Pizza Restaurant: Analysis, Establishment, Teamwork

An analysis of the market in Cambridge

An analysis of the market in Cambridge (the United Kingdom): In an executive summary in 2005 on retail trade analysis by Cambridge Chamber, Cambridge was to grow at annually. Cambridge is molding into a regional business hub that is worth a quarter of UK’s venture capital, thus is emerging as favorable entrepreneurial destination. Its investment per capita is five times that of London and such rates top in Europe.

Cambridge overall investment is amounts to £600Million and is further estimated to have a venture investment worth 8% of Europe’s total. According to Cambridge Judge Business School *a concentration of nearly 900 high-tech firms occupy 50 miles of the town Centre; this constitutes among others 36% in healthcare and life sciences, 24% in IT and16% in communications. According Cambridge Judge Business School * Cambridge is molding into a regional business hub that is worth a quarter of UK’s venture capital, thus is emerging as favorable entrepreneurial destination. Its investment per capita is five times that of London and such rates top in Europe. Cambridge overall investment is amounts to £600Million and is further estimated to have a venture investment worth 8% of Europe’s total (JBS).

Cambridge is a major tourist destination; in 2008, it generated revenue worth £351 million in 2008 for the remote communities while remote spending contributed about £216 million to the economy. East wise, Cambridge has a regional trading center, while westwards is more of a business district, forming a retail area that is barbell shaped (University of Cambridge, 2010)). Thus, to have a throughout shopping spree for their clienteles, there is need to develop the area in between the East and West (Cambridge-Chamber).

JBS: Cambridge Judge Business School

Local business environment-Cambridge Experience- the executive MBA-Programmes-Cambridge.

Attachment in Pdf: 2005 Retail Trade Analysis – Cambridge Exec Summary.

Identification of target markets for the new business

Restaurant patrons come from both local populace as well as foreigners; though locals form the larger bulk. According to data from when analyzed the following was deduced: Cambridge annual trends, within 2005-2007 projected an increase in population; this had a positive correlation with those in working age; about 73% of resident population was of working age in 2007.

Tourist spending is fairly stable and significantly high (averaged at ); in 2007, most people in Cambridge had NVQ1 qualification or its equivalent; more people had NVQ 1-4 qualifications or their equivalent while those with qualification below this were fewer; in 2007 Cambridge had over two-thirds in the standard occupational classification having associate professional and technical qualifications or a higher qualification, these were by far better than in the larger Eastern Region and the wider Great Britain; the numbers in categories of those with lower qualifications fell to insignificant portions but relatively in significant potions in the larger Eastern Region and wider Great Britain; hotels and restaurants were the 3RD largest employing sector, behind Public Administration, Education and Health sector (average of) and Finance, IT, other Business Activities sector (average of).

Manufacturing sectors and Construction sectors were the least employers at an average of and , respectively; tourism sector, allied to the Hotel sector though had lower employee figures but was on the rise and these could be boost; the number of day visitors is very high (at an average) and over the night stays though low, are on the increase; these enrich patron numbers; Cambridge labor availability is annually rising positively with population and is relatively higher than overall Great Britain; however, fewer of the economically disadvantaged are willing to be absorbed as employees; though an indirect factor, VAT registration is on the rise vis-à-vis the corresponding de-registration figures and Gross Value Added (GVA) per capita for Cambridge in 2004 almost doubled that of UK; it ranks 12TH among the over 400 local authorities and 1ST in the Eastern Region (, 2008).

The 2001 census demographics showed: A fairly balanced gender proportions (males slightly more); the white population form largest bulk, with marginal proportions of Black, Asian, Mixed and other an accounted races; almost two-thirds are Christians while Hindu, Jewish and Muslim percentage populations ranged below 2.5%; two-fifth have graduated, 24.1% are full time students and over 16% with 16years and above lack any qualifications and over half of the populace own housing while percentages of those depending on social housing as well as those who have personally rented from 24.3% and 17.7%, respectively; 9 out of every 10 homes are fitted with central heating and bathrooms, either or both.

