A one-of-a-kind karaoke bar

located on the Main Line

Maggie Dobesh, Steph Cheung, Blake Bellucci, Christine Lafferty

Mission Statement & Strategy“We seek to bring a unique karaoke experience to

the Main Line to be enjoyed by those of all ages.

We strive to ensure that our guests receive

extraordinary and timely service in clean,

comfortable premises. Accordingly, our goal is to

ensure that all guests and staff are treated with the

respect and dignity they deserve. By maintaining

these objectives, we will be assured of a fair profit

that will allow us to contribute to the community we

serve.”

• Fun and unique karaoke bar

• Flexible premises

• Large variety of food and drink offerings

Market Analysis

Main Line

Montgomery County

Bryn Mawr

Target Market

Demographics

Population Age Bryn Mawr Median Income

2010 Bryn Mawr Population %

Montgomery County Median Income 2010

Montgomery County

Population %

< 25 $8,333 (Very Low) 53.10% $32,960 (Near Average) 30.70%

25 - 44 $41,932 (Low) 22.50% $83,947 (Very High) 22.50%

45 - 64 $70,223 (High) 15.80% $94,092 (Very High) 15.80%

> 64 $54,250 (Very High) 10.70% $43,088 (Very High) 10.70%

Total $ 3,799.00 $ 699,874.00

Environmental Scanning

• Competitor: Main Line Karaoke

• The only “destination” karaoke bar

• Opportunities on the Main Line

Z z z. . .

Core Competencies & Core Processes • Facilities • Systems & technologyCore

Competencies

• Supplier relationship• Order fulfillment• Customer relationship

Core Processes

SWOT AnalysisStrengths•Plenty of Universities

•New Innovative Idea•Draw for all ages

Weaknesses•New unknown company

•Maybe people don’t like karaoke

Threats•Mainline Karaoke•Other more established bars promotions taking our customer base

Opportunities•Creating weekly events catered to various demographics

•Being a draw for regulars and special events

Product Offerings

Mixed drinks Beer Non-alcoholic beverages

Wine

With complimentary….Peanuts!

Popcorn!

Service Offerings

Contracts with various restaurants through Seamless.com

A karaoke experience that is unique to the

Main Line!

Layout of Main Floor

Operations Strategy

• Structure of Process• Customer Involvement • Resource Flexibility• Capital Intensity

Supply Chain Model• Responsive & Flexible Supply Chain - Drinks

o Customize drinkso Utilize top-notch ingredientso Keep drink menu fresh

• Quality of Supplierso Fresh Fruit

• Service Oriented - Karaoke o DJ sound systemo Projection screen with lyricso Microphoneso Song selection software

Quality Strategy: TQM● Aligning with characteristics of

outputs and customer expectations

● Dependency on ○ Personnel○ Karaoke Equipment

Quality Control

Quality of Inputs

• Inspection and testing of each tablet/software purchase

• Prescreen vendors

Quality of Products

• Technologically trained staff

• Statistical process control: performance measurement

Forecasting Customer Demand• Lack of historical data → Judgement forecast

Forecasting Product Demand First floor (main bar area):

80 people maximum

Second floor (4 private party rooms):

2 rooms for 5-20 people

2 rooms for 20-40 people

Future Forecasting Techniques •Historical data

•Four methods: 3-week moving average, 3-week weighted average, exponential smoothing, and trend projection with regression

•Moving forward, key focus on trend projection

Management of Potential Queues

• Private room reservations

• Open main bar area

• One drink minimum

• Food delivery

• First-in-first-out discipline

Costs & Expenses: Start-UpExpenditure Cost

Construction & customization $100,000

Equipment and furniture $450,000

Point of Sale system $15,000

Initial advertising $44,000

License $8,103

Operating inventory & supplies $25,000

First month’s rent & security deposit

$10,120

Total $452,223

Costs & Expenses: Annual FixedExpenditure Cost

Managers’ salaries $80,000

Utilities $10,029

Property tax $3,000

Insurance $7,000

License $222

Legal & accounting $11,000

Annual rent $60,720

BMI & ASCAP Music Licenses $2,000

Total $171,971

Costs & Expenses: Variable

Expenditure Percent of Sales

Annual variable cost 30%

Cost of goods sold (drinks)

50%

Credit card charges 2%

Costs & Expenses: Additional

• Depreciation

• Maintenance & replacement costs

• Interest

• Waste

Thank You