Bar Business Plan Essay
The ambiance and d©core will be comfortable and relaxing and with the benefit of light Jazz in the aground, the bar and grille will be a one of a kind experience in the suburbs. The owners and staff are constantly aware of patrons changing likes and dislikes and the bar and grille will act quickly to make changes to meet these needs. 5. 1 STOW Analysis The following information summarizes the STOW analysis. STOW stands for strengths, weaknesses, opportunities and threats. A STOW analysis is a method for strategic planning that evaluates these four elements as they relate to the business objectives. . 1. 1 Strengths Relatively easy entry and low capital outlay. Committed owners with combined 35 years industry experience. The N.B.&G will be a unique one of a kind experience in its suburban location. Targeted, specific focus on its customers creates a memorable experience for its patrons resulting in repeat business. 5. 1. 2 Weaknesses Disorderly patrons can potentially harm both business reputations or cause collateral damage. Employee theft can make or break a bar business. Management’s exclusive use of the POS system mitigates this risk.
Very specific target market – if the target market was broader the owners
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Employees will be rewarded financially for providing impeccable service with opportunities to benefit in profit sharing. All staff are hand selected and share the same core beliefs of the owners; everyone will be trained to be keenly aware of patrons and anticipate their needs before the customer does, for example always offering to promptly show them to their table, graciously asking to hang their coats, and bring them their drinks expediently. 5. 3 Unique Selling Proposition (USPS) The N.B. will be a small, casual local bar.
The bar features a vast selection of hand crafted beers – both local and imported, as well as an impressive wine selection. The bar features traditional pub fare as well as daily specials prepared by a formally rained culinary chef. With its ‘lighter’ music including live Jazz and acoustic guitar performances on weekends and some evenings, the N.B. will be the alternative to its louder more raucous competitors. Although similar bars are located in downtown West Palm Beach, the N.B. is specifically designed to fill the void in the suburbs. . 4 Competitive Edge The N.B. specifically caters to its target market and is truly a unique local bar experience. The bar differs in its d©core, its extensive beer and wine offerings, culinary choices and music style; the N.B. patrons cannot get this experience in any other ar within a 5 mile radius. 5. 5 Marketing Strategy and Positioning The N.B. is centrally located on the northwest corner of Cerebrates Boulevard and Military Trail. Traffic counts approximate 42,000 daily.
In addition to its prime location, the N.B. will rely on: Advertising – Outdoor Signage – Grand Opening Word of Mouth According to the Bob Johnson with Beverage Management Institute in Clearwater, South Carolina, the only cost-effective way to advertise a bar is word-of-mouth. “When you don’t have word-of-mouth working for you, you are in serious trouble. It’s not necessarily terminal. There are still ways to get some advertising and marketing out there without spending a ton of money. But anytime you reach into your own pocket to buy advertising for a bar, it’s not good. Word-of-mouth advertising is priceless,” he continues. “It means everything is right. Everything is happening. The bar is alive. Your employees love working there. They are talking and saying great things about the place, and that is passed on to your customers. The customers love being there, and they tell other customers. If you can get to that point, it’s Just priceless. ” 5. 5. 1 Positioning Statement The owners have a combined 35 years industry experience in restaurant and bar management and fully support the operation.
The N.B. will provide a vast collection of handcrafted beers and wine, provide Jazz music and gourmet food, and will strive to be the premier bar Where the locals go’ in suburban Palm Beach County. The N.B.&G will go above and beyond the call of duty making patrons come back and tell everyone they know. 5. 5. 2 Pricing Strategy The N.B.&G’s pricing will be similar to the competitor’s (competition based pricing) Minimally Ana management may consoler lowering Errol prices Minimally to attract Minimal tarots.
However, near term, when the N.B.&G captures at least 2% of the local market, management plans to price alcohol and food to be more reflective of acquisition costs. The menu items are moderately priced. Appetizer range from $8- $12, burger plates and wraps range from $9-$12 and the daily gourmet plates average $17. 00. 5. 5. 3 Promotion and Advertising Strategy The N.B.&G’s primary promotion and advertising strategy will be outdoor street signage and word of mouth. Additionally the bar is planning a grand opening in September, XX. The N.B. will open mid August XX with a grand opening scheduled for September XX.
