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Microbrewery Business Plan The Blue Eel House and Brewery, an Atlantic Beach based pub and microbrewery (Brewpub) will operate as a single unit, medium-size alehouse, serving fine, hand crafted, high quality, ale, and lager beers. The microbrewery will be in Atlantic Beach, North Carolina. Today there are over 700 microbreweries operating in the United States. The Blue Eel House and Brewery will be Atlantic Beaches first modern microbrewery, dedicated to producing flavorful ale and lager beers. The companys goal is that of a multi-faceted success. Our first responsibility is to the financial well being of the brewery.
We will meet this goal while trying to consider; 1) the effect of our products on the well being of our customers (and our staff), 2) the impact that our business practices and choices will have on the environment, and 3) the high quality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our basic financial goals. The founders of Blue Eel House and Brewery are Mickey and Donald. Mickey is the President and Donald is the Vice President. There are 5, 000 shares of common stock issued. Mickey and Donald each own 1, 000 shares, and the remainder are retained by the company for future distribution.
In addition they have loaned the company $ 100, 000 of their own money for research and start-up costs. This company will be formed as a Partnership in lieu of a Proprietorship with Mickey and Donald sharing equal responsibilities. A suitable site fr the first restaurant was fund last month and lease negotiations are in the final stages. The location will be n Atlantic Boulevard, just upside Catwalk Pavilion and case t a dense population f the target market. When the lease is signed, there will be three months f free rent fr construction and in that time the balance f the start-up funds must be raised. With that phase completed, The Blue Eel Huse and Brewery can then pen and the perkins phase f the project can begin.
If the business is meeting its projections by year tw, we will start setting fr a send location and develop plans fr the next unit. ur five-year gal is t exceed the maximum barrel age fr a microbrewery (15, 000 barrels annually) and become a mass producer f Blue Eel and Blue Eel Lager worldwide with an annual profit f between $ 500, 000 and $ 1, 000, 000. Although the microbrewery industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. Trends are very important and Blue Eel House and Brewery is well positioned for the current interest in trendy, casual, beach atmosphere.
As of March 15, 1999, there were 1, 528 microbreweries, brewpubs, and regional specialty breweries in North America. There are more than 2000 malt beverage brands produced in the United States, six times the number of brands produced a decade ago. U. S. and international brewers continue to produce a tremendous array of beer styles with solid niche markets continuing to develop for industry members of every size. The average American spends 15 % of his / her income on social entertainment outside the home.
This number has been increasing for the past several years. According to the 1991 - 1992 North America Brewers Resource Directory, the average per-capita consumption of malt beverages was 23. 4 gallons per year in 1989 in the United States. Opportunities. The predicated growth trend is very positive bth in short and lng-term projections. In 2002, The National Brewery Association released the Micrbrewery Industry 2004 report that feasted hw the industry might lk in the year 2004. Sme highlights frm the panels findings: Consumers will spend a greater prprtin f their entertainment dollar away frm hme.
Independent pirates and entrepreneurs will be the main source f new restaurant concepts. Environmental concerns will receive increased attention. Craft brewers are anticipating the stability f a stronger and wiser craft-brewing industry that is already taking shape in 2002 and will continue t strengthen during 2004 and 2005. The Blue Eel Huse and Brewery will be feeling adult beverages with a distinctive image. The Blue Eel House and Brewery menu is small sized, complimentary offering of light appetizers. Our goal is to create the image of a casual, beach atmosphere while serving high quality, hand crafted beers, ales, and lagers.
Food production and assembly will take place in the brewhouse of the microbrewery. Malt barley, hops, yeast, and water will be used to create most of the ales and lagers from scratch. The brewmaster will exercise strict standards of sanitation, quality production, and presentation or packaging over the brewery and service staff. The older way of beer making will apply to certain of our products, such as; brewing in smaller batches, forgoing filtration and pasteurization to produce beers that retain more of the flavor and character imparted by yeast during fermentation. The business will produce less than 15, 000 barrels per year in order to maintain its status as a microbrewery. Service.
