Tibetan Grill

Author Kyle Caulford

Date 10/6/2020
Purpose To consolidate profit and loss statements from
Region 5 (Illinois and Iowa) Tibetan Grill franchises
into a single summary report and to compare each
store's profit and loss statement against industry
benchmarks.
Tibetan Grill
Region 5: Illinois and Iowa Franchises
Annual Profit & Loss Statement ending March 31, 2021

SALES 2021 2020 2019

Food Sales $ 20,619,586 $ 20,102,245 $ 19,618,084
Beverage Sales 4,502,242 4,472,844 4,408,640
TOTAL SALES 25,121,828 24,575,089 24,026,724

COST OF GOODS SOLD

Food Costs 6,428,829 6,258,741 6,177,207
Beverage Costs 1,335,278 1,323,674 1,297,238
TOTAL COST OF GOODS SOLD 7,764,107 7,582,415 7,474,445

PAYROLL COSTS
Wages 6,893,950 6,615,979 6,425,500
Employee Benefits 1,514,696 1,493,458 1,469,018
Payroll Tax 840,785 821,174 812,383
TOTAL PAYROLL COSTS 9,249,431 8,930,611 8,706,901

PRIME COSTS 17,013,538 16,513,026 16,181,346

OPERATING EXPENSES
Maintenance 519,550 514,692 499,286
Utilities 982,183 967,814 944,864
Administrative 581,253 576,940 564,392
Marketing 546,250 547,117 532,353
Other Expenses 503,155 497,688 491,588
TOTAL OPERATING EXPENSES 3,132,391 3,104,251 3,032,483

CONTROLLABLE PROFIT 4,975,899 4,957,812 4,812,895

OCCUPANCY COSTS
Rent 1,318,075 1,317,573 1,297,008
Property Taxes 711,020 708,352 699,697
Insurance 526,002 524,736 512,620
TOTAL OCCUPANCY COSTS 2,555,096 2,550,661 2,509,325

INTEREST AND DEPRECIATION

Interest 777,214 767,568 749,987
Depreciation 429,725 422,800 414,500
TOTAL INTEREST AND DEPRECIATION 1,206,939 1,190,368 1,164,487
PRETAX PROFIT $ 1,213,864 $ 1,216,783 $ 1,139,083
 2018 2017
$ 19,511,808 $ 18,871,379
4,396,538 4,233,570
23,908,346 23,104,949

6,135,222 5,930,337
1,309,206 1,245,023
7,444,428 7,175,360

6,353,000 6,232,500
1,483,474 1,408,403
812,659 791,944
8,649,133 8,432,847

16,093,561 15,608,207 for more info

497,029 477,364
940,007 907,245
567,450 539,979
535,203 512,000
492,821 471,332
3,032,510 2,907,920

4,782,275 4,588,822 Terms and Definitions'!C18

1,307,504 1,255,377
703,161 671,755
509,958 491,923
2,520,623 2,419,055

743,774 716,272
420,400 400,700
1,164,174 1,116,972
$ 1,097,478 $ 1,052,795
Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 5,371,576 82.2%
Beverage Sales 1,163,073 17.8%
TOTAL SALES 6,534,649 100.0%

COST OF GOODS SOLD

Food Costs 1,669,965 31.1%
Beverage Costs 324,816 27.9%
TOTAL COST OF GOODS SOLD 1,994,781 30.5% 30.0%

PAYROLL COSTS
Wages 1,740,000 26.6%
Employee Benefits 414,000 6.3%
Payroll Tax 220,845 3.4%
TOTAL PAYROLL COSTS 2,374,845 36.3% 35.0%

PRIME COSTS 4,369,626 66.9% 65.0%

OPERATING EXPENSES
Maintenance 100,000 1.5%
Utilities 285,655 4.4%
Administrative 143,200 2.2%
Marketing 126,000 1.9%
Other Expenses 101,425 1.6%
TOTAL OPERATING EXPENSES 756,280 11.6%

CONTROLLABLE PROFIT 1,408,743 21.6% 22.0%

OCCUPANCY COSTS
Rent 360,575 5.5%
Property Taxes 193,204 3.0%
Insurance 125,491 1.9%
TOTAL OCCUPANCY COSTS 679,270 10.4% 10.0%

INTEREST AND DEPRECIATION

Interest 197,092 3.0%
Depreciation 113,500 1.7%
TOTAL INTEREST AND DEPRECIATION 310,592 4.8%

