Department Beer Taps % Wings lounge % Wine Bar % Total

Sale Revenue
(25% Ind.
Std.) 246791 33.48 268811 36.47 221474 30.05 737076
Direct
Expenses
Cost of Sales
(30- 35% Ind.
Std) 92874 37.63 63800 23.73 62892 28.40

Wages (30-
35% Ind. Std) 118011 47.82 81987 30.50 60963 27.53
Other Direct
Cost (7- 10%
Ind. Std) 23313 9.45 19521 7.26 10176 4.59
Total Direct
Costs 234198 94.90 165308 61.50 134031 60.52
Contributory
Income 12593 5.10 103503 38.50 87443 39.48
Formula's Used :-

1. Add Department Sales = Total sales

2. Department the Contributory Income = Department Sales - Total Direct Sales
3. Percentage for Direct Costs = Dept. Direct Cost / Department Revenues

Problem Statement:-
The biggest problem is that C.O.G.S. in the Wings Lounge is at 23.73% and at the
Wine Bar which is at 28.39% compared to that of the Beer Taps at 37.63%.
The Industry Standard is 30-35% which means their C.O.G.S. is 5 to 10% too low.

Cause Statement:-
1. The C.O.G.S. at the Wings Lounge at too low regarding the industry standards due
to purchasing of the ingredients.
2. The C.O.G.S. at the Wine Bar is too low due to the wastage of the ingredients
which is the result of the poor management and staff trainings.
 THE BEER INC.

CONSOLIDATED STATEMENTS Problem Statement:-

OF OPERATIONS The biggest problem is that the
2019 to $485,645 in 2020 as com
(In
Cause Statement:-
thousand
Favoura 1. The cost of sales has increase
s, except Fiscal Year pandemic.
per share ble /
Unfavou 2. The cost of sales has increase
data) of the poor management and st
rable
3. The cost of sales has also incr
2020 2019 $ Change % Change supplier.
Revenues 1,824,564 $1,721,900 $102,664 5.96 Solution Statement:-
Costs and 1. The problem can be tackled b
expenses: 2. We can avoid the wastage of
Cost of members.
485,645 352,167 $133,478 37.90 3. Need to implement portion c
sales
4. Need to have more than one
Labor
606,696 517,223 $89,473 17.30
expenses
Other
operating
468,485 419,055 $49,430 11.80
costs and
expenses
General
and
administrat 94,819 94,826 -7.00 -0.01
ive
expenses
Depreciati
on and
amortizatio 76,952 71,961 $4,991 6.94
n
expenses
Impairment
1,693 1,576 $117 7.42
of assets
Preopenin
11,599 8,879 $2,720 30.63
g costs
Total costs
and 1,745,889 1,465,687 $280,202 19.12
expenses

Income
from
Operations
$78,675 $256,213 -177538.00
Problem Statement:-
The biggest problem is that the cost of sales has increased by 37.90% from $352,167 in
2019 to $485,645 in 2020 as compared to the revenue which has only changed by 5.96%.

Cause Statement:-
1. The cost of sales has increased due to inflation in the market and due to the global
pandemic.
2. The cost of sales has increased due to the wastage of the ingredients which is the result
of the poor management and staff trainings.
3. The cost of sales has also increased due to the unavailibility of raw material and reliable
supplier.

Solution Statement:-
1. The problem can be tackled by ordering more quantity of raw material to be order.
2. We can avoid the wastage of food by following proper SOP and proper training for staff
members.
3. Need to implement portion control to avoid wastage.
4. Need to have more than one supplier to insure proper competion and rates.
wine list ( industry standard 40%) no of item sold popularity item cost item selling price
Barbera 261 4.24 $ 2.86 $ 7.10
cabernet franc 69 4 $ 1.90 $ 5.90
carignan 120 4.85 $ 3.05 $ 7.90
charbono 135 5.21 $ 2.30 $ 7.51
dolcetto 25 7.45 $ 3.05 $ 10.50
gamay 56 8.75 $ 5.80 $ 14.55
Grenache 137 3.77 $ 3.18 $ 6.95
803

(1/no of item) *0.7 = 0.1

popularity : 4.81
item profit total cost total revenue total profit MM Profit
$ 4.24 $ 746.46 $ 1,853.10 $ 1,106.64
$ 4.00 $ 131.10 $ 407.10 $ 276.00
$ 4.85 $ 366.00 $ 948.00 $ 582.00
$ 5.21 $ 310.50 $ 1,013.85 $ 703.35
$ 7.45 $ 76.25 $ 262.50 $ 186.25
$ 8.75 $ 324.80 $ 814.80 $ 490.00
$ 3.77 $ 435.66 $ 952.15 $ 516.49