PEST is an analysis tool that provides information on the political, economical, social and technological aspects of a place. Carrying out a PEST analysis of the market in Cambridge reveals that;

  • Demographics of Cambridge show that unemployment is low this is a good indicator of political stability in Cambridge.
  • Economically, it is considered one among UK’s entrepreneurial destinations as indicated by its quarter share of UK’s venture capital. It also has a ready supply of labour.
  • Socially it hosts a wide variety of races, cultures and religions. Also it’s an educational and tourist destination.
  • Technologically, it is well established. This is indicated by the significant number of hi-tech firms it hosts. Of these firms majority are dedicated to healthcare, life science and information technology.

SWOT is an analysis tool that determines the strengths, weaknesses, opportunities and threats that arise in carrying out business venture. The strengths that are associated with Bob and Lloyd’s fast food business are

  • Bob and Lloyd have a well established repute in Cambridge, that is, they are known for providing a reliable, efficient and friendly service.
  • Also, they have a good capital base i.e. the gross profit from their manufacturing company and the legacy left to them by their aunt.
  • The fast food business is relatively cheaper to start.
  • They are also good decision makers as shown by their choice of business to start and the priorities they have set at the moment (Fab, 2010).
  • The brothers appreciate the importance of information. They are undertaking a market research of Cambridge so as to understand it better in line with their new business venture.
  • Bob and Lloyd have an ideal counter attack strategy in as far as handling the competition that is imminent form other fast food business operators in and outside Cambridge.
  • Though not in fast food business but the experience they have earned in running their manufacturing company is another strength they wield. It will assist in coming up with better business decisions.
  • The brothers have a good long term objective, that is, to diversify on a national scale beyond the borders of Cambridge.
  • Also notable is the brothers’ vision of running a fast food business based on a culture of providing excellent service and food produced using high quality ingredients.
  • Finally, Cambridge is a positive incentive to the brother’s new venture as it offers a promising market among other things.

The weaknesses that are associated with Bob and Lloyd’s fast food business are

  • Cambridge’s fast food market is highly competitive and thus demands a lot of efforts in order to make significant gains out of it.
  • Owing to the fact that they have never run a fast food business before, it will take them time to build the experience necessary to run one successfully.

The opportunities associated with Bob and Lloyd’s fast food business are

  • Cambridge is a regional business hub favouring entrepreneurs like Lloyd and Bob. Westwards it’s a business district and eastwards a regional trading centre.
  • Cambridge is home to the prestigious Cambridge University which intakes
  • It’s also a major tourist destination. Thus for Lloyd and Bob, tourists being among their target group, this is a huge plus.
  • Labour is readily available in Cambridge. So the brothers don’t have to worry about where there workforce will come from.
  • The hi-tech healthcare, life science and information technology firms in Cambridge are also another incentive to the brothers’ vision of providing excellent service and food produced using high quality ingredients.

The threats that are associated with Bob and Lloyd’s fast food business are

  • The unpredictable trend of the Credit Crunch may easily divert their attention and capital from the fast food business venture to their manufacturing company.
  • Global politics may lead to an upsurge in oil prices raising expenditure on fuel. This may eat up considerably on the turnover generated from the new venture.

An appropriate marketing objective for the company’s first year of operation.

Promotion- plan for promotion methods (costed out).

Brand strategy

A tactical plan using the marketing mix to launch the new fast food business for the target segments

Patron Categories Implementation Strategy Means of attaining Objectively verifiable indicators Time Frame
Eating-in Invest in furniture
Entertainment accessories
Customer satisfaction
Optimal staff performance
Purchase custom made for fast-food establishment
Engage in rigorous catalogue survey for fixtures
Outsourcing recruiting agent and provide with target market details
Competent staff in food preparation and customer care
Obtain staffing models from similar establishment
Organize for in-house trainings improve staff performance
Increase in patrons eating-in
Positive comments from patrons
Minimal patron complains
Harmony among staff
Over the increase in patrons eating-in
Increased activity and cash-flow
On the spot delivery
Delivery Services (24hour) Invest in van and Motor Cycle deliveries
Communication address and telephones
Customer satisfaction
Cambridge Site maps
Diligent staff, able to long into the night; well versed with Cambridge as a whole
Fastest means of communication and delivery Increased orders Delivery on demand wherever and whenever

Labour is readily available in Cambridge

This report touches on the implications of the brother’s proposal to take some of their existing staff from their manufacturing company into the fast food business. It also discusses the relevant leadership, motivation and group/team theories that Bob and Lloyd can apply in their fast food business. These issues are of vital importance in running a successful business.

