proletariat brewing company

8/16/2019 Proletariat Brewing Company

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CONFIDENTIAL

Proletariat Brewing

CompanyWe the People, bringing life, liberty, and the pursuit of hoppiness to the

Proletariat

Business PlanPrepared July 2012


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Table of Contents

Executive Summary .....................................................................................................................1

Who We Are..........................................................................................................................1

What We Sell ........................................................................................................................1

Who We Sell To ...................................................................................................................1

Financial Summary .............................................................................................................2

Company........................................................................................................................................3

Company Overview ............................................................................................................3

Management Team..............................................................................................................3

Products and Services .................................................................................................................5

Products and Services .........................................................................................................5

Competitors ..........................................................................................................................5

Target Market ...............................................................................................................................7

Market Overview.................................................................................................................7

Market Needs .......................................................................................................................8


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Table of Contents

Budget..................................................................................................................................17

Cash Flow Assumptions...................................................................................................19

Loans and Investments.....................................................................................................20

Financial Statements .................................................................................................................21

Projected Profit and Loss Statement..............................................................................21

Balance Sheet......................................................................................................................23

Cash Flow Statement ........................................................................................................24

Appendix .....................................................................................................................................27

Monthly Financial Details ...............................................................................................27


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Proletariat Brewing Company

Executive Summary

Who We Are

Proletariat Brewing Company is an emerging brewpub concept that will create a higher

quality pub food, as well as a brewpub that sell great beer that pairs well with food.

The company will use mostly local vendors allowing it's guests to have a much fresherproduct than any big box restaurant,

What We Sell

Proletarait Brewing Company will be selling high end craft beers moderately priced

and paired with some elevated pub food as well as a higher end menu for the guestswho want something more. Proletariat Brewing Company will also sell it's beers off

premise as well.

Who We Sell To

Proletariat Brewing Company's target market will be the craft beer drinker, as well asthe citizens of Coatesville Area. The company will get the message out through

facebook, twitter, local newspapers, as well as word of mouth created by the founders


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Financial SummaryProletariat Brewing Company is using 1% of the target audience for sales forecasting.

The company has been conservative with an average guest will spend between $15 and

$20. The company has also used higher costs for it's products to be created resulted in a

higher food and beverage cost. Labor costs are also higher and will be controlled by

effectively Overall Proletariat Brewing Company wanted to produce a worst case

scenario and have a realistic approach for a startup company. Proletariat BrewingCompany has already been marketing it's products before pushing to open a

brewpub. The company has had individuals looking for the brewpub due to media

coverage in multiple magazines, internet(through search engines, facebook, and

twitter). The company will be profitable within six months, and will be able to pay the

loan off early, most likely by the third year.


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Company

Company Overview

Proletariat Brewing Company is a new brewpub venture started by Rick Miller, Dan

Garber, and Kevin Brooks. The three of them realized that there is a need for a

brewpub that has great beer as well as great food to be paired with it. Many brewpubshave great beer, but their food is subpar. Rick has been in the restaurant business

managing multiple restaurants over the years. Dan has been brewing beer for a little

over two years and loves to bring to the market something unique and refreshing with

each batch he brews. Kevin is a young chef who was classically trained at Le Cordon

Bleu in San Francisco, Ca.. He has been working in kitchens since he was 14 years old.

Proletariat Brewing Company has primarily been doing test batches out of Dan and

Rick's homes to get unbiased feedback from beer lovers across the country. Rick

entered one of his beer in Preston and Steve's 1st annual homebrew competition last

year, and placed 5th out of 375 beers. Pretty good since it was the first attempt for this

particular style. Proletariat Brewing Company is a C corporation, with a small group of

investors beyond Dan, Kevin and Rick

Management Team


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Hispanic Cross Cultural Communications, which is essential in the restaurant industry

in the area of Chester County, Pa due to the high latino population

Kevin Brooks

Kevin Brooks - Executive Chef

Kevin has been cooking since he was 14 years old. He started his culinary career ina "hole in the wall" seafood kitchen called the Bay Gourmet as a dishwalker and quickly

became the nighttime cook/supervisor. After working at Bay Gourmet fro five years

and learning alll the basics of a restaurant, from knife cuts to butchery and filleting of

fish, to handling a cash register and money, he decided to train professionally. He

attended Calfornia Culinary Academy's Le Cordon Bleu program and graduated with

an Associate's Degree. While in school he worked as an on-call cook, and a full time

employee for many organizations, ranging from food prep at a corporate establishment

such as Sodexho to working with the west coaasts most reconizable fine dining caterer,

Paula Le Duc. After graduating he returned to the east coast to further his knowledge

and love of the art of cooking. He worked for Victory Brewing Company for two years

where in less than three months he was heading up the kitchen at Victory Brewing

Company. While he was there he won the Golden Meat Grinder, an award given to the

winner of Victory's Cooks Showdown, similiar to the show "Chopped". He wasresponsible for training, doing purchase orders and daily additions while there. He left

Victory Brewing Company to Ruffini's to become a kitchen manager, and to give

himself the challenge of saving a failing business


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Products and Services

Products and Services

Proletariat Brewing Company will set itself apart from other local breweries and

brewpubs by using local suppliers for much of their menu. Many of the brewpubs use

frozen food products for most of their menus. This not only makes for mediocre food, but also hurts local farmers who have fresh products. Proletariat Brewing

Company will also offer little things like an "Amuse Bouche" to our guests before their

meal begins, getting them excited for their dinners. When a new beer is launched we

will pair the "Amuse Bouche" with the new beer for our guests to try something new.

Proletariat Brewing Company will also go beyond the normal pub food and create

memorable dishes that will go far beyond the norm and make people want to come

back. The beers that will be on tap will be more than the usual IPAS and lagers, but

have unique ancient style beers from around the world, as well as having unique food

style beers like Caramel Porter and Orange Cream Ale. The service staff in the

restaurant will set themselves apart from other restaurants by having thorough

knowledge of craft beer and food.

Competitors

There are three brewpubs within twenty minutes of our location in the Coatesville.


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- Iron Hill Brewery. Iron Hill has been very consistent with their food quality. Iron

Hill has had steady growth, their beers are decent but nothing that is absolutelyamazing. Iron Hill does have a restaurant liqour license allowing it to be able to serve

more than beer and Pa. wines. Their restaurant is near the courhouse in West Chester

and near West Chester University. This brewpub does have great exposure and has

multiple locations.

- McKenzie's Brewhouse. McKenzie's Brewhouse is another brewpub in the city of

Frazer, Pa. The food is completely uninspiring, and the beers that are produced there

are not produced from malted grain, but extract instead. They do have a liqour license

as well, but do not actually have a manufacturer's license for their so called brewery.

The restaurants with liqour licenses near Proletariat include:

- The Flying Machine Cafe.They have unique area for their restaurant because theyare on location for the Chester County Airport. The airport is a small location with

only private planes coming and going through there. There is one craft beer on tap, and

they do have a liqour license, but they have the same quality of food as any other chain

restaurant. The restaurant's menu has not changed in over 15 years and is completely

outdated.

- Harry's Hotdogs. Harry's is the neighborhood hangout. The usual suspects for food,nothing to extravagent. They do have a craft beer on tap, but nothing to out of the

ordinary. They do have a small takeout section for six packs as well as having

h t k d h t d f t k t


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Target Market

Market Overview

Proletariat Brewing Company will focus on a couple of different segments. The main

clintele will be those who love fresh craft beer and for those looking for a great quality

meal. The craft beer market is on the rise. It continues to grow at a pace of about 15%each year. American's beer tastes are changing, and with that change is a growing craft

beer market. The big brewer's(Anheuser-Busch, Miller and Coors) have tried to mimic

the craft beer market but with little penetration into the craft beer world. Their beers

are mass produced and lack any depth of character. Most craft beer drinkers in the U.S.

are men between the ages of 25 - 45. However, there is a growing number of women in

the same age group that are now drinking craft beer. This same group of people are

also pushing for better food choices in restaurants. These consumers are pushing for

fresh local products. This group has a greater tendency to make the choice of going to

dinner at least once a week, and will also have drinks beyond just the weekend. In this

age bracket of men and women there are approximately over 61,000 within 15 minutes

of our location. If we would take just 1% of the market share we would have 610 guests

that would come through our doors. Victory Brewing Company, one of our

competitors was able to to do 1600 covers in a single weekend dinner, which isapproximately 2.6% of that market in one dinner. Victory Brewing Company is not

easily found either. There is no signage from any roadway, so there is little upfront

exposure There is still people living in Downingtown where Victory is located that do


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brewhouse will be in comparison to the rest of the dining room. Everything will be

open for people to see how the food is being prepared, as well as how there beer is being brewed. We want our brewpub to be open, just like our business practices.

Market Needs

Our target customer is the craft beer drinker. People are looking for a better beer, but

will be looking for a competititve price. Restaurants typically sell craft beers between

$5 and $10 for a craft beer. We will undercut those prices by making our beer on site,

and give a fresher quality than they could find somewhere else. We can sell at $4 a

glass and still make an incredible profit. Our closest competition is Victory Brewing

Company, which is 15 minutes away, and there is usually a three hour wait for a table

on the weekends. Iron Hill also sees the same which is 20 minutes away from our

location. We can take a share of this market and give people great service and greatfood to keep them coming back.


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Strategy and ImplementationMarketing Plan

Overview

Proletariat Brewing Company will differentiate itself by offering it's guests a better

value than Victory Brewing Company, Iron Hill, and McKenzie's brewhouse. Proletariat

are going to offer fresh and local products at the same price range as our competitors.

The difference will be a higher quality item for the same price. We have already started

an audience through facebook as well as twitter. Proletariat Brewing Company have

over 100 fans on facebook and that number continues to grow. Proletariat Brewing

Company will be doing charity events with different local orginizations, such as theSons of Ben, who are affiliated with the Philadelphia Union as well as giving out

samples to people to grow those numbers. Proletariat already have the web presence,

which people are continuing to message and call to find when we will be opening our

doors. We have had contacts from all over the world about our business. Proletariat

are part of the Brewer's Association, which has been fundamental at helping us get the

word out. Proletariat will also work with an email marketing system to remind people

of special events that we will be having to help consistent flow of the restaurant.

We will also use the local newspapers to let people know about our new brewery, as


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Positioning

We are the Proletariat, the footsoldiers of the new American Revolution, overthrowing

the ideals of corporate greed through transparent business practices, equality among all

employees and genuine concern for our communities.

Pricing

Our pricing will be competitive with our competition. We will keep our beer prices

slightly lower than our competition. Our beer will be fresh and will be the main reason

why people will come to Proletariat Brewing Company. Since there is such a high

markup on draft beer, we will still make money on a product that is priced lower than

our competition. It typically costs us about 20 cents to make a draft beer, while we will

sell it at $4. The goal is to create a valuable product. We will also give out special

promotions to our loyal guests with one day promotions by giving a 10% discount toour fans., which would only cost 2% of the product cost, but will help drive sales, and

reducing your labor costs.

Promotion

We have been promoting Proletariat Brewing Company through several outlets such asfacebook, twitter, local magazines, as well as doing private tastings, and also crafting

craft beer for individuals. We have also been giving samples to guests and employess


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have a kegerator at home, but would like one our nonflagship beers that we will not

have for sale in kegs initially. We will also be selling beers by draft to our guests of ourrestaurant.

2. We will also be selling our kegs to local craft beer restaurants such as Station

Taproom, The Whip, Ron's Original Grille, Appetite's on Main, The Drafting Room and

more. We will also sell to non craft beer restuarants as well, since many will carry a

Victory Brewing Company beer, because people will be looking for it, as we grow our

business. We will start with only 1/6 of a barrel kegs for outside sales, to create smaller

batches, and have freshness guararteed with our beers.

3. We will also sell kegs to local beer distributors to help expand our market

share. This will be the smallest source of our revenue. As our beer gains a hold of the

market share, people will look for it more within the beer distributors. These

distributors will actually carry our product for the local restaurants due to the three tiersystem in Pa. Within 1-3 years of opening we will expand to a bottling line and develop

packaging as well as creating another form of sales for those do not want to buy kegs of

beer.

Milestones

Milestones

May 2012 Have the financing available for acquiring the property as well as purchase


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Financial PlanSales Forecast

Sales Forecast Table

Year 1 Year 2 Year 3

Unit Sales

Food Sales 32,879 34,194 35,561

Inside Beverage Sales 52,883 56,585 60,546

Outside Beverage Sales Distributorand Restaurant

88 97 106

Outside Beverage Sales Retail Store 36 38 40

Price Per Unit

Food Sales $12.00 $12.00 $12.00

Inside Beverage Sales $4.00 $4.00 $4.00


$40.00 $40.00 $40.00

Outside Beverage Sales Retail Store $60.00 $60.00 $60.00

Sales

Food Sales $394,548 $410,328 $426,732


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Direct Cost

Food Sales $98,637 $102,582 $106,683

Inside Beverage Sales $21,153 $22,634 $24,218


$1,162 $1,280 $1,399

Outside Beverage Sales Retail Store $475 $502 $528

Total Direct Cost $121,427 $126,998 $132,828

Gross Margin $490,333 $515,830 $542,728

Gross Margin % 80% 80% 80%

Sales by Month


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we will most likely have people ordering from the pub menu. I was counting on a

modest 2% increase during the winter and spring months, with a small dropoff forsummer, and then a 3% increase over summer for the fall. I also did a 4% increase for

years two and three. This is smaller than the industry standard.

The second category is inside beer sales, which the bulk of our profits will be from.

We know that most people will have at least two beers in our establishment, but settled

for 1.5 beers a person. We know that once people try our product we will get them to

come back for three reasons. They can walk to our location, the beer is cheaper than our

competitors, and our beer is better than our competition. Our costs for beer are higher

than normal, due the manufacturing of smaller batches. The increase is higher in this

category, however we are lower than the craft beer industry which is growing in double

digits. The average increase is 7% for the months of the first year, and 4% higher for the

next two.

