table of contents - marcthornton.files.wordpress.com€¦ · page | 3 i. executive summary research...

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Table of Contents I. Executive Summary .................................................................................................................................... 3

II. The Background ........................................................................................................................................ 4

II (a). The Tourism Market in Canada ........................................................................................................ 4

II (b). The Craft Beer Market in Canada .................................................................................................... 4

II (c). The Brew-cation Market in Canada ................................................................................................. 4

II (d). Current Whistler Brewing Company Products ................................................................................ 5

II (e). The Unique Experience for Craft Beer Enthusiasts .......................................................................... 5

III. The Product Proposal ............................................................................................................................... 5

III (a). Whistler Brewing Company’s Whistler Brew-cation ...................................................................... 5

III (b). Accommodations ............................................................................................................................ 6

III (c). Onsite Indoor/Outdoor Amenities .................................................................................................. 6

III (d). Offsite Activities and Strategic Partnerships .................................................................................. 7

III (e). Food and Beverage ......................................................................................................................... 8

III (f). Staffing Strategy .............................................................................................................................. 9

III (g). Pricing Strategy ............................................................................................................................... 9

III (h). Whistler Brew-cation’s Proposed Options ..................................................................................... 9

III (i). Marketing and Sales ...................................................................................................................... 10

IV. Revenue and Benefit Analysis – Option 1 .............................................................................................. 11

IV (a). Strategic Benefits – Option 1 ........................................................................................................ 11

IV (b). Revenue Model Methodology – Option 1 .................................................................................... 11

IV (c). Total Revenue Generated – Option 1 ........................................................................................... 11

IV (d). Contribution Margin Analysis – Option 1 ..................................................................................... 12

IV (e). Fixed Cost Analysis – Option 1...................................................................................................... 12

IV (f). Net Income – Option 1 .................................................................................................................. 14

V. Revenue and Benefit Analysis - Option 2 ............................................................................................... 15

V (a). Strategic Benefits - Option 2 ......................................................................................................... 15

V (b). Revenue Model Methodology - Option 2...................................................................................... 15

V (c). Total Revenue Generated - Option 2 ............................................................................................. 16

V (d). Contribution Margin Analysis - Option 2 ....................................................................................... 16

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V (e). Fixed Cost Analysis – Option 2 ....................................................................................................... 17

V (f). Net Income - Option 2 .................................................................................................................... 17

VI. The Recommendation............................................................................................................................ 18

VII. The Next Steps ...................................................................................................................................... 18

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I. Executive Summary

Research shows an increase in both the BC tourism market as well as the BC craft beer market. The

growth of these markets, combined the emergence of a new market phenomenon called brew-cation,

presents new opportunities for the Whistler Brewing Company.

Whistler Brew-cation is a brand-extension for the Whistler Brewing Company that offers a unique short-

term vacation experience for craft beer enthusiasts. It builds on the strength of Whistler Brewing

Company’s brand, and focuses on its passion for great craft beer. Guests learn brewing techniques,

enjoy great food, great entertainment, and of course great drinks. This is all done in the natural beauty

of Whistler and its surrounding areas.

Strategic partnering, broad sales channels, perceived buyer value pricing, and unique product offerings

will contribute to the success of Whistler Brew-cation. The probable-case outcome results in a 42.9%

utilization that generates $518,496.96 in net income for the first year of operation.

