The Watertower Cafe

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Cafe Bistro Coffeehouse Business Plan

Company Summary

The Watertower is a bistro and coffeehouse facility located in a renovated house immediately adjacent to the Studioplex on Auburn residential loft development. The Watertower derives its name from an historic 200+ foot tall watertower located on the grounds of the restaurant, and immediately across the street from the main entrance of the Studioplex facility. Architecturally, this watertower will serve as a beacon/locator for our facility as it towers over the southern end of the Old Fourth Ward neighborhood and the eastern end of the Sweet Auburn residential and business district.

The facility is bordered by Auburn Avenue to the south and Irwin Street to the north. Residential live/work townhouses are planned for construction across the street from, and adjacent to, The Watertower on Irwin Street.

2.1 Company Ownership

The Watertower is a privately held limited liability corporation wholly owned by David N. Patton IV(80%) and the Historic District Development Corporation (20%).

2.2 Start-up Summary

The start-up costs for The Watertower cafe can be found in the chart and table below.

Since the business property is located in an enterprise zone, property taxes on the property are abated for the initial years covered by the business plan. The owner/general manager will be responsible for maintaining insurance that will cover the loss of the building and all of its contents, as well as insurance covering business interruption and death or injury to himself.


Start-up Expenses
Legal $2,000
Stationery etc. $500
Brochures $500
Consultants $1,500
Insurance $1,745
Debt Service $5,000
Licenses/Tax/Deposits $12,000
Expensed Equipment $36,600
Employee/Payroll $26,834
Accounting $1,000
Soft Opening Expense $4,000
Grand Opening Advertising $3,000
Misc. Expenses $2,000
Total Start-up Expenses $96,679
Start-up Assets
Cash Required $100,000
Start-up Inventory $61,157
Other Current Assets $0
Long-term Assets $595,040
Total Assets $756,197
Total Requirements $852,876
Start-up Funding
Start-up Expenses to Fund $96,679
Start-up Assets to Fund $756,197
Total Funding Required $852,876
Non-cash Assets from Start-up $656,197
Cash Requirements from Start-up $100,000
Additional Cash Raised $0
Cash Balance on Starting Date $100,000
Total Assets $756,197
Liabilities and Capital
Current Borrowing $29,850
Long-term Liabilities $695,399
Accounts Payable (Outstanding Bills) $29,627
Other Current Liabilities (interest-free) $0
Total Liabilities $754,876
Planned Investment
Investor 1(Home Equity/Pre-develop. Invest) $64,000
Investor 2(Pre-development Investment) $34,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $98,000
Loss at Start-up (Start-up Expenses) ($96,679)
Total Capital $1,321
Total Capital and Liabilities $756,197
Total Funding $852,876

2.3 Company Locations and Facilities

The Watertower will be located in a newly renovated facility designed by the architectural firm of Richard Rauh & Associates, Atlanta, GA.

The facility will be divided equally between the cafe/restaurant function and the coffeehouse/entertainment function. The restaurant will feature dining room seating for approximately 100 patrons and flexible indoor/outdoor patio seating for an additional 40 patrons. The cafe/coffeehouse will provide a full-service dine-in and carry-out coffee-based beverages, as well as a dessert bar. The coffeehouse/cafe portion of the business will also contain a full-service bar, a small entertainment stage, and niche magazines and newspapers available for purchase. The coffeehouse will maintain ample indoor/outdoor seating under a covered patio space shared with the restaurant.

The facility's perimeter will feature a simple garden and bocci courts which will provide comfortable waiting areas during the warm weather months.

Finally, an historic 200+ foot watertower forms the centerpiece of the grounds immediately adjacent to the proposed business. This watertower, constructed in 1906, features extraordinary cathedral-like interior space. It is our hope that our construction plans will support dramatic lighting of the tower after sundown, creating a rather visible nighttime landmark for northeast Atlanta.

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