This document provides information for budgeting and planning for a new restaurant opening in Bukit Bin tang, Kuala Lumpur. It includes details on the location, size, facilities provided, rental options, labor costs, market analysis of the area, competitive landscape, operational checklists, design plans, budget estimates for fixed costs including depreciation, package pricing, break even analysis, and 3-year sales and profit projections. The restaurant aims to offer both local and western cuisine and expects to reach break even selling around 820 meal packages in the first year of operation.

1. MANAGERIAL ACCOUNTING
RESTAURANT BUDGETING PROCRESS
BY:FARIBA MIANJI
1

2. INFORMATION
 Scope: To open a new concept restaurant at Shopping City, Bukit Bin tang,
Kuala Lumpur.
 Location Plan: The restaurant will be located on the main floor of the shopping
mall.
 Size: 1,000 Square Feet (20 feet X 50 feet)
 The space shall consist of seats for customers, pantry, kitchen and
washing place along with store room.
 Current Condition of Location: New and empty
 Facilities Provided by the Building: Gas connection, electricity and water
including the wiring, piping and connection.
 Monthly usage of gas, electricity and water to be borne by restaurant
owner.
 Furniture & Fixture: Has to be provided by restaurant’s operator.
 Rental: The management of Shopping City has not specified a rental for the
restaurant. They are open to proposal on fixed rental or commission based
rental or mixture of both.
 Budget: The company policy of Delicious Corporation does not set a specific
budget amount for this project. However, the budget requires approval by the top
management before implementation.
2

3. BUKIT BIN TANG
3

4. INTRODUCTION
 First of all, we would like to take this advantage to thank
you for giving us this opportunity as finance manager, to
be a part of this new grand opening restaurant. Since we
are new in restaurant business, we had to have some
researches on that.
 Information provided by the marketing and accounting
department are mentioned below:
 According to those information we will be locating in one
of the most crowded areas in town named Bukit Bin tang.
 Delicious Corporation is very well known in restaurant
business and it is one of the first Themed Restaurants
operators in Malaysia with two different cuisines, Local
and Western.
4

5. THEMED RESTAURANTS
 Themed Restaurants are those, which the concept of the restaurant is in
the first priority that takes over everything else. His influencing the
architecture, music (sometime live bands), food, food presentation and
overall the feeling. Sometime controversial images or contexts are being
used to attract more people.
 Two of the well known themed restaurants are, Hard Rock Cafe & Planet
Hollywood. The opening instruction of these restaurants are quite
interesting, as everything has to be related to each other. For example,
an old west theme needs to have menu items that compliment it. Such
as, Steak, Chops, Ribs serving by Pan Bread, Corn Bread or Succotash
and also old fashioned drinks such as, Root Beer or Birch Beer. Of-
course, these items unconsciously will affect our menu price.
 Kind of furniture used in this kind of restaurants, such as chairs and
tables, has to be comfortable as the food preparation, dinning and
paying the bill takes normally up to 1 hour for each table. Moreover, the
concept of these restaurants is having customer for longer time than
QSRs (Quick Service Restaurants) or commonly called Fast Foods
which will be affected the cost of furniture.
5

6. INITIAL SETUP
 RENTAL
 According to www.iproperty.com.my (Malaysia’s #1 Property
Website), the price of rental per square feet in Bukit Bin tang area
starts from 18.50 to 22RM/Sq ft. Which depends on the furnishing
condition.
 Since our restaurant will be located in a “Just Lunched” shopping
mall, we could put an offer at 15RM/Sq ft for the bare unit which
has provided the wiring, piping and gas connection
 According above, the first option is Fixed Rental which will be
15,000RM per month. (15RM X 1,000 Sq ft). As deposit we have
to pay 3 + 1 months, which is Security and Utility respectively and
refundable (If everything settled down at the end).
6

7. SHOPPING MALL HARD ROCK CAFE
RESTAURANTS
IMAGES OF RESTAURANT IN BUKIT AREA AND THEMED
RESTAURANT
7

8. LABOUR COST AND OUR SALARY
Based on our research and according to
www.jobstreet.com.my (Figures #2 and #3)
which is very famous and working closely
with government and non-government
sections, the labor cost will be as follows
(Depends on position level)
 In every category, we go to the average
salary for our new restaurant
8

9. LABOUR COST FIGURE 2
Job Title Minimum Maximum Remark
(RM) (RM)
Financial HQ
Manager
Manager 1,200 3,100 Monthly
Chef 1,500 5,500 Monthly
Cashier 600 2,400 Monthly
Waitress 800 1,500 Monthly
Waiter 900 1,250 Monthly
Worker 780 1,200 Monthly
(Washer) 9

10. OUR RESTAURANT SALARY FIGURE 3
Job Title Qty Salary Remark
Manager 1 2,200 Monthly
Head Chef 1 3,000 Monthly
Assistant Chef 1 1,500 Monthly
Cashier 1 1,500 Monthly
Waitress 1 1,100 Monthly
Waiter 2 2,000 Monthly
Worker (Washer) 1 900 Monthly
10

