Karaoke Lounge
Business Plan
Contact: Martin Chan
Email: aituneskaraoke@gmail.com
Website: www.aituneskaraoke.com
Fax: 678.298.6212
Ai Tunes Karaoke Lounge
Table of Contents
Executive Summary
Keys to Success
Target Market Customers
Management
1.1 Keys to Success
1.2 Mission
1.3 Objectives
Company Summary
2.1 Company Ownership
2.2 Fixtures & Equipment
Products
Strategy and Implementation Summary
3.1 Competitive Edge
3.2 Marketing Strategy
3.3 Sales Strategy
Web Plan Summary
4.1 Website Marketing Strategy
Management Summary
5.1 Personnel Plan
For Sale - Business & Building
6.1 Sales Details
Ai Tunes Karaoke Lounge
Business Plan & Proposal
Executive Summary
Ai Tunes Karaoke Lounge is one of the newest and largest Karaoke Bars in
Atlanta, Georgia. Karaoke is a form of entertainment that originates back in
the 1970s in Japan. In the 1990s, karaoke spread to the rest of Asia like
wildfire. The practice involves singing songs created by popular artist without
any vocals from the original artist. The phenomenon soon spread in the US,
especially in large cities like New York, Los Angeles and San Francisco.
In the US, most karaoke venues would be hosted in a large room with a
stage where people would go and sing “Open Mic” in front of the bar crowd.
The problem with that is most people will have to wait their turn to perform,
some only get to perform one or two songs in an hour. Many people would
not want to wait and leave. That is where we differentiate ourselves. Ai Tunes
Karaoke Lounge provides independent private rooms for groups of friends
and family to sing at their leisure. In these rooms are user-friendly karaoke
machines patrons can use to sing for hours on end. Food and beverages are
also provided to ensure the customers have a wonderful experience. This is a
new type of entertainment in Atlanta and customers keep on returning with
their friends to try it out. Demand for rooms can be seen growing week after
week. This is a place where anyone can be Usher, Britney Spears or Mariah
Carrey in front of their close friends and family.
Keys to Success
Ai Tunes Karaoke Lounge has identified three keys that will be critical
for their success. The first is the need to design and implement strict financial
controls. This is particularly important for an establishment that serves
alcohol, as employee theft is one of the largest drains on this type of
business. The financial controls will help minimize this risk. The second key is
the behavior of all employees toward customers - that each customer is
treated as if they were the most important customer of Ai Tunes. The last key
to success will be the constant analysis for improvement of the business
model. It will be management's task to continually analyze the business
model looking for ways that it can be adjusted to increase profitability for the
business. Ai Tunes Karaoke Lounge will not assume that this business model
is static, rather, they believe that in order to improve it must be dynamic.
Target Market Customers
Ai Tunes Karaoke Lounge has identified two population target segments. The
first segment is students. This segment enjoys singing karaoke with their
friends in a bar setting. They appreciate the opportunity to hangout and do
something different while they consume beverages (alcoholic or not) and
socialize with friends or strangers. Lets take Georgia Tech for example,
according to 2010 – 2011 School profile from Georgia Tech Office of
Institutional Research and Planning they had 20,487 students attend for Fall
2010. If 1% of the students were interested in Karaoke then over 200
students would be potential customers. This is for a single college; there are
multiple large colleges in the Atlanta, Georgia. The second segment of the
population that will be targeted is young professionals. These people
appreciate karaoke for the same reasons as the students, however, this
group usually have higher spending power. On many occasions after a hard
day at work or the completion of a big project, this group finds a place to
celebrate. Being older and more experienced, they try to look for something
different to do than the usual bar or club setting. This is where a private room
with a karaoke system can be attractive and alluring.
Management
Ai Tunes Karaoke Lounge has been led by Martin Chan. Martin received his
undergraduate degrees in Marketing and Management from Liberty
University in Virginia. While in college, Martin had the chance to manage a
venue called FUNE Sushi Bar & Ultra Lounge. This was Martin's first
experience in a retail establishment and provided him with
invaluable experience in bar operations, as well as insight into customer
habits and preferences. During this time Martin realized the importance of
having a good marketing background to locate, bring in and retain customers
while on a budget. Having this goal in his head while taking the course work
proved to be quite valuable, as it became a lens through which Martin
studied all the school material.
