wine bar business plan

A Business Plan For A
Local Wine Bar
By: Team 4k
Jackie Danchek, Adam DeBellis,
Nick Fedak,
Julie Novelli, Tracey Pasha
Prepared For Clients
Renee & Jim Cook
Prepared For Professors:
Jeff Anderson, Jamie Carter, Mike

Letter of
(412) 913-9720 Transmittal
Jd167107@ohio.edu

November 6, 2009

Mr. and Mrs. Jim and Renee Cook
3150 North Sheffield
Chicago, IL 60657

Mr. and Mrs. Cook:

Enclosed is a copy of a “A Small Business Plan for a Local Wine Bar.” This report is a summary of our
findings on the costs and benefits of opening a wine bar in Athens, Ohio. Our wine bar will be called “Put A
Cork In It.” Our report has been prepared for you as well as our four professors. Funding for this report was
authorized on October 15, 2009 by the Ohio University College of Business. We completed our report on
schedule while meeting all of our original objectives as well as any new objectives we had been given.

As promised in our proposal, we have found that overall, implementing a wine bar in Athens, Ohio would be
a successful business venture. We believe that our wine bar will be successful for many reasons. Most
importantly, there is a very low level of competition for wine bars. Currently, there are no other businesses
that offer the same products at the same level that we do. Our only other competitors would be Bella Vino
wine shop as well as Stephen’s and Zoe’s fine dining restaurants. We believe that we have chosen a prime
location that provides plenty of parking for your customers. While speaking with both of you it was implied
that you did not wish to hire any other employee’s. After extensive research we realize that it would be
difficult to run a successful business with just two people. It is important to have good customer service
when running a business, and with only two employees this could be very difficult. We recommend that
you hire more employees in order to succeed. Overall, we believe our benefits outweigh our costs and that
Put A Cork In It will be a profitable endeavor.

If you have any questions and/or comments regarding the interpretation of this report please feel free to
contact us at the number above. Thank you for your funding of this project and we look forward to working
with you again soon.

Sincerely,

Group 4: Jaclyn Danchek, Tracey Pasha, Adam DeBellis, Nicholas Fedak, and Julianne Novelli

Executive
Summary
The purpose of this report is to determine the best potential opportunity for a new business venture in
the Athens community. A feasibility analysis was conducted for the potential operation of a wine bar.
The goal of our study was to focus on our assigned operation of a wine bar. Our analysis includes a
start up plan detailing the initial and ongoing operation costs as well as marketing efforts to make this
possibility a reality. The objective of this report is to understand the inputs needed to take part in this
business enterprise and along with the most suitable and effective means to bring this wine bar to the
local community and establish interest, knowledge, and prolong growth.

Industry Analysis
This report will begin with an industry analysis that will describe the growing popularity of wine bars in
recent years. When discussing the potential for a company to enter into an industry it is vital to
examine Porter’s Five Forces along with a S.W.O.T analysis to understand the barriers and potential
success factors for the prospective client. This section will examine these factors to provide for a
better understanding of the achievability of such a business opportunity.

Marketing Analysis
Following the industry analysis will be a breakdown of the marketing analysis for this business venture.
This section will provide strong graphics that represent key trends in the wine market for the United
States, Ohio, and Athens. Along with these market representations, this report will provide
information relating to the proposed project’s target market, market description, and strategic
opportunities. Individual promotion strategies along with a Customer Relationship Management
model will also be provided.

Business Plan
The business plan section of this report will provide all the necessary information needed detailing the
location, proposed wine and food menu items, and remodeling plans. The business plan will also
provide the information needed for day-to-day operations including licensing, permits, personnel, and
hours of operation. Along with the business plan will be a detailed list of financials including start-up
costs, operating expenses, balance sheets, income statements, and forecasting.

Conclusion
The purpose of this report was to determine the potential for opening a wine bar in Athens, Ohio. The
sections that have been included in this report detail all of the information that one would need to
determine the possibility of this proposed business opportunity.

Table Of
Contents

Introduction……………………………………………………………………………..5
Industry Analysis………………………………………………………………………9
Porter’s 5 Forces……………………………….10
Competition……………………………………..12
S.W.O.T Analysis………………………………..13
Marketing Analysis………………………………………………………………….15
Market Trends………………………………….15
Target Market…………………………………..20
Marketing Mix………………………………….21
Promotion Strategies……………………….22
Customer Relationship Management.27
Business Plan…………………………………………………………………………28
Menu……………………………………………….29
Pricing Strategies……………………………..34
Location…………………………………………..36
Operational Plan……………………….......45
Financial Analysis……………………………………………………………………52
Conclusion……………………………………………………………………………..54
References……………………………………………………………………………..55
Appendices…………………………………………………………………………….58

5

Enjoyable Atmosphere, Excellent Food,
Exquisite Wine…
…Bring Them All Toge
Introdu Industry Marketing Business Financia Conclusi
ction Analysis Analysis Plan ls on

Introduction

The purpose of this report is to determine the best potential
opportunity for a new business venture in the Athens community. A
feasibility analysis was conducted for the potential operation of a wine
bar. The goal of our study was to focus on our assigned operation of a
wine bar. Our analysis includes a start up plan detailing the initial and
ongoing operation costs as well as marketing efforts to make this
possibility a reality. The objective of this report is to understand the
inputs needed to take part in this business enterprise along with the
most suitable and effective means to bring this wine bar to the local
community and establish interest, knowledge, and prolong growth.

6

Exquisite Wine…

Proposed Company Name
and Logo
After consulting with the clients and researching potential options, we believe the
proposed name of “Put A Cork In It” is the best option. Our goal was to create a
name and logo that best represents the business.

