Dear [ABC Corporation Limited],
I am pleased to offer my expertise in financial modeling to assist in evaluating your new venture opportunity. As per our discussions, I have developed a financial projection model that provides insights into the feasibility of starting a new restaurant by the sea side.
Based on the data provided, I have calculated that the total area available at the desired location is 929.03 sq meters, split as 60.025% for the Bar & Dining room, 20.008% for the Kitchen, 10.004% for Storage, and 4.998% for staff changing. Using the industry benchmark, I have estimated that the dining space can accommodate up to 305 seated guests with a maximum of 76 tables, assuming no more than four seats per table.
The model takes into consideration peak and lean seasons, with a 70% occupancy rate during peak season and a 35% occupancy rate during lean seasons. The estimated meal rate of Rs 2,300/head is based on comparable restaurants in Mumbai, and costs are primarily allocated to food and manpower at 35% and 30% of revenues, respectively. Additionally, there is a rent charge of Rs 200/sq foot per month, a flat franchise fee of Rs 24,00,000 per annum, and general expenses fixed at 1.85 Cr.
Thank you for considering my proposal. I look forward to discussing this opportunity further and providing additional insights into the potential venture.