PRETAX PROFIT 418,881 6.4% 4.0%

Region 5
Franchise Number G5-01
Franchise Manager April Molinero
Franchise Location 563 Mack Street
Chicago, IL 60623

Contact Number (773) 555-2061

Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 1,784,016 84.3%
Beverage Sales 332,109 15.7%
TOTAL SALES 2,116,125 100.0%

COST OF GOODS SOLD

Food Costs 516,439 28.9%
Beverage Costs 109,509 33.0%
TOTAL COST OF GOODS SOLD 625,948 29.6% 30.0%

PAYROLL COSTS
Wages 562,500 26.6%
Employee Benefits 130,500 6.2%
Payroll Tax 72,581 3.4%
TOTAL PAYROLL COSTS 765,581 36.2% 35.0%

PRIME COSTS 1,391,529 65.8% 65.0%

OPERATING EXPENSES
Maintenance 33,000 1.6%
Utilities 87,750 4.1%
Administrative 44,550 2.1%
Marketing 39,000 1.8%
Other Expenses 53,672 2.5%
TOTAL OPERATING EXPENSES 257,972 12.2%

CONTROLLABLE PROFIT 466,624 22.1% 22.0%

OCCUPANCY COSTS
Rent 112,500 5.3%
Property Taxes 44,846 2.1%
Insurance 39,671 1.9%
TOTAL OCCUPANCY COSTS 197,016 9.3% 10.0%

INTEREST AND DEPRECIATION

Interest 57,747 2.7%
Depreciation 32,600 1.5%
TOTAL INTEREST AND DEPRECIATION 90,347 4.3%

PRETAX PROFIT 179,261 8.5% 4.0%

Region 5
Franchise Number G5-02
Franchise Manager Ramón Suarez
Franchise Location 340 Lotus Street
Des Moines, IA 50312

Contact Number (515) 555-3686

Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 5,361,021 81.8%
Beverage Sales 1,195,716 18.2%
TOTAL SALES 6,556,737 100.0%

COST OF GOODS SOLD

Food Costs 1,735,398 32.4%
Beverage Costs 366,021 30.6%
TOTAL COST OF GOODS SOLD 2,101,419 32.0% 30.0%

PAYROLL COSTS
Wages 1,725,750 26.3%
Employee Benefits 401,250 6.1%
Payroll Tax 274,461 4.2%
TOTAL PAYROLL COSTS 2,401,461 36.6% 35.0%

PRIME COSTS 4,502,880 68.7% 65.0%

OPERATING EXPENSES
Maintenance 172,500 2.6%
Utilities 244,374 3.7%
Administrative 156,021 2.4%
Marketing 144,000 2.2%
Other Expenses 172,224 2.6%
TOTAL OPERATING EXPENSES 889,119 13.6%

CONTROLLABLE PROFIT 1,164,738 17.8% 22.0%

OCCUPANCY COSTS
Rent 330,900 5.0%
Property Taxes 190,350 2.9%
Insurance 134,136 2.0%
TOTAL OCCUPANCY COSTS 655,386 10.0% 10.0%

INTEREST AND DEPRECIATION

Interest 213,024 3.2%
Depreciation 94,200 1.4%
TOTAL INTEREST AND DEPRECIATION 307,224 4.7%

PRETAX PROFIT 202,128 3.1% 4.0%

Region 5
Franchise Number G5-03
Franchise Manager Sajja Adulet
Franchise Location 423 South Canfield Avenue
Chicago, IL 60607

Contact Number (312) 555-8817

Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 1,050,387 81.3%
Beverage Sales 241,652 18.7%
TOTAL SALES 1,292,039 100.0%

COST OF GOODS SOLD

Food Costs 311,879 29.7%
Beverage Costs 78,401 32.4%
TOTAL COST OF GOODS SOLD 390,280 30.2% 30.0%

PAYROLL COSTS
Wages 425,300 32.9%
Employee Benefits 84,117 6.5%
Payroll Tax 46,175 3.6%
TOTAL PAYROLL COSTS 555,592 43.0% 35.0%

PRIME COSTS 945,872 73.2% 65.0%

OPERATING EXPENSES
Maintenance 28,350 2.2%
Utilities 49,100 3.8%
Administrative 31,400 2.4%
Marketing 32,500 2.5%
Other Expenses 29,781 2.3%
TOTAL OPERATING EXPENSES 171,131 13.2%

CONTROLLABLE PROFIT 175,036 13.5% 22.0%

OCCUPANCY COSTS
Rent 71,200 5.5%
Property Taxes 38,400 3.0%
Insurance 29,350 2.3%
TOTAL OCCUPANCY COSTS 138,950 10.8% 10.0%

