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The Gaol Pty Ltd
Prepared by: Gary and Calum McClure, Don Culvenor and Trevor Butcher Date: Aug 2017 Version: Rev B
BUSINESS PLAN -‐ 2017
1 Business overview
1.1 Introductory information 1.1.1 Foundation details
Structure A Company Limited by Shares
Established 26 October 2012
Date registered 26 October 2012
Registration number ABN 89 160 963 360
1.1.2 Contact details
Contact name Gary McClure
Phone 03 54706222
Mobile 0419 55 2425
Email [email protected]
Address 36 – 48 Bowden St Castlemaine 3450
Website www.oldcastlemainegaol.com.au
1.1.3 Social media details
Social media site Address
www.facebook.com/OldCastlemaineGaol
www.instagram/OCGEvents
1.2 Business summary Summarise the history of your business and how the idea developed. What are your business’s core values and what are you broadly looking to achieve? Outline your previous experience in this sector and in management.
The Old Castlemaine Gaol was purchased by a consortium of three local families with the intention of developing a business that will allow the long-‐term viability of the Gaol, while providing an improved community facility. One of the partner families has had a lease to operate the precinct as a café / venue including tours. The limitations of the buildings, infrastructure and services have meant that the existing business has reached its limits. These limits make the existing business barely viable and certainly don’t provide scope for any major renovations or repairs. The ‘Coffee and Cake ‘ model has been proved to be non-‐ viable as a standalone. The cafe started operation in 2015 in a small capacity and by 2016 was running at full capacity and bumping into the limitations of the building. An effort to increase the number of events being catered for was successful. By 2017 the use as a venue grew, but once again limitations have capped the potential. The figures show the potential for revenue and profit growth is there, but require an expanded and modern facility to be produced. Growth of income and enquiry is in the Function Centre / Performance area. Due to its distance from the town centre limiting casual trade, the location needs to be seen as a ‘destination ‘. The redevelopment plans proposed provide for this, while having minimal impact on the historic values of the building.
1.3 Business goals and objectives What business goals and objectives have you set for the coming year? What are your longer-‐term goals? Are they SMART – specific, measureable, attainable, realistic and time-‐bound?
Short-‐term goals: Year 1 Actions required Deadline Responsibility
Planning permit obtained for redevelopment
Directors
Continued venue operation and business growth
Leaseholders
Long-‐term goals: Years 1-‐3 Actions required Deadline Responsibility
Construction of Facility and renovation of buildings
Directors
Operation of existing business around redevelopment
Leaseholders
1.4 Current business position Which stage of the business life-‐cycle are your business and industry sector currently in – emerging, growing, maturing or declining? Are you expanding, consolidating or preparing to sell?
As above, the current business position is growing, but limited by the building’s capacity to provide a desirable, year-‐round venue at a scale that is sustainable. The growth required to provide improved revenue and profit is unattainable as is. The planned development of accommodation will add to the long-‐term success of any business operating. The ability to provide a package of experiences to customers will increase patronage. There is currently very little top end accommodation in the area.
2 Structures and resources 2.1 Organisational structure Include the number of employees, the management team and founders. If there are multiple business entities describe how they integrate together. You could also include a chart if this would help. The property ownership structure is a Company with three family groups equal shareholders. The business (OCG) is run through another Company (Malcolm Mcclure PTY LTD) as leaseholder. The Leaseholder (OCG) is a company operated by one of the family shareholders where there is close co-‐operation and support. Construction Costs for the proposed redevelopment are approx. $4.5 Mill. The rental return should be $300k. The current leaseholder (one of the Consortium Partners) is keen to pursue the opportunity. The costs are planned to come from a mix of -‐ Business Loans – 50% Directors Contribution – 40% Govt Grants 10% An Incorporated Community based body, The Old Castlemaine Gaol Preservation Society, has been established to continue the work on the development of the restoration, research and expansion of the historic collections and displays in the Gaol and spreading the knowledge through expansion of existing tours, re-‐enactments, open days etc.
