{Website: www.thearchivelounge.weebly.com}
BUSINESS PLAN
January 2015
CREATED BY:
BENTLEY HALE
bentleyhale@gmail.com
*PLEASE VISIT THE “MOCK”RESTAURANT PRESENTATION WEBSITE:
www.thearchivelounge.weebly.com
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
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TABLE OF CONTENTS:
The Archive Business Plan
I. Executive Summary
1. General Manager/Owner Structure
2. Mission Statement
3. Location
4. Projection of Business Future
5. Financial Summary
II. Market Analysis
1. Competition
2. Competitive Analysis
3. Demographics & Target Market
4. Entry Barriers
III. Marketing Strategy
1. Product/Service
2. Sales Strategy
3. Promotions/Special Events
4. Pricing Strategy
5. Web Strategy
IV. Operations Plan
1. Operation
2. Organization Structure
3. Employees
4. Space / Capacity
5. Critical Suppliers
6. Financial system
7. Computer system
8. Equipment
9. Permits and Licenses
10. Contracts
V. Financial Plan
1. Product and Service Pricing
2. Funding Source(s)
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
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I. EXECUTIVE SUMMARY
This business plan is for The Archive Tasting Room & Lounge; the only libation resource library in Downtown Phoenix.
The Archive is an educational, tasting-oriented lounge and retail shop with gourmet appetizers and small plate pairings
where guests can see, sip, smell, and taste their way to a truly unique culinary experience.
1. Restaurant Partners/General Managers
Steven and Bentley Johnson will be restaurant partners within the business structure and also General
Managers for The Archive Tasting Room & Lounge;
About Bentley Johnson: General Manager
Bentley began working in the restaurant industry at the age of 15. Her hands on experiences have included:
dishwasher, bus girl, hostess, and bartender. Bentley continued working her way up to training manager as well
as restaurant/private club management; all while attending and thus graduating from the Art Institute with a
Bachelor’s of Science in Interior Design. Her highly regarded graduate thesis focused on restaurant design and
marketing. With over 14 years of restaurant experience under her belt, Bentley is now completing her M.B.A in
Hospitality Management.
Bentley’s Previous Restaurant Experience:
1. Los Gringos Locos Mexican Restaurant, La Canada, CA.
(Hostess, Server, Trainer, Bartender, Office Assistant, Design Assistant for expansion)
2. Ramono’s Macaroni Grill, Northridge, CA. (Server)
3. Claim Jumper Restaurant, Northridge, CA. (Server)
4. Cheesecake Factory, Woodland Hills, CA (Server and Trainer)
5. Limon Latin Grill, Simi Valley, CA. (Server, experienced new restaurant opening)
6. New Moon Restaurant, Montrose, CA.
(Server, Trainer, Bartender, Design Assistant for restaurant expansion)
7. DISH Restaurant, La Canada, CA (Bartender, Restaurant Management, Catering)
8. Las Sendas Golf Club, Mesa, AZ. (Assistant General Manager)
*Please see Bentley's resume overview for her full work experience which includes additional real estate, interior
design, and marketing positions.
About Steven Johnson: Retail Shop Manager
Steven was first introduced to the restaurant industry as a student in high school where he worked various
positions in both front and back of house at House of Munich in Chula Vista, CA. Steven continued to work in
restaurants extracurricularly throughout college and into his professional careers where he learned that he
enjoyed the customer service industry; taking care of people and making guests feel at home. He developed a
true desire to feed people good food and establish meaningful relationships with regular guests.
Steven’s Restaurant & Administrative Experience:
1. House of Munich, Chula Vista, CA. (Dishwasher, Busboy, Host, Server)
2. Loves, San Diego, CA (Busboy, Host, Server)
3. Iron Hill Brewery, Philadelphia, CA (Dishwasher, Busboy, Host, Server)
4. Yellowbook USA (Accounts Payable, Business to Business Collections)
5. Victoria Secret (Inventory Management, Loss Prevention)
6. Gateway Funding (Administrative & Transaction Paperwork Coordinator)
2. Mission Statement
The Archive Tasting Room is an educational, tasting-oriented lounge with gourmet appetizers and small plate
pairings surrounded with casually elegant designs reminiscent of historic libraries and study halls. The
combination of our educational tasting menus and unique atmosphere provides an unparalleled culinary
experience that ignites the "foodie" imagination and excitement of our guests. The Archive hosts a wide variety
of events both large and small throughout the year. From guest winemakers, brewers, and distillers to holiday
parties and dinner series, events at The Archive are often educational in nature, occasionally for members only,
and always an adventure.