$ 2,390.77 $ 6,251.50 $ 3,860.73

Seats 70 Projected Income statement
Weeks 52 Lunch food revenue
Lunch lunch beverage revenue
Turnover 2 Lunch revenue
Average Check $45.00
Days 6 dinner food revenue
Beverage % 30% dinner beverage revenue
Dinner Dinner revenue
Turnover 1.5
Average Check $40.00 Total Food and Beverage Revenue

Cost of goods sold

Days 6 Gross Profit
Beverage % 35%
Expense Notes Salaries
Cost of goods sold 35% Benefits
Salaries 20.0% Rental and Leasing
Benefits 10.0% Marketing
Rental and Leasing 10.0% Utilities
Marketing 6.5% Repair and Maintenance
Utilities 4.0% Computer
Repair and Maintenance 3.1% Licenses
Computer 1.1% Telephone
Licenses 1.5% Other Related Expenses
Telephone 0.6% Total Expenses
Other Related Expenses 3.9%
Net Income
ncome statement NOTES
$1,277,640.00
$589,680.00 (LUNCH SALES*BEV%)
$1,965,600.00 (NO.OF DAYS*AVG PER CHECK*DAYS*TURNOVER*COVER)

$917,280.00
$458,640.00 (DINNER SALES*BEV%)
$1,310,400.00 (NO.OF DAYS*AVG PER CHECK*DAYS*TURNOVER*COVER)

$3,276,000.00 (SUM OF FOOD & BEVERAGE SALES)

$1,146,600.00 (TOTAL FOOD & BEVERAGE REVENUE*COGS%)

$2,129,400.00 Total Food and Beverage Revenue - Cost of Good Sold

$655,200.00 (TOTAL FOOD & BEVERAGE REVENUE*SALARIES%)

$327,600.00 (TOTAL FOOD & BEVERAGE REVENUE*BENEFITS%)
$327,600.00 (TOTAL FOOD & BEVERAGE REVENUE*RENTAL AND LEASING%)
$212,940.00 (TOTAL FOOD & BEVERAGE REVENUE*MARKETING%)
$131,040.00 (TOTAL FOOD & BEVERAGE REVENUE*UTILITIES%)
$101,556.00 (TOTAL FOOD & BEVERAGE REVENUE* REPAIR NAND MAINTAINENCE%)
$36,036.00 (TOTAL FOOD AND BEVERAGE REVENUE*BUSINESS TAXES%)
$49,140.00 (TOTAL FOOD AND BEVERAGE REVENUE*LICENSES%)
$19,656.00 (TOTAL FOOD AND BEVERAGE REVENUE*TELEPHONE%)
$127,764.00 (TOTAL FOOD AND BEVERAGE REVENUE*INSURANCE%)
$1,988,532.00

$140,868.00 Total Food and Beverage Revenue - Total expenses

BREAKEVEN ANALYSIS

Prime Cost = Food Cost + Beverage Cost + Labour Cost

Prime Cost $2,129,400.00
Prime Cost % = (Food Cost + Beverage Cost + Labour Cost)/Total Sales
Prime Cost % 65.00%

Variable Cost ($) $2,257,164.00

Fixed Cost ($) $877,968.00

Variable Rate 69%

Contribution Rate 31%

Break Even Point ($) $2,823,048.23

 Lake si

operational f

barbeque pu
Bevarage %
Regional Be

The operational
The restauran
 Business Model Projections Beverage Menu
Notes Notes
Lake side barbeque / brewpub/ casual dining

70 cover pax( indoor and outdoor )

operation for lunch dinner
operational for 6 days a week with Monday being closed
lunch turnover 2.0 times
dinner turnover 1.5 times
barbeque pub influenced by pop culture with rustic vibe
Bevarage % has to be 30% for lunch and 35% for dinner
Regional Beers and craft beers served with local cusine

The operational hrs for the resturant is 12PM to 10 PM evening

The restaurant is located at habourfront downtown toronto
Beverage Menu
Notes
Wine
Retail cost
Name Region The label Selling size
(LCBO)

Konzelmann Pinot 16.95 for 750 5 OZ, 1

Ontario VQA
Noir VQA ml bottle Bottle

Trius Sauvignon Blanc 17.95 for 750 5 OZ, 1

Ontario VQA
VQA ml bottle Bottle

Beer:

Retail cost
Name Brewery The label Selling size
(LCBO)

I glass or
pint 12 OZ,
BEAUS ALL-
231.40 for 1 Pitcher 60
BEAUS FULL TIME IPA NATURAL
KEG ( 30L) OZ,
BREWING CO
Growler 64
OZ.

