M Nagarjuna Reddy

RESTAURANT BUSINESS
A CAFÉ HOUSE AND MORE
FINANCIAL MODEL
November-19
eddy
NESS
MORE
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This financial model Template is designed to enable prospective
firms/individuals to project their financials for a ten year duration period. Given
below are the principal spreadsheets that can be used for developing the
financial model

Worksheet Description
Key Assumptions Key Revenue and Expenses Assumptions
Balance Sheet 5 year forecast
P&L Statement 5 year forecast
Cash Flow Statement 5 year forecast
Revenue Schedule Revenue Calculations
Costs Structure Operating Expenses Calculations
a. Depreciation Depreciation Schedule
b. Interest Interest and Principal Payment Schedule

Instruction to Proposal owners

Please ensure that the cells are linked
 KEY ASSUMPTIONS

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All the assumptions pertaining to the financial model needs to be highlighted clearly

Revenue Assumptions
Revenue growth year on year 28%
Tax Rate 25%

Cost Assumptions
Cosumables 35% of total revenue for first year
Cost increase year on year 15%
Debt taken at interest 15%
No loan repayment for 5 yrs

Balance Sheet Assumptions

Inventories 200000/year
Accounts payable at end of year is same as inventories kept 200000/year
 BALANCE SHEET

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Note: - Proposal owner can add sub heads in each of the main heads whereever it deemed necessary

Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 )

ASSETS
Current Assets
Cash/ Ovedraf -37,704 860,411 2,380,863 4,685,387.0 7,987,732
Accounts Receivables 0 0 0 0 0
Inventories 200,000 200,000 200,000 200,000 200,000
Other Current Assets 150,000 150,000 150,000 150,000 150,000
Total Current Assets

Gross Fixed Assets 2,150,000 1,951,285 1,752,570 1,553,855 1,368,480

Less: Depreciation 198,715 198,715 198,715 185,375 182,880
Net Fixed Assets 1,951,285 1,752,570 1,553,855 1,368,480 1,185,600
Lease Deposit 2,704,000 2,704,000 2,704,000 2,704,000 2,704,000

TOTAL ASSETS 4,967,581 5,666,981 6,988,718 9,107,867 12,227,332

LIABILITIES & SHAREHOLDERS EQUITY

CURRENT LIABILITIES
Short Term Debt - - - - -
Accounts Payable & Accrued Expenses 200,000 200,000 200,000 200,000 200,000
Other Current Liabilities - - - - -
Total Curent Liabilities
Long Term Debt 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
0
TOTAL LIABILITIES 4,200,000 4,200,000 4,200,000 4,200,000 4,200,000
Share capital 1,004,000 1,004,000 1,004,000 1,004,000 1,004,000
Reserves and Surplus -236,419 462,981 1,784,718 3,903,867 7,023,332
TOTAL EQUITY 767,581 1,466,981 2,788,718 4,907,867 8,027,332

TOTAL LIABILITIES & EQUITY 4,967,581 5,666,981 6,988,718 9,107,867 12,227,332

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 PROFIT AND LOSS STATEMENT

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Note: - Proposal owner can add sub heads in each of the main heads whereever it deemed necessary

Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 )

Total Revenue 15,494,400 18,903,168 22,308,738 26,320,771 31,058,510

Total Operating Expenses 14,932,104 17,171,920 19,747,708 22,709,864 26,116,343

Earning Before Interest, Depreciation, 562,296 1,731,248 2,561,030 3,610,907 4,942,167

Taxes and Amortization (EBITDA)
Depreciation 198,715 198,715 198,715 185,375 182,880

Earning Before Interest and Taxes (EBIT) 363,581 1,532,533 2,362,315 3,425,532 4,759,287
Interest Expense 600,000 600,000 600,000 600,000 600,000

Earning Before Taxes (EBT) -236,419 932,533 1,762,315 2,825,532 4,159,287

Tax - 233,133 440,579 706,383 1,039,822

Earning After Taxes (EAT) -236,419 699,400 1,321,737 2,119,149 3,119,465

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 CASH FLOW STATEMENT

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Note: - Proposal owner can add sub heads in each of the main heads whereever it deemed necessary

Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 )

Operating Activities
EBT (236,419) 932,533 1,762,315 2,825,532 4,159,287
Add depreciation 198,715 198,715 198,715 185,375 182,880
Add Interest 600000 600000 600000 600000 600000
Increase/Decrease of Working Capital 0 0 0 0 0
Cash flow from operating activities 562,296 1,731,248 2,561,030 3,610,907 4,942,167
Less Tax 0 259,687 384,155 541,636 741,325
Cash flow from operating activities after tax 562,296 1,471,561 2,176,876 3,069,271 4,200,842

