2015
Hops Beer Garden BUSINESS PLAN
Prepared by:
HOPS BEER GARDEN | 246 Atwood St, Oakland, PA 15213 0
http://flagshipbusinessplans.com
Hops Beer Garden Business Plan
Table of Contents
Executive Summary ...... 3 Sources of Funds ...... 4 VRIO and SWOT Analysis ...... 6 Location ...... 7 Restaurant Interior ...... 7 Products ...... 8 Market Growth: ...... 8 Desired Customer: ...... 8 Marketing ...... 9 Social Media ...... 9 Direct Mail Marketing ...... 9 Sales Promotion ...... 10 Community Involvement ...... 10 Grand Opening ...... 10 Competition...... 11 SWOT Analysis ...... 11 Management ...... 12 Personnel ...... 13 Suppliers ...... 14 Future Growth Plans ...... 15 Equipment and Supplies ...... 15 Equipment Expense ...... 15 Supplies and Small-Wares Expense ...... 16 Restaurant (R) Liquor License $80,000 ...... 16 Monthly Income Statement ...... 17 ...... 17 Yearly Income Statement ...... 18 Statement of Cash Flows ...... 19 Estimated Revenue ...... 23 Balance Sheet ...... 25
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Hops Beer Garden Business Plan
Break-Even Analysis ...... 26 Supporting Documents ...... 27 A – Legal documents ...... 27 Personal Financial Statement ...... 27 Lease Agreement ...... 27 Articles of Incorporation – For Profit ...... 27 Pennsylvania Enterprise Registration Form and Instructions ...... 27 Application for Employer Identification Number ...... 27 Application for Registration of Fictitious Name ...... 27 Election by a Small Business Corporation ...... 27 Docketing Statement DSCB 15-134A Department of State Revenue ...... 27 Shareholder Agreement...... 27 B – Floor Plan ...... 28 C – Shift Schedules for each position ...... 29 D – Sample Menu ...... 31
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Hops Beer Garden Business Plan
Executive Summary
Hops Beer Garden will be a restaurant and bar, which will include, but not be limited to, the sale of inexpensive European bar foods and local beers. The business will be located at 346 Atwood Street, Pittsburgh PA, 15213. This location is ideally located with a potentially sizeable clientele base located nearby. Pittsburgh’s Oakland community is an area full of young professionals and college students, who tend to have an appreciation for inexpensive appetizing cuisine in a vivacious atmosphere. Needs of the locals will be met by serving a small selection of international food that is not easily available in the Pittsburgh area.
Hours of Operation Sunday Monday Tuesday Wednesday Thursday Friday Saturday 12pm – 11am – 11am – 11am – 11am – 11am – 11am – 12am 12am 12am 12am 1am 2am 2am
Hops Beer Garden will differentiate itself from the competition through ease of access. The location is easy to get to for University of Pittsburgh students, four neighboring schools and is close to a number of bus routes. The food will be unique, inexpensive, easy to eat and universally enjoyed. Products such as rotisserie chicken for $9 will satisfy customers’ appetite for low prices. The company will focus on controlling expenses in ways, such as, keeping a limited variety of supplies and having a small staff. Efficient operations and reduced expenses will increase the restaurant’s profit margins.
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Hops Beer Garden Business Plan
Sources of Funds Hops Beer Garden is looking for a $350,000 loan over 30 years. This loan will include 5.56% interest, resulting in payments of $2,000 a month. The future value of the loan, including interest, will be $720,165. The loan will help pay for the opening of the restaurant. In order to obtain this loan, the CEO, Jason Tucker, will put up his house for collateral. The loan will be spread throughout the following expenses: $250,000 for interior and exterior renovations $80,0000 for the Pennsylvania liquor license $19,989 worth of equipment and supplies necessary for opening the restaurant o 4 Outdoor heaters for $200 each: $800 o 1 Rice cooker for $130: $130 o 20 Wooden chairs for $44 each: $880 o 5 Wooden tables for $500 each: $2,500 o 25 Metal outdoor tables for $100 each: $2,500 o 100 Metal outdoor chairs for $50 each: $5,000 o 1 Walk in freezer for $8,079: $8,079 o 1 Prep knife set for $100: $100
Loan Distribution
Loan Distribution Purpose Amount Liquor Total $ 350,000.00 License Restorations $ 250,000.00 23%
Equipment $ 19,989.00 Equipment Liquor License $ 80,000.00 6% Restorations 71%
To accompany this loan, Jason Tucker will contribute $100,000. This money will go towards other equipment and supplies required to open the restaurant. $68,011 worth of equipment and supplies necessary for opening the restaurant o 2 rotisserie ovens for $23,984 each: $47,968 o 20 wooden stools for $40 each: $800 o 20 metal tongs for $9.45 each: 189
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Hops Beer Garden Business Plan