I glass or
pint 12 OZ,
375.95 for 1 Pitcher 60
COORS ORIGINAL MOLSON
Keg (58.6L) OZ,
Growler 64
OZ.
 I glass or
KINGSVILLE pint 12 OZ,
KINGSVILLE 219.50 for 1 Pitcher 60
BARREL BREWERY Key (30L) OZ,
AGED STOUT Growler 64
OZ.

Spirits:
Retail cost
Name Brewery The label Selling size
(LCBO)

Captain Morgan Captain 33.95 for 750

1.5 OZ
Original Spiced Rum Morgan ml bottle

32.95 for 750

Absolut Vodka Absolut
ml bottle

as per
cocktail
recipe
39.95
for 750
ml
Tequila Jose Cuervo

as per
cocktail
recipe
Gin 23.95 for 750
ml
1.5 OZ

Beefeater
Blood Orange

Liquer Bols Triple Sec

21.10 For 750
ml
as per
cocktail
recipe

as per
51.05 for 750
cocktail
ml
recipe

Cointreau Cointreau

as per
30.95 For
Bacardi Superior White Rum cocktail
750ml
recipe

Bacardi

Cocktails:
Retail cost
Name Ingredients The label Selling size
(LCBO)
0.5 oz Captain
LONG ISLAND ICED Morgan 1 standard
TEA Original Spiced Drink
Gold
0.25 ozVodka
0.25 oz Tequila
0.25 oz Gin
0.25 oz Triple
Sec
 1 oz
Lime/Lemon
Juice
0.5 oz Simple
Syrup
1.75 oz Cola
1 Glassful Ice

1 standard
MARGARITA 1 1/2 oz tequila
Drink

1 oz orange
liqueur
(Cointreau,
Grand Marnier
or Triple Sec)

3/4 oz freshly
squeezed lime
juice

sweetener:
agave nectar or
simple syrup

Granish:lime
wedge and
coarse salt for
rimming the
glass

1 standard
Daiquiri 2 oz light rum
drink
1 oz lime juice.
freshly
squeezed.
3/4 oz
demerara sugar
syrup.
Garnish: lime
twist
 Beverage Costing Sheet

LLCBO Contents Total

Bottle Size in Contents Size Pour Size Bottle Actual Cost in
Wine Price Ml in fl oz in fl oz Yield Yield one pour
Konzelmann
Pinot Noir VQA $ 16.95 750 25.36 5 5.07 4.87 $ 3.48
Trius Sauvignon
Blanc VQA $ 17.95 750 25.36 5 5.07 4.87 $ 3.69

Beverage Costing Sheet

LLCBO Contents
Bottle Size in Contents Size Pour Size Bottle Actual Total
Beer Price Ml in fl oz in fl oz Yield Yield Cost
BEAUS FULL
TIME IPA $ 231.40 30000 1014.54 12 84.55 72.71 $ 3.18
COORS
ORIGINAL $ 375.95 58600 1981.74 12 165.14 142.02 $ 2.65
KINGSVILLE
BARREL AGED
STOUT $ 219.50 30000 1014.54 12 84.55 72.71 $ 3.02

Beverage Costing Sheet

LLCBO Contents
Bottle Size in Contents Size Pour Size Bottle Actual Total
Spirit Price Ml in fl oz in fl oz Yield Yield Cost

Captain Morgan
Original Spiced
Rum $ 33.95 750 25.36 1.5 16.91 15.89 $ 2.14
Absolut Vodka $ 32.95 750 25.36 1.5 16.91 15.89 $ 2.07

Beverage Costing Sheet

Contents
Size
Grocery garnish Contents Size Actual Total
Juice/Garnish Price unit Yield Size Yield Yield Cost
lime juice $ 2.27 Fl oz 33.2 1 33.2 31.54 $ 0.07
sugar syrup $ 2.97 Fl oz 26.33 0.5 52.66 50.03 $ 0.06
ice cubes $ 3.48 Fl oz 77.77 4 19.44 18.47 $ 0.19
 Lemon Wedge $ 0.57 wedges 8 1 8.00 8.00 $ 0.07
Cola $ 2.47 Fl oz 67.63 1 67.63 65.60 $ 0.04

Beverage Costing Sheet

Cocktail Name Daiquiri
Cost of
LLCBO Contents Spirits
Bottle Size in Contents Size Bottle Actual for
Spirit Price Ml in fl oz Pour Size Yield Yield cocktail
Bacardi White
rum $ 30.95 750 25.36 2 12.68 11.92 $ 2.60
lime juice $ 2.27 Fl oz 33.2 1 33.2 31.54
Sugar Syrup $ 2.97 Fl oz 26.33 0.75 35.11 33.35
lemon Wedge $ 0.57 wedges 8 1 8.00 7.76

