Given the below information, use the Hubbart Formula to calculate the minimum average spend per cover required to attain the desired ROI:
100-seat restaurant
Construction and start-up costs amount to $5,000,000
No additional working capital investment is required
100% of the capital cost will be raised in the form of equity
The projected average seat turnover is 3
The restaurant will be open 320 days a year
The investors require a 15% return on their investment annually
Income tax rate is 30%
Estimated undistributed expenses, not including income taxes, total $1,000,000
Forecasted average food cost is 30% of sales