Table of Contents

I. Executive Summary ............................................................................................... 2

Highlights

Objectives

Mission Statement

Keys to Success

II. Description of Business......................................................................................... 5

Company Ownership/Legal Entity

Location

Hours of Operation

Products and Services

Suppliers

Service

Management

Financial Management

III. Marketing ............................................................................................................. 11

Market Analysis

Market Segmentation

Competition

Pricing

Promotion

IV. Appendix ............................................................................................................... 17

Start-Up Expenses

Determining Start-Up Capital

Cash Flow

Payroll Expenses

Milestones

Break-Even Analysis

VIV’S ALL STAR SPORTS BAR - AUGUST 2015 2

Executive Summary

VIV’s All Sports Bar will be looking to establish favourable presence in the

food and beverage service industry. Site surveys have been completed and

prime locations have been targeted for store expansion.

Management has recognized the rapid growth potential made possible by the

quick success and fast return-on-investment from the current scenario. Payback

of total invested capital on the first location will be realized in less than 18 months

of operation. Cash flow becomes positive from operations immediately and

profits are substantial in the first year.

Highlights

This business strives to provide ambient services to the sport enthusiasts

who just want to sit back and enjoy watching their favorite sports team battle it

out with their mates!

55000

68000

85000

100000

3500045000 50000

60000

20000 2300035000 40000

$0

$20,000

$40,000

$60,000

$80,000

$1,00,000

$1,20,000

2011 2012 2013 2014

FINANCIAL OVERVIEW

Sales Net Profit Expenses


Objectives

All Star has the objective of opening additional stores in Mumbai at Lower

Parel, Vashi, and Thane. Additionally, a store will be opened on the above

mentioned places proportionally as and with the increase in the prominence.

The management of All Star has expects to demonstrate its concept,

execution, marketability, and controls, and feels confident of its ability to

successfully execute them at their initial place i.e. Thane location so that it can

then further be extended to additional venues.

The following objectives have been established:

• Maintain tight control of costs and operations by hiring quality management

at each location and utilizing automated computer control.

• Keep food cost under 32% of revenue.

• Keep beverage cost under 21% of revenue.

• Select only locations that meet all the parameters of success.

• Grow the entity to the Rs.3000k to Rs.5000k annual sales level.

Mission Statement

VIV’s All Star Sports Bar strives to be the premier sports theme restaurant

in the 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.

Keys to Success

The keys to success in achieving our goals are:

• Product quality. Not only great food but great service.

• Managing finances to enable new locations to open at targeted intervals.

• Controlling costs at all times without exception.

• Instituting management controls to insure replicability of operations over multiple

locations. This applies equally to product control and to financial control.


Description of Business

The key elements of Take Five's restaurant store concept are as follows:

• Sports based themes: The Company will focus on themes that have mass appeal.

• Distinctive design features: All stores will be characterized by spectacular visual

design and layout. Each store will display a collection of authentic sports memorabilia.

• High profile locations: The Company selects its store locations based on key

demographic indicators, including traffic counts, average income and number of

households, hotels, and offices within a certain radius.

• Celebrity events: The company stores will be distinguished by the promotional

activities of sports celebrities and by media coverage of appearances and special events.

• Retail merchandising: Each store will include an integrated retail store offering

premium quality merchandise displaying the company’s. In addition sports memorabilia

will be sold.

• Quality food: Each Take Five store will serve freshly prepared, high quality, popular

cuisine that is targeted to appeal to a variety of tastes and budgets with an emphasis on

reasonably and moderately priced signature items of particular appeal to a local market.

• Quality service: In order to maintain its unique image the Company provides attentive

and friendly service with a high ratio of service personnel to customers and also

invests in the training and supervision of its employees.


Company Ownership/Legal Entity

VIV’s All Star Sports Bar is a privately held region based company. Vivekanand

Soma is the principal owner. Mr. Vivek holds an MBA in Operations from AIMA. It

is Mr. Vivek’s intention to offer limited outside ownership in All Star on an equity,

debt, or combination basis in order to facilitate a more rapid expansion of the All

Star concept.