The early opening date will allow the staff to familiarize themselves with operations and customer interfacing. In addition, the N.B. will participate in select promotions annually. Once the bar is up and running, management will determine which nights need a boost. Historically, bars are busiest Friday and Saturday nights, with Thursdays coming in third place. The N.B. might decide to create an open mimic night say on Tuesdays or Wednesday evenings. In addition, the bar will have promotional events on holidays such as Cinch De Mayo and the 4th of July. Management anticipates profit to equate to XX the cost of advertising the promotion.
In order to maintain the high energy levels during the promotions, all prizes will be awarded at the end of the evening. That way, patrons will have to stay all night to see whether or not they’ve won the grand prize. 5. 5. 4 Website The N.B.&G will have website featuring the menu items, phone number, hours of operation, events calendar and map. The website will also have links to its Backbone Page. 5. 5. 5 Marketing Programs The owners of the N.B.&G will rely on a combination of customer feedback / sales ports captured from the POS to determine how well the bar is performing.
Customer comment cards will be available debatable and guests will have the option to receive discounts on appetizer when the card is submitted. Additionally, the neighborhood market will utilize a local ‘mystery shopper’ company. All employees will be made aware of the N.B.&G’s commitment to customer service and this additional tool to be used to evaluate employee performance. 5. 6 Sales Strategy The patrons will be warmly greeted immediately upon entering the bar. The objective at the N.B. is to make everyone feel at home and be the place Where everyone knows your name’.
Upon finding a comfortable location either at the bar, a cozy booth, or high top table, patrons will be asked for their drink and food order. Employees will be trained to cross sell high margin items. The N.B.&G truly values its employees and provides them with the very best training – and therefore the best service. Management believes that this investment in its employees ensures satisfied customers and in turn repeat business, leading to increased revenues. The N.B.&G will be one of the few places that will truly make people happy.
The N.B.&G staff will make ere patrons are comfortable, offer coffee, and hang coats for them. The owner will come to the table or booth and not Just ask is everything okay, but is going to look to see what’s wrong before he/she even comes to the table. Employees will offer samples from the menu at no charge, and make fresh coffee because they know it’s been sitting out for a while. At the N.B.&G, the staff goes above and beyond the call of auto wanly makes patrons come Tack Ana tell everyone teen Know. Forecast The following table demonstrates the annual sales forecast: Table 5. . 1 Annual Sales Forecast 5. 6. 2 Sales Programs The N.B.&G employees will be the primary salespeople and will participate daily in the tip pool. Employees will participate in ongoing training and be compensated for their accomplishments as well. The N.B.&G has a strong belief that the bar only performs as well its employees. 5. 7 Legal The N.B.&G will be a C Corporation recognized in the State of Florida. The bar is currently in the process of obtaining the following licenses: liquor liability license, food service license, sales tax license, and entertainment permit. 5. Milestones The following milestones will guide the N.B.&G to meet its goals: Table 5. 8 Milestones Milestone Date Secure space and negotiate lease terms July XX Complete Retrofit and Build-out July XX Furnish restaurant and bar area July XX Obtain and meet necessary licensing requirements Gauge XX Purchase inventory, kitchen equipment and POS system Gauge XX Interview and hire employees Gauge XX Grand Opening Seep XX Hire accountant when revenues exceed $500,000 Year Four 5. 9 Exit Strategy In the event that sales drop more than 5% for more than four consecutive quarters, the bar will have to liquidate.
After employee’s compensation, furniture, and equipment will be sold at auction to repay lenders. 6. Organization and Management The following information provides the organizational components germane to the N.B.. 6. 1 Organizational Structure The N.B. will be owned equally by Ben Davis, Roberta Gary and Danny Zinc each with 33. 3% ownership interest. General duties will include review of daily operations, inventory control, employee training, employee hiring and firing, ordering supplies, and routine maintenance and upkeep of the bar, equipment and facilities management.
