Opportunity
Problem
Sweet Auborn District is in Atlanta Georgia and needs a cafe to provide food for residents and employees. The area is rapidly growing in population, and many places that offer food are full. The cafe that was serving the function, Cafe Apres/Diem moved out of the area leaving a opening.
Solution
The Watertower is an Atlanta full-service cafe/restaurant. It’s located in Atlanta’s Sweet Auburn District. The restaurant features a full menu of moderately priced “comfort” food influenced by African and French cooking traditions, but based upon time honored recipes from around the world. The Watertower’s cafe section features a coffeehouse, magazines, and a space for live performers.
Market
The US’s full-service restaurant and casual dining market is worth $100+ billion. Annual revenue increases exceed 5% annually. It is becoming more popular to eat out. One of the most common reasons cited by restauranteurs and industry associations is that women have joined the workforce in record numbers. The fact is that the dollar spent on food outside of home increased by nearly 20% between 1955 and 1995, which coincides with the increase in women joining the workforce. Two income earners per household means that neither one of them may have the time or ability to cook. The number of people who prefer to eat out rather than cooking has increased since the 1950s.
Competition
The competition’s general structure is a 70-150 seat restaurant with outside seating. The menu prices for entree’s range from $7.00 to over $25.00. All nearby establishments provide beer and wines at a minimum. Most of the establishments also offer liquor-spirits.
Why Us
The Watertower provides affordable and accessible high-quality food, coffee-based products and entertainment for thousands of residents and visitors to hotels within a five mile radius. In time, The Watertower will establish itself as a “destination” of choice to the many residents of the greater Atlanta metropolitan area, as well as numerous out-of-town visitors.
Expectations
Forecast
We expect income to approach $2.1 million for calendar for the first year in business. By the end of the third, it should rise to $2.57million.
Financial Highlights by Year
Financing Needed
We will start with getting $214,000 dollars to get going. That is $124,000 from investor 1 and $64,000 from investor 2. We will also be getting a $30,000 loan. The loan and investment will be paid back in three years.