The LoungeMeredith Kendall, Jocelyn Nedumcheril,

Tyler O’Regan, Austen Robinson

Our mission is to create a welcoming establishment that will fulfill the nightlife and entertainment needs of the local college population.  We will strive to provide a safe and entertaining venue that can accommodate 18 and older, while also offering a mature bar setting for those of legal drinking age.  Our ultimate goal is to provide a high quality and unique experience for our customers.

Mission Statement

Two Floors

Live Music Bar

18+ on weekends

Specializing in live concerts

Beer Pong Tables

Darts

The Lounge

Monday- Amateur Night

Tuesday- Beer Pong Tournament

Thursday- College Special

Friday or Saturday- Live Concerts

Special Events

3 Distinct Customer Groups

College Underclassman: 18-20

College Upperclassman: 21+

Young Professionals

Target Market

Market Research

Yes No0

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Are you Statisfied with Villanova Nightlife?

Market Research

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Do You Enjoy Live Music Events?

Market Research

Yes No0

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Would You Go to a Bar with Live Music?

Location◦ Large customer base from local universities

Uniqueness◦ No similar businesses in the area

Accommodation◦ 18 to enter on weekends

Strategy

Important to consistently find Bands

Sophisticated Sound System

Bands will set up early in the night

Concerts start at 10:30

House Music throughout the night

Operations Strategy

Order in bulk

Keep costs low

Quick Service

Properly Trained Bartenders

Bar Operations

Lean Six Sigma System -elimination of food services

5S Practices

Quality Control

Waiting- additional staff

Motion/Underutilization- walk thru-tests

Inventory- JIT and daily checks

Defects- managers review supplies, perform tests

Transportation- research suppliers

Wastes

Background check on musical talents

Proper bartender/bouncer training -wristbands and markers

Bartenders -produce all kinds of drinks -limit waste of liquor

Implementation

Reliable Suppliers-Bryn Mawr Wine and Spirits-Muller, Origlio, Penn beer distributors-US Foods

Periodic Review System -daily inventory check

Supply Chain Management

Operate at full capacity Thursday-Saturday Factors:

◦ Certain weekends, weather, sports, special events, school schedules

Separate Entrances◦ Streamlined◦ Reduces waiting times

2 Month Moving Average◦ Adjust as needed

Demand Management

Start-up Cost: $400,000 -outfitting the bar, stage, liquor license, etc.

Fixed Cost:

Variable Cost:

Costs

Rent $120,000

Insurance $5,000

Manager Salary $46,000

Gas $5,100

Electricity $17,400

Bouncers $40,716

Bartenders  - $3 an hour $33,700

Band Fees - $300 a show 10,500

Prices

Prices based on 2.5 times cost markup

Beer- $3 Shot- $5 Well Drinks- $5 Soda/Redbull- $3 Cover (under 21)- $10

Thursday Specials

Beer- $2 Shot- $3 Well Drinks- $3

Revenue COGS Profit

Cover $270,000 0 $270,000

Beer weekends $74,925 $29,970.0 $44,955

Beer Weekdays $60,750 $24,300.0 $36,450

shot weekends $101,250 $40,500.0 $60,750

shot weekday $33,750 $13,500.0 $20,250

mix drink weekend $84,375 $33,750.0 $50,625

mid drink weekday $67,500 $27,000.0 $40,500

Soda/Redbull $121,500 $48,600.0 $72,900

Total $814,050 $217,620 $596,430

Revenue off Drinks + Cover

Revenue- $596,430 LessStartup Costs- $400,000Fixed Annual- $171,000Variable Annual- $107,400

Loss- $81,970

First Year Estimates