Danny Zinc will be head chef and oversee the day kitchen staff personnel, including 1 line and 1 prep cook. The owners will also hire wait staff and retainers. All full time employees will be compensated with benefits including health insurance and education and training. They will have an opportunity to participate in profit sharing. 6. 2 Management Team Mr.. Davis, a graduate of Florida Atlantic University left the corporate world of Pratt and Whitney behind over ten years ago to establish two neighborhood-based, independently owned wine bars. These gathering places showcase fine wines with exemplary food offerings.
Mr.. Davis has over a decade of experience in management, project development, and marketing providing the foundation for his business operations, including site selection, rehabilitation and construction and investor financing. In addition to overseeing the day to day operations (“back end”), Mr.. Davis fully enjoys the “front end” of the business as well, by interacting with customers to ensure their experience is constantly improving. Ms. Roberta Gary brings over ten years business and nightclub experience. A Florida native with a Masters of Business Administration from the University of Florida, Ms.
Gary began her career as an Event coordinator Tort ten Ralston, Ana teen move to Mall to act as unlocked manager for two South Beach bars. Ms. Gray is a keen talent scout and will screen local acts for live performances. Chef Danny Zinc was formally trained at the Florida Culinary Institute and has over fifteen years’ experience in the restaurant industry. Most recently he was employed at Imam’s famous Fontainebleau. Mr.. Zinc will prepare traditional both traditional bar fare along with local specialties such as fresh Atlantic Grouper and Amah Amah.
Mr.. Zinc, a colleague of Ms. Gary, met her while they were both employed at the Radios. 6. 3 Management Team Gaps Until the N.B. reaches $500,000 in annual revenues, they will utilize a part time zookeeper to assist in payroll and income tax preparation (Reference legal and accounting line item on income statement). 6. 4 Personnel Plan The following chart shows employee salaries over the next three year period: Table 6. 4 Personnel Plan *While the salaries appear low, these employees all benefit from the daily tip pool.
Average take home pay is $60,000 and compares favorably with industry peers. 6. 5 Board of Directors The financial plan will cover the following: Required Cost of Start-up Profit and Loss Cash Flow Balance Sheet Financial Ratios 7. 1 Important Assumptions All 6 employees will be hired from day one of operations (the analysis does not assume employee growth during the initial three years of operations) Zero growth in employees’ salaries over the first three years, then after initial three years, employees will have opportunity for profit sharing.
Management salaries remain constant as well – $7,500 monthly over the initial three years of operations Average drink sales price: $5. 45 Average appetizer sales price: $10. 00 Average meal sales price: $12. 00 Annual sales allow economic cyclical. 7. 2 Start-up Costs Tenant (leasehold) improvement costs consist of new heating/air conditioning, electrical, plumbing, and painting, carpentry, flooring and smoke detectors. Equipment consists of two stoves and ovens, one walk in refrigerator, a freezer, two microwaves and a deep fryer.
Furniture and fixtures consist of leather chairs, stools and small booths along with a front and back bar. The back bar was secured from a consignment shop. The front bar will be constructed by Mr.. Davis’ brother-in-law who owns a cabinet company. To date, the owners have invested almost $60,000 out of pocket (42% equity) to meet these startup costs including payment of rent and security deposit. The owners are seeking a $22,000 working capital loan to meet start- up inventory requirements and, licensing requirements.
The loan will be secured by USC Telling on all Inventories Ana receivables. I nee are seeking a commercial loan In the amount of $61,000 to purchase kitchen equipment, supplies and bar supplies. Total start up costs a$142,512. Table 7. 2 Start-up Costs 7. 3 Source and Use of Funds The following table demonstrates the proposed sources and uses of funds: To date the owners have contributed approximately $60,000 or 40% of the total cost to start the business. Table 7. 3 Source and Use of Funds 7. Break-Even Analysis Total fixed costs are estimated to be $174,026.