1.1 Keys to Success
Ai Tunes Karaoke Lounge has identified several business elements that must
be implemented in order to succeed in this competitive market.
1. Employ strict financial controls. This is especially important for a bar
where, without financial controls, employ theft could bring the business to
bankruptcy.
2. Treat every customer as though they are the most important customer to
Foosball Hall.
3. Continually look for improvements in the business model as well as
operating systems.
1.2 Mission
It is Ai Tunes Karaoke Lounge's mission to become a premier night-spot for
Atlanta students and locals who are interested in singing and drinking. Ai
Tunes Karaoke Lounge will accomplish this by offering multiple private
karaoke rooms, an abundance of songs, custom cocktails & beers, and an
Asian-American cuisine plus tapas at reasonable prices. By providing the
Atlanta market with the opportunity to participate in this increasingly popular
new karaoke trend, Ai Tunes Karaoke Lounge has become an Atlanta
favorite. The business will be operated on the premise that satisfied
customers are imperative to a sustainable business.
1.3 Objectives
•
•
•
To become one of the premier venues in Atlanta that offers private room
karaoke, cocktails & beer and great food.
To grow the trend of karaoke in Atlanta, bringing the culture of karaoke
and to show the advantages of private rooms to Atlanta and her people.
Reach the point of sustainable profitability by year two.
Company Summary
Ai Tunes Karaoke Lounge, a start-up business has been formed as Clink
Café & Bar Inc. d/b/a Ai Tunes Karaoke Lounge in Georgia with the main
purpose as a bar restaurant with karaoke.
2.1 Company Ownership
Ai Tunes Karaoke Lounge is incorporated and registered in Georgia. The
incorporation business formation structure was chosen as a personal liability
shield for the owner and investors.
2.2 Fixtures & Equipment
The following list details the expenses associated with the start up of this
organization:
•
Private Rooms: There are 10 sound proofed rooms located throughout
the venue for private party and karaoke use. The size of each room range
from small, medium and large. There are 3 small rooms that comfortably
fit 4 to 5 adults. The 6 medium rooms fit 15 to 18 adults. The 1 large room
that fits 80 to 100 adults. All rooms have independent karaoke systems,
50”+ Flat Screen HD TV, and commercial grade sound systems.
•
Lighting: Comfortable and appropriate night-life lighting has been
installed throughout the venue, including the bar, the private room stage
and rooms.
•
Stools, tables, counter top and chairs
•
Kitchen equipment: These are fully serviceable for serving a restaurant
menu and liquid refreshments.
•
Bar: Fully stocked and customized to make drinks that is only known to
the bartenders of Ai Tunes Karaoke Lounge for exclusivity. A
•
Jägermeister machine and Redbull mini fridge has been added. A kegorator behind the bar that has 6 beer taps with different types of high
selling beers such as Ying Ling Lager, Bud Light, and Blue Moon and
craft beers such as Duck Rabbit Milk Stout and the seasonal Octoberfest
beer. Various marketing information such as menus, stationery, etc.
•
Website: The website will be developed as a form of communication
regarding the activities of Foosball Hall and the game of foosball. This
includes disseminating information regarding tournaments as well as
advertising the fact that there is a place that offers foosball. There are
numerous foosball associations that will then link Foosball Hall's site to
theirs for general game promotion.
•
Reservation System: Recently added a state of the art reservation
system made by Urbanspoon called Rezbook. Using Rezbook we can let
customers book reservations on our website OR our facebook page. All
reservations can be viewed on an Ipad, computer or iPhone which list the
names, times, contact information and additional info automatically after
the online reservation has been made.
•
Social Media: An extensively created social medium network, created by
Martin, has been dedicated to involving customers to return and
participate in Ai Tunes events and updates. This includes:
o www.facebook.com/aituneskaraokelounge - This page, as of
December 7, 11, has 529 Lifetime Likes and an estimated monthly
average of 30,000 post views. Since it’s creation in January 2010,
the page has had 268,000 post views. This is the first year.
o http://www.yelp.com/biz/ai-tunes-karaoke-norcross - We currently
hold a 4.5/5 star rating with great reviews written by customers.
o https://twitter.com/aituneskaraoke
o https://foursquare.com/v/ai-tunes/4d1ebeed5c4ca1cd4806943d
Products
Private Party Room with Karaoke
Like most karaoke bars, Ai Tunes Karaoke Lounge also has the capabilities
to host “Open Mic” karaoke on the main lobby floor. But Ai Tunes is different
in the private rooms with karaoke systems are available for those who may
not be comfortable singing in front of strangers or those that do not want to
wait in line. With the comfort of friends, family and co-workers most people
enjoy their time a lot more in the privacy of a VIP room.
