USE OF FUNDS - PREOPENING BUDGET

Research + Development

Product Development
Brand Strategy + Architecture
Brand Design Fees
Legal Fees
Product Testing + Focus Groups
Professional Fees - Tax Strategy
Professional Fees - 15 Group
R&D Contingency-Printing

$12,000.00
$9,400.00
$3,500.00
$5,000.00
$2,500.00
$700.00
$5,000.00
$1,900.00

Supply Chain & Packaging

Proprietary Recipe Development

Packaging Design and Minimum Orders

$35,000.00
$40,000.00

$40,000.00

$75,000.00
Building

Interior Build Out / Key Money

General Contractor Fee (15% of build)
Mechanical
Design Consulting Fees
Project Management Fees
Trade Permits & Drawings

$122,000.00
$18,000.00
$25,000.00
$10,980.00
$13,420.00
$5,000.00

Equipment / Supplies

Chairs / Tables
Detail Furnishings
Audio-Visual
Kitchen Equipment
Office Equipment/Furniture
Point-of-Sale System
Signs
Security System
Telephone System

$6,250.00
$2,000.00
$3,900.00
$80,000.00
$2,500.00
$10,000.00
$7,500.00
$500.00
$2,000.00

Operation Supplies

Smallwares / Glass / Kitchen Utensils

Paper Products
Linen / Kitchen Uniform
FOH Uniforms Development & Purchase
Menu Boards
Office Supplies
Misc Front of House
Misc Back of House

$7,500.00
$1,500.00
$1,000.00
$20,000.00
$5,000.00
$500.00
$500.00
$500.00

PreOpening Expenses

Management Labour
FOH Training Labour
BOH Training Labour
Professional Fees - 15 Group
Building Operations (Utilities, etc)
PreOpening "Rent"
Training Supplies - Food
Training Supplies - Materials
Pre=Opening Management Salaries
Recruitment - Advertising

$0.00
$1,417.50
$2,100.00
$20,000.00
$2,500.00
$0.00
$1,500.00
$500.00
$15,000.00
$500.00

Marketing

Media, PR & Advertising

Brand Development (Graphic/Strategy)
Website
Opening Events
Social Media Development
Miscellaneous Marketing Activities

$60,000.00
$10,000.00
$10,000.00
$10,000.00
$10,000.00
$20,000.00

Working Capital

Inventory - Food
Inventory - Alcohol
Cash on Hand / Cash Floats

$7,500.00
$5,000.00
$44,082.50

Miscellaneous Financing

Licensing Fees
Legal Costs
Rent Deposit
Utilities / Phone Deposit
Lease Broker / Agent Fees
Preopening Insurance
Letter of Credit - Landlord

$5,000.00
$17,500.00
$12,750.00
$2,000.00
$12,500.00
$1,000.00
$80,000.00

$194,400.00

$114,650.00

$36,500.00

$43,517.50

$120,000.00

$56,582.50

$130,750.00
Sub-Total
HST (Cash needed)
Grand Total
SOURCE OF FUNDS

Co-Founders
Equity Investors

$811,400.00
$97,368.00
$908,768.00
$120,000.00
$1,000,000.00
$1,120,000.00

Overage / Underage of Cash

$211,232.00

Total Post-opening Cash on Hand

$267,814.50

USE OF FUNDS - PREOPENING BUDGET for SUBSEQUENT RESTAURANT OPENINGS

Building

Interior Build Out / Key Money

General Contractor Fee (15% of build)
Mechanical
Design Consulting Fees
Project Management Fees
Trade Permits & Drawings

Equipment / Supplies

Chairs / Tables
Detail Furnishings
Audio-Visual
Kitchen Equipment
Office Equipment/Furniture
Point-of-Sale System
Signs
Security System
Telephone System

Operation Supplies

Smallwares / Glass / Kitchen Utensils

Paper Products
Linen / Kitchen Uniform
Menus
Office Supplies
Misc Front of House
Misc Back of House