3. Location
The Archive Tasting Room & Lounge will be located in Downtown Phoenix
4. Projection of Business Future
After successful start-up of The Archive Tasting Room & Lounge, there will be plans to open additional
locations throughout Arizona with expansions into other states.
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
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5. Financial Summary
i.
ii.
iii.
iv.
Total amount of estimated startup costs: $180,000
Total amount of projected average monthly expenses: $44,287
Total amount of projected average monthly revenue: $61,890
Total amount of projected NET monthly profit: $17,603
*Please refer to the Financial Forecast & Budget document for more in depth reports, all revenues are
calculated based on low average sales & checks.
II. MARKET ANALYSIS
Because of Bentley’s connections within the Phoenix/Scottsdale community, she has an excellent feel for the area and its
core group of customers. She is also very familiar with the other restaurants in Phoenix, which allows her to capitalize on
what is missing in the competition. There are many restaurants in the area that are prospering, even when their concept is
misguided or confusing to the consumer. The Archive Tasting Room & Lounge will be a big contender within the popular
“hot spots” because the concept of The Archive Tasting Room & Lounge will make sense and flow easily. Guests will feel
comfortable and will want to keep coming back to a place they know is not only unique but educational as well.
1. Competition
There are many restaurants and bars located in downtown phoenix but very few wine bars and tasting rooms
located in the immediate area close to the Renaissance Hotel. There are not any boutique wine shops or
gourmet retail stores located near the site location in Downtown Phoenix. Please refer to the concept
presentation website for an interactive Market Analysis map showing competition locations. (Screenshot of map
is displayed below) Website Link: http://thearchivelounge.weebly.com/market-research.html
2. Competitive Analysis
The Archive will stand out as a popular tasting lounge offering unique ambiance, personalized customer service,
and educational dining experiences that will set itself apart from similar wine bars and cocktail lounges in the
immediate area. The Archive will be the ONLY library inspired/design theme tasting room concept in Downtown
Phoenix. The Archive will also be open late on the weekends but will be an intimate, date-night option instead
of a loud, DJ themed bar that many of the other late-night spots feature on the weekend. There are many
people who like to go out late on the weekends with friends and significant others but like to find options that
are quiet where they can socialize without fighting over live music noise- The Archive will be the perfect spot to
socialize in a unique atmosphere. (Please refer to the interactive Market Analysis report on the website for more information)
Listed below is an analysis of comparable establishments near the proposed location for The Archive;
i. Wine Shops/Gourmet Retail Stores: None
ii. Wine Bars: Hanny’s (closest location), District American Kitchen, Province (Westin), Pizzeria Bianco
These locations offer wine and have a nice ambiance but are different concepts; they have more
modern design themes and focus on seasonal menus.
iii. Unique Cocktail Selections/Lounges: Bitter & Twisted Cocktail Parlour, Blue Hound Kitchen & Cocktails,
Arrogant Butcher, Film Bar, Hanny’s
iv. Interesting Design/Unique Ambiance: Film Bar, Lost Leaf, CIBO, Bitter & Twisted, Blue Hound Kitchen,
Compass Grill
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3. Demographics & Target Market
Market Segments:
1. Local Downtown Business Men & Women
2. Local Downtown Residents
3. Renaissance Hotel Guests
4. Downtown Weekend Event Crowd
5. Museum Crowd
6. Young “Hip” Adults- Singles & Couples
7. “Date-Night” Crowd
8. “Happy Hour” Crowd
9. Restaurant Service Industry People
10. Wine And “Foodie” Consumers
3. Entry Barriers
i. OBTAINING LIQUOR LICENSE:
There are many county restrictions on liquor licenses and there may be some restrictions or time lines
for obtaining a full liquor license. However, a wine and beer license is not as difficult to obtain, and
could be a viable resort until a full liquor license is permitted. Another option would be to buy a liquor
license off of an existing restaurant site if taking over property.
ii. OBTAINING CITY BUILDING & BUSINESS PERMITS:
Thorough correspondence with the city building department for any renovations or rebuilds will be a
primary focus to ensure the restaurant opening is on schedule. Fortunately, Bentley is experienced in
the design industry and will work closely with the architect to ensure a timely design/renovation for
the initial opening- she has experience working with California building departments on commercial
renovations.
