Bachelor of Business Administration Thesis

Hospitality Management

Business Plan for Mộc Bistro : A gastronomic enterprise fusing Vietnamese

Culture Elements and Wabi-Sabi Aesthetics

Mentor

Nguyen Duc Tri

Group members

Ho Tran Phuong Uyen DS160183

Nguyen Thi Chau Sa DS160126

Vo Thi Thanh Thao DS150203

Tran Thi Kim Nhanh DS150138

Nguyen Thi Ngoc Han DS150152

1
ACKNOWLEDGE
We would like to express our profound appreciation to everyone who helped shape this
scholarly research for the Mộc Bistro restaurant in Danang.

First and foremost, we would like to thank Mr. Nguyen Duc Tri, our devoted instructor at the
FPT University Hospitality Management department, whose important advice and assistance
have molded our concepts and plans for Mộc Bistro. His knowledge and perception have
been invaluable to our endeavor.

We also thank Mr. Nguyen Viet Toan, the director of the Da Nang Startup Innovation Center,
for his kind counsel and assistance. His insightful criticism of our business plan has greatly
improved our comprehension of the hospitality sector and helped us to refine our approach.

We would especially want to thank our team members for their tireless efforts and steadfast
devotion in developing this business strategy. Their commitment to quality has been essential
to this project's success.

Lastly, we would like to thank FPT University and the Hospitality Management Department
for giving us the tools and chance to follow our dream of working in hospitality. We are
appreciative to the teachers, staff, and other students for their unwavering support and
encouragement, and we are happy to be a part of this lively and dynamic learning
environment.

I want to thank everyone for their important contributions to our effort. We can't wait to open
Mộc Bistro and realise our dream of providing Danang city with a remarkable eating
experience.

2
ABSTRACT
At Mộc Bistro, locally produced, seasonal foods are expertly blended with a hint of Japanese
influence to create an inventive culinary sanctuary that embodies Vietnamese nostalgia. Our
main objective is to provide them an experience that is both aesthetically pleasing and
gastronomically unforgettable—a "gustatory memoir." Rooted in bridging the gap between
our guests and the inherent Wabi Sabi spirit woven into everyday Vietnamese life, Mộc
Bistro operates on core values that shape consumer attitudes. Our commitment lies in the
fusion of Vietnamese and Japanese flavours, realised through a dedication to culinary
excellence that marries inventive techniques with time-honoured traditions. Within our
welcoming ambiance, imbued with warmth and nostalgia, guests are invited on a cherished
journey through our cultural heritage and the soulful elegance inspired by Japanese traditions.
As trailblazers in transnational dining, Mộc Bistro sets industry standards, continually
pushing boundaries to redefine and elevate the artistry of unconventional cuisine, aspiring to
craft a unique and memorable culinary experience that transcends borders.

3
ACKNOWLEDGE..............................................................................................................................................
ABSTRACT.........................................................................................................................................................
CHAPTER 4: FINANCIAL ANALYSIS..........................................................................................................
1. Startup expenses and Capitalization...........................................................................................................
1.1.Initial Cost...........................................................................................................................................
1.2. Capital structure.................................................................................................................................
1.2.1 Source of capital.........................................................................................................................
1.2.2. Use of capital............................................................................................................................
2. Revenue streams.........................................................................................................................................
2.1. Forecast first year revenue.................................................................................................................
2.2. Revenue forecast in 5 years...............................................................................................................
3. Operating expense.......................................................................................................................................
3.1. Fixed Cost..........................................................................................................................................
3.2. Contra Asset.......................................................................................................................................
3.3. Variable Cost......................................................................................................................................
3.4. Wage Cost..........................................................................................................................................
3.5. Total operating expense.....................................................................................................................
4. Statement analysis.......................................................................................................................................
4.1. Income statement - Most likely scenario...........................................................................................
4.2. Balance sheet & Cash Flow...............................................................................................................
4.3. Capital budgeting...............................................................................................................................
4.3.1. NPV, IRR, and Discounted payback period analysis................................................................
4.3.2. ROA, ROE, Net Profit Margin..................................................................................................
Reference.............................................................................................................................................................