PreOpening Expenses

Management Labour
FOH Training Labour
BOH Training Labour
Professional Fees - 15 Group
Building Operations (Utilities, etc)
PreOpening "Rent"
Training Supplies - Food
Training Supplies - Materials

Marketing

Media/PR Advertising
Opening Events

Working Capital

Inventory - Food
Inventory - Alcohol
Cash on Hand / Cash Floats

Miscellaneous Financing

Licensing Fees
Legal Costs
Rent Deposit
Utilities / Phone Deposit
Lease Broker / Agent Fees
Preopening Insurance

$122,000.00
$18,000.00
$25,000.00
$10,980.00
$13,420.00
$5,000.00
$194,400.00
$6,250.00
$2,000.00
$3,900.00
$65,000.00
$2,500.00
$10,000.00
$7,500.00
$500.00
$2,000.00
$99,650.00
$7,500.00
$1,500.00
$1,000.00
$1,000.00
$500.00
$500.00
$500.00
$12,500.00
$0.00
$1,417.50
$2,100.00
$20,000.00
$2,500.00
$0.00
$1,500.00
$500.00
$28,017.50
$7,500.00
$2,500.00
$10,000.00
$7,500.00
$5,000.00
$44,082.50
$56,582.50
$5,000.00
$12,000.00
$8,500.00
$2,000.00
$12,500.00
$1,000.00
$41,000.00

Sub-Total
HST (Cash needed)
Grand Total
SOURCE OF FUNDS

Re-invested Operational Cash

Equity Investors
Overage / Underage of Cash
Total Post-opening Cash on Hand

$442,150.00
$53,058.00
$495,208.00
$100,000.00
$450,000.00
$550,000.00
$54,792.00
$111,374.50

Cash Flow Forecast - Year 1

Month
Openings during Month
Total Open at Month End
Assumptions - sales per month
Food Sales
Beverage Sales
Cash Inflow
Food Sales
Beverage Sales
Total Cash Sales
Owner's Investment
Bank Loan 3-yr var. & 9%
Investor Group
Line of Credit @ 7%
Total Other Cash Inflow
(A) TOTAL CASH INFLOW
Cash Outflow
Direct Costs
Food Sales
Beverage Sales
(B) TOTAL DIRECT COSTS
General Expenses
Owners' salary
Management
Employee
Legal
Advertising and promotion
Rent
Utilities
Insurance
Bank Charges
Printing and Stationary
Telephone & Internet
Alarm System
Uniforms
Guest Supplies
Laundry and Drycleaning
Cleaning Supplies
Subscriptions & Memberships
Training
Professional Fees
Garbage & Related Disposal
Credit Card and POS Licencing Fees
Licencing Costs
(C) TOTAL GENERAL EXPENSES
Other disbursements
Non-Debt Start-up Costs
Start-up Costs from Loan & Debt (not investors)
Income Tax
Bank Loan - Interest Payment
Bank Loan - Principle Payment
Investor Dividends
(D) TOTAL OTHER DISBURSEMENTS
(E) TOTAL CASH OUTFLOW (B+C+D)
(F) NET CASHFLOW (A-E)
(G) CASH FROM PREVIOUS PERIOD
(J) CUMULATIVE CASHFLOW (F+G)