11. MARKET ANALYZING
 we use Demographic Survey as an analyzing tool to determine these questions, those are
very important for every single business. Ages of customers, Ethnic groups, occupations,
income levels, size of the market in that area.
 According to CIA Fact book, net migrate rate of Malaysia is, 0.39 migrant(s) / 1,000
population. This group mostly concentrated in Kuala Lumpur city. Age structure in Malaysia
is, 29.6% for 0-14 years, 65.4% for 15-64 years and 5% for 65 years and over. Out of this,
they show an ethnic group rate as below.
 50.4%, 23.7%, 11%, 7.1% and 7.8% respectively for Malay, Chinese, Indigenous, Indian
and Others. Malaysia is one of the middle-income countries.
 GDP per Cap $14,800.
 In Bukit Bin tang area, we have hundreds of restaurants that plenty of them operating
even 24 hours. The variety of food being serving in this area is kind o f huge, Western,
Malay, Chinese, Arab, Iranian, Pakistanis, Indian, Japanese, Korean and much more.
Types of restaurants available in this area, such as QSRs (Fast Foods), Family Dining,
Casual Dining, Ethnic Restaurants and Theme Restaurants. Since we are going to operate
our restaurant in this society, becoming a customer choice will be a little bit hard working
matter, but the good point is, that we already operating restaurants in other areas and we
are well known among local people. To get succeed in our new branch, we should not
forget that even if Bukit Bin tang has the biggest population in Kuala Lumpur which
consists of students, employees and tourists, but the market for “High Price Meals” is not
that big! The average menu estimation will be 30RM for a main course of western food and
20RM for local food. In the meanwhile, the soft drink will be sold at 3.50RM.
11

12. COMPETITIVE ANALYSIS
 The proposed location for Delicious Corporation is occupied
largely by older restaurants. The majority of existing restaurants is
comprised predominantly of Malaysian restaurants, fast food, and
a few full service concepts.
 Restaurants that might be considered direct competition for our
target market customers are listed in the next table. It is important
to note that the restaurants listed are not necessarily similar
concepts to Delicious Corporation. However, we feel that we are
competing for a similar customer base.
 Our competition consists of a few food cafés and restaurants
which are located nearby. The competition will be quite fierce as it
offer food at lower price compares to our. But however Delicious
Corporation set us apart from the competition as we focus on
best quality and differentiated food, therefore we emphasize on
providing only the best dining experience to our customers
12

13. COMPETITION ANALYZING
CHECK
NAME THEME B; L; D AVERAGE
T.G.I Fridays Full Service, Local [L, D] RM35-RM50
and Western,
Casual Fare
Secret Recipe Full Service, Local [L, D] RM25-RM35
and Western,
Casual Fare
Nando’ s Full Service, Local [L, D] RM30-RM45
and Western,
Casual Fare
13

14. OPERATION CHECKLIST
 The restaurant will be managed with the use of various checklists. Consistent
use of checklists will help to maintain quality control while ensuring that
established procedures are followed. The restaurant will use an item specific
order guide to track order history and maintain designated levels of product in
inventory.
 Order Guide
 Weekly Inventory
 Daily Inventory Tracking
 Cash Audits
 Video Surveillance
 Safety Reviews
 Liability Reviews
14

15. RESTAURANT DESIGN
 The restaurant design which will be handled by our interior architecture group
contractor is categorized into seven different categories.
 Entrance
 Hostess
 Seating for customers those are waiting to be seated
 Kitchen
 Shelves, utensils, ingredients, prep tables, cooking range, oven, fryers, food
storage area (chest freezer), broiler, stoves, dish washing sinks, dish washer,
serving plates, griddle, cleaning suppliers.
 Office
 Desk, file cabinet and office supplies.
 Employee Area
 An area with lockers, so employees can hang their coat and lock their
belongings.
 Floor
 Tables, chairs, drink counter with coffee and supplies.
 Restrooms and washing area
15

16. BUDGETONG ESTIMATION
FIXED COST INITIAL SET UP
* Item Nam E Cost Description
Rental Deposit RM 60000 3+1 Month
Internet Deposit RM 600 Land line + Internet
Insurance RM 12000 1 years
Kitchen Equipment RM 100000 5 years
IT RM 20000 3 years
Renovation RM 100000 5 years
Service Plate RM 20000 1 years
AC/Ceiling Fans RM 40000 5 years
Furniture RM 35000 3 years
Uniform RM 6400 1 years(32 uniform)
Menu RM 4000 1 years(20 copies)
Total RM 398000
16

17. DEPRECIATION
ITEM NAME YEAR 1 YEAR 2 YEAR 3
RM 18333 RM 18333 RM 18333
Total (IT Furniture)
Total (Renovation, A/C, RM 48000 RM 48000 RM 48000
Fans, Equipments)
Total (Serving RM 20000 RM 15000 RM 15000
Plates)
Total (Insurance) RM 12000 RM 12000 RM 12000
Total (Uniform, RM 10400 RM 10400 RM 10400
Menu)
Total RM 108733 RM 103733 RM 103733
17