4
CHAPTER 4: FINANCIAL ANALYSIS

1. Startup expenses and Capitalization

1.1.Initial Cost

Mộc Bistro 's initial investment costs include construction and renovation, the purchase of
necessary equipment for various departments, and legal procedure costs (Sebastien Rankin,
2021). The estimated initial investment amount is 2,898,567,400 VND within 6 months in the
base year. Each investment category is summarized in the table below:
With details:Financial Analysis_Mộc Bistro

Initial investment costs

Name Price

Constructive Renovation 1,898,950,000

Constructive Renovation 1,778,950,000

Utilities Renovation and maintenance 120,000,000

Legal procedures 20,960,000

Business registration license and related documents 1,500,000

Business registration license 100,000

Dossier of certification of business establishments eligible for fire

prevention and fighting and related expenses 8,000,000

Dossier for certification of qualified establishments for food safety and

hygiene and related costs 10,000,000

Trademark Registration Certificate 1,360,000

Restaurant Equipment 698,397,900

Equipment installation 279,874,200

Service area equipment 208,556,700

Bar equipment 149,121,000

Kitchen utensils 60,846,000

Furniture 280,259,500

5
Grand total 2,898,567,400

Initial investment costs of Mộc Bistro

1.2. Capital structure

Capital structure

Source Amount (VNĐ) Percentages

Ho Tran Phuong Uyen 450,000,000 đ 12.86%

Vo Thi Thanh Thao 450,000,000 đ 12.86%

Nguyen Thi Chau Sa 450,000,000 đ 12.86%

Nguyen Thi Ngoc Han 450,000,000 đ 12.86%

Tran Thi Kim Nhanh 500,000,000 đ 14.29%

TOTAL 2,300,000,000 đ 65.71%

Borrowed Capital

Loan amount(VND): 1,200,000,000 đ 34.29%

Interest rate (%): 6%

Loan term (year) 5 years

TOTAL
CAPITALIZATION 3,500,000,000 đ

Capital structure

1.2.1 Source of capital

Mộc Bistro ’s capital structure is a strategic blend of equity and borrowed capital, which
provides flexibility in managing the capital structure and lower overall tax liability for the
entity, enhancing its after-tax returns. The equity component is derived from the contributions
of five individuals, each with varying ownership percentages. Ho Tran Phuong Uyen, Vo Thi
Thanh Thao, Nguyen Thi Chau Sa, and Nguyen Thi Ngoc Han each hold a 12.86% of the
capital, while Tran Thi Kim Nhanh possesses a 14.29% ownership. Collectively, this equity
infusion amounts to 2,300,000,000 VND, constituting 65.71% of the total capitalization.

6
In parallel, Mộc Bistro has leveraged its financial position by securing a loan of
1,200,000,000 VND from AgriBank. This debt represents 34.29% of the total capitalization,
carrying an interest rate of 6% and maturing over a 5-year period. All the owner's capital and
borrowed funds will be fully contributed and completed within the base year (1 year prior to
the opening date).

The integration of both equity and debt in the capital mix reflects a calculated balance,
influencing the company’s risk profile, financial stability, and overall cost of capital. The
distribution of equity underscores a long-term commitment from individual stakeholders,
aligning their interests with the success of Mộc Bistro . .In exchange for taking on the related
risks, equity investors might get ownership benefits including dividends and possible capital
growth. However, debt holders—represented by Borrowed Capital—have a more definite
claim on the cash flows of the business, as they are entitled to principle repayment as well as
interest payments.

1.2.2. Use of capital

Use capital for the base year

Name Amount (VNĐ) Percentage

Initial costs 2,898,567,400 82.82%

Pre-opening marketing 216,907,118 6.20%

Remaining of capital 384,525,482 10.99%

Total of capital 3,500,000,000 100%

Use capital for the base year

A sizable amount of Mộc Bistro's startup funding will go toward the planning phase. To be
more precise, 2,898,567,400 VND, or 82.82% of Mộc Bistro's entire starting capital, will go
into building and renovating, buying the required tools and equipment, and taking care of
legal documents in compliance with state laws. Furthermore, a total of 216,907,118 VND, or
6.20% of the capital, would be used for marketing and promotional efforts during the three
months preceding the restaurant's inauguration. The remaining sum will be set aside for
various costs throughout the first operational year, such buying raw materials and paying for
unforeseen bills.

