Brewpub

Brewpub

Hopstreet Brewery

32 Battery Way
Charlotte, NC 28202

Zachary David Robinson

The Hopstreet Brewery is seeking an outlay of $280,000 from investors. This amount will be used to get a loan so The Hopstreet Brewery can purchase everything the brewpub needs to get started. This amount will give The Hopstreet Brewery the 20 percent it needs to acquire a $1.4 million loan from the bank.

EXECUTIVE SUMMARY

The Hopstreet Brewery will be formed to bring patrons a warm and inviting dining experience like no other. The Hopstreet Brewery will feature an eclectic array of homebrewed beers and great food with something for everyone.

The Hopstreet Brewery will be a brewpub incorporated as a limited liability company. The business location will be in Noda in Charlotte and will be completed in spring 2006.

The head of The Hopstreet Brewery management team will be CEO and brewmaster Matt Hanson. Matt has received his brewing certification and has thorough experience of brewpubs. The rest of the management team will consist of a general manager and a kitchen manager/head chef. Aiding the management team are advisors who have restaurant and business experience.

Noda is a residential and commercial area that is being developed just a few miles away from downtown Charlotte. Nearly everything in Noda will be within walking distance. In fact, there will be over 900 residential units within a fiveminute walking distance of the Hopstreet Brewery. Ultimately, Noda will be a thriving town of more than 4,000 residents and hundreds of businesses. Noda will be completed in nine phases, with a carefully planned mix of homes in addition to a large town center and four neighborhood centers. 500 homes will be completed in each phase with each phase taking 12 years to complete. The project is set to be completed in 2017.

The Hopstreet Brewery will serve a wide selection of homebrewed beers including ales, pilsners, and lagers. The Hopstreet Brewery will also feature a traditional American menu with appetizers, sandwiches, and main and side dishes. There will also be German specials present on the menu. These items are unique and could even be added to the full menu.

There is a lot of competition in food and drink industry. There are a few brewpubs, many bars, and many restaurants in the Charlotte area. However, The Hopstreet Brewery has competitive advantages that will help the brewpub meet or beat the competition.

Brewpubs and microbreweries are growing tremendously in popularity. After meeting all requirements in a site assessment survey, the location of The Hopstreet Brewery should provide a great marketing opportunity. Furthermore, there are many attractions close to The Hopstreet Brewery. From 2003 to 2004, the brewpub industry experienced a growth rate of 4.6 percent. The craft beer industry has become accustomed to growth; the industry has grown every year for the past 35 years. Average beer sales at brewpubs for 2004 were $341,480. Moreover, most brewpubs have a 40:60 alcohol to food sales ratio, meaning it is likely that average food sales was around $512,000.

The marketing strategy of The Hopstreet Brewery is a combination of billboard advertisements, mailings, newspaper ads, kiosks, and promotion at local events. The Hopstreet Brewery will use the services of The Scout Group to help with sales strategy. In addition, The Hopstreet Brewery will use advertisements, a frequent dining program, specials, a happy hour, group events, pub crawls, brewpub tours, and sponsorships to get customers in the door and keep them coming back. Pricing of Hopstreet Brewery products will be based on competition, cost, and demand.

The Hopstreet Brewery is seeking an outlay of $280,000 from investors. This amount will be used to get a loan so The Hopstreet Brewery can purchase everything the brewpub needs to get started.

MISSION

Vision: To bring a warm and inviting atmosphere to Noda and the surrounding Charlotte area.

Mission: The Hopstreet Brewery Brewery in Noda at Charlotte is dedicated to bringing patrons a warm and inviting dining experience like no other. With an eclectic array of homebrewed beers and great food, everyone will be able to find something they like.

Tagline: The Hopstreet Brewery, a place for good beer, good food, and good fun.

ORGANIZATION

Company Name

The Legal Name is: The Hopstreet Brewery, LLC.

Legal Form of Business

The Hopstreet Brewery is incorporated as an LLC located at the address: 32 Battery Way, Charlotte, NC 28202.

The location will move to Noda upon completion.

Management Summary

The Hopstreet Brewery management will primarily be the duty of CEO, Matt Hanson, with the aid of experienced business professionals Jason O'Connor, Richard Vanderburg, Jeff Wolpe. Also, part of the management team will be the Head Chef / Kitchen Manager and a Restaurant / Bar Manager who will be identified later.

Matthew Hanson, CEO and Brew Master BA in German, Duke University, Graduating 1994: Emphasis in Teaching.

The CEO, Matthew Hanson, is from Raleigh, North Carolina. Matt has a brewer's certification from the VLB Berlin threeyear program and a teaching certificate from Duke University

Matt's brewing experience is evident from the several years that he spent in Germany. In fall of 1994, he began an apprenticeship for Bierbrauerei in Frankfurt, Germany. Most of his schooling was in Berlin, Germany, but halfway through the three year program, he moved to a smaller brewery that better reflected the kind of operation that he wanted to run. This brewery was in Hamburg, Germany, a part of the Munster Brauhaus.

While at the Brewery in Hamburg, Matt rotated through all aspects of the brewery including: Brewhaus, malting, machine maintenance, filtration, bottling and kegging, bar construction and maintenance, and the laboratory and laggering department. In a one year period, all areas of the brewery were visited twice.

Matt next attended school in Berlin at the Versuchsndashund Lehranstalt fur Brauerei (VLB). This included both theoretical and practical classes in brewing techniques and other related areas to brewing. Schooling was twice a year for a period of 6 to 8 weeks.

In 1996, Matt moved to a family owned pubbrewery in Hamburg, Munster Brauhaus. There, he attended the same kind of school as in Berlin. New responsibilities in Hamburg included all aspects of brewing with a few exceptions (i.e. did not have a laboratory or a maintenance crew). Also, responsibilities included gastronomical aspects such as cooking for the pub, giving small tours, bartending, filling and tapping kegs for guests, working at festivals serving the brewery's beer and working with open fermentation. The final practical examination took place in the Beck's Brewery in Bremen.

In 1997, Matt returned home to receive his teaching certificate. Currently, he is teaching at Charlotte Community College, as well as serving on the Charlotte City Council. On the council he serves on several boards, including: Arts and Culture, Streets, Grant Review Committee, Finance and Audit, Community Center Site Selection Committee, Public Safety, and Technology Committee.

Jason O'Connor Has been running his own businesses for the past 25 years. Currently owns a Subway sandwich restaurant and is on the Board of Directors for the City Planning Committee. Has experience in the restaurant industry.

Richard Vanderburg Has been working as an entrepreneur for most of this life. Has had many successful entrepreneurship relationships in business and politics, has completed marketing plans for businesses and established a number of highly profitable companies from the ground up. Has lots of startup and business experience.

Jeff Wolpe Developer of Noda, Charlotte. President of Prestwick Homes, one of the largest builders in the state. Lots of business experience and will have major effects on area.

Donald Bilson Sales representative for Food Services LLC. Has 26 years experience in restaurant and food industry.

Matt Hanson, CEO/Brew Master

  1. Responsible for maintaining the vision, mission, and philosophy of the company
  2. Oversees the brewery as a whole, maintaining the integrity of the operations along with the marketing and sales through advisors
  3. Handles all phases of the brewing cycle for the all beer produced on site
  4. Responsible for the investor relations of the company

General Manager

  1. Handle customers
  2. Handle employeesboth front of the house and back of the house
  3. Prepare paperwork, i.e. count inventory and calculate food cost, complete product ordering, and prepare labor schedules for both FOH

Head Cook/Kitchen Manager

  1. Head of the kitchen
  2. Handle all aspects of food preparation
  3. In charge of kitchen staff, organization, inventory, and orders

General Restaurant Staff

  1. Bussers / Dishwashers (24)
  2. Servers (35)
  3. Hosts / Hostesses (23)
  4. Bartenders (12)
  5. Sous chef (1)
  6. Line Cook (12)
  7. Prep Cook (12)

Company Attorney

  1. Responsible for establishing an LLC business form
  2. Prepare and file necessary legal documentation
  3. Responsible for contractual relations with investors and potential investors
  4. Responsible for all legal proceedings

Accountant

  1. Assist in directing the finances for the brewery
  2. Manage all budgets, projections, and all statements necessary for tax filings
  3. Assist in preparing financial reports to help make business decisions

BUSINESS OVERVIEW

Brewpub Description

A brewpub is a restaurant and microbrewery combination that makes its own beer and sells the majority of its beer on premise. A brewpub is also referred to as a homebrew house and a house brewery. The first American brewpub opened in 1982. As of July 2003, the Association of Brewers estimated over 1,000 brewpubs in the United States alone. There are brewpubs in many other parts of the world, although not commonly called "brewpubs." Brewpubs are especially popular in European countries, but are growing rapidly in popularity in the United States.

The Hopstreet Brewery will follow these characteristics by offering German craft beers and traditional American food with German specials (if these specials are popular enough, they will be added to the menu).

The Hopstreet Brewery will open in May 2006. For the first couple years, only the bottom floor will be available for business and the second floor will be "white boxed" until further phases of Noda are completed.

LocationNoda at Charlotte

The location of the Hopstreet Brewery is Noda at Charlotte. Noda is a residential and commercial area that is being developed just a few miles away from historic Charlotte. Noda's style is new urbanism and somewhat resembles traditional European architecture. Nearly everything in Noda will be within walking distance. In fact, there will be over 900 residential units within a five minute walking distance of the Hopstreet Brewery.

Ultimately, Noda will be a thriving town of more than 4,000 residents and hundreds of businesses. Noda will be completed in nine phases, with a carefully planned mix of homes in addition to a large town center and four neighborhood centers. 500 homes will be completed in each phase with each phase taking onetwo years to complete. Of the 500 homes released for sale, 450 homes have already been sold and the second phase will be released for sale in June 2005. In addition, there are already 26 businesses open. The project is set to be completed in 2017. Developer Carl Knutser's vision is for Noda to be one of the most recognized neighborhoods in the country and this seems possible as sales are more than double original expectation.

Seating

Seating in the first year will include the main floor with approx. 2,280 sq. ft of customer space and a beer garden. The second floor will be "whiteboxed" until The Hopstreet Brewery is able to receive adequate customers. The beer garden will consist of 12 tables, but will only be available weather permitting. The bulk (or maybe all) of the kitchen will be off the back of the building. There will be approximately 12 seats along the bar, 18 tables, and additional space. It is estimated that there will be at least 87 seats. There will also be a public swimming pool located beside The Hopstreet Brewery which could be an area where customers could be served. This will allow for more seating. Depending on the season, we are hoping there will be approximately 135 seats in warm months and 87 in cooler months for year one.

The plan is to open the "whiteboxed" second floor in year two or three. This area will be approximately 1,500 square feet and should allow for seating of 50 additional customers.

Decorations

The exterior decoration will be painted stucco, 2.5 stories in height, and Central European in design. The interior decor will be warmnaturalstone, wood, and brick in design. There will be wall hangings and memorabilia decorating the walls. The brew system will be shown off in a bay window that runs two stories tall. There will be a lodgefeel upstairs, supported by fire places, a small band stage, and large windows.

Parking

There will be onstreet parking in front of The Hopstreet Brewery, a free public parking lot in the back, and onstreet parking throughout the community.

PRODUCTS

Alcohol

The Hopstreet Brewery will feature numerous types of beers brewed onsite by Matt Hanson. To suit the tastes of everyone, The Hopstreet Brewery will also serve a few AnheuserBusch products. Many breweries only serve the beer that is produced onsite, but to maximize business sales and profits, serving other beers and an assortment of liquor is a must.