III. MARKETING STRATEGY
The marketing strategy is simple, to provide unique, high quality food and beverages while creating an innovative
atmosphere. The Archive Tasting Room & Lounge will have a competitive edge in the market by staying up-to- date on
current trends and listening to the community for what they want out of a local restaurant and tasting room.
1. Product/Service
i. Please go to our mock up restaurant website to view a full presentation:
http://thearchivelounge.weebly.com/
2. Sales Strategy
The Archive Tasting Room & Lounge has projected annual net profit of $206,000 within the first year with
numbers rising significantly in the following years at a 30% increase. These sales forecasts are based on low to
medium check averages and are expected to be much higher, but are reflecting a realistic approach with low to
medium sales projections. The first year will essentially pay for the initial investment put in, and includes an
investor 5 year payback payment plan including a 10% ROI per year.
3. Promotions/Special Events
i. PROMOTIONS:
a)
b)
c)
d)
e)
f)
g)
The Archive Tasting Room & Lounge will be in a high traffic location
Advertise in the local newspaper, businesses, museums, downtown special event sites
Extensive Social Media Campaigns; Facebook, Twitter, Instagram, etc
There will be a mobile app created to keep in contact with our guests via phones and tablets
Email club memberships: Library Card Membership
Flyer Handouts
Teaming up with nearby apartments and condos to put mailers and advertising in the mail
rooms/common areas and in new resident’s gifts bags.
h) Teaming up with different offices near-by to host their office parties or special luncheons
i) Have regular special events, tasting and pairing events, and community fundraisers, etc.
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
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ii. EVENTS:
The Archive will host a wide variety of events both large and small throughout the year. From guest
winemakers, brewers, and distillers to holiday parties and dinner series, events at The Archive are
often educational in nature, occasionally for members only, and always an adventure.
WEEKLY EVENTS
1.
MONDAY NIGHTS: “TASTING PANEL” NIGHT
Anyone can come and sample the new products that The Archive Tasting Room & Lounge will be serving
and can give feedback and suggestions as to what specials should be used each week.
This night will be mostly geared for employees to bring friends or regulars to give fresh ideas.
2.
TUESDAYS: “GUEST BARTENDER NIGHT”
Tuesday nights we will be “guest” bartender night. The guest bartender will either be a regular who
frequents the restaurant or a representative from one of our products. By having a regular be a
bartender for a night it will hopefully bring in a bigger crowd because they will help promote that
evening. If we have a representative from a winery or brewery we will market it as an educational guest
to do tasting seminars. There is also the option of having a “guest bartender” from a charity with
proceeds from the evening being donated to that respective charity.
3.
WINE WEDNESDAYS: HAPPY HOUR WINE PRICES ALL NIGHT
4.
SATURDAYS: WINE CLASSES/RESOURCE ROOM
Through our weekly tastings, special events, and classes, guests can learn firsthand from our industry
experts and special guest instructors. Each weekend, our team picks a different tasting theme. The
classes include expert instruction, special tasting selections, tasting sheets, educational materials and
special discounts on the products presented
5.
SUNDAYS: CHAMPAGNE BRUNCH
SEASONAL EVENTS:
FEBRUARY
Valentine’s Day
Restaurant: Valentine’s Day Wine
Tasting & Dinner Pairing
Classroom:
Chocolate and Wine Pairing Class,
Cupcake & Wine Pairings, Single &
Mingle Tasting Class
MARCH
St. Patrick’s Day
Restaurant: Craft Beer & Traditional
Irish Pairings, St. Patrick's Day Party
Classroom: Irish Whiskey
Course/Tastings, Irish Beers, etc.
