Business Plan - 21 & Over sports hangout & dance party

Brad Daugherty, Nick Alves, and Chris Jaramillo
October 7th, 2014
21 & Over Sports Hangout and Dance Party
Executive Summary
Our business that we are creating is a 21 & Over Sports Hangout and
Dance Party. If you had nothing to do on Friday and Saturday nights, now you
do. At this Sports Restaurant, not only do we have some of the top chefs making
excellent food, but we have every sports game on one of our 27 HD Flat Screen
tvs along with a dance floor and DJ for those who are in the mood to dance. Our
opportunity in the sports market is unbelievably bright. The citizens who inhabit in
the East Hanover/Florham Park area are tired of the generic restaurants like
Applebee’s and Chili’s. During football season our restaurant thrives due to the
fact that guys will meet up with their buddies and watch football all day on
Sundays. Also, it’s the playoffs for the MLB so we are thriving off of that too. Our
management team will be the top team in the tri-state area. We are recruiting the
top chefs by making them do cook-offs, we’re recruiting the top managers by
giving them tough situations and seeing how they respond, and we’re recruiting
our waiters/waitresses by seeing who can quickly and efficiently clear tables
along with bring food out to tables. In the past, Chris, Nick, and I have all worked
as bartenders in a variety of restaurants. In fact, we all owned a Buffalo Wild
Wings back in 2001 until we sold it for a 350% profit.
The Business
As previously stated, Chris, Nick, and I have all worked as bartenders in a
variety of restaurants. In fact, we all owned a Buffalo Wild Wings back in 2001
until we sold it for a 350% profit. Us three, being the owners, will take the total
profit and split it in thirds to keep everything balanced and fair. Our business is
going to be a restaurant-like set-up with a big dance floor and dj. The reason our
business stands out and is better than other hangouts and dance parties is
because we’ve decided to take both of those things and make it into one big
place. Not only can you order some of the top food in New Jersey made by some
of the top chefs, you can enjoy whatever sports game you’re in the mood to
watch or even dance the night away with your friends. We believe we will, after
time, be a very popular restaurant reeling in numerous customers ready to spend
money. Our customers will gain many things through coming to our restaurant.
Some of them are: If the game you intend to watch isn’t being aired on tv, we’ll
have it being played. If you want to drop your paperwork and stress and have a
good time with your friends and colleagues, our place is the place to be. If you
just want to get a good meal with a positive and friendly environment, then the
21+Over Sports Hangout and Dance Party is the place to be. We will also have a
website in which we will take constructive criticism to help make our restaurant
the best it can possibly be. Being as realistic as possible, we believe we will
struggle bringing in customers at first. We are very confident that once we get
customers we will gradually start growing, but it is going to be tough getting
people to actually come which is why we are going to promote it many ways such
as Facebook, Craigslist, and even just handing out flyers outside stores such as
Target, Costco, Wal-Mart, etc. We have bought iPads and specially installed
them into the tables at our restaurant. We did this because now people can order
what they want right from the iPad and this allows for less waiting (perhaps we’re
busy and short on waiters/waitresses) which will allow for people to be more
Markets and Competitors
We as owners, Chris Jaramillo, Brad Daugherty, and Nick Alves, of 21 & Over
Sports Hangout and Dance Party are targeting local customers who live within a
10 mile radius of our location. These customers desire a place to relax, unwind,
and have fun in a beautifully designed space. They range in age from 21 and 60
with an average household income of $50,000+. They consist of 60% male and
40% female.
Recent market trends show that consumers want upgrades in the interior decor,
want excellent food and want fast and efficient service. 21 & Over Sports
Hangout and Dance Party is designed to embrace these trends. Our facility is
equipped with 27 HD flat screen televisions with ample and comfortable
seating. We also offer a generous sized dance floor with a DJ for those who
want to get funky. We have hired top chefs who will prepare daily gourmet
specials along with our extensive a la carte menu. We have hired an efficient and
reliable wait staff/bartenders/managers whom have all been trained on our
POS(point of sale) system.
Outline of key characteristics of buyers:
Age: Generation X and Generation Y/Millenniums
Generation X
Born 1966-1976
Generation Y
Born 1977-1997
Specifically, those from the ages of 21-45
Income: mid range
The target market’s income level is low to high. The restaurant caters to
those who can afford an expensive meal with drinks and for those who
don’t want to spend a lot of money.
Marital Status: Both single and married
Single -This target market is made up of singles and college students in
their early twenties
Married - This target market is made up of couples and those who have
Ethnic Background: All
The target market will be all ethnic backgrounds that have a love of sports and
love to have a great time. For the different sports our target will be based on a
particular group such as for soccer we will target the people of Hispanic and
European descent.
Works or goes to school but wants to go out and have fun.
Constantly online looking up scores of their favorite teams.
21-30 year olds eat out and drink alcohol outside the home more often
Generation X tends to prefer casual establishment with comfort and a
good value.