7
2. Revenue streams

Mộc Bistro wants to create income projections for a range of situations so that we can be
ready for everything and make wise choices. Based on projected revenue split into two
primary areas, Mộc Bistro delivers an estimated revenue for the first year: food and beverage
services. A summary of the three scenarios—Optimistic, Most Likely to Occur, and
Pessimistic—is given in the section that follows. Projected food revenue is expected to
constitute the majority of total revenue, accounting for 70%. Conversely, the anticipated
beverage services are expected to contribute to 30% of the total revenue.
With details:Financial Analysis_Mộc Bistro

2.1. Forecast first year revenue

Average number of customers visiting the restaurant daily - Optimistic

Number of average
guests Sales per guest Average daily revenue

250,000

Food 175,000 21,000,000

Beverage 120 75,000 9,000,000

Average number of customers visiting the restaurant daily - Optimistic

In the optimistic scenario, it is estimated that the average daily number of customers
visiting the restaurant is 120, with an anticipated revenue per customer of 250,000 VND,
covering both food and drinks. The daily revenue is expected to be 30,000,000 VND.

Revenue in the first year 2024 - Optimistic

Type Jan Feb March April May June

Food 651,000,000 588,000,000 651,000,000 630,000,000 651,000,000 630,000,000

Drink 279,000,000 252,000,000 279,000,000 270,000,000 279,000,000 270,000,000

Total 930,000,000 840,000,000 930,000,000 900,000,000 930,000,000 900,000,000

Type Jul Aug Sep Oct Nov Dec

Food 651,000,000 651,000,000 630,000,000 651,000,000 630,000,000 651,000,000

8
Drink 279,000,000 279,000,000 270,000,000 279,000,000 270,000,000 279,000,000

Total 930,000,000 930,000,000 900,000,000 930,000,000 900,000,000 930,000,000

Revenue in 1st year (2024) – Optimistic

This represents Mộc Bistro 's optimistic scenario, where favourable conditions or strategic
initiatives could result in higher-than-expected sales. The projected potential revenue for
this scenario is 10,950,000,000 VND (2024). Achieving this level of success will
necessitate a well-executed marketing campaign, a diverse menu offering, positive
economic trends, or other opportunities that can stimulate customer demand.

Average number of customers visiting the restaurant daily - Most likely

Number of average Average daily

guests Sales per guest revenue

250,000

Food 175,000 15,925,000

Beverage 91 75,000 6,825,000

Average number of customers visiting the restaurant daily - Most likely

In the most likely scenario, it is estimated that the average number of customers visiting
the restaurant daily is 91, with an anticipated revenue per customer of 250,000 VND,
inclusive of both food and drinks. This results in an expected daily revenue of 22,750,000
VND.

Revenue in the first year 2024 - Most likely

Type Jan Feb March April May June

Food 493,675,000 445,900,000 493,675,000 477,750,000 493,675,000 477,750,000

Drink 211,575,000 191,100,000 211,575,000 204,750,000 211,575,000 204,750,000

Total 705,250,000 637,000,000 705,250,000 682,500,000 705,250,000 682,500,000

Type Jul Aug Sep Oct Nov Dec

9
Food 493,675,000 493,675,000 477,750,000 493,675,000 477,750,000 493,675,000

Drink 211,575,000 211,575,000 204,750,000 211,575,000 204,750,000 211,575,000

Total 705,250,000 705,250,000 682,500,000 705,250,000 682,500,000 705,250,000

Revenue in 1st year (2024) – Most likely

The most likely scenario serves as the foundation for operational planning and resource
allocation, allowing Mộc Bistro to set realistic expectations. In this case, the estimated
revenue for the restaurant is projected to reach 8,303,750,000 VND in 2024.

Average number of customers visiting the restaurant daily - Pessimistic

Number of average
guests Sales per guest Average daily revenue

250,000

Food 175,000 10,500,000

Beverage 60 75,000 4,500,000

Average number of customers visiting the restaurant daily - Pessimistic

In the pessimistic scenario, it is estimated that the average daily number of customers
visiting the restaurant is 60, with an expected revenue per customer of 250,000 VND,
covering both food and drinks. This results in an anticipated daily revenue of 15,000,000
VND.