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II. The Background

II (a). The Tourism Market in Canada

According to a report done by Supporting Tourism Canada, $73.4 billion in Canadian tourism revenue was generated in 2010, and this accounted for approximately 2 percent of Canada’s GDP. The industry generated 594,500 Canadian direct jobs, or about 9.2 percent of the total employment in Canada during that year. (http://www.tourism.gc.ca/eic/site/034.nsf/eng/h_00003.html) Data has shown an increase in domestic tourism for Canadians with 229.2 million domestic trips made in 2010. These trips accounted $58.5 billion, or 80 percent of total tourism spending in Canada for 2010. This is the sixth consecutive year that spending increased for the domestic share of tourism. (http://www.tourism.gc.ca/eic/site/034.nsf/eng/00182.html) Statistics, drawn from Statistics Canada International Travel Survey, shows that “British Columbia welcomed approximately 3.0 million US overnight visitors in 2010.” These visitors spent approximately $1.5 billion during their stay, and this was a 6.6% increase over the previous year. (http://en-corporate.canada.travel/sites/default/files/pdf/Research/Stats-figures/Tourism-performance/Quarterly%20Travel%20Characteristics/2010_travelcharacteristicsq4-en.pdf)

II (b). The Craft Beer Market in Canada

The craft beer market in Canada has seen exponential growth over the past few years. It has gone from

$56 million in 2007 to $111.5 million in 2011. An increase in consumers’ demand for a more

sophisticated beer has also led to an increase in market share for craft breweries. BC market share for

craft breweries has increased from 6.4 percent in March 2007, to 12.7 percent in March 2011.

(http://www.bcbusinessonline.ca/profiles-and-spotlights/industries/tourism-and-hospitality/boom-

time-for-craft-beer-bc?#featurelist)

II (c). The Brew-cation Market in Canada

The brew-cation market is a new phenomenon that is developing across North America. It’s a

combination of people’s desire to travel with their passion for exceptionally unique craft beers. With

both the BC tourism market and the BC craft beer market on the rise, it can be seen how a joint business

relationship between these two products can be lucrative.

The target audience for Canada’s brew-cation market consists of men (65%) and women (35%) aged 28

to 55 who are of Canadian residence. These men and women have some post-secondary education, and

are married with one child. Average household income for this target is $45-80K. These people are

educated beer drinkers who are passionate about exploring their beer pallets. They are young at heart,

interested in outdoor activities, and want to know more about the beer brewing process. This target is

looking for a weekend in the mountains with good friends and new experiences.

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II (d). Current Whistler Brewing Company Products

While many breweries have come and gone, Whistler Brewing Company is still proudly 100 percent BC

owned and 100 percent BC brewed. Located in Whistler’s Function Junction, Whistler Brewing Company

was established in 1989 as an originator for the craft brewing movement. It has been producing leading

edge craft beers ever since and some of these beers are as follows:

Whiskey Jack Ale - This is a well-rounded beer with subtle bittering. The Whiskey Jack Ale has a

proprietary dark-amber recipe that is dry-hopped with English Kent hops.

Powder Mountain Lager - This North American style lager was voted by Whistler residents as their

preferred lager and remains a top seller. It is lightly hopped and has a smooth finish.

Bear Paw Honey Lager – This honey lager is fermented with 100 percent organic honey from BC and

offers a unique lager experience. It has a sweet honey aroma that is complimented with a smooth faint

honey finish.

Black Tusk Ale - This recipe dates back to 1989 and has won Whistler Brewing Company two World

Awards. This dark English-style mild ale has a mild bitterness with notes of chocolate and roasted

coffee. It also has a clean nice finish.

Whistler Winter Dunkel - The newest addition to the Whistler Brewing Company, the Whistler Winter

Dunkel has a unique recipe with notes of delicate citrus, oranges and chocolate. This is a rich beer with

just enough bitterness from the hops to satisfy and balance its powerful malty flavours.

II (e). The Unique Experience for Craft Beer Enthusiasts

How does the Whistler Brewing Company enter the highly competitive short-term Whistler vacation

market?

This challenge is addressed in this proposal that outlines a new remarkable experience for a niche target

market. The unique experience offers many competitive advantages that distinguish it from what is

currently offered in the marketplace.

III. The Product Proposal

III (a). Whistler Brewing Company’s Whistler Brew-cation

Situated on the grounds of the existing Brew Creek Lodge, Whistler Brew-cation combines all aspects of

the beer drinking and brewing experience with the comforts and adventure of Whistler Mountain. This

is much more than a tour of a brewery can offer. It’s a unique vacation brewing experience located only

20 minutes south of Whistler Village. Guests celebrate Whistler Brewing’s craft beer as they learn

brewing techniques, enjoy great food, great entertainment, and of course great drinks.