Our objective was to create a wine bar and restaurant that
conveys a sense of a fun, welcoming, and enjoyable
atmosphere. It was our job to create a modern name and
logo. We believe that converting from our original idea of
“Cook’s Corner” and alternate logo to the new proposed
name and logo is the best way to transmit these ideas.

The color scheme
selected demonstrates
the sense of style and
atmosphere wanted for
the business The wine man is included
to portray a modern feel to
the company logo. Athens
is a very trendy
environment and this will
help the business “fit” in
Cursive font helps
portray a
sophisticated feeling
to a somewhat
trendy company
name

7

Exquisite Wine…

Proposed Company Name
and Logo

It was our train of thought that a unique name is a necessity for this particular
situation. Since this proposed business will practically be the only one of its kind, it
is imperative that we are able to make the business as recognizable as possible.

When a potential customer heard the name “Cook’s Corner” it may very well be
portrayed as a place to grab a bite to eat and not represent the main focus of being
a wine bar. When a potential customer hears the name “Put A Cork In It” they will
immediately relate that with somewhere to enjoy a fine glass of wine, and that is
what needs to be accomplished.

The name may come across to some as possibly having some negative connotations
or some may develop skewed perceptions, but the addition of our tag line will
supplement a level of class that complements the name. Wherever our name and
logo appear, whether it be in an advertisement or a review, the tagline will be
included to fill the need of sophistication.

8

Exquisite Wine…

Mission & Vision
Statement

A new taste in town… “Put A Cork In It” is a
place for the relaxed, easy going, and
harmonious members of the Athens
community. We want the community to
have a new favorite hangout, whether
you’re relaxing with friends and colleagues
or perusing a romantic evening. “Put A
Cork In It” combines wonderful style,
sophistication and genuine hospitality to
create a truly unique experience. We offer
great small entrees, appetizers, soups and
salads, and homemade desserts with the
combination of well priced wines. We work
with local businesses and farmers to bring
you the finest most natural and best tasting
products.

Our vision is to have a positive impact on
the Athens Community while providing
them with an upscale atmosphere for
professors, graduate students, and other
members of the community to enjoy wine
and each others company.

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Exquisite Wine…

Growing Popularity Of
Wine Bars
Wine Bars began to gain popularity in the 1990’s
and have continued to prosper in recent years. By
the year 2000, wine bars became very popular,
specifically in metropolitan areas. Wine bars offer
a relaxing environment that provides an alternative
to people looking for a more sophisticated
atmosphere than a typical bar scene.

Traditionally, wine bars strictly offered wines and
small appetizers such as cheeses or desserts.
However, modern wine bars have now expanded
to offer larger entrées. Based on the growing
industry, the opportunity for a wine bar in Athens,
Ohio seems to be a successful business venture.

With wine tastings and buy the glass purchasing,
customers are able to sample the product before
they purchase a whole bottle. It offers an intimate
appeal for those who are looking for a comfortable
setting to spend time with friends, family or a
significant other.

10

Exquisite Wine…

Porter’s 5 Forces Model

Bargaining Power Bargaining
of Supplier Power of Buyers
-Very High -Very Low
Competitive Rivalry
-Stephens
-Bella Vino
-Zoe’s

Threat of New Threat of
Entrants Substitutes
- Low - Low

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Exquisite Wine…

Porter’s 5 Forces
Breakdown
Bargaining Power of Supplier Bargaining Power of Customers

As a supplier, the bargaining power is very high. Being The customers have very low bargaining power
the only wine bar in Athens, it provides a because there are no other wine bars which they can
specialization in wine which no other businesses in go to as an alternative. Wine is an expensive good so
Athens provide. Since there are numerous wine buyers do not have much influence on lowering the
distributors, they have the ability to choose between price.
many distributors which gives them more control
over inventory costs.

Threat of New Entrants Threat of Substitutes
The threat of new entrants is very low. With no liquor The threat of substitutes for a wine bar is very low
licenses currently available and low levels of income in because there are only three other places in Athens
the Athens community, the chance of companies that provide food and wine in the same way that our
wanting to invest in a wine bar is almost non-existent. company will. Also these places do not offer as big of a
wine selection as we will. The threat of substitutes for
other alcohol serving locations is fairly high. Instead of
coming to a place that would almost exclusively serve
wine, they have the option to walk down court street
and take their pick from one of the many bars that
serve all of their favorite beers and liquors.

Competitive Rivalry
Our firm will provide a competitive advantage over our
rivals. In this case our three main rivals would be Zoe's,
Bella Vino, and Stephen's. We will be able to offer our
customers a much larger selection of wines ranging
from domestic to international wines. We will rise
above our competition by providing numerous
promotions that will invite our potential customers to
come and enjoy all of the great things we have to offer:
wine tastings, wines from around the world, college ID
night, all in the confines of our inviting, modern,
sociable setting.

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Exquisite Wine…

Competition

Bella Vino
Location: 22 West Stimson Street
•Largest Selection of Organic Wines in
Southeast Ohio
•Offers regular wine tastings
•Offers
•Organic & Specialty Wines
•Beers & Spirits
•Wine Accessories

Stephen’s Restaurant
Location: 66 North Court Street
•Offers a seasonal menu, with daily specials
and desserts
• Bar offers Athens largest wine list
•Casual to Fine Dining

Zoe’s Restaurant
Location: 24 1/2 East State Street
•Contemporary Fine Dining

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Exquisite Wine…

S.W.O.T Analysis
Strengths
Knowledge and Experience: Since it
will be owned and operated by Ohio
University graduates, they have
knowledge of the community and
a good understanding of the
atmosphere and people. Mr. Cook
currently works in the wine industry
for a wine distribution company so he
is able to offer his expertise, giving
him a competitive advantage over
other possible competitors who may
Weaknesses
not possess the same knowledge.
Setting: Not your typical wine bar crowd or
Location: Being located on West Union atmosphere: Uptown has
Street puts the business in one of the numerous existing bars geared toward
most trafficked areas in Athens. This college students which have much
location also provides lots of parking so External Forces
more potential of being successful. Wine
that it is easily accessible to our bars are something that have
customers. been gaining popularity in metropolitan
areas. Since Athens is more of a
rural area it will be difficult to attract
customers that wish to spend a lot of
money there.
Liquor License: There is currently no available
liquor licenses in Athens County. Options for
achieving a license include:
•Purchase an existing one from a current owner
•Buy one from a surrounding county and
transfer it over by proving it will help the local
economy.