Revenue in 05 years – Pessimistic

Type 2024 2025 2026 2027 2028

Food 4,599,000,000 5,058,900,000 5,564,790,000 6,121,269,000 6,733,395,900

Drink 1,971,000,000 2,168,100,000 2,384,910,000 2,623,401,000 2,885,741,100

Total 6,570,000,000 7,227,000,000 7,949,700,000 8,744,670,000 9,619,137,000

Growth
rate 10% 10% 10% 10%

Revenue in 1st year (2024) – Pessimistic

10
In a pessimistic scenario, factors such as an economic recession, increased competition, or
other adverse events could impact customer traffic. The expected revenue is approximately
5,470,000,000 VND. In response, Mộc Bistro has outlined strategies to minimize risks
and losses.

2.2. Revenue forecast in 5 years

Revenue forecast for 5 years – Optimistic

Type 2024 2025 2026 2027 2028

Food 9,198,000,000 10,117,800,000 11,129,580,000 12,242,538,000 13,466,791,800

Drink 3,942,000,000 4,336,200,000 4,769,820,000 5,246,802,000 5,771,482,200

Total 13,140,000,000 14,454,000,000 15,899,400,000 17,489,340,000 19,238,274,000

Growth
rate 10% 10% 10% 10%

Revenue forecast for 5 years – Optimistic

Revenue forecast for 5 years – Most likely

Type 2024 2025 2026 2027 2028

Food 5,812,625,000 6,393,887,500 7,033,276,250 7,736,603,875 8,510,264,263

Drink 2,491,125,000 2,740,237,500 3,014,261,250 3,315,687,375 3,647,256,113

Total 8,303,750,000 9,134,125,000 10,047,537,500 11,052,291,250 12,157,520,375

Growth
rate 10% 10% 10% 10%

Revenue forecast in 5 years – Most likely

Revenue forecast for 5 years – Pessimistic

Type 2024 2025 2026 2027 2028

Food 4,599,000,000 5,058,900,000 5,564,790,000 6,121,269,000 6,733,395,900

Drink 1,971,000,000 2,168,100,000 2,384,910,000 2,623,401,000 2,885,741,100

11
Total 6,570,000,000 7,227,000,000 7,949,700,000 8,744,670,000 9,619,137,000

Growth
rate 10% 10% 10% 10%

Revenue forecast in 5 years – Pessimistic

Based on the 1-year revenue forecast scenario, we extrapolate a 5-year revenue scenario.

In a more optimistic scenario, Mộc Bistro 's total revenue forecast for the next 5 years is
expected to reach 80,221,014,000 VND, with an average annual growth rate of 10%. This
optimistic outlook hinges on positive factors such as expanding services, introducing new
products, or increasing promotional activities to attract a larger customer base. Economic
growth, population expansion, or shifts in consumption trends may also contribute
significantly.

In the most likely scenario, the forecasted average annual revenue growth is 10%, resulting in
an estimated total revenue of VND 50,695,224,125 over the next 5 years. This scenario
assumes that Mộc Bistro will maintain its current operations, sustain a stable customer base,
and pursue reasonable expansion efforts. While it may not exhibit exceptional growth, it does
establish a reliable foundation for the restaurant's future.

In the pessimistic scenario, Mộc Bistro 's total revenue forecast for the next 5 years is
expected to be 40,110,507,000 VND, projecting a 10% increase in revenue each year. This
scenario envisions challenges for Mộc Bistro in maintaining or growing revenue, possibly
due to factors such as intense competition in the market or a decline in demand. Financial
issues, including high debt and operating costs, could reduce profits and hinder investment
for growth. Failure to promptly adapt to changing consumer trends could also negatively
impact revenue.

3. Operating expense

3.1. Fixed Cost

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Fixed expenses are accounts that do not change based on sales revenue. That is, they are cost
accounts that the business has committed to that are not required for production volume.
(StudySmarter UK,n.d.)

Fixed expense

Type of 2023 (6
expense months) 2024 2025 2026 2027 2028

Real
estate
expense 180,000,000 360,000,000 378,000,000 396,900,000 416,745,000 437,582,250

Bank
Interest 26,000,000 304,200,000 289,800,000 275,400,000 261,000,000 226,600,000

Total 180,000,000 664,200,000 667,800,000 672,300,000 677,745,000 664,182,250

05 years fixed cost – Most likely

● Real estate expense

According to market research, the Mộc Bistro location would be a rented real estate with a
price of 30,000,000 VND per month. The rental price is anticipated to increase annually, with
an annual cap not exceeding 5% compared to the previous year, as per the agreement between
Mộc Bistro and the landowner. The rent for the 6-month construction period in 2023 is
180,000,000 VND, and the expected rental price for the entire year in 2024 is 360,000,000
VND.
● Bank Interest
Mộc Bistro has a loan from Agribank with an interest rate of 6%, and the principal will
remain unchanged until 2028 when the debt is fully repaid. Therefore, the interest expenses
are considered fixed costs throughout Mộc Bistro 's business operations. The principal
amount and interest payable in the first year (2024) is 304,200,000 VND, and it is
continuously distributed over five years to manage debt repayment while maintaining
profitability.