Location

The company units will range in size from 6,000 to 9,000 square feet and will

seat from 225 to 300 persons. Each All Star Sports Bar will feature authentic

sports memorabilia such as Lionel Messi’s game jersey to Roger Federer's

signed tennis racquet to Lewis Hamilton’s replica steering wheel. Each store will

be equipped with state-of-the-art audio and video systems to enable the

customer to enjoy the game of their choice. Restaurant will be built to above

standard specifications, clean looking, open, and pleasing to the customer.

Hours of Operation

The hours of operation will be variable over the various days depending on the

forecasted demand i.e. the hours of operation on the weekends and public holidays

would be kept comparatively more than that on he weekdays when the demand is

evidently less when compared to the weekends & public holidays.

Weekdays: 15:00 to 00:00 hrs

Weekends & Public Holidays: 11:00 to 01:00 hrs


Products Offered

Our focus will be on serving top quality continental food in terms of all starters,

main course, desserts and even appetizers ranging right from vegetarian to non-

vegetarian cuisines. Also, we will be serving all kinds of hard drinks from booze

to whiskey, vodka, etc. so that the audience can sit back and enjoy their top

brand of sport with us.

Types of products on offer:

• Starters

• Main Course

• Desserts

• Appetizers

• Booze & Hard Drinks(Desi n International)

Value meals, Combo offers, Meal for 2, Meal for 3 are the various products lined

up in the pipeline which would be launched after gaining certain prominence in

the existing market.

Suppliers

Raw vegetables and the supporting material required for the day to day

activities will be delivered weekly by our distributor directly from the market. We

also have an agreement with Company to exclusively manufacture our signature

sauces, Glasses and all of our merchandise will be printed and produced by our

partner's office in Mumbai.

All the hard drinks will be sourced on a contract basis for a period of 3

months with the price of the item remaining constant until and unless the price

deviated by over 30% both on the up and downside both.


Management

At the present time Joseph Smith runs all operations for Take Five Sports Bar

and Grill. Other key personnel are the management at each location. Candidates

have already been identified for the first additional area location. There is not

expected to be any shortage of qualified and available staff and management

from local labour pools in each market area.

Organizational Structure

Future organizational structure will include a director of store operations when

store locations exceed five and/or the Florida store opens. This will provide a

supervisory level between the executive level and the store management level. A

full time accountant has already been added. Also, a sales/marketing director

has been added to oversee the expansion effort both to support the growth of

existing business and to execute the franchise expansion strategy. Their salaries

are included in the projections.

Operations of individual stores will be the responsibility of the general manager.

Management Team Gaps

Specific opportunities exist in the store operations supervisory area (not needed

initially) and in franchise sales development (not needed initially).

It is expected that these people can be recruited when needed in the market.

Mumbai is now home to more than 40 franchise company headquarters.

Store managers are readily available when needed. Food service managers are

plentiful.


Financial Management

We want to finance growth mainly through cash flow and equity. We recognize

that this means we will have to grow more slowly than we might like.

The most important factor in our case is collection days, particularly with the bulk

order customers. We can't push our customers hard on collection days, because

they are extremely sensitive and will normally judge us on our terms. Hence they

tend to have a certain degree of financial authority. Therefore we need to

develop a permanent system of receivables financing systems, using a well-

coordinated accounting department. In turn we intend to ensure that our

investors are compatible with our growth plan, management style and vision.

Compatibility in this regard means:

• Fundamental respect for giving our customers value, and for maintaining a

healthy and congenial workplace.

• Respect for realistic forecasts, and conservative cash flow and financial

management.

• Cash flow as first priority, growth second, profits third.

• Willingness to follow the company and contribute valuable input to strategy

and implementation decisions.