Leadership theories

The Contingency leadership theory was developed by Fred Fiedler and it supposes that by addressing; leader-member relations, task structure, and position power, you are at the same time attending to the effectiveness of a leader. Considering that Lloyd and Bob intend to use their existing staff at their manufacturing company they may consider using this leadership theory. This is because; they can easily identify a leader who can mediate between them and the other staff and thus address the aspect of position power (Venture International, 2010). Secondly, putting up a team that can work with the chosen leader is also easy for them hence it is more likely that the staff would have a strong leader – member relation. Finally, the staff is composed of people who know each other and thus creating a stronger leader – member relation becomes easy for them.

The path-goal theory was developed by Robert House and it stresses on increasing subordinate motivation through taking into account their ideas and making it clear to them how they can perform at their best. Given that they fast food business is based on the ethos of excellent service, employee motivation will be very vital to them and thus this leadership style may come in handy.

The leader-style theory was developed by Vroom and Yetton and guides leaders in making suitable decisions and also provides a measure of the extent to which subordinates can be included in the decision making process. The advantage of this style is that subordinates are committed to the organizations objectives and it encourages leader-subordinate interaction (Matrix Solutions, 2009). The brothers who have a clear vision of providing excellent service and food produced using high quality products plus a long term objective of expanding beyond Cambridge would find this an appropriate leadership model for them

Motivation theories

One motivational theory that is appropriate for Bob and Lloyds’ fast food business is the Aldefer motivational theory. This need based theory argues that, the team – working arrangements will though out be a source of motivation to employees even after their have satisfied a certain need. This motivational theory is compatible with the brothers’ long term objective of expanding their fast food business beyond the borders of Cambridge.

The equity theory is also another appropriate motivational theory that can be applied in Bob and Lloyds’ fast food business. Application of this theory in the work place shows a concern for equity and fairness because it ensures that efforts that employees are putting into their respective jobs don’t go unrewarded. Considering that the fast food business intends to offer excellent service and provide food produced with high quality ingredients, individual employee and team efforts towards this end should be noticed and rewarded.

A combination of Aldefer and the equity theory is another way to go for Bob and Lloyds’ fast food business. As pointed above they will ensure that the desired culture of the business is maintained and also will aid in achieving Bob and Lloyds’ fast food business long term objective.

Another motivational theory that can work in Bob and Lloyds’ fast food business is the Hertzberg motivational theory. This theory emphasizes on motivators such as recognition, promotion, achievement, responsibility etc. and factors called hygienes which include salary, work environment, supervision, company policies etc.. The presence these two promotes motivation and an acceptable working environment, however, their absence does not lead to dissatisfaction.Bob and Lloyd can use this theory to design a work place that integrates more motivators.

Leadership will be very important to realize the objective of the process ArticleSnatch, 2010). The management must adopt a suitable leadership style that will address the issues that might crop up and the leadership fraternity needs to be proactive. The manager of the restaurant being vested with authority to steer the restaurant enterprise must not use his/her powers wisely. The leader might decide to be authoritarian which might cost the enterprise greatly.

The leaders should be in a position to provide direction to the subordinates accordingly. The leader must also be actively be involved in the day to day running of the restaurant and not to be a bossy type. The entire leadership fraternity should focus on the attaining the objectives of the business enterprise (McNamara).

The leader also needs to be responsive to the needs of the subordinates at all times. In addition, he/she must commend hard working subordinates before others to encourage others to work harder. This can be done by a warding certificates or and tokens. It is the also the duty of the leader to command the employees and this cannot be achieved by merely being authoritative but charismatic. A leader who is charismatic will be in a position to attract and appeal to his/her subordinates. To summarize on leadership and management this table summarizes the differences between being a manager and a leader (Accel-Team, 2010).