APRIL
Easter: Champagne Brunch &
Mimosa Features
Champagne Buffet brunch will be
served with special Mimosas
MAY
-Cinco De Mayo
Restaurant: Featured wine, beer, and
spirits from Mexico with cultural
inspired food pairings
Classroom: Tequila Tastings, Mezcal
Tastings, Kahlua & Dessert Pairings,
How to: Margaritas at home, etc.
-Mother’s Day
Restaurant: Mother’s Day Brunch,
Mother’s Day Dinner Pairing
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
JUNE
Father’s Day - Golf & Wine
Wine tastings featuring wine from pro-golfers
Classroom & Food Pairings:
Whiskey & Gin Tasting
OCTOBER
Halloween
Restaurant: Halloween inspired food and beverage
selections featured during October.
"Hallo-Wine" Holiday Party: Halloween Food and
Wine Pairing dinner event and party
Classroom/Exhibit Wall: Halloween & Pumpkin
themed wine, beer, and spirits.
NOVEMBER
Fall Harvest Dinner Pairings
Thanksgiving Day Holiday Party
Family Style Thanksgiving Dinner Pairing; private
event for members, staff, and locals
DECEMBER
Holiday Inspired Tastings & Events
Classroom: Holiday Wine Pairing/ Holiday Cocktails
Exhibit Wall: Holiday Inspired Beer, Wine, and Spirits
Christmas Eve Dinner
Family Style Christmas Dinner Pairing; private event
for members, staff, and locals
New Year’s Eve Party
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4. Pricing Strategy
The Archive Tasting Room & Lounge pricing structure will have a few different strategic approaches;
i. Follow-the-leader pricing strategy:
Set pricing based on competition with local bars
ii. Variable pricing strategy:
Pricing will vary based on (changing) cost of production, but will try and maintain 25% F&B cost
iii. Premium Pricing:
There will be a few items that are priced higher because of their premium quality and availability
5. Web Strategy
The Archive Tasting Room & Lounge website will be used for advertising and promotions along with consumer
education. There will be an “education” page focusing on the featured theme and exhibit of the month. There
will also be a large emphasis on social networking; Facebook, Twitter, Open Table, Four Square, Yelp, etc.
IV. OPERATIONS PLAN
1. Operation
i. The Archive Tasting Room & Lounge will open estimated 2-3 months after funding to allow for permits,
concept development, design, building renovations, and staff training.
ii. Hours of Operation:
a) Lounge & Restaurant
Mondays-Thursdays: 3:00 pm – Midnight
Fridays: 3:00 pm - 2:00 am
Saturdays: 10:00 am - 2:00 am
Sundays: 10:00 am – Midnight
b) Resource Room & Retail Shoppe
Mondays-Thursdays: 10:00 am – 9:00 pm
Fridays: 10:00 am - 9:00 pm
Saturdays: 9:00 am- 9:00 pm
Sundays: 9:00 am- 9:00 pm
2. Organization Structure
ECO WINE & DINE LLC will be formed with a D.B.A. The Archive Tasting Room & Lounge. (Creating a
general LLC name allows for expansions into different concepts in the future)
3. Employees
i. 10-11 employees working during a busy evening shift (including the retail shoppe)
ii. Positions & Responsibilities:
-GENERAL MANAGER:
Along with designing the restaurant (which will save on design fee costs that could run up to $10,000)
Bentley will also be the General Manager of The Archive Tasting Room & Lounge. She will be there
almost every day during the initial startup to ensure her assistant managers and staff are being trained
properly. She will be able to work every position/station in the restaurant in-case of an emergency or
if staff doesn’t show up for their shift. She will also work as a bartender or bar-back on the slower
nights to save labor hours. She will oversee all operations and will work closely with the head chef and
assistant managers to create a team environment. an accountant and business advisor will be used on
a consultation/contract basis.