Important Assumptions

The financial plan depends on important assumptions, most of which are shown

in the following table. The key underlying assumptions are:

• We assume a slow-growth economy, without major recession.

• We assume access to equity capital and financing sufficient to maintain our

financial plan as shown in the tables.

• We assume the continued popularity of sports in America and the growing

demand for sports theme venues.


Marketing

All Star will create an "identity" oriented marketing strategy with executions

particularly in local media. Radio spots, print ads, and in-store promotions are

designed for transplantation to other markets. A portion of the ad and promo

budget is set aside to develop these programs.

Sales: The sales strategy is to build and open new locations on schedule in order

to increase revenue. Each individual location will continue to build its local

customer base over the first three years of operation. The goal is Rs.3000k to

Rs.5000k in annual sales per unit. A unit will be considered mature once it has

passed the $3500k mark in annual sales.

Market Analysis

With the advent of globalization the amount of the audience majorly youth following the

sporting leagues from the foreign countries has increased immensely over the last 2-3

years. The major reason for the advent has been the quality of the game potrayed by the

leagues which calls for the much seeked attention There are a wide variety of bars,

restaurants, nightclubs that provide the experience of watching these sports on the big

screens. The demand for such screens can be seen to have increased multiple folds which

has offered an opportunity.

0%

5%

10%

15%

20%

25%

30%

2008 2012 2016

% g

row

th o

ver

pri

or

per

iod

Local Market Growth

Potential Customers

New Businesses


Market Segmentation

The market segmentation is divided into the leading target markets. The division reflects

the differences in marketing strategy that will be used to target each different market.

• Middle class, "white collar": These are people seeking to have a drink or some quick

food during lunchtime and sometimes want to show out-of-towners some of the local

highlights. In addition, the pub can expect to see these types of customers dropping in

for some hours after work to unwind. The growth of this market segment as

demonstrated in the Market Analysis table is based on the estimated growth of business

establishments in the city.

• Late nighters and weekend partiers: These are the folks that drop by and stay for

many hours socializing and drinking. Growth of this segment is based on the estimated

population growth of city itself.

• Brew Connoisseur: These customers are a relatively new type to the American scene.

Although there have been beer connoisseur all over since beer was invented, until

recently government regulation was such that the industry was concentrated within a

few national companies. These companies had few product lines and sought to produce

large amounts of beer over very short time periods. This made for an overall low quality

of domestic beers available at reasonable prices. Since deregulation the industry has

rapidly fragmented, allowing small brewers to compete against the larger established

companies on a local and even national level. All this has inspired new connoisseur in

brewing that has revolutionized the industry. With so many new types and brands of

beer available, the customer that wants to try new types is being wooed by all industry

participants.

Connoisseur

25%

Weekend

55%

White Collar

20%

Market Segments


Main Competitors

There are a wide variety of bars, restaurants, nightclubs and other direct and

indirect competitors in the area. Some of the closest in terms of location and

quality include the following:

1. Poptate’s: They offers the largest threat to VIV’s All Star Sports Bar as it has

created an excellent reputation for its microbrews by retaining the services of

Michael Evan, a former brew master for a reputed co. Poptates specializes in

beers with lots of hops, such as Budweiser. Furthermore the establishment

has just had a very favorable article written about its cuisine in The Brunch

magazine. Its separate bar has an established clientele that attracts the

young college crowd.

2. United Sports Bar: This establishment is located only one block from

McKnight's Pub. It attracts a niche market of sports fans especially as it has

widescreen TV's and hosts parties during games. During other times it

attracts some of the customers that McKnight's is targeting such as the late

night crowd.

3. British Brewing Company (BBC): BBC is a MNC brewery more oriented

toward production and distribution of its premier lagers and stouts in the

metro region. However, its tasting room has recently been expanded into a

full-time pub and has gotten great reviews. Its location close to the waterfront

draws a large crowd.