Multiple Language Karaoke
The fact is that karaoke was invited in Japan, so naturally there would a lot of
Asian based songs in our library. Ai Tunes Karaoke Lounge has 3 different
karaoke systems each with an extensive amount of songs. The languages
include English, Chinese, Korean, Vietnamese, Thai, Japanese and other
languages. This gives us near 70,000 songs in multiple languages.
Asian – American Cuisine
An extensive list of foods that most likely cannot be found in other karaoke
bars in town, there is a little bit for anyone on the menu. Including everything
from Hamburgers, Pastas and Chicken Tenders to Asian based stir-fry
noodles, fried rice, soup noodles and potstickers. Tapas are also added for
those who crave small portions of different foods.
Cocktail Bar
Custom made cocktails tailored to the taste buds and drinking habits of the
customers. The house martini menu includes hugely popular drinks such as
the “Green Lantern – A coconut rum based cocktail mixed with melon and
orange flavors” and the “Golden Samurai – A whiskey and cognac blend
merged with honey and almond aromas”. Japanese Sake for unique & exotic
taste, flights and bombs. Different beers are also included both on tap and in
bottles.
Mini Club Room
The party room, the poker room, the giant karaoke room. This room is made
to have a large open floor plan for multiple uses. On Friday Nights, this is
used for a game of 40 to 60 players for Poker hosted by the Atlanta Poker
Club. On Saturdays and other nights, it is rented out for Karaoke and parties
for those who need a larger space.
Strategy and Implementation Summary
Ai Tunes Karaoke Lounge will leverage the fact that they offer the finest
facility of numerous, nice, good condition private rooms for karaoke. This will
be especially useful when competing for customers against the other venues.
This generates a more attractive atmosphere for the young and old to attend
and be comfortable to sing, eat and drink.
The marketing effort will rely on advertisements, social network marketing
and community participation and sponsorships to reach the desired market
segments.
The sales strategy is formulated on the hypothesis that there are a large
number of people that will try karaoke once, and that a successful sales
effort will be one that captures the people and turns them into repeat
customers. This philosophy is grounded in the solid marketing maxim that it
is more costly to attract new customers than it is to maintain current ones.
3.1 Competitive Edge
Ai Tunes Karaoke Lounge will rely on their competitive edge of offering
a large number of quality rooms, food and drinks to patrons. Karaoke Bars
are relatively popular. They offer patrons a source of self-entertainment while
they drink and socialize. Ai Tunes Karaoke Lounge takes this one step further
by offering a beautiful and large lobby for diners and people who just want to
hang out at the bar. Currently, there are no other karaoke venues offer the
open space bar area that Ai Tunes Karaoke Lounge does. This competitive
edge could diminish if it becomes so popular that competitors take notice
and offer similar options. However, Ai Tunes Karaoke Lounge will enjoy the
market leader position and will not rest on its laurels, continually looking for
new ways to add value for their customers. Ai Tunes Karaoke Lounge will be
always looking for new ways to appeal to their target market by both
secondary research, and through primary research in the form of observation
of their customers.
3.2 Marketing Strategy
For the current results, a very minimal marketing budget was needed to
accomplish because of Martin’s marketing background and experience.
Ai Tunes Karaoke Lounge will use two different forms of marketing
communication as a way to reach the target market and raise
their awareness of Ai Tunes Karaoke Lounge and their product offerings. The
repeat and loyal customers will be reached through a series of the use of
social media like Facebook and Twitter. The student blogs are a source of
information that most students consult in determining activities and events.
Loyalty programs to build repeat customers have also been implemented in
the form of iPhone punch cards. A new Google App called “Punchd” has
been put in use to build customer loyalty. The general idea involves having
an App on the iPhone or Android phone that can punch in the amount of
times the customer has visited Ai Tunes Karaoke Lounge. After a certain
number of punches, the customer is rewarded with prizes like “Free Hour of
Private Room Karaoke”.