3.2. Contra Asset

2024 2025 2026 2027 2028

2023 (startup

13
 expense)

Equipment 698,397,900 572,718,320 447,038,740 321,359,160 195,679,580 70,000,000

Furniture 280,259,500 229,807,600 179,355,700 128,903,800 78,451,900 28,000,000

Constructiv
e
Renovation 1,898,950,000 1,541,655,000 832,097,040 298,670,560 469,770,000 112,475,000

Accumulat
ed
depreciatio
n method 2,877,607,400 2,344,180,920 1,458,491,480 748,933,520 743,901,480 210,475,000

Accumul
ated
Deprecia
tion 2024 2025 2026 2027 2028

Equipment
(Use the
equipments for
5 years and
expects to sell
them for
70,000,000 vnd
after 4 years) 5 125,679,580 251,359,160 377,038,740 502,718,320 628,397,900

Furniture
(Use the
Furniture for 5
years and
expects to sell
them for
28,000,000 vnd
after 5 years) 5 50,451,900 100,903,800 151,355,700 201,807,600 252,259,500

14
 Constructive
Renovation
(Use the
Furniture for 5
years and
expects to sell
them for
112,475,000
vnd after 5
years) 5 357,295,000 714,590,000 1,071,885,000 1,429,180,000 1,786,475,000

TOTAL 533,426,480 1,066,852,960 1,600,279,440 2,133,705,920 2,667,132,400

Depreciation expense

● Depreciation
The asset's value is gradually decreased over each period using the cumulative depreciation
technique until it reaches its salvage value. The cost of capital assets is allocated through
accumulated depreciation. It is computed by dividing the asset's salvage value (less cost) by
the asset's usable life (CFI Team, 2015). We used the formula Annual Depreciation Expense
= (Cost of the Asset - Salvage Value) / Useful Life of the Asset to determine accumulated
depreciation (Dikshita Jain, 2023). Next, after having the depreciation value of the years, we
will subtract the startup asset from the previous year to know the depreciation value over the
years of equipment and furniture.

3.3. Variable Cost

The expenses that vary with changes in industrial output are known as variable costs.
Variable costs are costs that must be paid directly into the process of creating a product such
as raw materials, worker costs, packaging, production cost, etc. (StudySmarter UK,n.d.)

05 years Variable cost - Most likely

Type 2024 2025 2026 2027 2028

Food cost 1,627,535,000 1,790,288,500 1,969,317,350 2,166,249,085 2,382,873,944

Drink cost 697,151,000 767,266,500 843,993,150 928,392,465 1,021,231,712

15
Utilities 193,925,488 199,743,253 205,735,550 211,907,617 218,264,845

Marketing
and
Advertising 227,752,474 239,140,098 251,097,102 263,651,958 276,834,555

Maintenance
cost 120,000,000 126,000,000 132,300,000 138,915,000 145,860,750

Total
variable
cost 2,866,363,962 3,122,438,351 3,402,443,152 3,709,116,125 4,045,065,806

05 years variable cost - Most likely

● Ingredients cost
One of the important variable costs mentioned first is the cost of food ingredients and drinks,
with dessert calculated at 28% of total revenue. In the first year, estimate the cost of food
ingredients. Food and dessert costs are 1,627,535,000 VND, and beverage costs are
697,266,500 VND in 2024. These costs are expected to increase at different rates based on
annual revenue growth rates.
● Utilities cost
Mộc Bistro determines utility costs including: electricity, water and internet, gas. This cost is
estimated at 2,4% of revenue in the first year and the first year cost is 193,925,488 VND.
● Marketing and Advertising cost
The marketing expenses of Mộc Bistro in the first year will include the direct costs of
running advertisements on social media platforms and the costs of opening advertising
campaigns. In the first year, there will be an increased focus on extensive advertising to
promote the brand to a larger customer base, forecasting to be 227,752,474 VND, accounting
for 2.8% of the revenue.
● Maintenance cost
Mộc Bistro 's maintenance costs are calculated based on the expenses associated with
checking the equipment system at the restaurant and the Point-of-Sale (POS) equipment
system for payment at the restaurant. In the first year of 2024, these costs are expected to
amount to 120,000,000 VND forecasting for 1,5% of the revenue.