According to Webb (2009) Motivation in work place involves workplace leadership, work environment and education in leadership Webb states that, “In many of today’s work environments, employees’ primary goal is quitting time and payday. Leaders priorities are power, control and maintaining the status quo. Getting the job done is down the list. Once needed skills are mastered and employees follow established procedures, the job offers little or no challenge.”

In work place education Webb states that, “Change equals challenge which is the source of motivation, workplace efficiency and job security. Because of fast changing trends and technology, work environments are evolving into continuous challenges. Responsibility is moving to the front line where it becomes the workers’ responsibility to find the best way to get the job done, not management alone. For this to succeed, the front line must have continuous learning opportunity, be in a continuous learning mode and be continuously adapting to new technology.”

The management also needs to provide employees with suitable working environment to be able to give their best (Motivation tools, 2010).

Subject Leader Manager
Essence Change Stability
Focus Leading people Managing work
Have Followers Subordinates
Horizon Long-term Short-term
Seeks Vision Objectives
Approach Sets direction Plans detail
Decision Facilitates Makes
Power Personal charisma Formal authority
Appeal to Heart Head
Energy Passion Control
Culture Shapes Enacts
Dynamic Proactive Reactive
Persuasion Sell Tell
Style Transformational Transactional
Exchange Excitement for work Money for work
Likes Striving Action
Wants Achievement Results
Risk Takes Minimizes
Rules Breaks Makes
Conflict Uses Avoids
Direction New roads Existing roads
Truth Seeks Establishes
Concern What is right Being right
Credit Gives Takes
Blame Takes Blames
Leadership Style versus Motivation
Leadership Style Motivation Type Motivation is Based on: Personality Type Efficiency
Limited supervision
Worker with decision making responsibility
Self motivated Creativity Leader of ideas or people.
Thrives on change
Team motivated
Mixed styles Goal motivated Opportunity Personality type and efficiency depends on leader’s skill and/or the work environment he’s created.
Reward motivated Materialism
Recognition motivated Social status
High level of supervision
Peer motivated To be like others Status quo
Resist change
 Leadership Style and volume of elementary problems
Team Motivated
Elementary problems are prevented or solved at the source. Getting the job done is the primary goal of management and workers.
Dependency of Authority
Elementary are dealt with by management when large enough to be recognized.
Abused Workers
Lack of leadership skills and the desire for power creates elementary problems. Managers focus on worker control. Getting the job done is down the list. Workers goal is to find ways to do little as possible.
Command and Control Leadership – Problems are always out of control.

According to Buzzle and Deshmukh (2010) teamwork is very important for success to be achieved at any work place. According to buzzle “Mankind has been working in teams and groups since the primitive days of civilization. Hunting and wandering together in groups is an apt example of teamwork during those days. It is only in recent times, that it has been developed as a ‘concept’ in the management jargon.

  • T – Together.
  • E – Everyone.
  • A – Achieves.
  • M – More.

Buzzle further says that there are the importance of team work are numerous and they include fast learning; workload distribution; Healthy distribution; exploring creativity; healthy competition and increased speed of work.

Leadership, motivation and team working are very paramount

Below is a sample of business plan that the pizza restaurant should use for the nest twelve months (Virtual Restaurant).

Sample Business Plan
Sample Cash Flow Statement
StatementFor the Month Ended_________.
Cash Flow From Operating Activities
Net Income
Non-cash Expenses and Revenues
Include income
Increase in Accounts Receivable
Increase in Supplies
Increase in Accounts Payable
Net Cash Flow from Operating Activities
Cash Flows From Investing Activities
Purchase of land
Purchase of Building
Net Cash Flow used by Investing Activities
Cash Flow Financing Activities
Net Cash Flow Provided by Financing Activities
Net Increase (Decrease) in Cash

The table below presents a cash flow statement that Pizza restaurant should use in one given fiscal year (Planware &, 2010).