2.2 Key staff, advisors and mentors Who are the people in your business that you can’t survive without? What skills, attributes, qualifications and knowledge do they have to help you with your industry, product or service?
Key staff and advisors Role Skills, attributes, experience
Gary McClure Director of The Gaol Pty Ltd
Civil Engineer with extensive experience in business and
project management, property development and business
ownership.
Trevor Butcher Director of The Gaol Pty Ltd
Licensed Commercial Builder, property developer, owner and operator of many businesses, actively involved in community
and Church groups.
Don Culvenor Director of The Gaol Pty Ltd
Many years’ experience as a business owner & operator and
property developer. Actively involved in community
development.
Calum McClure Manager of Old Castlemaine Gaol
Experience in Event Management and Production
Services
Gayle McClure Event Manager Experience in Arts Management
and Retail Management
Lyndal McClure Event and Tour Coordinator School Teacher for over 40
years years, reaching the level of principal and staff mentor.
Christine Sayer Historical Researcher
Extensive research experience having recently completed a
PHD. Professional photographer.
Fi Cotter Planning Consultant Extensive Planning experience
3 Business operations 3.1 Products and services
Categories Details
Products/services Give an overview of exactly what you’ll be selling.
The Café/Restaurant sells a coffee, food and beverage. The event business conducts Historical and Ghost Tours through the Old Gaol, Music Events and can cater for functions such as Wedding and Conferences.
Distribution Do you sell direct, or through a wholesaler? Do you sell by retail store, phone or website? Do you use salespeople, agents or distributors?
The Old Castlemaine Gaol uses our website -‐ www.oldcastlemainegaol.com.au and facebook page: www.facebook.com/OldCastlemaineGaol as the principle form of news and event promotion. We advertise widely in the local press and tourism magazines.
Pricing How do you price your products and services? What is your profit margin and how have you set it? Are your customers price-‐sensitive?
Café/Restaurant pricing is in the middle upper part of the market it’s not a fast food but it’s also not a 5 star hatted restaurant. With the Functions and Conference and weddings we want to provide the highest quality of service but still be able to tailor cost to the client’s needs.
Future growth How do you plan to increase your business’s capabilities and capacity? Why are you confident this growth will be sustainable?
We want to add accommodation to the mix as well as a new stunning function venue that helps staff streamline, improve and speed up the service and goods as well as increase the maximum number of patrons.
Payment What are your payment terms? How do customers pay you? What strategies, processes, systems and people do you have in place to facilitate this? What does it cost you?
Cash, EFTPOS, Check and money transfer. The café customers pay either on demand or after the table service is completed. The theatre events use “trybooking” service for the purchase of seats for ticketed events while the function clients are issued with an invoice after the function with usually a 7 day payment period.
Production How will you produce these products or services?
All the catering for events is performed onsite by our very professional and well respected chef and kitchen staff. We intentionally use and promote local food and beverage products which are easily and readily obtained on demand.
3.2 Key suppliers and customers Which suppliers and customers are critical to your business? What impact would a supply interruption have? Do you have customers or distributors that generate a significant amount of your sales?
Customer/Supplier Terms offered Why critical How risk of loss is managed
Castlemaine Produce
30 days Can exceed an annual turnover of $100,000.
Alternative suppliers are available.
Impos Cash Management and Service System
Leased
Connects the customer service staff to the barista, kitchen and bar staff in a
timely manner
The same work would need to be done on paper using docket books requiring
additional staff.
Holgate Brewery Direct Debit Principle Bar supplier Alternative local suppliers
are available.
Customers
Due to its distance from the town centre limiting casual trade, the location needs to
be seen as a ‘destination ‘. Most of our customers are tourist who include a tour of the gaol in
their visit.
Critical to continue to develop and promote the
tourism and function centre area of the business and promote this facility as a must see and experience during the visit to the area.