Craft beers will be brewed in a oneofakind system. The system will be the Kupferversion mit zwei Kupferhauben purchased brand new from SBP Breweries. The Hopstreet Brewery will use a 2500 bbl. system. This system comes straight from Slovakia and is made of copper giving it a beautiful and unique look. The cost of this system is 323,200 Euro ($417,006 US). The Hopstreet Brewery will make this system easily viewable to anyone in the restaurant, so they can enjoy its beauty and know where the beer they are drinking is coming from.

The Hopstreet Brewery will also make the presentation of beer a highlight. Unlike other drinking places, beers will be presented the way they were meant to be. Beers will not be served in the same simple glass; each beer will be presented in its own unique way according to tradition.

Main beers that will be brewed by The Hopstreet Brewery

  • Pilsner (Pils)Served in a tall, thinnerwalled glass, this is the most "elegant" beer. It is bottomfermented, has the most "bitter" taste (i.e. the most hops content) and is light in color. Ca. 5% alc./vol.
  • LagerLager is a generic name for bottomfermented beer. Pilsners are also lagers, but a lager is usually less bitter. The lager can be served in a number of glasses and the beer served by our brewery will be like the German, "Helles" beer: a light colored, somewhat malty beer. Ca. 5% alc./vol.
  • DunkelesA Dunkeles is the same as a lager, however, the color is darker and the beer is a little sweeter due to the residual sugars and caramelized malt. This beer will be served in a round beer glass that is, perhaps, known for being the "typical beer glass". Ca. 5% alc./vol.
  • Hefeweizen (a.k.a. Weizen or Weiss)Hefeweizen is a beer served in a tall, widemouthed glass so that the head of the beer can reach a nice threefingers height. This beer may contain slightly more alcohol at ca. 5.5% alc./vol. and will be made with barley malt and wheat malt (50/50). This is an ale (top fermented beer) and has a stronger flavor. This beer will be served more in summer and offered with banana juice or a slice of lemon. *Instead of brewing separate flavored beers, most of the flavor will be added by syrup to the Hefeweizen after brewing: this allows a wider range of flavoring (and makes the hardheaded brewer feel better about not brewing "candy beer")
  • KoelschKoelsch is an ale yeast beer known in the Cologne Germany area and served in small, cylinderstyle glasses. It is somewhat like a wheat beer. It is lightly colored and will contain a little less alcohol. Ca. 4.5% alc/vol.
  • Alt BeerBeer served in small glasses or special alt glasses that have a curvilinear line to them; darker in color; about 5%, ale yeast.
  • Bitter AlesSuch as: Pale Ale (served in "waterstyle glass"). Ca. 5% alc./vol, light colored.
  • Dark Ales/StoutsThese beers are a lot like the brand Guinness, which is an Irish beer. Ca 5% alc./vol. This beer is very dark and black in color and served in a English Pint Glass.
  • Berliner WeissThis beer is close to the Lambic style beers of Belgium. It is an ale yeast, lightly colored and soured with lactic acid. By itself (some like it this way) it may not be a very good tasting beer. This beer is served in a low, verywide mouthed glass ("Pott" in German) and comes with a "Schuss" or shot of Waldmeister/Woodruff syrup or Himbeer/Raspberry syrup. The beer then takes on a green or red color, respectively.

Additional beers to be served are seasonal, specialty beers:

  • Schwarz Beer"Black" beer, lager yeast (bottom fermented), Ca.5% alc./vol. Served in a large "tulip" styled glass. This beer is a little sweeter than most.
  • DoppelbockA German strong beer that can be light, but is usually dark, and has at least 6% (usually Ca. 6.5% alc./vol). Served in a thickrimmed glass or stoneware mug.
  • Keller BeerA lager that is unfiltered and cloudyotherwise is very much like a lager in all ways.
  • HefedoppelbockA rare wheat beer, ale, but the alcohol content is much higher at around Ca.6.5% alc./vol. Can be dark or light and served from Weizen glass.
  • Stein BeerThis is a malty beer that is made by throwing a hot stone into the mash; this helps caramelize it and it becomes sweeter. This beer is considered a lager.
  • Vollmond BeerReally, just a gimmick, this beer is brewed under the full moon to give it mystic powers and make you drunk. It is a lager or really any kind of beer you brew in the middle of the night. We think this would be good for October.

The Hopstreet Brewery will also carry an assortment of hard liquors and wines. The selection of the liquors will be much the same as a standard bar or restaurant.

Food

The Hopstreet Brewery will also be a restaurant serving the general public at lunch, dinner, and after hours. There will be a full menu serving traditional American foods as well as German specialties and other seasonal dishes throughout the year.

Along with sales from the restaurant, we will also sustain revenue with growlers (glass jugs of beer filled onsite), bottled beer, keg beer, and promotional items, such as glasses, hats, key chains, bar towels, golf balls, clothing, and other trinkets.

Concept Menu

As stated, The Hopstreet Brewery will carry traditional American food with German specials. Most of the regular menu items will be similar to other brewpubs, restaurants, and bars. The menu may have a few additions or subtractions in the near future. Also included is nonalcoholic beverages offered.

Menu Items

Appetizers:

  • Nacho Platter Nachos topped with ground beef, shredded lettuce, tomatoes, cheese, black olives, chopped green onions, jalapenos and sour cream
  • Buffalo Wings One pound of spicy hot wings served with celery and ranch or blue cheese dressing
  • Homemade Giant Onion Rings battered in our special beer batter and deep fried to golden perfection
  • BiteSized Soft Pretzels served with sweet, hot, and horseradish mustard. A way to enjoy the little Kraut in all of us
  • Toasted Ravioli This favorite is served with marinara sauce and fresh parmesan cheese
  • Homemade Potato Chips Thinly sliced fresha basket full
  • Small salad Fresh field greens served with fresh Farmers' Bread
  • Chilli Our own special recipe served with chic peas, black olives, and topped with shredded cheese

Sandwiches:

Served with Fries, Homemade Chips, or Hot German Potato Salad

  • Hamburger Thick 1/2 pound hamburger topped with lettuce, tomato, onion, pickles, & lettuce
  • BBQ Hamburger
  • Swiss and Kraut Burger Our hamburger topped with Swiss cheese and finest sauerkraut
  • Steak Sandwich Marinated steaks served with grilled onions and grilled to perfection
  • Pulled Pork Sandwich Slowcooked pork roast pulled and covered in bbq sauce
  • HandCut Cod battered in our own special beer batter and served on your choice of wheat or white bread
  • Reuben Corned beef served on rye bread with Swiss cheese, sauerkraut and Thousand Island dressing

Main Dishes:

  • Chicken Salad with Peanut Sauce Dressing Iceberg lettuce covered in our own special peanut dressing and chicken strips
  • Brick Oven Pizzas Pizzas served with your favorite toppings including: pepperoni, sausage, chicken, mushrooms, onions, black olives and peppers
  • Schimmelpizza Pizza topped with garlic, onions, artichoke hearts and mozzarella cheese
  • Reuben Pizza If you like reubens, then you'll love this Italian twist. Thousand Island dressing is the base on this pizza complete with caraway-seed encrusted dough; topped off with corned beef, sauerkraut, and Swiss cheese
  • Sausage Rigatoni Lean, fresh sausage in a red or white sauce and topped with fresh parmesan. Served spicy upon request
  • Pork Steak Slow grilled served with your choice of two sides. BBQ or dry
  • Pork Cordon Bleu Fresh pork chop filled with ham and Swiss cheese, breaded and fried
  • Grilled Chicken Breast Served with your favorite two sides and small salad
  • Smoked BBQ Ribs Served with your favorite two side dishes
  • Ribeye Steak Served with baked potato, broccoli and dinner salad

Sides:

German Cole Slaw; German Potato Salad; Baked Potato; Salad; Chips; Green Beans; Mashed Potatoes; Noodles; Broccoli; Onion Rings; Sauerkraut

Just For Kids:

Chicken Strips; Grilled Cheese; Hamburger; Pizza; PB&J Sandwich

Beverages:

Sodas; Iced Tea; Locally Roasted Coffee; Milk; Apple Spritzers

German Specials (appearing at different intervals)

Appetizers:

  • Landjaeger with farmer bread and mustard served on wooden board (this is a German Summer Sausage)
  • Cheese and Sausage Platter
  • German Farmer Bread served with "hausgemachter braunschweiger" and chives
  • Schupfnudeln Mit Sauerkraut
  • Pflammkuchen
  • Radish and Salt
  • Deutscher Salat German Salad

Soups:

Allgauer Cheese Soup; White Asparagus Cream Soup; Dumpling Soup; Chili Con Carne; German Potato Salad Soup

Main Dishes:

  • Bangers and Mash Six Nuernberg sausages served on a bed of kraut
  • Schnitzel Pork cutlet
  • Rhineland Pork Smoked pork chops served on a bed of our special kraut
  • Rinderrouladen Maultaschen Germanstyle ravioli stuffed with hamburger and spinach
  • Weisswurst served with large soft pretzel and sweet mustard
  • Turkey Leg Dinner
  • Trout and Boiled Potatoes served with German cream sauce
  • Flammkuchen pizza base but instead of a tomato sauce, the crust is covered with creme fraiche, bacon, onions, garlic, and cheese
  • White Asparagus served wrapped in Black Forest Ham
  • Bratwurst Dinner
  • Wurstsalat mit Kaese (Schweizer Art)

Sides:

Spaetzle; German Farmer Bread; German Potato Salad (warm or cold); Schupfnudeln and Kraut; German Salads; Fried Eggs; German Broth

The general menu will remain relatively unchanged throughout the course of business. However, as demand for special dishes are assessed, they might become available on the regular menu. The Hopstreet Brewery is also working on a system where leftover food items can be used in certain dishes the following day. These items might be used to make a soup, side dish, or other dishes. It is estimated that The Hopstreet Brewery will have $20,000 worth of inventory at any one time (includes food, spices, etc.).

The Hopstreet Brewery will audition for a chef who has experience cooking German food. If a German chef is unattainable, The Hopstreet Brewery will find an American chef who is willing to learn.

COMPETITION

Competition can be broken up into three categories: brewpubs, bars, and restaurants. The Hopstreet Brewery will essentially be competing in all three categories which are somewhat related.

Brewpubs

All brewpubs in the Charlotte area are going to present some competition. There are no other planned brewpubs for Noda, so the listed brewpubs are the competition.

Competition: Brewpubs

Name Distance Location Cost Selection Presentation Atmosphere Food Beer
Tarheel Tavern 4.60 Very good Above average Good None Good Very good Good, but unoriginal
Charlotte Brewpub 18.72 Very good Average Diverse None Good Good Good
AleHouse 22.41 Good Above average Unique None Above average Good Mediocre at best

The Hopstreet Brewery has some tough competition in this area, especially Tarheel Tavern. All of the brewpubs analyzed have a strong location and convenience. Tarheel Tavern is located in historic Saint Charles; Charlotte Brewpub is located in downtown Charlotte surrounded by huge businesses; and AleHouse sits on the water, attracting passing consumers. The Hopstreet Brewery will have a location that is better than these competitors though. The Hopstreet Brewery will be located in Noda, an area of soon to be some 4,000 residents. As The Hopstreet Brewery is being erected, the amphitheater, public swimming pool and stores will be nearing completion. The Hopstreet Brewery also shares the area of Charlotte with Tarheel Tavern. Charlotte is growing rapidly and contains many attractions such as Wild William's WaterPark and the IMAX theater.

