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Take Five Sports Bar and Grill is a popular sports bar located in Anytown. Joseph A. Smith, the principal owner, would like to expand his current foothold of Take Five Sports Bar and Grill to several places within or near Anytown. Take Five Sports Bar and Grill has been open since 1995, catering to the market with cutting edge technology, good food, and creative tie-ins with various sports teams, celebrities, and radio hosts. While Mr. Smith has been successful with his current venture, Mr. Smith should still analyze his strengths, weaknesses, opportunities, and weaknesses before he chooses to open up further stores. The following is a SWOT analysis of his current and future businesses.
Any business will only be good as its current leader. Mr. Joseph Smith has shown himself to be a tremendous leader. Not only was he able to turn a profit on a restaurant his first year, but he is well educated as he has a MBA from Anytown University. He shows his business knowledge by picking locations around Anytown that have high traffic but do not have competition from other sports bars. When he expands he his marketing his product to a diverse demographic, instead of choosing to market to the sports enthusiast, he is also marketing towards late night crowds, business entertainment, travelers, and the most important demographic, families. Mr. Smith does this by providing a fun, welcoming atmosphere by having large screen televisions, cutting edge electronics, and audio equipment. In addition to all of technology, Mr. Smith also employs the best service and culinary personnel available.
While Mr. Joseph Smith has the ideal education, ideal real estate, and ideal demographic, his business plan does have some weaknesses that would benefit from some extra attention. Some may applaud Mr. Joseph Smith for having such an aggressive goal of opening five stores in under a year, some may say that this goal to too aggressive. Take Five Sports Bar and Grill has only been open for 10 months (as of this business plan dated 1996). In business years, this business is still an infant. On the Sales Strategy section (4.2), Mr. Smith states that a store must hit a goal of $4.2 million dollars to become mature. Mr. Smith’s flagship store has fallen short of this goal by obtaining only $634,900 in sales during the first 10 months of service. According to Mr. Smith’s logic, if his flagship store keeps trending this way, the store can expect to reach a mature status in 66 months or 5.5 years.
In addition to an infant store being the basis of expansion, Mr. Joseph Smith will also need to find staff for all five new stores. By the end of fiscal year 1997, Mr. Smith will need to find, train, and develop 55 food servers, cooks, and other management. By the end of fiscal year 1998, this number balloons to a staff of 115 people. Within this business plan, Mr. Smith plans on being the manager of all stores until he opens more than 5 stores. This leads one to believe that Mr. Smith will need to not only manage the financial side of the business of all five stores, but also be the point of contact for job offerings and terminations. With Mr. Smith being spread thin across all five stores, one may say that Mr. Smith may have bitten off more than he can chew. This may justify his aggressive sales goal of more than doubling his current sales within 24 months.
So how will Mr. Smith create this sales growth opportunity? Mr. Smith has already started by delegating his accounting to an accountant. This will let Mr. Smith have some additional time to manage other facets of his business. One facet Mr. Smith might want to focus on is developing his menu to be different than other sports bars in the area. He would need to have his head chef do some research and development to cook and trial these new dishes. Another vein of his business that he might look at developing would be marketing his sports bars to be family friendly without alienating the business and late night crowd market. One way of doing this is to develop trivia games that one can play while eating. Another way is to separate the room into a family friendly sit down environment and a more “bar” setting. By having the room separated, families can come enjoy the game, while the sports enthusiasts can cheer on their favorite team without the worry of children underfoot. The third facet that Mr. Smith would be wise into developing would be a delivery or catering option. This would be a tremendous boost in marketability and profit. By offering catering and delivery, Mr. Smith would be able to bring High Five Sports Bar and Grill to the customer, without the customer leaving their home.
By examining the three facets of his business, Mr. Smith would be in front of any threats of competitors. Mr. Smith is building five additional stores where there is no competition nearby, however, it is not known if these areas are new construction or not. If there is new construction, a restaurant could be built nearby in as quick as 6 months. Another threat Mr. Smith would need to be worried about would be the contents of his menus. If Mr. Smith goes bland and offers only the regular “bar” food, his sports bar would not stand out from his competitors, on the other hand, if Mr. Smith develops new and exotic food, he runs the risk of having his recipes stolen and used at different eateries. Another threat that Mr. Smith cannot foresee is the economy. Mr. Smith does address this in his business plan but still projects doubling his sales in two years.
After examining Mr. Smith’s business plan and his strengths, weakness, opportunities, and weakness, one would need to come to a conclusion. Is Mr. Smith’s High Five Sports Bar and Grill expansion a good idea? Mr. Smith has a good education and has had a tremendous 10 months, but his store is still in its infacy. Also, Mr. Smith would need to consider what will set his place apart from other sports bars in the area without alienating his key demographic. Finally, Mr. Smith would need to determine other streams of revenue if he wants to stay true to his aggressive sales goal.
Bplans.com. (1995). Sports Bar Business Plan. Retrieved October 5, 2008, from http://www.bplans.com/Sample_Business_Plans/Bar_and_Nightclub_Business_Plans/Sports_Bar_Business_Plan/Management_Summary_fc.cfm