Pricing

All menu items are moderately priced. An average customer ticket is between

Rs.600 to Rs.1200 including food and drink. Tickets are considerably larger for

game day visitors. Our average customer spends more than the industry average

for moderately priced establishments. We tend to believe that this is due to our

creating an atmosphere that encourages longer stays and more spending but still

allows adequate table turns due to extended hours of appeal.

Advertising and Promotion

We promote sports, sports, and more sports. The universal appeal of sports and

sports marketing has never been higher. A high growth area such as Mumbai

has an annual influx of new residents from many other parts of the country. This

trend is true in the Sunbelt in general. Many new residents and many existing

ones are fans of teams in other markets. All Star is a place for all. Each patron

can watch his or her game of interest. The enabling technology is the benchmark

for All Star.

Advertising budgets and sports event promotion is an on-going process of

management geared to promote the brand name and keep All Star at the

forefront of sports theme establishments in each local marketing area.

In addition, funds are budgeted to launch franchise sales activity and lead

generation. These funds amount to 20% of projected franchise sales.

Strategy and Implementation

Our strategy is based on serving our niche markets well. The sports enthusiast,

the business entertainer and traveller, the local night crowd, as well as families

dining out all can enjoy the All Star experience.

What begins as a customized version of a standard product, tailored to the needs

of a local clientele, can become a niche product that will fill similar needs in

similar markets across the city.


We are building our infrastructure so that we can replicate the product, the

experience, and the environment across broader geographic lines. Concentration

will be on maintaining quality and establishing a strong identity in each local

market. The identity becomes the source of "critical mass" upon which expansion

efforts are based. Not only does it add marketing muscle but it also becomes the

framework for further expansion using both company owned and franchised store

locations.


SWOT Analysis:

We are in a highly lucrative market in a rapidly growing economy. We foresee our

strengths as the ability to respond quickly to what the market dictates and to provide

quality brew in a growing market. In addition, through aggressive marketing and quality

management we intend to become a well-respected and known entity in our respective

industry. Our key personnel have a wide and thorough knowledge of the local

manufacturing market and expertise, which will go towards penetrating the market.

However we acknowledge our weakness of a medium-sized company without a lot of

experience, and the threat of new competition taking aim at our niche. Below are the

summarized strengths, weaknesses, opportunities and threats.

SWOT

Analysis

Opportunities

(External & Positive)

Threats

(External & Negative)

Strengths

Internal &

Positive)

• Strategic market segmentation and implementation strategies.

• Diversified market segments

• Jointly develop business strategy and long-term plans, having wide experience in product and business know-how.

• An aggressive and focused marketing campaign with clear goals and strategies.

• Established mass-market companies' development of new lines and vertically integrating.

• New marketing strategies and tactics by established products and companies.

• Other start-up companies generated by healthy economic growth nationwide.

• Intolerable price increases by foreign suppliers may occur.

Weakness

(Internal

&

Negative)

• Lack of a reputation in comparison to our competitors.

• The introduction of new organizational practices and personnel.

• A limited financial base compared to the major players in the industry.

• Lack of clear-cut channels of distribution.

• Appreciation for high-quality brew, enjoyment, and refreshment (and integration therein).

• The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious).

• Internet marketing and sales though still in its infancy.


Appendix

Start-Up Expenses

Business Licenses 300000

Incorporation Expenses 10000

Deposits 50000

Bank Account 50000

Rent 100000

Interior Modifications 300000

Equipment/Machinery Required:

Item 1 (Furniture) 300000

Item 2 (Kitchen Equipment’s) 200000

Item 3 (Crockery) 100000

Total Equipment/Machinery 700000

Insurance 100000

Stationery/Business Cards 5000

Brochures 10000

Pre-Opening Advertising 10000

Opening Inventory 100000

Other (list): 50000

Total Startup Expenses 1785000


Cash Flow:

All in Rs. Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Starting cash 0 242000 484000 726000 968000 1090000

Cash In:

Cash Sales Paid 600000 600000 600000 600000 600000 600000

Total Cash In 600000 600000 600000 600000 600000 600000

Cash Out:

Rent 150000 100000 100000 100000 100000 100000

Payroll 198000 198000 198000 198000 198000 198000

Other 10000 10000 10000 10000 10000 10000

Total Cash Out 358000 358000 358000 358000 358000 358000

CHANGE (CASH

FLOW)

242000 484000 726000 968000 1090000 1112000

Payroll Expenses:

Description Qty Compensation/Unit(Rs.) Total(Rs.)

