wine bar business plan

A Business Plan For A Local Wine Bar

Prepared For Professors:Jeff Anderson, Jamie Carter, Mike Martel, Scott Wright

By: Team 4kJackie Danchek, Adam DeBellis, Nick Fedak,Julie Novelli, Tracey PashaPrepared For ClientsRenee & Jim Cook

Letter of Transmittal(412) 913-9720

[email protected] November 6, 2009

Mr. and Mrs. Jim and Renee Cook3150 North Sheffield Chicago, IL 60657 Mr. and Mrs. Cook: Enclosed is a copy of a “A Small Business Plan for a Local Wine Bar.” This report is a summary of our findings on the costs and benefits of opening a wine bar in Athens, Ohio. Our wine bar will be called “Put A Cork In It.” Our report has been prepared for you as well as our four professors. Funding for this report was authorized on October 15, 2009 by the Ohio University College of Business. We completed our report on schedule while meeting all of our original objectives as well as any new objectives we had been given. As promised in our proposal, we have found that overall, implementing a wine bar in Athens, Ohio would be a successful business venture. We believe that our wine bar will be successful for many reasons. Most importantly, there is a very low level of competition for wine bars. Currently, there are no other businesses that offer the same products at the same level that we do. Our only other competitors would be Bella Vino wine shop as well as Stephen’s and Zoe’s fine dining restaurants. We believe that we have chosen a prime location that provides plenty of parking for your customers. While speaking with both of you it was implied that you did not wish to hire any other employee’s. After extensive research we realize that it would be difficult to run a successful business with just two people. It is important to have good customer service when running a business, and with only two employees this could be very difficult. We recommend that you hire more employees in order to succeed. Overall, we believe our benefits outweigh our costs and that Put A Cork In It will be a profitable endeavor. If you have any questions and/or comments regarding the interpretation of this report please feel free to contact us at the number above. Thank you for your funding of this project and we look forward to working with you again soon. Sincerely,

Group 4: Jaclyn Danchek, Tracey Pasha, Adam DeBellis, Nicholas Fedak, and Julianne Novelli

Executive Summary

The purpose of this report is to determine the best potential opportunity for a new business venture in the Athens community. A feasibility analysis was conducted for the potential operation of a wine bar. The goal of our study was to focus on our assigned operation of a wine bar. Our analysis includes a start up plan detailing the initial and ongoing operation costs as well as marketing efforts to make this possibility a reality. The objective of this report is to understand the inputs needed to take part in this business enterprise and along with the most suitable and effective means to bring this wine bar to the local community and establish interest, knowledge, and prolong growth.

Industry AnalysisThis report will begin with an industry analysis that will describe the growing popularity of wine bars in recent years. When discussing the potential for a company to enter into an industry it is vital to examine Porter’s Five Forces along with a S.W.O.T analysis to understand the barriers and potential success factors for the prospective client. This section will examine these factors to provide for a better understanding of the achievability of such a business opportunity.

Marketing AnalysisFollowing the industry analysis will be a breakdown of the marketing analysis for this business venture. This section will provide strong graphics that represent key trends in the wine market for the United States, Ohio, and Athens. Along with these market representations, this report will provide information relating to the proposed project’s target market, market description, and strategic opportunities. Individual promotion strategies along with a Customer Relationship Management model will also be provided.

Business PlanThe business plan section of this report will provide all the necessary information needed detailing the location, proposed wine and food menu items, and remodeling plans. The business plan will also provide the information needed for day-to-day operations including licensing, permits, personnel, and hours of operation. Along with the business plan will be a detailed list of financials including start-up costs, operating expenses, balance sheets, income statements, and forecasting.

ConclusionThe purpose of this report was to determine the potential for opening a wine bar in Athens, Ohio. The sections that have been included in this report detail all of the information that one would need to determine the possibility of this proposed business opportunity.

Table Of Contents

Introduction……………………………………………………………………………..5Industry Analysis………………………………………………………………………9

Porter’s 5 Forces……………………………….10Competition……………………………………..12S.W.O.T Analysis………………………………..13

Marketing Analysis………………………………………………………………….15Market Trends………………………………….15Target Market…………………………………..20Marketing Mix………………………………….21Promotion Strategies……………………….22Customer Relationship Management.27

Business Plan…………………………………………………………………………28Menu……………………………………………….29Pricing Strategies……………………………..34Location…………………………………………..36Operational Plan……………………….......45

Financial Analysis……………………………………………………………………52Conclusion……………………………………………………………………………..54 References……………………………………………………………………………..55Appendices…………………………………………………………………………….58

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Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion

Introduction

The purpose of this report is to determine the best potential opportunity for a new business venture in the Athens community. A feasibility analysis was conducted for the potential operation of a wine bar. The goal of our study was to focus on our assigned operation of a wine bar. Our analysis includes a start up plan detailing the initial and ongoing operation costs as well as marketing efforts to make this possibility a reality. The objective of this report is to understand the inputs needed to take part in this business enterprise along with the most suitable and effective means to bring this wine bar to the local community and establish interest, knowledge, and prolong growth.

Enjoyable Atmosphere, Excellent Food, Exquisite Wine…

…Bring Them All Together

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Proposed Company Name and Logo

After consulting with the clients and researching potential options, we believe the proposed name of “Put A Cork In It” is the best option. Our goal was to create a name and logo that best represents the business.

Our objective was to create a wine bar and restaurant that conveys a sense of a fun, welcoming, and enjoyable atmosphere. It was our job to create a modern name and logo. We believe that converting from our original idea of “Cook’s Corner” and alternate logo to the new proposed name and logo is the best way to transmit these ideas.