3.4. Wage Cost

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Wage costs at Mộc Bistro will be divided into main parts: Employee salary, social insurance,
employee benefits.
Wage expense

Type of
expense 2024 2025 2026 2027 2028

Salaries 1,543,200,000 1,620,360,000 1,701,378,000 1,786,446,000 1,875,769,000

Social
Insurance,
Health
insurance,
and
Unemployme
nt insurance 304,128,000 313,251,840 322,649,395 332,328,877 342,298,743

Employee
benefit 220,000,000 226,000,000 233,398,000 238,065,960 245,207,939

Total 2,067,328,000 2,159,611,840 2,257,425,395 2,356,840,837 2,463,275,682

05 years wage expense – Most likely

● Social insurance, Health insurance, and Unemployment insurance

For the insurance package, Mộc Bistro will pay 22% of employee salaries, covering
primarily three types of insurance: social insurance, health insurance, and unemployment
insurance. In the first year, the total salary for employees is 1,543,200,000 VND, so the
insurance cost will be 304,128,000 VND for the first year.
● Salaries
The salaries of employees in each department have been calculated specifically and in detail
in Section 1.1.3 of Chapter 3. The total salary for the first year is 1,543,200,000 VND (2024).
Salary costs are expected to increase by a maximum of 5% over the next four years,
according to Mộc Bistro 's forecast. This planned increase is intended to encourage and boost
employee motivation, promoting more efficient work performance.
● Employee Benefits

17
In addition to the above costs, Mộc Bistro also provides additional benefits for employees,
including lunch allowances, monthly bonuses, and organizing major activities during the year
for employees. Therefore, these costs are expected to increase by a maximum of 3%
annually.

3.5. Total operating expense

Total operating expense - Most likely

Operating
expense 2024 2025 2026 2027 2028

Cost of
Goods Sold 2,324,686,000 2,557,555,000 2,813,310,500 3,094,641,550 3,404,105,656

Selling and
G&A
Expenses 3,273,205,962 3,392,895,191 3,518,858,048 3,651,395,292 3,770,822,327

Total
operating
expense 5,597,891,962 5,950,450,191 6,332,168,548 6,746,036,842 7,174,927,983

Mộc Bistro ’s operating expense - Most likely

Selling and G&A expenses will encompass a range of costs, including real estate expenses,
bank interest, salaries, social insurance, employee benefits, utilities, marketing and
advertising, as well as maintenance costs.

The total projected operating costs for Mộc Bistro restaurant are estimated to be
5,938,346,606 VND, representing 71.51% of the restaurant's total revenue in the first year,
68.58% in the second year, and subsequently decreasing to 60.07%, 58.43%, and 56.88% in
the next three years respectively.

4. Statement analysis

4.1. Income statement - Most likely scenario

18
Income Statement (Most likely)

2024 2025 2026 2027 2028

Revenue 8,303,750,000 9,134,125,000 10,047,537,500 11,052,291,250 12,157,520,375

Cost of
Goods
Sold 2,452,800,000 2,943,360,000 3,532,032,000 4,238,438,400 5,096,126,080

Food 1,716,960,000 2,060,352,000 2,472,422,400 2,966,906,880 3,570,288,256

Beverage 735,840,000 883,008,000 1,059,609,600 1,271,531,520 1,525,837,824

Gross
Profit 5,850,950,000 6,190,765,000 6,515,505,500 6,813,852,850 7,061,394,295

Selling
and G&A
Expenses 2,969,005,962 3,103,095,191 3,243,458,047 3,390,395,292 3,544,222,327

Marketing
and
Advertisin
g 227,752,474 239,140,098 251,097,102 263,651,958 276,834,555

Real estate
expense 360,000,000 378,000,000 396,900,000 416,745,000 437,582,250

Utilities
(Electricit
y, water,
wifi) 193,925,488 199,743,253 205,735,550 211,907,617 218,264,845

Wage
(Salary,
welfare,
training,...
) 2,067,328,000 2,160,211,840 2,257,425,395 2,359,175,717 2,465,679,927

Other 120,000,000 126,000,000 132,300,000 138,915,000 145,860,750

(R&D,
maintenan

19
ce,...)

