Thomas Snack Shack Business Case

1
Thomas Snack Shack Business Case

• Tina Krause
• BISM 2100
• FALL 2004

2
Presentation Outline

• Introduction to the case.
• Assumptions summary
• Startup costs summary
• Cash Pro-Forma
• Revenues and expenses outlook.
• Review of recommendations.
• Results of adding beer to the menu
• Result of increasing advertising
• Summary and closing

3
Introduction to the case

• Explanation of the concession stand
• Investigate the costs associated with the
  opening.
• Explain the capital of the owner
• Detail the loan required by Mr. Thomas

4
Assumptions Summary
5
Start-up costs
6

• The Cash Pro Forma Budget outlines the revenues
  and expenses estimated for the first fiscal year

7
Revenue and expenses outlook
8
Review of recommendations

• Add beer to the menu at charge of 3 every day
  except Sundays. Each beer costs 0.66
• Increase the amount of monthly advertising from
  325 to 1000

9
Results of adding beer to menu

• One out of every four customers purchase a beer
  versus a soda. This causes revenue of 3 per beer
  instead of 1 for a soda.
• Annual income predicted to fall from a net loss
  of only 4487.97 to 24,172.22

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Results of increasing advertising

• By increasing the monthly expenditure from 325
  to 1000, Thomas Snack Shack will be able to
  increase their clientele.
• Net income predicted to rise from a net loss of
  4487.97 to a net income of 5250.08

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Summary and closing

• Summarize of the present and future of Thomas
  Snack Shack.
• Close and answer questions