The third and fourth categories are outside beer sales. We will be selling kegs and

growlers for our customers for the first two years, with an expansion into bottling into

the third year. The numbers for distributors and restaurants represents the bulk of our

outside sales. We have already done the leg work for getting our name out there with

local craft beer pubs within our area. We will be having a 1/6 barrel on in some of these

places at all times. This is just over two cases of beer, which can last a shift in some

establishments. We wanted to sell to the restaurants and distibutors cheaper so thatthey may make a reasonable profit, and it will help drive people outside of their local

tavern into the city to have a beer straight from the brewery. Our numbers for our own


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Personnel Plan

Personnel Table


Kevin Brooks $24,000 $24,720 $25,464

Dan Garber $24,000 $24,720 $25,464

Sous Chef $21,120 $21,540 $21,972

Line Cook 1 $19,680 $19,872 $20,076

Bartender 1 $9,600 $9,648 $9,696

Bartender 2 $9,600 $9,648 $9,696

Server 1 $5,400 $5,412 $5,424

Server 2 $5,400 $5,412 $5,424Server 3 $4,320 $4,332 $4,344

Server 4 $4,320 $4,332 $4,344

Busser 1 $7,680 $7,800 $7,908

Busser 2 $3,840 $3,900 $3,960

Dish 1 $17,280 $17,628 $17,976

Dish 2 $6,912 $7,056 $7,188

Host 1 $16,320 $16,644 $16,980

Host 2 $6,144 $6,264 $6,396


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- Rick Miller will oversee the entire operation and be a second bartender for every

night except Friday and Saturdays, where the second bartender will be in place

- there will be a maximum of four server on a night business based on volume. We

will also have a hostess, busser and dishwasher every evening shift.

In the first year we will be very conservative with our sales, and keep labor costs low,

by having our three managerial partners(Dan, Rick, Kevin) performing most of the

duties


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Budget

Budget Table


Expenses

Salary $185,616 $188,928 $192,312

Employee Related Expenses $27,852 $28,344 $28,848

Marketing & Promotion $3,600 $0 $0

Rent $24,000 $24,000 $24,000

Utilities $9,600 $9,600 $9,600

Office Supplies $0 $0 $0

Insurance $12,000 $12,000 $12,000

Total Expenses $262,668 $262,872 $266,760

Major Purchases

french fry cutter $42 $0 $0

Kitchen Pans $1,031 $0 $0

other kitchen equipment $4,488 $0 $0

slicer $300 $0 $0

84" refrigerated Chef base $4,400 $0 $0

25 cu ft reach in refrigerator $4 200 $0 $0


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walk in cooler $8,000 $0 $0

POS system $15,000 $0 $0

Mash Tun 1bbl $1,000 $0 $0

7 - Fermenters 1 bbl $7,000 $0 $0

Grain Mill $200 $0 $0

building supplies $75,000 $0 $0

Total Major Purchases $158,111 $0 $0

Expenses by Month


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Startup Costs

The main startup costs for the brewpub is the kitchen and brewing equipment. These

will be a one time purchase, and we will try to find used equipment at a fraction of the

cost rather than buying everything brand new. All of the costs that are listed are prices

for new equipment. Purchasing the building would be the best option, but we could

use the capital on building the business out and renting for the first couple of years and

have a lease to purchase option.

Cash Flow Assumptions

Cash Flow Assumptions

Cash Inflow

% of Sales on Credit 10%

Avg Collection Period (Days) 15

Cash Outflow

% of Purchases on Credit 10%

Avg Payment Delay (Days) 15

Inventory

M h K H d 2


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About the Cash Flow Assumptions

Loans and Investments

Loans and Investments Table

Year 1 Year 2 Year 3Private LoanLoan at 10% interest for 60 mos.

$250,000 $0 $0

Total Amount Received $250,000 $0 $0

Sources of Funds

Investors

Proletariat Brewing Company has a small amount of investors that helped with the

early brews and have also helped in the construction of equipment. At this point and

time they have less than 5% of equity in Proletariat Brewing Company.

Private Loans

P l i B i C ill b b i i b i l i l fi


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Financial StatementsProjected Profit and Loss Statement

Projected Profit and Loss Statement


Revenue $611,760 $642,828 $675,556

Direct Cost $121,427 $126,998 $132,828

Gross Margin $490,333 $515,830 $542,728


Expenses

Salary $185,616 $188,928 $192,312



Rent $24,000 $24,000 $24,000

Utilities $9,600 $9,600 $9,600


Insurance $12,000 $12,000 $12,000


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Gross Margin by Year

Net Profit (or Loss) by Year


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next two years. We underscored the amount of growth as about 3% over the first year,

even though the industry is recieving double digit growth overall.

Balance Sheet

Balance Sheet

As of Period's End Year 1 Year 2 Year 3

Cash $202,989 $350,952 $517,047

Accounts Receivable $2,764 $2,683 $2,818

Inventory $21,158 $22,106 $22,160

Total Current Assets $226,911 $375,741 $542,025

Long-Term Assets $158,111 $158,111 $158,111

Accumulated Depreciation ($31,622) ($63,244) ($94,866)

Total Long-Term Assets $126,489 $94,867 $63,245

Total Assets $353,400 $470,608 $605,270

Accounts Payable $718 $742 $743

Sales Taxes Payable $0 $0 $0

Short-Term Debt $0 $0 $0

Total Current Liabilities $718 $742 $743


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About the Balance Sheet

As the balance sheet shows, we do not expect any trouble meeting our debt obligations.

As long as we can achieve our specific objectives, we should not need to take on

additional debt beyond the orginal $250,000 loan.

Cash Flow Statement

Cash Flow Statement


Operations

Net Profit $139,716 $161,631 $183,763

Depreciation and Amortization $31,622 $31,622 $31,622

Decrease in Accounts Receivable ($2,764) $81 ($135)

Decrease in Inventory ($21,158) ($948) ($54)

Increase in Accounts Payable $718 $24 $1

Increase in Sales Taxes Payable $0 $0 $0

Net Cash Flow from Operations $148,134 $192,410 $215,197

Investing & Financing

Assets Purchased ($158,111) $0 $0


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Cash Flow by Month

Cash Flow by Year


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year, while the cash balance continues to grow, and making it possbile for expansion

into a larger market area for the beer.


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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with theunderstanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

Appendix

Monthly Financial Details

Sales Forecast Table (With Monthly Detail)

Year 1 Y1 M1 Y1 M2 Y1 M3 Y1 M4 Y1 M5 Y1 M6 Y1 M7 Y1 M8 Y1 M9 Y1 M10 Y1 M11 Y1 M12

Unit Sales

Food Sales 2,524 2,574 2,625 2,677 2,731 2,786 2,841 2,813 2,785 2,757 2,840 2,926

InsideBeverage Sales

3,786 3,937 4,095 4,258 4,429 4,606 4,790 4,650 4,515 4,383 4,602 4,832

OutsideBeverage SalesDistributor andRestaurant

4 4 5 5 6 7 7 8 9 10 11 12

OutsideBeverage SalesRetail Store

1 1 1 2 2 3 3 3 4 5 5 6

Price Per Unit

Food Sales $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00


$4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00

OutsideBeverage Sales

Distributor andRestaurant

$40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00


$60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00 $60.00

Sales

Food Sales $30,288 $30,888 $31,500 $32,124 $32,772 $33,432 $34,092 $33,756 $33,420 $33,084 $34,080 $35,112


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$15,144 $15,748 $16,380 $17,032 $17,716 $18,424 $19,160 $18,600 $18,060 $17,532 $18,408 $19,328


$160 $160 $200 $200 $240 $280 $280 $320 $360 $400 $440 $480


$60 $60 $60 $120 $120 $180 $180 $180 $240 $300 $300 $360

Total Sales $45,652 $46,856 $48,140 $49,476 $50,848 $52,316 $53,712 $52,856 $52,080 $51,316 $53,228 $55,280

Direct Cost PerUnit

Food Sales $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00


$0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40


$13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20


$13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20 $13.20

Direct Cost

Food Sales $7,572 $7,722 $7,875 $8,031 $8,193 $8,358 $8,523 $8,439 $8,355 $8,271 $8,520 $8,778


$1,514 $1,575 $1,638 $1,703 $1,772 $1,842 $1,916 $1,860 $1,806 $1,753 $1,841 $1,933


$53 $53 $66 $66 $79 $92 $92 $106 $119 $132 $145 $159


$13 $13 $13 $27 $26 $40 $40 $40 $52 $66 $66 $79

Total DirectCost

$9,152 $9,363 $9,592 $9,827 $10,070 $10,332 $10,571 $10,445 $10,332 $10,222 $10,572 $10,949

Gross Margin $36,500 $37,493 $38,548 $39,649 $40,778 $41,984 $43,141 $42,411 $41,748 $41,094 $42,656 $44,331

