Premise: After a stellar February performance, your Chix and Waffles food truck sat in the garage for the duration of the lockdown. You will slowly re-start your business on May 16 and plan on increasing volume by June and July but still not at February levels. In February, you did 550 covers/day at an average of $8/plate. You operated the truck on weekdays at a FiDi location (5 days/wk) and did special events one day per weekend, 250 covers each at $15/plate. Assumptions:
1. For the second half of May, only 1/3 of the February daily covers will be achievable. No special events are anticipated.
2. The operation had 4 employees: Chef/Owner at an annual salary of $45,000 (that's you), 3 cooks/assistants at $17/hr and 40 hrs/wk.
3. In May, only you, the chef and an assistant will re-start. Another cook will be added in June and by July, you will be staffed at pre-pandemic levels.
4. The truck is fully depreciated.
5. Food cost is anticipated to be at 45% in May and 42% for the months of June and July. This is attributed to the Increase in prices across the board.
6. Special events will be resumed in July.
7. Conservative forecast for May sales is 1/3 of February daily covers. June sales will be at 75% of February. July daily sales will be at February levels.
8. Paper supplies/disposables are budgeted at $1/cover.
9. Cleaning supplies may rise .5% due to more stringent sanitizing protocols.
10. Laundry is peceed at $2.75/day per employee.
11. Employee benefits are at 24% of salaries and wages + $140/mo per employee for Health Insurance and employee meals at $2.50 a day per employee.
12. Licenses and Miscellaneous Expenses are fixed.
Chix and Waffles
Month Ending Month Ending Month Ending Month Ending
February 29, 2020 May, 2021 June, 2021 July, 2021
Sales Revenue % % %
FiDi 88.000 85%
Special Events 15.000 15%
Total Sales Revenge 103,000 100%
Cost of Sales
Cost of Sales, food 41.200 40%
Less: Employee Meals 240 0%
Net cost of sales, food 40,960 40%
Total Net Cost of Sales 40.960
Gross Margin (Profit) 62,040 60%
Departmental Operating Expenses
Salaries and wates 11.910 12%
Emplovee benefits 3,658 4%
Total payroll related
expenses 15.568 15%
Paper Supplies,
Disposables 11.000 11%
Cleaning Supplies 1,030 1%
Laundry 261 0%
Licenses 85 0%
Miscellaneous 100 0%
Total Operating Expenses 28.047 27%
Net Income foss 33.993 33%