What is Pete Peterson’s? “The spot that offers multiple experiences”

Floor Plan

Product Offerings

Location

Competition Interactive Variety of Food & Drink vs. Service/Experience Low-Key HighLow Pete Petersons’s Lagana Jansen Hwy 16 Plunkett LG&CC Wong’s Subway King’s

Capital and Financial Budgets Three investors provide $90,000 for 27.5% equity

Revenue Projections Year 1Year 2Year 3Year 4Year 5 Number of Customers/Day Number of Days/Year 360 Average Purchase/Customer $17.00$17.43$17.86$18.31$18.76 Total Sales$599,760$657,787$707,943$761,924$820,020

Break-even Analysis

Owner’s Compensation Compensation (17.5%) Year 1Year 2Year 3Year 4Year 5 Annual Salary $45,000$46,125$47,278$48,460$49,672 Dividends -$5,981$9,081$12,670$14,903 Total $45,000$52,106$56,359$61,130 $64,575

Investor Return Investor (27.5%) Year 1Year 2Year 3Year 4Year 5Year 6 Total Dividends Dividends-$9,399$14,270$19,910$23,420$25,617 $92,616 Share of Terminal Value $115,618 Total of Dividends and Terminal Value $139,037

Feasibility

Questions?

Marketing: Promotion WORD OF MOUTH

Organizational Structure Head Manager CooksServers Bar Supervisor Bartender

Customer Projections Sunday (11am-8pm) Monday (11am-11pm) Friday (11am-1am) Saturday (11am-1am) 11am-130pm pm-5pm pm-7pm pm-Close Total Average Customers/Day = 98

Average Purchase Price Dad Steak, Potatoes, and Vegetables ($13.25) 1 Bottle Domestic Beer ($4.25) $17.50 Mom Chicken, Rice, and Vegetables ($12.50) Water ($0.00) $ Kids 2 Chicken Fingers and Mozzarella Sticks ($11.50) 2 Juice ($2.50) $14.00 Total Average Price $14.50

Average Purchase Price Calculated Average = $19.75 Set Average Price = $17.00

Critical Factors  Number of Customers  Average Purchase per Customer  Potash Mining Industry

Sensitivity Analysis Number of Customers/Day Average Net Income (5 years) 70BROKE 80BROKE 90$30,825 98$63, $112, $153, $194,460 Average Purchase/Customer Average Net Income (5 years) 14BROKE 15$16,386 16$39,969 17$63,552 18$87,135 19$110,717 20$134,300

Income Statement Year 1Year 2Year 3Year 4Year 5 Sales$599,760$657,787$707,943$761,924$820,020 COGS$204,218$223,976$241,055$259,435$279,217 Gross Profit$395,542$433,810$466,888$502,489$540,803 Operating Expenses $368,537$395,790$398,464$403,113$408,388 Taxable Income $27,005$38,020$68,424$99,376$132,415 Income Tax $3,511$4,943$8,895$12,919$17,214 Net Income$23,494$33,078$59,529$86,457$115,201