EBITDA 2,881,944,038 3,087,669,809 3,272,047,453 3,423,457,558 3,517,171,968

Depreciati
on 533,426,480 533,426,480 533,426,480 533,426,480 533,426,480

EBIT 2,348,517,558 2,554,243,329 2,738,620,973 2,890,031,078 2,983,745,488

Interest
Expenses 304,200,000 289,800,000 275,400,000 261,000,000 226,600,000

EBT 2,044,317,558 2,264,443,329 2,463,220,973 2,629,031,078 2,757,145,488

Taxes(20
%) 408,863,512 452,888,666 492,644,195 525,806,216 551,429,098

Net Profit 1,635,454,046 1,811,554,663 1,970,576,778 2,103,224,862 2,205,716,390

Mộc Bistro ’s Income statement - Most likely

The projected Income Statement for Mộc Bistro from 2024 to 2028 reveals a promising
trajectory marked by consistent growth and financial health. The revenue forecast
demonstrates an impressive expansion, surging from 8,303,750,000 VND in 2024 to
12,157,520,375 VND in 2028, indicating robust increases in business activities and sales.
This positive trend is further reflected in the ascending gross profit, showcasing effective cost
management and strategic pricing approaches.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased

significantly, indicating that the business is able to make significant profits from its core
operations. This increase highlights operating efficiency. An additional indication of Mộc
Bistro's financial strength is the steadily increasing EBT (Earnings Before Taxes), which
shows steady profitability prior to taking tax consequences into consideration.

Despite the progressive increase in Selling, General, and Administrative (G&A) expenses
anticipated, sustaining strong profit margins depends on their efficient management. Interest
costs remain stable, with a significant decline in 2026, which calls for explanation and could
indicate a particular financial plan or assumption at that time.

20
 As a result of these developments, net profit has been increasing, rising from 1,635,454,046
VND in 2024 to an astounding 2,205,716,390 VND in 2028. This shows that Mộc Bistro can
consistently turn a profit during the anticipated term.

The thorough examination of Mộc Bistro's Income Statement, in general, indicates a

promising and long-term future. Because of its capacity to control expenses, promote revenue
expansion, and adjust to shifting market conditions, the firm is well-positioned to succeed
going forward. Maintaining and increasing profit margins while Mộc Bistro continues on its
development trajectory will need close examination and aggressive management of operating
costs.

4.2. Balance sheet & Cash Flow

The cash flow data and balance sheet of Mộc Bistro over a 5-year period show a strong
financial trend since the company's founding. A substantial amount of money was spent in
the first year; 89% of the funds were used to construct facilities and develop promotional
plans for the opening ceremony. By strategically selecting a site with pre-existing
infrastructure, architectural improvements could be made at a lower cost, hence providing a
financial cushion against any unpredictabilities during the restaurant's launch.

Mộc Bistro has carefully evaluated a range of financial scenarios over the course of the
planned five years, utilizing its starting reserve capital to achieve a high possibility of
breaking even and making a profit. Interestingly, the company has avoided big investments
and quick expansion by using a cautious and slow development approach. As a result, the fact
that there is no further debt and that the equity is stable and always falls between 3 and 6
billion highlights how prudent this strategy is. The net profit of the restaurant also shows
some consistency.

This prudent approach emphasizes the significance of preserving financial stability in the
early years and fits perfectly with Da Nang's vibrant and competitive market. Considering the
future, Mộc Bistro may look into other development paths after gaining a firm footing in the
industry, thus stability and strategic expansion must be balanced.
Balance Sheet(Most likely)

Base year 2024 2025 2026 2027 2028

21
Assets

Cash and cash

equivalents 622,392,600 2,317,246,646 2,484,947,263 2,628,369,378 2,746,617,462 2,834,708,990

Equipment,
Furniture,
Constructive
Renovation 2,877,607,400 2,344,180,920 1,810,756,440 1,277,327,960 743,901,480 210,475,000

Accumulated
depreciation - -533,426,480 -1,066,850,960 -1,600,279,440 -2,133,705,920 -2,667,132,400

