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FRENCH BAKERY, LLC FINANCIAL FORECAST<br />
BOCA RATON UNIT FINANCIAL FORECAST<br />
In the financial forecast, a slow-growth economy<br />
without major recession has been taken into account.<br />
French Bakery, LLC management has prepared a<br />
five-year financial forecast for its operations in the<br />
next five years.<br />
Sale Forecast<br />
As indicated in the table below, sales are forecast<br />
to grow <strong>from</strong> $600,000 to $1,008,000 over the next<br />
five years at a <strong>com</strong>pound annual growth rate of<br />
%13.8. These sales forecast refer to the Boca Raton<br />
bakery unit only (the first bakery).<br />
French Bakery, LLC sales are derived <strong>from</strong> four<br />
lines of businesses.<br />
Sales on premises<br />
Sales on the premises are sales made on site.<br />
They are forecast to reach a minimum level of<br />
$450,000 in year 1.<br />
The management forecasts that breakfast sales<br />
and lunch sales represent 15% and 85% of total<br />
sales, respectively, over the forecast period. The<br />
average checks for a breakfast and a lunch are<br />
expected to be $4.50 (for a pastry and a hot drink)<br />
and $10 (for a sandwich and a soft drink).<br />
A forecast sales of $450,000 for year 1 (280 opening<br />
days) would imply 191 customers per day. More<br />
precisely, 54 breakfast customers and 137 lunch<br />
customers. This forecast can be easily achieved<br />
given the high-traffic location of the bakery.<br />
The sales are expected to grow to $700,000 by<br />
year 5 as French Bakery, LLC will reach out to<br />
more customers through a growing customer base<br />
and widespread market awareness in Boca Raton<br />
and its vicinities.<br />
French Bakery, LLC<br />
15
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