| | >>Note: 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, ending July 1996. 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. |
| | 1.2.1 Have all five stores operational by 2009 with a sequential time-line of openings. |
| | 1.2.2 Maintain tight control of costs and operations. |
| | >>Note: By hiring quality management at each location and utilizing automated computer control |
| | 1.2.3 Keep food cost under 32% of revenue. |
| | 1.2.4 Keep beverage cost under 21% of revenue. |
| | 1.2.5 Select only locations that meet all the parameters of success. |
| | 1.2.6 Grow each location to the $3 to $5 million annual sales level. |
| | >>Note: 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. |
| | 1.4.1 Product quality. Not only great food but great service. |
| | 1.4.2 Managing finances to enable new locations to open at targeted intervals. |
| | 1.4.3 Controlling costs at all times without exception. |
| | 1.4.4 Instituting management controls. |
| | >>Note: To insure replicability of operations over multiple locations. This applies equally to product control and to financial control. |
| | 2.1.1 Sports based themes |
| | >>Note: The company will focus on themes that have mass appeal. |
| | 2.1.2 Distinctive design features |
| | >>Note: All stores will be characterized by spectacular visual design and layout. Each store will display a collection of authentic sports memorabilia. |
| | 2.1.3 High profile locations |
| | >>Note: 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. |
| | >>Note: The company stores will be distinguished by the promotional activities of sports celebrities and by media coverage of appearances and special events. |
| | 2.1.5 Retail merchandising |
| | >>Note: 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. |
| | >>Note: Each 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 items of particular appeal to a local market. |
| | >>Note: In order to maintain its unique image the Company provides attentive and friendly service with a high ratio of service personnel to customers and also invests in the training and supervision of its employees. |
| | >>Note: Take Five Sports Bar and Grill is a privately held Georgia company. Joseph A. Smith is the principal owner. It is Mr. Smith's intention to offer limited outside ownership in Take Five on an equity, debt, or combination basis in order to facilitate a more rapid expansion of the Take Five concept. |
| | Mr. Smith holds an MBA in Finance from Anytown University. He has held executive level positions in finance with General Electric and Holiday Inn Worldwide. He is previously experienced in the restaurant industry, having opened Smith's Italian Restaurant in 1993, which still operates successfully under his ownership. |
| | 2.3.1 Past Performance Table |
| | 2.3.2 Past Performance Graph |
| | 2.4 Company Locations and Facilities |
| | 3 Market Analysis Summary |
| | 3.1.1 Market Analysis (Pie) |
| | 3.1.2 Market Analysis (Table) |
| | 4 Strategy and Implementation Summary |
| | >>Note: Our strategy is based on serving our niche markets well. The sports enthusiast, the business entertainer and traveler, the local night crowd, as well as families dining out all can enjoy the Take Five experience. |
| | >>Note: All menu items are moderately priced. An average customer ticket is between $10 and $20 including food and drink. Tickets are considerably larger for game day visitors. Our average customer spends more than the industry average for moderately priced establishments. We tend to believe that this is due to our creating an atmosphere that encourages longer stays and more spending but still allows adequate table turns due to extended hours of appeal. |
| | >>Note: We promote sports, sports, and more sports. The universal appeal of sports and sports marketing has never been higher. A high growth area such as Anytown has an annual influx of new residents from many other parts of the country. This trend is true in the Sunbelt in general. |
| | >>Note: Take Five will create an "identity" oriented marketing strategy with executions particularly in local media. Radio spots, print ads, and in-store promotions are designed for transplantation to other markets. A portion of the ad and promo budget is set aside to develop these programs. |
| | >>Note: The sales strategy is to build and open new locations on schedule in order to increase revenue. Each individual location will continue to build its local customer base over the first three years of operation. The goal is $3 to $5 million in annual sales per unit. A unit will be considered mature once it has passed the $3.5 million mark in annual sales. |
| | 4.2.1.1 Sales Monthly (Graph) |
| | 4.2.1.2 Sales Monthly (Table) |
| | 5.1 Organizational Structure |
| | >>Note: Future organizational structure will include a director of store operations when store locations exceed five and/or the Florida store opens. This will provide a supervisory level between the executive level and the store management level. A full time accountant has already been added. Also, a sales/marketing director has been added to oversee the expansion effort both to support the growth of existing business and to execute the franchise expansion strategy. Their salaries are included in the projections. |
| | Operations of individual stores will be the responsibility of the general manager. |
| | >>Note: Specific opportunities exist in the store operations supervisory area (not needed initially) and in franchise sales development (not needed initially). |
| | It is expected that these people can be recruited when needed in the Anytown market. Anytown is now home to more than 40 franchise company headquarters. |
| | Store managers are readily available when needed. Food service managers are plentiful. |
| | >>Note: The over-all financial plan for growth allows for use of the significant cash flow generated by operations. |
| | 6.1 Important Assumptions |
| | 6.1.1 We assume a slow-growth economy, without major recession. |
| | 6.1.2 We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables. |
| | 6.1.3 We assume the continued popularity of sports in America and the growing demand for sports theme venues. |
| | 6.2 Key Financial Indicators |
| | >>Note: The break even analysis is based upon fixed costs at the Medlock Bridge location. This location exceeded required volume to break even in only its second month of operation. |
| | 6.3.1 Break-even Analysis (Graph) |
| | 6.3.2 Break-even Analysis (Table) |
| | 6.4 Projected Profit and Loss |
| | 6.6 Projected Balance Sheet |
| |