Sports Bar Business Plan

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Take Five Sports Bar and Grill

Executive Summary

Opportunity

Problem

Watching sports is a group activity. Going to each other’s houses get tedious. People need a place to go to watch, to cheer, to eat their favorite game foods, and get their favorite drinks. After, a night of enjoyment, they happily go home

Solution

Take Five Sports Bar and Grill strives to be the premier sports theme restaurant in the Southeast Region. Our goal is to be a step ahead of the competition. We want our customers to have more fun during their leisure time. We provide more televisions with more sporting events than anywhere else in the region. We provide state-of-the-art table-top audio control at each table so the customer can listen to the selected program of his or her choice without interference from background noise. We combine menu selection, atmosphere, ambiance, and service to create a sense of "place" in order to reach our goal of overall value in a dining/entertainment experience.

Market

Bars and Taverns are local gathering places where customers can eat bar food and drink alcohol-based and non-alcoholic drinks. Historically, bars and taverns are places that could have a relationship with certain vendors or suppliers to market or increase awareness of specific brands. Bars and taverns are casual environments generally containing bar stools and tables. There can be entertainment which includes; music, bands, comedy shows and dancing.

Specials may be offered to increase attendance or draw certain audiences. There are cocktail bars which generally serve light h’orderves or snacks. It can be attached to a restaurant or hotel. Wine bars cater to individuals that like upscale wines. Martini bars cater to individuals with a penchant for martinis. There are biker bars, gay bars, lesbian bars, alternate bars, singles bars, and college bars. Generally, the specific adjective describes the type of person associated with the type of person, who attends. Minors can have restricted access based on time of day or individual the person is accompanied by.  Most municipalities regulate hours of operation and zoning laws.

 

 

Competition

According to Technomic’s BarTAB (Trends in Adult Beverage) report, the 2013 Top 100 Nightclub & Bar venues generated $1.5 billion in total revenue. More than two-thirds (68.2%) of operators surveyed experienced revenue growth in 2012, and nearly two-thirds of them (31.4%) reported revenue growth in excess of 10%. Once again, the top nightclub and bar venues outperformed the industry overall. The bar and nightclub segment grew 3.9% in 2012. Through 2015, the industry is projected to continue experiencing competition from non-industry establishments such as restaurants as well as from people opting to drink at home.

While the distilled spirits industry has been lucrative, Federal and state excise taxes play a significant role in the industry. In 2005, The National Center for Policy Analysis (NCPA) reported that thirteen states sought increases in taxes and related fees on alcoholic beverages. Further, taxes on distilled spirits were about $0.21 per ounce of alcohol. According to the Distilled Spirits Council (DSC) of the United States, "distilled spirits are one of the most heavily taxed consumer products in the United States. More than half of the price that consumers spend on a typical bottle of distilled spirits goes toward a tax of some kind." The resulting effect on the entire hospitality industry is wide-reaching, as the DSC goes on to say "When beverage alcohol taxes are increased, it creates a devastating ripple effect on jobs throughout the entire hospitality industry."

  

Distilled Spirits Council reported that supplier sales were up 4 percent in 2014 to $23.1 billion, and total U.S. volume growth increased 2.2% to 210 million cases.  It is estimated that overall retail sales of distilled spirits in the U.S. market is nearly $70 billion, supporting hundreds of thousands of jobs in the hospitality industry and producing over $20 billion in tax revenues for all levels of government.

Despite the excise tax, the U.S. Department of Commerce reported that adjusted alcohol sales were up 5.2 percent to nearly $9.2 billion in June of 2008 over the same period a year earlier. Also, according to the NCPA, the total amount of Federal excise tax collected from the distilled spirits category for 2006 was $4.4 billion, from the beer category for $3.6 billion, from the wine category for $800 million. Additionally, state taxes during that same time reached nearly $5 billion.

Of the total 58,829 establishments in 2009, 20.2 percent were classified broadly as drinking places, which accounted for 11,502 establishments and $4.1 billion in 2009 revenues. Of the 71.7 percent of places classified as bars and lounges, 6.2 percent fell under the general classification with 3,523 firms and $858.9 million 2009 revenues; 31.2 percent were classified as taverns with 17,732 establishments$3.7 billion in 2009 revenues; 20.4 percent were classified as bars with 11,569 establishments and $3.11 billion in 2009 revenues; 11.6 were classified as cocktail lounges with 6,599 establishments and $1.61 billion in revenues. Smaller portions of this segment were made up of saloons, beer gardens, and wine bars. Finally, night clubs, cabarets, and discotheques combined for an 8 percent market share, or 4,541 establishments, and combined 2009 revenues of $1.89 billion.

Why Us?

Take Five Sports Bar and Grill strives to be the premier sports theme restaurant in the Southeast Region. Our goal is to be a step ahead of the competition. We want our customers to have more fun during their leisure time. We provide more televisions with more sporting events than anywhere else in the region. We provide state-of-the-art table-top audio control at each table so the customer can listen to the selected program of his or her choice without interference from background noise. We combine menu selection, atmosphere, ambiance, and service to create a sense of "place" in order to reach our goal of over-all value in a dining/entertainment experience.

Expectations

Forecast

 First year operations will produce a net profit of $445,000. Since 10 months of operations have already been completed the confidence level for final first year numbers is extremely high. The first 10 months of start-up costs, sales revenues, and operating expenses are actual.

 

 

Financial Highlights by Year

Chart visualizing the data for Financial Highlights by Year

Financing Needed

We will be using $625000. 

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