Business Pitch Challenge - Student Handout

Business Pitch
Challenge
Battle of the Restaurants

Student Handbook
Introduction
Welcome to KPMG’s Business Pitch Challenge.
The year is 2023 and our panel of business moguls are looking to invest some of their hard-earned money in a local restaurant and
have asked for your expertise to help make this decision. There are three restaurants that are currently being considered:
• Edmond’s Brasserie
• Claire’s Bistro
• The Gondolier
Your challenge is to create and deliver a three-minute pitch for one of the above restaurants. To help you reach your decision we
have provided you with this information pack which provides some useful details on each restaurant.
Throughout this task, we want you to take on the role of auditors, business consultants and more –the full breadth of KPMG services!
You should try to think about the finances, the people, the organisational effectiveness and beyond.
You should use the background information in this pack about the restaurants as well as a set of supplementary information taken
from various publications that might be of relevance. Use this information alongside your own ideas, research and business instinct to
select a restaurant and prepare a pitch for the panel.
You will be looking to explain to the investors why they should purchase the restaurant, the benefits of your choice over the others
and what evidence you have to back up your ideas.
© 2022 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Confidential 2
Top Tips
• Remember to engage your audience with an interesting, innovative and informative pitch
• You are going to be recommending that the panel spend a substantial amount of money, they are likely to
have some questions at the end – be prepared for that!
• Plan your time carefully. You will need to read all of the available information and then discuss in your team
what your conclusion is and how you will present your findings.
• Try to put yourself in the shoes of an investor– ask yourself ‘If I was thinking of buying a restaurant, what
would I need to know? What would worry me?’
• Keep in mind that you can recommend changes, so although some restaurants might not be performing well
right now – with your advice they could be in the future
• This is a team activity, however the investors are also looking out for the best individual performers
This challenge tests the following skills and competencies:
• Collaboration and inclusion

• Presenting and making an impact
• Resilience
• Awareness business opportunities
• Delivering quality
• Demonstrating innovation and creativity
Preparing your presentation
Preparing for your Presentation • Conclusion
• Who are your audience? What do they already know? • Recap on your main points without repeating yourself
• How will you open your presentation? • Close with a strong positive message
• What is the message you want your audience to • Questions
remember?
• Don’t be scared to take questions – people are often
• How will you make it interesting? shy to ask
• Discuss your ideas with your group members. • Thank people for their question – “That’s a very good
question...”
Introduction • Listen
• Briefly tell the audience about you • Ask them to repeat if you didn’t hear or you are unsure
what they mean
• Introduce your subject in a clear and concise manner
• Breathe!
• Make it interesting from the start – give an example/play a
video/use a quote or fact etc. • You might not know the answer – That’s ok – be
honest – Offer to find out and go back to them or ask
the group
Main section • Ask does that answer your question?
• State the key points (i.e. Why you believe this is the best
investment)
• Keep it interesting
• Back yourself up with evidence
Restaurant One:
Edmond’s
Brasserie
Edmond’s Brasserie
• Edmond’s Brasserie is located in the heart of the city and has a maximum of 30 customers at any one time.
• At lunchtime there is one sitting and in the evening there are two sittings.
• Edmond’s Brasseries has seen constant revenue for the last five years, although wages and salaries have increased significantly,
largely due to the demands of chef Jean-Claude Bouton.
• The average spend per person is £20 at lunch time and £35 in the evening. A set menu is offered at these prices and they are
chosen by most customers.
• Friday and Saturday evenings are the most popular times to visit the brasseries, however the restaurant rarely reaches capacity
despite its’ prime location.
• Edmond’s Brasserie employs an old-school marketing consultant, Michael Blackwell.
• On the next page, you can see some extracts from recent financial statements that Edmond’s Brasserie supplied.
Financial Summary for the year ended 31 Customer Analysis
December 2022
Service Average No. of Customers
Revenue £614,900.00
Per Sitting
Cost of Sales £215,000.00
Lunch (Mon – Fri) 17
Gross Profit £399,900.00
Lunch (Sat & Sun) 20
Evening (Mon – Fri) 16
Gross Profit Margin 65%
Evening (Fri & Sat) 25
Evening (Sunday) 20
Salaries £180,000.00
Rent and Property Expenses £85,000.00
Other £55,000.00
Net Profit Before Tax £79,900.00

Tax £19,975.00
Total profit for the year £59,925.00
The Good, The Reasons to buy Problems
Bad and The
Opportunities
Potential Opportunities
Restaurant Two:
Claire’s Bistro
Claire’s Bistro
• Claire’s Bistro has a maximum capacity of 16 customers at any one time.
• The Bistro is closed at lunch time and in the evening there is a single sitting, except on Friday and Saturday when there are
two sittings.
• Claire’s Bistro has seen growing revenues for the past three years although this has been accompanied by growing expenses
and so gross profit margin has remained constant.
• Customers on a weekday spend approximately £15 whereas those at the weekend usually spend just over £20. There is no
set-menu offered.
• The Bistro does not take bookings but often reaches capacity.
• Claire also has some concerns about managing the business if it grows, she has doubts about her ability to keep control over
the finances as she currently struggles and seems to always be on the phone to the tax office.
• On the next page, you can see some extracts from recent financial statements that Claire’s Bistro supplied.
Claire’s Bistro
December 2022
Service Average No. of Customers
Revenue £115,400.00
Per Sitting
Evening (Mon – Fri) 14
Evening (Sunday) 12
Other £20,000.00
Net Profit Before Tax -£13,600.00

