Financial Projections

        Included in this document is a preliminary financial  projection based on sales and cost analyses which
are believed to be reasonable.
        Revenues for UFO Restaurant are consevatively estimated based on the steady growth of the Compan
Sales forecasts for any business are typically derived from an estimate of the potential for penetrating an
existing market. Such estimates are based on several factors, including the strength of the competition and
the quality of the products. Revenues are conservatively estimated based on the steady growth of the
Company over the next three years.

       

Year 1:                                       

Food (Fri, Sat ,Sun)
                Resturant Seating                                                         150-200(150)
                Turnover                                                                      1x's
                Avg. Sale Price  (Food, Non AlcoholicBev.)                 $9.00
                                                                                                                Total =$1,350 per day

Food (Mon-Thur)
                Resturant Seating                                                          150-200(150)
                Turnover                                                                      0.5x's
                Avg. Sale Price  (Food, Non AlcoholicBev.)                 $9.00
               

                                                                                    Total =$675 per day

                                                      Weekends = $2,700 x 104 days = $140,400
                                                      Weekends = $1,350 x 250 days = $168,750

Food
(Short-Order, 2nd floor)
                  Resturant Seating                                                         75-100(75)
                 Turnover                                                                      0.5x's
                 Avg. Sale Price (Food, Non AlcoholicBev.)                 $6.95

                                                                                       Total =$261 per day
                                                                                                    261 x 354 = $92,394
                                            Total Revenue From Food = $401,544 per yr.

        Liquor
          
Restaurant, Bar

            Restaurant
            (Fri- Sun) 75 (assuming an average of half seated for dining will consume an alcoholic bev.)
            (Mon-Thurs) 38 (same formula as above)
            Bar
            (Weekly) 750 people per week (avg. of two drinks per person)

Mon. Tues. Wed. Thur. Fri. Sat. Sun. Bar
Amount of pp 38 38   38 38 75 75  75 750
Avg. cost 3.30 3.50 3.50 3.50 3.50 3.50 3.50 7.00
133 133 133 133 262 262 262 5,250

                                                             $6,568 per wk. x 52 = $341,536 per yr.
                                                             Total Revenue From Liquor = $341,536 per yr.

           Banquet Parties
                 Avg. of 200pp per week at $25.00 per plate.
                 (includes non-alcoholic and alcoholic beverages)

                            $5,000 per wk. x 52 = $260,000 per yr.

           Video Games
                 Benson Distributors, the distributors of video game equipment, supplied us with figures of other
                 arcades/FEC's. With those numbers an average was taken of the amount per week the
                 arcades/FEC's earned per square foot ($0.15) multiplied by the approximate square footage used
                 for video games in UFO Restuarant (25,000) which gave us an amount equaling $3,750 per week.
                                                         Total Revenue From Video Games = $195,000 per yr.

                                                       Average Annual Cost of Sales Chart

Item Sales Revenue    Cost Per Sale*

    Total Cost of Sales

Food          $401,544 35% $140,540
Liquor 341,536 15% 51,230
Banquets   260,000

20%

52,000
Video Games    195,000   25% 48,750
Total $1,198,080 24% $292,520

                                                                                                                                           
                                                                    * Cost Per Sale includes cost of food, liquor, video equipment, and labor.

                         Total Gross Profit after CPS  $905,560 per year
                         Total Gross Profit after CPS  $75,463 per month

Seasonal of Monthly Revenue

July 10% below average due to Grand Opening
August 10% below average  due to Grand Opening
September 30% above average due to cumlative effects of Grand Opening
October 15% above average due to cumlative effects of Grand Opening
November 10% below average/Holiday Season
December 15% below average/Holiday Season
January Average month
February Average month
March Average month
April Average month
May   Average month
June Average month

   Year 2:

       Food (Fri, Sat ,Sun)
                Resturant Seating                                              150-200(150)
                Turnover                                                           2x's
                Avg. Sale Price (Food, Non Alcoholic Bev.)     $9.00
                                                                                                   Total =$2,700 per day

       Food (Mon-Thur)
                Resturant Seating                                              150-200(150)
                Turnover                                                           1.0x's
                Avg. Sale Price (Food, Non Alcoholic Bev.)      $9.00
                                                                                                   Total =$1,350 per day

                                                      Weekends = $2,700 x 104 days = $280,800
                                                      Weekends = $1,350 x 250 days = $337,500

      Food (Short-Order, 2nd floor)
                  Resturant Seating                                                75-100(75)
                 Turnover                                                               1.0x's
                 Avg. Sale Price (Food, Non AlcoholicBev.)           $6.95
                                                                                                     Total =$521 per day
                                                                                                     521 x 354 = $184,434
                                            Total Revenue From Food = $802,734 per yr.

