Sample Business Plan on Bar and Grill Business Plan
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EXECUTIVE SUMMARY
The Business Concept
Your Company Name Bar and Grill, LLC (Company Name or the Company) will be a restaurant located in Anytown, YourState. It will be a bar and grill restaurant offering delicious food and beverages coupled with fun entertainment. The restaurant will be approximately 4,200 square feet and will include a bar area, table and chair seating, a stage and a small dance floor. Seating on chairs will total 88 and the bar area can seat an additional 44 people. Your Company Name will provide a range of entertainment options including multiple TV sets to watch sporting events, billiards tables and live music.
The Company’s restaurant will present well-liked food items in a relaxing environment. Company Name will target all age groups looking for an economical dinner and will also focus on the over 21 crowd after 9:00 PM in evenings. It will also target the local working class lunch crowd. The Bar and Grill will also provide jobs for the local community.
The Company’s location is in the fastest growing county in YourState (Delaware) and this is a growing and bustling area. The population has grown by 53.80 percent since the 2000 census and the current population is 13,795. The Company’s restaurant will be located in a new plaza area where a Kroger is located. This plaza provides easy access and attracts many local residents as well as visitors who will pass by and be able to see the restaurant.
The Anytown area does not currently have a quality Bar and Grill. The only restaurants in the immediate area are fast food restaurants and the closest restaurants which offer food, alcohol, and entertainment are 8-10 miles away.
Company Name will take advantage of the growing activities in the community to drive its growth. Families, couples and singles are always seeking fun dining experiences and Company Name will offer the only non-fast food within 8 miles. The Company’s restaurant will offer diners a lively atmosphere and great food and beverages at reasonable prices.
The Company expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotion dollars, and the number and kinds of competitors.
Projections call for the Company to generate revenues of $520,000 in its first twelve months. Company Name will achieve strong growth over the next several years, reaching $694,000 in revenues and almost $200,000 of net income by the fifth year.
The Market Opportunity
Restaurant Industry
By year-end 2007, according to the 2007 National Restaurant Association (NRA) Economic Forecast, industry sales will reach $537 billion, a solid 5% increase over 2006 sales. Currently there are 935,000 restaurant/foodservice businesses in the United States. Research shows approximately 12.8 million individuals work in the industry, with another 2 million to be added within the next decade.
The NRA reported, “The industry is heading into 2007 as an economic powerhouse and an essential part of Americans' lifestyle, with Americans spending 47.9% of their food budget in restaurants.” Steven C. Anderson, president and chief executive officer of the Association, added, “Restaurants touch millions of lives every day by serving quality meals, providing abundant career and employment opportunities for individuals of all backgrounds, and being a driving force in the U.S. economy and local communities nationwide. The restaurant industry will enter its 16th consecutive year of real growth in 2007, and will have a total economic impact that will exceed $1.3 trillion.” 1
One interesting fact about diners is 46% of Americans say they are likely to use customer-activated ordering and payment terminals if made available. When interviewed, over 67% of those aged 18-to-34 said they would use a self-serve order and payment terminal if available: 71% of 18-to-24-year-olds; 64% of 25-to-34-year-olds. Another statistic shows Americans want their mealtimes back; 36% of adults say they are eating on–the-go less frequently, and 48% said they eat in their car less often.
Full-service and Quick-service Trends
Analysts predict an increase of 5.1% in full-service restaurant sales over 2006, reaching a total of over $181.6 billion. Quick-service restaurants are predicted to bring in slightly over $150 billion this year; a 5% increase over 2006. According to the NRA, total restaurant industry sales are expected to reach $537 billion in 2007. The quick-casual segment is expected to hit double-digit percentage increases making it one of the fastest growing segments in the industry in 2007.
Disposal income, especially among baby boomers, will help fuel consumer spending. Recent reports show that the Baby Boomer generation, born from 1946 to 1964, is very likely the healthiest 50+ generation in history. Adults between the ages of 55 and 64 are expected to increase by almost 50% from 2000 and 2010. 1, 2
U.S. Wine and Beer Consumption
Wine bars are expected to experience explosive growth in 2007. According to the 2007 edition of the Adams Wine Handbook, published by Adams Beverage Group, a division of business publisher M2MEDIA360, U.S. wine consumption has grown for the 13th consecutive year, rising 3.4% percent in 2006. Charles Forman, vice president and group publisher, Adams Beverage Group, is quoted as saying, “Wine sales have sustained this long-term growth thanks to the industry's success in appealing to a wide range of consumers. Sales were so strong that if the wine industry's expansion continues at this pace, the United States will become the largest wine market in the world by the end of the decade.” Eric Schmidt, research director at Adams Beverage Group, agrees saying, “Part of [the growth] is what wine has over the other beverage alcohol segments--it can boast about certain health benefits, and that can make a big difference. Wine's also become more approachable, and that's transcending everything. It's not so intimidating to order wine anymore.”
In 2006 wine consumption climbed to 283.1 million 9-liter cases; domestic wine sales jumped 2.6% to 209.4 million cases, while imported wines rose 5.7% to 73.6 million cases. Part of the industry’s increases sales is wine’s broad spectrum population appeal, especially among the much sought-after Millennials (consumers 21-30). For the first time, according to a recent Gallup poll, a majority of respondents claimed wine as their alcohol beverage of choice. Currently, Millennials and Baby Boomers account for more than half of today's wine consumers.
