52,662$ 53,715$ Net Income Before Tax 14,893$ 18,901$ 25,663$ 31,020$ 36,333$ Income Tax 1,489$ 1,890$ 2,566$ 3,102$ 3,633$ Net Income After Tax 13,404$ 17,011$ 23,097$ 27,918$ 32,700$ Net Cash Flow to Equity 19,400$ 31,935$ 34,899$ 38,195$ 41,698$
Year 2013 2014 2015 2016 2017Sales 215,316$ 224,015$ 233,065$ 242,481$ 252,277$ COGS 118,870$ 121,095$ 123,555$ 126,232$ 129,110$ Gross Margin 96,446$ 102,920$ 109,510$ 116,249$ 123,167$ Expenses 54,789$ 55,885$ 57,003$ 58,143$ 59,306$ Net Income Before Tax 41,656$ 47,035$ 52,507$ 58,106$ 63,861$ Income Tax 4,166$ 4,703$ 5,251$ 5,811$ 6,386$ Net Income After Tax 37,491$ 42,331$ 47,256$ 52,296$ 57,475$ Net Cash Flow to Equity 45,409$ 49,335$ 53,481$ 57,854$ 62,462$
Net Present Value (NPV)Internal Rate of Return on Equity Investment
$59,06632.7%
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Sensitivity AnalysisSensitivity Analysis
Critical Value Base Value IRR = 0% Allowable % ChangeQuantity of Sales:
Dessert 8,752 7,352 (-)16%Lunch 3,842 3,227 (-)16%
Supper 5,130 4,309 (-)16%Selling Price:
Dessert 7.00$ 5.88$ (-)16%Lunch 10.00$ 8.40$ (-)16%
Supper 15.00$ 12.60$ (-)16%Direct Materials:
Groceries 33,557 59,060 (+)76%Interac 3,600 6,336 (+)76%
Wages 11.22$ 18.29$ (+)70%Salaries 40,000$ 68,000$ (+)70%
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Best & Worse Case Best & Worse Case ScenarioScenario
Variable Worst Case Base Case Best CaseNumber of Sales 16,128 17,724 19,320
Average Price 9.71$ 10.67$ 11.63$ NPV (72,668)$ 59,066$ 201,254$ IRR 2.5% 32.7% 61.5%
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Break-Even AnalysisBreak-Even Analysis
Break-Even Analysis
60.00%
70.00%
80.00%
90.00%
100.00%
110.00%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Year
Qu
an
tity
of
Sa
les
(%
Ch
an
ge
)
Base
Economic
Net Income
Cash Flow
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Financial ConclusionFinancial Conclusion
A financially viable businessA financially viable business Very strong IRRVery strong IRR $100,000 Initial Investment$100,000 Initial Investment + Net Present Value+ Net Present Value +Net Cash Flow Each Year+Net Cash Flow Each Year
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AgEc 495 College of Agriculture & AgEc 495 College of Agriculture & Bioresources University of SasaktchewanBioresources University of Sasaktchewan
Questions???Questions???