INTEREST AND DEPRECIATION

Interest 36,200 2.8%
Depreciation 18,400 1.4%
TOTAL INTEREST AND DEPRECIATION 54,600 4.2%

PRETAX PROFIT (18,514) -1.4% 4.0%

Region 5
Franchise Number G5-04
Franchise Manager Travon Hughes
Franchise Location 122 Henke Street
Rockford, IL 61101

Contact Number (815) 555-8275

Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 1,201,300 81.5%
Beverage Sales 272,652 18.5%
TOTAL SALES 1,473,952 100.0%

COST OF GOODS SOLD

Food Costs 391,481 32.6%
Beverage Costs 85,214 31.3%
TOTAL COST OF GOODS SOLD 476,695 32.3% 30.0%

PAYROLL COSTS
Wages 415,400 28.2%
Employee Benefits 80,250 5.4%
Payroll Tax 34,700 2.4%
TOTAL PAYROLL COSTS 530,350 36.0% 35.0%

PRIME COSTS 1,007,045 68.3% 65.0%

OPERATING EXPENSES
Maintenance 30,250 2.1%
Utilities 49,871 3.4%
Administrative 35,117 2.4%
Marketing 37,500 2.5%
Other Expenses 24,158 1.6%
TOTAL OPERATING EXPENSES 176,896 12.0%

CONTROLLABLE PROFIT 290,011 19.7% 22.0%

OCCUPANCY COSTS
Rent 85,250 5.8%
Property Taxes 43,175 2.9%
Insurance 35,288 2.4%
TOTAL OCCUPANCY COSTS 163,713 11.1% 10.0%

INTEREST AND DEPRECIATION

Interest 44,800 3.0%
Depreciation 29,250 2.0%
TOTAL INTEREST AND DEPRECIATION 74,050 5.0%

PRETAX PROFIT 52,248 3.5% 4.0%

Region 5
Franchise Number G5-05
Franchise Manager Tami Brooks
Franchise Location 14 Clark Court
Iowa City, IA 52246

Contact Number (319) 555-8954

Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 2,931,720 81.5%
Beverage Sales 664,443 18.5%
TOTAL SALES 3,596,163 100.0%

COST OF GOODS SOLD

Food Costs 873,534 29.8%
Beverage Costs 198,624 29.9%
TOTAL COST OF GOODS SOLD 1,072,158 29.8% 30.0%

PAYROLL COSTS
Wages 1,044,750 29.1%
Employee Benefits 176,079 4.9%
Payroll Tax 72,624 2.0%
TOTAL PAYROLL COSTS 1,293,453 36.0% 35.0%

PRIME COSTS 2,365,611 65.8% 65.0%

OPERATING EXPENSES
Maintenance 96,300 2.7%
Utilities 120,744 3.4%
Administrative 93,765 2.6%
Marketing 93,600 2.6%
Other Expenses 58,383 1.6%
TOTAL OPERATING EXPENSES 462,792 12.9%

CONTROLLABLE PROFIT 767,760 21.3% 22.0%

OCCUPANCY COSTS
Rent 183,750 5.1%
Property Taxes 99,594 2.8%
Insurance 90,966 2.5%
TOTAL OCCUPANCY COSTS 374,310 10.4% 10.0%

INTEREST AND DEPRECIATION

Interest 123,900 3.4%
Depreciation 74,000 2.1%
TOTAL INTEREST AND DEPRECIATION 197,900 5.5%

PRETAX PROFIT 195,550 5.4% 4.0%

Region 5
Franchise Number G5-06
Franchise Manager Julie Mahoney
Franchise Location 22 West Maple Street
Springfield, IL 62704

Contact Number (217) 555-0022

Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 1,597,424 82.4%
Beverage Sales 341,829 17.6%
TOTAL SALES 1,939,253 100.0%

COST OF GOODS SOLD

Food Costs 512,642 32.1%
Beverage Costs 91,489 26.8%
TOTAL COST OF GOODS SOLD 604,131 31.2% 30.0%

PAYROLL COSTS
Wages 545,250 28.1%
Employee Benefits 125,000 6.4%
Payroll Tax 64,189 3.3%
TOTAL PAYROLL COSTS 734,439 37.9% 35.0%

PRIME COSTS 1,338,570 69.0% 65.0%

OPERATING EXPENSES
Maintenance 34,150 1.8%
Utilities 73,289 3.8%
Administrative 41,400 2.1%
Marketing 42,150 2.2%
Other Expenses 38,162 2.0%
TOTAL OPERATING EXPENSES 229,151 11.8%