There will be two areas a customer can purchase beverages. They may sit in the sitting area and get full service from a waitperson or can sit at the bar and order directly from the bartender. Either way will benefit the patron with free appetizers and high quality beverages. Opportunities.
There is a market segment that prefers to consume this type of beverage at home, although they do not have the time or facilities. There are already mail order companies that provide individuals and families with prepared ales, lagers and do it yourself home brewing kits. This opportunity will be researched and developed on a trial basis. If successful, it could become a major new source of income without creating the need for additional staff or production space.
Target Market. The market for Blue Eel House and Brewery covers a large area of diverse and densely populated groups. Although it will be located in a beach setting, it is an area where people travel to eat out and one that is also frequented by tourists. It is also an area known for and catering to the demographic group we are targeting.
Market Location & Customers. The beach and boardwalk area is one of the most desirable retail locations in Atlantic Beach. The Atlantic Beach Chamber of Commerce rates it as the third best retail market in the state. There are more than 200 businesses in a 1 / 4 square mile area with average sales of $ 330 per square foot. The customer base will come from three major segments: Local population - the city of Atlantic Beach with a year-round population of 123, 000 is centrally located on the east coast of North Carolina and is within a 15 -minute drive 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 - between hotels, motels, bed & breakfast rooms and inns, there are over 8, 500 rooms available. Last year they were at 98 % occupancy. Local businesses - The City of Atlantic Beach lists over 100 businesses with an average of 12 employees in the Catwalk Pavilion area. Prospective Beer Consumption. Winter 19. 90 % Spring 28. 10 % Summer 30. 10 % Fall 21. 90 % The food concept and product image of the Blue Eel House and Brewery will attract two different customer profiles: The young adult and young adult student - more and more young people have developed taste for specialty brews. Curious and open-minded - "if you try it, you will like it.
Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that specialty brews can be tasty, fun, convenient, and inexpensive. Marketing Plan & Sales Strategy. Entry int the market should nt be a problem. The stre has high visibility with heavy ft traffic all day lng. The local residents and students always support new trendy spt's and the tourists d nt have fixed preferences. In addition, $ 25, 000 has been budgeted fr a pre-pending advertising and public relations campaign.
Focusing n the unique aspect f the product theme (healthy, tasty fds) a mix f marketing vehicles will be created t cover ur presence, ur image, and ur message: Print media - local newspapers, magazines and billiards Broadcast media - local programming and special interest shw's Pint f sale A well-trained staff can increase the average check as well as enhancing the custmer's verbal experience. A public relations firm has been retained t create special events and spirit print and broadcast coverage, especially at the start-up. The marketing effort will be split int three phases: 1) pending - An advanced notice (press packet) sent ut by the PR firm t all media and printed announcement ads in key places. Budget - $ 10, 000. An additional $ 5, 000 has been budgeted fr a ne-day pen Huse Extravaganza. 2) nine - A flexible campaign (using the are media) assessed regularly fr effectiveness.
Budget - $ 10, 000 3) Pint f sale - A well-trained staff can increase the average check as well as enhancing the customer's verbal experience. Wrd-f-muth referral is very important in building a customer base. The 5 Ps of the Blue Eel Are: Product high quality beer with unique features Place several popular and appealing outlets within the city borders Price due to some exclusiveness the price will be higher than usual beer, however having young adults and students as our main consumers it will be affordable Promotion the marketing campaign is described Presence the company will be developing brand recognition locally through the marketing campaign described below Future plans and Strategic Opportunities Catering after-hours office parties for special occasions and holidays (even outside of our local area) may become a large part of gross sales. At that point, a sales agent would be hired to directly market our products for catered functions. Operations Facilities & Offices The microbrewery, at 1001 Atlantic Boulevard, is a 2400 Square foot space.
It was formerly a restaurant and needs on minor structural modifications. The licenses and codes' issues are all in order. New equipment and bar furnishings will be purchased and installed by the general contractor. Offices of the corporation are presently at Donald Ducks home but will be moved to the microbrewery after opening.