Gross Margin % 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%


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29



Unit Sales

Food Sales 32,879 34,194 35,561

Inside Beverage Sales 52,883 56,585 60,546

Outside Beverage Sales Distributor and Restaurant 88 97 106

Outside Beverage Sales Retail Store 36 38 40

Price Per Unit

Food Sales $12.00 $12.00 $12.00


Outside Beverage Sales Distributor and Restaurant $40.00 $40.00 $40.00


Sales

Food Sales $394,548 $410,328 $426,732


Outside Beverage Sales Distributor and Restaurant $3,520 $3,880 $4,240

Outside Beverage Sales Retail Store $2,160 $2,280 $2,400

Total Sales $611,760 $642,828 $675,556

Direct Cost Per Unit

Food Sales $3.00 $3.00 $3.00


Outside Beverage Sales Distributor and Restaurant $13.20 $13.20 $13.20


Direct Cost

Food Sales $98,637 $102,582 $106,683


Outside Beverage Sales Distributor and Restaurant $1,162 $1,280 $1,399

Outside Beverage Sales Retail Store $475 $502 $528


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30


Total Direct Cost $121,427 $126,998 $132,828

Gross Margin $490,333 $515,830 $542,728


Personnel Table (With Monthly Detail)


Kevin Brooks $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Dan Garber $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Sous Chef $1,760 $1,760 $1,760 $1,760 $1,760 $1,760 $1,760 $1,760 $1,760 $1,760 $1,760 $1,760

Line Cook 1 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640 $1,640

Bartender 1 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Bartender 2 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Server 1 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450

Server 2 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450

Server 3 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360

Server 4 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360

Busser 1 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640

Busser 2 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320 $320

Dish 1 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440 $1,440

Dish 2 $576 $576 $576 $576 $576 $576 $576 $576 $576 $576 $576 $576

Host 1 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360 $1,360

Host 2 $512 $512 $512 $512 $512 $512 $512 $512 $512 $512 $512 $512

Total $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468


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Kevin Brooks $24,000 $24,720 $25,464

Dan Garber $24,000 $24,720 $25,464

Sous Chef $21,120 $21,540 $21,972

Line Cook 1 $19,680 $19,872 $20,076

Bartender 1 $9,600 $9,648 $9,696

Bartender 2 $9,600 $9,648 $9,696

Server 1 $5,400 $5,412 $5,424

Server 2 $5,400 $5,412 $5,424

Server 3 $4,320 $4,332 $4,344

Server 4 $4,320 $4,332 $4,344

Busser 1 $7,680 $7,800 $7,908

Busser 2 $3,840 $3,900 $3,960

Dish 1 $17,280 $17,628 $17,976

Dish 2 $6,912 $7,056 $7,188

Host 1 $16,320 $16,644 $16,980

Host 2 $6,144 $6,264 $6,396

Total $185,616 $188,928 $192,312


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Budget Table (With Monthly Detail)


ExpensesSalary $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468

EmployeeRelatedExpenses

$2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321

Marketing &Promotion

$3,600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Office Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Total Expenses $25,189 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589

MajorPurchases

french frycutter

$42 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Kitchen Pans $1,031 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

other kitchenequipment

$4,488 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

slicer $300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

84"refrigeratedChef base

$4,400 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

25 cu. ft.reach inrefrigerator

$4,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

10 burner gasrange w/ 2 261/2" ovens

$2,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

charbroiler $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

deep fryer $600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


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Hotwell $300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

gas flattop $750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

convecttionoven

$5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

push throughdishwasher

$20,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

worktables $800 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

refrigeratedprep station 1door

$6,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

reach infreezer

$800 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

walk in cooler $8,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

POS system $15,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Mash Tun 1bbl $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

7 - Fermenters

1 bbl $7,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Grain Mill $200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

buildingsupplies

$75,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total MajorPurchases

$158,111 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


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Expenses

Salary $185,616 $188,928 $192,312



Rent $24,000 $24,000 $24,000

Utilities $9,600 $9,600 $9,600


Insurance $12,000 $12,000 $12,000

Total Expenses $262,668 $262,872 $266,760

Major Purchases

french fry cutter $42 $0 $0

Kitchen Pans $1,031 $0 $0

other kitchen equipment $4,488 $0 $0

slicer $300 $0 $0

84" refrigerated Chef base $4,400 $0 $0

25 cu. ft. reach in refrigerator $4,200 $0 $0

10 burner gas range w/ 2 26 1/2" ovens $2,200 $0 $0

charbroiler $1,000 $0 $0

deep fryer $600 $0 $0

Hotwell $300 $0 $0

gas flattop $750 $0 $0

convecttion oven $5,000 $0 $0

push through dishwasher $20,000 $0 $0

worktables $800 $0 $0

refrigerated prep station 1 door $6,000 $0 $0

reach in freezer $800 $0 $0


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walk in cooler $8,000 $0 $0

POS system $15,000 $0 $0

Mash Tun 1bbl $1,000 $0 $0

7 - Fermenters 1 bbl $7,000 $0 $0

Grain Mill $200 $0 $0

building supplies $75,000 $0 $0

Total Major Purchases $158,111 $0 $0


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Projected Profit and Loss Statement (With Monthly Detail)


Revenue $45,652 $46,856 $48,140 $49,476 $50,848 $52,316 $53,712 $52,856 $52,080 $51,316 $53,228 $55,280