Jan
1
1

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Year Total

18,550
9,610

26,890
13,400

35,980
17,895

45,080
22,215

52,955
26,615

52,645
26,380

56,690
28,840

60,335
31,515

56,320
29,460

58,355
30,285

58,170
30,430

55,390
28,920

26,890
13,400
40,290

35,980
17,895
53,875

45,080
22,215
67,295

52,955
26,615
79,570

52,645
26,380
79,025

56,690
28,840
85,530

60,335
31,515
91,850

56,320
29,460
85,780

58,355
30,285
88,640

58,170
30,430
88,600

55,390
28,920
84,310

1,000,000

18,550
9,610
28,160
-

200,000

150,000

100,000

1,120,000
$1,120,000

0
$28,160

0
$40,290

0
$53,875

0
$67,295

0
$79,570

0
$79,025

0
$85,530

0
$91,850

0
$85,780

200,000
$288,640

150,000
$238,600

100,000
$184,310

6,196
2,883
$9,079

8,981
4,020
$13,001

12,017
5,369
$17,386

15,057
6,665
$21,721

17,687
7,985
$25,671

17,583
7,914
$25,497

18,934
8,652
$27,586

20,152
9,455
$29,606

18,811
8,838
$27,649

19,491
9,086
$28,576

19,429
9,129
$28,558

18,500
8,676
$27,176

192,838
88,670
281,508

2,000
3,750
14,413
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
563
282
42,811.80

2,000
3,750
13,916
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
806
403
$ 42,678.50

2,000
3,750
15,438
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,500
1,154
250
1,078
539
46,108.45

2,000
3,750
14,862
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
1,346
673
$ 44,434.65

2,000
3,750
15,548
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
1,591
796
45,489.30

2,000
3,750
14,954
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,500
1,154
250
1,581
790
46,378.95

2,000
3,750
15,491
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
1,711
855
45,610.90

2,000
3,750
15,583
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
1,837
919
45,892.90

2,000
3,750
15,095
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,500
1,154
250
1,716
858
46,722.40

2,000
3,750
15,535
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
1,773
886
45,748.20

2,000
3,750
15,099
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,154
250
1,772
886
45,311.40

2,000
3,750
14,686
500
3,000
12,000
1,200
400
250
250
250
50
250
1,500
200
500
50
1,500
1,154
250
1,686
843
46,269.10

24,000
45,000
180,621
6,000
36,000
144,000
14,400
4,800
3,000
3,000
3,000
600
3,000
18,000
2,400
6,000
600
6,000
13,848
3,000
17,459
8,729
543,456.55

Avg $
1.00
1.00
120,000

Margin
33%
30%

852,186
-

$852,186
$852,186

$51,891

$55,680

$63,494

$66,156

$71,161

$71,876

$73,197

$267,815

($23,731)

($15,390)

($9,619)

$1,139

$8,409

$7,149

$0

$267,815

$244,084

$228,694

$219,075

$220,214

$267,815

$244,084

$228,694

$219,075

$220,214

$228,623

577,360
295,565
0
577,360
295,565
872,925
0
0
450,000
0
450,000
1,322,925.00

165,069

165,069

165,069

$75,499

$74,371

165,069
$239,394

165,069
$238,939

165,069
$238,515

$12,333

$16,351

$11,409

$49,246

$228,623

$235,772

$248,105

$264,455

$275,864

$325,110

$324,772

$267,815

$235,772

$248,105

$264,455

$275,864

$325,110

$324,772

$270,567

$270,567

($339)

($54,205)

495,208
$0
$0
$0
$0
495,208
$1,320,172
$2,753

Cash Flow Forecast - Year 2

Month
Openings during Month
Total Open at Month End
Assumptions - sales per month
Food Sales
Beverage Sales
Cash Inflow
Food Sales
Beverage Sales
Total Cash Sales
Owner's Investment
Bank Loan 3-yr var. & 9%
Investor Group
Line of Credit @ 7%
Total Other Cash Inflow
(A) TOTAL CASH INFLOW
Cash Outflow
Direct Costs
Food Sales
Beverage Sales
(B) TOTAL DIRECT COSTS
General Expenses
Owners' salary
Management
Employee
Legal
Advertising and promotion
Rent
Utilities
Insurance
Bank Charges
Printing and Stationary
Telephone & Internet
Alarm System
Uniforms
Guest Supplies
Laundry and Drycleaning
Cleaning Supplies
Subscriptions & Memberships
Training
Miscellaneous
Garbage & Related Disposal
Credit Card and POS Licencing Fees
Licencing Costs
(C) TOTAL GENERAL EXPENSES
Other disbursements
Non-Debt Start-up Costs
Start-up Costs from Loan & Debt (not investors)
Income Tax
Bank Loan - Interest Payment
Bank Loan - Principle Payment
Investor Dividends
(D) TOTAL OTHER DISBURSEMENTS
(E) TOTAL CASH OUTFLOW (B+C+D)