Total Assets 3,500,000,000 5,194,854,046 5,362,554,663 5,505,976,778 5,624,224,862 5,712,316,390

Liabilities

Current
liabilities 6,000,000 59,400,000 51,000,000 35,400,000 21,000,000 6,600,000

Long term
liabilities 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000 1,200,000,000

Equity

Investment
capital 2,300,000,000 2,300,000,000 2,300,000,000 2,300,000,000 2,300,000,000 2,300,000,000

Retained
earnings - 1,635,454,046 1,811,554,663 1,970,576,778 2,103,224,862 2,205,716,390

Total
liabilities and
equity 3,500,000,000 5,194,854,046 5,362,554,663 5,505,976,778 5,624,224,862 5,712,316,390

Mộc Bistro ’s balance sheet– Most likely

Cash flow statement (Most likely) (In VNĐ)

Base year
(2023) 2024 2025 2026 2027 2028

22
Cash flow
from
Operation

EBIT 2,348,517,558 2,554,243,329 2,738,620,973 2,890,031,078 2,983,745,488

Interest 304,200,000 289,800,000 275,400,000 261,000,000 226,600,000

Taxes 408,863,512 452,888,666 492,644,195 525,806,216 551,429,098

Net Income 1,635,454,046 1,811,554,663 2,245,976,778 2,364,224,862 2,432,316,390

Depreciation 533,426,480 1,066,850,960 1,600,279,440 2,133,705,920 2,667,132,400

Net Capital
Spending 2,898,567,400

Free Cash
Flow -2,898,567,400 2,168,880,526 2,878,405,623 3,846,256,218 4,497,930,782 5,099,448,790

Discounted
Free Cash
Flow -2,898,567,400 1,971,709,569 2,378,847,622 2,889,749,225 3,072,147,245 3,166,356,490

Mộc Bistro ’s cash flow– Most likely

4.3. Capital budgeting

4.3.1. NPV, IRR, and Discounted payback period analysis

Most likely

NPV

Base year 2024 2025 2026 2027 2028

Free Cash
Flow -2,898,567,400 2,168,880,526 2,878,405,623 3,846,256,218 4,497,930,782 5,099,448,790

Discounted
rate r=10
% 10.00%

23
CF/(1+r) -2,898,567,400 1,971,709,569 2,378,847,622 2,889,749,225 3,072,147,245 3,166,356,490

NPV 10,580,242,751

Payback
(month) 18

IRR 94%
NPV, IRR, and Discounted payback period of Mộc Bistro

The Payback Period Method, Net Present Value (NPV), and Internal Rate of Return (IRR) are the
three typical capital budgeting approaches that Mộc Bistro uses to assess possible improvements.
When capital budgeting and investment planning, net present value (NPV) is a crucial instrument
for determining the initial investment's profitability.

Certain important inferences can be made based on the data obtained from capital budgeting. One
encouraging thing about the project is that its payback period is projected to be about one year and
six months. Moreover, the project's positive Net Present Value (NPV) of 10,580,242,751 VND
significantly implies that funding it will eventually generate lucrative returns for the company.

With an estimated Internal Rate of Return (IRR) of 94%, the project is most assured of success,
which is rather encouraging. A project's ability to meet and even surpass expectations is reassured
by this strong internal rate of return. All things considered, these financial metrics show that the
business is doing well financially.

4.3.2. ROA, ROE, Net Profit Margin

24
 Mộc Bistro - Financial Ratios

A net profit margin of 10% is generally regarded as typical, whereas a margin of 20% is
considered excellent or "good." This suggests that Mộc Bistro's profit margin for the next five
years will be adequate. Positive trends have been observed in the Return on Assets (ROA)
ratio, which is a crucial measure of a company's profitability in relation to its capital
investment. During the course of the last five years, the ROA has notably increased from
34.49% to nearly 50%, demonstrating effective and rising capital utilization.

Moreover, there are encouraging trends in the Return on Equity (ROE) ratio, which evaluates
profitability using shareholders' equity. Even if there might not be a significant rise, the
project is doing well if there isn't any discernible decline. This shows that, in comparison to
the stock spent, the company is continuing to turn a profit. All things considered, these
financial statistics highlight Mộc Bistro's solid financial performance and effective use of
equity and assets.

25
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