LONG ISLAND ICED Beverage Costing Sheet

Cocktail Name TEA
Cost of
LLCBO Contents Spirits
Bottle Size in Contents Size Bottle Actual for
Spirit Price Ml in fl oz Pour Size Yield Yield cocktail
Captain Morgan $ 33.95 750 25.36 0.5 50.73 47.68 $ 0.71
Absolute Vodka $ 32.95 750 25.36 0.25 101.45 95.37 $ 0.35
Gin $ 23.95 750 25.36 0.25 101.45 95.37 $ 0.25
tequila $ 39.95 750 25.36 0.25 101.45 95.37 $ 0.42
Triple Sec $ 21.10 750 25.36 0.25 101.45 95.37 $ 0.22
lime juice $ 2.27 Fl oz 33.2 1 33.2 31.54
Cola $ 2.47 Fl oz 67.63 1.75 38.64571 36.71
Ice cube $ 3.48 Fl oz 77.77 8 9.72 9.24
Sugar Syrup $ 2.97 Fl oz 26.33 0.5 52.66 50.03

Beverage Costing Sheet

Cocktail Name MARGARITA
Cost of
LLCBO Contents Spirits
Bottle Size in Contents Size Bottle Actual for
Spirit Price Ml in fl oz Pour Size Yield Yield cocktail
tequila $ 39.95 750 25.36 1.5 16.91 15.89 $ 2.51
Cointreau $ 51.05 750 25.36 1 25.36 23.84 $ 2.14
lime juice $ 2.27 Fl oz 33.2 1 33.2 31.54
sugar syrup $ 2.97 Fl oz 26.33 1 26.33 25.01
lemon wedge $ 0.57 wedges 8 1 8 8
 spillage: 4%

Beverage selling
upsell % price LLCBO Licensees Price List

200.00% $ 6.96 Welcome to LCBO

200.00% $ 7.37

spillage: 14%

Beverage selling
upsell % price LLCBO Licensees Price List

200.00% $ 6.37 Welcome to LCBO

200.00% $ 5.29

200.00% $ 6.04

spillage: 6%

Beverage selling
upsell % price Beer Store Licensees Price List

300.00% $ 6.41 Licensees-Price-List-Mar-29th-2021.pdf (thebeerstore.ca)

300.00% $ 6.22

Spillage Walmart Juice and Fruit Price List

5% fruit | Walmart Canada
5%
5%
 0%
3%

Mixer Other Total Selling Gross Gross

Cost Ice Garnish Cost Cost Price Profit Cost % Profit %

$ 0.19
$ 0.07
$ 0.09
$ 0.07
$ 3.02 $ 9.06 $ 6.04 300% 67%

Mixer Other Total Selling Gross Gross

Cost Ice Garnish Cost Cost Price Profit Cost % Profit %

$ 0.07
$ 0.07
$ 0.38
$ 0.06
$ 2.52 $ 10.10 $ 7.57 400% 75%

Mixer Other Total Selling Gross Gross

Cost Ice Garnish Cost Cost Price Profit Cost % Profit %
$ 0.19

$ 0.07
$ 0.12
$ 0.07
$ 5.11 $ 15.32 $ 10.21 300% 67%
Guests 70 Capital cost
Seats 70
Bar Bar
Table service 15 sq.ft/guestFOH
Required sq. feet 1050 sq.ft BOH
Bar/aisle/stand 126 sq.ft
Subtotal FOH(front of the house) 1176 sq.ft $ 188,160.00
BOH(Back of the house) 294 sq.ft $ 27,930.00
Total 1470 sq.ft $ 216,090.00

This investment does not include kitchen and bar equipment

Kitchen equipment $ 100,000.00

Bar equipment $ 50,000.00
 Areas %
Front of the house 75
Back of the house 25
160 $/sq.ft
95 $/sq.ft

Total Investment
 CASH RESERVE
Expense Yearly expense Monthly expense No. of months
Salaries,wages,comissions and benefits $ 982,800.00 $ 81,900.00 3
Rental and Leasing $ 327,600.00 $ 27,300.00 3
Marketing $ 212,940.00 $ 17,745.00 2
Utiities $ 131,040.00 $ 10,920.00 3
Repair and Maintenance $ 101,556.00 $ 8,463.00 3
Computer $ 36,036.00 $ 3,003.00 3
Business Taxes, license and permits $ 49,140.00 $ 4,095.00 3
Telephone $ 19,656.00 $ 1,638.00 3
Other Related Expenses $ 127,764.00 $ 10,647.00 3
Total
 Cash requirement
$ 245,700.00
$ 81,900.00
$ 35,490.00
$ 32,760.00
$ 25,389.00
$ 9,009.00
$ 12,285.00
$ 4,914.00
$ 31,941.00
$ 479,388.00