Following the business model, we will start outlining and structuring the sales plan, with an example of a restaurant. This business plan is the starting point for the business plan we propose to make.
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Restaurant Sales Plan Example
We want to open a restaurant and we are discussing the impact of our ideas and strategy presented in the Business model, in the sales plan or business plan.
Let's then define the sales plan, in 5 steps.
Step 1 – How many products do we sell per day
In this example we can start by analyzing and discussing whether, with the size of the room, the capacity of the kitchen and what we know about the competition, we will be able to sell 25 meals a day, with the restaurant already at cruising speed.
Reaching this value is not an easy task, as the most daring will say that selling 25 meals a day is not enough, as they only represent 50% of our maximum capacity and others, the more conservative, will say that it is not easy to attract customers, even considering this occupancy rate.
In fact, neither one nor the other will know what will happen, but this number of meals per day then becomes the starting point for the sales plan.
It's a sales plan principle. If we sell each meal at 9 euros, we will have 25×9€=225€ per day. We can think of the average volume of daily sales, as exemplified, but if we want, we can choose another way of planning, weekly or monthly.
Step 2 – What is the Sales Value of Each Product
Let's admit that everyone agrees that €9 is a good price, given the quality and competition. In our business plan example, are we going to sell all meals at €9 or will we have different dishes and each one with different prices?
It is a strategy discussion that involves knowing what material and human resources we have.
After some discussion and decisions have been made, we may arrive at the following draft business or sales plan.

If this is the plan, we have already reached an average daily sales value of €9,28, that is, 3% above what we initially thought.
3rd Step – Commercial Plan – Prices with or without VAT
We know that prices are with VAT (Value Added Tax) and is the amount the customer pays. But the value that “enters” the company is not exactly this.
Let's see, then, what remains in the company and what tax we have to deliver to the State.

Considering the 23% VAT for all products, it means that the customer pays € 9,28 and for the restaurant is € 7,54. The rest is tax that will be handed over to the State.
But in reality, there are some products where VAT is 23% but others have a different VAT.
Since this is a sales plan, still under discussion, to help define the strategy, either we consider VAT at 23%, on all products, leaving the “somewhat inflated bills” or else we will make a plan in detail , putting the correct VAT on each item, which can complicate the process. We can also use an average VAT rate.
To work with an average rate, we can collect some sales receipts from the competition, put them together and do accounts.
Let's look at examples of calculating VAT on sales, using various competitor receipts
Example 1 – Receipt from a Competing Restaurant
The menu dish includes coffee and is priced at €9,00 with VAT, with coffee VAT of 13%. The total amount of VAT on the receipt is €1,04, which results in a value without VAT of 7,96€.
Note that the value with VAT / (1+percentage of VAT) = value without VAT, in this case €9.00/1,13=€7,96.
If a glass of wine is sold, the price is increased by €0,90, already with VAT at 23% (€0,17), that is, the wine glass has a value without VAT of €0,73.
Thus, the total invoice with VAT is €9,90
The total amount of VAT is €1,21 (1,04+0,17).
Total sales or revenue, excluding VAT, is €8,69 (7,96+0,73).
Finally, the Average VAT is (€9,90/€8,69) -1 = 0,139.
Average VAT rate 13,9%.
Example 2 - Receipt from Another Competitor
Menu of the day, €7,95, includes dish of the day, drink and coffee.
1 dishes of the day, €6,07, 13% VAT (€0,70), value without VAT of €5,37,
1 glass of wine, €1,31, 23% VAT (€0,24), value without VAT €1,07,
1 coffee, €0,57, 13% VAT (€0,07), value without VAT €0,50,
Total value without VAT=5,37€+1.07€+0,50€=6,94€
VAT amount=0,70€+0,24€+0,07€=1,01€
Average VAT rate, 7,95 / 6,94 = 14,6%.
Sample Size to Evaluate Average VAT
What should be the sample size of receipts?
I leave it to you, although I should mention that a sample of 100 items is a sample that gives reliable results. Statistically, with a sample of 100 elements, we get a error rate about 10%.
Finally, let's consider for our “accounts” that the average VAT rate is 15%.

Thus, instead of staying at the company an average of € 7,54 per dish, it is € 8,07, about 7% more than what we initially thought. This difference may give us a greater margin or may allow, within that margin, to have some type of promotions and loyalty programs. But this is a subject to discuss later.
4th Step – Sales of Other Products and Services
We will continue with the construction of the commercial plan, adding sales of other products, for example drinks, desserts and also whatever is in the idea and strategy that was thought.
Example with Sales of Other Products and Services
Let us admit that in addition to lunches we will sell coffees, drinks, breakfasts, desserts, group dinners and special dinners on Friday and Saturday. On Sunday the restaurant is closed for rest.
We add these offers to the average prices, excluding VAT, which we believe to be adjusted, and we build the following table with the sales or income values, as is also usually considered.

Step 5 – Adjust and Complete the Sales Plan
In this example of a sales plan, we need to know how many days per year we are going to plan for the sales of each of these offers.
Let's assume that after analyzing and discussing the values in this process, we arrived at this annual sales plan.

In this sales plan we have the value of income at the end of the year and we consider the 2nd year of activity as the cruise year.
If so, for the 1st year, that of launching the business, we can plan smaller sales.
In the following years, we can admit that sales grow with a value a little above, for example, the growth rate of the economy for Portugal. But we will leave this analysis for another article.
Thus, with the identification of the five steps to be taken in this process, to prepare a sales plan, the starting point for our business plan.
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