-ASSISTANT MANAGERS/SUPERVISORS:
(1) Assistant General Manager
(1) Retail/Resource Room Manager/Assistant Restaurant Manager
(1) Head Bartender
(1) Head Chef
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
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(1) Sous Chef or Shift Supervisors
-BARTENDERS:
There will need to be at least 3 additional bartenders other than the head bartender to keep
operations running smoothly and to prevent overtime for employees. The bartenders will have to know
full service bar techniques along with extensive wine and beer knowledge. There will be both day and
evening bar shifts on the weekends.
-BAR BACK:
The bar backs will be scheduled on busy shifts (weekends and special events) they will help clean
glasses, and replenish the bar with any garnishes or ice when needed.
-SERVERS:
During busy shifts there will be enough servers to have 4-5 table sections. Based on a 20 table
occupancy there need to be 2-3 servers scheduled during one shift.
-HOSTESS
-RETAIL SHOP SALES
-KITCHEN STAFF
PROJECTED WEEKLY EMPLOYEE SCHEDULE/LABOR REPORT
Estimated weekly labor wages: $4,188
*Please refer to the Financial Forecast & Budget document for an example weekly labor schedule.
4. Space/Capacity
Ideally the location will have two designated areas; the lounge/bar and the Resource Room/Retail Shoppe
which will be connected through an opening towards the front entrance. There will be a small kitchen layout
suitable for small plates and appetizers.
5. Critical Suppliers
i. FOOD & RESTAURANT SUPPLIERS:
a.
b.
c.
d.
e.
f.
g.
h.
Sysco
Katom Restaurant Supply
Pacific Fish
Albert’s Organics
Gourmet Imports
Sustainable & Organic food suppliers
direct shopping at Farmers Markets
daily/weekly shopping and local markets for unique ingredients
ii. BEER, WINE, AND LIQUOR DISTRIBUTORS:
a.
b.
c.
d.
e.
f.
g.
Young’s Market (AZ)
Southern Wine & Spirits (AZ)
Alliance Beverage (AZ)
Hensley (AZ)
Valley of the Sun Wines (AZ)
Quench Wines
Other Arizona beer and wine distributors or direct wineries
5. Financial System
The Archive Tasting Room & Lounge will have an accountant consultant to help with the startup and will be
available on a contract basis thereafter. Bentley and the assistant managers will each have administration days
to help with paperwork and payroll processing. One of the assistant managers will also have restaurant
accounting/bookkeeping skills.
6. Computer System
A standard POS system (Point of Sale) will be used; this system will be able to run cost and labor reports as well
as have customizable functions specific to our needs. It will be able to take credit card payments as well. There
will need to be at least 4 computer stations; one behind the bar, two for inside seating, and one retail shop
system. Restaurant Computer Companies to research for pricing: Aloha, Micros, Unique POS. Please see startup
cost spreadsheet for budget amounts.
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
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7. Equipment
*Please refer to the Startup Budgets for full inventory lists
8. Permits and Licenses (Must research updated 2014/2015 permit applications/requirements)
*In depth information on specific permits and licenses can be found through Arizona Government website.
i.
POTENTIAL CITY PERMITS:
Building and Construction Permit:
Required for all new and remodeling & construction, including change of occupancy.
Burglar Alarm Permit:
A permit must be obtained for any businesses requiring a burglar alarm or security system.
Business License (Business Tax Certificate):
Required for all entities doing business within city limits
Fire Department Inspection/Permit:
All businesses may be subject to a yearly inspection of facility; and a Business Plan/Contingency Plan if
hazardous materials/wastes are on site.
Zoning (Land Use) Approval:
May include Conditional Use Permit, Variance, Dogs on Patio, Sign Permit, Parking Regulations, etc.
ii.
POTENTIAL COUNTY PERMITS :
Business Personal Property:
Property used in the operation of a business such as machinery, equipment, trade fixtures, etc. is taxable
and subject to assessment. Business operations need to file a Business Property Statement annually with
the Assessor declaring property on hand as of January 1 of each year. Generally those businesses with
personal property and fixtures with a cost less than $100,000 are not required to file a property
statement.
Fictitious Name Filing (DBA):
Required if fictitious name is used
Public Health Operating License:
Required of restaurants and businesses manufacturing food, ice or soft drinks
iii.