o 1 three bowl sink for $719: $719 o 1 heavy duty faucet for $312: $312 o 4 shelf units for $172 each: $688 o 2 prep tables for $90 each: $180 o 1 prep refrigerator $1460 each: $1460 o 5 beer coolers for $3,000 each: $15,000 o 1 tomato dicer for $205: $205 o 1 vegetable slicer for $390: $390 o 1 prep knife set for $100: $100 $3,000 security deposit for renting the building $1,000 initial payment for insurance purposes $10,000 advertising and marketing costs o Google Awards Contributed Capital o Flyers around campus Total $ 100,000.00 o Website o Large signs Equipment $ 68,011.00 o Radio advertisements Rent $ 3,000.00 o Port Authority advertisements Insurance $ 1,000.00 $2,635 in startup supplies expenses Advertising $ 10,000.00 o 25 Plastic Food Basket (12 count) for $9 each: $225 Supplies $ 2,635.00 o 20 Plastic Knife (1,000 count) for $10 each: $200 Cash on Hand $ 15,354.00 o 20 Plastic Fork (1,000 count) for $10 each: $200 o 20 Beer Glass 16 oz (12 count) for $65 each: $1,300 o 6 Glass Cup (24 count) for $18.5 each: $111 Contributed Capital o 100 Napkin (150 count) for $2 Distribution each: $200 o 3 Five gallons of soap for $16 each: $48 Rent o 3 Wet Naps (1,000 count) for 3% $6 each: $18 o 3 Mop Heads for $3 each: $9 Insurance 1% o 1 Mop Bucket for $30: $30 Equipment 68% o 2 Straws (5,000 count) for $15 Advertising each: $30 10% o 3 Dart Solo 22 oz. Paper cups Supplies (1,000 count) for $57: $171 Cash on 3% o 3-22 oz. Lids with straw slot Hand (1,000 count) for $31 each: $93 15% $15,354 will go toward the cash on hand
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Hops Beer Garden Business Plan
VRIO and SWOT Analysis
Rarity Value Imitability Organization The restaurant The firm is cost Hops has No, the business efficient. Staff inexpensive provides a combination of firm is not costly and support staff prices, expedited to imitate. The features that are is minimal (as service, and a products offered well as pay), friendly, easy- not replicated by are easily any other however, access going European obtainable e.g. to labor is restaurant in the food and beer. atmosphere. area. achievable.
A SWOT analysis includes the strengths, weaknesses, opportunities and threats of the firm. A SWOT matrix provides a bird's-eye view of the internal strengths and weaknesses, and external opportunities and threats of the firm. The goal of a SWOT analysis is to maximize the firm’s strengths, and opportunities, and to minimize the firm’s weaknesses and threats. The SWOT analysis for Hops states that the business is located in an area with a large potential client base, and uses social media to gain customer loyalty; the main area for improvement Hops needs to be aware of is that their business may slow down when the surrounding schools are on breaks. To achieve success, a firm needs to have a competitive advantage, particularly one it can sustain. A Value, Rarity, Imitability and Organization chart (VRIO) serves as a litmus test to the firm’s sustained competitive advantage. Positive Negative Strengths Weaknesses Good location near a Affected by seasons. large customer base. Student base decreases Affordable prices and during school breaks. Internal quick service. Small staff. Outdoor seating. Limited room for Large labor pool. expansion of services.
Opportunities Threats Promotions through Price wars with local popular apps and competition. websites (i.e. External Existing student Grubhub and loyalty to other Groupon) establishments. Gain customer loyalty
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Hops Beer Garden Business Plan
Location
Hops Beer Garden will be located at 346 Atwood Street, Pittsburgh, PA 15213. This location has a large outdoor area that provides an enjoyable atmosphere. The Oakland community has almost 8,000 residents, but the restaurant will attract customers from the greater Pittsburgh area, allowing for a larger customer base. The average age of an Oakland resident is 23, and the average age of a Pittsburgh resident is 33.5, thus the age group Hops will be catering to is in their twenties to mid-thirties. The median household income for Pittsburgh residents from 2009- 2013 is $39,195 per year. Affordability will taken into consideration for this income range in determining products and prices. The location also ensures that suppliers will always be present because it is a large city with many diverse supplier options.
Restaurant Interior There will be a wooden bar on the inside of the restaurant used for serving food and beer. Wooden tables and chairs will be used on the inside and plastic chairs and tables will be used on the outside. Pictures and paintings from local student artists will adorn the walls. See supporting document B for a floor plan.
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Hops Beer Garden Business Plan
Products
Hops Beer Garden is committed to providing guests with simple, delicious international food that is difficult to find elsewhere in Pittsburgh, with your favorite beer in a laid-back atmosphere. A sample menu showing this can be found in Supporting document D.
Product mix: Diverse, yet simple food choices will satisfy all types of customers, ranging from various chicken dishes to the classic German Bratwurst; Hops will also offer several vegetarian options. Hops Beer Garden will focus on foods that are low cost and served quickly. The beer selection will be a simple selection of four normal beers with one rotating seasonal beer Beverages Beers Price Other Price Market Growth: Light Lager $ 10.00 Water $ - As the University of Pittsburgh Dunkle $ 10.00 Pepsi Products $ 1.50 and surrounding colleges continue to Stout $ 10.00 Dr. Pepper $ 1.50 grow, the community surrounding it will, Pilsner $ 10.00 too. Due to the growing population of Seasonal $ 10.00 Oakland and large amount of college students in the area, the market that Food Options Hops Beer Garden is in will continue to Food Price grow. Rotisserie Lamb $ 13.00 Rotisserie Chicken $ 8.00 Desired Customer: Chicken Shwarma $ 6.00 The desired customer of Hops Gyro $ 6.00 Beer Garden would be the typical Bratwurst $ 8.00 college student who drinks casually and Various Kebabs $ 6.00 enjoys affordable and delicious food. Various Salads $ 6.00 This type of customer is plentiful in the Grape Leaf Wraps $ 4.00 area and they will be attracted to go to Hops Beer Garden.
