Micro-Brewery Business Plan Essay, Research Paper
Micro-Brewery Business Plan
Business Plan
Table of Contentss
Company Description
Industry Analysis
Products & A ; Related Servicess
The Target Market
Marketing Plan & A ; Gross saless Strategy
Operationss
Management & A ; Organization
Long-Term Development & A ; Exit Plan
Financial Data & A ; Projections
Company Description
The B k Ale House and Brewery, an Atlantic Beach based saloon and microbrewery ( Brewpub ) will run as a individual unit, moderate-sized alehouse, functioning mulct, manus crafted, high quality, ale, and lager beers. The microbrewery will be located at 1001 Atlantic Boulevard in Atlantic Beach, North Carolina. Today there are over 700 microbreweries runing in the United States. The B k Ale House and Brewery will be Atlantic Beaches foremost modern microbrewery, dedicated to bring forthing flavourful ale and laager beers. A tradition revitalized!
Mission Statement
The company & # 8217 ; s end is that of a multi-faceted success. Our first duty is to the fiscal well being of the brewery. We will run into this end while seeking to see ; 1 ) the consequence of our merchandises on the well being of our clients ( and our staff ) , 2 ) the impact that our concern patterns and picks will hold on the environment, and 3 ) the high quality of attitude, equity, apprehension, and generousness between direction, staff, clients, and sellers. Awareness of all these factors and the responsible actions that consequence will give our attempts a sense of intent and intending beyond our basic fiscal ends.
Development & A ; Status
The B k Ale House and Brewery was incorporated in July of 1999. The laminitiss are Minnie Mouse and Daisy. Minnie is the President and Daisy is the Vice President. There are 5,000 portions of common stock issued. Minnie and Daisy each ain 1,000 portions and the balance are retained by the company for future distribution. In add-on they have loaned the company $ 100,000 of their ain money for research and start-up costs. This company will be formed as a Partnership in stead of a Proprietorship with Minnie and Daisy sharing equal duties.
A suited site for the first eating house was found last month and rental dialogues are in the concluding phases. The location will be on Atlantic Boulevard, merely outside Catwalk Pavilion and near to a heavy population of the mark market. When the rental is signed, there will be three months of free rent for building and in that clip the balance of the start-up financess must be raised. With that stage completed, The B k Ale House and Brewery can so open and the operations stage of the undertaking can get down.
Future Plans
If the concern is run intoing its projections by twelvemonth two, we will get down reconnoitering for a 2nd location and develop programs for the following unit. Our five-year end is to transcend the maximal barrelage for a microbrewery ( 15,000 barrels yearly ) and go a aggregate manufacturer of B k Ale and Bo a B K Lager worldwide with an one-year net income of between $ 500,000 and $ 1,000,000.
Industry Analysis
Although the microbrewery industry is really competitory, the lifestyle alterations created by modern life continue to fuel its steady growing. Tendencies are really of import and B k Ale House and Brewery is good positioned for the current involvement in trendy, insouciant, beach atmosphere. As of March 15, 1999, there were 1,528 microbreweries, brewpubs, and regional forte breweries in North America.2 There are more than 2000 malt drink trade names produced in the United States, six times the figure of trade names produced a decennary ago. U.S. and international beer makers continue to bring forth a enormous array of beer manners with solid niche markets go oning to develop for industry members of every size.
The brew procedure was considered a adult female s occupation until the terminal of the first millenary. At that clip, monastery breweries began practising the brewing procedure. The monastics decided they wanted a great tasting, alimentary drink to function their repasts. During fasting, beer was used to fulfill the hungry monastics because the ingestion of liquids did non interrupt the regulations of fasting. The monastics were reported to imbibe big measures of beer each twenty-four hours. Their love for the drink turned it into a concern.
The Microbrewery Industry Today
The microbrewery concern is going one of the largest industries in the state. In June 1997, an article in the North Carolina Times Union noted that there were 154 microbreweries without a brewpub attached and 278 more with a brewpub. In 1993 new microbreweries opened at the rate of about two per hebdomad in the State of North Carolina, peculiarly in the beaches countries. It accounts for over $ 240 billion yearly in gross revenues and the independent microbrewery histories for 15 % of that sum. The mean American spends 15 % of his/her income on societal amusement outside the place. This figure has been increasing for the past several old ages. Harmonizing to the 1991-1992 North America Brewers Resource Directory, the mean per-capita ingestion of malt drinks was 23.4 gallons per twelvemonth in 1989 in the United States.