REGIONAL PERMITS
Authority to Construct/Permit to Operate:
Stationary sources of air emissions from specific types of equipment, industrial processes,
paints and solvents and some consumer products, must be permitted.
iv.
STATE PERMITS & LICENSES
Alcoholic Beverage License:
Any person or entity seeking to sell alcoholic beverages must be licensed. Apply for the license in person
and allow a minimum of 45 to 50 days to process the application.
Corporation, Company or Partnership Filings:
If you are considering becoming a corporation, (either stock or nonprofit), a limited liability company or
a partnership (limited, or limited liability), you must file with the Secretary of State's Office.
Discrimination Law Notices:
Employers must post the Harassment or Discrimination in Employment notice (DFEH 162) and provide
their employees with a copy of the DFEH's information sheet on sexual harassment (DEFH 185) or a
statement that contains equivalent information. Contact: Department of Fair Employment and Housing
Occupational Safety and Health Information:
Businesses with employees must prepare an Injury and Illness Prevention Plan. The state provides a nofee consultation service to assist employers with preventing unsafe working conditions and workplace
hazards. Contact: Cal/OSHA Consultation Services
Registration Form for Employers:
Required to file a registration form within 15 days after paying more than $100.00 in wages to one or
more employees. No distinction is made between full-time and part-time or permanent and temporary
employees in meeting this requirement. Contact: Employment Development Department
The Archive Tasting Bar & Lounge, Business Plan 2015. Bentley Hale.
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Sales & Use Permit (Seller's Permit):
All businesses selling or leasing tangible property must obtain a Seller's Permit.
Contact: State Board of Equalization; Sales/ Use Tax Division
State Income Tax Information:
Businesses should obtain the appropriate State income tax forms from the Franchise Tax Board.
Contact: Franchise Tax Board
Wage/Hour Laws:
Businesses with employees must comply with laws establishing minimum standards for wages, hours
and working conditions. Contact: Department of Industrial Relations; Labor Standards Enforcement
Workers' Compensation Information:
Businesses with employees must maintain Workers' Compensation Insurance coverage on either a selfinsured basis, or provided through a commercial carrier, or the State Workers' Compensation Insurance
Fund. Contact: Department of Industrial Relations; Division of Workers' Compensation
9. Contracts
i. Investor payout contract
ii. Rental/Commercial Lease
iii. Contracts with consultants for startup
V. FINANCIAL PLAN
1.
Product and Service Pricing (please refer to website for menu examples and pricing)
i. WINE LIST:
Our wines will maintain a 20-30% cost percentage. The menu prices will range from $7-$15 dollars for a
glass of wine, and $25 to $75 for a bottle. Half glasses and tasting flights will also be available.
ii. LOCAL MICROBREWS & ORGANIC BEERS
Our beers will also maintain a 20-30% cost percentage, menu prices ranging from $5-$10 for a pint of
draft beer or 12oz bottles, and $10-$15 for larger bottles and specialty beers
iii. LIQUOR & SPIRITS
Our liquor tastings and cocktails will range from $3-$13 dollars, maintaining the 20-30% cost
percentage. Liquor tastes and flights will be offered along with regular pours.
iv. FOOD/APPETIZERS
All of the small plates and appetizers will range from $6 to $15 a plate. Each item will be calculated per
serving cost to maintain a 20-30% food cost percentage.
2. Funding Source(s)
i. INVESTOR AND/OR PARTNERSHIP
Startup capital of $180,000 depending on the exact location and upgrades needed to the property.
Concept with full bar and retail section will be the higher estimate; lower startup funding can be
accomplished without the retail/resource room and only beer and wine selections.
Design costs will also vary greatly depending on location and what may already be available if taking
over an existing restaurant space.
a)
Investor will be paid monthly return payments based on a 10% (ROI) each year for a
maximum 5 years unless paid off sooner. Other investment payouts can be arranged
depending on specific investor interests:
Initial investment: $180,000
10% return on investment/year: $18,000
Total 5 year return on investment: $90,000
Monthly return payments: $4,500 (for 60 months based on $270,000)
ii. COMMERCIAL BANK OR CREDIT UNION
i.
If needed we will apply for a Small Business line of credit
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