The expansion of the business is limited by the building layout and form.
Customers/ Theatre Trybooking/Door Sales
Castlemaine has a strong reputation for the provision of great performance and festival events products derived from the long
established Castlemaine State Festival
We hope to build on this by providing similarly good quality events and theatre
with well known and respected performers. The risk is encouraging them to Castlemaine at affordable
costs to consumers.
Mount Alexander Shire Council
Good Support but qualified by the responsibility of being the adjudicator.
They manage the difficult relationship between the Historical Limitations of the site, its Residential Zoning and the maximum business functionally and site use.
The Residential Zoning has the greatest risk with site closure if we exceed the
limits placed on site around traffic, noise and client
behaviour.
3.3 Business assets 3.3.1 Premises What premises does your business own or lease? Do you anticipate having to move or expand at some stage? Why, when and how will you do this?
Premises Purchase or lease date Price Lease/finance rates, conditions, options
Old Castlemaine Gaol
Freehold purchased in 2012.
$550,000
The purchase of the freehold of the Gaol has been fully paid for by the three
owners. The expansion of the facility is critical to the viability of the ongoing use of the Old Gaol as a restaurant/function
and conference centre
3.3.2 Assets and equipment List your key plant and business equipment including computers, software, vehicles and machinery.
Asset Purchase or lease
date Price
Lease/finance rates, conditions, options
Current usage level
Expected replacement date
The Café and Event Business has an extensive array of plant and equipment required to operate these facilities, see list attached
The equipment has been purchased over the time on an as needed basis.
$75000
The Impos sales system including software and
hardware system is the only piece of equipment leased.
All the other plant and equipment is owned
by the OCG.
Continually updated software.
3.3.3 Stock and inventory What is your production capacity and how much do you currently produce? What is your stock turnover? How do you store inventory and what does this cost? What are your future volume predictions?
The production capacity for food and beverage is principally linked to staff numbers and demand. We have the capacity to bring in additional casual staff for functions and events on demand, the number directly linked to the size and requirements of the event. The stock turnover for food and beverage is linked to the size, numbers of events and seasonal fluctuations in weather. We have sufficient cold storage cells to store a large range of goods, both food and beverage products.
3.3.4 Intellectual property How is your intellectual property protected? Give details of copyrights, licenses and patents. Intellectual property
to be protected Type of
protection Protection end date
Geography covered Conditions that apply
Café Menu
Limited to those products developed by the chef on site.
End of service by the current
chef.
3.4 Organisational resources 3.4.1 People Do your employees have the right skills to help you? How do you plan to develop and retain them?
Staff member Areas for development How they’ll be developed and retained
Chef
Fully qualified and well respected. Is young and provides good opportunity for professional development both locally and abroad.
Have engaged a local trainer and chef to mentor, particularly in the area of business and staff magement, food
costing and kitchen care and maintenance.
Business Manager
Has extensive experience in event management but needs additional professional development in business, hospitality and staff management.
Training and professional development is available locally and regionally for hospitably and business management. The general manger is available to
mentor and assist in the development and growth of the business.
General Manager Has extensive experience in business management
Is part owner of the business so has skin in the game to ensure the ongoing growth and success of the business.
Event Manager Has good experience in event management.
Training and professional development is available locally and regionally for
event management. Also close ties with local festival and community events for
mentoring and professional development.
3.4.2 Financial resources Do you have financial resources to meet your objectives or take advantage of opportunities? What facilities do you have in place for this?
Facility Provider Approved limits Current usage Conditions
Directors all have successful relationships with banks as well as private sources of funding.
All the directors have good long term relationships with various financial institutions to ensure timely and good fiscal offers are pursued.
To be determined.
The Old Castlemaine Gaol currently uses a Bendigo Bank facility for the everyday needs but also has NAB facilities available
if required.
3.4.3 E-‐commerce and technology How do you plan to use e-‐commerce and technology to help your business? How will you use it to lower costs, speed up your business, access new markets or increase sales? Will you sell products/services online?
Eftpos connected to our impos POS system. This is a modern, up to date, integrated system for cash sales and reporting, electronic banking, and café food and beverage service management. Daily reports are produced which can break down sales results for café, food, beverage, staff management and cash reporting and reconciliation.
3.4.4 Data and customer information How do you collect, store and use customer and stock information? Do you back this information up? How do you do this and how often? How long do you store data for and is it secure?
We use a Point of Sale system called IMPOS that records all daily transactions. This is linked to stock including food and beverage and cash reconciliation. Daily reports are produced, recorded by office staff and stored for future reference. The data is backed up daily on an external storage medium.
3.5 Risk management 3.5.1 Risk assessment What risks does your business face – for example, reduced demand, loss of major supplier/customer contract, interest rate changes, property damage, public liability, etc.
Risk Impact if it occurs – high, medium or low
How it’s managed
Regulatory High
The building currently complies with current usage, but is not fit for the current usage. The built infrastructure suitable for a prison makes complying with current commercial building and safety regulations very difficult and costly. The rules around access and egress impose problems when related to prison doors and Heritage Buildings. We cannot use some of the most desirable parts of the building ( eg lower old kitchen area).
Planning High
The Precinct is zoned residential and current usage required a permit. The current permit limits the scale of usage to non-‐viable. There is a current application (both associated with this Heritage Application and otherwise) to extend the hours and days of operation. If this is unsuccessful, then the only possible viable reuse for the precinct is as residential. We have very good relations with neighbours, but continued public open access to the grounds does cause stresses in that relationship.
Infrastructure High
The existing water, sewer, power infrastructure is continually requiring repair and maintenance and needs upgrading and is really not fit for purpose as a commercial building.
Social Medium
There is continued interest in the operation and future of The Gaol. We have been continually reassuring visitors and others that our ambition is to find a suitable long-‐term usage for the building that ensures its viability. But, with the outcome of that effort still undecided there is potential for renewed activity in the community space.
The current redevelopment plans will be publicly displayed at the Gaol. We remain open about the issues facing us.
Heritage High
The ability to provide a long-‐term solution to the reuse and preservation of the Gaol continues to provide food for thought. We have used the past three years of operations to try varied propositions to produce income, most of which have proved of limited long-‐term potential. A balance between restoration, preservation and reuse that satisfies all interests while being financially viable is difficult when the rural location, intrinsic value (particularly in the surrounding land) and the topography don’t lend themselves to maximising returns. Some compromises to all these ambitions and needs will be required.
Financial Medium
The building currently complies with current usage, but is old, in need of continual maintenance and is not fit for the current usage. The built infrastructure suitable for a prison makes complying with current commercial building and safety regulations very difficult and costly.
3.5.2 Succession planning If something happened to you or you didn’t want to run your business anymore, what would happen to it? Who would take over or buy it? How would you manage this process and how would you ensure your business continued to operate? Have you formally documented your plans?
The current business model of café, tourism and event and function centre is managed by Calum and Gayle McClure, the son and daughter-‐in-‐law of one of the gaol owners. They are young and enthusiastic and capable of running and expanding the business for some years to come. They are both financially and physically supported by the family of one of the owners. If this model fails to continue to be attractive to these operators, then the business could be offered for sale as a going concern. The location would be attractive to potential future operators.
3.5.3 Regulatory and legal considerations The Government (both Federal and State) and local councils will all have laws and regulations that you’ll have to comply with. List all the regulatory requirements for your industry and the steps you’ve taken to comply with them.
• Building – currently compliant after much maintenance and new work. • Planning – currently operating under a planning permit that has operating restrictions due to
the residential zoning that makes the business unviable (see above) • Health – Annual auditing of kitchen and café service facilities requires continual maintenance
and monitoring against food preparation regulations. We have had very little difficulty in complying with these regulations. The Business requires an annual certificate of renewal for the registration of a food premises.
• Heritage-‐ working through an application for Heritage approval to do works. • Business – Wage and Salary conditions are applicable to the hospitality industry (Restaurant
Industry Award 2010). While most of the staff are casual workers due to the flexibility and after hours’ work needed with this industry, the main staff in management and the kitchen (i.e. chef, café manger and business manager) are permanently contracted employees.
• Firewatch Bendigo conduct 6 monthly audits of all fire management devices in the Gaol. • Race Services Bendigo conduct annual audits of access and security lighting operation. • Liquor Licence – The Café/Restaurant business and the Event/Function Centre operations fall
under two separate annual liquor licenses. 1. The Restaurant and Café Licence subjects the operations and trading hours to conditions
under which the prominent activity carried out at all times must be the preparation and serving of meals and limits the maximum number of patrons to 70.
2. The On Premises Licence covers the function and event area of the premises (principally the Old Gaol) and relates to conditions which restricts activities to events that will not cause undue detriment to the amenity of the surrounding residential area. It limits the maximum number of patrons to 300. The licenses are very restrictive and require a high level of management and control of clients by staff to ensure compliance with state liquor control regulations. With good staff, we have had very little difficulty in complying with these regulations.
3. All staff are required to hold current RSA (Responsible Serving of Alcohol) certificates. • Waste Management is conducted by Cleanaway Bendigo for General Waste, Recyclables and
Cardboard waste. • EPA waste management (Grease Trap Waste) is covered by Butlers of Newstead and
monitored annually by Coliban Water.
3.5.4 Insurance All businesses require insurance to mitigate risk to your business. It’s important to get expert advice about the specific needs of your business. Some insurance policies, such as workers compensation, are required by law but you should ensure you’re covered against any significant risk.
Insurance type Details
Business Insurance
• WorkCover: Gallagher Bassett, Employer Number: 13817895
• Public and Products Liability -‐ $20,000,000 Insurer: Certain Underwriters at Lloyds of London. (100%) Managed by Miramar Underwriting Agency Pty Ltd
• Superannuation: Colonial First State Super • Business Insurance – Melbourne Insurance Brokers.
4 Market analysis and strategy 4.1 Market research Describe the current state of the market you are in/entering. How did you come to this finding? What research have you done for this and the methods you used. Explain your findings in terms of market size and outlook.
The Old Castlemaine Gaol business including the café and function centre operations have now been open for nearly 3 years. This has provided us with extensive records on the operation, viability and marketability of this business as a café, function and event centre and tourist venue. This period has allowed management to fine tune staffing levels and the business model, expand areas of the business that are successful and reduce hours and operating times (particularly through winter) when sales are slow or poor. The growth in the tourism sector has been significant so time and energy has been expended in this area and is still growing. The turnover from tourist engagement has more than doubled in the last 12 months which equates to over 2500 visitations. Mount Alexander Shire and Regional Tourism Victoria have shown an interest in assisting us in the development of this area of the Gaol operations. The growth in the event and function centre area has been gradual but the venue is now established in the district as a competent provider of quality shows and performances which is supported by good attendances and box office sales which in some instances have reached capacity audience numbers.
4.2 Opportunities in the market What is the market opportunity you’ve identified and is anyone else likely to exploit this gap?
The venue/ function centre growth and interest received from touring bands, groups etc has been significant. Having the venue being now recognised in the district as an important player in the local music and entertainment scene which is supported by good attendances and box office has been significant in the growth and development of the business and is now only limited by the scale of the areas we have available to work in and our planning permit conditions, both of which are an important part of this redevelopment. We value add to other businesses in town – V-‐Line, The Castlemaine State Festival, Buda and the Castlemaine Art Museum, Maldon Steam Railway Line, Old Mill and The Theatre Royal. We form part of an active new northern precinct including Mill, Maldon Steam Railway and Goods Shed development for the Castlemaine state Festival. This link will ensure the Gaol continues to be an active participant in the tourist traffic around the district.
• Currently there is no major wedding venue in Castlemaine and we hope the new development will fill this gap in the market.
• The addition of holiday units will contribute to fill the void with the lack of accommodation in Castlemaine
• We have discovered that there is a huge Interest in History of the Gaol. Prisoners held in this Gaol came from lots of different countries with many prisoners from china, particularly around the gold rush era. We hope to continue the exploration and research into the history of the Gaol, its inmates, Guards, Warders and Governors. We have interest from retired warders and inmates to tell their stories which we hope will become an active part of an event series in the gaol.
4.3 Target market and proposition Provide details about your product or service and how it will appeal to customers.
Value proposition What do you stand for in the market? What are you offering? Do you have a unique selling point?
The Old Castlemaine Gaol is one of the remaining, completely intact examples of The Pentonville style of Gaol in Australia. In remains largely intact from when it closed as a fully operational prison in 1990. Further research will hopefully offer more information about the livers of inmates and warders that will attract interest from the travelling public.
Who is your target market? Include demographics such as age, gender, geography and needs/wants.
The historical appeal of the Gaol will mainly interest visitors to Castlemaine. The Events are mainly targeted at baby boomers with blues, jazz, classical events proving very popular. Choral work and Tribute Shows have also been very popular.
What is the size and value of your target market? How did you arrive at these figures?
Gaol for Events and Performances: 240 – 300 Mess Hall for functions and conferences: 100 – 120 Café for food and beverage: 70 and with the expansion of the new building, we hope restaurant number to expand to 150.
What factors affect your target market’s spending habits? Is your sector seasonal or price-‐sensitive?
The current operations of the café are very seasonal, with the cold winter months proving to be slow with low visitor numbers. The school holidays always prove to be a busy period.
What is your competitive advantage? What are the reasons a customer would choose you over the competition?
The Old Castlemaine Gaol is a unique venue with an amazing view of the town and surrounds. We estimate the value of the views across Castlemaine to be the distinct competitive advantage this facility will offer old with a distinctive menu and décor!
4.4 Customer management Ask yourself the following questions relating to your target customers. Be specific and realistic.
How do you acquire new customers? Web page, Google, Facebook, Instagram, Travel shows, print media, word of mouth, Castlemaine Tourist Information Centre referral.
How many do you expect to acquire each year and over the following years?
• The Gov Café currently averages 450 -‐ 500 customers per week. We expect to double this figure to approx. 1000 café
customers per week. • We expect to triple the number of function centre
customers from an average of approx. 90 customers per week to 270 customers per week.
• We expect to increase the Tour visitors from approx. 70 per week to about 150 per week.
Why is your customer service model effective?
We have been able to modify our service, delivery and appeal of the Old Gaol over the two years of operation to enhance the experience and satisfaction of our customers.
How do you retain your most profitable customers?
Quality of Service and Making sure Events are produced well and make the punter feel like they are experiencing a unique event
How do you manage or move on customers you would prefer not to keep?
All customers are treated with respect. Replacement of a coffee or a meal is first offered to try and settle dissatisfaction, money back is
the second alternative if satisfaction is still not achieved and beyond that we follow up with an email to try and reach a compromise with the customer if this is still required.
4.5 SWOT analysis Identify your business’s internal Strengths, Weaknesses, and external Opportunities and Threats (SWOT).
Strengths within your business that provide advantage over competitors:
• Committed Owners/Lessors • 3 years of operation • Views/Location • Skin in the Game • Historic Old Gaol
Weaknesses within your business that place you at a disadvantage compared to others:
• Building Limitations, age of infrastructure. • Distance from Town. • Social damage from original sale process. • Historic overlay.
Opportunities outside your business that you could leverage to your advantage:
• Cooperation with other businesses. • Part of tourism hub. • International linkages, i.e. (develop Chinese
historical links)
Threats in the external environment that could cause trouble for the business:
• General Recession • Other business in town closing such as Don
KR or any of the large service authorities?
