On The Water
Strategy and Implementation Summary
The following sections outline the strategy and implementation summary for On The Water.
5.1 Sales Strategy
The important elements of the sales forecast are shown in the following table. The sales of food, drinks, and merchandise take a while to grow but will near $2 million in the second year.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Unit Sales | |||
| Covercharge | 0 | 0 | 0 |
| Meals | 38,277 | 57,000 | 63,000 |
| Drinks | 147,136 | 180,000 | 196,000 |
| Restaurant Merchandise | 1,225 | 3,000 | 3,500 |
| Total Unit Sales | 186,638 | 240,000 | 262,500 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Covercharge | $0.00 | $0.00 | $0.00 |
| Meals | $15.00 | $15.00 | $18.00 |
| Drinks | $5.00 | $5.00 | $6.00 |
| Restaurant Merchandise | $8.00 | $10.00 | $10.00 |
| Sales | |||
| Covercharge | $0 | $0 | $0 |
| Meals | $574,155 | $855,000 | $1,134,000 |
| Drinks | $735,680 | $900,000 | $1,176,000 |
| Restaurant Merchandise | $9,800 | $30,000 | $35,000 |
| Total Sales | $1,319,635 | $1,785,000 | $2,345,000 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Covercharge | $0.00 | $0.00 | $0.00 |
| Meals | $3.00 | $4.00 | $5.00 |
| Drinks | $0.50 | $0.60 | $0.75 |
| Restaurant Merchandise | $3.00 | $4.00 | $4.50 |
| Direct Cost of Sales | |||
| Covercharge | $0 | $0 | $0 |
| Meals | $114,831 | $228,000 | $315,000 |
| Drinks | $73,568 | $108,000 | $147,000 |
| Restaurant Merchandise | $3,675 | $12,000 | $15,750 |
| Subtotal Direct Cost of Sales | $192,074 | $348,000 | $477,750 |
5.2 Milestones
The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are the sales and marketing programs listed in detail in the previous topics.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Getting all furniture for restaurant | 11/4/2000 | 11/13/2000 | $3,000 | LVM | Design |
| Getting jungle decorations for ceiling | 11/4/2000 | 11/18/2000 | $600 | LVM | Design |
| Valet preparations | 10/5/2000 | 10/14/2000 | $500 | LVM | Management |
| Painting/reconstuction of restaurant | 9/4/2000 | 10/16/2000 | $2,000 | LVM | Design |
| Buying food for opening | 10/28/2000 | 10/29/2000 | $500 | LVM | Food |
| Creation and distribution of fliers | 11/4/2000 | 1/20/2001 | $1,000 | LVM | Promotional |
| Website | 9/1/2000 | 10/1/2000 | $1,000 | LVM | Management |
| Production and completion of menus | 10/1/2000 | 10/30/2000 | $400 | LVM | Design |
| Buying all supplies for kitchen | 8/1/2000 | 10/4/2000 | $7,000 | LVM | Management |
| Staff Schedules | 8/1/2000 | 8/15/2000 | $0 | LVM | Management |
| Totals | $16,000 | ||||
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