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Building a Pro Forma

Building a Pro Forma. Chef Scribner, M.A.Ed. Food and Beverage Operations The Art Institute of Seattle. Calculation of Sales (review). Seats X occupancy rate X check average X turns = dayperiod sales Calculate daily sales by adding up appropriate dayperiods

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Building a Pro Forma

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  1. Building a Pro Forma Chef Scribner, M.A.Ed. Food and Beverage Operations The Art Institute of Seattle

  2. Calculation of Sales (review) • Seats X occupancy rate X check average X turns = dayperiod sales • Calculate daily sales by adding up appropriate dayperiods • Calculate weekly sales by adding up individual daily sales (Fri and Sat often differ from rest of week) • Weekly X 4 = monthly sales • How do monthly sales differ based on time of year • When is “season” and how does it affect sales calculations

  3. Calculation of Labor • Number of server shifts x hours per shift = total server hours • Server hours X hourly rate = FOH labor • Would do same for BOH hourly employees (note to students: BOH not needed for class project) • Calculate manager salaries broken down on weekly amounts

  4. Begin to build Pro Forma • All sales = 100% total • Break down into anticipated food and beverage sales • Typically beverage can by 20% of total sales • Could break down further into beer, wine and liquor • food sales = 8000 • beverage = 2000 • total sales = 10,000 • generate cost of goods based on anticipated percentages • if food cost for above is 30% and beverage cost is 25% • COGS food = $2400 • COGS bev = $500

  5. Begin to build Pro Forma • All sales = 100% total • Break down into anticipated food and beverage sales • Typically beverage can by 20% of total sales • Could break down further into beer, wine and liquor • food sales = 8000 • beverage = 2000 • total sales = 10,000 • generate cost of goods based on anticipated percentages • if food cost for above is 30% and beverage cost is 25% • COGS food = $2400 • COGS bev = $500

  6. Reading a P & L Chef Scribner, M.A.Ed. Food and Beverage Operations The Art Institute of Seattle

  7. Final P & L • Includes final, real numbers for the period(usually an annual period)

  8. Working P & L • Has columns for real numbers, budgeted numbers, and variance (change) from the budget both in dollars and as a percent

  9. What do high expense variances tell us? • Spending money over budget? • Spending on unnecessary items? • Cost of raw goods increased? • Theft/pilferage?

  10. IBITDA • EBITDA«ee-bit-dah» is the acronym for Earnings before Interest, Taxes, Depreciation, and Amortization. All interest, tax, depreciation and amortization entries in the Income Statement are reversed out from the bottom line Net Income.

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