This report was completed during the Fall 2009 Ohio University Business Cluster. This report was made for two clients, wanting to put a wine bar in Athens, Ohio

1. 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 Martel, Scott Wright

2. Letter of Transmittal (412) 913-9720 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

3. 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.

4. 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 Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 5

6. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 6

7. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 7

8. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 8

9. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 9

10. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Porter’s 5 Forces Model 10

11. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Porter’s 5 Forces Breakdown 11

13. Offers regular wine tastings

14. Offers

15. Organic & Specialty Wines

16. Beers & Spirits

18. Bar offers Athens largest wine list

21. Buy one from a surrounding county and transfer it over by proving it will help the local economy. 13

22. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion S.W.O.T Analysis 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 target market. Professors, graduate students and older members of Athens do not have an alternative to the crowded bar scene that Court Street limits them to. We offer a more welcoming and relaxed environment compared to the young and loud bar scene that exists on the weekends. Opportunities Threats Undesirable Outcome: Currently there are only three threats to our particular type of establishment- Zoe's, Bella Vino and Stephen's. When our company begins operating, we feel that the threat of other 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. External Forces 14

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

25. The wine retail market was at $27.9 Billion in 2007

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

27. 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

28. 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. 15

29. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Key Market Trends Wine has become increasingly popular in the United States in the last decade. The United States is now the largest consumer of wine in the world. Wine has also become increasingly popular in Ohio. Ohio is ranked 9th in the country in wine consumption. 16

30. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Key Market Trends Wine has had the stereotype of being a beverage for the older crowd. Recent statistics from the 2005 Alcoholic Beverage Handbook has shown that wine has become increasingly popular with the younger crowds. People between the ages of 35-64 are most likely to consume wine at their homes. Wine Is a great beverage to share with a loved one. Statistics have shown that married couples are the main consumers of wine in the United States. 17

31. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Key Market Trends Drinking wine with food has been a long tradition across the globe. The age group most likely to purchase wine at a bar or restaurant is ages 35-64 Going out to a restaurant with a loved one has always been a popular activity. Recent statistics from the 2005 Alcoholic Beverage Handbook have shown that the majority of people who order wine at a restaurant or bar are married. 18

32. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Key Market Trends In Athens 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. 19

34. Sex: Male and Female

35. Household Income: $35,000 +

36. Marital Status: Married Couples and Singles

38. Ohio University graduate students, professors, and other employees

39. The employees of local businesses: Appalachian Behavioral Healthcare, Hocking College, Diagnostic Hybrids, O'Bleness Memorial Hospital, Rocky Brands, and Wayne National Forest.20

40. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 21

41. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 22

43. The Mission Statement

44. The Food Menu

45. The Wine Menu

46. The Customer Relationship Management23

48. 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.

49. Add Events, Photos, and Promotions to the Facebook page so your fans and followers know what's going on.

50. Display key details for the business, like location, directions, and hours of operations.24

52. Attach social actions to ads to increase relevance

53. Advertise “Put A Cork In It” Facebook page, events, or actual website

54. Can Pay Per Click

55. Track progress with real-time reporting

56. Gain market insight about who’s clicking on adExample 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) 25

58. A student ran newspaper, primarily read by college students so we promoted our College ID nights

60. Local Newspaper distributed to community members in 350 locations, so we promoted our wine tastings since the viewers of this paper are primarily older viewers.