14

Exquisite Wine…

S.W.O.T Analysis
Opportunities
Low Competition: Put a Cork in it has
the opportunity to become the number
one wine establishment in the Athens
area. With Zoe's and Stephen's being
the only other places that offer wine
and dine, our company has the chance
to come into Athens and provide a
greater selection of wine with a very
welcoming and friendly atmosphere.
We can also provide a location that will
cater to the wants and needs of our
Threats
target market. Professors, graduate
students and older members of Athens
do not have an alternative to the Undesirable Outcome: Currently there are
crowded bar scene that Court Street only three threats to our particular type of
limits them to. We offer a more establishment- Zoe's, Bella Vino and
welcoming and relaxed environment External Forces When our company begins
Stephen's.
compared to the young and loud bar operating, we feel that the threat of other
scene that exists on the weekends. similar establishments opening is very
low. There is also the threat of the profits
not outweighing the start up costs for the
business. We are hoping to provide a
desirable atmosphere to our target
market, but the possibility of not gaining a
large enough customer base or interest
poses the threat of the company not
being as profitable as hoped for.

15

Exquisite Wine…

Key Market Trends

•Over 304 Million gallons of wine were sold in
2007, making the U.S the largest consumer of wine
in the world

•Today, 57% of U.S Population is drinking wine,
compared to 43% in 2000

•The wine retail market was at $27.9 Billion in
2007

•Wine consumption in Ohio has increased by 26% in the past 5 years.

•Recent studies have shown significant health benefits from moderate
consumption of red wine, it has anti-oxidants, anti-allergic, anti-histamines, and
anti-viral properties

•The age group 23 to 30 years of age are not as sophisticated about wine, as their
elders generations are, and are willing to experiment with low cost wines.

16

Enjoyable Atmosphere, Excellent
Food, Exquisite Wine…

Key Market Trends

U.S Wine Market
600
550
Millions of Gallons

500
Wine has become
450 increasingly popular in the
400 United States in the last
decade. The United States is
350
now the largest consumer of
300 wine in the world.
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Ohio Wine Market
Wine has also become
16000 increasingly popular in Ohio.
Gallons Of Wine Consumed

15000 Ohio is ranked 9th in the
14000
country in wine
13000
consumption.
12000
11000
10000
9000
8000

17


Key Market Trends

2005 Wine Drinking at Home Wine has had the stereotype
Market Share % By Age of being a beverage for the
older crowd. Recent
74+ 6.6 statistics from the 2005
65-74 10.4 Alcoholic Beverage
Handbook has shown that
55-64 19.9
wine has become
45-54 24.4
increasingly popular with the
35-44 23.6 younger crowds. People
25-34 12 between the ages of 35-64
< 25 3.5 are most likely to consume
wine at their homes.

2005 Wine Drinking at Home
Market Share % By Marital Status Wine Is a great beverage to
share with a loved one.
14.8% Married Statistics have shown that
married couples are the
Married w/ No main consumers of wine in
31.3% 67.7% Children the United States.
Married w/ Children
30.6%
Single

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Key Market Trends

2005 Wine Drinking Market Share At
Bars/Restaurants By Age

74+ 3.3
65-74 11.2
55-64 23.9 Drinking wine with food has
45-54 24.4 been a long tradition across
35-44 19.9 the globe. The age group
25-34 14.5
most likely to purchase wine
at a bar or restaurant is ages
< 25 3.2
35-64

2005 Wine Drinking at Bars/Restaurants By
Marital Status Going out to a restaurant
with a loved one has always
Married been a popular activity.
23.6%
Recent statistics from the
Married w/ No 2005 Alcoholic Beverage
64.2% Children Handbook have shown that
27.6%
Married w/ Children the majority of people who
order wine at a restaurant or
33.9%
Single bar are married.

19


Key Market Trends In
Athens
Age Distribution of People in Athens Athens County Household Income
from 2006-2008 ( % ) (% Of Households)

75-84 2 $200,000 + 2.1
65-74 2.1 $150,000-$199,999 1.3
60-64 1.4 $100,000-$149,999 6.5
$75,000-$99,999 6.1
55-59 1.5
$50,000-$74,999 17.2
45-54 4.6
$35,000-$49,999 9
35-44 6.4 $25,000-$34,999 5.8
25-34 10 $15000-$24,999 14.4
20-24 35.4 $10,000-$14,999 16.7
15-19 30.3 < $10,000 20.9

Types of Households in Athens County
( By % )

Other Non-Family Households 31

Other Families 9

People Living Alone 34

Married-Couple Families 26

Athens County is home to age groups mainly in 20-24 years old, 34.5%. A
little over 50% of household Income are less than $25,000 a year, as
previously mentioned, this could contribute to the low threat of new
entrants in the wine market.

20


Target Market

Market Description
“Put A Cork In It” operates in the greater southeastern Ohio area, targeting those who
are interested in wine, and/or are looking for a fresh, new social environment. The
geographic area is focused on Athens county, but is not limited to other regions such
as Logan, Nelsonville, Marietta, and the Hocking Hills areas.