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Whistler Brew-cation’s capacity is set at seventy guests per-night which is the same as Brew Creek

Lodge’s current capacity.

III (b). Accommodations

Accommodations at the Whistler Brew-cation resort are broken into categories that each reflects the

style of accommodation as well as the personality of each beer in the Whistler brewing product line.

Each category can be booked either on a per-night basis or can be booked within a packaged deal.

The accommodation categories are as follows:

Dunkel Lodge - A premium suite in a 3 bedroom/ 3 bathroom cabin.

Bear Paw Lodge - A luxurious one Bedroom Cabin

Powder Mountain Suites - Twelve loft style suites and two executive suites located in the main lodge

building of the resort.

Black Tusk lodge - Six appointed lodge rooms with private bathrooms attached to the main lodge.

Each room and cabin is designed to reflect the color scheme and personality of a particular Whistler

Brewing Company’s beer. Powder Mountain suites are painted blue and red, while the Dunkel Lodge is

painted purple and yellow. The Bear Paw Lodge is painted in different shades of orange and the Black

Tusk Lodge is light blue and orange.

All rooms and cabins contain basic resort amenities such as linens, towels, complimentary toiletries, a

flat screen television and furniture (bed, chair, and wardrobe). Premium suites and cabins offer more

value to guests by including such indulgences as leather furniture, Jacuzzi bath tubs and other quality

luxuries.

The Dunkel lodge also feature a full kitchen and Bear Paw lodge includes a kitchenette. Both cabins

contain all kitchen utensils (pots/pans, plates/bowls, knives/forks etc.).

III (c). Onsite Indoor/Outdoor Amenities

Resort guests have access to a variety of onsite amenities and activities that accent the outgoing and

adventurous spirit of the resort. Guests are engaged through both indoor and outdoor activities that

reflect the beer drinking experience, resort comfort and the natural playground of Whistler Mountain.

These indoor and outdoor amenities are complimentary to both per-night booked guests and packaged

deal guests.

Indoor amenities/activities include:

Library in main lodge with volumes about relative material

Interactive brewing classes

Instructional flair bartending classes

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Culinary classes

Cooking with beer

Pairing meals with beer

Outdoor amenities/activities include:

Outdoor fire pit with seating for 30 people

Hot tub with 16 person capacity

Beach style volley ball courts for tournament play

Landscaped green spaces with walking trails and benches

III (d). Offsite Activities and Strategic Partnerships

The objective of the outdoor activities is to engage visitors into experiencing the invigorating adventure

that exists in the fresh mountain air of the coastal mountains. Strategic partnering with local Whistler

businesses allows Whistler Brew-cation to offer unique experiences for its guests. Guests can purchase

these experiences through packaged deals or on their own through Whistler Brew-cation. A 10 percent

commission is earned on each booking through its strategic partnerships, and shuttle transportation is

available for $7.50 per guest.

Strategic partnerships include, but not limited to;

The Whistler Golf Course – This beautiful course is designed by Arnold Palmer and is one of Canada’s top

ranked golf courses. Its championship design and superb conditioning offers a unique Whistler golf

experience. Partnership with the Whistler Golf Course allows Whistler Brew-cation to offer packaged

deals that include green fees, tournament fees, and lessons.

Whistler Blackcomb Mountain - This world class ski resort offers over 8,100 acres of terrain for both

winter and spring skiing and snowboarding. Glacier skiing is also available for the summer months, as

well as access to many pristine hiking trails. Partnership with Whistler Blackcomb Mountain allows

Whistler Brew-cation to offer packaged deals that include lift tickets, rentals, lessons, and Peak to Peak

gondola tickets.