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Hops Beer Garden Business Plan
Marketing
Hops Beer Garden is a new addition to a highly saturated market; however, Hops will compete on a platform highlighting the exceptional, international food as well as seasonal beers. Hops will offer a diverse promotional mix, consisting of advertising, direct marketing, sales promotions and public relations. The total advertising budget will be $10,000 at start-up and $10,000 per quarter, which can be broken down as follows:
Method Start-Up Cost Cost Per Quarter Social Media $1,000 $1,000 Direct Mail $1,000 $1,000 Sales Promotion $6,500 $3,000 Community Involvement $1,500 $5,000 Total Cost $10,000 $10,000
Social Media Social Media has become one of the most influential types of communication between companies and consumers. Based on the information gathered from the target market, coupled with the data gathered from customer demographics, several marketing strategies have been designed centering on social media. A key part is centered on Twitter, which will be used to tweet Hops’ specials, any new entrée options, and to advertise any new beers Hops may be premiering. Hops Beer Garden will also have a presence on Grubhub, not as delivery, but as a convenient way to order take out. While Hops will be unable to make deliveries due to the fact that alcohol is served and may only be consumed on the property, Hops presence on Grubhub will be a great way for customers to quickly and easily order food for in-store pickup.
Direct Mail Marketing Hops will be creating flyers, menus, coupons and other promotional items which can be mailed directly to the homes of the residents in Oakland. This will help draw in potential customers in the area, and it will be more accessible for people who spend less time on the Internet and respond more to physical materials. See Supporting document D for a sample menu.
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Hops Beer Garden Business Plan
Sales Promotion Along with the coupons and promotions that will be sent to potential customers in the mail, every Thursday night will be a $6 beer night to entice customers to come in for discounted beer.
Community Involvement Hops Beer Garden will be immediately active in the local community in order to develop favorable name recognition as well as be respected within the target market. Hops Beer Garden will donate to organizations such as Play 60 and Keep it Clean, Oakland! as these are two prominent organizations in the community. In addition Hops Beer Garden will offer fundraising events for clubs or organizations at the local colleges and universities. Hops will put a strong emphasis on making sure employees and management are very respectful to the customers and neighbors in the area. These methods of community involvement will ensure that Hops Beer Garden is a respected company in the Oakland-Pittsburgh area.
Grand Opening The grand opening of Hops Beer Garden will be in May 2016 because spring is a prime time for the outdoor seating during the spring and summer months. Hops will also be able to establish itself during the summer before the college population returns to Oakland. During the grand opening Hops plans on serving $5 half chicken; this promotion encompasses the majority of the cost allocated to sales promotion during start-up. This promotion will bring in customers all day for dine-in and take-out, and is a great way to establish a customer base.
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Hops Beer Garden Business Plan
Competition
Hops Beer Garden will surpass the competition because of the opportunities offered, the menu, and the affordable prices as well as an accessible location. The synergy between these offerings at Hops will be difficult for competitors to replicate. The opportunities offered by Hops Beer Garden include the outdoor seating and beer garden aspect. Hops Beer Garden has a marketing strategy in place to effectively use search engine marketing (SEM) and social media to attract the target market. Due to the location of the restaurant, the target market will be college students and other young professionals in the Oakland area. It is located in the middle of a large college student population in the central Oakland region of Pittsburgh. The main challenge regarding competition would not be attracting customers, but keeping them coming back to the establishment. This would be possible through the extensive training that Hops’ employees will receive from management. A competitive analysis using the aforementioned SWOT model shows: SWOT Analysis Hofbraühaus Positive Negative Strengths Weaknesses Diverse menu options Purely German Internal Respected international reputation Location for student population Plentiful seating Quality of food Opportunities Threats Accessibility with public Festivals and events in the External transportation South Side area Promotions for German Holidays Other restaurants in the area Local breweries
Mad Mex Positive Negative Strengths Weaknesses Easy access for PITT students Minimal Seating Internal Well known own franchise Small interior Diverse Menu options Only serves Mexican cuisine Opportunities Threats Different types of alcohol/ mixed New Entrants External drinks Seasonal Revenue Promotions for Mexican holidays
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Hops Beer Garden Business Plan
Bootleggers Positive Negative Strengths Weaknesses Internal Full bar options Vague Menu Options Social Environment Needs to be renovated Opportunities Threats External Target Market Growth New Market Entrants Sporting Events Seasonal Revenues
Management
Jason A. Tucker, CEO of Hops Beer Garten Jason Tucker is the CEO of the newly established restaurant in south Oakland named Hops Beer Garden. Mr. Tucker is a recent graduate of the University of Pittsburgh with a Bachelor’s of Science degree in Finance and Bachelors of Arts degree in Political Science. He completed a certificate in Russian and Eastern European Studies. Mr. Tucker is a culinary enthusiast and renowned food critic who spent three years travelling throughout Europe. He currently works at Flagship Business Plans and Consulting as a business consultant. Mr. Tucker is establishing the Hops Beer Garden in Oakland as a way to share his passion and extensive experience with European cuisine with the city of Pittsburgh. For more information copies of his degrees and certificates will be available upon request.
