Event Title
Faculty Mentor
Tom Graves
Department (e.g. History, Chemistry, Finance, etc.)
Management
College (e.g. College of Engineering, College of Arts & Sciences, Haslam College of Business, etc.)
Haslam College of Business
Year
2019
Abstract
Industry Analysis
One Shot Pub proposes to merge two mature industries into one lucrative one. The average bar makes a profit of $5,000 monthly, but with game commissions, 3D printing, and private room reservations we will increase that to roughly $8,000 a month in average profit with the peak season coming in the late summer and early winter months. The biggest factors to utilize to increase those earnings would be to sell more 3D printed goods and to carefully monitor the drink prices and categorize them into winners, losers, re-pricers, and too popular to have a stockout based on pour cost.
Market Analysis
Atlanta is a strong market in nerd culture and bar attractiveness. There are around one thousand other competitors in the area, but with no other venues targeting the same niche market it will not be difficult to carve out a core group of loyal customers. Furthermore, Atlanta ranks in the top twenty-five cities in the country in terms of alcohol spending per capita which means even carving out a small portion of the market will be fruitful.
Marketing Plan
Our annual marketing budget is currently listed to reach $15,000 annually by year 3. OSP will also offer a reward program for customers who are constantly making use of our private rooms. The pricing of drinks, private rooms, and happy hour deals fluctuates based on the day of the week.
Operations and Service Plan
Partnerships are key for One Shot Pub’s profitability, with the three most crucial partnership opportunities being with local food trucks/food delivery services, game developers, and craft beer manufacturers. OSP’s employees will make well-above minimum wage- and even more than the owner for the first several years- but will be expected to be well-versed in game systems and cocktail creation.
Financial Projections
The company expects to be cash positive from operations alone within its first two quarters due to its various revenue streams in a lucrative market and low variable costs once the bar is established. The company will focus on minimizing inventory costs- the largest variable cost for the bar- through Economic Order Quantity (EOQ) analyses for each product. OSP will also evaluate the condition of its games on a regular basis and restock quarterly while donating the most worn games to local schools to spark creativity and a love for games at an early age.
Investment Funds Allocation
The $200,000 initial investment will largely be used to establish the bar. Setting up the equipment, building the private rooms, procuring a reserve of top-quality games and alcohol, and acquiring a liquor license all takes upwards of $130,000. The company will also need at minimum $5,000 to build a quality website which can function as an online store, make reservations for tables, and look appealing enough to get consumers in the bar before tacking on other marketing costs like adverts and Search Engine Optimization (SEO). The remainder will go to help the pub’s cashflow in its early quarters before revenue begins pouring in.
One Shot Pub: A Business Plan
Industry Analysis
One Shot Pub proposes to merge two mature industries into one lucrative one. The average bar makes a profit of $5,000 monthly, but with game commissions, 3D printing, and private room reservations we will increase that to roughly $8,000 a month in average profit with the peak season coming in the late summer and early winter months. The biggest factors to utilize to increase those earnings would be to sell more 3D printed goods and to carefully monitor the drink prices and categorize them into winners, losers, re-pricers, and too popular to have a stockout based on pour cost.
Market Analysis
Atlanta is a strong market in nerd culture and bar attractiveness. There are around one thousand other competitors in the area, but with no other venues targeting the same niche market it will not be difficult to carve out a core group of loyal customers. Furthermore, Atlanta ranks in the top twenty-five cities in the country in terms of alcohol spending per capita which means even carving out a small portion of the market will be fruitful.
Marketing Plan
Our annual marketing budget is currently listed to reach $15,000 annually by year 3. OSP will also offer a reward program for customers who are constantly making use of our private rooms. The pricing of drinks, private rooms, and happy hour deals fluctuates based on the day of the week.
Operations and Service Plan
Partnerships are key for One Shot Pub’s profitability, with the three most crucial partnership opportunities being with local food trucks/food delivery services, game developers, and craft beer manufacturers. OSP’s employees will make well-above minimum wage- and even more than the owner for the first several years- but will be expected to be well-versed in game systems and cocktail creation.
Financial Projections
The company expects to be cash positive from operations alone within its first two quarters due to its various revenue streams in a lucrative market and low variable costs once the bar is established. The company will focus on minimizing inventory costs- the largest variable cost for the bar- through Economic Order Quantity (EOQ) analyses for each product. OSP will also evaluate the condition of its games on a regular basis and restock quarterly while donating the most worn games to local schools to spark creativity and a love for games at an early age.
Investment Funds Allocation
The $200,000 initial investment will largely be used to establish the bar. Setting up the equipment, building the private rooms, procuring a reserve of top-quality games and alcohol, and acquiring a liquor license all takes upwards of $130,000. The company will also need at minimum $5,000 to build a quality website which can function as an online store, make reservations for tables, and look appealing enough to get consumers in the bar before tacking on other marketing costs like adverts and Search Engine Optimization (SEO). The remainder will go to help the pub’s cashflow in its early quarters before revenue begins pouring in.