Investing Activities
Cash flow from investing activities 0 0 0 0 0

Financing Activities
Interest Paid - 600,000 - 600,000 - 600,000 - 600,000 - 600,000

Cash flow from financing activities -600,000 -600,000 -600,000 -600,000 -600,000

Net cash flow -37,704 871,561 1,576,876 2,469,271 3,600,842

Opening Cash Balance 0 (37,704) 833,857 2,410,732 4,880,003
Cumulative Cash Balance -37,704 833,857 2,410,732 4,880,003 8,480,845
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 REVENUE SUMMARY

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Note: - Proposal owner should show complete workings of all relevant revenue streams

Year ( 1 ) Year ( 2 ) Year ( 3 )

Revenue Heads
Revenue from Restaurant Dine In (1180000/ month) 14,160,000.00 17275200.00 20384736.00
Revenue from online Delivery (Rs. 111200/ month) 1,334,400.00 1627968.00 1921002.24

Total Revenue 0 18,903,168 22,305,738

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Year ( 4 ) Year ( 5 )

24053988.48 28383706.41
2266782.64 2674803.52

26,320,771 31,058,510
 COST STRUCTURE

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Note: - Proposal owner should show complete workings of all relevant cost centres

Year ( 1 ) Year ( 2) Year ( 3 ) Year ( 4 ) Year ( 5 )

Calculation/ month
Operational Costs
Rent 75000 900000.00 1035000.00 1190250.00 1368787.50 1574105.63
Electricity 7000 84000.00 96600.00 111090.00 127753.50 146916.53
Water 56000 672000.00 772800.00 888720.00 1022028.00 1175332.20
Salary 310500 3726000.00 4284900.00 4927635.00 5666780.25 6516797.29
Employee Benefit Exp 30000 360000.00 414000.00 476100.00 547515.00 629642.25
Consumables 503720 6044640.00 6951336.00 7994036.40 9193141.86 10572113.14
Waste Management 15000 180000.00 207000.00 238050.00 273757.50 314821.13
Maintenance/ Cleaning 10000 120000.00 138000.00 158700.00 182505.00 209880.75
Promotional Expenses 25000 300000.00 345000.00 396750.00 456262.50 524701.88
Administrative Costs 25000 300000.00 345000.00 396750.00 456262.50 524701.88
Misc Exp 10000 120000.00 138000.00 158700.00 182505.00 209880.75

Total 1067220 12806640.00 14727636.00 16936781.40 19477298.61 22398893.40

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Grand Total 1173942 14087304.00 16200399.60 18630459.54 21425028.47 24638782.74
 LOAN REPAYMENT SCHEDULE

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Note: - Proposal owner should show complete workings of interest and Principal repayment of NSDC Debt, if applicable

Year ( ) Year ( ) Year ( ) Year ( ) Year ( )

NSDC Debt 4000000 4000000 4000000 4000000 4000000

Interest 600,000 600,000 600,000 600,000 600,000

Principal Repayment 0 0 0 0 0

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 DEPRECIATION

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Note: - Proposal owner should show complete workings of Depreciation details using COMPANIES ACT

Year ( 1) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 )

Assets

IT & Infrastructure 50,000 34,165 18,330 2,495 0

Depreciation 15,835 15,835 15,835 2,495 -
Accumulated Depreciation 15,835 31,670 47,505 50,000 0
Net Fixed Assets 34,165 18,330 2,495 0 0

Tools & Equipment 1,200,000 1,124,040 1,048,080 972,120 896,160

Depreciation 75960 75960 75960 75960 75960
Accumulated Depreciation 75960 151920 227880 303840 379800
Net Fixed Assets 1,124,040 1,048,080 972,120 896,160 820,200

Furniture & Fixtures 900000 793080 686160 579240 472320

Depreciation 106920 106920 106920 106920 106920
Accumulated Depreciation 106920 213840 320760 427680 534600
Net Fixed Assets 793080 686160 579240 472320 365400

Total Depreciation 198,715 198,715 198,715 185,375 182,880

Gross Fixed Assets 2,150,000 1,951,285 1,752,570 1,553,855 1,368,480

Net Fixed Assets 1,951,285 1,752,570 1,553,855 1,368,480 1,185,600
 DEPRECIATION (SLM)
Items Depreciation Rate
Equipments 6.33%
Fittings & Fixtures 11.88%
Computer 31.67%

As per Companies Act