In 2006 researched showed that beer, wine, and spirit makers are all targeting the same audience of consumers. The Wine Market Council reported that 33% of consumers drink wine on a somewhat regular basis; 25% primarily drinks spirits or beer. 5
As far as volume, beer dominates the beverage alcohol market. The industry has felt the pressure to regain their market share, as witnessed by Anheuser-Busch's expensive "Here's to Beer" category campaign launched during the 2007 Super Bowl. Schmidt commented, “As big as the disparity is in the volumes, beer is very cognizant of [the growth of other categories]. They are not taking it lightly. Last year we saw 1.7% growth in the beer category. They're not maintaining the same momentum as the other segments. That they are spending a lot of time trying to understand what's going on is very meaningful.” 4
2006 Craft Beer Industry Statistics show: 3
- Total U.S. Craft Beer Industry Annual Dollar Volume: $4.7 billion.
- Growth of the craft beer industry was 12% by volume for 2006.
- The craft beer industry eclipsed 6.7 million barrels of craft beer produced in the U.S. in 2006.
- The fastest growing craft beer sector in 2006 was microbreweries (up 16%), showing customer support for local breweries.
- Craft beer is the fastest growing segment for supermarket scan data; 17.8% growth was stronger than all other alcohol beverage categories.
- Craft beer sales share is 3.20% by volume and 4.99 % by dollars.
- Craft beer industry sales have grown 31.5% over the last 3 years.
According the Gallup poll, “64% of Americans who say that they consume alcohol show a slight preference for beer (40%) over wine (34%) as their alcoholic beverage of choice, with liquor the favorite of 22%.” Research shows more Americans are regular drinkers than a decade ago. Because of the increase in regular drinking, the average number of weekly drinks Americans enjoy has increased significantly. According to the latest poll, the average drinker consumed 4.8 alcoholic beverages in the past week. Prior to 2001, the average number of weekly drinks had always been below four drinks, but has been above that mark since then. 6
The following results are based on a July 12-15, 2007, Gallup Poll:
Sports bars, where sports fans watch games on large-screen televisions, are great locations for casual food selections and sports entertainment. Bar and grills are an oasis for sports fans to escape daily chores and distractions that might ordinarily have spoiled their television viewing. There are approximately 6,000 sports bars in North America with HDTV display technology. Sports fans often drive considerable distance to see a big game in this format. The bar and nightclub industry includes about 50,000 locations with combined annual revenue of about $15 billion.
There is a large opportunity to build a dominant and respected bar and grill restaurant in this market space.
Operations of the Business
Company Name will target prospective customers within the general Anytown, OH area. The Company will provide lunch and dinner services as well as late night bar beverages.
The restaurant will be open seven days per week. Hours will be Monday - Saturday 11 AM - 2:30 AM and Sunday 12 – 6 PM.
The Company will buy its products and ingredients from reputable local providers. Food will include various beverages, appetizers, sandwiches and pizza. The restaurant will serve liquor and beer. Multiple television sets will be available in the background to watch sporting events and live entertainment (bands) will be featured on weekend nights.
Marketing efforts of the Company will focus on several activities. These include print advertising in local publications, local radio and/or TV, signage, referrals, and its web site.
The Company
Mission of the Company
Company Name believes that successful bars are based on an accurate understanding of their customer base and location. Your Company Name Bar and Grill's mission is to become a premier venue in the growing Anytown area for both residents and visitors.
To achieve this, Your Company Name will offer billiard games, many televisions for watching sporting events, live music, and top-notch food and beverages. Your Company Name will create an environment for people to relax, unwind, and enjoy themselves, with our goal being to satisfy the changing taste and expectations of our customers, in turn solidifying our place as a Anytown favorite. Our bar and grill will operate on the premise that satisfied customers are imperative to a sustainable business.
Company Structure
1. Legal Status
Company Name is an LLC organized in the state of XYZ. The Company is collectively owned by Mr. John Doe, Mr. James Doe, and Ms. Jane Doe.
2. Physical Location
The Company will operate out of facilities at 123 Any Street/ Anytown, LE 12345. This is in a new retail plaza development located at the SW corner of Hwy. 11/12 and SR 0 in Anytown, LE, Your County.
The Company will lease suitable business space to support its operations. This space includes a reception area, bar area, table and chair seating area, billiards table areas, a stage, dance floor an office and storage areas. It provides easy access to clients/employees with ample free parking.
3. Intellectual Property
Company Name intends building a website to market its bar and grill. There is no other proprietary intellectual property owned by the Company.
Company History
Company Name is a start-up venture. However, members of the management team have had varying degrees of experience in the restaurant/bar and grill industry.
In addition, the management team performed extensive research to determine the market viability and operational challenges of this type of business. Questions that were addressed include:
- What is the market opportunity (is there a need for the business)?
- What type of competition is located near-by?
- Can the targeted market support the business?
- What types of customers will the business attract?
- Are there suitable facilities in the area?
- How much start-up costs are needed?
- How much monthly revenue is needed to achieve break even?
Growth Strategy
Business Objectives
The Company is planning on strong growth in the next twelve months. It plans on achieving the following objectives:
- Open its bar and grill
- Grow monthly revenues
- Build a staff of caring and professional employees
- Grow twelve month revenue to $520,000
In succeeding years, Company Name will continue to grow its business and will achieve these objectives:
- Grow the annual number of customers each year
- Develop a strong reputation
- Achieve excellent customer loyalty by placing strong emphasis in the areas of outstanding service and support
- Maintain an experienced and professionally trained staff
- Attain $694,000 in annual sales in Year 5
Targeted Customers
Company Name has identified a clear and substantial target market. Targeted customers will include: