mccormick's irish pub 316 north centre st....

McCormick's Irish Pub

316 North Centre St.

Pottsville, PA 17901

(570)622-5607

McCormicksIrishPub.com

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This is a business plan. It does not imply an offering of securities.

Table of Contents

Page 1

1.0 Executive Summary ................................................................... Error! Bookmark not defined.

Chart: Highlights .......................................................................................................................... 3

1.1 Company Summary ................................................................................................................. 3

2.0 Products and Services ................................................................................................................ 3

3.0 Market Analysis Summary ........................................................................................................ 4

4.0 Strategy and Implementation Summary ............................................................................ 4

4.1 Marketing Strategy .................................................................................................................. 5

4.1.1 Competitive Edge ............................................................................................................. 5

4.2 Sales Strategy ........................................................................................................................... 5

4.3 Milestones.................................................................................................................................... 5

Table: Milestones ......................................................................................................................... 5

Chart: Milestones ......................................................................................................................... 6

5.0 Management Summary .............................................................................................................. 6

6.0 Financial Plan ................................................................................................................................. 9

Table: Financials ......................................................................................................................... 10

Chart: Profit Monthly ................................................................................................................ 11

Chart: Profit Yearly .................................................................................................................... 11

Chart: Sales Monthly ................................................................................................................ 12

Chart: Sales by Year ................................................................................................................. 12

6.1 Projected Cash Flow .............................................................................................................. 12

Chart: Cash .................................................................................................................................. 13

Table: Financials ................................................................................................................................... 1

Table of Contents

Page 1


Page 1

1. Executive Summary


McCormick's Irish Pub is a Sports Bar/Restaurant that is located in the heart of downtown

Pottsville, Pennsylvania. McCormick's Irish Pub

is fashioned after the local pubs in Ireland. McCormick's Irish Pub will offer traditional Irish

beverages, both of the alcoholic and non-alcoholic variety, live bands playing traditional Irish

music and traditional Irish food with an American twist. It is a place that people will gladly bring

their families, work colleges for business, or just to meet friends and watch their favorite

sport. McCormick's Irish Pub offers a breakfast, lunch, and dinner menu with reasonable

prices. All menu items are available for dine-in and take-out with delivery offered as well as

on & off site catering.

McCormick's Irish Pub will gross in excess of $1 million in sales in its first year of operation.

First year operations will produce a net profit of $700,631. This will be generated from an investment of $250,000 in initial capital.

McCormick's Irish Pub will focus on three markets:

The Family- We will emphasize that we are a kid friendly restaurant. We will offer our younger

clientele free food on Wednesday's and a free balloon during any visit as well as coloring menu

& crayons to help keep children entertained. There will be seating for families in a separate

section away from the bar area.

The Local Business People- We offer express lunch for our business clientele with the option

to "call in" orders before they arrive to ensure speedy lunch service. We have a conference

room for business lunches or dinners of up to 50 people. With a projector and computer set up

for presentations and free WI-FI.

The Everyday Sports Enthusiast- Our bar area will be the location of our big screen

televisions. Each table at the bar area will have a sound box that will allow the patron to select

which of the 10 sporting events they would like to watch. We encourage our bar patrons to

support their favorite teams by wearing a piece of clothing that represents their team.

If that particular team is on one of our big screens that day the customer’s first beer is on the

house.

1.1 Objectives

McCormick's Irish Pub has three objectives

1. To establish clientele and sales to continuously build the business.

2. Gross Margin of 45% or more.

3. Net After-Tax Profit above 15% of Sales.


Page 2

1.2 Key to Success

There are four keys to success in this business. The first three can be found in any restaurant

business. The fourth key defines one's own business.

1. The location- Being located in the heart of downtown Pottsville is the first key. Visibility

in busy business area.

2. The best products- Quality products from local and/or organic macrobiotic farmers whenever

possible.

3. The friendliest staff- Our staff know what it means to work as a team and to treat

every guest like family.

4. The finest reputation- All businesses rely on advertising to boost sales. McCormick's Irish Pub

also relies on the standard avenues where this is concerned but, word-of-mouth is our most

reliable source of advertising. Not just for our food, atmosphere, and staff but, for our

commitment to our community and various charities as well.

2. Mission, Vision, and Culture

2.1 Mission Statement

The Mission Statement of McCormick's Irish Pub is to provide the finest quality of food and

beverage to our guests as well as

Giving back to our community and bringing awareness to global social and economic issues.

2.2 Community and Social Mission:

McCormick's feels that it is important to give back on a local and global level. McCormick's

takes part in pub crawls and poker runs for

Local SPCA's and other charities. We also do a yearly donation drive for the local SPCA's, bring

in a donation, and get a free beer. We have an active relay for life team. We have partnered

with Room to Read by doing Beer for Books. Twice a year any patron who brings in a new

child's book will be given a free beer. The books are then picked up by a RTR rep and shipped

to underprivileged children. Lastly we have partnered with Children's Program of Northern

Ireland. This allows children from Northern Ireland to spend their summer with a host family in

the area, so that they may have a summer free of violence.

2.2 Vision

McCormick's Irish Pub strives to provide quality products that are not just tasty but healthy as

well in the most time efficient way.

2.3 Culture


Page 3

We at McCormick's Irish Pub value teamwork, family, and social responsibility. We understand

the concept of "there is no I in team" and, we are committed to providing quality service in a

fun and safe working environment.

Chart: Highlights

1.1 Company Summary

3. Company Summary

McCormick's Irish Pub is a restaurant/sports bar designed to make our clientele feel as if they are relaxing in a true local pub of "The Green Isle". For the discerning guest McCormick's offers a quaint, historic atmosphere with the beverages and delicacies of Ireland with an American twist.

3.1 Company Ownership

McCormick's Irish Pub is a Limited Liability Corporation. The primary share is owned by Michelle McCormick Turner with a 50% investment, Walter and Alice Marie McCormick, and Michael and Kelly McCormick with a 25% investment per couple.

2.0 Products and Services


Page 4

4. Products and Services

McCormick's Irish Pub offers our guests quality food and beverages, specializing in Irish cuisine with an American twist, as well as the typical Irish spirits. McCormick's offers a breakfast, lunch, and dinner menu, fresh made desserts, soft drinks, and spirits while contributing to the local and global conscientiousness.

3.0 Market Analysis Summary

5. Market Analysis Summary

The Family- Since McCormick's is family owned, family is important to us. We focus on the

family because we are firm believers in the old adage "The family that plays together, stays

together." We also believe that families that eat dinner together are more likely to be a happy

and healthy family. By providing healthy menus for our guests we feel pride in taking part in helping to create happy memories and healthy families.

The Local Business Community- Being located in the heart of the business district

McCormick's provides a fast, work friendly, and easily accessed environment for our local business people to enjoy a quiet lunch/dinner, or business meetings.

The Sports Enthusiast- Sports are a big part of many people's lives. That is why we focused on this group by providing a fun and relaxing environment for them to enjoy themselves.

4.0 Strategy and Implementation Summary

6. Strategy and Implementation Summary

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

entertainer and traveler, the local night crowd, as well as families dining out all can enjoy the

experience of McCormick's Irish Pub.


Page 5

Our concentration will be on maintaining quality and establishing a strong identity in our local market.

4.1 Marketing Strategy

6.1 Marketing Strategy

A combination of local media and event marketing will be utilized. Radio is most effective,

followed by local print media. The strategy of live broadcasting and pro sports tie-ins has been

most effective in generating free publicity has been more effective than any advertising that could have been purchased.

4.1.1 Competitive Edge

6.1.1 Competitive Edge

The first part of our competitive edge is our integrity, hard work, and the satisfaction of our

guests. By treating each guest that passes through our door as family and striving to achieve a

100% satisfying experience every time. Our second is the fact that McCormick's is the only

authentic Irish pub in the area makes it unique and a viable competitor against any other bar in

the area.

4.2 Sales Strategy

6.2 Sales Strategy

The sales strategy of McCormick's is to increase revenue yearly.

4.3 Milestones

6.3 Milestones

The milestones table shows our timeline for moving into our new "home", launching our web

site, Promotion and advertising, grand opening, and live entertainment. As well as our first

break even month.

Table: Milestones

Milestones

Milestone Start Date End Date Budget Manager Department Launch Website 5/31/2010 6/6/2010 $1,000 Mike McCormick IT Grand Opening Advertising 6/6/2010 6/13/2010 $300 Kelly McCormick Sales Grand Opening Party 6/13/2010 6/13/2010 $1,000 Tina Stigler Entertainment Live Entertainment 6/13/2010 10/31/2010 $40,000 Tina Stigler Entertainment First Break Even Month 12/1/2010 12/31/2010 $0 Jared Saylor Finance St. Patrick's Day Festival 3/12/2011 3/19/2011 $2,000 Tina Stigler Entertainment 1 Yr ann Party 6/13/2011 7/13/2011 $1,000 Tina Stigler Entertainment Second Break Even Month 12/1/2011 12/31/2011 $0 Jared Saylor Finance St. Patrick's Day Festival 3/11/2012 3/18/2012 $2,000 Tina Stigler Entertainment Third Break Even Month 12/1/2012 12/31/2012 $0 Jared Saylor Department Totals $47,300


Page 6

Chart: Milestones

5.0 Management Summary

7.0 Management Summary

The management team of McCormick's Irish Pub is made up of seven people. Five of which are owners and founders.

Michelle McCormick Turner- General Manager: Overseeing of the smooth running of

restaurant and bar. Inventory and ordering of

all beverages and bar items, shared inventory and ordering of all food items, scheduling of front

of house personnel, as well as approving all other schedules.

Michael McCormick- IT: Overseeing of web site and all technical opportunities of store.

Kelly McCormick- Sales and Marketing: Overseeing of all sales and marketing opportunities

of store.


Page 7

Walter McCormick- Kitchen and Food: Overseeing of all menus and scheduling for cooking staff, as well as overseeing of cooking staff and shared inventory and food ordering.

Alice Marie McCormick- Front of House: Overseeing of all wait staff, reservations, and business parties.

Tina Stigler- Entertainment: Overseeing of all entertainment for the public.

Jared Saylor- Finance: Overseeing of all financial opportunities.

Four of the owners will help in all areas of greeting, seating, waiting on guests, food running, and bar tending.

Front of House Crew:

Servers:

Angelina Dobson, Katherine Bracey, Wendy McFarland, Brooke Williams, Shannon Leary, Jeremy Bass, Jeremy Evans, David Dreiher, Christopher Sammons, Richard Wertman

Job Description: Set-up and breakdown of restaurant areas, greet and seat guests, take food

orders, run food, reset tables

for new guests, vacuum/sweep floor nightly, Bissell floor between guests arrival and

departure, roll silverware, clean shelving units in front of cook window, various running side work during shift.

Bus Personnel:

Brian Borden, Tony Fordham, Jason Segal, John Epps, Derek Brennan, Terry Brennan, Josh Evans, Jimmy Evans


Page 8

Job Description: Clean tables after departure of guests, clean restrooms.

Bartenders:

Jaclyn Adkins, Sue Miggins, Brandi Borden, Casey Wright, Shelby Wilson, Danielle Mafeo, Jamie Brown

Job Description: Set-up and breakdown of bar area, clean bar appliances, restock beverage

area, clean bar shelves once a week, sweep/ mop bar area nightly, greet guests, and serve beverages and/or food.

Back of House Personnel:

Cooks:

Walter McCormick, Kintay Moore, Jesse Evans, Marc Leonard, Josh Simeons, John Liptok, Jim Johnson, Jeremy Harkins, Chuck Renninger

Job Description:

Set-up and breakdown of kitchen, prepare food as ordered, clean grills, fryers, and surrounding

areas, clean shelving units behind cook window, pull food from freezer to walk-in cooler for

defrosting, sweep/mop kitchen floor before and after each shift.

Dish Personnel:

Alternated with bus Personnel.


Page 9

Job Description:

Set-up and breakdown of dishwasher, clean dishwasher after each shift, sort and run dishes

through dishwasher, restock glasses and dishes as needed, sweep/mop dish area before and after each shift.

To-Go/Delivery Personnel:

Nicole Skeen, Christian Crutchfield, Gina Mack, Austin Bolich, Peter Whitman, Jennifer Asbele

Job Description:

Take orders over to-go phone, pack food into to-go bags, deliver to car for curbside service or delivery address.

6.0 Financial Plan

7.0 Financial Plan

The financial picture for McCormick's is promising. The over-all financial plan for growth allows

for use of the significant cash flow generated by operations. McCormick's financial investment in

its employees is labor intensive because we strive for a higher level of talent. This will give us

more of an edge over our competitor’s. We will keep a minimum inventory on hand to keep products fresh and to take advantage of reduced pricing, if and when it may occur.


Page 10

McCormick's believes that the initial investment of $250,000will be enough to carry it through the first year without need for any outside investment, additional equity, or debt investment.

Table: Financials

Financials

FY 2011 FY 2012 FY 2013

Beginning Balance Opening Balance Cash & Checking $250,000 $1,141,631 $1,817,506

Plus Money Received New Investment $250,000 $0 $0 New Loans $0 $0 $0 Sales $1,242,376 $1,245,000 $1,251,379 Other $0 $0 $0 Subtotal Money Received $1,492,376 $1,245,000 $1,251,379

Less Money Spent

Direct Costs Direct Cost of Sales $218,491 $221,000 $224,546 Other Costs of Sales $60,454 $61,325 $62,167

Normal Operating Expenses Payroll and Payroll Taxes, Benefits, Etc. $240,000 $240,000 $240,000 Rent and Utilities $18,000 $18,000 $18,000 Sales and Marketing Expenses $3,600 $3,600 $3,600 Other Operating Expenses $1,200 $1,200 $1,200

Other Outflows Payments of Taxes $1,200 $1,200 $1,200 Debt Payments $7,800 $7,800 $7,800 Purchase of Assets $50,000 $15,000 $15,000 Other $0 $0 $0 Subtotal Money Spent $600,745 $569,125 $573,513

Ending Balance Ending Balance Cash and Checking $1,141,631 $1,817,506 $2,495,372

Profit Before Interest and Taxes Sales $1,242,376 $1,245,000 $1,251,379 Less Cost of Sales ($278,945) ($282,325) ($286,713) Gross Margin $963,431 $962,675 $964,666 Less Operating Expenses ($262,800) ($262,800) ($262,800) Profit Before Interest and Taxes $700,631 $699,875 $701,866

Net Cash Flow $891,631 $675,875 $677,866


Page 11

Chart: Profit Monthly

Chart: Profit Yearly


Page 12

Chart: Sales Monthly

Chart: Sales by Year

6.1 Projected Cash Flow

7.1 Projected Cash Flow


Page 13

As with any business cash flow will have to be carefully monitored. After initial investment and

start-up costs are covered the business will be viable. We have put implementations in place to

monitor this such as, the only employee with a cash drawer will be the bar tender on duty to be

counted by shift manager and bar tender before and after each shift. The wait staff will start

each shift with a broke bank of $20.00 in their pocket. Sales receipts will be printed out at end of shift to be calculated by server and shift manager.

With the initial investment of $250,000 of operating capital McCormick's does not anticipate any

cash flow shortages. December and January will have a heavier drain of cash due to certain accounts payable being due.

Chart: Cash

Appendix

Page 1

Table: Financials

Financials

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Beginning Balance Opening Balance Cash & Checking $0 $250,000 $485,350 $531,200 $582,500 $640,500 $698,939 $759,439 $819,918 $879,534 $939,886 $1,004,435 $1,072,695

Plus Money Received New Investment $0 $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales $70,000 $84,000 $92,500 $101,250 $102,500 $105,550 $108,345 $104,300 $107,567 $115,435 $123,431 $127,498

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Money Received $0 $320,000 $84,000 $92,500 $101,250 $102,500 $105,550 $108,345 $104,300 $107,567 $115,435 $123,431 $127,498

Less Money Spent

Direct Costs Direct Cost of Sales $0 $10,000 $13,000 $15,400 $17,100 $17,840 $18,200 $19,876 $17,100 $19,440 $21,002 $23,421 $26,112 Other Costs of Sales $0 $2,000 $2,500 $3,150 $3,500 $3,571 $4,200 $5,340 $4,934 $5,125 $7,234 $9,100 $9,800

Normal Operating Expenses Payroll and Payroll Taxes, Benefits, Etc. $0 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 Rent and Utilities $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Sales and Marketing Expenses $0 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 Other Operating Expenses $0 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

Other Outflows Payments of Taxes $0 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 Debt Payments $0 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 $650 Purchase of Assets $0 $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Money Spent $0 $84,650 $38,150 $41,200 $43,250 $44,061 $45,050 $47,866 $44,684 $47,215 $50,886 $55,171 $58,562

Ending Balance Ending Balance Cash and Checking $0 $485,350 $531,200 $582,500 $640,500 $698,939 $759,439 $819,918 $879,534 $939,886 $1,004,435 $1,072,695 $1,141,631

Profit Before Interest and Taxes Sales $70,000 $84,000 $92,500 $101,250 $102,500 $105,550 $108,345 $104,300 $107,567 $115,435 $123,431 $127,498

Less Cost of Sales ($12,000) ($15,500) ($18,550) ($20,600) ($21,411) ($22,400) ($25,216) ($22,034) ($24,565) ($28,236) ($32,521) ($35,912)

Gross Margin $58,000 $68,500 $73,950 $80,650 $81,089 $83,150 $83,129 $82,266 $83,002 $87,199 $90,910 $91,586

Less Operating Expenses ($21,900) ($21,900) ($21,900) ($21,900) ($21,900) ($21,900) ($21,900) ($21,900) ($21,900) ($21,900) ($21,900) ($21,900)

Profit Before Interest and Taxes $36,100 $46,600 $52,050 $58,750 $59,189 $61,250 $61,229 $60,366 $61,102 $65,299 $69,010 $69,686

Net Cash Flow $235,350 $45,850 $51,300 $58,000 $58,439 $60,500 $60,479 $59,616 $60,352 $64,549 $68,260 $68,936

Appendix

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mccormick's irish pub 316 north centre st....

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