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Hops Beer Garden Business Plan
Personnel
Position Duties Training Pay Hours/Week Qualifications Number Previous restaurant Food Assist with food during 1 week of manager- Part time (20- $7.25 experience 10 Handler service supervised training 30 hours) preferred Support Part time Staff e.g. Help clean the beer garden 3 shifts of manager No restaurant $7.25 (Fridays + 4 Crew area and restaurant supervised training experience needed weekends) Member Oversee entire staff and 2 weeks of training 1 Full time Previous restaurant ensure restaurant is under current (30-40 hours) experience Manager working efficiently and $13.00 3 manager and/or 2 Part time required (minimum effectively. Addresses any owner (20-30 hours) of two full years) customer problems Bouncer license 3 shifts supervised and training Bouncer Part time (15- Cards for underage guests by previous currently $13.00 required by the 2 (License) 20 hours) employed bouncer Private Detective Act
Wages for Employees per Week Position # of # of Hours/Week Hourly Wage Total Compensation Per Week Staff Food Handler 10 285.5 $ 7.25 $ 2,069.88 Crew Member 4 102 $ 7.25 $ 739.50 Managers 3 108 $ 13.00 $ 1,404.00 Bouncers 2 36.5 $ 13.00 $ 474.50 Total Staff 19 532 N/A $ 4,687.88
Shift schedules for each position can be found in Supporting document C.
Job descriptions for each position are as follows:
Food Handler The food handler must prepare a variety of foods to customers’ tastes or the manager’s direction, following approved food preparation guidelines. It is the job of the food handler to package to-go meals and serve customers in a timely fashion with a smile and friendly attitude. He/she must keep the workstations in clean working order and be fully stocked. Requirements: Must be 18 years of age, must be able to lift 25 pounds
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Hops Beer Garden Business Plan
Crewmember The crewmember must clean workstations, equipment, utensils, dishes and silverware. It is the job of the crew member to store food in designated containers and food storage areas to prevent spoiling. He/she must clean the bathrooms and mop the floors at the end of each night. Requirements: Must be 18 years of age, must be able to lift 40 pounds
Manager The manager is responsible for all restaurant functions during his/her shift. Managers must patiently and efficiently handle customer complaints and make sure that day-to-day operations run smoothly. He/she creates weekly schedules for employees, monitors timecards and schedules supply deliveries. At the end of the night the manager is responsible for counting money and taking the money deposit to the bank. Requirements: Must be 21 years of age, must be able to lift 40 pounds, and must have a minimum of two years prior restaurant experience
Bouncer The bouncer must be able to help maintain order during large restaurant events and keep a level-headed temperament during stressful situations. The bouncer is responsible for checking customer identification and preventing those customers from acting destructively in the restaurant or aggressively towards other guests. Requirements: Must be 21 years of age, must complete a Bouncer Certification Program Suppliers
All Hops Beer Garden food products will be delivered twice a week by Curtze Food Service to the restaurant to ensure fresh quality and customer satisfaction. Curtze Food Service has been in business for over 135 years, and is a food distributor located in Erie, Pennsylvania which delivers food to the western Pennsylvania region. Any produce or materials needed between weekly deliveries will be purchased at the local grocery store. Hops Beer Garden strives to keep quality as a top priority in order to guarantee customer satisfaction.
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Hops Beer Garden Business Plan
Future Growth Plans
Oakland is a community situated in the city of Pittsburgh that boasts continual growth. Many universities including University of Pittsburgh, Carlow University and Carnegie Mellon University are the key drivers for a steadily increasing student population. Enrollment at the University of Pittsburgh has increased 1.3% since 2011. The number of people attending higher education institutions has increased 11% nation-wide in the past decade. Fortunately, Hop’s Beer Garden targets are undergraduate and graduate students as well as other young professionals who live in and around this area, which reaps promising opportunities for sustainable growth.
Equipment and Supplies
Equipment Costs Item Cost Qty. Total Outdoor Heater $ 200.00 4 $ 800.00 Rotisserie Oven $ 23,984.00 2 $ 47,968.00 Rice Cooker $ 130.00 1 $ 130.00 Wooden Chair $ 44.00 20 $ 880.00 Wooden Table $ 500.00 5 $ 2,500.00 Metal Outdoor Table $ 100.00 25 $ 2,500.00 Metal Outdoor Chair $ 50.00 100 $ 5,000.00 Wooden Stool $ 40.00 20 $ 800.00 Metal Tongs $ 9.50 20 $ 189.90 T Pac Walk in Freezer $ 8,079.00 1 $ 8,079.00 3 Bowl Sink $ 719.00 1 $ 719.00 Fischer Heavy Duty Faucet $ 312.00 1 $ 312.00 5' by 24' 4 shelf unit $ 172.00 4 $ 688.00 Prep Table $ 90.00 2 $ 180.00 Artic Air Prep Refrigerator $ 1,460.00 1 $ 1,460.00 Direct Draw Beer Cooler $ 3,000.00 5 $ 15,000.00 Nemco Tomato Dicer $ 205.00 1 $ 205.00 Nemco Vegetable Slicer $ 390.00 1 $ 390.00 Prep Knife Set $ 100.00 2 $ 200.00 $ 88,000.90 Prices were determined by averaging the top 10 products produced by a search on Amazon.com
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Hops Beer Garden Business Plan
Supplies and Small-Wares Expense Start Up Items Price Quantity Total Plastic Food Basket (12 count) $ 9.00 25 $ 225.00 Plastic Knife (1000 count) $ 20.00 10 $ 200.00 Plastic Fork (1000 count) $ 20.00 10 $ 200.00 Beer Glass 16oz (12 count) $ 65.00 20 $ 1,300.00 Glass Cup (24 count) $ 18.50 6 $ 111.00 Napkin (150 count) $ 2.00 100 $ 200.00 5 Gallons of soap $ 16.00 3 $ 48.00 Wet Naps (1000 count) $ 6.00 3 $ 18.00 Mop Heads $ 3.00 3 $ 9.00 Mop Bucket $ 30.00 1 $ 30.00 Straws (5000) $ 15.00 2 $ 30.00 Dart Solo 22 oz. Paper cups (1000 count) $ 57.00 3 $ 171.00 22 oz. Lids with straw slot (1000 count) $ 31.00 3 $ 93.00 $ 2,635.00 Prices were found on www.webstaurantstore.com Weekly Items Price Quantity Total Plastic Food Basket (12 count) $ 9.00 25 $ 225.00 Plastic Knife (1000 count) $ 20.00 10 $ 200.00 Plastic Fork (1000 count) $ 20.00 10 $ 200.00 Napkin (150 count) $ 2.00 100 $ 200.00 5 Gallons of soap $ 16.00 3 $ 48.00 Wet Naps (1000 count) $ 6.00 3 $ 18.00 Mop Heads $ 3.00 3 $ 9.00 Straws (5000) $ 15.00 2 $ 30.00 Dart Solo 22 oz. Paper cups (1000 count) $ 57.00 3 $ 171.00 22 oz. Lids with straw slot (1000 count) $ 31.00 3 $ 93.00 $ 1,194.00 Prices were found on www.webstaurantstore.com
Restaurant (R) Liquor License $80,000 Sofranko Advisory Group, LLC is a company that indicates a market price of liquor licenses in Allegheny County to be $50,000-$90,000. Accordingly, Hops has budgeted $80,000 for the liquor license.