61. Reaches 18,000 views throughout Athens CountyPut A Cork In It- Wine Bar Location: 434 West Union Street Services: Large wine selection, Small entrees & Appetizers, and other beverages Upcoming Events: On 1st Friday of every month we have wine tastings which have tickets $30 each or $50 per couple. 26

63. Customers will bring in more business by suggesting friends and family dine at the restaurant to increase business27

65. Wine Selection

66. Wine Distributors

67. Pricing Strategies

68. Exterior and Interior Designs

69. Operational Plan

70. Employee Personnel & Operation SpecificationsBy following our set business plan the business will be able to carry out day to day operations as well as plan for future operations. 28

71. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 Desserts Soups, Sandwiches, Salads 29

73. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 31

75. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 33

76. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Pricing Strategies Our pricing strategy would be based on a mark-up strategy. A mark- up 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 34

77. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 35

78. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 36

79. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. Bar 40’ x 8’ Overhead Glass Storage Under Counter Wine Storage Around 15-18 Seats Bathrooms Male & Female Sink & Toilet 3.5’ x 7’ 7 Small Tables Seats 1-2 People Outdoor Dining Deck 15’x20’ 3 Tables Lights/ Umbrellas 3Booths Seats Between 2-4 People 2 Large Sharing Tables Seats Between 6-8 People Kitchen Fully Equipped Storage Space 20’ x 17’ 37

80. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 38

81. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 Cost: $800-$1000 8-10 Chairs Cost: $1000-$1250 Deck Cost: $5000-$7000 Lighting Cost: 164ft of white LED rope lights- $400 39

83. Work station with under storage refrigeration

84. Multi-compartment sink

85. Range with burners and standard oven

86. Counter-top dual deep fryer

87. Dishwasher

88. Commercial Microwave40

89. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 41

90. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 42

91. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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 with a middle frosted glass. $595 Black tall Bar Stool: IKEA $99 Black Double Booth 390.00 Each (2) Black Single Booth 250.00 Each (2) 43

92. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 44

93. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 45

95. Add wall needed to divide the kitchen from the bar area

96. Provide proper equipment and structures to operate a functional kitchen

97. Purchase all of the furniture and amenities for a proper bar area

98. Install desired flooring and lighting through out the building

99. Make recommended changes to the external siding of the building

100. Add on a deck to the side of the building and acquire the proper furniture and lighting

101. Acquire proper licensing and zoning regulations to be converted into a wine bar46

102. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Operational Plan: Legal Environment 47

103. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 48

105. Ordering and keeping track of inventory

106. Cooking, bartending, and serving

107. Function as the only employees of their business49

108. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 50

109. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion Operational Plan: Hours of Operation and Seasonal Operation 51

111. Balance Sheets (Opening Day to Year 3)…………………………… See Appendix E

112. Sales Forecast (12 Month)………………………………………………… See Appendix F

113. Income Statement/ Profit-Loss Projection (3 Years)…………. See Appendix G

114. Break Even Analysis………………………………………………………….. See Appendix H

115. Loan Amortization……………………………………………………………. See Appendix I52

116. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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) 60 Glasses A Day @ Avg $ of 6.00 12 Bottles A Day @ Avg $ of 20.00 30 Plates A Day @ Avg $ of 12.00 Slow Sales:($9,600 per Month) 30 Glasses A Day @ Avg $ of 6.00 6 Bottles A Day @ Avg $ of 20.00 15 Plates A Day @ Avg $ of 12.00 53

117. Enjoyable Atmosphere, Excellent Food, Exquisite Wine… …Bring Them All Together Introduction Industry Analysis Business Plan Financials Marketing Analysis Conclusion 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. 54

118. 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> 55

119. 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/>. 56

120. 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/>. 57

121. Appendix A - College ID Night 58

122. Appendix B – Wines Around the World 59

123. Appendix C – Wine Tasting Event 60

124. Appendix D – Startup Expenses 61

125. Appendix E – Balance Sheets 62

126. 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) 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) 60 Glasses A Day @ Avg $ of 6.00 12 Bottles A Day @ Avg $ of 20.00 30 Plates A Day @ Avg $ of 12.00 Slow Sales:($9,600 per Month) 30 Glasses A Day @ Avg $ of 6.00 6 Bottles A Day @ Avg $ of 20.00 15 Plates A Day @ Avg $ of 12.00 63

127. 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 64

128. Appendix H – Breakeven Analysis 65

129. Appendix I – Loan Amortization 66