Direct Cost $9,152 $9,363 $9,592 $9,827 $10,070 $10,332 $10,571 $10,445 $10,332 $10,222 $10,572 $10,949

Gross Margin $36,500 $37,493 $38,548 $39,649 $40,778 $41,984 $43,141 $42,411 $41,748 $41,094 $42,656 $44,331

Gross Margin % 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%

Expenses

Salary $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468 $15,468

EmployeeRelatedExpenses

$2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321 $2,321

Marketing &

Promotion

$3,600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Utilities $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Office Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Insurance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Total Expenses $25,189 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589 $21,589

OperatingIncome

$11,311 $15,904 $16,959 $18,060 $19,189 $20,395 $21,552 $20,822 $20,159 $19,505 $21,067 $22,742

Interest Incurred $0 $2,083 $2,056 $2,029 $2,002 $1,974 $1,947 $1,918 $1,890 $1,862 $1,833 $1,804

Depreciation andAmortization

$2,628 $2,628 $2,629 $2,629 $2,634 $2,634 $2,635 $2,635 $2,642 $2,642 $2,643 $2,643

Income Taxes $1,737 $2,239 $2,454 $2,680 $2,911 $3,157 $3,394 $3,254 $3,125 $3,000 $3,319 $3,659

Net Profit $6,946 $8,954 $9,820 $10,722 $11,642 $12,630 $13,576 $13,015 $12,502 $12,001 $13,272 $14,636

Net Profit /Sales

15% 19% 20% 22% 23% 24% 25% 25% 24% 23% 25% 26%


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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the

understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.


Revenue $611,760 $642,828 $675,556

Direct Cost $121,427 $126,998 $132,828

Gross Margin $490,333 $515,830 $542,728


Expenses

Salary $185,616 $188,928 $192,312



Rent $24,000 $24,000 $24,000

Utilities $9,600 $9,600 $9,600


Insurance $12,000 $12,000 $12,000

Total Expenses $262,668 $262,872 $266,760

Operating Income $227,665 $252,958 $275,968

Interest Incurred $21,398 $19,297 $14,642


Income Taxes $34,929 $40,408 $45,941

Net Profit $139,716 $161,631 $183,763

Net Profit / Sales 23% 25% 27%


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Loans and Investments Table (With Monthly Detail)


Private Loan

Loan at 10%interest for 60mos.

$250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total AmountReceived

$250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


Private LoanLoan at 10% interest for 60 mos.

$250,000 $0 $0

Total Amount Received $250,000 $0 $0


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Cash Flow Statement (With Monthly Detail)


Operations

Net Profit $6,946 $8,954 $9,820 $10,722 $11,642 $12,630 $13,576 $13,015 $12,502 $12,001 $13,272 $14,636

DepreciationandAmortization

$2,628 $2,628 $2,629 $2,629 $2,634 $2,634 $2,635 $2,635 $2,642 $2,642 $2,643 $2,643

Decrease inAccountsReceivable

($2,283) ($60) ($64) ($67) ($68) ($74) ($69) $42 $39 $38 ($95) ($103)

Decrease inInventory

($18,955) ($637) ($408) ($402) ($501) ($113) $239 $223 ($240) ($727) ($7) $370

Increase inAccountsPayable

$1,776 ($1,085) $0 $11 $17 ($6) ($6) ($6) $17 $19 ($18) ($1)

Increase in

Sales TaxesPayable

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Cash FlowfromOperations

($9,888) $9,800 $11,977 $12,893 $13,724 $15,071 $16,375 $15,909 $14,960 $13,973 $15,795 $17,545

Investing &Financing

AssetsPurchased

($158,111) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

InvestmentsReceived

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Increase inShort-Term

Debt

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Increase inLong-TermDebt

$250,000 ($3,229) ($3,256) ($3,283) ($3,310) ($3,338) ($3,365) ($3,394) ($3,422) ($3,450) ($3,479) ($3,508)

Net Cash Flowfrom Investing& Financing

$91,889 ($3,229) ($3,256) ($3,283) ($3,310) ($3,338) ($3,365) ($3,394) ($3,422) ($3,450) ($3,479) ($3,508)


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Cash at Beginningof Period

$0 $82,001 $88,572 $97,293 $106,903 $117,317 $129,050 $142,060 $154,575 $166,113 $176,636 $188,952

Net Increase inCash

$82,001 $6,571 $8,721 $9,610 $10,414 $11,733 $13,010 $12,515 $11,538 $10,523 $12,316 $14,037

Cash at End of

Period $82,001 $88,572 $97,293 $106,903 $117,317 $129,050 $142,060 $154,575 $166,113 $176,636 $188,952 $202,989


