Red Lobster Ksa,RydPresentation Contents : P&L Break Even Point Mini LSM Store Description & Sales Forecasting Study

Profit & Lose Statement Definition The most easy way to read and know if business drive in safe mode or not we

should not dealing with it as only numbers but we have to feel it from the soul of business success.

It is a financial statement that summarizes the revenues, costs and expenses during a specific period of time - usually a fiscal monthly , quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs.

The P&L statement is also known as a Statement of Profit and Loss Or Income Statement Or Income and Expense Statement

Profit and Lose Statement Benefits

Important tools for us as manager to know , Analyzing and Thinking of business to lead us being success ( Results ) It is Result containing a lot of Tasks

Evaluating our restaurant business performance and let us know the root cases Fast to solve it Fast

Creating the future plan for the restaurant and company business plan as we are part of big company ,All of us working under umbrella of Americana Group .

Evaluating the performance of the restaurant team member , managers and even another office department such as marketing , sales , training , HR .. Etc.

Will enable us as manager to: Answer the question, "How much money am making, and how much our expenses ? Compare our management team performance against company benchmarks , Use past performance trends to form reasonable forecasts for the future , Show our business growth and financial health, Detect any problems regarding Sales, Margins and Expenses within a reasonable time so adjustments may be made to decrease expenses .

Profit and Lose Statement Basic ELEMENTS :Top-Line: Sales As much as we can doing the best practices of Upselling and maintain guest count tracking to increase guest count volume will lead us reach guest value by the total amount of money guest will spend at restaurant Such as Add-Ons items small items which is will add more value to customer invoices We open new source of gaining sales against any future expensesIn this case we are following

SUN TZU ON THE ART OF WARTHE OLDEST MILITARY TREATISE IN THE WORLD

He Say : The Skillful leader subdues enemy troops without any fighting

&The way a wise general can achieve greatness beyond ordinary men is through

foreknowledge

Example : X month we are making sales up to 100,000 SR and our F&B cost is 30% Now we got CM is 70% it means we got 70,000 SR after cutting food and beverage cost, On other hand we make in next month 120,000 SR and we still doing good in maintaining our store cost it means our CM is 70% ,See the magic now we got84,000 SR instead of getting 70,000 SR over by 14,000 SR ,For while we can close our eyes and imagine we open 10 stores around , and how much this income will help all of us to grown and successes .

Always THINK of the secret of different words SMALL & BIG

Small things and issues getting Big together

Bottom Line Net Profit the paper mint for all of us ( employees , managers levels and chairman's ) The best practice of getting our store bottom line high is controlling store expenses source such as the Paper supplies, Guest supplies and Cleaning supplyElectricity , Water , Marketing , Internet , and all other expenses such Maintenance bonus , training with managing Staff productivity to reduce our labor cost with keep on our target Red Lobster Guest Promises, and Core Value Remember again Think Small things together getting Big Example : plastic garbage bag in X store use around 50 Each every day as an Avg. will be on monthly 1500 Each , Yearly 18000 Each Now surprise if we multiplied that volume into value will be 9000 SR in only one small item imagine again we have 10 stores will be 90,000 SR Again we think of the secrets of equal word Right = Right

old wisdom is true , put the Right person in Right place

Description : Profit And Loss Statement Month Of ,,,,,,, Restaurant Revenue The Total Amount of money gaining from sold Food + Beverages Food The food items which is sold by us on dining P.Mix Beverages The Beverages Items which is sold by us on dining P.MixCOGS items which is we purchasing or ordering from our suppliers such as items containing food and beverages suppliers , it is Variable as much as we controlling on West and following up with recipes ,with using the philosophy of RIGHT METHOD : Right Ordering , Right Receiving , Right Storage , Right Use , With great service , and Restaurant atmosphere to avoid customer lacks and issues regarding food taste . Always we Think of Our Red Lobster RIGHTS & Promises After calculating the F&B Cost Or COGS we got the Gross Profit or Restaurant Contribution Margin Restaurant COGS is 30% or up to company benchmarks it means our restaurant contribution margin is 70 % from Total Sales CM = Total Sales – COGS / 70.000 = 100.000 - 30,000

It is Time for Labor Cost It is very sensitive part in P&L we have to scale and checking always , staff productivity very important to lead us as managers for avoiding the lack of manpower or lose business by Recognize them well and with skills developed , keep on Training .Restaurant Expenses It is time for the challenging part of the profit and loss , all managers always challenge on this part ., some times other managers challenging on both Labor & Variable Variable : Paper Supplies ,Guest Supplier and Cleaning supplies ( Such as any items used by customer or used for helping customer to keep on safe and or clean ) with containing provide comfortable, safe clean place for guest, As much as we controlling of the usage of this items ,As much we will gain profit Water We have to use it in the Right way and with Right procedure Electricity As much as we control of the A/C and electronics items as much as good for us to maintaining our electricity bill leading us to reduce expenses Marketing . We should keep on communicated with marketing department with doing LSM report and ops discussions , we use the right printing material at the Right place whatever we spend money for that we should gaining money from that

Maintenance We should use Right procedure and standard when use it , and Do daily , weekly or monthly utensils and equipment cleaning up to stander and equipment condition and terms Licenses Following up always with the healthy , restaurant and Labor licenses expiration date with doing tracking as weekly basis will help us for that to avoid company and employees deduction from other hand we make that to avoid deducting money from us this is the Result of tracking sheets .Gas Right use of the restaurant cars will avoid to many issues , by making gas tracking comparing with car km. After we know the consumption of gas comparing with the distances and make it with driver sign. Now it is time for MOP ( Manager Operation Profit ) Related to company policy and standard It is like the paper mint of the top management , like evaluating there performance , when they are doing well , it is time for the Paper Mint

