Opportunity
Problem
It is a group activity to watch sports. It becomes tedious to go to each other’s homes. People need a place to go to watch, to cheer, to eat their favorite game foods, and get their favorite drinks. After a night of entertainment, they return home to their families happy.
Solution
Take Five Sports Bar and Grill is determined to be the top sports-themed restaurant in the Southeast Region. Our goal is always to be ahead of the rest. We want customers to have more enjoyment during their leisure times. We offer more televisions featuring more sporting events than anyone else in the region. The tabletop audio control system at every table allows the customer to enjoy the program of their choice without being interrupted by background noise. To achieve our overall goal of providing entertainment/dining experiences that are both enjoyable and value-added, we combine the elements of menu selection, atmosphere, ambiance, service, and ambience.
Market
Bars and Taverns are local gathering places where customers can eat bar food and drink alcohol-based and non-alcoholic drinks. Bars and taverns have historically been places that were able to establish a relationship with specific suppliers or vendors in order to market or increase awareness of particular brands. Bars and pubs have tables and barstools. There can be entertainment which includes; music, bands, comedy shows and dancing.
To increase attendance or attract certain audiences, specials might be offered. There are cocktail bars which generally serve light h’orderves or snacks. It can be attached to a restaurant or hotel. Wine bars cater to individuals that like upscale wines. Martini bars are for those who love martinis. There are many bars: biker bars; gay bars; lesbian bars; alternate bars; singles bars; college bars. The type of person attending the bar is generally described by the specific adjective. Minors can have restricted access based on time of day or individual the person is accompanied by. Most municipalities regulate hours of operation and zoning laws.
Competiton
Technomic’s BarTAB report (Trends in Adult Beverage), revealed that the Top 100 Nightclub & Bar venues in 2013 generated $1.5 billion in total revenues. More than two-thirds (68.2%) of operators surveyed experienced revenue growth in 2012, and nearly two-thirds of them (31.4%) reported revenue growth in excess of 10%. Encore again, the top nightclubs outperformed the overall industry. Bar and nightclub revenue grew 3.9% between 2012 and 2013. The industry will continue to face competition from other industries, such as restaurants and people who prefer to drink at home through 2023.
The distilled spirits industry is very lucrative. But, both federal and state taxes play a major role in the industry. In 2005, The National Center for Policy Analysis (NCPA) reported that thirteen states sought increases in taxes and related fees on alcoholic beverages. Taxes on distilled spirits came to $0.21 an ounce. According to the Distilled Spirits Council in the United States, “distilled spirit is one of most heavily taxed products in the United States.” A typical bottle of distilled spirits costs more than half the amount that it costs to purchase. This is due to some tax. The resulting effect on the entire hospitality industry is wide-reaching, as the DSC goes on to say “When beverage alcohol taxes are increased, it creates a devastating ripple effect on jobs throughout the entire hospitality industry.”
Distilled Spirits Council reported supplier sales rose 4 percentage points to $23.1 million in 2014 and U.S. total volume growth increased 2.2%, to 210 millions cases. The U.S. market’s total retail sales of distilled spirits are estimated at nearly $70B. This represents hundreds of thousands jobs in the hospitality and more than $20 billion in tax revenues to all levels of government.
The U.S. Department of Commerce reported a 5.2 percent increase in adjusted alcohol sales to nearly $9.2Bn in June 2008, compared to the same time last year. According to the NCPA for 2006, the Federal excise duty collected from distilled spirits was $4.4Billion. The beer category received $3.6Billion and the wine category $800M. Additionally, state taxes during that same time reached nearly $5 billion.
From the total of 58.829 establishments in 2009 there was 20.2 percent that were broadly classified as drinking spots. This accounted to 11,502 establishments.
2009 revenues were 1 billion. The general classification included 6.2 percent with 3,523 companies and $858.9m 2009 revenues. 20.4 per cent were considered bars with 11,569 establishments. 31.2 percent were considered taverns. Smaller portions of this segment were made up of saloons, beer gardens, and wine bars. The market share of night clubs, discotheques, and cabarets was 8 percent. This equated to 4,541 establishments that generated $1.89B in 2009 combined.
Why Us
Take Five Sports Bar and Grill strives for the title of Southeast Region’s premier sports restaurant. Our goal is always to be ahead of the rest. We want customers to have more enjoyment during their leisure times. We offer more televisions with sporting events than any other 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.
Expectations
Forecast
In the first year, we will make a net profit in excess of $445,000. As 10 months of operations have been completed, the confidence level regarding final first year numbers has increased. Actual figures are available for the first ten months of start-up expenses, sales revenues, operating expenses, and other costs.
Financial Highlights for the Year
Finance is required
We will use $625000.
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