Jan
1
2

Feb

Mar

Apr

May
1
3

Jun

Jul

Aug

Sep
1
4

Oct

Nov

Dec

Year Total
4

55,915
29,115

69,370
35,690

85,730
43,865

94,135
48,970

139,488
73,374

145,750
82,115

153,365
88,900

161,890
91,640

205,264
110,600

207,164
110,990

203,559
107,230

206,359
108,890

55,915
29,115
85,030
-

69,370
35,690
105,060

85,730
43,865
129,595

94,135
48,970
143,105

139,488
73,374
212,862

145,750
82,115
227,865

153,365
88,900
242,265

161,890
91,640
253,530

205,264
110,600
315,864

207,164
110,990
318,154

203,559
107,230
310,789

206,359
108,890
315,249

200,000

200,000

150,000

150,000

100,000

100,000

Avg $
1.00
1.00

Margin
33%
30%

1,727,989
931,380
0
$1,727,989
$931,380
$2,659,369

0
$85,030

0
$105,060

200,000
$329,595

200,000
$343,105

0
$212,862

0
$227,865

150,000
$392,265

150,000
$403,530

0
$315,864

0
$318,154

100,000
$410,789

100,000
$415,249

$0
$900,000
$0
$900,000
$3,559,369

18,676
8,735
$27,410

23,170
10,707
$33,877

28,634
13,160
$41,793

31,441
14,691
$46,132

46,589
22,012
$68,601

48,681
24,635
$73,315

51,224
26,670
$77,894

54,071
27,492
$81,563

68,092
33,012
$101,104

86,194
41,178
$127,373

67,522
32,001
$99,524

68,458
32,499
$100,957

$592,751
$286,792
$879,543

4,000
7,500
24,904
1,000
2,250
20,500
2,100
750
400
450
500
100
400
2,700
400
1,000
150
2,308
500
1,701
850
$74,462

4,000
7,500
24,649
1,000
2,250
20,500
2,100
750
400
450
500
100
400
2,700
400
1,000
150
1,500
2,308
500
2,101
1,051
$76,309

4,000
7,500
29,353
1,000
2,250
20,500
2,100
750
400
450
500
100
400
2,700
400
1,000
150
2,308
500
2,592
1,296
$80,248

4,000
7,500
28,634
1,000
2,250
20,500
2,100
750
400
450
500
100
400
2,700
400
1,000
150
1,000
2,308
500
2,862
1,431
$80,935

6,000
11,250
46,837
1,500
3,000
29,500
3,300
1,150
550
650
750
150
400
3,700
600
1,200
400
1,500
3,058
750
4,257
2,129
$122,630

6,000
11,250
50,059
1,500
3,000
29,500
3,300
1,150
550
650
750
150
400
3,700
600
1,200
400
3,058
750
4,557
2,279
$124,803

6,000
11,250
48,452
1,500
3,000
29,500
3,300
1,150
550
650
750
150
400
3,700
600
1,200
400
3,058
750
4,845
2,423
$123,628

6,000
11,250
48,895
1,500
3,000
29,500
3,300
1,150
550
650
750
150
1,400
3,700
600
1,200
400
4,000
3,058
750
5,071
2,535
$129,409

8,000
15,000
63,781
1,900
3,850
41,000
4,500
1,550
700
858
1,000
200
692
4,492
800
1,400
650
375
3,808
1,000
6,317
3,969
$165,843