18. MONTHLY FIXED COSTS
AVERAGE
ITEM NAME COST DEPRECIATION
Rental RM 15000 15 Sq Fit
Labor RM 12200 8 Employee
Utility RM 2650 Gas , Electricity , Astro
Water , TM
Advertisement RM 40000 Flayers , Cards , Poster
Billboard , Stand
Depreciation RM 9061
Total RM 78911
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19. MONTHLY FIXED COSTS
FIRST YEAR
ITEM NAME COST DEPRECIATION
Rental RM 15000 15 Sq Fit
Labor RM 12200 8 Employee
Utility RM 2650 Gas , Electricity , Astro
Water , TM
Advertisement RM 20000 Flayers , Cards , Poster
Billboard , Stand
Depreciation RM 9061
Total RM 58911
19

20. MONTHLY FIXED COSTS
SECOND &THIRD YESR
ITEM NAME COST DEPRECIATION
Rental RM 15000 15 Sq Fit
Labor RM 12200 8 Employee
Utility RM 2650 Gas , Electricity , Astro
Water , TM
Advertisement RM 20000 Flayers , Cards , Poster
Billboard , Stand
Depreciation RM 8644
Total RM 58494
20

21. According to our
menu which is
formed by two
different cuisines,
Local & Western,
we estimated the
price for each
meal 20RM,
30RM respectively
and soft drinks for
3.50RM.
Malay food
PACKAGES
21

22. WESTERN FOOD
Our raw material based on the restaurants standard which is 22% to 34% will
be 30%average.Moreover, our estimation of selling foods will be 60% for
Local and 40% for Western food which means every 3 Local sells 2 of
Western.
22

23. PACKAGE PRICE ESTIMATION
PACKAGE QTY PACKAGE PACKAGE
PRICE TOTAL PRICE
Local Food 3 RM 23.50 RM 70.50
Western Food 2 RM 33.50 RM 67
Total RM 137.50
PACKAGE QTY Variable cost Total Variable
Cost
Local Food 3 RM 7.05 RM 21.15
Western Food 2 RM 10.05 RM 20.10
Total RM 41.25
Package Variable 137.50- 41.25=
Cost RM 96.25
23

24. BREAK EVEN POINT FIXED COST
YEAR 1 YEAR 2 YEAR 3 YEAR 1 YEAR 2 YEAR3
7,345 7,293 7,293 RM22.50 RM18.66 RM 15.99
*
24

25. MONTHLY ESTIMATION
 Package Contribution Margin
 $137.50 - $41.25 = $96.25
 Break Even Point
 $78,911 / $96.25 = 820
 Number of Local Foods
 820 X 3 = 2460
 Number of Western Foods
 820 X 2 = 1640
25

26. 3 YEARS BUSSINESS PERIOD
BUSINESS PERIOD YEAR 1 YEAR 2 YEAR 3
Sales Revenue RM 5000000 RM 6000000 RM 7000000
Local Food RM 3000000 RM 3600000 RM4200000
Western Food RM 2000000 RM 2400000 RM 2800000
Packages Must be Sold 31348 37618 43887
Local Food 94044 112853 131661
Western Food 62696 75235 263323
Contribution Margin RM 3017241 RM 3620690 RM 4224138
Fixed Costs (RM 706,932) (RM 701,928) (RM701,928)
Operating Income RM 2,310,309 RM 2,918,762 RM 3,522,210
Income Tax (24%) RM(RM554,474) (RM700,503) (RM845,330)
Net Profit RM 1,755,835 RM 2,218,259 RM 2,676,880
ASSET RM3,255,835 RM4,018,259 RM4,776,880
26

27. CONTINUED (MONTHLY ESTIMATION)
Year 1 Year 3
Sales Revenue RM 416,667 RM 500,000 RM 583,333
Local Food RM 250,000 RM 300,000 RM 350,000
Western Food RM 166,667 RM 200,000 RM 233,333
Packages Must be Sold 2,612 3,135 3,657
Local Food 7,837 1 9,404 0,972
Western Food 5,225 6,270 21,944
Food RM 159.5 RM 159.5 RM 159.5
price(package)
27

28. BREAK EVEN AND MARGIN AND SAFTY
ASTIMATIO
Break Even Point
Package 7345 7293 7293
21878 21878
Local Food 22034
Western Food 14689 14586 14586
Margin of Safety
Unit
24003 30325 35594
Ringgit RM 3,828,513 RM 4,835,805 RM 5,836,805
Package Sales
Price(unit) RM 159.50
28

29. Return Return
OPERTAT of Invest
ROI Q1 Q2 Q3 Q4 ASSET ING of
ment Invest
PICK PICK S INCOME
ment
(Ratio)
YEAR RM RM 0.71 71
1 11000 4000 10000 6446 3,255,835 2,310,309
YEAR RM RM
2 13167 4796 11945 7709 4,018,259 2,918,762 0.73 73
YEAR 15360 5595 13265 4767 RM RM
3 4,776,880 3,522,210 0.74 74
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30. END
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