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Hops Beer Garden Business Plan
Monthly Income Statement
May June July August September October Net Sales 115,570.19 118,566.00 131,873.02 130,602.15 136,789.00 131,555.02 Cost of Goods Sold 72,035.66 72,913.71 79,905.03 79,429.97 82,132.54 79,856.45 Gross Margin 43,534.53 45,652.29 51,967.99 51,172.18 54,656.46 51,698.57
Operating Expenses Manager Salaries 6,217.71 6,017.14 6,217.71 6,217.71 6,017.14 6,217.71 Insurance Expense 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 Miscellaneous Expenses 23,643.60 24,284.44 26,595.31 26,316.78 27,435.91 26,501.01 Total Operating Expenses 30,861.31 31,301.58 33,813.02 33,534.49 34,453.05 33,718.72
Depreciation Expense 500.00 500.00 500.00 500.00 500.00 500.00
Net Income Before Taxes 12,173.22 13,850.71 17,654.97 17,137.69 19,703.41 17,479.85 Federal Income Tax 3,043.31 3,462.68 4,413.74 4,284.42 4,925.85 4,369.96 Net Income 9,129.92 10,388.03 13,241.23 12,853.27 14,777.56 13,109.89
November December January February March April Year 1 Net Sales 112,577.52 114,833.55 109,194.17 113,856.23 135,175.55 136,911.31 1,487,503.71 Cost of Goods Sold 69,977.52 71,619.15 68,828.24 69,721.19 81,775.15 82,483.84 910,678.45 Gross Margin 42,600.00 43,214.40 40,365.93 44,135.04 53,400.40 54,427.47 576,825.26
Operating Expenses Manager Salaries 6,017.14 6,217.71 6,217.71 5,616.00 6,217.71 6,017.14 73,208.53 Insurance Expense 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 12,000.00 Miscellaneous Expenses 25,216.15 23,531.56 22,534.59 23,552.67 27,096.66 27,355.76 304,064.44 Total Operating Expenses 32,233.29 30,749.27 29,752.30 30,168.67 34,314.37 34,372.90 389,272.97
Depreciation Expense 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00
Net Income Before Taxes 9,866.71 11,965.13 10,113.63 13,466.37 18,586.03 19,554.57 181,552.29 Federal Income Tax 2,466.68 2,991.28 2,528.41 3,366.59 4,646.51 4,888.64 45,388.07 Net Income 7,400.03 8,973.85 7,585.22 10,099.78 13,939.52 14,665.93 136,164.22
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Hops Beer Garden Business Plan
Yearly Income Statement
Year 1 Year 2 Year 3 Year 4 Net Sales $1,487,503.71 $1,510,347.31 $1,526,289.35 $1,531,320.57 Cost of Goods Sold $910,678.45 $1,032,347.92 $1,040,296.58 $1,042,939.59 Gross Margin $576,825.26 $477,999.39 $485,992.77 $488,380.98
Operating Expenses Manager Salaries $73,208.53 $73,208.53 $73,208.53 $73,208.53 Insurance Expense $12,000.00 12000 12000 12000 Miscellaneous Expenses 304064.44 60000 60000 60000 Total Operating Expenses $389,272.97 $145,208.53 $145,208.53 $145,208.53
Depreciation Expense $6,000.00 $6,000.00 $6,000.00 $6,000.00
Net Income Before Taxes $181,552.29 $326,790.86 $334,784.24 $337,172.45 Federal Income Tax $45,388.07 $81,697.72 $83,696.06 $84,293.11 Net Income $136,164.22 $245,093.15 $251,088.18 $252,879.34
Year 1 Distribution of Income
Supplies Expense Advertising 0% 4% Expense 3% Utlitilites Expense Taxes and 1% Licenses 13% Rent Expense 2% Depreciation Cost of Goods Sold 0% 42% Interest Expense 1%
Insurance Start Up Costs Expense 19% 1%
Employee Salaries 10% Manager Salaries 4%
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Hops Beer Garden Business Plan
Statement of Cash Flows
Year 1 Start Up May-16 Jun-16 Jul-16 Aug-16 Sep-16 Beginning cash - 13,365.00 44,798.81 77,240.41 114,155.97 150,554.25
Operations Cash Receipts from Customers - 115,570.19 118,566.00 131,873.02 130,602.15 136,789.00
Cash Paid for Goods For Sale - 57,492.78 58,839.96 65,362.15 64,887.09 68,058.79 Rent 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 Utilities - 800.00 800.00 800.00 800.00 800.00 Tax & License 80,000.00 11,555.89 12,367.30 14,507.60 14,229.07 15,518.76 Insurance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 Advertising 10,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 Other Expenses 2,635.00 5,287.71 5,117.14 5,287.71 5,287.71 5,117.14
Net Cash Flows from Operations (96,635.00) 33,433.81 34,441.60 38,915.56 38,398.28 40,294.31
Investing Activities
Cash Receipts From Sale of Property/Equiptment ------Sale of Stock ------Collection of loan ------
Cash Paid for Purchase of Property/Equiptment 338,000.00 - - - - - Making loads to other entities ------Purchase of stock ------