Operations

Net Profit $139,716 $161,631 $183,763


Decrease in Accounts Receivable ($2,764) $81 ($135)

Decrease in Inventory ($21,158) ($948) ($54)

Increase in Accounts Payable $718 $24 $1

Increase in Sales Taxes Payable $0 $0 $0

Net Cash Flow from Operations $148,134 $192,410 $215,197

Investing & Financing

Assets Purchased ($158,111) $0 $0

Investments Received $0 $0 $0

Increase in Short-Term Debt $0 $0 $0

Increase in Long-Term Debt $212,966 ($44,447) ($49,102)

Net Cash Flow from Investing & Financing $54,855 ($44,447) ($49,102)

Cash at Beginning of Period $0 $202,989 $350,952

Net Increase in Cash $202,989 $147,963 $166,095

Cash at End of Period $202,989 $350,952 $517,047


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Balance Sheet (With Monthly Detail)

As of Period'sEnd

Y1 M1 Y1 M2 Y1 M3 Y1 M4 Y1 M5 Y1 M6 Y1 M7 Y1 M8 Y1 M9 Y1 M10 Y1 M11 Y1 M12

Cash $82,001 $88,572 $97,293 $106,903 $117,317 $129,050 $142,060 $154,575 $166,113 $176,636 $188,952 $202,989

AccountsReceivable

$2,283 $2,343 $2,407 $2,474 $2,542 $2,616 $2,685 $2,643 $2,604 $2,566 $2,661 $2,764

Inventory $18,955 $19,592 $20,000 $20,402 $20,903 $21,016 $20,777 $20,554 $20,794 $21,521 $21,528 $21,158

Total CurrentAssets

$103,239 $110,507 $119,700 $129,779 $140,762 $152,682 $165,522 $177,772 $189,511 $200,723 $213,141 $226,911

Long-Term Assets $158,111 $158,111 $158,111 $158,111 $158,111 $158,111 $158,111 $158,111 $158,111 $158,111 $158,111 $158,111

AccumulatedDepreciation

($2,628) ($5,256) ($7,885) ($10,514) ($13,148) ($15,782) ($18,417) ($21,052) ($23,694) ($26,336) ($28,979) ($31,622)

Total Long-Term Assets

$155,483 $152,855 $150,226 $147,597 $144,963 $142,329 $139,694 $137,059 $134,417 $131,775 $129,132 $126,489

Total Assets $258,722 $263,362 $269,926 $277,376 $285,725 $295,011 $305,216 $314,831 $323,928 $332,498 $342,273 $353,400

Accounts Payable $1,776 $691 $691 $702 $719 $713 $707 $701 $718 $737 $719 $718

Sales TaxesPayable

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Short-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total CurrentLiabilities

$1,776 $691 $691 $702 $719 $713 $707 $701 $718 $737 $719 $718

Long-Term Debt $250,000 $246,771 $243,515 $240,232 $236,922 $233,584 $230,219 $226,825 $223,403 $219,953 $216,474 $212,966

TotalLiabilities

$251,776 $247,462 $244,206 $240,934 $237,641 $234,297 $230,926 $227,526 $224,121 $220,690 $217,193 $213,684

Paid-In Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Retained Earnings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Earnings $6,946 $15,900 $25,720 $36,442 $48,084 $60,714 $74,290 $87,305 $99,807 $111,808 $125,080 $139,716


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Total Owner'sEquity

$6,946 $15,900 $25,720 $36,442 $48,084 $60,714 $74,290 $87,305 $99,807 $111,808 $125,080 $139,716

TotalLiabilities &Equity

$258,722 $263,362 $269,926 $277,376 $285,725 $295,011 $305,216 $314,831 $323,928 $332,498 $342,273 $353,400


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As of Period's End Year 1 Year 2 Year 3

Cash $202,989 $350,952 $517,047

Accounts Receivable $2,764 $2,683 $2,818

Inventory $21,158 $22,106 $22,160

Total Current Assets $226,911 $375,741 $542,025

Long-Term Assets $158,111 $158,111 $158,111

Accumulated Depreciation ($31,622) ($63,244) ($94,866)

Total Long-Term Assets $126,489 $94,867 $63,245

Total Assets $353,400 $470,608 $605,270

Accounts Payable $718 $742 $743

Sales Taxes Payable $0 $0 $0

Short-Term Debt $0 $0 $0

Total Current Liabilities $718 $742 $743

Long-Term Debt $212,966 $168,519 $119,417

Total Liabilities $213,684 $169,261 $120,160

Paid-In Capital $0 $0 $0

Retained Earnings $0 $139,716 $301,347

Earnings $139,716 $161,631 $183,763

Total Owner's Equity $139,716 $301,347 $485,110

Total Liabilities & Equity $353,400 $470,608 $605,270

proletariat brewing company

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