JerzeyItaliano currently achieves sales of 1.8 million with rent ...

[genevieve1028]

JerzeyItaliano currently achieves sales of 1.8 million with rent of 60,000 per year. The current location is 2,500 square feet. A prospective location's rent is 270,000 year and the location is 6500 square feet.
 
  JerzeyItaliano hired a restaurant consultant (you) for help.
 
  1) What is the current rent factor?
  2) What revenue will be required to achieve the same rent factor?
  3) Where will you be willing to go (rents generally 6-8)

Question 2

Explain the difference between butter and light butter.
 
  What will be an ideal response?

[vboyd24]

Answer to Question 1

1) 60,000/1.8 million= 3.33
2) 270,000/3.33=8.1 million
3) (270,000/6) = 4.5 million
a. Even this amount is a lot. Achieving 4.5 million in revenue will be difficult even with 6500 square feet

Answer to Question 2

Butter has fillers. Light butter is 50 percent butter with added water, emulsifying agents, flavoring agents and coloring.

[genevieve1028]

Both answers were spot on, thank you once again

[vboyd24]

Great! Please up vote