Future Trends & A ; Strategic Opportunities
The predicated growing tendency is really positive both in short and long-run projections. In 1988, The National Brewery Association released the Microbrewery Industry 2000 study that forecasted how the industry might look in the twelvemonth 2000. Some high spots from the panel & # 8217 ; s findings:
+ & # 8220 ; Consumers will pass a greater proportion of their amusement dollar off from place.
+ Independent operators and enterprisers will be the chief beginning of new eating house constructs.
+ Environmental concerns will have increased attending.
Trade beer makers are expecting the stableness of a stronger and wiser craft-brewing industry that is already taking form in 1999 and will go on to beef up during 2000 and 2001. The quality of the mean brewpub and the mean microbrew on the shelf is continually bettering, says David Edgar, Director of the Institute for Brewing Studies.
Products & A ; Related Servicess
The B k Ale House and Brewery will be offering big drinks with a typical image.
The Menu
The B k Ale House and Brewery bill of fare is little sized, complimentary offering of light appetisers. Our end is to make the image of a insouciant, beach atmosphere while functioning high quality, manus crafted beers, ales, and laagers.
Production
Food production and assembly will take topographic point in the brewhouse of the microbrewery. Malt barley, hops, barm, and H2O will be used to make most of the ales and laagers from abrasion. The brewmaster will exert rigorous criterions of sanitation, quality production, and presentation or packaging over the brewery and service staff. The older manner of beer devising will use to certain of our merchandises, such as ; brewing in smaller batches, waiving filtration and pasteurisation to bring forth beers that retain more of the spirit and character imparted by barm during agitation. The concern will bring forth less than 15,000 barrels per twelvemonth in order to keep its position as a microbrewery2.
Service
There will be two countries a client can buy drinks. They may sit in the sitting country and acquire full service from a waitperson or can sit at the saloon and order straight from the barman. Either manner will profit the frequenter with free appetisers and high quality drinks.
Future Opportunities
There is a market section that prefers to devour this type of drink at place, although they do non hold the clip or installations. There are already mail order companies that provide persons and households with prepared ales, laagers and make it yourself home brewing kits.
This chance will be researched and developed on a test footing. If successful, it could go a major new beginning of income without making the demand for extra staff or production infinite.
The Target Market
The market for B k Ale House and Brewery covers a big country of diverse and dumbly populated groups. Although it will be located in a beach scene, it is an country where people travel to eat out and one that is besides frequented by tourers. It is besides an country known for and providing to the demographic group we are aiming. Microbreweries and brewpubs have a alone being in that they produce a drink of superior quality. This epoch of legal limitations on intoxicant ingestion and the wellness witting client dictate that people are looking to imbibe less and but drink better. Beer is the most popular alcoholic drink in America. Americans drink about 23 gallons of beer per twelvemonth.
The end of our brewery is to bring forth such an being. There are more flavor profiles in the household of beer than in that of vino, sweet, dry, rancid, tart, grainy, bitter, fruity & # 8211 ; it & # 8217 ; s all at that place. This makes beer non merely attractive, but besides as a flexible concomitant to all sorts of nutrient. We will offer beer on pat ( little helpings of several assortments at a fixed monetary value ) , which creates a gay ambiance every bit good as a conversation piece for our clients
Market Location & A ; Customers
The beach and boardwalk country is one of the most desirable retail locations in Atlantic Beach. The Atlantic Beach Chamber of Commerce rates it as the 3rd best retail market in the province. There are more than 200 concerns in a 1/4 square mile country with mean gross revenues of $ 330 per square pes.
The client base will come from three major sections:
+ Local population & # 8212 ; the metropolis of Atlantic Beach with a year-around population of 123,000 is centrally located on the east seashore of North Carolina and is within a 15-minute thrust of 8 major suburbs.
+ Colleges and Universities Atlantic Beach has several schools within a 15-mile radius of Atlantic Boulevard and a seasonal population of 90,000.