Net Cash Flows from Investing (338,000.00) - - - - -
Financing
Cash Receipts From Issuance of Stock 100,000.00 - - - - -
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Hops Beer Garden Business Plan
Borrowing money 350,000.00 - - - - -
Cash Paid for Stock Repurchase ------Payment of loan 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 Dividends ------
Net Cash Flow from Investing 448,000.00 (2,000.00) (2,000.00) (2,000.00) (2,000.00) (2,000.00) Total Cash Flow 13,365.00 31,433.81 32,441.60 36,915.56 36,398.28 38,294.31 Ending Cash Balance 13,365.00 44,798.81 77,240.41 114,155.97 150,554.25 188,848.56
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Hops Beer Garden Business Plan
Statement of Cash Flows (Continued)
Year 1 Oct-16 Nov-16 Dec-16 Jan-16 Feb-16 Mar-16 Apr-16 Beginning cash 188,848.56 225,589.00 256,046.61 287,272.34 316,646.56 347,364.43 385,211.06
Operations
131,555.02 Cash Receipts from Customers 112,577.52 114,833.55 109,194.17 113,856.23 135,175.55 136,911.31
Cash Paid for
Goods For Sale 65,313.57 55,903.77 57,076.27 54,285.36 56,585.69 67,232.27 67,940.96
Rent 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Utilities 800.00 800.00 800.00 800.00 800.00 800.00 800.00
Tax & License 14,413.30 11,299.00 11,443.84 10,446.88 11,976.67 15,008.94 15,438.62
Insurance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Advertising 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Other Expenses 5,287.71 5,117.14 5,287.71 5,287.71 4,776.00 5,287.71 5,117.14
Net Cash Flows from Operations 38,740.44 32,457.61 33,225.73 31,374.22 32,717.87 39,846.63 40,614.59
Investing Activities
Cash Receipts From Sale of Property/Equiptment ------Sale of Stock ------Collection of loan ------
Cash Paid for
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Hops Beer Garden Business Plan
Purchase of Property/Equiptment ------Making loads to other entities ------Purchase of stock ------
Net Cash Flows from Investing ------
Financing
Cash Receipts From Issuance of Stock ------Borrowing money ------
Cash Paid for Stock Repurchase ------
Payment of loan 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 Dividends ------
Net Cash Flow from Investing (2,000.00) (2,000.00) (2,000.00) (2,000.00) (2,000.00) (2,000.00) (2,000.00)
Total Cash Flow 36,740.44 30,457.61 31,225.73 29,374.22 30,717.87 37,846.63 38,614.59
Ending Cash Balance 225,589.00 256,046.61 287,272.34 316,646.56 347,364.43 385,211.06 423,825.65
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Hops Beer Garden Business Plan
Estimated Revenue
Estimated revenue was gathered through meticulous research of various factors, including cost per menu item and number of orders. Knowledge of the many revenue influencing factors is essential to accurately forecast the restaurants first few years. The CEO, based on his extensive experience in the restaurant industry, set menu item prices and his understanding of the customer base that Hops is catering to. The cost of goods sold is dictated by the supplier, Curtze, thus the price margin is set by these two stakeholders. The estimated number of orders was based on the demographics of the Oakland-Pittsburgh region and discussions with other restaurants in the same industry. The same method was used to gather information on various menu items. These statistics were influenced by the promotions offered and the days of the week, which dictate how many customers come per day. Combining the weighted average margin of the items and the number of items purchased provides an authentic estimated revenue, which follows:
Expected Food Orders May January June July August September October November December February March April 2016 2017 Monday 167 176 183 192 200 189 167 159 159 180 192 200 Tuesday 205 215 226 236 246 232 205 197 197 219 236 246 Wednesday 224 235 246 257 268 252 224 213 213 242 257 268 Thursday 234 246 258 268 280 264 233 221 221 252 268 280 Friday 333 350 367 383 400 374 333 317 317 358 383 400 Saturday 333 350 367 383 400 374 333 317 317 358 383 400 Sunday 320 327 332 345 352 339 320 308 308 332 345 352 Total Sales 1,816 1,899 1,979 2,064 2,146 2,024 1,815 1,732 1,732 1,941 2,064 2,146