Cost of products will be similar to these brewpubs, above average. The average meal price at these brewpubs is $8 to $10. The selection of foods at The Hopstreet Brewery will be different than competitors' American menu food and German specials will be served. In addition, The Hopstreet Brewery will also feature homebrewed beers different from others. To set itself apart in this category, The Hopstreet Brewery will offer beer with a longer ripening period (a minimum of 21 days versus 14) and a happy hour sampling special. The sampling special will feature a "shot" of every beer to give the customer a taste of everything. The brewing experience of Matt Hanson should also help set Hopstreet Brewery beer apart. Matt spent many years in Germany to receive his brewing certification and worked at numerous German breweries, giving him the knowledge and background to create great beer and run the brewpub.

Notice that no brewpub competitors have unique presentation for their products. This will be a selling point for The Hopstreet Brewery. All beers are meant to be delivered in a certain way. Serving beers in proper drinkware will stick out in the customer's mind. For example, the tall, widemouthed hefeweizen glass and the mini hammer tapped keg will be identifying factors for customers.

The Hopstreet Brewery will use these features to share the Charlotte market with Tarheel Tavern, and capture the Noda market. These features will be attraction points for The Hopstreet Brewery to take customers away from Tarheel Tavern and bring them to the Hopstreet Brewery.

Bars

Of the 26 businesses to open in Noda in phase one, there are no true bars besides The Hopstreet Brewery. This is good news because The Hopstreet Brewery could be one of the few drinking places close and the only within walking distance of many. There are numerous bars/pubs in the Charlotte area, however. Only some of these present competition because most people are not willing to drive long distances to get to a specific bar. There are over 50 bars within a ten mile radius of the Hopstreet Brewery. All of these undoubtedly demonstrate at least some competition. The ten closest bars to The Hopstreet Brewery represent more competition than others. These bars include:

Competition: Bars

Name Distance Location Cost Selection Presentation Atmosphere Food Other
Watering Hole 1.73 Okay Average Okay None Run-down Average Locals
Wilson's 2.50 Good Average Average None Good Good Chain rest.
Telly's 3.38 Horrible Above average Okay None Unfriendly Average Inside RV-park
Rottermond 3.97 Poor Below average Poor None Run-down Poor Locals
Hingy's 3.98 Okay Cheap Poor None Unclean Poor $ 0.25 food
O'Callahan 4.00 Poor Average Unique None Okay Average Irish
Maria's 4.10 Good Above average Good None Good Very good Italian
Brown Brewpub 4.10 Good Average Okay None Good Above average Local favorite
Green Lightpost 4.31 Okay Average Okay None Okay Above average
FlimFlam 4.34 Good Above average Good None Good Good Chain

The only bars that stand out from the crowd in this table are Maria's and FlimFlam. Maria's is, in fact, more of a restaurant than a bar and FlimFlam is part of a restaurant chain. After these two, all of the other bars seem to be average at best. The Hopstreet Brewery will by no means, be an average bar. The food and selection at most of these bars is lackluster and offers nothing unique. This will be an area for The Hopstreet Brewery to capitalize on.

A "beer" heading was not added to this group because none of these bars serve their own beer. They all serve generic products like Bud Light and an occasional microbrewed beer like Charlotte Brew. Therefore, fresh homebrewed beer is another area favoring The Hopstreet Brewery.

In addition, the atmosphere at a lot of these bars was nothing worth noting. Most of them were smoky, unclean, and just not really a fun place to be. However, some of these bars continue to be local hangouts, something that will take time for The Hopstreet Brewery to accomplish. Also, some of these bars have very low prices that will be unmatchable for The Hopstreet Brewery, but the food is not as quality. Furthermore, none of these bars have any unique presentation, giving another advantage to The Hopstreet Brewery.

Restaurants

There are three restaurants that will be completed by the time of the opening of The Hopstreet Brewery. These restaurants are: Tony's BBQ & Grill, Fast Chinese, and PizzaToGo. Fast Chinese and PizzaTo Go sound generic, but Tony's BBQ & Grill could pose as competition. Besides these, there are many restaurants close to The Hopstreet Brewery. Many of these restaurants, though, are considered fast food, and therefore are in a different category than that of The Hopstreet Brewery. More upscale, sitdown restaurants present more competition. Nearly 75 percent of the 50 closest restaurants to The Hopstreet Brewery are fastfood joints. The ten closest, besides those that have already been stated, are listed below.

Competition: Restaurants

Name Distance Location Cost Selection Presentation Atmosphere Food Other
Beth's 2.25 Okay Average Okay None Okay Average Locals
Mong Kow 2.34 Poor Cheap Okay None Poor Poor Chinese
Won Ton 2.42 Okay Cheap Poor None Poor Poor Chinese
Main Street Grill 3.34 Okay Cheap Poor None Poor Below average
Pepperoni's 3.40 Good Average Okay None Okay Average Pizza
Washington's Tavern 3.72 Good Above average Very good None Good Very good Very unique
Charbroiled Treats 3.90 Okay Average Good None Okay Good Pizza and burgers
Dim Sum 3.91 Okay Below average Poor None Poor Poor Chinese chain
Le Kabob 3.97 Okay Average Okay None Rundown Below average Locals
El Maguey 4.08 Poor Below average Okay None Okay Average Mexican chain

Similarly to bars in the area, a lot of restaurants located close to The Hopstreet Brewery are just okay or poor. The Hopstreet Brewery should not have much trouble beating out these weak competitors, but will have trouble with some of the better restaurants. The goal of The Hopstreet Brewery will be to achieve equality with these restaurants, because they are local favorites and have been in the area for a long time.

The Hopstreet Brewery will beat out all of the restaurant competition in alcohol category. The Hopstreet Brewery will serve a large selection of homebrewed beers that will be unmatchable by these restaurants. Once again, The Hopstreet Brewery must make use of its delivery and presentation as an advantage to this group. Also, these bars and restaurants will lack the brewpub experience that is evident at The Hopstreet Brewery.

MARKET ANALYSIS

After much research and analysis, The Hopstreet Brewery should have only minor problems in competing in the brewpub, bar/pub, and restaurant industry. There are only three brewpubs in the Charlotte area and the production of craft beers has grown seven percent over the past year. Furthermore, the niche market expanded three percent last year.

The brewpub is not the smoky, dirty bar where you cannot take your family, and it is not the expensive restaurant where you wouldn't take your friends. Brewpubs offer a family oriented atmosphere suitable for family and friends. They offer good food and quality unique beer. This is why brewpubs and small breweries are growing tremendously in popularity (seven percent production growth from 2003 to 2004) with over 1,400 nationwide.

Noda is projected to have annual economic impact of $315 million. This will be cash flow on which businesses in Noda can capitalize on. Other than The Hopstreet Brewery, only three are restaurants and only one of these restaurants is similar to The Hopstreet Brewery (sitdown family restaurant). This means that once phase one is complete (Spring 2006), The Hopstreet Brewery will be one of the main options for the 450 resident homes of Noda.

A site assessment survey was done by the American's Brewers Guild which surveyed successful brewpub operations and identified some important site characteristics that were believed to have contributed to the businesses' success. This assessment follows.

Site Assessment

Specification Recommendation The Hopstreet Brewery
15-mile radius population 150,000 822,865
Average per capita income $ 30,000 $ 67,904
Percentage of population in target age group 50% 70%
Per capita consumption Upper 1/3 of nation Upper 1/10 of nation
Number of successful restaurants in area 5 or more More than 5
Number of successful bars in area 3 or more More than 3
Number of taprooms in area 1 to 3 2
Number of brewpubs in area 0 to 3 1
Foot traffic Moderate to heavy Heavy
Commerce A must Yes
Parking Ample for pm business Ample
Proximity to:
    Downtown     Important     Yes
    Office     Important during lunch     Yes
    Sporting facility     Asset     Yes
    College     Post-grads an asset     Yes
    Tourist attractions     Asset     Many
Expansion potential Desirable Yes
Aesthetics Moderately important Strong
Utility requirements Must meet minimums Yes
Access Must be uncomplicated Uncomplicated
Neighborhood support Important Yes

As you notice, The Hopstreet Brewery meets every requirement, and many with ease. Many of these requirements are explained or analyzed throughout the plan. There are some, though, that will be explained here. For instance, University of North Carolina at Charlotte is located close, satisfying the college requirement. There are many sporting facilities including Charlotte Family Club and the Noda YMCA. Furthermore, The Hopstreet Brewery is located in downtown Noda and has an abundance of offices just a few miles away on Battery Way that employs thousands of workers. As Noda grows, The Hopstreet Brewery will beat these requirements with even more ease. The fact that The Hopstreet Brewery more than meets these requirements is in an indication that there is a market for a second brewpub in the area.

Attractions AtHand

Attractions and amenities close to The Hopstreet Brewery will increase the number of consumers in the area and, therefore, increase the market. The amenities located within a short distance of The Hopstreet Brewery include:

  • Wild William's WaterPark
  • IMAX Theater
  • North Carolina University at Charlotte
  • Highway I-85
  • Brookfield Mall
  • Highway I-77
  • Charlotte Airfield

All of these locations are recognizable consumer hot spots. Highways I-85 and I-77 are traveled by thousands of people every day. On interstate 85 at Battery Way, 28,506 cars traveling east and 30,849 traveling west pass by per 24 hours on average. Also, according to the Charlotte Department of Transportation, close to 20,000 vehicles travel on Battery Way each day. After the completion of Noda, this number is sure to rise.

The IMAX Theater attracts 54 million people annually. Wild William's WaterPark in Raleigh is the single largest attraction in the state and attracts four million people alone; it has even been called the most visited waterpark in the United States. Judging by the success of the Raleighbased location, the Charlotte store should continue to gain popularity. As you will learn later, The Hopstreet Brewery already has plans to market there.

Charlotte already has a strong tourism industry; 1,600,000 already visit this historic city annually. These amenities, though, are an extra source of tourism. Take for instance, Ameristar Casino, which attracts over ten million visitors on an annual basis. Moreover, most people who fly into North Carolina travel through RaleighDurham International Airport, which is also close to The Hopstreet Brewery and where marketing will take place (see Marketing Strategy).

Brewpub Industry Analysis

The Hopstreet Brewery falls within the brewpub industry. There is no specific "industry" for this category yet, as it is relatively new. Therefore, there is no specific SIC code. For now, it is appropriate to place the brewpub under the drinking place code 5813 and the restaurant code 5812.

The craft beer segment includes brewpubs, microbreweries, and specialty brewers. Craft beer (micro-brewed beer) is the fastest growing segment of the beverage alcohol industry in the United States. There was a seven percent growth rate for craft beer volume in 2004, nearly double the growth rate posted in 2003 of 3.4 percent. More specifically, there was a 4.6 percent growth rate for brewpubs. "Craft beer volume growth outpaced that of imports, large brewers, wine and spirits in 2004," said Paul Gatza, Director of the Brewers Association. "The craft beer segment continues to show healthy and steady growth with many individual brewers enjoying doubledigit volume increases," said Charlie Papazian, President of the Brewers Association. For 35 years, the craft beer industry has shown growth each year. "Americans increasingly prefer the flavor and diversity of fresh, locally made beers," says Papazian. "Many Americans first discovered fullflavored beers at local breweries and now the diverse and exciting choices among those flavorful brews have become a regular part of their lifestyle." The continuance of the rising growth rate of the craft brew industry means good things for The Hopstreet Brewery. Growth is expected for the 2005 and 2006 years, and The Hopstreet Brewery will benefit from that growth.

Brewpubs have helped revive the beer and drinking places industry. There were a total of 986 brewpubs operating in the United States in 2004. This number includes the 51 brewpubs that opened their doors for the first time in 2004. Listed in the table below are annual beer sales for the brewpub industry.