Systems & Controls. A big emphasis is being placed n extensive research int the quality and integrity f ur products. Products will constantly be tested fr ur wn high standards f purity. Cst's and inventory cntrl will be handled by ur computer system and checked daily by management.
Food Production. All products will be prepared on the premises. The brewery will be designed for high standards of sanitary efficiency and cleaned daily. Ingredients will be purchased and stored in large coolers in the basement. Long-Term Development & Exit Plan. Blue Eel House and Brewery is an innovative concept that targets a new, growing market.
We assume that market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality, consistency, and security that will make us the leader of a new style of entertainment. Our marketing efforts will be concentrated on the areas of most promising growth. As the market changes, new products may be added to maintain sales.
After the microbrewery opens, we will keep a close eye on sales and profit. If we are on target at the end of year 2, we will look to expand to a second unit. With any new venture, there is risk involved. The success f ur project hinges n the strength and acceptance f a fairly new market. After year 1, we expect sme copycat competition in the frm f ther independent units. Chain competition will be much later.
Ideally, Blue Eel Huse and Brewery will expand t three units in the next 10 years. At that time, we will entertain the possibility f a buy-ut by a larger brewery concern r actively seek t sell t a new we. Financial Data & Projections. 1. Break-Even Analysis Gross Sales $ 1, 554, 960. 00 Gross Profit $ 917, 576. 00 Gross Profit Margin 73. 56 % Total Fixed Costs $ 824, 284. 00 Break Even $ 1, 083, 271. 00 2. TOTAL START-UP CAPITAL $ 300, 000. 00 Loans & Notes $ 100, 000. 00 Stock sales $ - Partnerships $ 200, 000. 00 3. BALANCE SHEET (Assets / Liabilities) 10, 000. 00 Balance Sheet Security Deposit 10, 000. 00 Construction Rent 10, 000. 00 Construction Utilities 2, 000. 00 Liquor License 3, 000. 00 Yearly License Fees 2, 300. 00 Utility Deposits 2, 500. 00 Insurance-Prepaid 25, 000. 00 Advertising & Promotion 5, 000. 00 Graphics & Printing Architects/Decorators 3, 000. 00 Bank Note Payment Other Note Legal & Accounting 10, 000. 00 Inventory 2, 000. 00 Uniforms 80, 700. 00 Contractor Fees Cash Reserve 60, 000. 00 Furniture, Equipment 40, 000. 00 Leasehold Improvements 5, 000. 00 Payroll, training 15, 000. 00 Consultants 2, 500. 00 Research & Development The underlying assumption for the success of the proposed enterprise is the background and experience of its founders.
In the past several years I have completed several projects. One of them was the development of marketing campaign for packed food manufacturing company, which operates in the dairy industry. The experience of working as junior analyst for the telecommunication startup provided an insight on what it takes to run a business. College initiatives of founding a business club oriented at providing the students with support in the beginning of their careers provided me with contacts and support of many businessmen. The internship with JTI Financial Services has given me a thorough understanding of financial concepts and basic financial management of manufacturing company. Having been the technical director of international economics forum has given me the opportunity to develop the skills of team working and personnel management.
Having had ten subordinates exposed me to the basics of employee motivation and adequate remuneration. My nearest plans are getting a postgraduate education in the field of finance with further internship in the governmental agency. The goal of becoming a deputy financial controller within a large multinational company within the next five years allows me to assume that I will address the task of running the Blue Eel with adequate level of professionalism and devotion. Recent exposure to the professionalism of JTI Financial Services Financial Controller made me want to become a look-like-him person. The trustworthiness and high integrity of that person inspired many people surrounding him for the actions towards the success of the enterprise he represented.
Having received two of the higher educations (one of them abroad) and many qualifications by the age of thirty has given the person a good head start towards an International career within any of the largest and most respected global enterprises. The future success of the person is unquestionable and evident.
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