       Liquor
          
Restaurant, Bar

            Restaurant
            (Fri- Sun) 225 (assuming an average of half seated for dining will consume an alcoholic bev.)
            (Mon-Thurs) 112 (same formula as above)
            Bar
            (Weekly) 3000 people per week (avg. of two drinks per person)

 

Mon. Tues. Wed. Thur. Fri. Sat. Sun. Bar
Amount of pp 112 112 112 112 225 225 225 1000
Avg. cost 3.50 3.50 3.50 3.50 3.50 3.50 3.50 7.00
392 392 392 392 787 787 787 7000

                                              $10.929 per wk. x 52 = $568,308 per yr.
                                             Total Revenue From Liquor = $568,308 per yr.

 

           Banquet Parties
                 Avg. of 600pp per week at $25.00 per plate.
                 (includes non-alcoholic and alcoholic beverages)

                            $15,000 per wk. x 52 = $780,000 per yr.
                            Total Revenue From Banquet Parties = $780,000 per yr.

           Video Games
                 In Year 2, due to the increase in volume of customers, the average amount per week was increased to ($1.10) per square foot multiplied by the approximate square footage used for video games in UFO Restaurant (25,000), which gave us an amount equaling $27,500 per week.
                             Total Revenue From Video Games = $1,430,000 per yr.

                                                       Average Annual Cost of Sales Chart

 

Item Sales Revenue    Cost Per Sale*

    Total Cost of Sales

Food          $802,734 35% $280,956
Liquor 568,308 15% 85,246
Banquets   780,000

20%

156,000
Video Games 1,430,000   25%   357,500
Total $3,581,042 25% $879,702

                                            * Cost Per Sale includes cost of food, liquor, video equipment, and labor.

                                                                       Total Gross Profit after CPS  $2,701,340 per year
                                                                       Total Gross Profit after CPS  $225,111 per month

 

Seasonlity of Monthly Revenue

 

July 20% below average due to Grand Opening
August 10% below average  due to Grand Opening
September Average month
October Average month
November 10% below average/Holiday Season
December 20% below average/Holiday Season
January Average month
February Average month
March Average month
April Average month
May   Average month
June Average month

  Year 3:

Food (Fri, Sat ,Sun)
                Resturant Seating                                                   150-200(150)
                Turnover                                                                3x's
                Avg. Sale Price (Food, Non AlcoholicBev.)           $9.00

                                                                                              Total =$4,050 per day

Food (Mon-Thur)
                Resturant Seating                                                   150-200(150)
                Turnover                                                                2x's   
                Avg. Sale Price (Food, Non AlcoholicBev.)           $9.00

                                                                                              Total =$2,700 per day

                                                      Weekends = $4,050 x 104 days = $421,200
                                                      Weekends = $2,700 x 250 days = $675,000

Food (Short-Order, 2nd floor)
                  Resturant Seating                                                  75-100(75)
                 Turnover                                                              1.5x's
                 Avg. Sale Price (Food, Non AlcoholicBev.)          $6.95

                                                                                              Total =$782 per day
                                                                                              782 x 354 = $276,828
                                                                 Total Revenue From Food = $1,373,028 per yr.

        Liquor
          
Restaurant, Bar

            Restaurant
            (Fri- Sun) 225 (assuming an average of half seated for dining will consume an alcoholic bev.)
            (Mon-Thurs) 150 (same formula as above)
            Bar
            (Weekly) 7,100 people per week (avg. of two drinks per person)

Mon. Tues. Wed. Thur. Fri. Sat. Sun. Bar
Amount of pp 150 150 150 150 225 225  225 2,000
Avg. cost 3.50 3.50 3.50 3.50 3.50 3.50 3.50 7.00
525 525 525 525 787 787 787 14,000

                                                           $18,461 per wk. x 52 = $959,972 per yr.
                                                          Total Revenue From Liquor = $959,972 per yr.

 

           Banquet Parties
                 Avg. of 1000pp per week at $25.00 per plate.
                 (includes non-alcoholic and alcoholic beverages)

                            $25,000 per wk. x 52 = $1,300,000 per yr.
                            Total Revenue From Banquet Parties = $1,300,000 per yr.

           Video Games
                In Year 3, due to the increase in volume of customers, the average amount per week was increased
                to ($2.00) multiplied by the approximate square footage used for video games in UFO Resturant
                (25,000), which gave us an amount equaling $50,000 per week.
                             Total Revenue From Video Games = $2,600,000 per yr.

                                                       Average Annual Cost of Sales Chart

 

Item Sales Revenue    Cost Per Sale*

    Total Cost of Sales

Food          $1,373,028 35% $480,560
Liquor 959,972 15% 143,995
Banquets   1,300,000

20%

260,000
Video Games 2,600,000   25% 650,000
Total $6,233,000 25% $1,534,555

                                          * Cost Per Sale includes cost of food, liquor, video equipment, and labor.

                         Total Gross Profit after CPS  $4,698,445 per year
                         Total Gross Profit after CPS  $391,537 per month

 

Seasonlity of Monthly Revenue

July 20% below average due to Grand Opening
August 10% below average  due to Grand Opening
September Average month
October Average month
November 10% below average/Holiday Season
December 20% below average/Holiday Season
January Average month
February Average month
March Average month
April Average month
May   Average month
June Average month


                    
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