Week 10 EOC: Myplans

In my not so distant future I hope to one day open a 1920’s themed restaurant that operates in Hollywood. In order to achieve this goal, I need to do a few things first. The first and primary thing is to make a name for myself in the culinary world. To do this I need to have great job that gets me in the view of people. With being a popular chef for the people, it will gain me a crowd that will be enticed to come to my restaurant. The other thing that I must accomplish is to build and find finical equity that could help give me a chance to get a loan from the bank. Once both of these things are accomplished I can start to look for a location in the area surrounding Hollywood. Once I find an area that I believe has good financial and foot traffic I will have to build the restaurant. While it is being built the menu can be tested out and messed with so that it will be profitable. Once the location is built I have planned to pay off my loan within 5 years. 

Week 9 EOC: Acquire the restaurant?

1. Some fixed cost are: insurance payments, rent/leasing money, mortgage, taxes, management salaries, and benefits payments.

2. Some variable cost will be: food cost, beverage cost, utilities, repairs and maintenance, and marketing

3. While they are both great ideas I think that Loralei’s idea of doing both increase sales and lowering cost is a superb idea.  First they need to break the breakeven point by having a high guest count to increase sales. “At the breakeven point, operational expenses are exactly equal to sales revenue. Stated in another way, when sales volume in a business equals the sum of its total fixed and variable costs, its breakeven point has been reached.” (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes].) Reducing the cost can also help, by increasing the contribution margin that will also help make a profit. “for the overall operation is defined as the dollar amount, after subtracting variable costs from total sales, that contributes to covering fixed costs and providing for a profit.” (Dopson, Lea R. Managerial Accounting for the Hospitality Industry. Wiley, 09/2008. [The Art Institutes].).