Annual brewpub sales: Beer

Year Total
industry beer sales
Average
brewpub beer sales
2004 $336,700,000 $341,480
2003 $322,000,000 $326,572
2002 $312,800,000 $317,241

Food sales for the brewpub industry were a little harder to come by. Although brewpubs are known more for their beers, food actually accounts for more sales than beer. Brewpubs in the Charlotte area reported a 40:60 ratio of alcohol to food sales. No specific industry food sales were attainable, so the following data was calculated using the previously stated ratio.

Annual brewpub sales: Food

Year Estimated
industry food sales
Estimated average
brewpub food sales
2004 $505,050,000 $512,220
2003 $483,000,000 $489,858
2002 $469,200,000 $475,862

End Consumer

The end consumer of The Hopstreet Brewery can be broken down into three groups: locals, brew nuts, and visitors. Locals will be accounting for most of the business, but brew nuts and visitors will make up a respectable proportion. We expect locals to account for at least 80 percent of business, visitors 15 percent and brew nuts 5 percent.

Locals include people living in the Charlotte area, but more specifically citizens of the Noda development. Brew nuts are people who are basically obsessed with microbrewed beer. They will travel long distances just to try out a new beer. After visiting The Hopstreet Brewery, these nuts will forever remember not only our delectable beers, but the presentation of these products the way they were meant to be. Visitors are people visiting the Charlotte area. As you have already learned, there are various attractions close to The Hopstreet Brewery, so there will always be people going in and out of the area.

The majority of Hopstreet Brewery customers will be over the age of 21. However, these adults will bring their family and friends with them who may or may not be 21 and many others will visit who are not 21. In addition, even though people from every income level drink beer, our target group is those with income of more than $30,000. In the end, it should be noted that people may not come to enjoy Hopstreet Brewery beers, they may simply come because they enjoy the food, atmosphere, and company.

As described, our end consumer is made up of three different groups. To determine the amount of locals we may encounter, radial studies must be completed. Within a 1mile radius of The Hopstreet Brewery there are 9,732 adults over the age of 21; 64,977 within a 5mile radius; 253,434 within a 10mile radius; and 574,995 within a 15mile radius. Moreover, more than two thirds of these people have an average income of over $30,000.

The demographic of the brew nut is hard to nail down. These are just people who love trying beer. This group is made up of people over 21, but mostly males. Some brew nuts are willing to travel further than others, so the general market is as large as the entire country.

The demographic of the visitor group is just that, a visitor. More than two thirds of adults in the United States aged 21 and older traveled in 2004. That makes visitors a very large group (greater than 125 million). Charlotte alone had over 1.5 million visitors last year, and that was before the construction of Noda.

MARKETING & SALES

Marketing Strategy

The marketing strategy of The Hopstreet Brewery is to uphold to the strictest standards of quality and family fun while serving up excellent food, beer, and atmosphere. This will provide the company with a strong reputation and encourage customers to tell others about their experience. The Hopstreet Brewery must prove itself among the many brewpubs, bars, and restaurants in the Charlotte area. When restaurants and drinking places open, people want to try them out immediately and first impressions can make or break companies in this industry. Therefore, The Hopstreet Brewery will make sure every experience is a positive one. The Hopstreet Brewery will focus on serving the finest beers and delivering them in a fashion unlike any other location. Also, the selection of foods will make sure there is something for everyone and leave the customer craving for more.

The Hopstreet Brewery will use traditional and nontraditional marketing efforts to promote the brewpub. Traditional marketing efforts will include billboard advertisements, direct mailings, and newspaper spots. Nontraditional marketing consists of indirect marketing. The combination of these marketing efforts will be used to create a "buzz" that will generate wordofmouth marketing in the general public.

In the fall of 2005, billboard advertisements will be done promoting all of Noda. Many of these signs will contain advertisement for The Hopstreet Brewery. These signs will be located on highways 85 and 77, and other major roadways in the Charlotte area. The Hopstreet Brewery will also make use of billboard advertising independently around the same areas. The amount or placement of these billboards will not be assessed until Noda advertising has begun. The Hopstreet Brewery would like to have an advertisement on 370 east and west, 70 east and west, and two on Battery Way/Airport Road in each direction. The plan is to have these advertisements present three months before opening and have them remain until they are inefficient. In addition, Hopstreet Brewery owner, Matt Hanson, has already been in contact about having the brewpub added to the list of restaurants on highways 85 and 77.

There are currently over 5,000 people on the Noda mailing list which keeps interested consumers up to date with what is going on in Noda. It has already been mentioned in this mailer that a brewpub will be open in Noda phase one. Now that more information is available about The Hopstreet Brewery, advertisements and articles will begin appearing in this mailer by summer 2005. This mailer is designed and maintained by Noda development and will cost The Hopstreet Brewery nothing. The Hopstreet Brewery will push to have as many references as possible in this mailer. The Hopstreet Brewery will also begin placing advertisements in the Charlotte newspaper about the brewpub's 2006 opening. An ad or two will be placed in the Sunday newspaper starting a month before opening. These ads will contain a coupon so The Hopstreet Brewery can gauge their effectiveness and determine how long they should use newspaper advertising. Furthermore, the business section of the Charlotte newspaper often features articles about the opening of new businesses, and The Hopstreet Brewery is likely to be featured shortly before opening. There will soon be a daily Noda newspaper and The Hopstreet Brewery will do likewise with this newspaper.

Many different kiosks have been seen at Wild William' WaterPark in Charlotte, marketing and offering samples of products during events. The Hopstreet Brewery is in the process of setting up a kiosk at spring 2006 events. Hopefully, alcohol will be permitted at this event. If not, The Hopstreet Brewery will focus on handing out coupons, fliers, and merchandise. Wild William' WaterPark is a huge attraction and will offer The Hopstreet Brewery a lot of public visibility. Another strong place to advertise is RaleighDurham International Airport. The Hopstreet Brewery plans to have advertisements visible to customers as they pick up their luggage and walk out the door.

The Hopstreet Brewery will also participate in local events such as Oktoberfest and parades both before and after opening. At these events, merchandise, coupons, and fliers will be handed out. Moreover, The Hopstreet Brewery will hand out these things as much as possible at as many places as it can to give the brewpub as much promotion as possible.

Sales Strategy

The sales strategy of The Hopstreet Brewery is direct sales to customers from the brewpub. The main selling point will be beer, but food will be the second attraction. Focus, therefore, will be sale of these two groups at the brewpub. All advertising within the brewpub will be endorsement of Hopstreet Brewery products, events, promotions, and specials. There will be no advertising for products like AnheuserBusch.

Part of The Hopstreet Brewery's sales strategy will be completed by MarketGroup Inc. MarketGroup Inc. specializes in converting first time customers into regular visitors. MarketGroup Inc. will send personalized letters, birthday coupons, emails, web promotions, etc to Hopstreet Brewery customers. The effectiveness of this will be measured by the amount of customers using these coupons or customers noting they received a letter. The cost of this service is $350 a month. The Hopstreet Brewery will begin use of this service a few months after opening, and if it proves not to be cost effective, the brewpub will no longer use the service. MarketGroup Inc. has helped develop customer bases for many prominent Charlotte restaurants like Nook in the Square, Cathy's Cafe, and Dimanto's Italian Eatery.

The Hopstreet Brewery will complete a number of sales strategies on its own too. The brewpub will feature advertisement coupons in newspapers and mailings on a weekly basis. The Hopstreet Brewery will also offer frequent dining programs where after a customers has seven main dish items, he or she will be able to receive a free dish of choice.

The Hopstreet Brewery will have specials within the brewpub. There will be many daily specials that will include German dishes, but many will simply be discounts on regular menu items. The Hopstreet Brewery will also have happy hour specials with half price appetizers and beer from three to six o' clock every weekday. Likewise, a happy hour sampling special will be offered which will incorporate shot size samples of every craft beer.

The Hopstreet Brewery will offer to serve as a meeting place for local groups. The Hopstreet Brewery will contact church groups, senior clubs, tourist groups, and dating services about having events at the brewpub. The groups will receive discounts on all food and beverage items during the meeting, coupons for future use, and a tour of the brewpub.

The Hopstreet Brewery will also encourage pub crawls where people are driven around to different bars/breweries. These are usually set up by a group of people looking to try out different drinking places. The Hopstreet Brewery will periodically mention pub crawls in its advertisements and promote it at the brewpub. Moreover, there will be frequent tours of the brewing process where consumers will get a sample of freshly brewed beer at the end. In addition to these strategies, The Hopstreet Brewery will also be available for rental and catering upon request.

The last marketing/sales strategy that The Hopstreet Brewery will take on will be sponsorships. The Hopstreet Brewery will sponsor events at the local amphitheater such as concerts and pageants. The brewpub will try to be active in every event that takes place at the amphitheater because it is located only a few steps from The Hopstreet Brewery. The Hopstreet Brewery will also sponsor local sporting events and teams. This will include charity sporting events, softball leagues, and tournaments. The Hopstreet Brewery will use this form of advertising because it is relatively cheap and can serve as a strong form of advertisement.

Pricing

The pricing of products at The Hopstreet Brewery will be based on three measurements: competition, cost, and demand. All three of these measures will be important for The Hopstreet Brewery to realize its greatest profits.

Pricing of Hopstreet Brewery beer and food will be very similar to competition. If our prices are too high, consumers will choose to take their business elsewhere. If prices are too low, The Hopstreet Brewery's profit margin will not be utilized to the fullest. Much of our pricing will be based on the pricing of items at Tarheel Tavern because they will be a main competitor of The Hopstreet Brewery, and because it too is a brewpub.

Also considered when pricing, will be the cost of the goods sold by The Hopstreet Brewery. All products require different goods, quantities, and effort to be made. Obviously, products with higher priced goods, quantities, and effort are going to command a higher price.

The final factor considered in pricing will be demand. A lot of this demand will be based on consumer input. The Hopstreet Brewery will monitor sales to see which goods are selling better than others. As stated earlier, if some goods are not selling up to standards, they might be removed from the menu. Likewise, The Hopstreet Brewery would like to measure the price sensitivity of its customers. This will be done by making occasional price markups and markdowns on selected menu items. This will survey how much consumers are willing to pay for certain items.

From our research, most sales in the brewpub industry come from food items. However, the greatest profit margin is incurred from alcohol sales, mainly house brewed items. Pricing will change from time to time due to certain conditions, but will remain the same for the most part. Pricing will be reviewed on a monthly basis at a minimum.

Alcohol prices will vary depending upon competitor pricing, size, and cost of goods. The Hopstreet Brewery will price its beers similarly to competitors. Furthermore, larger beers will be more expensive, but will be a better deal per ounce than smaller beverages. The price of ingredients also plays a major role in the price of beer. Labor will not be included in cost of goods, because it will be performed by owner and brewmaster Matt Hanson.

RISK FACTORS

Obviously, there are many risks entering into the drinking place and restaurant industry. Many startups immediately fail and many are still losing money. Possible risks The Hopstreet Brewery faces have been considered and are being planned for. There are also many opportunities that The Hopstreet Brewery can capitalize on.