Love to go out and watch a sporting event
Want to have fun
We, as owners, have targeted this location for our establishment because there
is a need for a finer “sports hangout and dance party” place in the area. There
are four comparables within a ten mile radius of our location. They are
Applebee’s, Chili’s, TGI Friday’s, and Miami Mikes. Applebee’s was established
in 1998 and is a 15,00 square foot restaurant and bar. It generates
approximately $4 million annually and has 40 employees. Applebee’s target
market caters primarily to families and is not the same target market as ours and
will not compete directly with us. Chili’s was established in 2005 and is a 14,00
square foot restaurant and bar. It generates approximately $3.5 million annually
and has 35 employees. As like Applebee’s, Chili’s target market caters primarily
to families and is not the same target market as ours and will not compete
directly with us. TGI Friday’s was established in 1995 and is a 17,000 square
foot restaurant and bar. It generates approximately $5 million annually and has
50 employees. Unlike Applebee’s and Chili’s it has a larger bar area and more
televisions. They have also added many new menu items to keep up with the
trends. This will be a competitor but our establishment is newer and more state
of the art than TGI and we also offer a dance floor and DJ. Miami Mike’s was
established in 2000 and is a 13,000 square foot restaurant and bar. It generates
$2.5 million annually and has 20 employees. Miami Mike’s has a limited menu
and is not known for their quality of food. They have a large screen televisions
but are due for a makeover. Miami Mike’s is run down and is located inside a
hotel. Even though this is a competitor, our establishment is newer, has better
food, and a dance floor with DJ.
Sales and Marketing
As the previous owners of a very successful wings restaurant, we know what our
customers’ needs and wants are. 21 & Over Sports Hangout and Dance Party
will fill that void of having no place to go. Our customers want a great designed
space, with delicious food, and excellent service. We as owners will make sure
our customers are content and will want to come back and tell everyone they
know what a great place we have. 21 & Over Sports Hangout and Dance Party’s
pricing will be similar to our competitor's prices but our quality will be better
because of the locally grown produce we will use. The appetizers range from $5$15, burgers and sandwiches range from $8-$14, and entrees range from $16$30. 21 & Over Sports Hangout and Dance Party will reach our customers
through our website, outdoor signage and word of mouth. Our first customers
will be the locals in the area who need a place to relax, unwind and have some
fun in a convenient location. 21 & Over Sports Hangout and Dance Party will use
local advertising through direct mail and outdoor signage to get our customers to
our door as our primary advertising strategy. We have also set up a website
which will feature our address, phone number, hours of operations, menu items,
and map so everyone can find us easily. 21 & Over Sport Hangout and Dance
Party will see most of the profits from the sale of entrees with appetizers coming
in second followed by the beverages. To increase sales we will make sure all
employees are trained and well versed to sell our products to our customers.
The three of us, Nick Alves, Brad Daugherty,and Chris Jaramillo will be the
owners who oversee all of the financial aspects of our restaurant. We will hire a
professional manager to take care of the actual restaurant duties such as
managing the performance of the employees and making sure that everything is
running smoothly throughout the working hours. We will also hire 5 bus boys, 8
waitresses, a chef and an assistant chef, 4 juice pourers, 1 hot hostess, and a
sweaty fat male DJ. Nick has a background in business management and
graduated from the business school of Cornell. Brad has a background in sales
management and graduated from the business school of Harvard.
Chris has a background in marketing management and graduated from the
business school of Yale. Nick will be covering area of production and
administration while Brad covers sales and Chris covers the marketing aspect.
All three will cover the finance area.
Financial Requirements
Mozzarella Sticks: $5
5-Layered Nachos: $7
Fireball Buffalo Wings (Boneless or on the Bone): 10-$6, 20-$12, 50-$28
Brad’s Jaeger Fries: $5
Chris’ Crispy Chicken Fingers: $6
Smernoff Salad: $6
Fried Calamari: $6
Pigs in a Blanket: 6-$4, 12-$8
Spinach and Artichoke Dip: $5
Chips and Salsa: $5
Prime Time
Nick’s Black Label Burger: $10
Captain Jorgan’s Skirt Steak: $18
Philly Cheesesteak: $10
Chicken Sandwhich:$8
Baby Back Ribs: Half Rack-$10, Full Rack-$16
Quesadilla Burger: $9
Angus Smokehouse Bacon Burger: $12
Buffalo Chicken Wrap: $8
Ice Cream (3 Scoops of Vanilla, Chocolate, or Strawberry w/ choice of toppings):
Chocolate Molten Lava Cake: $7
Cheese Cake: $6
Cookie Madness: $6
Cinnamon Squares: $6
Chocolate Chip Cookie Sundae: $7
Brownie Obsession: $7
Coke: $2
Root Beer: $2
Sprite: $2
Dr. Pepper: $2
Iced Tea (Sweetened or Unsweetened): $2
Shirley Temple “Mloody Barry”: $4
Milkshakes (Chocolate, Vanilla, or Strawberry): $5
Water: Free
To start this business off we will need some loans. We will ask the bank to loan
us money and over time we will pay them back with interest. Due to the imminent
popularity and success of our establishment we should be able to payback the
loans fairly quickly minimizing the amount of interest we must pay.