Market Size
Athens is a historic college town in the southeastern region of Ohio. Athens is home to
Ohio University and an estimated population of around 22,000. Athens has 7 adjacent
counties (Clockwise starting from north) : Perry, Morgan, Washington, Wood(WV)
, Meigs, Vinton, and Hocking. According to the 2000 U.S census the adjacent counties
have an approximate population of 264,300.

Target Customers
The people “Put A Cork In It” mainly targets for its products and services have these
characteristics:
• Age Groups: 35-64 , College Graduates, Graduate Students,
•Sex: Male and Female
• Household Income: $35,000 +
• Marital Status: Married Couples and Singles
•Residence: Athens community

Strategic Opportunities
• There are currently no Wine Bars in Athens
• Ohio University graduate students, professors, and other employees
•The employees of local businesses: Appalachian Behavioral
Healthcare, Hocking College, Diagnostic Hybrids, O'Bleness Memorial
Hospital, Rocky Brands, and Wayne National Forest.

21


Marketing M ix and
Position
Our position in the market
will be an entry level wine bar
and bistro. It will be a
comfortable and relaxing
atmosphere that combines a
contemporary and chic feel.
We will have higher end
dining at a reasonable price.

Product: Price:
Wines, Small Entrées and
On average $4-8 per glass; $15-
appetizers, as well as other
30 per bottle
various alcoholic beverages

Promotion:
Events: Wines from Around the
World, College I.D. Night, Wine
Place: Tasting, CRM Database.
434 West Union Street
Advertisements:
Website, Facebook, Local
Newspaper, Flyers

22


Promotion Strategies

Wine’s From Around the
World
“Wine’s from Around the World” is a promotional strategy that will be used to keep
frequent customers. Based on the 80/20 rule, we believe it is important to keep the same
customers coming back. Each time a customer comes into the wine bar they have the
opportunity to try a glass of wine from one of fifteen different countries selected. After
completing the fifteen countries, they are offered a complimentary bottle of the wine of
their choice. This will tactic will help to increase customer satisfaction and loyalty as well as
a growing customer base for our business.

College I.D. Night
Come visit Put A Cork In It on the second
Friday of every month and receive 20% off
your total bill with proof of a valid Ohio
University I.D. This promotional strategy
is geared toward the college students who wish to escape from Court Street for a night
and enjoy a more sophisticated atmosphere at a less expensive cost than a typical night.

Wine tasting events
Customers can come and enjoy a fun evening out every
first Friday of the month. By paying a set price ($50 per
couple or $30 per person) you are able to receive ten
different samples of new wines. This helps customers
learn which wines they enjoy the most without having
to buy individual glasses of them all.

These Ads can be used in local newspapers for more Ads to be used for promotion see Appendices A ,B, & C

23


www.PutACorkInIt.org
The creation of a website for “Put A Cork In Will Display Information Regarding:
It” is necessary in order to achieve capturing • The Location
customers. The internet is now intertwined •The Mission Statement
with how our culture lives. A website can •The Food Menu
display the necessary information about the •The Wine Menu
business. •The Customer Relationship Management

24


Create A Facebook Page

•A Facebook Page is a public profile that enables the sharing of
the business and products with over 300 Million Facebook users.
•When fans interact with the Facebook Page, stories linking to the
Page can go to their friends via News Feed. As these friends
interact with the Page, News Feed keeps driving word-of-mouth
to a wider circle of friends.
•Add Events, Photos, and Promotions to the Facebook page so
your fans and followers know what's going on.
• Display key details for the business, like location, directions, and
hours of operations.

25



Advertise on Facebook

•Reach over 300 Million active Facebook users
• Attach social actions to ads to increase relevance
• Advertise “Put A Cork In It” Facebook page, events, or
actual website
•Can Pay Per Click
•Track progress with real-time reporting
•Gain market insight about who’s clicking on ad

Example of Facebook Advertisement Success

Over 12 months, CM Photographics generated
nearly $40,000 in revenue directly from a $600
advertising investment on Facebook. Of the
Facebook users who were directed to CM
Photographics’ website from the ads, 60% became
qualified leads and actively expressed interest in
more information. (Facebook.com)

26



Put A Cork In It- Wine Bar
Advertisement for Athens
Post Location: 434 West Union Street
• Cost for 3” by 6” Ad is
$172.50 Services: Large wine selection, Small
• A student ran entrees & Appetizers, and other beverages
newspaper, primarily read
by college students so we Upcoming Events: On 2nd Friday of every
promoted our College ID month college students can receive 20% off
nights their entire bill just by showing their
• Accessible to over 23,000 student ID
including students and
faculty

Athens News Advertisement Put A Cork In It- Wine Bar
•Cost for 3” by 5” Ad is
$158.00 Location: 434 West Union Street
• Local Newspaper
Services: Large wine selection, Small
distributed to community
entrees & Appetizers, and other beverages
members in 350
locations, so we promoted Upcoming Events: On 1st Friday of every
our wine tastings since the month we have wine tastings which have
viewers of this paper are tickets $30 each or $50 per couple.
primarily older viewers.
• Reaches 18,000 views
throughout Athens County

27


Customer Relationship
Management
Customer Signs Up For Preferred Customer Program
• Either online on our website
• Or at our location

Customer Fills Out Information
• Name, Address, Cell Phone Number, Email, Birth date, Favorite Wines &
Foods, Interests, Suggestions, Affiliation with Ohio University
• Information is entered into CRM database software which can manage the
emails, group customers according to interests, and allow customers to
communicate easily with owners.

Customers receive frequent notifications
• Emails about promotional events, such as wine tastings, will keep
customers updated with times and details about events
• Customers benefit from being on preferred customer list because once a
month an email will be randomly selected to receive a coupon for a
discount on various menu items.

Benefits of implementing CRM
• Improved communication between owner and customer builds a
relationship that makes the customer feel valued because their suggestions
and comments are taken into consideration to improve customer service.
• Customers will bring in more business by suggesting friends and family dine
at the restaurant to increase business

28


Introduction to Business
Plan
Our Business Plan for Put A Cork In It was well planned and developed
to assure the success of this business venture. Our plan entails:

• Menu

•Wine Selection

•Wine Distributors

•Pricing Strategies

•Exterior and Interior Designs

•Operational Plan

•Employee Personnel & Operation Specifications

By following our set business plan the business will be able to carry out
day to day operations as well as plan for future operations.

29


Menu
At “Put A Cork In It” you’ll find a selection of homemade small plates. Order a couple to
share with a group of friends or order a few to explore new tastes for yourself and a loved
one. We pair our wonderful dishes, soups , salads, and sandwiches with wonderful tasting
wines to offer an exquisite dining and social environment. Finish your experience with a taste
of our wonderful gourmet desserts.

Cheese & Charcuterie Signature Small Plates

Soups, Sandwiches, Salads Desserts

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Cheese & Charcuterie
Pick 3, 5,7 Selections
- Seasonal Artisanal Cheeses
- Charcuterie
Genoa Salami, Gentile Salami, Prosciutto d’Parma, Salami Toscana

Accompaniments
-Imported Olives, Olive Tapenade, Sun-Dried Tomatoes, Peperoncinis

Served With Freshly Baked Artisan Breads

Salads, Soups, Sandwiches

House Salad- Crisp greens, Spring mix, Hearts of Palm, Kalamata olives, Locally grown tomatoes and
freshly roasted pine nuts , tossed with a citrus herb vinaigrette.
Cesar Salad – Romaine Lettuce , Parmesan & Asiago Cheese, Homemade Garlic Sourdough Croutons.
Greek Salad- Feta, Tomato, Onion, Olives, Garbanzo Beans, and Pepperoncinis with Homemade
Vinaigrette.

Crab & Corn Chowder- A flavorful chowder with Lump Crab, Andouille Sausage, and locally grown
Sweet Corn
Summer Tomato & Basil- Classic favorite with Garlic and locally grown Basil
Creamy Baked Potato Soup - Topped with Applewood Smoked Bacon, Cheddar Cheese, and Chives
White Asparagus- A Organic Vegetarian Soup Garnished with Homemade Garlic Sourdough Croutons
French Onion- Caramelized Onions simmered in our Homemade Broth topped with melted
Mozzarella
Tortilla Soup - Cheddar Cheese, Cilantro, Chicken, Topped with Crispy Tortilla Strips

Chicken Club Sandwich- Grilled Chicken Breast, Applewood Smoked Bacon, Lettuce, Tomato and
Stone Ground Mustard Sauce on a Freshly Baked Artisan Bread.
Tenderloin Steak Sandwich- Locally Braised Tenderloin prepared medium rare, served with
Caramelized Onions and Blue Cheese Sauce.
Tuscan PLT Panini - Oven Roasted Prosciutto d’Parma, Lettuce, Tomato, and Sauce.

31


Signature Small Plates
Meatballs – 2 Homemade Meatballs made with Grandma’s secret recipe.
Tomato Mozzarella Salad – Locally grown Tomatoes, Garlic, Balsamic Vinegar, Olive Oil and Fresh
Mozzarella
Calamari – Breaded in a Spicy Pepper Blend
Garlic Roasted Hummus - Homemade served with Italian Tomato Salsa and Pita Chips
Crab Stuffed Portobello - Roasted Portobello Mushrooms stuffed with Crab meat, Cheese, and
Breadcrumbs.
Crab Cakes - Served with Creole Aioli and Arugula
Tuscan Quesadilla- Locally Grown Tomatoes ,Oregano, Basil, Roasted
Garlic, Mushroom, Spinach, Three Cheese Mix, served with Marinara Sauce
Flatbreads- Choose From Prosciutto and Fig , Steak and Mushroom , Tomato Bruschetta

Desserts
Crème Brulee Trio - Classic, Dulce de Leche and Raspberry Vanilla
Carmel Pecan Turtle Cheesecake - Pecan Brownie and Caramel Swirl Cheesecake, Topped with
Caramel Turtle Pecans and Chocolate.
Apple Cobbler- Cinnamon and Caramel Apples with a Butter Crunch topping,
served warm with Vanilla Bean Ice Cream
Chocolate Truffle Cake- Raspberry Sauce, Dark Chocolate Sauce, Sweet Cream
Seasonal Berries – Served with choice of fresh whipped cream, Shortcake, or Sorbet.
Chocolate Fondue – For 2 or 4 , Served with Fresh Fruit, Biscotti, and S’Mores.
Biscotti- Order of 3, White Chocolate, Almond Crunch, and Chocolate Cherry

32


Wine Selections
The variety of our selection of wines will be based on Mr. Cook’s knowledge of
wine, our target market, and our budget. After the wine bar has been in operation for
a year or two the Cook’s will be able to base their selection off of the most popular
wines sold and off customer feedback. To start off with it is important for Put A Cork
In It to have a wide variety of inventory. The categories for wine include:

Light White Wines which include
•Pinot Grigios and Sauvignon Blancs
Sweet White Wines
•Most popular being Rieslings
Blush Wines which have a lightly sweet and tart taste:
•Such as White Zinfandel
Light to Medium Red Wines which include:
•Pinot Noir and Merlot
Strong Red Wines which include:
•Cabernet and Zinfandel
Dessert Wines are lighter sparkling wines
•Including champagne wines.

33


Wine Selection

Each category of wine can be purchased from
various brands offered by distributors. Various
brands from each category are offered by the
Glazer distribution company which operates out
of Columbus, which Mr. Cook is familiar with.
Another prominent distributor out of Columbus
is Heidelberg, and after opening for operation
more distributors will make themselves known
to the wine bar to increase their business.

Through these distributing companies, Put A
Cork In It should also offer a small selection of
beers. Based on the rural setting and our target
market, offering beverages which are less
expensive and less sophisticated, such as
beer, is important. These beers could include
craft beers such as Great Lakes or Samuel
Adams.

34


Pricing Strategies

Our pricing strategy would be based on a mark-up strategy.

A markup is defined as the amount that a seller of goods or services chargers over
and above the total cost of delivering its product or service in order to make a
desired profit.

The equation used for this is Cost x Markup + Cost = Selling price.

Markups must be sizable enough to cover all anticipated business expenses and
reductions, such as markdowns, stock shortages, and employee and customer
discounts, and still provide the business with a good profit.

A good markup suggestion guideline is as follows:
Beer – 2 ½ to 3 Times the Cost
Wine by the Glass – 3 to 4 Times the Cost
Carafe Wine – 2 ½ to 3 Times the Cost
Dessert Wine – 2 to 2 ½ Times the Cost

35


Pricing Strategies

Our pricing strategy will also be efficient and
rather simple, in order for it to be easier for the
employees and customers a like. When it
comes to pricing it is also a good strategy to
price by the quarter. Having prices ending in
.00, .25, .50 and . 75 is an effective pricing
strategy to keep it easier for
bartenders, customers and workers to add up
mentally and therefore it is more efficient.

Based on our primary research from the local wine shop, Bella Vino the
average markup on wine is 33%. If purchasing a bottle around the
desired price Mr. Cook looked to purchase, $10-$15, a $12 bottle would
be $15.96 which is rounded to $16.00. The average amount of glasses
per bottle is 4 so each glass in this case would cost $4 and if the
customer wanted to purchase the entire bottle it would be $16.

36


Location: 434 West
Union Street
This commercial property offers a great location on West Union Street in Athens, Ohio. West
Union is one of the city’s most trafficked roads and this highly-visible location offers a great
spot for a business. This 2400 square foot building comes with newer heating and cooling
systems, good parking, handicap accessible entrances, and bathrooms that make this property
a move-in ready opportunity.

We believe that this location and building offer what is needed to operate a wine bar in Athens.
This property is located in the most lenient type of zone which means it can easily be converted
into a wine bar/restaurant. The 2400 square foot building provides the space needed to have a
small kitchen and have the space for the bar area.

Cost:
$179,000

37


Location Structure
Layout
The current structure of the location is set up for an office building. This is the recommended
seating arrangement for “Put A Cork In It”. We purpose adding a bar, small tables, large sharing
tables, booths, and a outdoor dining deck.

7 Small Tables Bar Bathrooms
Seats 1-2 People 40’ x 8’ Male & Female
Overhead Glass Storage Sink & Toilet
Under Counter Wine Storage 3.5’ x 7’
Around 15-18 Seats

Outdoor Dining Deck 3Booths 2 Large Kitchen
15’x20’ Seats Between 2-4 People Sharing Tables Fully Equipped
3 Tables Seats Between Storage Space
Lights/ Umbrellas 6-8 People 20’ x 17’

38


Location- Proposed Exterior
Changes
The exterior of this building needs a makeover.Currently, the building has a blue
colored siding that needs to be changed to better fit the style of this business.
This would be changed to having stone panels run the length of the building and
extending up to meet the bottom of the windows. From where the stone ends
and upward will be covered by white siding.

Estimated Cost: $5000-$6500 Estimated Cost: $2000

39


Location- Proposed Exterior
Changes
The left side of this building offers what we believe to be a great opportunity to add on a deck.
There are two windows that could be knocked out and replaced with sliding glass doors. These
doors will lead out on to the deck that will be approximately 15ft x 20ft. The deck will be
furnished without outdoor tables and chairs along with appropriate lighting so that our customers
may enjoy their experience outside if so desired.

4-5 tables 8-10 Chairs
Cost: $800-$1000 Cost: $1000-$1250

Deck Cost: $5000-$7000
Lighting Cost: 164ft of white LED
rope lights- $400

40


Location- Interior:
Kitchen
Along with serving wine, we find it in the businesses best interest to serve food
on a small scale as well. Serving food requires that we designate a part of the
building for a small kitchen.

Total Kitchen Appliance Cost: $10,800

• Dual section reach in refrigerator
•Work station with under storage refrigeration
•Multi-compartment sink
•Range with burners and standard oven
•Counter-top dual deep fryer
•Dishwasher
•Commercial Microwave

41


Location- Interior:
Dining Room
The dining room area will be roughly 1,800 Square feet , consisting of a few
group tables and many two to four person tables. All of the tables and chairs
will be high, as well as the bar stools. The lighting will be dim, matching that of
the image below. There will also be a few booths for a more comfortable and
intimate setting, located perpendicular to the bar itself.

42


Location- Interior: Proposed Floor and
Wall Plans
The flooring will be a choice of the two hard woods listed below with a
combination of one of the three paint colors. We will have a white trim along
the bottom wall to add beauty and sophistication to the room.

Churchill
Hotel Ecru

White Clay

Castle Patch

43


Location- Interior: Dining Room
Furniture
The dining room will consists of all high tables that have a more modern feel to
them. Most of the tables will be for either two to four people which creates a
more intimate setting. Also, we will have a few large tables so that people can
enjoy the night with a group of friends.