Risks

  1. Lack of business. If The Hopstreet Brewery is not receiving sufficient business, major problems would arise. The outlook, however, looks very strong and there is a healthy market for brewpubs at the moment.
  2. Missing inventory. The average alcohol shrinkage of a bar is 20 percent due to too many bartender freebies, mispourings, and incorrect orders. This can cost any business a lot of revenue. If it is noticed that an unreasonable amount of inventory is missing, The Hopstreet Brewery will likely hire PubCo to manage their liquor inventory. PubCo specializes in reducing shrinkage and saving owners plenty of money.
  3. Competitors in Noda. After the development of each phase of Noda, there will be more competitors in the area. In phase one, there will only be three other restaurants in Noda, and two are more fastfood type. This leaves Marbella as the only direct competition. As new restaurants open in Noda, The Hopstreet Brewery will already be firmly established and ready to take on new competition.
  4. Possible problems with brewing systems. Problems have arisen in other microbreweries with system problems preventing the production of beer. We plan on purchasing new, topoftheline equipment to reduce this risk.
  5. Overhead costs exceeding sales would pose a problem if it occurred consistently. If the cost to maintain the equipment, building and other overhead costs exceed sales, The Hopstreet Brewery would be in serious disarray. The Hopstreet Brewery will fight this by reviewing finances on a monthly basis at a minimum and hiring an accountant.
  6. Management and staff problems. Employees will initially be given a chance to settle disputes and correct mistakes depending on severity. However, some mistakes, such as stealing and harassment will result in immediate firing.
  7. Competitive reaction. Competitors in the Charlotte area might react adversely to The Hopstreet Brewery. They might try to undercut pricing or partake in interfering with possible Hopstreet Brewery consumers. The Hopstreet Brewery does not want to go to war with any of its competitors. Actions to prevent this might be forming strategic alliances or supporting competitors.
  8. Poor reviews in press. This would pose a major problem for The Hopstreet Brewery because the brewpub is counting on positive reviews to promote business. If this does happen, The Hopstreet Brewery will make greater efforts to improve the brewpub and its products like hiring a new chef or offering more discounts to get consumers back in the door.
  9. Liquor related problems. Drunkdriving and other liquor related problems are often troublesome for drinking places. To prevent this, servers will be trained to determine when someone has had too much too drink. The Hopstreet Brewery will also call cabs, family members, or drive people to make sure they get home safely. However, much of The Hopstreet Brewery's customer base will live in Noda, and most residents will be within a ten minute walk.

Opportunities

  1. Expansion. If The Hopstreet Brewery is highly successful, another brewpub may be opened in another area.
  2. Introduction of new products. It has already been explained that if a German special item is extremely popular, it would be added to the menu. Furthermore, The Hopstreet Brewery will be constantly evaluating sales of items to determine if there is enough demand to add an item to the menu. This could include beer, an American dish, or a German special.
  3. Development of surrounding area. The area of Charlotte is growing extremely fast and Noda will eventually have a population of over 10,000. The Hopstreet Brewery is right in the middle of this fast growing area and could see a large increase in customers upon completion of each phase. In addition, The Hopstreet Brewery may be able to sell products to water park guests, amphitheater spectators, and maybe even develop another beer garden.
  4. Product sales outside of the brewpub. The Hopstreet Brewery will monitor sales of its products to determine the feasibility of sales at other bars, restaurants, and stores.
  5. Strategic alliances with other businesses. The Hopstreet Brewery will try to form alliances with others to promote business. This could be beneficial to both sides. Businesses could advertise for each other, give away coupons, encourage consumers to visit, etc.

Investor Information

The Hopstreet Brewery is seeking an outlay of $280,000 from investors. This amount will give The Hopstreet Brewery the 20 percent it needs to acquire a $1.4 million loan from the bank. Investors will be paid back over a maximum 20year period on a monthly basis. Please see financials for more details.

Forecasted income statement start-up operations

Prior to Month 3 Month 3 Month 2 Month 1 Month 0 Total
Net sales $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Cost of goods sold $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Gross income $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Operating expenses (overhead):
Variable: $ 0
Payroll $ 0 $ 0 $ 0 $ 0 $ 17,794 $ 17,794
Payroll taxes $ 0 $ 0 $ 0 $ 0 $ 2,135 $ 2,135
Incentives $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Advertising $ 3,000 $ 1,500 $ 1,500 $ 1,500 $ 1,50 $ 9,000
Legal $ 500 $ 17 $ 17 $ 17 $ 17 $ 568
Accounting $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Electric $ 0 $ 2,027 $ 2,027 $ 2,027 $ 2,027 $ 8,108
Telephone $ 0 $ 300 $ 300 $ 300 $ 300 $ 1,200
Repair & maintenance $ 0 $ 0 $ 0 $ 0 $ 1,318 $ 1,318
Gas $ 0 $ 71 $ 71 $ 71 $ 71 $ 284
Supplies $ 0 $ 659 $ 659 $ 659 $ 659 $ 2,636
Total variable expenses $ 3,500 $ 4,574 $ 4,574 $ 4,574 $ 25,821 $ 43,043
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,318 $ 1,318 $ 1,318 $ 1,318 $ 1,318 $ 6,590
Loan payment $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Investor payment $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Interest $ 527 $ 527 $ 527 $ 527 $ 527 $ 2,636
Depreciation $ 0 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 10,000
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 1,155
Total fixed expenses $ 2,076 $ 4,576 $ 4,576 $ 4,576 $ 4,576 $ 20,381
Total opearating expenses $ 5,576 $ 9,150 $ 9,150 $ 9,150 $ 30,397 $ 63,423
Net income before taxes ($ 5,576) ($ 9,150) ($ 9,150) ($ 9,150) ($ 30,397) ($ 63,423)

Forecasted annual income statement

Year 1 Year 2 Year 3 Assumptions
Food & NA beverages sales $ 267,750 $ 477,000 $ 592,500 Data from Typical Bar & Restaurant according to Holder Group
Cost of goods sold $ 85,680 $ 152,640 $ 189,600 unless stated otherwise
Gross food profit $ 182,070 $ 324,360 $ 402,900 32% of food sales
Alcohol sales $ 178,500 $ 318,000 $ 395,000 60:40 Ratio of Food to Alcohol (from Saint Louis brewpubs)
Cost of goods sold $ 35,700 $ 63,600 $ 79,000 20% of alcohol sales (percentage from US Foods)
Gross alcohol profit $ 142,800 $ 254,400 $ 316,000
Merchandise sales $ 0 $ 7,096 $ 6,876
Cost of goods sold $ 0 $ 3,548 $ 3,438 50% of merchandise sales (a guess for now)
Gross merchandise profit $ 0 $ 3,548 $ 3,438
Total sales $ 446,250 $ 802,096 $ 994,376
Total cost of goods sold $ 121,380 $ 219,788 $ 272,038
Total gross profit $ 324,870 $ 582,308 $ 722,338
Operating expenses (overhead):
Variable:
Payroll $ 120,488 $ 216,566 $ 268,482 27% of total sales
Payroll taxes $ 14,459 $ 25,988 $ 32,218 12% of payroll
Incentives $ 12,000 $ 12,000 $ 12,000 $ 1,000 average monthly incentives to employees
Advertising $ 8,925 $ 16,042 $ 19,888 2% of total sales
Legal $ 200 $ 200 $ 200 Constant
Accounting $ 4,463 $ 8,021 $ 9,944 1% of total sales
Electric $ 13,988 $ 24,663 $ 30,431 3% of total sales + $600 for Brewing System Power
Telephone $ 300 $ 300 $ 300 Constant
Repair & maintenance $ 8,925 $ 16,042 $ 19,888 2% of total sales
Gas $ 850 $ 850 $ 850 Constant
Supplies $ 4,463 $ 8,021 $ 9,944 (Includes bar loss) 1% of total sales
Total variable expenses $ 189,059 $ 328,692 $ 404,143
Fixed:
Officer's salaries NA NA NA
Officer's payroll taxes NA NA NA
Insurance $ 14,000 $ 14,000 $ 14,000
Loan payment $ 103,164 $ 103,164 $ 103,164 $ 1,120,000 Loan; 6%; 20 years
Investor payment $ 32,424 $ 32,424 $ 32,424 $ 280,000 Investment; 10%; 20 years
Interest $ 6,000 $ 6,000 $ 6,000
Depreciation $ 30,000 $ 30,000 $ 30,000 $ 600,000 in equipment; Straight Line; 20 years
Licenses & permits $ 2,772 $ 2,772 $ 2,772
Total fixed expenses $ 188,360 $ 188,360 $ 188,360
Total variable expenses $ 189,059 $ 328,692 $ 404,143
Total expenses $ 377,419 $ 517,052 $ 592,503
Net income before taxes -$ 52,549 $ 65,256 $ 129,835

Forecasted year 1 income statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food sales $ 7,500 $ 11,250 $ 15,000 $ 19,500 $ 21,000 $ 22,500
Cost of goods sold $ 2,400 $ 3,600 $ 4,800 $ 6,240 $ 6,720 $ 7,200
Gross food profit $ 5,100 $ 7,650 $ 10,200 $ 13,260 $ 14,280 $ 15,300
Alcohol sales $ 5,000 $ 7,500 $ 10,000 $ 13,000 $ 14,000 $ 15,000
Cost of goods sold $ 1,000 $ 1,500 $ 2,000 $ 2,600 $ 2,800 $ 3,000
Gross alcohol profit $ 4,000 $ 6,000 $ 8,000 $ 10,400 $ 11,200 $ 12,000
Merchandise sales $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Cost of goods sold $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Gross merchandise profit $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total sales $ 12,500 $ 18,750 $ 25,000 $ 32,500 $ 35,000 $ 37,500
Total cost of goods sold $ 3,400 $ 5,100 $ 6,800 $ 8,840 $ 9,520 $ 10,200
Total gross profit $ 9,100 $ 13,650 $ 18,200 $ 23,660 $ 25,480 $ 27,300
Operating expenses (overhead):
Variable:
Payroll $ 3,375 $ 5,063 $ 6,750 $ 8,775 $ 9,450 $ 10,125
Payroll taxes $ 405 $ 608 $ 810 $ 1,053 $ 1,134 $ 1,215
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 250 $ 375 $ 500 $ 650 $ 700 $ 750
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 125 $ 188 $ 250 $ 325 $ 350 $ 375
Electric $ 425 $ 613 $ 800 $ 1,025 $ 1,100 $ 1,175
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 250 $ 375 $ 500 $ 650 $ 700 $ 750
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 125 $ 188 $ 250 $ 325 $ 350 $ 375
Total variable expenses $ 6,068 $ 8,520 $ 10,973 $ 13,916 $ 14,897 $ 15,878
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 21,764 $ 24,217 $ 26,669 $ 29,612 $ 30,593 $ 31,574
Net income before taxes $ 12,664 $ 10,567 $ 8,469 $ 5,952 $ 5,113 $ 4,274
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Food sales $ 24,000 $ 25,500 $ 27,000 $ 28,500 $ 31,500 $ 34,500
Cost of goods sold $ 7,680 $ 8,160 $ 8,640 $ 9,120 $ 10,080 $ 11,040
Gross food profit $ 16,320 $ 17,340 $ 18,360 $ 19,380 $ 21,420 $ 23,460
Alcohol sales $ 16,000 $ 17,000 $ 18,000 $ 19,000 $ 21,000 $ 23,000
Cost of goods sold $ 3,200 $ 3,400 $ 3,600 $ 3,800 $ 4,200 $ 4,600
Gross alcohol profit $ 12,800 $ 13,600 $ 14,400 $ 15,200 $ 16,800 $ 18,400
Merchandise sales $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Cost of goods sold $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Gross merchandise profit $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total sales $ 40,000 $ 42,500 $ 45,000 $ 47,500 $ 52,500 $ 57,500
Total cost of goods sold $ 10,880 $ 11,560 $ 12,240 $ 12,920 $ 14,280 $ 15,640
Total gross profit $ 29,120 $ 30,940 $ 32,760 $ 34,580 $ 38,220 $ 41,860
Operating expenses (overhead):
Variable:
Payroll $ 10,800 $ 11,475 $ 12,150 $ 12,825 $ 14,175 $ 15,525
Payroll taxes $ 1,296 $ 1,377 $ 1,458 $ 1,539 $ 1,701 $ 1,863
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 800 $ 850 $ 900 $ 950 $ 1,050 $ 1,150
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 400 $ 425 $ 450 $ 475 $ 525 $ 575
Electric $ 1,250 $ 1,325 $ 1,400 $ 1,475 $ 1,625 $ 1,775
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 800 $ 850 $ 900 $ 950 $ 1,050 $ 1,150
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 400 $ 425 $ 450 $ 475 $ 525 $ 575
Total variable expenses $ 16,859 $ 17,840 $ 18,821 $ 19,802 $ 21,764 $ 23,726
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 32,555 $ 33,536 $ 34,517 $ 35,498 $ 37,460 $ 39,422
Net income before taxes $ 3,435 $ 2,596 $ 1,757 $ 918 $ 760 $ 2,438
Assumption:
(1) Change in food and alcohol sales is based on Trailhead sales
(2) Assumes 60:40 food to alcohol ratio

Forecasted year 2 income statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food sales $ 39,000 $ 39,000 $ 42,000 $ 45,000 $ 40,500 $ 42,000
Cost of goods sold $ 12,480 $ 12,480 $ 13,440 $ 14,400 $ 12,960 $ 13,440
Gross food profit $ 26,520 $ 26,520 $ 28,560 $ 30,600 $ 27,540 $ 28,560
Alcohol sales $ 26,000 $ 26,000 $ 28,000 $ 30,000 $ 27,000 $ 28,000
Cost of goods sold $ 5,200 $ 5,200 $ 5,600 $ 6,000 $ 5,400 $ 5,600
Gross alcohol profit $ 20,800 $ 20,800 $ 22,400 $ 24,000 $ 21,600 $ 22,400
Merchandise sales $ 500 $ 515 $ 530 $ 546 $ 563 $ 580
Cost of goods sold $ 250 $ 258 $ 265 $ 273 $ 282 $ 290
Gross merchandise profit $ 250 $ 258 $ 265 $ 273 $ 282 $ 290
Total sales $ 65,500 $ 65,515 $ 70,530 $ 75,546 $ 68,063 $ 70,580
Total cost of goods sold $ 17,930 $ 17,938 $ 19,305 $ 20,673 $ 18,642 $ 19,330
Total gross profit $ 47,570 $ 47,578 $ 51,225 $ 54,873 $ 49,422 $ 51,250
Operating expenses (overhead):
Variable:
Payroll $ 17,685 $ 17,689 $ 19,043 $ 20,397 $ 18,377 $ 19,057
Payroll taxes $ 2,122 $ 2,123 $ 2,285 $ 2,448 $ 2,205 $ 2,287
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,310 $ 1,310 $ 1,411 $ 1,511 $ 1,361 $ 1,412
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 655 $ 655 $ 705 $ 755 $ 681 $ 706
Electric $ 2,015 $ 2,015 $ 2,166 $ 2,316 $ 2,092 $ 2,167
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,310 $ 1,310 $ 1,411 $ 1,511 $ 1,361 $ 1,412
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 655 $ 655 $ 705 $ 755 $ 681 $ 706
Total variable expenses $ 26,865 $ 26,871 $ 28,838 $ 30,807 $ 27,870 $ 28,858
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 42,561 $ 42,567 $ 44,535 $ 46,503 $ 43,567 $ 44,555
Net income before taxes $ 5,009 $ 5,010 $ 6,690 $ 8,370 $ 5,854 $ 6,695
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Food sales $ 39,000 $ 42,000 $ 34,500 $ 34,500 $ 37,500 $ 42,000
Cost of goods sold $ 12,480 $ 13,440 $ 11,040 $ 11,040 $ 12,000 $ 13,440
Gross food profit $ 26,520 $ 28,560 $ 23,460 $ 23,460 $ 25,500 $ 28,560
Alcohol sales $ 26,000 $ 28,000 $ 23,000 $ 23,000 $ 25,000 $ 28,000
Cost of goods sold $ 5,200 $ 5,600 $ 4,600 $ 4,600 $ 5,000 $ 5,600
Gross alcohol profit $ 20,800 $ 22,400 $ 18,400 $ 18,400 $ 20,000 $ 22,400
Merchandise sales $ 597 $ 615 $ 633 $ 652 $ 672 $ 692
Cost of goods sold $ 299 $ 308 $ 317 $ 326 $ 336 $ 346
Gross merchandise profit $ 299 $ 308 $ 317 $ 326 $ 336 $ 346
Total sales $ 65,597 $ 70,615 $ 58,133 $ 58,152 $ 63,172 $ 70,692
Total cost of goods sold $ 17,979 $ 19,348 $ 15,957 $ 15,966 $ 17,336 $ 19,386
Total gross profit $ 47,619 $ 51,268 $ 42,177 $ 42,186 $ 45,836 $ 51,306
Operating expenses (overhead):
Variable:
Payroll $ 17,711 $ 19,066 $ 15,696 $ 15,701 $ 17,056 $ 19,087
Payroll taxes $ 2,125 $ 2,288 $ 1,884 $ 1,884 $ 2,047 $ 2,290
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,312 $ 1,412 $ 1,163 $ 1,163 $ 1,263 $ 1,414
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 656 $ 706 $ 581 $ 582 $ 632 $ 707
Electric $ 2,018 $ 2,168 $ 1,794 $ 1,795 $ 1,945 $ 2,171
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,312 $ 1,412 $ 1,163 $ 1,163 $ 1,263 $ 1,414
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 656 $ 706 $ 581 $ 582 $ 632 $ 707
Total variable expenses $ 26,903 $ 28,872 $ 23,974 $ 23,981 $ 25,951 $ 28,902
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 42,599 $ 44,568 $ 39,671 $ 39,678 $ 41,648 $ 44,599
Net income before taxes $ 5,019 $ 6,699 $ 2,506 $ 2,508 $ 4,188 $ 6,707
Assumption:
(1) Change in food and alcohol sales is based on Trailhead sales
(2) Assumes 60:40 food to alcohol ratio

Forecasted year 3 income statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food sales $ 48,000 $ 48,000 $ 51,000 $ 54,000 $ 49,500 $ 51,000
Cost of goods sold $ 15,360 $ 15,360 $ 16,320 $ 17,280 $ 15,840 $ 16,320
Gross food profit $ 32,640 $ 32,640 $ 34,680 $ 36,720 $ 33,660 $ 34,680
Alcohol sales $ 32,000 $ 32,000 $ 34,000 $ 36,000 $ 33,000 $ 34,000
Cost of goods sold $ 6,400 $ 6,400 $ 6,800 $ 7,200 $ 6,600 $ 6,800
Gross alcohol profit $ 25,600 $ 25,600 $ 27,200 $ 28,800 $ 26,400 $ 27,200
Merchandise sales $ 671 $ 651 $ 632 $ 613 $ 594 $ 577
Cost of goods sold $ 336 $ 326 $ 316 $ 307 $ 297 $ 289
Gross merchandise profit $ 336 $ 326 $ 316 $ 307 $ 297 $ 289
Total sales $ 80,671 $ 80,651 $ 85,632 $ 90,613 $ 83,094 $ 85,577
Total cost of goods sold $ 22,096 $ 22,086 $ 23,436 $ 24,787 $ 22,737 $ 23,409
Total gross profit $ 58,576 $ 58,566 $ 62,196 $ 65,827 $ 60,357 $ 62,169
Operating expenses (overhead):
Variable:
Payroll $ 21,781 $ 21,776 $ 23,121 $ 24,466 $ 22,435 $ 23,106
Payroll taxes $ 2,614 $ 2,613 $ 2,774 $ 2,936 $ 2,692 $ 2,773
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,613 $ 1,613 $ 1,713 $ 1,812 $ 1,662 $ 1,712
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 807 $ 807 $ 856 $ 906 $ 831 $ 856
Electric $ 2,470 $ 2,470 $ 2,619 $ 2,768 $ 2,543 $ 2,617
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,613 $ 1,613 $ 1,713 $ 1,812 $ 1,662 $ 1,712
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 807 $ 807 $ 856 $ 906 $ 831 $ 856
Total variable expenses $ 32,818 $ 32,810 $ 34,764 $ 36,719 $ 33,769 $ 34,743
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 48,514 $ 48,507 $ 50,461 $ 52,416 $ 49,465 $ 50,440
Net income before taxes $ 10,061 $ 10,059 $ 11,735 $ 13,411 $ 10,892 $ 11,729
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Food sales $ 48,000 $ 51,000 $ 45,000 $ 45,000 $ 48,000 $ 54,000
Cost of goods sold $ 15,360 $ 16,320 $ 14,400 $ 14,400 $ 15,360 $ 17,280
Gross food profit $ 32,640 $ 34,680 $ 30,600 $ 30,600 $ 32,640 $ 36,720
Alcohol sales $ 32,000 $ 34,000 $ 30,000 $ 30,000 $ 32,000 $ 36,000
Cost of goods sold $ 6,400 $ 6,800 $ 6,000 $ 6,000 $ 6,400 $ 7,200
Gross alcohol profit $ 25,600 $ 27,200 $ 24,000 $ 24,000 $ 25,600 $ 28,800
Merchandise sales $ 559 $ 542 $ 526 $ 510 $ 500 $ 500
Cost of goods sold $ 280 $ 271 $ 263 $ 255 $ 250 $ 250
Gross merchandise profit $ 280 $ 271 $ 263 $ 255 $ 250 $ 250
Total sales $ 80,559 $ 85,542 $ 75,526 $ 75,510 $ 80,500 $ 90,500
Total cost of goods sold $ 22,040 $ 23,391 $ 20,663 $ 20,655 $ 22,010 $ 24,730
Total gross profit $ 58,520 $ 62,151 $ 54,863 $ 54,855 $ 58,490 $ 65,770
Operating expenses (overhead):
Variable:
Payroll $ 21,751 $ 23,096 $ 20,392 $ 20,388 $ 21,735 $ 24,435
Payroll taxes $ 2,610 $ 2,772 $ 2,447 $ 2,447 $ 2,608 $ 2,932
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,611 $ 1,711 $ 1,511 $ 1,510 $ 1,610 $ 1,810
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 806 $ 855 $ 755 $ 755 $ 805 $ 905
Electric $ 2,467 $ 2,616 $ 2,316 $ 2,315 $ 2,465 $ 2,765
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,611 $ 1,711 $ 1,511 $ 1,510 $ 1,610 $ 1,810
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 806 $ 855 $ 755 $ 755 $ 805 $ 905
Total variable expenses $ 32,774 $ 34,729 $ 30,799 $ 30,793 $ 32,751 $ 36,675
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 48,471 $ 50,426 $ 46,496 $ 46,489 $ 48,447 $ 52,371
Net income before taxes $ 10,049 $ 11,725 $ 8,367 $ 8,366 $ 10,043 $ 13,399
Assumption:
(1) Change in food and alcohol sales is based on Trailhead sales
(2) Assumes 60:40 food to alcohol ratio