Whistler Mountain Bike Park - Experience 200km of lift-serviced gravity fed adrenaline. The Whistler

Mountain Bike Park offers much more than a traditional bike park. It offers numerous trails that suite a

wide variety of abilities. Partnership with Whistler Mountain Bike Park allows Whistler Brew-cation the

ability to offer packaged deals that include lift tickets, and rentals.

Whistler Heli-Skiing - This heli-ski company, established in 1981, offers guests access to 173 glaciers and

475 runs in the mountain terrain near Whistler. Partnership with Whistler Heli-Skiing enables Whistler

Brew-cation to offer packaged deals which gives guests access to an abundance of powder, as well as

proper backcountry training.

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III (e). Food and Beverage

Designed as a full service brew pub, the Whiskey Jack lounge is located in the main lodge of the resort

and is the venue for all food and beverage activities. The pub is styled as a rustic mountain lodge with

mahogany stained floors, furniture and bar.

Three private dining rooms of different sizes are available to the side of the lounge to accommodate

lounge overflow and private parties. The bar is stocked with the entire product line of Whistler Brewery

as well as local BC wines and Canadian Spirits. All beers are available and served on tap.

All walls, beams and interior ceiling are made of unfinished yellow and red cedar. The walls of the

lounge, dining rooms and main lodge are featured with paintings and art work produced by artists local

to Squamish, Whistler and Pemberton.

As part of a paid package, each guest are welcomed to a continental style breakfast, buffet style lunch

and plated dinner of each day of their stay. Each lunch and Dinner menu is designed to be paired with a

specific beer. Below lists menu options and beer pairings.

Powder Mountain Lager.

o Mexican Food

o Grilled Seafood

o Light Cheeses

Grapefruit Ale

o Asian Dishes

o Curries

Whiskey Jack Ale

o Pizza

o Hamburgers

o Grilled Meats

o Chili

Bear Paw Honey Lager

o Turkey

o Pizza

o Lasagna

o Steak

o Calamari

Black Tusk Ale

o Chocolate desserts

o Vinaigrette topped salads

o Spicy Foods

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Due to provincial laws, alcohol cannot be served during breakfast hours, this being said there is no need

to pair a particular beer with breakfast menu items. Continental breakfast includes both hot and cold

items as well as beverages.

Cold Items

o Bagels/bread

o Cold cereal

o Assorted fruits

o Muffins

Hot Items (served in chaffing dishes)

o Eggs

o Breakfast meats (bacon, ham, sausage)

o Hash browns

Beverages

o Fruit juices (orange, cranberry, apple)

o Coffee

o Tea

The lounge is open to visitors and guests not staying at the resort, and meals are priced competitively to

those guests. Guests who are staying at the resort enjoy included meals with their packaged deals.

Special catering packages are also available to large groups.

In the same building as the Pub there is the front desk and gift shop/off premises retailer for Whistler

Brewing products. This off premises retailer also sells other alcoholic spirits.

III (f). Staffing Strategy

As part of the guest experience, all staff members are young, enthusiastic and fun loving. Most of the

operational staff is seasonally hired and volume of this staff fluctuates with demand. In order to fulfil

this style of staffing, Whistler Brew-cation seeks Australian and New Zealand travellers, as well as

Canadian university students.

III (g). Pricing Strategy

The pricing structure for Whistler Brew-cation is based on perceived buyer value. Tourism competition

is a factor to consider, however the uniqueness of this service allows more flexibility in terms of price. A

shoulder pricing strategy is also implemented for the slower months of the year in order to increase

bookings while not discounting the brand.

III (h). Whistler Brew-cation’s Proposed Options

The Whistler Brew-cation concept involves not only a large capital investment, but also substantial

operating costs that follow. The Bottom line is success for this concept is measured on the volume of

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paying guests. Two different recommendations are listed below, and the financial impact of these two

options is shown in the later portion of this proposal.

1) Operate Whistler Brew-cation for the full year. Operating continuously could offer a higher

return on investment, and spread fixed costs over a larger period. Inefficiencies may occur due

to a lack of demand during seasonal lows.