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Hops Beer Garden Business Plan
Expected Beverage Orders January May 2016 June July August September October November December February March April 2017 Monday 137 145 151 159 164 156 145 131 131 152 159 164 Tuesday 205 216 226 236 246 232 205 197 197 219 236 246 Wednesday 233 244 257 267 279 263 233 222 222 250 267 279 Thursday 380 398 417 436 455 428 379 361 361 410 437 455 Friday 416 436 458 479 500 468 416 396 396 447 479 500 Saturday 416 436 458 479 500 468 416 396 396 447 479 500 Sunday 286 294 301 315 321 308 289 273 273 300 314 321 Total Sales 2,073 2,169 2,268 2,371 2,465 2,323 2,083 1,976 1,976 2,225 2,371 2,465
Weighted Average Costs and Revenues of Orders for Year 1 # of Days 52 52 53 52 52 52 52 365 Weighted Avg. Food Rev $ 72,424.42 $ 88,822.98 $ 98,870.97 $101,446.79 $ 144,856.57 $144,786.96 $133,532.28 $ 784,740.98 Weighted Avg. Food Cost $ 44,294.52 $ 54,323.83 $ 60,208.95 $ 62,044.50 $ 88,593.78 $ 88,551.20 $ 81,667.88 $ 479,684.66
Weighted Avg. Beverage Rev $ 48,150.35 $ 71,285.35 $ 82,517.75 $113,701.33 $ 145,195.74 $145,127.47 $ 96,784.75 $ 702,762.74 Weighted Avg Beverage Cost $ 16,780.23 $ 24,842.70 $ 28,757.15 $ 54,008.13 $ 50,600.21 $ 50,576.42 $ 33,729.15 $ 259,293.99
Weighted Avg. Total Rev $120,574.77 $160,108.34 $181,388.72 $215,148.12 $ 290,052.31 $289,914.43 $230,317.03 $1,487,503.72 Weighted Avg. Total Cost $ 61,074.75 $ 79,166.53 $ 88,966.10 $116,052.64 $ 139,193.99 $139,127.62 $115,397.03 $ 738,978.65
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Hops Beer Garden Business Plan
Balance Sheet
Balance Sheet as of May 1, 2016 Hops Beer Garden
Assets Liabilities & Net Worth
Current Assets Current Liabilities
Cash in Bank $ 15,365.00 Accounts Payable $ -
Inventory $ 2,635.00 Taxes Payable $ - Notes Payable (due within 12 Prepaid Expenses $ 11,000.00 $ - months) Other $ - Current Portion Long-term Debt $ -
Total Current Assets $ 29,000.00 Other current liabilities (specify) $ -
Total Current Liabilities $ -
Fixed Assets
Machinery & Equipment $ 88,000.00 Long-term Liabilities Bank Loans Payable (greater than Furniture & Fixtures $ - $ 350,000.00 12 months) Leasehold Improvements $ 250,000.00 Less: Short-term Portion $ -
Real Estate / Buildings $ 3,000.00 Notes Payable to Stockholders $ -
Other $ 80,000.00 Other long-term debt (specify) $ -
Total Fixed Assets $ 421,000.00 Total Long-term Liabilities $ 350,000.00
Total Liabilities $ 350,000.00
Owner's Equity $ 100,000.00
Retained Earnings
Total Assets $ 450,000.00 Total Liabilities & Net Worth $ 450,000.00
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Hops Beer Garden Business Plan
Break-Even Analysis Total Units Variable Costs per Costs Per Quarter Units Sold Fixed Costs Total Costs Total Revenue Total Net Income Sold Quarter Quarter 0 - - $ - $ - $ 434,635.00 $ 434,635.00 $ - $ (434,635.00) 1 58,500 58,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 687,367.19 $ 389,928.00 $ (297,439.19) 2 58,500 117,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 940,099.38 $ 779,856.00 $ (160,243.38) 3 58,500 175,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 1,192,831.57 $ 1,169,784.00 $ (23,047.57) 4 58,500 234,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 1,445,563.76 $ 1,559,712.00 $ 114,148.24 5 58,500 292,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 1,698,295.96 $ 1,949,640.00 $ 251,344.04 6 58,500 351,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 1,951,028.15 $ 2,339,568.00 $ 388,539.85 7 58,500 409,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 2,203,760.34 $ 2,729,496.00 $ 525,735.66 8 58,500 468,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 2,456,492.53 $ 3,119,424.00 $ 662,931.47 9 58,500 526,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 2,709,224.72 $ 3,509,352.00 $ 800,127.28 10 58,500 585,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 2,961,956.91 $ 3,899,280.00 $ 937,323.09 11 58,500 643,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 3,214,689.10 $ 4,289,208.00 $ 1,074,518.90 12 58,500 702,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 3,467,421.29 $ 4,679,136.00 $ 1,211,714.71 13 58,500 760,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 3,720,153.48 $ 5,069,064.00 $ 1,348,910.52 14 58,500 819,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 3,972,885.67 $ 5,458,992.00 $ 1,486,106.33 15 58,500 877,500 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 4,225,617.87 $ 5,848,920.00 $ 1,623,302.13 16 58,500 936,000 $ 47,904.19 $ 204,828.00 $ 252,732.19 $ 4,478,350.06 $ 6,238,848.00 $ 1,760,497.94