Manager 1 20000 20000

Deputy Manger 1 15000 15000

Supervisor 3 7000 21000

Head Chef 1 12000 12000

Asst. Chef 4 9000 36000

Bartender 5 9000 45000

Table Attendant 5 7000 35000

Watchman 2 3000 6000

Cleaner 2 2000 4000

Helper boy 2 2000 4000

TOTAL 26 N.A. 1,98,000


Balance Sheet

Assets

Current Assets:

Cash: 500000

Petty Cash 100000

Accounts Receivable 200000

Inventory 75000

Short-Term Investment

Prepaid Expense

Long-Term Investment 500000

Fixed Assets:

Land N.A.

Improvements 300000

Equipment 300000

Furniture 100000

Other Assets:

Item 1

Item 2

Liabilities

Current Liabilities:

Accounts Payable 200000

Interest Payable 75000

Taxes Payable:

Federal Income Tax 12000

State Income Tax 25000

Self-Employment Tax 15000

Sales Tax (SBE) 25000

Property Tax 45000

Payroll Accrual

Long-Term Liabilities

NET WORTH/OWNER’S

EQUITY/RETAINED

EARNINGS

TOTAL ASSETS:

TOTAL LIABILITIES:

Milestones

• Finalizing the location – September 2015

• Getting the plan approved – September 2015

• Raising Funds – September 2015

• Start the development of site – October 2015

• Make the venture open & functional to all - November 2015


Break-Even Analysis

A break-even analysis can tell you what sales volume you are going

to need in order to generate a profit. It can also be used as a guide in

setting prices.

There are three basic ways to increase the profits of your business:

generate more sales, raise prices, and/or lower costs. All can impact your

business: if you raise prices, you may no longer be competitive; if you

generate more sales, you may need added personnel to service those sales

which would increase your costs. Lowering the fixed costs your business

must pay each month will have a greater impact on the profit margin than

changing variable costs.

Fixed costs: Rent, insurance, salaries, etc.

Variable costs: The cost at which you buy products, supplies, etc.

Contribution Margin: This is the selling price minus the variable costs. It

measures the dollars available to pay the fixed costs and make a profit.

Contribution Margin Ratio: This is the amount of total sales minus the

variable costs, divided by the total sales. It measures the percentage of

each sales dollar to pay fixed costs and make a profit.

Break-even Point: This is the amount when the total sales equals the total

expenses. It represents the minimum sales dollar you need to reach before

you make a profit.

Break-even Point in Units: For applicable businesses, this is the total of

fixes costs divided by the unit selling price minus the variable costs per unit.

It tells you how many units you need to sell before you make a profit.

Break-even Point in Dollars: This is the total amount of fixed costs divided

by the contribution margin ratio. It is a method of calculating the minimum

sales dollar to reach before you make a profit.

Note: If the sales dollars are below the break-even point, your business is losing

money.


₹ 0.00

₹ 1,00,000.00

₹ 2,00,000.00

₹ 3,00,000.00

₹ 4,00,000.00

₹ 5,00,000.00

₹ 6,00,000.00

₹ 7,00,000.00

0 200 400 600 800 1000 1200

Units

Break Even Analysis

Sales Fixed cost Total Cost BEU approx.= 444

Break Even

X Y Label

444 ₹ 2,66,400.00 BEU approx.= 444

a business plan on viv's all star sports bar

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