Cash Flow Example Statement
StatementFor the year Ended_________.
Cash Receipts Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Total Receipts
Total Disbursements
Total Receipts (Less)
Total Disbursements
Income Statement
[Time Period]
Financial Statements in U.S. Dollars
Gross Sales
Less: Sales Returns and Allowances
Net Sales 0
Cost of Goods Sold
Beginning Inventory
Add: Purchases
Direct Labor
Indirect Expenses
Inventory Available 0
Less: Ending Inventory
Cost of Goods Sold 0
Gross Profit (Loss) 0
Bad Debts
Bank Charges
Charitable Contributions
Contract Labor
Dues and Subscriptions
Employee Benefit Programs
Legal and Professional Fees
Licenses and Fees
Office Expense
Payroll Taxes
Repairs and Maintenance
Vehicle Expenses
Total Expenses 0
Net Operating Income 0
Other Income
Gain (Loss) on Sale of Assets
Interest Income
Total Other Income 0
Net Income (Loss) 0

Pizza management should be guided by an income statement like the one above (Office Online, 2010).

Pizza restaurant should operate seven days a week under a well established and competent management (All Star Directories, 2010). It should uphold quality at first in order to give the restaurant a commendable reputation in then university. The restaurant should anticipate total sales of $ 600000 in the first year of operation.

Pizza’s primary goal should be to provide values to its esteemed customers (Sweeney Kep, 2010). Menu pricing should be $15 on dinner and $7 in lunch check. The management should focus on the friendly services that will surpass customers’ expectation. The company should have a proper mission statement that will guide their operation into realizing success in their operations in the university.

Pizza restaurant should be ahead of its competitors in the Cambridge University by offering full service diner and lunch. The enterprise should invest in customer-staff relations, who should be cordial and the restaurant should also offer variety of beverages and food. Business hours should be as follows:

  • Sunday to Thursday: 11 am to 9 pm.
  • Friday and Saturday: 11 am to 11 pm.

The atmosphere of the pizza restaurant should uphold comfort at all times (York, 2010). Market target for the restaurant should be wide in range and should include: Students, Lecturers, Families, Men and women, visitors from outside the country and from within and Residents of Cambridge University and the community from the neighborhood (Allen, 2010).

The restaurant should target market for breakfast, lunch and dinner. The management should embrace publicity and promotion so as to create awareness among the public of the Cambridge University and its environments by using methods such as advertisement of the business in the news paper and magazines that reach the targeted population and use of cross promotions. The key information of the advertisements should be based on Quality, Affordability, Value, Freshness, Variety and Service.

The restaurant should budget as follows:

First year (June 2010 to June 2011 = $600,000

Anticipated liquor and food sales should be 12% and 88% respectively.

  • Beverage cost goal is 30%.
  • Food cost goal is 33%.
  • Total Labor is 25%.
  • Rent is 4.2%.
  • Operating supplies is 4.5%.

Menu Pricing

  • Average dinner check $15.
  • Average lunch check $7.

Menu pricing should be determined by taking into account the following:

  • Goal of less than $15 for an average dinner check.
  • Goal of less than $7 for an average lunch check.
  • Achieving desired food cost through total menu mix.
  • Guests’ perceptions of value for the quantity, quality and uniqueness of the product.

Pizza restaurant should have the following organization structure in order to maximize its gains (Restaurant pitfall, 2010).

  • General Manager.
  • Assistant Manager.
  • Kitchen Manager.
  • Dining Room Supervisor.
  • Kitchen Shift Leaders.



  • Spring Rolls.
  • Skewered Shrimp.
  • Chicken Nachos Bean Nachos.
  • Calamari.
  • Shrimp & Rice Fritters.
  • Wild Mushroom Ravioli.
  • Black Bean Soup.
  • Cheese Onion Soup.
  • Fontina, Corn.
  • Jalapeno Quesadilla.
  • Mussels.