+ Tourism & # 8212 ; between hotels, motels, bed & A ; breakfast suites and hostel, there are over 8,500 suites available. Last twelvemonth they were at 98 % tenancy.
+ Local concerns & # 8212 ; The City of Atlantic Beach lists over 100 concerns with an norm of 12 employees in the Catwalk Pavilion country.
Harmonizing to 1995 industry statistics from the Miller Brewing Company, beer ingestion additions during the summer months.
BEER CONSUMPTION BY SEASON
SEASON PERCENTAGE CONSUMED
Winter 19.90 %
Jumping 28.10 %
Summer 30.10 %
Fall 21.90 %
The nutrient construct and merchandise image of the B k Ale House and Brewery will pull two different client profiles:
+ The immature grownup and immature grownup pupil & # 8212 ; more and more immature people have developed gustatory sensation for forte brews.
+ Curious and open-minded & # 8212 ; & # 8220 ; if you try it, you will wish it. Through selling, promotion, and viva-voce, people will seek out a new experience and learn that forte brews can be tasty, merriment, convenient, and cheap.
Marketing Plan & A ; Gross saless Strategy
Market Penetration
Entry into the market should non be a job. The shop has high visibleness with heavy pes traffic all twenty-four hours long. The local occupants and pupils ever back up new voguish musca volitanss and the tourers do non hold fixed penchants. In add-on, $ 25,000 has been budgeted for a pre-opening advertisement and public dealingss run.
Selling Scheme
Concentrating on the alone asp
ECT of the merchandise subject ( healthy, tasty nutrients ) a mix of selling vehicles will be created to convey our presence, our image, and our message:
+ Print media & # 8212 ; local newspapers, magazines and hoardings
+ Broadcast media & # 8212 ; local scheduling and particular involvement shows
+ Point of sale A well-trained staff can increase the mean cheque every bit good as heightening the client s overall experience.
A public dealingss house has been retained to make particular events and solicit print and broadcast coverage, particularly at the start-up. The selling attempt will be split into three stages:
1 ) Opening & # 8212 ; An advanced notice ( imperativeness package ) sent out by the PR house to all media and printed proclamation ads in cardinal topographic points. Budget & # 8211 ; $ 10,000. An extra $ 5,000 has been budgeted for a one-day Open House Extravaganza.
2 ) Ongoing & # 8212 ; A flexible run ( utilizing the above media ) assessed on a regular basis for effectivity. Budget & # 8211 ; $ 10,000
3 ) Point of sale & # 8212 ; A well-trained staff can increase the mean cheque every bit good as heightening the client & # 8217 ; s overall experience. Viva-voce referral is really of import in constructing a client base.
Future programs and Strategic Opportunities
Providing after-hours office parties for particular occasions and vacations ( even outside of our local country ) may go a big portion of gross gross revenues. At that point, a gross revenues agent would be hired to straight market our merchandises for catered maps.
Operationss
Facilities & A ; Offices
The microbrewery, at 1001 Atlantic Boulevard, is a 2400 Square foot infinite. It was once a eating house and demands on minor structural alterations. The licences and codifications & # 8217 ; issues are all in order. New equipment and saloon trappingss will be purchased and installed by the general contractor. Offices of the corporation are soon at Daisy Duck s place but will be moved to the microbrewery after opening.
Hours of Operation
The microbrewery will be unfastened 7 yearss a hebdomad. Service will get down at 5:00 PM and stop at 2:00 AM. The microbrewery will be closed Christmas and Thanksgiving.
Employee Training & A ; Education
Employees will be trained, non merely in their specific operational responsibilities, including proper sanitation methods, but besides in the doctrine and applications of our construct. They will have extended information from the brew maestro and be kept informed of the latest information on microbrewing.
Systems & A ; Controls
A large accent is being placed on extended research into the quality and unity of our merchandises. Merchandises will invariably be tested for our ain high criterions of pureness. Costss and stock list control will be handled by our computing machine system and checked daily by direction.
Food Production
All merchandises will be prepared on the premises. The brewery will be designed for high criterions of healthful efficiency and cleaned daily. Ingredients will be purchased and stored in big ice chests in the cellar.
Management & A ; Organization
Key Employees & A ; Principals
Minnie Mouse, President. Minnie is besides the director of another microbrewery. Since 1977, the company has created a high-profile mainstream image for forte brews. In 1992, the shop became so popular and profitable, she decided to spread out her skylines and co-own a shop of her ain. Minnie brings with her a path record of success in the microbrewing industry.
Daisy Duck, Vice President. Daisy was a co-owner of a vicinity tap house. This tavern sold in 1998 as a really profitable concern. Daisy has ever had an involvement in microbrewing and decided this enterprise was appropriate at this clip.
Minnie and Daisy s direction manner is advanced in maintaining with the corporate manner outlined in the mission statement.
Compensation & A ; Incentives
B k Ale House and Brewery will offer competitory rewards and wages to all employees with benefit bundles available to identify forces merely.
Board of Directors
An impressive board of managers has been assembled and represents some top professionals from the country. They will be a great plus to the development of the company.
Advisers & A ; Professional Support Resources
At the present, no outside consults have been retained, demuring the design section at Best Equipment.
Management to be Added
We are soon seeking for a general director and brew maestro. These cardinal employees will be good chosen and given inducements for public presentation and growing.
Management Structure & A ; Style
Minnie Mouse will be the President and Chief Operating Officer and Daisy Duck will be the Vice President. The general director and brew maestro will describe to Daisy. All other employees will be low-level to the general director.
Ownership
Minnie Mouse, Daisy Duck, and the shareholders will retain ownership with the possibility of offering stock to identify employees if deemed appropriate.
Long-Term Development & A ; Exit Plan
Goals
B k Ale House and Brewery is an advanced construct that targets a new, turning market. We assume that market will react, and turn rapidly in the following 5 old ages. Our ends are to make a repute of quality, consistence, and security that will do us the leader of a new manner of amusement.
Schemes
Our selling attempts will be concentrated on the countries of most promising growing. As the market alterations, new merchandises may be added to keep gross revenues.
Milestones
After the microbrewery opens, we will maintain a close oculus on gross revenues and net income. If we are on mark at the terminal of twelvemonth 2, we will look to spread out to a 2nd unit.
Hazard Evaluation
With any new venture, there is hazard involved. The success of our undertaking hinges on the strength and credence of a reasonably new market. After twelvemonth 1, we expect some imitator competition in the signifier of other independent units. Chain competition will be much later.
Exit Plan
Ideally, B k Ale House and Brewery will spread out to three units in the following 10 old ages. At that clip, we will entertain the possibility of a buy-out by a larger brewery concern or actively seek to sell to a new proprietor.
A good illustration of this is the Anderson Brewery, which started as a 30-barrel brewery and in 10 old ages, is now a 180-barrel brewery.
Financial Data & A ; Projections
Break-Even Analysis and Scenario
Gross Gross saless $ 1,554,960.00
Gross Profit $ 917,576.00
Gross Profit Margin 73.56 %
Entire Fixed Costs $ 824,284.00
Break Even $ 1,083,271.00
Cash Remainder $ 135,691.00
Controllable Expenses:
Salaries & A ; Wages $ 370,032.00
Employee Benefits $ 69,649.00
Operating Expenses $ 74,000.00
Marketing $ 25,000.00
Energy & A ; Utility Expenses $ 18,500.00
Administrative Expenses $ 51,500.00
Repair & A ; Maintenance $ 7,500.00
Other $ & # 8211 ;
Entire Expenses $ 616,181.00
Occupation Costs $ 161,000.00
Interest & amp ; Principal $ 37,748.00
Capital Improvements $ 9,355.00
Entire Fixed Costs $ 824,284.00
Beginnings of Capital and Debt
B k Ale House and Brewery
Entire START-UP CAPITAL $ 300,000.00
Loans & A ; Notes $ 100,000.00
Stock gross revenues $ & # 8211 ;
Partnerships $ 200,000.00
Loans & A ; Notes
Amount Rate Term Source
# 1 $ 100,000.00 10 % 5.00 Friends
# 2
# 3
# 4
# 5
Partnership Information
Number of spouses 2
Amount paid by each spouse $ 100,000.00
Entire Capital $ 300,000.00
% of net incomes for general spouses 50 %
% Of net incomes for limited spouses ( group ) 50 %
Interest on chief sums 10 %
Entire YEARLY INTEREST $ 30,000.00
Start-up CostsB k Ale House and Brewery
Entire START-UP CAPITAL $ 300,000.00
Amount Expense Depreciation Amortization Amort Lshld. Balance Sheet
Security Deposit 10,000.00 10,000.00
Construction Rent 10,000.00 10,000.00
Construction Utilities 2,000.00 2,000.00
Liquor License 2,000.00 2,000.00
Annually License Fees 3,000.00 3,000.00
Utility Deposits 2,300.00 2,300.00
Insurance-Prepaid 2,500.00 2,500.00
Advertising & A ; Promotion 25,000.00 25,000.00
Graphics & A ; Printing 5,000.00 5,000.00
Architects/Decorators 10,000.00 10,000.00
Bank Note Payment
Other Note
Legal & A ; Accounting 3,000.00 3,000.00
Inventory 10,000.00 10,000.00
Uniforms 2,000.00 2,000.00
Contractor Fees
Cash Reserve 80,700.00 80,700.00
Furniture, Equipment 60,000.00 60,000.00
Leasehold Improvements 40,000.00 40,000.00
Payroll, developing 5,000.00 5,000.00
Advisers 15,000.00 15,000.00
Research & A ; Development 2,500.00 2,500.00
Landscaping
Debt Consolidation
Employment Agency Fees 10,000.00
Other 10,000.00
TOTALS $ 300,000 $ 60,000.00 $ 92,500.00 $ 40,000.00 $ 107,500.00
Mentions
( 1999 ) . All that glisters is gilded. Tinsiltown on-line [ On-line ] . Available hypertext transfer protocol: //www.tinsiltown.com/restaurants/microbreweries.htm ( 1999, August 10 ) .
( 1999 ) . Anderson valley brewing. Anderson valley brewing company online [ On-line ] . Available hypertext transfer protocol: //www.avdc.com ( 1999, August 15 ) .
( 1999 ) . Beer institute study. Beer institute online [ On-line ] . Available hypertext transfer protocol: //www.beerinst.org.report/slide1.html ( 1999, August 13 ) .
( 1999 ) . Brewery diagram. John harvard & # 8217 ; s brew house [ On-line ] . Available hypertext transfer protocol: //www.johnharvards.com/process/brewery.html ( 1999, August 13 ) .
Canegie, J. ( 1997, June ) . Microbrewy concern in North Carolina. North Carolina Times Union, p. MMETROB6.
Carilli, J. ( 1999, April 26 ) . Craft-brewing industry fact sheet. Institute for brewing surveies intelligence and stats [ On-line ] . Available hypertext transfer protocol: //www.aob.org ( 1999, August 10 ) .
( 1999, April 6 ) . Craft brewing industry repetition gross revenues of 5.6 million barrels in 1998. Institute for brewing surveies & # 8211 ; intelligence and stats [ On-line ] . Available hypertext transfer protocol: //www.aob.org.
( 1999 ) . Drinking less, imbibing better. Restaurant study [ On-line ] . Available hypertext transfer protocol: //www.restaurantreport.com.
( 1999 ) . The history of beer. Beer history online [ On-line ] . Available hypertext transfer protocol: //www.showlearn.com/beer/bhistory.htm ( 1999, August 13 ) .
( 1999 ) . Let & # 8217 ; s travel to the Federal Bureau of Prisons. All about beer [ On-line ] . Available hypertext transfer protocol: //allaboutbeer.com/features/bop.html ( 1999, August 9 ) .
( 1999 ) . Exclusive proprietary overview. Getting started & # 8211 ; legal construction [ On-line ] . Available hypertext transfer protocol: //www.businesstown.com/gettingstarted/structure-sole.asp ( 1999, July 25 ) .
( 1999 ) . Startup kits & # 8211 ; your clients. Entrepreneur magazine & # 8211 ; on-line [ On-line ] . Available hypertext transfer protocol: //www.entrepreneurmag.com/resource/toolkit/microbrew3.hts ( 1999, July 28 ) .
Wauldron, J. ( 1999 ) . The bad toad narrative & # 8211 ; it all started with a jersey. Bad frog international [ On-line ] . Available hypertext transfer protocol: //www.badgrog.com/about.html.