2) Operate Whistler Brew-cation for the months of June, July, August, December, and January.

Operating during only the peak season allows for a reduction in staffing costs and product

spoilage. Fixed costs remain unchanged.

III (i). Marketing and Sales

Markets: Whistler Brew-cation’s proposed launch date is Friday, May 31st 2013. The primary geographic

target for this launch is the Greater Vancouver area and Vancouver Island. With both BC’s domestic

travel industry and craft beer industry on the rise, targeting this geographic region makes sense. Further

expansion into the United States and abroad is likely for the future.

Because there isn’t a similar product in BC, Whistler Brewing can establish a stronghold on the new

market of brewing getaway experiences. This will help Whistler Brewing grow from a local brand to a

global brand.

Existing Sales Channels: Five main sales channels are utilized by Whistler Brew-cation. Distribution

through these channels is outlined as follows:

1) Direct: Sales through the website, telephone, brewery, and Brew-cation facility, offers the

greatest profit margin with the best controlled brand message environment.

2) Travel Agents: Offering commission to travel agents allows Whistler Brew-cation access to a

larger distribution pool. Package deals and single night stays are available through these

vendors.

3) Online Wholesalers: These travel wholesalers offer even larger distribution channels, but also

take a larger commission on the sale. Package deals and single night stays are available through

these wholesalers.

4) Strategic Partners: Strategic partnering with Whistler Mountain, Whistler Golf Course, Whistler

Mountain Bike Park, and Whistler Heli-skiing enable these companies to sell packaged deals and

single night stays to Whistler Brew-cation. A 10 percent commission is given for each complete

booking.

5) Social Media: This channel is more of a promotional channel than a sales channel. Whistler

Brew-cation’s Twitter followers and Facebook fans are given chances to win Whistler Brew-

cation packages.

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IV. Revenue and Benefit Analysis – Option 1

IV (a). Strategic Benefits – Option 1

Whistler Brewing’s Whistler Brew-cation fully aligns with Whistler Brewing Company’s brand strategy.

Whistler Brewing – Authentic, Hand Crafted, Artisan

Whistler Brew-cation – Authentic, Natural, Exceptional

IV (b). Revenue Model Methodology – Option 1

The revenue model for guest counts is based on combined averages of worst-, mid-, best- and probable-

case scenarios for all package offerings. The Brew Creek Centre holds a maximum of seventy guests per

night, and therefore yearly max capacity is set as 70 X 365 = 25,550. Excursion revenue and

restaurant/retail revenue is a projected average per guest per night. Guest count is expected to

increase by 5 percent in the following year.

Worst-case scenario assumes 2 guest visits per night, or 2.9% utilization

Mid-case assumes 25 guest visits per night, or 35.7% utilization

Best-case assumes 55 guest visits per night, or 78.6% utilization

Probable-case assumes 30 guest visits per night, or 42.9% utilization

IV (c). Total Revenue Generated – Option 1

Total revenue generated from Whistler Brew-cation from May 31, 2013 to May 30, 2014 is outlined in

Figure 1. Total revenue generated from Whistler Brew-cation from May 31, 2014 to May 30, 2015 is

outlined in Figure 2.

Figure 1 – Revenue Generated from May 31, 2013 to May 30, 2014 (Option 1)

Case Scenario: Worst Mid Best Probable

Uti l i zation 2.9% 35.7% 78.6% 42.9%

Guest Count 730 9125 20075 10950

Room Revenue (Avg $150/night) 109,500.00$ 1,368,750.00$ 3,011,250.00$ 1,642,500.00$

Excurs ion Revenue (Avg $10/guest) 7,300.00$ 91,250.00$ 200,750.00$ 109,500.00$

Restaurant/Retai l Rev. (Avg $40/guest) 29,200.00$ 365,000.00$ 803,000.00$ 438,000.00$

Tota l Revenue 146,000.00$ 1,825,000.00$ 4,015,000.00$ 2,190,000.00$

Guest Count Revenue

Probable-case Total Revenue 10950 2,190,000.00$

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IV (d). Contribution Margin Analysis – Option 1

Contribution margin has been expressed as a percentage to simplify the effects variable costs has on

Whistler Brew-cation’s revenue. The variance in contribution margin is due to economies of scale and

these percentages are shown in Figure 3.