Sandwiches, Salads, & Light Courses

  • Tuna Melt.
  • Shrimp Melt.
  • Grilled Hamburger with Bleu Cheese.
  • Grilled Marinated Tuna Steak Sandwich.
  • Pork Sandwich with Chipotle BBQ Sauce.
  • Mustard Chicken with Mixed Greens.
  • Black Bean and Vegetable Burritos.
  • Caesar Salad with Grilled Shrimp.
  • Spinach Salad with Prosciutto Dressing.
  • Open-Faced Roasted Pepper and Mozzarella Sandwich.
  • North City Salad.
  • Caesar Salad.


  • Grilled Beef Tenderloin with red wine, shallot and mushroom sauce.
  • Grilled Tuna Steak with Soy Ginger Sauce.
  • Grilled Herbed Salmon with Red Wine Sauce.
  • Northern Catch of the Day.
  • Ratatouille.
  • Grilled Flank Steak with Soy-rosemary Marinade.
  • Pork Medallions with Balsamic Vinegar and Sage.
  • Penne with Sundried Tomatoes, Mushrooms and Artichoke Hearts.
  • Pasta Shells with Feta and Herbs.
  • Linguine with Summer Peppers and Sausage.
  • Chicken with Port Mushroom Sauce.
  • Jamaican Jerk Chicken with Black Beans.
  • Citrus-Grilled Chicken with Mesquite Honey.

Funding Total

Funding Total

Equipment Total 45,556.00
HVAC Improvements 7,000.00
Hood vent with return air 15,000.00
Register system 6,000.00
Smallwares 15,000.00
Chairs 4,000.00
Tables 12,000.00
Remaining construction allowance 75,000.00
*Bathrooms 179,556.00
Training & opening food 7,500.00
Pre-opening 187,056.00

Equipment List

Equipment List

60″ Sandwich station reach-in refrigerator – 3 1,395.00 4,185.00
54″ Two door reach-in refrigerator 1,855.00 1,855.00
30″ Ice cream cabinet 675.00 675.00
92″ Keg dispenser 2,075.00 2,075.00
80″ Black bottle cooler 1,260.00 1,260.00
Ice cream dipwell 105.00 105.00
30″ Ice maker cubers – 459 lbs 1,630.00 1,630.00
Ice bin 270-340 capacity 545.00 545.00
Draft box tapping kit 115.00 115.00
Walk-in refrigerator box 3,415.00 3,415.00
Refrigerator for walk-in – 1 1/2 H.P. 2,270.00 2,270.00
Freezer – 2 door – 54″ 2,375.00 2,375.00
Boiler – 42 1/4″ – 3 burner 1,635.00 1,635.00
6 Burner-Vulcan (2-oven w/convection, griddle & broiler) 3,685.00 3,685.00
Casters 160.00 160.00
Warming drawer – single 600.00 600.00
750 Watt food warmer 160.00 160.00
Microwave 1200 Watt 950.00 950.00
Slicer Berkel – 10″ 645.00 645.00
Kitchen Aid – 5 qt. 380.00 380.00
Food processor 435.00 435.00
Dishwasher – Jackson 5,350.00 5,350.00
Coffee brewer 535.00 535.00
Water/service station 1,233.00 1,233.00
Steam kettle – Cleveland – 6 gallon 2,246.00 2,246.00
Dish tables 700.00 700.00
Work table – 6 200.00 1,200.00
3 Compartment dish sink – 2 drainboards – 127″ x 27″ 1,469.00 1,469.00
Handsinks – 2 165.00 165.00
Deep fat fryer 725.00 725.00
Sub Total 42,778.00
Tax 2,567.00
TOTAL 45,556.00

Projected Cash Flow

Projected Cash Flow

Year 1
Beginning Balance Plus: 30,000
Cash receipts/sales 636,000
TOTAL CASH 666,000
Food cost 174,240.00
Beverage cost 21,600.00
Hourly payroll 150,000.00
Operating supplies 30,000.00
Repairs & maintenance 12,000.00
Utilities 14,000.00
Rent 25,200.00
Printing 2,000.00
Insurance 12,000.00
Advertising 9,000.00
Bank Charges 1,000.00
Dues 500.00
Personel Property 2,500.00
Use Tax 2,200.00
Single Business Tax 3,000.00
Licenses 2,500.00
Professional Fees 7,000.00
Miscellaneous 3,000.00
Management Labor with Taxes 50,000.00
Loan Repayment 30,960.00
Income Tax Payment 1,380.00
Sales Tax Payments 66,050.00
CASH FLOW 45,950.00

