Management Accounting for Food Pavilion Restaurant

Running head: MANAGEMENT ACCOUNTING
Management accounting
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1MANAGEMENT ACCOUNTING
Table of Contents
Introduction and background...........................................................................................................2
Restaurant description.....................................................................................................................2
Business objectives and mission......................................................................................................3
Competitive edge.............................................................................................................................3
Financial analysis.............................................................................................................................4
Assumptions................................................................................................................................4
Forecast of income statement......................................................................................................5
Forecast of balance sheet.............................................................................................................6
Performance analysis.......................................................................................................................7
Ratio computation........................................................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

2MANAGEMENT ACCOUNTING
Introduction and background
Food Pavilion will be the moderately priced restaurant that will have 75 seats and will
offer the family style foods. The business will be located in Edmonton Alberta, Canada. The
location is chosen for starting up the restaurant as it has more than 10,00,000 population and the
place is quite popular among the travellers from different places of Canada as well as the
travellers visiting from outside Canada. Among different menus the restaurant will serve pot
roast, pork chops, steaks in addition to wraps, hamburgers and different types of salads. Further,
the restaurant will offer the specialty selections for the children’s menu that will include smaller
portions and lighter options. The 3500 square feet space will be taken on rent that was previously
leased to an Italian restaurant. Although the same place was previously used as the restaurant the
previous owner taken away most of the equipments, furniture and fixtures and the owner of Food
Pavilion will decorate it as per its own theme (Dubé, Brunelle & Legros, 2016).
Restaurant description
The restaurant will be located in Edmonton Alberta, Canada and will be owned 2 retired
professors John Almada and Freida Wright. It will serve different kinds of classic home-style
dishes starting from mashed potatoes, pot roasts to ice creams and patty melts. It will be opened
7 days a week from 12.00 pm to 11.00 pm. Theme that will be used by Food Pavilion is the
family style dining that is also known as the casual style dining. It will offer the entrees with
moderate price and menus will feature mix of the classic cuisines that will be individualized with
the signature dips, toppings and sauces. It will further offer non-disposable dishes, table side
services and will keep moderate price for the menus (Eravia & Handayani, 2015).

3MANAGEMENT ACCOUNTING
Business objectives and mission
Primary objectives of Food Pavilion are –
 To become premier family style restaurant in Edmonton Alberta, Canada
 Providing quality foods at reasonable prices along with exemplary services
Mission of the business is providing relaxing and unique dining experience that is similar
to the dining at home. Further the business will strive to achieve the goal through – (i) providing
the menu items with incorporation of quality ingredients at the reasonable prices (ii) being
mindful regarding the well being of the customers as well as staffs along with treating each
person with respect and dignity (Bradley et al, 2017).
Competitive edge
Main competitive edge of the business will be its people. Owners of Food Pavilion
believe that the business not only the foods are good but also qualities of the staffs are well as the
staffs are reflection of the business. As both the owners do not have much knowledge about the
restaurant business, specialized and experienced staffs will be hired for the restaurant in all
aspects. Long term goal of the business is hiring team members those are hand selected and are
honest towards the family values (Bradley et al, 2017). As the size of the business is lean as
compared to the big chain competitors the business will make changes quickly as per the
preference of its customers that will make them proactive. It has further been realized by the
owners that the Food Pavilion’s success will be gained through serving the quality foods and
offering friendly services. Further, at Food Pavilion, the cost accounting is very important as the
profitability for individual dishes varies significantly and the prices for the menu items will be
determined through that (Feerasta, 2017).