CONTROLLABLE PROFIT 371,532 19.2% 22.0%

OCCUPANCY COSTS
Rent 83,900 4.3%
Property Taxes 53,200 2.7%
Insurance 39,850 2.1%
TOTAL OCCUPANCY COSTS 176,950 9.1% 10.0%

INTEREST AND DEPRECIATION

Interest 55,178 2.8%
Depreciation 39,400 2.0%
TOTAL INTEREST AND DEPRECIATION 94,578 4.9%

PRETAX PROFIT 100,004 5.2% 4.0%

Region 5
Franchise Number G5-07
Franchise Manager Michael Cooper
Franchise Location 582 Corbett Avenue
Urbana, IL 61802

Contact Number (217) 555-7203

Tibetan Grill
Annual Profit & Loss Statement ending March 31, 2021

SALES Percent of Sales Benchmark

Food Sales $ 1,322,142 82.0%
Beverage Sales 290,768 18.0%
TOTAL SALES 1,612,910 100.0%

COST OF GOODS SOLD

Food Costs 417,491 31.6%
Beverage Costs 81,204 27.9%
TOTAL COST OF GOODS SOLD 498,695 30.9% 30.0%

PAYROLL COSTS
Wages 435,000 27.0%
Employee Benefits 103,500 6.4%
Payroll Tax 55,210 3.4%
TOTAL PAYROLL COSTS 593,710 36.8% 35.0%

PRIME COSTS 1,092,405 67.7% 65.0%

OPERATING EXPENSES
Maintenance 25,000 1.5%
Utilities 71,400 4.4%
Administrative 35,800 2.2%
Marketing 31,500 2.0%
Miscellaneous 25,350 1.6%
TOTAL OPERATING EXPENSES 189,050 11.7%

CONTROLLABLE PROFIT 331,455 20.6% 22.0%

OCCUPANCY COSTS
Rent 90,000 5.6%
Property Taxes 48,251 3.0%
Insurance 31,250 1.9%
TOTAL OCCUPANCY COSTS 169,501 10.5% 10.0%

INTEREST AND DEPRECIATION

Interest 49,273 3.1%
Depreciation 28,375 1.8%
TOTAL INTEREST AND DEPRECIATION 77,648 4.8%

PRETAX PROFIT 84,306 5.2% 4.0%

Region 5
Franchise Number G5-08
Franchise Manager Tony Caan
Franchise Location 195 Monterey Avenue
Peoria, IL 61607
Chicago, IL 60623
Contact Number (309) 555-7466
Tibetan Grill
Terms and Definitions

Benchmarks Industry Standard Notes

COGS Percent 30% Cost of goods as a percent of total sales

Payroll Percent 35% Total payroll costs as a percent of total sales
Prime Cost Percent 65% Cost of goods and labor as a percent of sales
Controllable Profit Percent 22% Controllable profit as a percent of total sales
Occupancy Percent 10% Total occupancy costs as a percent of total sales
Pretax Profit Percent 4% Pretax profit as a percent of total sales

Term Definition
Total Sales Total Sales measures the income from the sale of food and beverage
menu items at the franchise.

Cost of Goods Sold (COGS) Cost of Goods Sold measures the raw material cost for food and
beverage; increasing as sales volume increases.

Payroll Costs Payroll Costs measures the cost of salaries, wages, employee benefits,
and payroll taxes.

Prime Costs Prime Costs measures the sum of COGS and Payroll Costs and is
considered the largest area of expenditure for the franchise with
typically about 2/3rds of expenses coming from Prime Costs.

Operating Costs Operating Costs measures the expenses required for franchise
operation not directly related to COGS and Payroll Costs.

Controllable Profit Controllable Profit is profit considering only those expense factors
under the franchise's direct control (Prime Costs and Operating Costs).

Occupancy Costs Occupancy Costs are expenses directly related to occupancy of the
franchise space, including rent, property taxes, and insurance.

Interest Interest measures the amount paid in interest of loans to fund the
purchase and operation of the franchise; it does not include payments
made to pay off the principal of any loan.

Depreciation Depreciation measures the amount by which the franchise's material

assets (cooking equipment, seating space, infrastructure) decline in
value.
Pretax Profit Pretax Profit is the restaurant profit, calculated by subtracting Prime
Costs, Operating Expenses, Occupancy Costs, Interest, and Depreciation
from Total Sales. Successfully-run franchises should show a Pretax
Profit of at least 4% of their Total Sales.