Pro Forma Profit & Loss Statement

Pro Forma Profit & Loss Statement

SALES Year 1
Food 528,000.00 88
Beverage 72,000.00 12
TOTAL 600,000.00 100%
Cost Of Sales
Food 174,240,00 33
Beverage 21,600.00 30
TOTAL 195,840.00 32.6
Hourly Labor Total w/Payroll Tax 150,000.00 25
Controllables Operating supplies 30,000.00 5
Repairs & maintenance 12,000.00 2
Total Controllables 42,000.00 7
Profit After Controllables 212,160.00 35.4
Utilities 14,000.00 2.3%
Rent 25,200.00 4.2
Depreciation 30,000.00 5.0
Equipment write-off 16,400.00 2.7
Training labor 5,000.00 .8
Training food 2,500.00 .4
Printing 2,000.00 .3
Insurance 12,000.00 2.0
Advertising 9,000.00 1.5
Bank charges 1,000.00 .2
Dues 500.00 .1
Personal property 2,500.00 .4
Use tax 2,200.00 .4
Single business tax 3,000.00 .5
Licenses 2,500.00 .4
Professional fees 7,000.00 1.2
Miscellanceous 3,000.00 .5
Management labor 50,000.00 8.3
Interest expense 21,000.00 3.5
PROFIT 3,360.00 .6

Write a brief report to Bob & Lloyd, explaining the financial information you have produced in task 7.

Balance Sheet

A balance sheet is a statement of a business financial position especially at the end of the year. Every transaction undertaken by the business has a direct impact on the bearing of the statement (Berry Tim, 2008). There generics for preparing balance sheet formats are commonly two. One format has been for this assignment. Preparing balance sheet after transaction may theoretically be sound but the task is cumbersome for the personnel preparing the document.

This is impractical because of valuation of the certain aspects of the balance sheet that compose the business may lead additional costs. In fact, preparation of balance sheet on transaction bases involves perusing other previous balance sheet statement done before making it less useful.

A useful approach that can be applied when preparing a balance sheet considers the following: at the beginning of the trading activities period account for the assets investments, liabilities and capital injected; prepare individual ledgers, these will contain multiple supporting accounts; the individual accounts are for every single asset, individual liability and every capital; individual transaction made affecting any aspect in the balance sheet (that is for any of the items of the capital, liabilities or assets) are then posted into appropriate accounts accordingly, the value of the item rises or reduces with regard to the transaction undertaken and how it has affected the account and then at the end of the trading period individual accounts are then costed out and values carried forward are then used in preparing the balance sheet for the accounting period just ended. Bob and Lloyd have set aside £1,250,000 and additional boost of £100,000 from the aunt legacy this is the capital meant to initiate the business, these totals to £1 350 000.

Since capital investment are meant for profit making. Profit is made and calculated when after all transaction have been made and expenses incurred in undertaking the transaction have been subtracted then what remains is. Profit is expected to be made from discounts for purchase, large scale purchases and difference in sales makes the highest source of profits among others. The profit expected to be made in the accounting period amounts to.

The liabilities are basically what the business entity owes others. Land rates accrued cater for annual levies made on which the business is set up (Fullen, 2005). These are mainly at the end of the year but are calculated at monthly bases and are to the City Hall in this in Cambridge area. Trading license caters are paid by the business to the City Hall legalizing the business operations. This is expected to amount up to.

Fixed assets are those assets that the business will exist for long time and are not intended for sale in the day to day business operations to make any profit. Acquisition of property investment encompasses the whole location of the site. Expenditure on this item is expected to be. Equipments are fittings in the business that are for operations (PlanMagic, 2010). Kitchen items include cutleries, potteries, cookers refrigeration and coolers among other kitchen wares. These are expected valued up to. Dining area furniture and fittings are expected to value up to *. Delivery motor cycles and vans are expected to be valued up to.