Projected sales detail

May June July August September October
Year 1
Projected sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food $ 7,500 $ 11,250 $ 15,000 $ 19,500 $ 21,000 $ 22,500
Alcohol $ 5,000 $ 7,500 $ 10,000 $ 13,000 $ 14,000 $ 15,000
Merchandise $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Revenue $ 12,500 $ 18,750 $ 25,000 $ 32,500 $ 35,000 $ 37,500
Year 2
Projected sales Month 13 Month 14 Month 15 Month 16 Month 17 Month 18
Food $ 39,000 $ 39,000 $ 42,000 $ 45,000 $ 40,500 $ 42,000
Alcohol $ 26,000 $ 26,000 $ 28,000 $ 30,000 $ 27,000 $ 28,000
Merchandise $ 500 $ 515 $ 530 $ 546 $ 563 $ 580
Revenue $ 65,500 $ 65,515 $ 70,530 $ 75,546 $ 68,063 $ 70,580
Year 3
Projected sales Month 25 Month 26 Month 27 Month 28 Month 29 Month 30
Food $ 48,000 $ 48,000 $ 51,000 $ 54,000 $ 49,500 $ 51,000
Alcohol $ 32,000 $ 32,000 $ 34,000 $ 36,000 $ 33,000 $ 34,000
Merchandise $ 671 $ 651 $ 632 $ 613 $ 594 $ 577
Revenue $ 80,671 $ 80,651 $ 85,632 $ 90,613 $ 83,094 $ 85,577
November December January February March April Total
Year 1
Projected sales Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Food $ 24,000 $ 25,500 $ 27,000 $ 28,500 $ 31,500 $ 34,500 $ 267,750
Alcohol $ 16,000 $ 17,000 $ 18,000 $ 19,000 $ 21,000 $ 23,000 $ 178,500
Merchandise $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Revenue $ 40,000 $ 42,500 $ 45,000 $ 47,500 $ 52,500 $ 57,500 $ 446,250
Year 2
Projected sales Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 Total
Food $ 39,000 $ 42,000 $ 34,500 $ 34,500 $ 37,500 $ 42,000 $ 477,000
Alcohol $ 26,000 $ 28,000 $ 23,000 $ 23,000 $ 25,000 $ 28,000 $ 318,000
Merchandise $ 597 $ 615 $ 633 $ 652 $ 672 $ 692 $ 7,096
Revenue $ 65,597 $ 70,615 $ 58,133 $ 58,152 $ 63,172 $ 70,692 $ 802,096
Year 3
Projected sales Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 Total
Food $ 48,000 $ 51,000 $ 45,000 $ 45,000 $ 48,000 $ 54,000 $ 592,500
Alcohol $ 32,000 $ 34,000 $ 30,000 $ 30,000 $ 32,000 $ 36,000 $ 395,000
Merchandise $ 559 $ 542 $ 526 $ 510 $ 500 $ 500 $ 6,876
Revenue $ 80,559 $ 85,542 $ 75,526 $ 75,510 $ 80,500 $ 90,500 $ 994,376
Assumption:
(1) Change in food and alcohol sales is based on Trailhead sales
(2) Assumes 60:40 food to alcohol ratio

Break-even forecasted annual income statement

Year 1 Year 2 Year 3 Assumptions
Food sales $ 361,698 $ 360,333 $ 360,375 Data from Typical Bar & Restaurant according to Holder Group
Cost of goods sold $ 115,743 $ 115,307 $ 115,320 32% of food sales
Gross food profit $ 245,955 $ 245,026 $ 245,055
Alcohol sales $ 241,132 $ 240,222 $ 240,250 60:40 Ratio of Food to Alcohol (from Saint Louis brewpubs)
Cost of goods sold $ 48,226 $ 48,044 $ 48,050 20% of alcohol sales (percentage from US Foods)
Gross alcohol profit $ 192,906 $ 192,178 $ 192,200
Merchandise sales $ 0 $ 7,096 $ 6,876
Cost of goods sold $ 0 $ 3,548 $ 3,438 50% of merchandise sales
Gross merchandise profit $ 0 $ 3,548 $ 3,438
Total sales $ 602,830 $ 607,651 $ 607,501
Total cost of goods sold $ 163,970 $ 166,899 $ 166,808
Total gross profit $ 438,860 $ 440,752 $ 440,693
Operating expenses (overhead):
Variable:
Payroll $ 162,764 $ 164,066 $ 164,025 27% of total sales
Payroll taxes $ 19,532 $ 19,688 $ 19,683 12% of payroll
Incentives $ 12,000 $ 12,000 $ 12,000 $ 1,000 average monthly incentives to employees
Advertising $ 12,057 $ 12,153 $ 12,150 2% of total sales
Legal $ 200 $ 200 $ 200
Accounting $ 6,028 $ 6,077 $ 6,075 1% of total sales
Electric $ 18,685 $ 18,830 $ 18,825 3% of total sales $600 for Brewing System Power (www.jvnw.com)
Telephone $ 300 $ 300 $ 300
Repair & maintenance $ 12,057 $ 12,153 $ 12,150 2% of total sales
Gas $ 850 $ 850 $ 850
Supplies $ 6,028 $ 6,077 $ 6,075 1% of total sales
Total variable expenses $ 250,500 $ 252,392 $ 252,333
Fixed:
Officer's salaries NA NA NA
Officer's payroll taxes NA NA NA
Insurance $ 14,000 $ 14,000 $ 14,000
Loan payment $ 103,164 $ 103,164 $ 103,164 $ 1,120,000 Loan; 6%; 20 years
Investor payment $ 32,424 $ 32,424 $ 32,424 $ 280,000 Investment; 10%; 20 years
Interest $ 6,000 $ 6,000 $ 6,000
Depreciation $ 30,000 $ 30,000 $ 30,000 $ 600,000 in equipment; Straight Line; 20 years
Licenses & permits $ 2,772 $ 2,772 $ 2,772
Total fixed expenses $ 188,360 $ 188,360 $ 188,360
Total variable expenses $ 250,500 $ 252,392 $ 252,333
Total expenses $ 438,860 $ 440,752 $ 440,693
Net income before taxes $ 0 $ 0 $ 0

Forecasted year 1 break even income statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food sales $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142
Cost of goods sold $ 9,645 $ 9,645 $ 9,645 $ 9,645 $ 9,645 $ 9,645
Gross food profit $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496
Alcohol sales $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094
Cost of goods sold $ 4,019 $ 4,019 $ 4,019 $ 4,019 $ 4,019 $ 4,019
Gross alcohol profit $ 16,075 $ 16,075 $ 16,075 $ 16,075 $ 16,075 $ 16,075
Merchandise sales $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Cost of goods sold $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Gross merchandise profit $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total sales $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236
Total cost of goods sold $ 13,664 $ 13,664 $ 13,664 $ 13,664 $ 13,664 $ 13,664
Total gross profit $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572
Operating expenses (overhead):
Variable:
Payroll $ 13,564 $ 13,564 $ 13,564 $ 13,564 $ 13,564 $ 13,564
Payroll taxes $ 1,628 $ 1,628 $ 1,628 $ 1,628 $ 1,628 $ 1,628
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 502 $ 502 $ 502 $ 502 $ 502 $ 502
Electric $ 1,557 $ 1,557 $ 1,557 $ 1,557 $ 1,557 $ 1,557
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 502 $ 502 $ 502 $ 502 $ 502 $ 502
Total variable expenses $ 20,875 $ 20,875 $ 20,875 $ 20,875 $ 20,875 $ 20,875
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572
Net income before taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Food sales $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142
Cost of goods sold $ 9,645 $ 9,645 $ 9,645 $ 9,645 $ 9,645 $ 9,645
Gross food profit $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496
Alcohol sales $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094
Cost of goods sold $ 4,019 $ 4,019 $ 4,019 $ 4,019 $ 4,019 $ 4,019
Gross alcohol profit $ 16,075 $ 16,075 $ 16,075 $ 16,075 $ 16,075 $ 16,075
Merchandise sales $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Cost of goods sold $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Gross merchandise profit $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total sales $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236
Total cost of goods sold $ 13,664 $ 13,664 $ 13,664 $ 13,664 $ 13,664 $ 13,664
Total gross profit $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572
Operating expenses (overhead):
Variable:
Payroll $ 13,564 $ 13,564 $ 13,564 $ 13,564 $ 13,564 $ 13,564
Payroll taxes $ 1,628 $ 1,628 $ 1,628 $ 1,628 $ 1,628 $ 1,628
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 502 $ 502 $ 502 $ 502 $ 502 $ 502
Electric $ 1,557 $ 1,557 $ 1,557 $ 1,557 $ 1,557 $ 1,557
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005 $ 1,005
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 502 $ 502 $ 502 $ 502 $ 502 $ 502
Total variable expenses $ 20,875 $ 20,875 $ 20,875 $ 20,875 $ 20,875 $ 20,875
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572 $ 36,572
Net income before taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Forecasted year 2 break even income statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food sales $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028
Cost of goods sold $ 9,609 $ 9,609 $ 9,609 $ 9,609 $ 9,609 $ 9,609
Gross food profit $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496
Alcohol sales $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019
Cost of goods sold $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004
Gross alcohol profit $ 16,015 $ 16,015 $ 16,015 $ 16,015 $ 16,015 $ 16,015
Merchandise sales $ 591 $ 591 $ 591 $ 591 $ 591 $ 591
Cost of goods sold $ 296 $ 296 $ 296 $ 296 $ 296 $ 296
Gross merchandise profit $ 296 $ 296 $ 296 $ 296 $ 296 $ 296
Total sales $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638
Total cost of goods sold $ 13,908 $ 13,908 $ 13,908 $ 13,908 $ 13,908 $ 13,908
Total gross profit $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729
Operating expenses (overhead):
Variable:
Payroll $ 13,672 $ 13,672 $ 13,672 $ 13,672 $ 13,672 $ 13,672
Payroll taxes $ 1,641 $ 1,641 $ 1,641 $ 1,641 $ 1,641 $ 1,641
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Electric $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Total variable expenses $ 21,033 $ 21,033 $ 21,033 $ 21,033 $ 21,033 $ 21,033
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729
Net income before taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Food sales $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028
Cost of goods sold $ 9,609 $ 9,609 $ 9,609 $ 9,609 $ 9,609 $ 9,609
Gross food profit $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496 $ 20,496
Alcohol sales $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019
Cost of goods sold $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004
Gross alcohol profit $ 16,015 $ 16,015 $ 16,015 $ 16,015 $ 16,015 $ 16,015
Merchandise sales $ 591 $ 591 $ 591 $ 591 $ 591 $ 591
Cost of goods sold $ 296 $ 296 $ 296 $ 296 $ 296 $ 296
Gross merchandise profit $ 296 $ 296 $ 296 $ 296 $ 296 $ 296
Total sales $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638
Total cost of goods sold $ 13,908 $ 13,908 $ 13,908 $ 13,908 $ 13,908 $ 13,908
Total gross profit $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729
Operating expenses (overhead):
Variable:
Payroll $ 13,672 $ 13,672 $ 13,672 $ 13,672 $ 13,672 $ 13,672
Payroll taxes $ 1,641 $ 1,641 $ 1,641 $ 1,641 $ 1,641 $ 1,641
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Electric $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Total variable expenses $ 21,033 $ 21,033 $ 21,033 $ 21,033 $ 21,033 $ 21,033
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729 $ 36,729
Net income before taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Forecasted year 3 break even income statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food sales $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031
Cost of goods sold $ 9,610 $ 9,610 $ 9,610 $ 9,610 $ 9,610 $ 9,610
Gross food profit $ 20,421 $ 20,421 $ 20,421 $ 20,421 $ 20,421 $ 20,421
Alcohol sales $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021
Cost of goods sold $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004
Gross alcohol profit $ 16,017 $ 16,017 $ 16,017 $ 16,017 $ 16,017 $ 16,017
Merchandise sales $ 573 $ 573 $ 573 $ 573 $ 573 $ 573
Cost of goods sold $ 287 $ 287 $ 287 $ 287 $ 287 $ 287
Gross merchandise profit $ 287 $ 287 $ 287 $ 287 $ 287 $ 287
Total sales $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625
Total cost of goods sold $ 13,901 $ 13,901 $ 13,901 $ 13,901 $ 13,901 $ 13,901
Total gross profit $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724
Operating expenses (overhead):
Variable:
Payroll $ 13,669 $ 13,669 $ 13,669 $ 13,669 $ 13,669 $ 13,669
Payroll taxes $ 1,640 $ 1,640 $ 1,640 $ 1,640 $ 1,640 $ 1,640
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Electric $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Total variable expenses $ 21,028 $ 21,028 $ 21,028 $ 21,028 $ 21,028 $ 21,028
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724
Net income before taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Food sales $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031
Cost of goods sold $ 9,610 $ 9,610 $ 9,610 $ 9,610 $ 9,610 $ 9,610
Gross food profit $ 20,421 $ 20,421 $ 20,421 $ 20,421 $ 20,421 $ 20,421
Alcohol sales $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021
Cost of goods sold $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004 $ 4,004
Gross alcohol profit $ 16,017 $ 16,017 $ 16,017 $ 16,017 $ 16,017 $ 16,017
Merchandise sales $ 573 $ 573 $ 573 $ 573 $ 573 $ 573
Cost of goods sold $ 287 $ 287 $ 287 $ 287 $ 287 $ 287
Gross merchandise profit $ 287 $ 287 $ 287 $ 287 $ 287 $ 287
Total sales $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625
Total cost of goods sold $ 13,901 $ 13,901 $ 13,901 $ 13,901 $ 13,901 $ 13,901
Total gross profit $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724
Operating expenses (overhead):
Variable:
Payroll $ 13,669 $ 13,669 $ 13,669 $ 13,669 $ 13,669 $ 13,669
Payroll taxes $ 1,640 $ 1,640 $ 1,640 $ 1,640 $ 1,640 $ 1,640
Incentives $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Advertising $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Legal $ 17 $ 17 $ 17 $ 17 $ 17 $ 17
Accounting $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Electric $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569
Telephone $ 25 $ 25 $ 25 $ 25 $ 25 $ 25
Repair & maintenance $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013 $ 1,013
Gas $ 71 $ 71 $ 71 $ 71 $ 71 $ 71
Supplies $ 506 $ 506 $ 506 $ 506 $ 506 $ 506
Total variable expenses $ 21,028 $ 21,028 $ 21,028 $ 21,028 $ 21,028 $ 21,028
Fixed:
Officer's salaries NA NA NA NA NA NA
Officer's payroll taxes NA NA NA NA NA NA
Insurance $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167 $ 1,167
Loan payment $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597 $ 8,597
Investor payment $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702 $ 2,702
Interest $ 500 $ 500 $ 500 $ 500 $ 500 $ 500
Depreciation $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500
Licenses & permits $ 231 $ 231 $ 231 $ 231 $ 231 $ 231
Total fixed expenses $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697 $ 15,697
Total opearating expenses $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724 $ 36,724
Net income before taxes $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Break even projected sales detailed