Modern Wenge Bar Table Black tall Bar Stool: Black Double Booth
with a middle frosted glass. IKEA $99 390.00 Each (2)
$595

Black Single Booth
250.00 Each (2)

44


Location- Interior:
Dining Room
We will use aesthetics to add to the intimate feel of our wine bar by using curtains
and drapery throughout the venue. We will also have a candle set on each table
and wall paintings so that we are able to dim the lights and create a relaxing
atmosphere for our customers to come and unwind after a long day of work.

45


Operational Plan:
Production Methods
As a business operating in Athens, Ohio we believe that obtaining as much of
the food products as possible from the Athens Farmers Market is a great way to
help the local economy, while providing the restaurant with fresh, delicious
ingredients.

The value of knowing where our food comes from is of great importance to us
as well as our consumers.

Using the Athens Farmers Market as the main supplier of our food and
ingredients allows for support of the local community, and a great way to
integrate the company throughout Athens.

46


Operational
Plan
Location:
434 West Union Street
Athens, Ohio 45701

Location:
The site that we have chosen for this location provides
an existing building. The building that is in place has been
used in the past as an office building, but still holds what
we believe is necessary to convert it into a wine bar.

Needs for the Location:
Since the building was last used as an office building, there is definite remodeling that needs to be
done:
•Knock out dividing walls inside the building
•Add wall needed to divide the kitchen from the bar area
•Provide proper equipment and structures to operate a functional kitchen
•Purchase all of the furniture and amenities for a proper bar area
•Install desired flooring and lighting through out the building
•Make recommended changes to the external siding of the building
•Add on a deck to the side of the building and acquire the proper furniture and lighting
•Acquire proper licensing and zoning regulations to be converted into a wine bar

47


Operational Plan: Legal
Environment

Liquor License in Athens, Ohio:
Currently obtaining a liquor license in Athens may prove to be a difficult task because the
county is currently over the limit for licenses allowed.

To operate a wine bar in Athens, a liquor license must be obtained. The specific license
that is needed for this type of bar is a D-2 Permit. The cost of this permit is $564 per year
along with a $100 application fee.

Problems:
-Need an additional 2,000 people to the Athens population for a new license to be created
-Waiting list for a liquor license has been occupied since 1982
-Possibility of purchasing a license from a surrounding county, but the proposed business
must prove that they will provide an economic benefit to the area they are bringing the
license

48


Operational
Plan
Zoning:

The zone that our potential business site is located in is
specified as a B-3 zone. This type of zone is the most
lenient, and allows for almost any type of business.

Permit:

To officially change the site
from an office building to a
wine bar, the owners need
to obtain a “Use Permit”
through the Ohio Code
Enforcement that will allow
for the transformation.

49


Operational Plan:
Personnel
Mr. and Mrs. Cook want to be the sole owners and operators of “Put A Cork In It”
wine bar. They will be responsible for all aspects that are involved in the operation of
a small business including:

•Managing the company’s finances and operations
•Ordering and keeping track of inventory
•Cooking, bartending, and serving
•Function as the only employees of their business

50


Operational Plan: Personnel
Recommendation

To ensure the success of this business along with high customer
satisfaction, having just two employees is not a viable option. With a
functioning kitchen, bar, numerous tables, and an outdoor deck area
there is a definite need to hire at least two more employees to help
with the operation of this business. These employees can be paid
normal waiter/waitress wages plus tips, and provide a great benefit to
the overall effectiveness of business operations.

51


Operational Plan: Hours of Operation and
Seasonal Operation

Hours of Operation:
-Put A Cork In It will open Tuesday through Sunday starting at 5:00 pm
and remain open until 1:00 am…
-Reservations are recommended but not required…
-The dress code is casual…
-We offer a modern, fun, and welcoming atmosphere

Seasonal Operations:
-Athens is a college town, that requires businesses to adapt to the schedule of
the university. During the times that school is in session we predict to have no
problem running our normal hours as listed above.
-It is times such as Winter Intersession and Summer break when we feel that
the hours of operation may need to change to allow for the most success.
-While our target market of professors, grad students, and older members of
the Athens community may not decrease as much as the student population
during these times, we still believe that business will have quite a substantial
drop off.

Seasonal Hours of Operation:
-Put A Cork In It will open Thursday through Sunday starting at 5:00 pm
and remain open until 1:00 am.

52


Financial Analysis

Our Financial Analysis Includes:
• Start-Up Expenses…………………………………………………………… See Appendix D
•Balance Sheets (Opening Day to Year 3)…………………………… See Appendix E
•Sales Forecast (12 Month)………………………………………………… See Appendix F
•Income Statement/ Profit-Loss Projection (3 Years)…………. See Appendix G
•Break Even Analysis………………………………………………………….. See Appendix H
•Loan Amortization……………………………………………………………. See Appendix I

53


Financial Analysis
The financials are based off a $500,000 loan with an interest rate of 6.5% and a
down payment of $50,000.

Start-Up Expenses: $265,850

Sales Forecast:
Projected 1st Year Sales: $216,000
Projected 2nd Year Sales: $226,800 (Increase of 5%)
Projected 3rd Year Sales: $244,944 (Increase of 8%)

Break-Even Sales Level = $121,346

3 Green Months = Busiest Sales Months
5 Black Months = Moderate Sales Months
4 Red Months = Slow Sales Months

Busiest Sales: ($27,200 per Month)
80 Glasses A Day @ Avg $ of 6.00
20 Bottles A Day @ Avg $ of 20.00
40 Plates A Day @ Avg $ of 12.00

Moderate Sales:($19,200 per Month)

Slow Sales:($9,600 per Month)

54


Conclusion

The purpose of this report was to determine the best potential opportunity for a
new business venture it the Athens community. A feasibility analysis was
conducted for the potential operation of a wine bar. After extensive research
and planning we provided an industry analysis, marketing analysis, business
plan, and projected financial statements for our clients to examine.