Depreciation of these assets reflects on wear and tear for the equipments. These are subtracted for the respective asset based on the projected figure. Cash that at hand/bank attend of the accounting period is expected to be *. Current assets make up those items lasts short time; their fluctuations depending on the transaction made be the businesses. Stocks are meant for the business supplies; more of the supplies are purchased soon after they deemed low thus depending on the patrons to the business.

They are to be monitored regularly to ensure that they don’t run out completely. A standard amount should be estimated to make sure on which the amount of stock to be purchased is based on (Writer Staff, 2009). At the end of trading period the value of stock remaining is posted in the balance sheet. In this case it’s projected to amount up to.

Cash Flow Statement forecast

This statement projects expenses made in the business operations as well as incomes received from the said operations. This monitors item flows. It may be integrated in the budgeting process. This enables business to understand how items and their transactions will affect the business in this case costed out at monthly bases. In this case this will help the business to be able to know times when their will be peak cash in flows as well as when cash is low.

Thus strategize to avoid cash short falls and address surplus.. Some of the positives from cash flow forecast can include: estimating worthiness of the business and its operations at any given moment and can help in balancing operations by setting relevant bench marks to guide transactions (Entrepreneurship, 2010). Capital at the injected by the investors mainly in direct cash form to cater for initializing and ensure the business operations will keep it afloat. At the start it will be and it is expected to fluctuate with operations as shown above. Cash sales are generated from the food sold to the patrons mainly both through those coming to the premise and to those whom deliveries are made. Supplies for stock to be made are based how and when an expected shortfall this to avoid any grinding scenario for the business then a constant should be ensured.

Monthly salaries for staff are paramount to a business. Items in the business due to handling and fragility may need some repair and maintenance works especially for machines that are continuously running (fridges, coolers and coolers in the kitchen as well as the motor cycles and vans among others).

Market target for the restaurant should be wide in range

The following report discusses human resource, marketing and finance. In so doing it highlights to Bob and Lloyd the relationship that exists between people, finance and marketing. This are very critical areas that both Bob and Lloyd will have to build expertise on especially considering that there long term objective is to expand their business beyond Cambridge.

Human resource

According to the website, human resource is a collective term that refers to the workforce of an organization. In human resource management each individual in the workforce can be termed as human capital. For any organization there is a financial risk associated with investing in human capital. The purpose of human resource in an organization then is to develop a strategy (or strategies) for the organization which when applied will maximize the revenue generated from the organization’s human capital (or the workforce) while at the same time minimizing this financial risk (Entrepreneur, 2010).


The marketing department in a firm is charged with the responsibility of generating turnover for the firm through the customer – firm exchange process. Marketing is the process through which an organization; firstly, determines which of its products or goods interest a given customer and secondly, the ideal strategy to apply in sales, communication and business development (York, 2010). Marketing comprises of three parts; the first part is to identify who your customers are, the second part is keeping these customers and final part is satisfying these customers.


For a given business enterprise there are financial resources that possess a financial value and it is critical that the enterprise allocates these recourses in a way that will maximize its wealth (JRank, 2010). The methodology used to achieve this is referred to as business or corporate finance. To carry out this allocation process in the right manner three decisions have to be made. One of these decisions is capital budgeting. Capital budgeting decisions would consider the resources that are available to the organization and then after select the ideal investment for the organization to venture into.

The suitable investments for an organization would be those that allow for returns which exceed the cost of capital. The financing decision is the second of the decisions to be made in as far as allocating the organization’s financial resources. The objective of the financing decision is to;

  • Amass every relevant and necessary resource for the organization.
  • Undertake every investment that yields returns in excess of its input cost.
  • Get funds from external investors and creditors at the lowest possible rate of return.

The dividend policy is the third and final decision that has to be made in allocating the financial resources of the organization. This decision addresses repayment of equity investors.The objective of the financing decision is to;

  • Retain the required resources acquired through external investors and creditors.
  • Create room for more investments.

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BusinessEssay. "Pizza Restaurant: Analysis, Establishment, Teamwork." November 13, 2022.