Bakery the Building Should Be Business Plan

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Should the venture prove profitable enough, a manager will be hired allowing the owner to pursue expansion or simply to enjoy more free time.

l.

This business will require both retail staff and bakers; though these positions can cross over to some degree, during hours of peak operation this will not be feasible. Counter help will be paid $9/hr, and bakers will be paid $12. Three eight hour baking shifts with a one hour lunch six days a week -- one 3:00 A.M. To 12:00 P.M., one 5am to 3pm, and one 11am to 7pm -- will cost $1,728; two eight-hour shifts on Sunday will be another $192. Counter staff will only be necessary while the store is actually open, and two people will need to be on at all times; the store is open 95 hrs per week so 190 counter staff hours are needed; this adds $1,520 to weekly labor costs, bringing the total to $3,440.

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Times 4.33, monthly labor costs are $14,895.20.

m.

As currently envisioned at startup, the company should be able handle two customers every minute, with an expected average purchase of $5. At full capacity, then, the company can generate $600 in sales every hour, and the bakery itself should be able to keep up with this demand without issue (though it is not expected this capacity will be reached expect during the busiest periods of the day, if then).

n.

Lease: $3,750

Utilities: $750

Labor: $14,895

Insurance: $750

Advertising: $1,500

Total: $21,645

o.

Labor constitutes the majority of the price of items sold, and since this is a fixed cost the contribution margin would be rather high. An average sale of $5 would probably contain $1 in materials, meaning the contribution margin would be $4 and the ration would be 4:5.

1) at an average unit contribution margin of $1.60 (assuming the.....

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