What was the cost of sales for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| Year Ended December 31, 2022 | 2021 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 3,566,598 $ | 3,041,453 |
| Advertising Charges | 1,503,874 | 982,160 |
| Franchising Fees | 95,050 | 99,592 |
| Total Franchise Revenues | 5,165,522 | 4,123,205 |
| Company owned restaurant sales | 2,896,104 | 2,976,981 |
| Cost of sales | (1,226,078) | (1,226,592) |
| Restaurant Gross Profit | 1,670,026 | 1,750,389 |
| Total Gross Profit | 6,835,548 | 5,873,594 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 5,729,761 | 7,611,396 |
| INCOME (LOSS) FROM OPERATIONS | 1,105,787 | (1,737,802) |
| OTHER INCOME (EXPENSE): | ||
| Interest income | 8,756 | 4,634 |
| Employee retention credit | - | 580,958 |
| Related party loan forgiveness | - | 567,961 |
| Interest expense | (51,235) | (40,408) |
| Other income (expense) | 6,208 | (12,623) |
| Total Other (Expense) Income, net | (36,271) | 1,100,522 |
| INCOME (LOSS) BEFORE PROVISION FOR | ||
| IN |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the cost of sales for the company-owned restaurants in 2022 was $1,226,078. This figure represents the direct expenses associated with producing and selling the goods and services in the company-owned restaurants.
The cost of sales is a critical factor in determining the profitability of Golden Krust Caribbean Restaurant's company-owned operations. It includes the cost of ingredients, packaging, and other direct expenses related to the food and beverages sold. Managing these costs effectively is essential for maintaining healthy profit margins.
For a prospective franchisee, understanding the cost of sales is crucial because it provides insight into the efficiency of the company-owned restaurants. While franchisees will have their own cost of sales based on their operations, the company's figures can serve as a benchmark. Franchisees should inquire about the specific factors that influence the cost of sales and strategies for managing these expenses effectively in their own Golden Krust Caribbean Restaurant locations.
It's important to note that the cost of sales reported in the FDD only reflects the expenses of the company-owned restaurants and may not be directly applicable to franchised locations. Franchisees should conduct their own due diligence to understand the specific costs they will incur in their operations.