Large volume programs like Scoutmob and Groupon have also been used.
The following links have been featured to advertise Ai Tunes Karaoke
Lounge:
http://scoutmob.com/atlanta/deal/1271
http://www.groupon.com/deals/ai-tunes-karaoke-lounge
3.3 Sales Strategy
The sales strategy is based on the belief that there will be a regular flow of
first time customers. The real sales effort must concentrate on the conversion
of each first-time customer into a long-term customer relationship where the
customer comes regularly to Ai Tunes Karaoke Lounge and also brings new
friends to share the experience. This focus recognizes the fact that it costs Ai
Tunes Karaoke Lounge less money to convert a customer into a long-term
relationship than it does to attract another new customer. With this in mind,
sales activities concentrate on keeping existing customers happy.
Consistent, customer-centric service is the requirement for Ai Tunes Karaoke
Lounge employees. Every employee will have the idea drilled into them that
they cannot let a customer leave dissatisfied. Employees will be empowered
to remedy most situations that come up. Problem solving will be encouraged
throughout the organization. It would also be fair to say that everyone within
the organization is part of the sales staff.
Web Plan Summary
The website will be used primarily to make the Atlanta aware of Ai Tunes
Karaoke Lounge. Name recognition will be key as the location of the venue is
directly outside the Atlanta perimeter. Constant work will also be made to
maximize the Google Search Engine Optimization or SEO. To ensure that Ai
Tunes Karaoke Lounge obtains and maintains high search results on google.
The website will provide viewers with information regarding the services and
products offered by Ai Tunes Karaoke Lounge. In addition to providing
information, the website will be linked into different forms of information such
as www.youtube.com for videos and www.flickr.com for pictures.
4.1 Website Marketing Strategy
The website will be marketed in two ways. The first will be submissions to
popular search engines such as Google. This will allow people who are
searching for “Karaoke Bar” in the area to reach Ai Tunes Karaoke Lounge’s
website. The second marketing strategy is the complimentary linking of sites
with the social network media like www.facebook.com or www.twitter.com.
With complimentary links used, surfers who are already on a complimentary
website will be guided to Ai Tunes Karaoke Lounge's site and hopefully made
aware of the new venue for karaoke and nightlife.
Management Summary
5.1 Personnel Plan
Management will be the driving force behind Ai Tunes Karaoke Lounge.
Management responsibilities include but not limited to: vendor relations and
product procurement, marketing, sales, accounting (initially), tournament
formation and management, and bartending. In addition to manager the
following positions are also filled:
• Bartender: In addition to tending bar and serving drinks, this position will
help with the cleaning and busing of tables as well as opening and closing
activities. When it is slow the position will also assist in the limited food
preparation. There will be multiple bartenders, typically having part-time
shifts.
• Bartender assistant: This position will back up the bartender in any
activities that are needed such as cleaning, busing tables, assistance will
table rental. This position will also help out with many of the back-end
activities. There will be multiple people holding this position.
• Servers: A position that will be the keystones to success. Servers will
know all of the served food and drinks on the menu. The position also
requires basic knowledge of how technicalities behind the karaoke
system. Ai Tunes Karaoke Lounge will employ people who are not just
‘order takers’ but will upsell products and keep customers returning.
There will be multiple people holding this position.
6.1 Sales Details
Property Details
Address
County
Property Size
Parking
Year Built
Zoning
Price For Business
Price for Real Estate AS-IS
4771 Britt Rd Unit E7 Norcross,
GA, 30093
Gwinnett
7,827 SF
50+ parking space available
1985
C2
$180,000
$120/SF or $940,000
*Purchase of Real Estate MUST
accompany Business*
Financial Details
Gross Operating Income
Net Operating Income
Rental Rate
CAM
Lease Terms
Extension Option
Price for Business
Price for Real Estate
Available after Signing CDA
Available after Signing CDA
$6/SF
$2.50
3 Years with $1/SF escalations
the 2nd and 3rd year
One 3-year option
$180,000
$120/SF or $940,000
*Purchase of Real Estate MUST
accompany Business
* CONFIDIENTIAL OFFERING: Please do not disturb Tenant’s business
or employees