Pasta Restaurant Marketing Plan

Sigmund's Gourmet Pasta

Financials, Budgets, and Forecasts

4.0 Financials, Budgets, and Forecasts

This section will offer a financial overview of Sigmund's Gourmet Pasta as it relates to the marketing activities. Sigmund's will address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates that $40,000 will be needed in monthly revenue to reach the break-even point.

Break-even Analysis



Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even	$23,037
Assumptions:
Average Percent Variable Cost	45%
Estimated Monthly Fixed Cost	$22,000

4.2 Sales Forecast

The first two months will be used to get the restaurant up and running. By month three things will get busier. Sales will gradually increase with profitability being reached by by the beginning of year two.

Sales Monthly



Sales Forecast

Sales Forecast
	2001	2002	2003
Sales
Individuals	$103,710	$262,527	$327,424
Families	$150,304	$380,474	$474,528
Total Sales	$254,014	$643,001	$801,952
Direct Cost of Sales	2001	2002	2003
Individuals	$46,669	$118,137	$147,341
Families	$67,637	$171,213	$213,538
Subtotal Direct Cost of Sales	$114,306	$289,350	$360,879

4.3 Expense Forecast

Marketing expenses are to be budgeted so that they are ramped up for months two through four and then lower and plateau from month five to month 10. Restaurants typically have increased business in the fall. This generally occurs because during the summer, when the weather is nice and it does not get dark until late, people tend to eat out less. From months 10-12, the marketing costs will increase again.

Monthly Expense Budget



Marketing Expense Budget

Marketing Expense Budget
	2001	2002	2003
Direct mail	$5,267	$5,605	$5,421
Banner ads	$11,704	$12,455	$12,047
Other	$7,022	$7,473	$7,228
	------------	------------	------------
Total Sales and Marketing Expenses	$23,993	$25,533	$24,696
Percent of Sales	9.45%	3.97%	3.08%