Question

Topic: Research/Metrics

How To Estimate Revenue For A Restasurant

Posted by Anonymous on 10/28/2006 at 3:01 PM ET 250 Points
My brother is an experienced chef, I am a marketer (CPG). We want to start a restaurant in a small town. Before I get into the details of a full blown bus plan I need to see if the economics work. I have population and income stats for the market area. Short of an independent quant study, are there any rules of thumb that can be applied to determine what households spend on food out of the home depending on the their demographic profiles (income specifically)?
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  • Posted by Frank Hurtte on 10/29/2006 at 10:34 AM Accepted
    I suggest working backwards..
    Rent + expenses+ salaries+everything else= how much you need to break even

    break even divided by average cost of a meal = number of customers daily

    Does this number make sense?
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