Catering Marketing Plan

Fressen Catering

Financials, Budgets, and Forecasts

4.0 Financials, Budgets, and Forecasts

This section will offer a financial overview of Fressen as it relates to the marketing activities. Fressen will address break-even analysis, sales forecasts, expenses forecasts, and how those link to the marketing strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates $23,566 will be need in monthly revenue to reach the break-even point.

Break-even Analysis



Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even	$16,497
Assumptions:
Average Percent Variable Cost	30%
Estimated Monthly Fixed Cost	$16,496

4.2 Sales Forecast

The first month will be used to set up the kitchen and office. There will be no sales activity during the first month. The second month will see a few catering jobs, but still will not be a significant source of income. Months three and four will see a steady increase in sales. Word will have gotten out from the advertising as well as networking that Fressen is the new kosher caterer in town and offers a high-quality service.

Throughout the year it is forecasted that sales will incrementally grow in size until profitability is reached toward the end of year one.

Sales Monthly



Sales Forecast

Sales Forecast
	2001	2002	2003
Sales
Middle class kosher customers	$83,017	$170,992	$183,774
Upper class kosher customers	$95,422	$196,543	$211,234
Total Sales	$178,439	$367,535	$395,008
Direct Cost of Sales	2001	2002	2003
Middle class kosher customers	$24,905	$51,298	$55,132
Upper class kosher customers	$28,627	$58,963	$63,370
Subtotal Direct Cost of Sales	$53,532	$110,261	$118,502

4.3 Expense Forecast

Marketing expenses are to be budgeted so they peak several months before a busy period, providing visibility at a time that people are scheduling future parties.

Monthly Expense Budget



Marketing Expense Budget

Marketing Expense Budget
	2001	2002	2003
Advertising	$9,600	$14,000	$18,000
Other	$1,200	$1,500	$2,000
Other	$0	$0	$0
	------------	------------	------------
Total Sales and Marketing Expenses	$10,800	$15,500	$20,000
Percent of Sales	6.05%	4.22%	5.06%