Take Five Sports Bar and Grill has established a successful presence in the food and beverage service industry. The flagship location in suburban Anytown (Medlock Bridge) will gross in excess of $2 million in sales in its first year of operation. First year operations will produce a net profit of $445,000. This will be generated from an investment of $625,000 in initial capital. Since 10 months of operations have already been completed the confidence level for final first year numbers is extremely high. The first 10 months of start-up costs, sales revenues, and operating expenses are actual.
Expansion plans are already underway. Owner funding and internally generated ...view middle of the document...
The management of Take Five has demonstrated its concept, execution, marketability, and controls, and feels confident of its ability to successfully replicate the quick ramp-up of the Medlock Bridge location to additional venues.
The following objectives have been established:
• Have all five stores operational by Year 3 with a sequential time-line of openings.
• Maintain tight control of costs and operations by hiring quality management at each location and utilizing automated computer control.
• Keep food cost under 32% of revenue.
• Keep beverage cost under 21% of revenue.
• Select only locations that meet all the parameters of success.
• Grow each location to the $3 to $5 million annual sales level.
Take Five Sports Bar and Grill strives to be the premier sports theme restaurant in the Southeast Region. Our goal is to be a step ahead of the competition. We want our customers to have more fun during their leisure time. We provide more televisions with more sporting events than anywhere else in the region. We provide state-of-the-art table-top audio control at each table so the customer can listen to the selected program of his or her choice without interference from background noise. We combine menu selection, atmosphere, ambiance, and service to create a sense of "place" in order to reach our goal of over-all value in a dining/entertainment experience.
1.3 Keys to Success
The keys to success in achieving our goals are:
• Product quality. Not only great food but great service.
• Managing finances to enable new locations to open at targeted intervals.
• Controlling costs at all times without exception.
• Instituting management controls to insure replicability of operations over multiple locations. This applies equally to product control and to financial control.
The key elements of Take Five's restaurant store concept are as follows:
• Sports based themes--The company will focus on themes that have mass appeal.
• Distinctive design features--All stores will be characterized by spectacular visual design and layout. Each store will display a collection of authentic sports memorabilia.
• High profile locations--The company selects its store locations based on key demographic indicators, including traffic counts, average income, number of households, hotels, and offices within a certain radius.
• Celebrity events--The company stores will be distinguished by the promotional activities of sports celebrities and by media coverage of appearances and special events.
• Retail merchandising--Each store will include an integrated retail store offering premium quality merchandise displaying the company's logo design. In addition sports memorabilia will be sold.
• Quality food--Each Take Five store will serve freshly prepared, high quality, popular cuisine that is targeted to appeal to a variety of tastes and budgets with an emphasis on reasonably and moderately priced signature...