Cursive font helps portray a

sophisticated feeling to a somewhat

trendy company name

The wine man is included to portray a modern feel to the company logo. Athens

is a very trendy environment and this will help the business “fit” in

The color scheme selected demonstrates the sense of

style and atmosphere wanted for the business

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



7

Proposed Company Name and Logo

It was our train of thought that a unique name is a necessity for this particular situation. Since this proposed business will practically be the only one of its kind, it is imperative that we are able to make the business as recognizable as possible.

When a potential customer heard the name “Cook’s Corner” it may very well be portrayed as a place to grab a bite to eat and not represent the main focus of being a wine bar. When a potential customer hears the name “Put A Cork In It” they will immediately relate that with somewhere to enjoy a fine glass of wine, and that is what needs to be accomplished.

The name may come across to some as possibly having some negative connotations or some may develop skewed perceptions, but the addition of our tag line will supplement a level of class that complements the name. Wherever our name and logo appear, whether it be in an advertisement or a review, the tagline will be included to fill the need of sophistication.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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Mission & Vision Statement

A new taste in town… “Put A Cork In It” is a place for the relaxed, easy going, and harmonious members of the Athens community. We want the community to have a new favorite hangout, whether you’re relaxing with friends and colleagues or perusing a romantic evening. “Put A Cork In It” combines wonderful style, sophistication and genuine hospitality to create a truly unique experience. We offer great small entrees, appetizers, soups and salads, and homemade desserts with the combination of well priced wines. We work with local businesses and farmers to bring you the finest most natural and best tasting products.

Our vision is to have a positive impact on the Athens Community while providing them with an upscale atmosphere for professors, graduate students, and other members of the community to enjoy wine and each others company.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion

Wine Bars began to gain popularity in the 1990’s and have continued to prosper in recent years. By the year 2000, wine bars became very popular, specifically in metropolitan areas. Wine bars offer a relaxing environment that provides an alternative to people looking for a more sophisticated atmosphere than a typical bar scene.

Growing Popularity Of Wine Bars

With wine tastings and buy the glass purchasing, customers are able to sample the product before they purchase a whole bottle. It offers an intimate appeal for those who are looking for a comfortable setting to spend time with friends, family or a significant other.

Traditionally, wine bars strictly offered wines and small appetizers such as cheeses or desserts. However, modern wine bars have now expanded to offer larger entrées. Based on the growing industry, the opportunity for a wine bar in Athens, Ohio seems to be a successful business venture.



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Threat of New Entrants- Low

Threat of Substitutes- Low

Competitive Rivalry

-Stephens-Bella Vino

-Zoe’s

Porter’s 5 Forces Model

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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Bargaining Power of Supplier

As a supplier, the bargaining

power is very high. Beingthe only wine bar in Athens,

it provides aspecialization in wine which

no other businesses inAthens provide. Since there

are numerous winedistributors, they have the ability to choose betweenmany distributors which gives them more control

over inventory costs.

Bargaining Power of Customers

The customers have very low

bargaining powerbecause there are no other wine bars which they can

go to as an alternative. Wine is an expensive good so

buyers do not have much influence on lowering the

price.

Threat of New Entrants The threat of new entrants is

very low. With no liquor licenses currently available and low levels of income in the Athens community, the

chance of companies wanting to invest in a wine bar is almost non-existent.

Threat of Substitutes The threat of substitutes for

a wine bar is very low because there are only three other places in Athens that

provide food and wine in the same way that our company will. Also these places do not

offer as big of a wine selection as we will. The threat of substitutes for

other alcohol serving locations is fairly high.

Instead of coming to a place that would almost exclusively

serve wine, they have the option to walk down court street and take their pick

from one of the many bars that serve all of their favorite

beers and liquors.

Competitive Rivalry Our firm will provide a

competitive advantage over our rivals. In this case our three main rivals would be

Zoe's, Bella Vino, and Stephen's. We will be able to offer our customers a much

larger selection of wines ranging from domestic to

international wines. We will rise above our competition

by providing numerous promotions that will invite our potential customers to come and enjoy all of the

great things we have to offer: wine tastings, wines from

around the world, college ID night, all in the confines of

our inviting, modern, sociable setting.

Porter’s 5 Forces Breakdown

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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Competition

Bella VinoLocation: 22 West Stimson Street •Largest Selection of Organic Wines in Southeast Ohio•Offers regular wine tastings•Offers

• Organic & Specialty Wines• Beers & Spirits• Wine Accessories

Stephen’s RestaurantLocation: 66 North Court Street•Offers a seasonal menu, with daily specials and desserts• Bar offers Athens largest wine list•Casual to Fine Dining

Zoe’s RestaurantLocation: 24 1/2 East State Street•Contemporary Fine Dining

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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External Forces

Strengths

Weaknesses

S.W.O.T Analysis

Knowledge and Experience: Since it will be owned and operated by Ohio University graduates, they have knowledge of the community and a good understanding of the atmosphere and people. Mr. Cook currently works in the wine industry for a wine distribution company so he is able to offer his expertise, giving him a competitive advantage over other possible competitors who may not possess the same knowledge.

Location: Being located on West Union Street puts the business in one of the most trafficked areas in Athens. This location also provides lots of parking so that it is easily accessible to our customers.

Setting: Not your typical wine bar crowd or atmosphere: Uptown has numerous existing bars geared toward college students which have much more potential of being successful. Wine bars are something that have been gaining popularity in metropolitan areas. Since Athens is more of a rural area it will be difficult to attract customers that wish to spend a lot of money there. Liquor License: There is currently no available

liquor licenses in Athens County. Options for achieving a license include:•Purchase an existing one from a current owner•Buy one from a surrounding county and transfer it over by proving it will help the local economy.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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External Forces

Opportunities

Threats

S.W.O.T Analysis

Low Competition: Put a Cork in it has the opportunity to become the number one wine establishment in the Athens area. With Zoe's and Stephen's being the only other places that offer wine and dine, our company has the chance to come into Athens and provide a greater selection of wine with a very welcoming and friendly atmosphere. We can also provide a location that will cater to the wants and needs of our target market. Professors, graduate students and older members of Athens do not have an alternative to the crowded bar scene that Court Street limits them to. We offer a more welcoming and relaxed environment compared to the young and loud bar scene that exists on the weekends.

Undesirable Outcome: Currently there are only three threats to our particular type of establishment- Zoe's, Bella Vino and Stephen's. When our company begins operating, we feel that the threat of other similar establishments opening is very low. There is also the threat of the profits not outweighing the start up costs for the business. We are hoping to provide a desirable atmosphere to our target market, but the possibility of not gaining a large enough customer base or interest poses the threat of the company not being as profitable as hoped for.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion

Key Market Trends

• Over 304 Million gallons of wine were sold in 2007, making the U.S the largest consumer of wine

in the world

• Today, 57% of U.S Population is drinking wine, compared to 43% in 2000

•The wine retail market was at $27.9 Billion in 2007

• Wine consumption in Ohio has increased by 26% in the past 5 years.

• Recent studies have shown significant health benefits from moderate consumption of red wine, it has anti-oxidants, anti-allergic, anti-histamines, and

anti-viral properties

• The age group 23 to 30 years of age are not as sophisticated about wine, as their elders generations are, and are willing to experiment with low cost wines.



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Key Market Trends

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002300

350

400

450

500

550

600

U.S Wine Market

Millions of G

allons

1993 1994 1995 1996 1997 1998 1999 2000 2001 20028000

9000

10000

11000

12000

13000

14000

15000

16000

Ohio Wine Market

Gallons Of W

ine Consum

ed

Wine has become increasingly popular in the United States in the last decade. The United States is now the largest consumer of wine in the world.

Wine has also become increasingly popular in Ohio. Ohio is ranked 9th in the country in wine consumption.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



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Key Market Trends

< 25

25-34

35-44

45-54

55-64

65-74

74+

3.5

12

23.6

24.4

19.9

10.4

6.6

2005 Wine Drinking at Home Market Share % By Age

67.7%

30.6%

31.3%

14.8%

2005 Wine Drinking at Home Market Share % By Marital Status

MarriedMarried w/ No ChildrenMarried w/ ChildrenSingle

Wine has had the stereotype of being a beverage for the older crowd. Recent statistics from the 2005 Alcoholic Beverage Handbook has shown that wine has become increasingly popular with the younger crowds. People between the ages of 35-64 are most likely to consume wine at their homes.

Wine Is a great beverage to share with a loved one. Statistics have shown that married couples are the main consumers of wine in the United States.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

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Key Market Trends

< 25

25-34

35-44

45-54

55-64

65-74

74+

3.2

14.5

19.9

24.4

23.9

11.2

3.3

2005 Wine Drinking Market Share At Bars/Restaurants By Age

64.2%

33.9%

27.6%

23.6%

2005 Wine Drinking at Bars/Restaurants By Marital Status

MarriedMarried w/ No ChildrenMarried w/ ChildrenSingle

Drinking wine with food has been a long tradition across the globe. The age group most likely to purchase wine at a bar or restaurant is ages 35-64

Going out to a restaurant with a loved one has always been a popular activity. Recent statistics from the 2005 Alcoholic Beverage Handbook have shown that the majority of people who order wine at a restaurant or bar are married.

Introduction

Industry Analysis

Business Plan

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Marketing Analysis

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Key Market Trends In Athens

15-19

20-24

25-34

35-44

45-54

55-59

60-64

65-74

75-84

30.3

35.4

10

6.4

4.6

1.5

1.4

2.1

2

Age Distribution of People in Athens from 2006-2008 ( % )

Married-Couple Families

People Living Alone

Other Families

Other Non-Family Households

26

34

9

31

Types of Households in Athens County ( By % )

< $10,000$10,000-$14,999$15000-$24,999$25,000-$34,999$35,000-$49,999$50,000-$74,999$75,000-$99,999

$100,000-$149,999$150,000-$199,999

$200,000 +

20.916.7

14.45.8

917.2

6.16.5

1.32.1

Athens County Household Income (% Of Households)

Athens County is home to age groups mainly in 20-24 years old, 34.5%. A little over 50% of household Income are less than $25,000 a year, as previously mentioned, this could contribute to the low threat of new entrants in the wine market.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

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Target Market

Market Description“Put A Cork In It” operates in the greater southeastern Ohio area, targeting those who are interested in wine, and/or are looking for a fresh, new social environment. The geographic area is focused on Athens county, but is not limited to other regions such as Logan, Nelsonville, Marietta, and the Hocking Hills areas.

Market SizeAthens is a historic college town in the southeastern region of Ohio. Athens is home to Ohio University and an estimated population of around 22,000. Athens has 7 adjacent counties (Clockwise starting from north) : Perry, Morgan, Washington, Wood(WV) , Meigs, Vinton, and Hocking. According to the 2000 U.S census the adjacent counties have an approximate population of 264,300.

Target CustomersThe people “Put A Cork In It” mainly targets for its products and services have these characteristics:

• Age Groups: 35-64 , College Graduates, Graduate Students, • Sex: Male and Female• Household Income: $35,000 +• Marital Status: Married Couples and Singles• Residence: Athens community

Strategic Opportunities• There are currently no Wine Bars in Athens• Ohio University graduate students, professors, and other employees • The employees of local businesses: Appalachian Behavioral Healthcare,

Hocking College, Diagnostic Hybrids, O'Bleness Memorial Hospital, Rocky Brands, and Wayne National Forest.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

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Marketing M ix and Position

Product: Wines, Small Entrées and

appetizers, as well as other various alcoholic beverages

Price: On average $4-8 per glass;

$15-30 per bottle

Place: 434 West Union Street

Promotion: Events: Wines from Around

the World, College I.D. Night, Wine Tasting, CRM

Database.Advertisements: Website,

Facebook, Local Newspaper, Flyers

Our position in the market will be an entry level wine bar and bistro. It will be a comfortable and relaxing atmosphere that combines a contemporary and chic feel. We will have higher end dining at a reasonable price.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

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Promotion Strategies

Wine’s From Around the World

“Wine’s from Around the World” is a promotional strategy that will be used to keep frequent customers. Based on the 80/20 rule, we believe it is important to keep the same customers coming back. Each time a customer comes into the wine bar they have the opportunity to try a glass of wine from one of fifteen different countries selected. After completing the fifteen countries, they are offered a complimentary bottle of the wine of their choice. This will tactic will help to increase customer satisfaction and loyalty as well as a growing customer base for our business.

College I.D. NightCome visit Put A Cork In It on the second Friday of every month and receive 20% off your total bill with proof of a valid Ohio University I.D. This promotional strategyis geared toward the college students who wish to escape from Court Street for a night and enjoy a more sophisticated atmosphere at a less expensive cost than a typical night.

Wine tasting eventsCustomers can come and enjoy a fun evening out every first Friday of the month. By paying a set price ($50 per couple or $30 per person) you are able to receive ten different samples of new wines. This helps customers learn which wines they enjoy the most without having to buy individual glasses of them all.

These Ads can be used in local newspapers for more Ads to be used for promotion see Appendices A ,B, & C

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Industry Analysis

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Marketing Analysis

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http://www.michaelassociates.co.uk/blog/wp-content/uploads/2008/12/wine_tasting.jpg

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The creation of a website for “Put A Cork In It” is necessary in order to achieve capturing customers. The internet is now intertwined with how our culture lives. A website can display the necessary information about the business.

www.PutACorkInIt.org Will Display Information Regarding:

• The Location• The Mission Statement• The Food Menu• The Wine Menu

• The Customer Relationship Management

Introduction

Industry Analysis

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Promotion StrategiesCreate A Facebook Page

•A Facebook Page is a public profile that enables the sharing of the business and products with over 300 Million Facebook users.•When fans interact with the Facebook Page, stories linking to the Page can go to their friends via News Feed. As these friends interact with the Page, News Feed keeps driving word-of-mouth to a wider circle of friends.•Add Events, Photos, and Promotions to the Facebook page so your fans and followers know what's going on.• Display key details for the business, like location, directions, and hours of operations.

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Advertise on Facebook

•Reach over 300 Million active Facebook users• Attach social actions to ads to increase relevance• Advertise “Put A Cork In It” Facebook page, events, or actual website•Can Pay Per Click•Track progress with real-time reporting•Gain market insight about who’s clicking on ad

Example of Facebook Advertisement Success

Over 12 months, CM Photographics generated nearly $40,000 in revenue directly from a $600 advertising investment on Facebook. Of the Facebook users who were directed to CM Photographics’ website from the ads, 60% became qualified leads and actively expressed interest in more information. (Facebook.com)

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Advertisement for Athens Post

• Cost for 3” by 6” Ad is $172.50

• A student ran newspaper, primarily read by college students so we promoted our College ID nights

• Accessible to over 23,000 including students and faculty

Athens News Advertisement•Cost for 3” by 5” Ad is $158.00• Local Newspaper distributed to community members in 350 locations, so we promoted our wine tastings since the viewers of this paper are primarily older viewers. • Reaches 18,000 views throughout Athens County

Put A Cork In It- Wine Bar

Location: 434 West Union Street

Services: Large wine selection, Small entrees & Appetizers, and other beverages

Upcoming Events: On 2nd Friday of every month college students can receive 20% off their entire bill just by showing their student ID

Put A Cork In It- Wine Bar


Services: Large wine selection, Small entrees & Appetizers, and other beverages

Upcoming Events: On 1st Friday of every month we have wine tastings which have tickets $30 each or $50 per couple.

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Customer Signs Up For Preferred Customer Program• Either online on our website• Or at our location

Customer Fills Out Information• Name, Address, Cell Phone Number, Email, Birth date, Favorite Wines

& Foods, Interests, Suggestions, Affiliation with Ohio University• Information is entered into CRM database software which can manage

the emails, group customers according to interests, and allow customers to communicate easily with owners.

Customers receive frequent notifications • Emails about promotional events, such as wine tastings, will keep

customers updated with times and details about events• Customers benefit from being on preferred customer list because

once a month an email will be randomly selected to receive a coupon for a discount on various menu items.

Customer Relationship Management

Benefits of implementing CRM• Improved communication between owner and customer builds a relationship that makes the customer feel valued because their suggestions and comments are taken into consideration to improve customer service. • Customers will bring in more business by suggesting friends and family dine at the restaurant to increase business

Introduction

Industry Analysis

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Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion

Introduction to Business Plan

Our Business Plan for Put A Cork In It was well planned and developed to assure the success of this business venture. Our plan entails:

• Menu

• Wine Selection

• Wine Distributors

• Pricing Strategies

• Exterior and Interior Designs

• Operational Plan

• Employee Personnel & Operation Specifications

By following our set business plan the business will be able to carry out day to day operations as well as plan for future operations.



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Menu

At “Put A Cork In It” you’ll find a selection of homemade small plates. Order a couple to share with a group of friends or order a few to explore new tastes for yourself and a loved one. We pair our wonderful dishes, soups , salads, and sandwiches with wonderful tasting wines to offer an exquisite dining and social environment. Finish your experience with a taste of our wonderful gourmet desserts.

Cheese & Charcuterie

Soups, Sandwiches, Salads

Signature Small Plates

Desserts

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Cheese & Charcuterie

Pick 3, 5,7 Selections- Seasonal Artisanal Cheeses- CharcuterieGenoa Salami, Gentile Salami, Prosciutto d’Parma, Salami Toscana

Accompaniments -Imported Olives, Olive Tapenade, Sun-Dried Tomatoes, Peperoncinis

Served With Freshly Baked Artisan Breads

Salads, Soups, Sandwiches

House Salad- Crisp greens, Spring mix, Hearts of Palm, Kalamata olives, Locally grown tomatoes and freshly roasted pine nuts , tossed with a citrus herb vinaigrette. Cesar Salad – Romaine Lettuce , Parmesan & Asiago Cheese, Homemade Garlic Sourdough Croutons.Greek Salad- Feta, Tomato, Onion, Olives, Garbanzo Beans, and Pepperoncinis with Homemade Vinaigrette.

Crab & Corn Chowder- A flavorful chowder with Lump Crab, Andouille Sausage, and locally grown Sweet CornSummer Tomato & Basil- Classic favorite with Garlic and locally grown BasilCreamy Baked Potato Soup - Topped with Applewood Smoked Bacon, Cheddar Cheese, and ChivesWhite Asparagus- A Organic Vegetarian Soup Garnished with Homemade Garlic Sourdough CroutonsFrench Onion- Caramelized Onions simmered in our Homemade Broth topped with melted MozzarellaTortilla Soup - Cheddar Cheese, Cilantro, Chicken, Topped with Crispy Tortilla Strips

Chicken Club Sandwich- Grilled Chicken Breast, Applewood Smoked Bacon, Lettuce, Tomato and Stone Ground Mustard Sauce on a Freshly Baked Artisan Bread.Tenderloin Steak Sandwich- Locally Braised Tenderloin prepared medium rare, served with Caramelized Onions and Blue Cheese Sauce.Tuscan PLT Panini - Oven Roasted Prosciutto d’Parma, Lettuce, Tomato, and Sauce.

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Signature Small Plates

Meatballs – 2 Homemade Meatballs made with Grandma’s secret recipe.Tomato Mozzarella Salad – Locally grown Tomatoes, Garlic, Balsamic Vinegar, Olive Oil and Fresh Mozzarella Calamari – Breaded in a Spicy Pepper Blend Garlic Roasted Hummus - Homemade served with Italian Tomato Salsa and Pita ChipsCrab Stuffed Portobello - Roasted Portobello Mushrooms stuffed with Crab meat, Cheese, and Breadcrumbs. Crab Cakes - Served with Creole Aioli and ArugulaTuscan Quesadilla- Locally Grown Tomatoes ,Oregano, Basil, Roasted Garlic, Mushroom, Spinach, Three Cheese Mix, served with Marinara SauceFlatbreads- Choose From Prosciutto and Fig , Steak and Mushroom , Tomato Bruschetta

Desserts

Crème Brulee Trio - Classic, Dulce de Leche and Raspberry Vanilla Carmel Pecan Turtle Cheesecake - Pecan Brownie and Caramel Swirl Cheesecake, Topped with Caramel Turtle Pecans and Chocolate.Apple Cobbler- Cinnamon and Caramel Apples with a Butter Crunch topping,served warm with Vanilla Bean Ice CreamChocolate Truffle Cake- Raspberry Sauce, Dark Chocolate Sauce, Sweet CreamSeasonal Berries – Served with choice of fresh whipped cream, Shortcake, or Sorbet.Chocolate Fondue – For 2 or 4 , Served with Fresh Fruit, Biscotti, and S’Mores.Biscotti- Order of 3, White Chocolate, Almond Crunch, and Chocolate Cherry

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Wine Selections The variety of our selection of wines will be based on Mr. Cook’s knowledge of wine, our target market, and our budget. After the wine bar has been in operation for a year or two the Cook’s will be able to base their selection off of the most popular wines sold and off customer feedback. To start off with it is important for Put A Cork In It to have a wide variety of inventory. The categories for wine include:

Light White Wines which include

• Pinot Grigios and Sauvignon Blancs

Sweet White Wines

• Most popular being Rieslings

Blush Wines which have a lightly sweet and tart taste:

• Such as White Zinfandel

Light to Medium Red Wines which include:

• Pinot Noir and Merlot

Strong Red Wines which include:

• Cabernet and Zinfandel

Dessert Wines are lighter sparkling wines

• Including champagne wines.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



33

Wine Selection

Each category of wine can be purchased from various brands offered by distributors. Various brands from each category are offered by the Glazer distribution company which operates out of Columbus, which Mr. Cook is familiar with. Another prominent distributor out of Columbus is Heidelberg, and after opening for operation more distributors will make themselves known to the wine bar to increase their business.

Through these distributing companies, Put A Cork In It should also offer a small selection of beers. Based on the rural setting and our target market, offering beverages which are less expensive and less sophisticated, such as beer, is important. These beers could include craft beers such as Great Lakes or Samuel Adams.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



34

Pricing Strategies

Our pricing strategy would be based on a mark-up strategy.

A markup is defined as the amount that a seller of goods or services chargers over and above the total cost of delivering its product or service in order to make a desired profit.

The equation used for this is Cost x Markup + Cost = Selling price.

Markups must be sizable enough to cover all anticipated business expenses and reductions, such as markdowns, stock shortages, and employee and customer discounts, and still provide the business with a good profit.

A good markup suggestion guideline is as follows:Beer – 2 ½ to 3 Times the CostWine by the Glass – 3 to 4 Times the CostCarafe Wine – 2 ½ to 3 Times the CostDessert Wine – 2 to 2 ½ Times the Cost

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



35

Pricing Strategies

Our pricing strategy will also be efficient and rather simple, in order for it to be easier for the employees and customers a like. When it comes to pricing it is also a good strategy to price by the quarter. Having prices ending in .00, .25, .50 and . 75 is an effective pricing strategy to keep it easier for bartenders, customers and workers to add up mentally and therefore it is more efficient.

Based on our primary research from the local wine shop, Bella Vino the average markup on wine is 33%. If purchasing a bottle around the desired price Mr. Cook looked to purchase, $10-$15, a $12 bottle would be $15.96 which is rounded to $16.00. The average amount of glasses per bottle is 4 so each glass in this case would cost $4 and if the customer wanted to purchase the entire bottle it would be $16.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



36


This commercial property offers a great location on West Union Street in Athens, Ohio. West Union is one of the city’s most trafficked roads and this highly-visible location offers a great spot for a business. This 2400 square foot building comes with newer heating and cooling systems, good parking, handicap accessible entrances, and bathrooms that make this property a move-in ready opportunity.

We believe that this location and building offer what is needed to operate a wine bar in Athens. This property is located in the most lenient type of zone which means it can easily be converted into a wine bar/restaurant. The 2400 square foot building provides the space needed to have a small kitchen and have the space for the bar area.

Cost: $179,000

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



37

Location Structure Layout

Outdoor Dining Deck 15’x20’3 Tables

Lights/ Umbrellas

3BoothsSeats Between 2-4 People

2 Large Sharing TablesSeats Between

6-8 People

KitchenFully EquippedStorage Space

20’ x 17’

Bar40’ x 8’

Overhead Glass StorageUnder Counter Wine Storage

Around 15-18 Seats

BathroomsMale & Female

Sink & Toilet3.5’ x 7’

7 Small TablesSeats 1-2 People

The current structure of the location is set up for an office building. This is the recommended seating arrangement for “Put A Cork In It”. We purpose adding a bar, small tables, large sharing tables, booths, and a outdoor dining deck.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



38

Location- Proposed Exterior ChangesThe exterior of this building needs a makeover. Currently, the building has a blue

colored siding that needs to be changed to better fit the style of this business. This would be changed to having stone panels run the length of the building and extending up to meet the bottom of the windows. From where the stone ends and upward will be covered by white siding.

Estimated Cost: $5000-$6500 Estimated Cost: $2000

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



39

Location- Proposed Exterior Changes

The left side of this building offers what we believe to be a great opportunity to add on a deck. There are two windows that could be knocked out and replaced with sliding glass doors. These doors will lead out on to the deck that will be approximately 15ft x 20ft. The deck will be furnished without outdoor tables and chairs along with appropriate lighting so that our customers may enjoy their experience outside if so desired.

4-5 tablesCost: $800-$1000

8-10 ChairsCost: $1000-$1250

Deck Cost: $5000-$7000Lighting Cost: 164ft of white LED rope lights- $400

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



40

Location- Interior: Kitchen

Along with serving wine, we find it in the businesses best interest to serve food on a small scale as well. Serving food requires that we designate a part of the building for a small kitchen.

Total Kitchen Appliance Cost: $10,800

• Dual section reach in refrigerator• Work station with under storage refrigeration

• Multi-compartment sink• Range with burners and standard oven

• Counter-top dual deep fryer• Dishwasher

• Commercial Microwave

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



41

Location- Interior: Dining RoomThe dining room area will be roughly 1,800 Square feet , consisting of a few group tables and many two to four person tables. All of the tables and chairs will be high, as well as the bar stools. The lighting will be dim, matching that of the image below. There will also be a few booths for a more comfortable and intimate setting, located perpendicular to the bar itself.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



42

Location- Interior: Proposed Floor and Wall PlansThe flooring will be a choice of the two hard woods listed below with a combination of one of the three paint colors. We will have a white trim along the bottom wall to add beauty and sophistication to the room.

Churchill Hotel Ecru

White Clay

Castle Patch

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



43

Location- Interior: Dining Room Furniture

The dining room will consists of all high tables that have a more modern feel to them. Most of the tables will be for either two to four people which creates a more intimate setting. Also, we will have a few large tables so that people can enjoy the night with a group of friends.

Black tall Bar Stool: IKEA $99

Modern Wenge Bar Table with a middle frosted glass.

$595

Black Double Booth390.00 Each (2)

Black Single Booth250.00 Each (2)

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



44

Location- Interior: Dining RoomWe will use aesthetics to add to the intimate feel of our wine bar by using curtains

and drapery throughout the venue. We will also have a candle set on each table and wall paintings so that we are able to dim the lights and create a relaxing atmosphere for our customers to come and unwind after a long day of work.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



45

Operational Plan: Production Methods

As a business operating in Athens, Ohio we believe that obtaining as much of the food products as possible from the Athens Farmers Market is a great way to help the local economy, while providing the restaurant with fresh, delicious ingredients.

The value of knowing where our food comes from is of great importance to us as well as our consumers.

Using the Athens Farmers Market as the main supplier of our food and ingredients allows for support of the local community, and a great way to integrate the company throughout Athens.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



46

Operational Plan

Location: 434 West Union Street Athens, Ohio 45701

Location: The site that we have chosen for this location provides an existing building. The building that is in place has been used in the past as an office building, but still holds what we believe is necessary to convert it into a wine bar.

Needs for the Location: Since the building was last used as an office building, there is definite remodeling that needs to be done:

• Knock out dividing walls inside the building• Add wall needed to divide the kitchen from the bar area• Provide proper equipment and structures to operate a functional kitchen• Purchase all of the furniture and amenities for a proper bar area• Install desired flooring and lighting through out the building• Make recommended changes to the external siding of the building• Add on a deck to the side of the building and acquire the proper furniture and lighting• Acquire proper licensing and zoning regulations to be converted into a wine bar

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



47

Operational Plan: Legal Environment

Liquor License in Athens, Ohio: Currently obtaining a liquor license in Athens may prove to be a difficult task because the county is currently over the limit for licenses allowed.

To operate a wine bar in Athens, a liquor license must be obtained. The specific license that is needed for this type of bar is a D-2 Permit. The cost of this permit is $564 per year along with a $100 application fee.

Problems: -Need an additional 2,000 people to the Athens population for a new license to be created

-Waiting list for a liquor license has been occupied since 1982-Possibility of purchasing a license from a surrounding county, but the proposed business must prove that

they will provide an economic benefit to the area they are bringing the license

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



48

Operational PlanZoning:

The zone that our potential business site is located in is specified as a B-3 zone. This type of zone is the most lenient, and allows for almost any type of business.

Permit:

To officially change the site from an office building to a wine bar, the owners need to obtain a “Use Permit” through the Ohio Code Enforcement that will allow for the transformation.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



49

Operational Plan: Personnel

Mr. and Mrs. Cook want to be the sole owners and operators of “Put A Cork In It” wine bar. They will be responsible for all aspects that are involved in the operation of a small business including:

• Managing the company’s finances and operations• Ordering and keeping track of inventory• Cooking, bartending, and serving• Function as the only employees of their business

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



50

Operational Plan: Personnel Recommendation

To ensure the success of this business along with high customer satisfaction, having just two employees is not a viable option. With a functioning kitchen, bar, numerous tables, and an outdoor deck area there is a definite need to hire at least two more employees to help with the operation of this business. These employees can be paid normal waiter/waitress wages plus tips, and provide a great benefit to the overall effectiveness of business operations.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



51

Operational Plan: Hours of Operation and Seasonal Operation

Hours of Operation:-Put A Cork In It will open Tuesday through Sunday starting at 5:00 pm and

remain open until 1:00 am…-Reservations are recommended but not required…

-The dress code is casual…-We offer a modern, fun, and welcoming atmosphere

Seasonal Operations: -Athens is a college town, that requires businesses to adapt to the schedule of the university. During the times that school is in session we predict to have no

problem running our normal hours as listed above.-It is times such as Winter Intersession and Summer break when we feel that

the hours of operation may need to change to allow for the most success.-While our target market of professors, grad students, and older members of the Athens community may not decrease as much as the student population during these times, we still believe that business will have quite a substantial

drop off.

Seasonal Hours of Operation:-Put A Cork In It will open Thursday through Sunday starting at 5:00 pm and

remain open until 1:00 am.

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



52

Financial Analysis

Our Financial Analysis Includes:• Start-Up Expenses…………………………………………………………… See Appendix D • Balance Sheets (Opening Day to Year 3)…………………………… See Appendix E• Sales Forecast (12 Month)………………………………………………… See Appendix F• Income Statement/ Profit-Loss Projection (3 Years)…………. See Appendix G• Break Even Analysis………………………………………………………….. See Appendix H• Loan Amortization……………………………………………………………. See Appendix I

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



53

Financial Analysis

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



3 Green Months = Busiest Sales Months5 Black Months = Moderate Sales Months4 Red Months = Slow Sales Months

Busiest Sales: ($27,200 per Month)80 Glasses A Day @ Avg $ of 6.00 20 Bottles A Day @ Avg $ of 20.0040 Plates A Day @ Avg $ of 12.00

Moderate Sales:($19,200 per Month)60 Glasses A Day @ Avg $ of 6.00 12 Bottles A Day @ Avg $ of 20.0030 Plates A Day @ Avg $ of 12.00

Slow Sales:($9,600 per Month)30 Glasses A Day @ Avg $ of 6.00 6 Bottles A Day @ Avg $ of 20.0015 Plates A Day @ Avg $ of 12.00

The financials are based off a $500,000 loan with an interest rate of 6.5% and a down payment of $50,000.

Start-Up Expenses: $265,850

Sales Forecast: Projected 1st Year Sales: $216,000Projected 2nd Year Sales: $226,800 (Increase of 5%)Projected 3rd Year Sales: $244,944 (Increase of 8%)

Break-Even Sales Level = $121,346

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Conclusion

Introduction

Industry Analysis

Business Plan

Financials

Marketing Analysis

Conclusion



The purpose of this report was to determine the best potential opportunity for a new business venture it the Athens community. A feasibility analysis was conducted for the potential operation of a wine bar. After extensive research and planning we provided an industry analysis, marketing analysis, business plan, and projected financial statements for our clients to examine.

It is our recommendation to the client that if the information provided in this report caters to their wants and needs, that they take the appropriate actions to make this possibility a reality.

55

References

Athens County Auditor. 2007. “Data for Parcel A027270000900”. Retrieved from <http://www.athenscountyauditor.org/Data.aspx?ParcelID=A027270000900>. Athens County Visitors Guide. Media Brite. Web. 11 Nov. 2009. Retrieved from <http://www.athensohio.com/whattodo/index.php?page=32&item=16>. Athens Farmers Market. Web. 11 Nov. 2009. Retrieved from <http://www.athensfarmersmarket.org/>. Athens Ohio Real Estate. 2009. “434 West Union Street, Athens”. Retrieved from <http://www.athensohiorealestate.com/iview.php?pID=12460> Bella Vino Wine Shop. 2009. Web. 11 Nov. 2009. Retrieved from <http://www.bellavinoathens.com/>. Chamberlain, Russel. Telephone Interview. 2 November 2009. Cheers On-Premise Handbook,2009. Cheers OnTrac Bar Managers Controlling liquor, wine & beverage costs. Google Books. 11 Nov. 2009Retrieved from <http://books.google.com/books?id=JBQhwX-zfDoC&>. Cost Helper. 2009. “Cost of a Deck”. Retrieved from <http://www.costhelper.com/cost/home-garden/deck.html> Department of Commerce. 2009. “Division of Liquor Control”. Retrieved from <http://www.com.ohio.gov/liqr/permitclasses.aspx> Exterior Portfolio.Web. 11 Nov. 2009. Retrieved from <http://www.exteriorportfolio.com/EP/Dream/Visualizer/index.aspx> Facebook Home. Web. 11 Nov. 2009. Retrieved from <www.facebook.com>. Faux Panels. 2009. “Carlton Cobblestone Faux Panels”. Retrieved from <http://www.fauxpanels.com/carlton-stone/styles-cobblestone.php?color=91>

56

References

Glazer’FamilyCompanies. 11 Nov. 2009. Retrieved from <http://www.glazers.com/Glazers/contentController.nonsecure?contentMenu>. Heidelburg Distributing Company. 11 Nov. 2009. Retrieved from < http://www.heidelbergdistributing.com/>. Ikea Home. Inner Ikea System. Web. 11 Nov. 2009. Retrieved from <http://www.ikea.com/us/en/>. Katom Restaurant Supply. 2009. “Restaurant Equipment”. Retrieved from <http://www.katom.com/restaurant-equipment.html> Margin or Markup? Wine & Liquor Pricing Strategies. 11 Nov. 2009. Retrieved from <http://www.dribbleworld.com/dribblethoughts/margin-or-markup-liquor-pricing-strategies/>. New Strategist Editors. Whose Buying. 4th ed. Ithica: New Strategist. Print. Old House Web. 2008. “Estimated Remodeling and Repair Costs”. Retrieved from <http://www.oldhouseweb.com/how-to-advice/estimated-remodeling-and-repair-costs.shtml> Professional’s Source. 2009. “JBL Wall Mount System”. Retrieved from <http://www.bhphotovideo.com/bnh/controller/home?O=&>Quick MBA. Strategic Management, 2007. Web. 10 Nov. 2009. Retrieved from <http://www.quickmba.com/strategy/porter.shtml>. Quick MBA. Strategic Management, 2007. Web. 11 Nov. 2009. Retrieved from <http://www.quickmba.com/strategy/swot/>. Selling Wine: Most People Don't Prefer Wine in the Bottle, They Prefer It in a Glass. Restaurant Owner. 11 Nov. 2009. Retrieved from <http://www.restaurantowner.com/public/381.cfm>. The Athens News. 2009. “Athens News Advertising Consultants. Retrieved from <http://www.athensnews.com/>.

57

References

The Post. 2009. Retrieved from < http://www.thepost.ohiou.edu/>. US Census Bureau. U.S. Department of Commerce. Web. 11 Nov. 2009. Retrieved from <http://www.census.gov/>. Wicks and Sticks Home Page. Web. 11 Nov. 2009. Retrieved from <http://wicksandsticks.org/>. Wine and Spirits Industry Marketing Handbook, 2004. Adams Beverage Group. Print. Zoe's Restaurant. Web. 11 Nov. 2009. Retrieved from <http://www.zoefinedining.com/>.

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Appendix A - College ID Night

59

Appendix B – Wines Around the World

60

Appendix C – Wine Tasting Event

61

Appendix D – Startup Expenses

62

Appendix E – Balance Sheets

63

Appendix F – Sales Forecast

Green Months = Busiest Sales MonthsBlack Months = Moderate Sales MonthsRed Months = Slow Sales Months

Busiest Sales: ($27,200 per Month)80 Glasses A Day @ Avg $ of 6.00 20 Bottles A Day @ Avg $ of 20.0040 Plates A Day @ Avg $ of 12.00

Moderate Sales:($19,200 per Month)60 Glasses A Day @ Avg $ of 6.00 12 Bottles A Day @ Avg $ of 20.0030 Plates A Day @ Avg $ of 12.00

Slow Sales:($9,600 per Month)30 Glasses A Day @ Avg $ of 6.00 6 Bottles A Day @ Avg $ of 20.0015 Plates A Day @ Avg $ of 12.00

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Appendix G – Income Statements

We predict that sales will increase by 5% from Fiscal Year 1 to Year 2. We also predict a increase of 8% from Year 2 to Year 3.

We predict increases in the following operating expenses:

Payroll- The addition of one employee each year stopping at Year 5.Wage $3.65, Hours A Week =30

Advertising- With the growing popularity we will expect the additions of $500 a year in advertising expenses

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Appendix H – Breakeven Analysis

66

Appendix I – Loan Amortization