8,000
15,000
64,684
1,900
3,850
41,000
4,500
1,550
700
858
1,000
200
692
4,492
800
1,400
650
375
3,808
1,000
6,363
3,992
$166,815

8,000
15,000
62,529
1,900
3,850
41,000
4,500
1,550
700
958
1,000
200
692
4,492
800
1,400
650
1,875
3,808
1,000
6,216
3,919
$166,039

8,000
15,000
62,191
1,900
3,850
41,000
4,500
1,550
700
958
1,000
200
1,692
4,492
800
1,400
650
2,875
3,808
1,000
6,305
3,963
$167,834

$72,000
$135,000
$554,969
$17,600
$36,400
$364,000
$39,600
$13,800
$6,600
$8,033
$9,000
$1,800
$7,967
$43,567
$7,200
$14,400
$4,800
$13,500
$36,696
$9,000
$53,187
$29,837
$1,478,956

165,069

165,069

165,069

165,069

165,069

165,069

165,069

165,069

52,048

$101,873

$0
$110,185

$217,117
$339,159

$165,069
$292,136

$165,069
$356,301

$0
$198,118

$165,069
$366,591

$165,069
$376,042

$165,069
$432,016

$0
$294,187

$165,069
$430,632

$165,069
$433,861

$1,320,555
$0
$52,048
$0
$0
$0
$1,372,603
$3,731,101

$50,969

($143,439)

$29,747

$25,674

$27,488

($116,152)

$23,967

($19,842)

(F) NET CASHFLOW (A-E)

($16,843)

($5,125)

($9,564)

($18,611)

($171,732)

(G) CASH FROM PREVIOUS PERIOD

$270,567

$253,725

$248,599

$239,035

$290,004

$146,565

$176,312

$201,985

$229,474

$113,322

$137,289

$117,446

$270,567

(J) CUMULATIVE CASHFLOW (F+G)

$253,725

$248,599

$239,035

$290,004

$146,565

$176,312

$201,985

$229,474

$113,322

$137,289

$117,446

$98,835

$98,835

Projected Income Statement

Year 1
Revenues
Sales
Food Sales
Beverage Sales
(A) Total Sales
Cost of Goods Sold
Food Sales
Beverage Sales
(F) Cost of Goods Sold
(G) GROSS MARGIN (A-F)
Expenses
General Expenses
Owners' salary
Management
Employee
Legal
Advertising and promotion
Rent
Utilities
Insurance
Bank Charges
Printing and Stationary
Telephone & Internet
Alarm System
Uniforms
Guest Supplies
Laundry and Drycleaning
Cleaning Supplies
Subscriptions & Memberships
Training
Professional Fees
Garbage & Related Disposal
Credit Card and POS Licencing Fees
Licencing Costs
(I) TOTAL GENERAL EXPENSES
Other disbursements
Start up Costs from loan & debt (not incl investors' group
investment) - shown below in loan repayment lines

Business Loan - Payments

(J) TOTAL OTHER EXPENSES
(K) TOTAL EXPENSES

577,360
295,565
$872,925

1,727,989
931,380
$2,659,369

192,838
88,670
281,508
$591,417

592,751
286,792
879,543
$1,779,826

24,000
45,000
180,621
6,000
36,000
144,000
14,400
4,800
3,000
3,000
3,000
600
3,000
18,000
2,400
6,000
600
6,000
13,848
3,000
17,459
8,729
$543,457

72,000
135,000
554,969
17,600
36,400
364,000
39,600
13,800
6,600
8,033
9,000
1,800
7,967
43,567
7,200
14,400
4,800
13,500
36,696
9,000
53,187
29,837
$1,478,956

0
$0
$543,457

NET PROFIT BEFORE TAX (G-K)

Income Tax
NET PROFIT AFTER TAX
less: Dividends
RETAINED EARNINGS

Year 2

0
$0
$1,478,956

$47,961
($6,475)
$41,486
$0

$300,871
($40,618)
$260,253
$0

$41,486

$260,253