Tax £5,000.00
Total Profit For The Year -£18,600.00
Claire’s Bistro
Bad and The
Opportunities
Restaurant Three:
The Gondolier
The Gondolier
• The Gondolier has a maximum capacity of 60 customers at any one time. The Gondolier is next door to popular budget hotel Sleep
Ez.
• The restaurant is open for breakfast, lunch and dinner although there is only one sitting at each of these time periods. The Gondolier
also has a bar which is open to residents of the Sleep Ez hotel and others.
• The Gondolier has seen revenue decline over recent years and has received some negative press coverage.
• The Gondolier pays an annual fee to Sleep Ez and as a result all of the hotel customers eat breakfast in the restaurant (Sleep Ez
does not have its own restaurant).
• The residents of the hotel currently receive a 10% discount if they choose to dine in the restaurant for lunch or in the evening.
• On the next page, you can see some extracts from recent financial statements that The Gondolier supplied.
• Some of the staff at The Gondolier believe that the old technology and systems could be leading to some of the negative reviews.
The Gondolier
December 2022
Service Average No. of
Revenue £670,000.00
Customers Per Sitting
Lunch (Mon – Fri) 17
Lunch (Sat & Sun) 30
Evening (Mon – Thurs) 33
Evening (Sunday) 25
Fees to Sleep Ez £35,000.00
Other £70,000.00
Net Profit Before Tax £135,000.00

Tax £33,750.00
Total Profit For The Year £101,250.00
The Gondolier
Bad and The
Opportunities
Supplementary
Information
Business Weekly – Businesses in Profile
Edmonds Brasserie
£650,000
52 –56 Shaftesbury Avenue
• Established in 1998 by the current proprietors this popular restaurant is on the market as a result of their decision to
relocate abroad. Set in a popular location, the restaurant welcomes both local residents and tourists to enjoy its relaxed
ambience. The property has been recently refurbished and modernised.
• Edmond’s Brasserie boasts a well equipped kitchen with quality equipment and during 2012 was serving an average of
400 covers per week.
• The restaurant has received outstanding reviews in both the national and local press and offers cuisine of the highest
standards, freshly prepared by a Michelin starred chef
Claire’s Bistro
£300,000
17 –29 Southside Street
• This is an ideally situated property in a popular area of the city.
• The welcoming staff and homely décor mean the restaurant is popular and often has to turn customers away due to high demand.
• Currently there is capacity for 16 covers in one sitting and the restaurant offers evening sittings Monday to Sunday.
• Despite only offering evening sittings, the restaurant has grown over the last three years. Although it is currently not making a profit,
there is potential for Claire’s Bistro to succeed with some supportive management. The Bistro consists of a seating area downstairs
with washroom facilities (including baby-changing ) upstairs.
The Gondolier
£500,000
22 –26 Threadneedle Street
The Gondolier is an Italian themed restaurant which is situated next door to the popular budget hotel Sleep Ez. The restaurant is
currently owned by the shareholders of Sleep Ez, however, they are looking to sell in order to focus on their hotel chain. The Gondolier is
open for breakfast, lunch and dinner with customers from Sleep Ez using the restaurant for breakfast (Sleep Ez does not have its own
restaurant). Any relationship with Sleep Ez following the sale would need to be renegotiated by the new owners.
The restaurant is currently capable of seating 60 people per sitting and there is no scope for expansion due to its location in the built up
financial district. Customers largely consist of residents of the Sleep Ez hotel and business customers from the surrounding offices.
The Gondolier was last refurbished in 2007 although all kitchen equipment is still in good working order.
The hottest properties on the market this week
Property Weekly
£200,000
£350,000 £749,000 £405,750
30/32 Southside Street
An opportunity to acquire a Very well presented family Currently run by a

lock up takeaway which run hotel close to the city mother-daughter
This striking retail outlet is
has been renovated and centre with spacious 3 partnership this cosy
popular with both local
fitted to a very good bed owners eatery caters for the local
residents and tourists.
standard in an excellent accommodation. Plenty of population with a home
Located in the heart of the
trading position in the heart scope to increase in cooked lunch menu.
city it would be well suited
of the town centre. letting accommodation. There is scope to extend
for either a retail or dining
Daytime trading with the opening hours as well as
development.
potential for early evening the possibility to convert
trade. Ideal for either a the property into a retail
single operator or outlet.
partnership. Fully equipped Minimal work required
and ready to start trading and sellers and looking to
immediately. complete quickly.
20 year Lease remaining.
Current rent £94 per week.
Some or all of the services described herein may not be permissible
for KPMG audited entities and their affiliates or related entities.
kpmg.com/uk
The inf ormation contained herein is of a general nature and is not intended to address the circumstances of any particular
indiv idual or entity . Although we endeav our to prov ide accurate and timely inf ormation, there can be no guarantee that such
inf ormation is accurate as of the date it is receiv ed or that it will continue to be accurate in the f uture. No one should ac t on such
inf ormation without appropriate prof essional adv ice after a thorough examination of the particular situation.
© 2022 KPMG LLP, a UK limited liability partnership and a member f irm of the KPMG global organisation of independent member
f irms affiliated with KPMG International Limited, a priv ate English company limited by guarantee. All rights reserv ed.
The KPMG name and logo are trademarks used under license by the independent member f irms of the KPMG global
organisation. | CREATE: CRT144465A
Document Classification: KPMG Confidential

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Business Pitch

Battle of the Restaurants

This challenge tests the following skills and competencies:

• Collaboration and inclusion

• Edmond’s Brasserie employs an old-school marketing consultant, Michael Blackwell.

Net Profit Before Tax £79,900.00

Total profit for the year £59,925.00

Net Profit Before Tax -£13,600.00

Total Profit For The Year -£18,600.00

Net Profit Before Tax £135,000.00

Total Profit For The Year £101,250.00

An opportunity to acquire a Very well presented family Currently run by a

Document Classification: KPMG Confidential

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