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Hops Beer Garden Business Plan
Yearly Breakeven Monthly Breakeven Analysis Analysis for Year 1 Total Cost Total Revenue Net Income Total Costs total revenue Net Income $7,000,000.00 $2,000,000.00 $6,000,000.00 $1,500,000.00 $5,000,000.00 $1,000,000.00 $4,000,000.00 $500,000.00
$3,000,000.00 DOLLARS $2,000,000.00 $- 0 1 2 3 4 5 6 7 8 9 10 11 12 $1,000,000.00 $(500,000.00)
$- $(1,000,000.00) UNITS SOLD $(1,000,000.00) 1 2 3 4 5 Supporting Documents A – Legal documents
Personal Financial Statement
Lease Agreement
Articles of Incorporation – For Profit
Pennsylvania Enterprise Registration Form and Instructions
Application for Employer Identification Number
Application for Registration of Fictitious Name
Election by a Small Business Corporation
Docketing Statement DSCB 15-134A Department of State Revenue
Shareholder Agreement
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Hops Beer Garden Business Plan
B – Floor Plan
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Hops Beer Garden Business Plan
C – Shift Schedules for each position
Servers Server Shift (a) Servers/Shift Total Hours Shift Server Shift (b) Servers/Shift Total Hours Shift (b) (a) Monday 10:30 am - 3:00 pm 1 4.5 10:30am-5:00 pm 2 13 Tuesday 10:30 am - 3:00 pm 1 4.5 10:30am-5:00 pm 2 13 Wednesday 10:30 am - 3:00 pm 1 4.5 10:30am-5:00 pm 2 13 Thursday 10:30 am - 3:00 pm 1 4.5 10:30am-5:00 pm 2 13 Friday 10:30 am - 3:00 pm 1 4.5 10:30am-6:00 pm 2 15 Saturday 10:30 am - 3:00 pm 1 4.5 10:30am-6:00 pm 2 15 Sunday 11:30 am - 3:00 pm 1 3.5 10:30am-5:00 pm 2 13
Server Shift (c) Server/Shift Total Hours Shift (c) Server Shift (d) Severs/Shift Total Hours Monday 5:00 pm - 11:00 pm 1 6 5:00 pm - 1:00 am 2 16 Tuesday 5:00 pm - 11:00 pm 1 6 5:00 pm - 1:00 am 2 16 Wednesday 5:00 pm - 11:00 pm 1 6 5:00 pm - 1:00 am 2 16 Thursday 5:00 pm - 11:00 pm 1 6 5:00 pm - 2:00 am 2 18 Friday 6:00 pm - 12:00 pm 2 12 9:00 pm - 3:00 am 2 12 Saturday 6:00 pm - 12:00 pm 2 12 9:00 pm - 3:00 am 2 12 Sunday 5:00 pm - 11:00 pm 1 6 5:00 pm - 1:00 am 2 16
Manager Manager Shift (a) Managers/Shift Total Hours Shift Manager Shift (b) Managers/Shift Total Hours Shift (a) (b) Monday 10:00 am - 7:00 pm 1 9 7:00 pm - 1:00 am 1 6 Tuesday 10:00 am - 7:00 pm 1 9 7:00 pm - 1:00 am 1 6 Wednesday 10:00 am - 7:00 pm 1 9 7:00 pm - 1:00 am 1 6 Thursday 10:00 am - 7:00 pm 1 9 7:00 pm - 2:00 am 1 7 Friday 10:00 am - 7:00 pm 1 9 7:00 pm - 3:00 am 1 8 Saturday 10:00 am - 7:00 pm 1 9 7:00 pm - 3:00 am 1 8 Sunday 11:00 am - 7:00 pm 1 8 7:00 pm - 12:00 am 1 5
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Hops Beer Garden Business Plan
Bussers Busser Shift (a) Bussers/Shift Total Hours Shift Busser Shift (b) Bussers/Shift Total Hours Shift (b) (a) Monday 11:00 am - 4:00 pm 1 5 4:00 pm - 9:00 pm 1 5 Tuesday 11:00 am - 4:00 pm 1 5 4:00 pm - 9:00 pm 1 5 Wednesday 11:00 am - 4:00 pm 1 5 4:00 pm - 9:00 pm 1 5 Thursday 11:00 am - 4:00 pm 1 5 4:00 pm - 9:00 pm 1 5 Friday 11:00 am - 4:00 pm 1 5 4:00 pm - 9:00 pm 1 5 Saturday 11:00 am - 4:00 pm 1 5 4:00 pm - 9:00 pm 1 5 Sunday 12:00 am - 4:00 pm 1 4 4:00 pm - 9:00 pm 1 5
Busser Shift (c) Bussers/Shift Total Hours Shift (c) Monday 9:00 pm - 1:00 am 1 4 Tuesday 9:00 pm - 1:00 am 1 4 Wednesday 9:00 pm - 1:00 am 1 4 Thursday 9:00 pm - 2:00 am 1 5 Friday 9:00 pm - 3:00 am 1 6 Saturday 9:00 pm - 3:00 am 1 6 Sunday 9:00 pm - 1:00 am 1 4
Bouncer Bouncer Shift (a) Bouncers/Shift Total Hours Shift Monday 8:30 pm - 1:00 am 1 4.5 Tuesday 8:30 pm - 1:00 am 1 4.5 Wednesday 8:30 pm - 1:00 am 1 4.5 Thursday 8:30 pm - 2:00 am 1 5.5 Friday 8:30 pm - 3:00 am 1 6.5 Saturday 8:30 pm - 3:00 am 1 6.5 Sunday 8:30 pm - 1:00 am 1 4.5
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Hops Beer Garden Business Plan
D – Sample Menu
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