Figure 3 - Contribution Margin Analysis (Option 1)

IV (e). Fixed Cost Analysis – Option 1

There are initial investments in capital that are needed to ensure the success of Whistler Brew-cation.

These include the purchase of the Brew Creek Centre, the renovation of that centre, and the purchase of

additional brewing/bar equipment. These investments are shown as yearly fixed costs to simplify their

relationship with the revenue they help to generate.

The Brew Creek Centre:

Initial Cost: $2,000,000

Mortgage Term: 360 months

Mortgage Rate: 2.84%

Monthly Payment: $8,242.73

Yearly Payment Sum: $98,912.76

The Brew Creek Centre Renovation:

Initial Cost: $200,000

Loan Term: 60 months

Loan Rate: 6.5%



Uti l i zation 7.9% 40.7% 83.6% 47.9%

Guest Count 2018 10399 21360 12238




Tota l Revenue 403,690.00$ 2,079,770.00$ 4,271,960.00$ 2,447,690.00$

Guest Count Revenue

Probable-case Total Revenue 12238.45 2,447,690.00$


Contribution Margin % 85% 55% 35% 45%

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Additional Brewing/Bar Equipment:

Initial Cost: $90,000

Loan Term: 60 months

Loan Rate: 6.5%



Direct fixed costs include expenses that are directly related to Whistler Brew-cation’s operations and are

independent of the number of guests. Figure 4 shows Whistler Brew-cation’s total fixed costs for all the

case-scenarios by adding its initial investment fixed costs and its direct fixed costs.

Figure 4 - Direct Fixed Cost Analysis (Option 1)


Purchase of Brew Creek Centre $98,912.76 $98,912.76 $98,912.76 $98,912.76

Renovation of Brew Creek Centre $46,958.76 $46,958.76 $46,958.76 $46,958.76

Purchase of Brewing/Bar Equipment $21,131.52 $21,131.52 $21,131.52 $21,131.52

Total Ini tia l Investment Fixed Costs 167,003.04$ 167,003.04$ 167,003.04$ 167,003.04$

Direct Fixed Costs 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$

Total Fixed Costs 467,003.04$ 467,003.04$ 467,003.04$ 467,003.04$

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IV (f). Net Income – Option 1

Net income for Whistler Brew-cation from May 31, 2013 to May 30, 2014 is outlined in Figure 5, and net

income for the following year is outlined in Figure 6.

Figure 5 - Net Income from May 31, 2013 to May 30, 2014 (Option 1)


Uti l i zation 2.9% 35.7% 78.6% 42.9%

Guest Count 730 9125 20075 10950




Total Revenue 146,000.00$ 1,825,000.00$ 4,015,000.00$ 2,190,000.00$


Total Revenue - Contribution Margin $ 124,100.00$ 1,003,750.00$ 1,405,250.00$ 985,500.00$







Net Income (342,903.04)$ 536,746.96$ 938,246.96$ 518,496.96$

Guest Count Revenue Net Income

Probable-case 10950 2,190,000.00$ 518,496.96$

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V. Revenue and Benefit Analysis - Option 2

V (a). Strategic Benefits - Option 2

Same as option 1.

V (b). Revenue Model Methodology - Option 2

The revenue model for guest counts is based on combined averages of worst-, mid-, best- and probable-

case scenarios for all package offerings. The Brew Creek Centre holds a maximum of seventy guests per

night, and therefore max capacity for June, July, August, December, and January is 70 X 154 = 10,780.

Excursion revenue and restaurant/retail revenue is a projected average per guest per night. Guest count

is expected to increase by 2 percent in the following year.