May June July August September October
Year 1
Projected sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Food $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142
Alcohol $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094
Merchandise $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Revenue $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236
Year 2
Projected sales Month 13 Month 14 Month 15 Month 16 Month 17 Month 18
Food $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028
Alcohol $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019
Merchandise $ 591 $ 591 $ 591 $ 591 $ 591 $ 591
Revenue $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638
Year 3
Projected sales Month 25 Month 26 Month 27 Month 28 Month 29 Month 30
Food $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031
Alcohol $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021
Merchandise $ 573 $ 573 $ 573 $ 573 $ 573 $ 573
Revenue $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625
November December January February March April Total
Year 1
Projected sales Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Food $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 30,142 $ 361,698
Alcohol $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 20,094 $ 241,132
Merchandise $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Revenue $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 50,236 $ 602,830
Year 2
Projected sales Month 19 Month 20 Month 21 Month 22 Month 23 Month 24 Total
Food $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 30,028 $ 360,333
Alcohol $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 20,019 $ 240,222
Merchandise $ 591 $ 591 $ 591 $ 591 $ 591 $ 591 $ 7,096
Revenue $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 50,638 $ 607,651
Year 3
Projected sales Month 31 Month 32 Month 33 Month 34 Month 35 Month 36 Total
Food $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 30,031 $ 360,375
Alcohol $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 20,021 $ 240,250
Merchandise $ 573 $ 573 $ 573 $ 573 $ 573 $ 573 $ 6,876
Revenue $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 50,625 $ 607,501

Forecasted cash flow start-up operations

Prior to month -3 Month -3 Month -2 Month -1 Month 0 Total
Net income before taxes (without COGS) ($ 5,576) ($ 9,150) ($ 9,150) ($ 9,150) ($ 30,397) ($ 63,423)
Change in working capital accounts
Current assets
    Cash/accounts receivable: $ 1,400,000 $ 0 $ 0 $ 0 $ 0 $ 1,400,000
        Bank loan $ 1,120,000 $ 0 $ 0 $ 0 $ 0 $ 1,120,000
        Capital equity $ 280,000 $ 0 $ 0 $ 0 $ 0 $ 280,000
Current liablilities
    Accounts payable: $ 0 $ 1,219,400 $ 0 $ 0 $ 20,000 $ 1,239,400
        Building & real estate $ 0 $ 500,000 $ 0 $ 0 $ 0 $ 500,000
        Brew system $ 0 $ 417,000 $ 0 $ 0 $ 0 $ 417,000
        Equipment/furniture $ 0 $ 100,000 $ 0 $ 0 $ 0 $ 100,000
        Build-out $ 0 $ 182,400 $ 0 $ 0 $ 0 $ 182,400
        Inventory $ 0 $ 0 $ 0 $ 0 $ 20,000 $ 20,000
        Other fees $ 0 $ 20,000 $ 0 $ 0 $ 0 $ 20,000
Total changes in current accounts $ 1,400,000 ($ 1,219,400) $ 0 $ 0 ($ 20,000) $ 160,600
Net operating cash flows $ 1,394,424 ($ 1,228,550) ($ 9,150) ($ 9,150) ($ 50,397) $ 97,177
Beginning cash balance $ 1,400,000 $ 1,394,424 $ 165,874 $ 156,724 $ 147,574 $ 1,400,000
Ending cash balance $ 1,394,424 $ 165,874 $ 156,724 $ 147,574 $ 97,177 $ 97,177

Year 1 forecasted cash flow statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Net income before taxes ($ 9,264) ($ 5,467) ($ 1,669) $ 2,888 $ 4,407 $ 5,926
Change in working capital accounts
Current assets
    Cash/accounts receivable $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Current liablilities
    Accounts payable $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Changes in current accounts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net operating cash flows ($ 9,264) ($ 5,467) ($ 1,669) $ 2,888 $ 4,407 $ 5,926
Beginning cash balance $ 97,177 $ 87,913 $ 82,447 $ 80,777 $ 83,665 $ 88,072
Ending cash balance $ 87,913 $ 82,447 $ 80,777 $ 83,665 $ 88,072 $ 93,998
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Net income before taxes $ 7,445 $ 8,964 $ 10,483 $ 12,002 $ 15,040 $ 18,078 $ 68,832
Change in working capital accounts
Current assets
Cash/accounts receivable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Current liablilities
Accounts payable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Changes in current accounts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net operating cash flows $ 7,445 $ 8,964 $ 10,483 $ 12,002 $ 15,040 $ 18,078 $ 166,009
Beginning cash balance $ 93,998 $ 101,443 $ 110,407 $ 120,889 $ 132,891 $ 147,931 $ 97,177
Ending cash balance $ 101,443 $ 110,407 $ 120,889 $ 132,891 $ 147,931 $ 166,009 $ 166,009

Year 2 forecasted cash flow statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Net income before taxes $ 22,939 $ 22,948 $ 25,995 $ 29,043 $ 24,496 $ 26,025
Change in working capital accounts
Current assets
Cash/accounts receivable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Current liablilities
Accounts payable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Changes in current accounts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net operating cash flows $ 22,939 $ 22,948 $ 25,995 $ 29,043 $ 24,496 $ 26,025
Beginning cash balance $ 166,009 $ 188,948 $ 211,895 $ 237,890 $ 266,933 $ 291,429
Ending cash balance $ 188,948 $ 211,895 $ 237,890 $ 266,933 $ 291,429 $ 317,454
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Net income before taxes $ 22,998 $ 26,047 $ 18,462 $ 18,474 $ 21,524 $ 26,093 $ 285,043
Change in working capital accounts
Current assets
Cash/accounts receivable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Current liablilities
Accounts payable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Changes in current accounts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net operating cash flows $ 22,998 $ 26,047 $ 18,462 $ 18,474 $ 21,524 $ 26,093 $ 451,052
Beginning cash balance $ 317,454 $ 340,451 $ 366,498 $ 384,960 $ 403,434 $ 424,959 $ 166,009
Ending cash balance $ 340,451 $ 366,498 $ 384,960 $ 403,434 $ 424,959 $ 451,052 $ 451,052

Year 3 forecasted cash flow statement

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Net income before taxes $ 32,157 $ 32,144 $ 35,171 $ 38,197 $ 33,629 $ 35,137
Change in working capital accounts
Current assets
Cash/accounts receivable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Current liablilities
Accounts payable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Changes in current accounts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net operating cash flows $ 32,157 $ 32,144 $ 35,171 $ 38,197 $ 33,629 $ 35,137
Beginning cash balance $ 451,052 $ 483,208 $ 515,353 $ 550,524 $ 588,721 $ 622,350
Ending cash balance $ 483,208 $ 515,353 $ 550,524 $ 588,721 $ 622,350 $ 657,487
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Net income before taxes $ 32,088 $ 35,116 $ 29,030 $ 29,021 $ 32,053 $ 38,129 $ 401,872
Change in working capital accounts
Current assets
Cash/accounts receivable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Current liablilities
Accounts payable
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Changes in current accounts $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net operating cash flows $ 32,088 $ 35,116 $ 29,030 $ 29,021 $ 32,053 $ 38,129 $ 852,924
Beginning cash balance $ 657,487 $ 689,576 $ 724,692 $ 753,722 $ 782,743 $ 814,795 $ 451,052
Ending cash balance $ 689,576 $ 724,692 $ 753,722 $ 782,743 $ 814,795 $ 852,924 $ 852,924

Balance sheet

Year 1 Year 2 Year 3
Year end balance sheet
Assets
Cash $ 166,009 $ 451,052 $ 852,924
Inventory $ 20,000 $ 20,000 $ 20,000
Fixed assets $ 1,219,400 $ 1,219,400 $ 1,219,400
Total assets $ 1,405,409 $ 1,690,452 $ 2,092,324
Liabilities
Accounts payable $ 0 $ 0 $ 0
Accrued expense $ 0 $ 0 $ 0
Owner's equity
Founder invested capital $ 280,000 $ 280,000 $ 280,000
Bank loan $ 1,120,000 $ 1,120,000 $ 1,120,000
Retained earnings $ 5,409 $ 290,452 $ 692,324
Total liabilities and shareholder's equity $ 1,405,409 $ 1,690,452 $ 2,092,324

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Robinson, Zachary. "Brewpub." Business Plans Handbook. 2006. Encyclopedia.com. 26 Aug. 2016 <http://www.encyclopedia.com>.

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Robinson, Zachary. "Brewpub." Business Plans Handbook. 2006. Retrieved August 26, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3442600009.html