4.6 Strategic direction Use your SWOT analysis above to explain your choice of strategic direction. How do you plan to maximise your strengths and opportunities, and minimise your weaknesses and threats? Include definite action points that show you’ve turned your analysis into a practical plan of action.
• Improve the built infrastructure with a new building to enhance the experience? • Develop new attractions to ensure repeat visitation, i.e. tours, functions, escape rooms,
accommodation. • Maintain, improve or excel in providing a high standard of service. • Provide good value for money. • Capitalise on the view!
5 Financial analysis 5.1 Funding sources List all of the funding your business has received with details of amounts received and any debts still outstanding. The Gaol Pty Ltd -‐ The freehold title to the property was purchased with cash (no debt or borrowings) by the consortium partners with additional cash inputs over the years to pay for property repairs, maintenance, rates , insurance, development proposals, planning permits etc Leasehold Business-‐ The Gov Café and Function centre has been leased from the consortium partners for a nominal rental of $10000 per year. This will increase to an appropriate commercial rent upon completion of the build?
5.2 Current financial position and past performance How has your business performed against key financial measures such as sales, revenue, cash flow and profit growth recently? Refer to financial business plan attached. The business has not performed adequately against key financial performance data, particularly in the second year of operation of the business, primarily due to restrictions placed on the hours and days of operation by council. The residential zoning and subsequent surrounding resident concerns meant council took an extremely conservative approach with the initial permit conditions. Two years of business operation and modification have improved the sales and visitation performance figures, but significant business growth will need to be achieved to validate investor confidence with the new build? This will require significant council and residential modification to the current permit conditions and acceptance of the revised business activities. Unless the new proposed restaurant/function centre/ event centre can increase its operation to 7 days a week from mid-‐morning to late evening, increase the patrons numbers from 70 to 150 in the restaurant and/or up to 300 patrons in the function centre up to twice a week, this facility cannot survive in its current form! The current level of patronage is not sustainable. Two years of losses in the café/function centre demonstrate this?
5.3 Financial forecast What are your projected results over the next 1, 2, 3 and 5 years? Remember to define any assumptions you make. We based our figures for the projected business plan for 2017-‐2018 on the assumptions outlined below:
• Restaurant turnover with operations five days a week. $6000 -‐ $8000 on weekends and public holidays x 2 days = $ 16000 $3000 -‐ $4000 every other day of the week x 3 = $12,000 The best case = Total Restaurant turnover = $28000 per week = $ 121,000 per month. We have reduced this in the winter months when business will be quiet and building up to this in the summer months? Hence the average of $ 84190 per month which is double the current turnover of the café business of approx. $ 41650 per month. With the increased restaurant capacity of 70 to 150 people, and an aggressive marketing campaign to reach the permanent residents in the city, we believe these figures are obtainable?
• Weddings 12 weddings per year with $20,000 per wedding gross takings 150 people at $133.00 a head, we assumed $ 20,000 per month
• Functions and conferencing We have estimated an increase in the number of Functions @ $37.50 a head for 100 -‐ 150 people at 10 times a year assumes $3750 per month conferencing $50 a head for 20 to 50 people 15 times a year assumes $ 1560 per month.
• Live Music It is our experience that it is not unreasonable to conclude that we could hold 10 -‐ 15 music/entertainment shows a year. 120 people sold out $35.00 ticket = $4,200, assumes $ 5250 per month turnover. This turnover will vary by the month depending on weather and the time of year.
• Tourism The increase in tourist traffic and interest in the Old Gaol over the last 12 months has been substantial having more than doubled from the previous year. We have been researching the gaol history and made significant improvements to the displays, and setup of the guided and self-‐guided tours. We expect these improvements to add to the enjoyment of these tours and assist with an increase in appeal for this part of the gaol business which should in turn assist with visitation to the restaurant/café!