It is our recommendation to the client that if the information provided in this
report caters to their wants and needs, that they take the appropriate actions to
make this possibility a reality.

55

References
Athens County Auditor. 2007. “Data for Parcel A027270000900”. Retrieved from
<http://www.athenscountyauditor.org/Data.aspx?ParcelID=A027270000900>.

Athens County Visitors Guide. Media Brite. Web. 11 Nov. 2009. Retrieved from
<http://www.athensohio.com/whattodo/index.php?page=32&item=16>.

Athens Farmers Market. Web. 11 Nov. 2009. Retrieved from <http://www.athensfarmersmarket.org/>.

Athens Ohio Real Estate. 2009. “434 West Union Street, Athens”. Retrieved from
<http://www.athensohiorealestate.com/iview.php?pID=12460>

Bella Vino Wine Shop. 2009. Web. 11 Nov. 2009. Retrieved from <http://www.bellavinoathens.com/>.

Chamberlain, Russel. Telephone Interview. 2 November 2009.

Cheers On-Premise Handbook,2009. Cheers OnTrac Bar Managers

Controlling liquor, wine & beverage costs. Google Books. 11 Nov. 2009
Retrieved from <http://books.google.com/books?id=JBQhwX-zfDoC&>.

Cost Helper. 2009. “Cost of a Deck”. Retrieved from <http://www.costhelper.com/cost/home-
garden/deck.html>

Department of Commerce. 2009. “Division of Liquor Control”. Retrieved from
<http://www.com.ohio.gov/liqr/permitclasses.aspx>

Exterior Portfolio.Web. 11 Nov. 2009. Retrieved from
<http://www.exteriorportfolio.com/EP/Dream/Visualizer/index.aspx>

Facebook Home. Web. 11 Nov. 2009. Retrieved from <www.facebook.com>.

Faux Panels. 2009. “Carlton Cobblestone Faux Panels”. Retrieved from
<http://www.fauxpanels.com/carlton-stone/styles-cobblestone.php?color=91>

56

References
Glazer’FamilyCompanies. 11 Nov. 2009. Retrieved from
<http://www.glazers.com/Glazers/contentController.nonsecure?contentMenu>.

Heidelburg Distributing Company. 11 Nov. 2009. Retrieved from <
http://www.heidelbergdistributing.com/>.

Ikea Home. Inner Ikea System. Web. 11 Nov. 2009. Retrieved from <http://www.ikea.com/us/en/>.

Katom Restaurant Supply. 2009. “Restaurant Equipment”. Retrieved from
<http://www.katom.com/restaurant-equipment.html>

Margin or Markup? Wine & Liquor Pricing Strategies. 11 Nov. 2009. Retrieved from
<http://www.dribbleworld.com/dribblethoughts/margin-or-markup-liquor-pricing-strategies/>.

New Strategist Editors. Whose Buying. 4th ed. Ithica: New Strategist. Print.

Old House Web. 2008. “Estimated Remodeling and Repair Costs”. Retrieved from
<http://www.oldhouseweb.com/how-to-advice/estimated-remodeling-and-repair-costs.shtml>

Professional’s Source. 2009. “JBL Wall Mount System”. Retrieved from
<http://www.bhphotovideo.com/bnh/controller/home?O=&>
Quick MBA. Strategic Management, 2007. Web. 10 Nov. 2009. Retrieved from
<http://www.quickmba.com/strategy/porter.shtml>.

Quick MBA. Strategic Management, 2007. Web. 11 Nov. 2009. Retrieved from
<http://www.quickmba.com/strategy/swot/>.

Selling Wine: Most People Don't Prefer Wine in the Bottle, They Prefer It in a Glass. Restaurant Owner. 11
Nov. 2009. Retrieved from <http://www.restaurantowner.com/public/381.cfm>.

The Athens News. 2009. “Athens News Advertising Consultants. Retrieved from
<http://www.athensnews.com/>.

57

References

The Post. 2009. Retrieved from < http://www.thepost.ohiou.edu/>.

US Census Bureau. U.S. Department of Commerce. Web. 11 Nov. 2009. Retrieved from
<http://www.census.gov/>.

Wicks and Sticks Home Page. Web. 11 Nov. 2009. Retrieved from <http://wicksandsticks.org/>.

Wine and Spirits Industry Marketing Handbook, 2004. Adams Beverage Group. Print.

Zoe's Restaurant. Web. 11 Nov. 2009. Retrieved from <http://www.zoefinedining.com/>.

58

Appendix A - College
ID Night

59

Appendix B – Wines Around
the World

60

Appendix C – Wine Tasting
Event

61

Appendix D – Startup
Expenses

62

Appendix E – Balance
Sheets

63

Appendix F – Sales
Forecast

Green Months = Busiest Sales Months
Black Months = Moderate Sales Months
Red Months = Slow Sales Months

Busiest Sales: ($27,200 per Month)

Moderate Sales:($19,200 per Month)

Slow Sales:($9,600 per Month)

64

Appendix G – Income
Statements

We predict that sales will increase by 5% from Fiscal Year 1 to Year 2. We also predict a increase of
8% from Year 2 to Year 3.

We predict increases in the following operating expenses:

Payroll-
The addition of one employee each year stopping at Year 5.
Wage $3.65, Hours A Week =30

Advertising-
With the growing popularity we will expect the additions of $500 a year in advertising expenses

65

Appendix H – Breakeven
Analysis

66

Appendix I – Loan
Amortization

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