Worst-case scenario assumes 4 guest visits per night, or 5.7% utilization

Mid-case assumes 35 guest visits per night, or 50.0% utilization

Best-case assumes 65 guest visits per night, or 92.9% utilization

Probable-case assumes 48 guest visits per night, or 68.6% utilization


Uti l i zation 7.9% 40.7% 83.6% 47.9%

Guest Count 2018 10399 21360 12238




Total Revenue 403,690.00$ 2,079,770.00$ 4,271,960.00$ 2,447,690.00$


Total Revenue - Contribution Margin $ 343,136.50$ 1,143,873.50$ 1,495,186.00$ 1,101,460.50$







Net Income (123,866.54)$ 676,870.46$ 1,028,182.96$ 634,457.46$


Probable-case 12238 2,447,690.00$ 634,457.46$

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V (c). Total Revenue Generated - Option 2

Total revenue generated from Whistler Brew-cation from May 31, 2013 to May 30, 2014 is outlined in

Figure 7. Total revenue generated from Whistler Brew-cation from May 31, 2014 to May 30, 2015 is

outlined in Figure 8.



V (d). Contribution Margin Analysis - Option 2

Contribution margin has been expressed as a percentage to simplify the effects variable costs has on

Whistler Brew-cation’s revenue. The variance in contribution margin is due to economies of scale and

these percentages are shown in Figure 9.

Figure 9 - Contribution Margin Analysis (Option 2)


Uti l i zation 5.7% 50.0% 92.9% 68.6%

Guest Count 616 5390 10010 7392

Room Revenue (Avg $150/night) 92,400.00$ 808,500.00$ 1,501,500.00$ 1,108,800.00$



Tota l Revenue 123,200.00$ 1,078,000.00$ 2,002,000.00$ 1,478,400.00$

Guest Count Revenue

Probable-case Total Revenue 7392 1,478,400.00$


Uti l i zation 7.7% 52.0% 94.9% 70.6%

Guest Count 830 5606 10230 7611




Tota l Revenue 166,012.00$ 1,121,120.00$ 2,046,044.00$ 1,522,136.00$

Guest Count Revenue

Probable-case Total Revenue 7610.68 1,522,136.00$



Page | 17

V (e). Fixed Cost Analysis – Option 2

Same as option 1.

V (f). Net Income - Option 2

Net income for Whistler Brew-cation from May 31, 2013 to May 30, 2014 is outlined in Figure 10, and

net income for the following year is outlined in Figure 11.



Uti l i zation 5.7% 50.0% 92.9% 68.6%

Guest Count 616 5390 10010 7392




Total Revenue 123,200.00$ 1,078,000.00$ 2,002,000.00$ 1,478,400.00$


Total Revenue - Contribution Margin $ 96,096.00$ 517,440.00$ 560,560.00$ 561,792.00$







Net Income (370,907.04)$ 50,436.96$ 93,556.96$ 94,788.96$


Probable-case 7392 1,478,400.00$ 94,788.96$

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VI. The Recommendation

Based on the above presented, it is recommended to implement option 1 of Whistler Brew-cation. The

main points of this argument are as follows:

Potential to generate substantial revenue

Probable-case net income for the first year is $518,496.965.

Unique branding/sales opportunity

Engages market with Whistler Brewing Company’s brand

VII. The Next Steps

The following steps are needed to move forward with Whistler Brew-cation.

Approval

Marketing Plan

Strategic Implementation Plan

$167,003.04 Initial Capital Investment


Uti l i zation 7.7% 52.0% 94.9% 70.6%

Guest Count 830 5606 10230 7611




Total Revenue 166,012.00$ 1,121,120.00$ 2,046,044.00$ 1,522,136.00$


Total Revenue - Contribution Margin $ 129,489.36$ 538,137.60$ 572,892.32$ 578,411.68$







Net Income (337,513.68)$ 71,134.56$ 105,889.28$ 111,408.64$


Probable-case 7611 1,522,136.00$ 111,408.64$

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