Now It is Time For The Fixed Cost : The most critical part on profit and loss which is we can’t changes whatever we are working or not doing well or not , Now imagine whatever we controlling , reducing and acknowledgeable about variable cost as much as we make that Fixed Expenses Take the Breath and enjoyable Fixed Expenses : Rent which is we can’t play with it is fixed expenses source Royalty Fees It is company Agreement which is no body can change Depreciations It is restaurant equipment & Machines , Pre Opening , furniture's and constructions It is company decision as per the budget and plan they make .Total Restaurant Expenses Which is Variable + Fixed + Labor The Paper Mint for chairman's NET PROFIT

Example: below mention example is very simple lets check ….

Food Sales 80.000 SR 80%

Beverages Sales 20.000 SR 20%

Total Sales 100.000

COGS 30.000 SR 30%

Gross Profit ( CM ) 70.000 SR 70%

Labor Cost 15.000 SR 15%

Expenses

Variable 10.000 SR 10%

MOP 2000 SR 2%

Fixed 8000 SR 8%

Total Expenses 35.000 SR 35%

Net Profit 35.000 SR 35%

Break Even Point Break Even Point : Break even Point one of the most important tools we use it as management team to know the relations between fixed cost and variable cost or semi variable cost , we can calculated as daily , monthly, quarterly or yearly , it will directed us to the root case and to even solve it such as below mention Example :X restaurant had the break even point is below , now restaurant loss around 2% from the contribution margin because of to many reasons can happened out of hands like road problems … etc. the GM of this restaurant he starting to think of where is the root case to take that immediate action and he starting from the break even point to know exactly where we can start , now he even want to be reaching his break even point to be zero with following this method :

Revenue = Fixed Cost + Variable Cost by reducing his variable and semi variable expenses such as labor cost with doing the right staff productivity , organizing and planning as Put Right person in the Right place Always the old wisdom can help on the future success

Above Break Even Point ( Profit)

Below Break Even Point ( Lose )

Mini LSM Red Lobster Ksa,Ryd. Jan.2013 Introduction : 4 kinds of customer we have Business , Family , Students , Shopping They are our main source of gaining sales Area Definition : Location is highly standard and near to the Air Port and Dammam Road from Riyadh city , Area around the location is mainly new buildings if houses or villas , around 80% already inhabited it means there is good future on this area , even there is to many fast food restaurant open already there such as KFC , pizza hut , herffy , MacDonald's and also there is Othem super market front of the location , it is famous big retail super markets around ksa , to many customer visit it daily .Also , 5 To 10 Munities by using car in Easy Traffic Way we can reach 4 important Locations such as : SABIC Tower The world’s largest petrochemicals manufacturers, SABIC is a public company based in Riyadh, Saudi Arabia. 70% of the Company’s shares are owned by the Saudi Arabian government, with the remaining 30% held by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council.

Also 5 To 10 Munities with easy traffic way using car will reach Complex international companies in the communications, such as Ericsson .and to manyShopping mall Garandh with 4,500 parking spaces, 80,877 m2 of leasable retail space, 16 entrances and 320 shops including its stores - Extra, Paris Gallery, Carrefour, Debenhams, and Etam and Megastore .King Abdul-Aziz University Which is thousands of the students there , They will be future house holders and future guest

Sales Forecasting as per the study , Marketing Study and company Budget Daily Average Guest divided between Lunch and Dinner minimum 25 % from total sales make on AM shift and other 100% completed on PM shift As per competition studding the restaurant who is serving mainly sea food they are using the oriental serving way of cooking showing and serving such as Elnafora & Estakoza , they have high volume of regular customer , As Red Lobster restaurant style and service , atmosphere will be different and attractive to visit .We expecting more than below mention example ( Inshallah ) especially in 1st quarter

Guest Count Vs. Sales Forecasted : Take Example from TGI Hamra month of Dec. 2013 .

A

The total area of the restaurant 563 Meter Dining Area , and service area 441 Meter 78% , Kitchen area 122 Meter 22% from total space Lobster Tank, in family area front of the host station with tank capacity 80 KG and 650 L water Number of Seats 228 Seat , divide into 2 sections Family 170 (75%) & Single 58 Seat (25%)Numbers of table 46 Table , divide into 2 sections Family 35 & Single 11 TableThere is elevator inside the kitchen to transfer products to the storage area will divide between red lobster and long horn steak house

Month of Dec. 2012

Sales Daily Sales Lunch Dinner Per Hour Lunch Time

Per Hour Dinner T.

1.165.209 38.840 9.710 29.130 1.214 3.641

APP Month Of Dec.2012

Guest Count

Daily Guest Count

Lunch Dinner Per Hour Lunch Time

Per Hour Dinner T.

16768 559 140 419 17 52

Now it is time to make turnover ratio to lead us forecasting our store sale : Tables Turn Over = Total Seats / Total Number of tables 5 = 228 / 46 Seat Turn Over = whole day guest count / Total Seats 2 = 456 / 228 Now we have all information and as per menu comparison studying APP will be 80 SR

Below Sales Forecasting :

Guest count Forecasting

Guest Count

Daily Guest Count

Lunch Dinner Per Hour Lunch Time

Per Hour Dinner T.

13680 456 114 342 14 43