Sales Revenue

Net Revenue will be derived from In-Store Sales and Delivery Sales. Pizzeria Fresco’s sales are expected to average:

• 90% from In-Store sales
• 10% from Delivery sales

(Note: The New York City sales tax rates (8.25%) are not reflected in the Net Revenue figures on the attached financial statements.)

Sales volume of both In-Store Sales and Delivery Sales are expected to fluctuate per month as follows:

June and July 2004, are the start-up months, with this time period devoted to installing fixtures and conforming the property to food business regulations. These two months will not be operating months; therefore, there is no expected revenue as well as no salary/wage expenses. In addition, rent is expected to be deferred, as per agreement with the landlord for a two-month build-out period.

August is expected to be a lower-yielding month due to the higher rate of vacationers going out of town. In addition, this is the period between semesters at the local schools and universities.

September and October – are expected to pick up from the return of the school semester. In addition, continuing warmth in September and with Halloween in October (particularly being located in the Greenwich Village area where the Halloween Parade is located), sales levels are expected to be higher than the previous months.

November – Sales are expected increase due to more people seeking warm food with the colder weather. In addition, the Union Square Holiday Market brings many tourists and shoppers to the area.

December–is expected to draw higher sales due to the holiday and shopping season, which brings additional foot traffic. In addition, continuing cold weather plus holiday entertainment and parties may general elevated Delivery sales.

January and February – are expected to generate moderate sales levels both for In-Store and Delivery. Advertising and promotions planned for this period is expected to maintain moderate sales levels, particularly in Delivery.

March–is expected to have slower In-Store sales due to the Not-yet-spring weather, plus Spring break for local students. Special promotions aimed at local residents and businesses will attempt to raise Delivery sales for this period.

April, May, June and July– are considered the high period for Pizzeria Fresco. With business largely dependent on foot traffic, these are the months with the highest tourists visiting the area. Delivery sales is also expected to be high, due to summer school sessions, combined with Pizzeria Fresco’s name becoming more recognizable to local residents, as a gourmet pizzeria that also offers a selection of cold pizzas.

2. COST OF SALES / DIRECT MATERIALS

The total cost of sales is expected to be 20% of Total Sales, which is the form of raw food ingredients. (See Ingredients Listing on Pages X and X). This is reflective of the industry average of 30%; with the consideration that Pizzeria Fresco differs from most retail fast food businesses in that it does not use any meat products (which tends to increase cost of sales).

GROSS MARGIN

Net Revenue from Sales minus Total Cost of Sales

Дата добавления: 2015-10-30