Kitt’s Kornbread

Location:

Description:

Kitt’s Kornbread is a locally-owned restaurant that has a growth potential. In order to be competitive in a small town, Kitt’s Kornbread meals cost an average of $12, which includes drinks. 

Start-up restaurants in America are commonly thought of as risky investments. However, recent research has shown that restaurants are not that risky after all; about 60% fail in three to six years, which is a rate close to most businesses in America. Kitt’s Kornbread offers great quality meals at affordable prices. We chose Kitt’s Kornbread because of the potential and the location. 

We created a forecast based on average meal prices, average customers served per year, and cost of meals all scaled to the size of the restaurant and its community. Our forecast also takes into account current interest rates and known restaurant expenses, such as facility expenses, inventory, wages, etc. 

The attached document includes an income statement, balance sheet and a statement of cash flows. We also created an unlikely, but possible scenario in which the restaurant goes bankrupt.

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