CoJo’s Sports Bar’s mission is to provide an upbeat atmosphere for local sports fans featuring quality locally and regionally brewed beer, as well as mainstream beer choices, a varied selection of food choices, and excellent customer service.
CoJo’s Sports bar is organized as a sole proprietorship where I, Peter Macdonald, am solely responsible for the day-to-day operations including food and beverage purchasing, staffing, and scheduling.
The objectives of CoJo’s Sports Bar are:
* To build a successful locally owned and operated sports bar
* Develop a loyal client base by providing an excellent atmosphere which make customers feel at ...view middle of the document...
5 billion dollars comes from drinking establishments. This includes bars, taverns, and pubs and will be the market segment in which CoJo’s will be placed.
The average profit margin for the food and beverage industry in Canada is just 4.4 %. The largest expenses for businesses are the food and labour cost which account for 70 % of total operating expenses. In 2009 the average sales for restaurants were $611,000 with a pre tax profit of almost $27,000
The food and beverage industry is the third largest private sector employer on Prince Edward Island. There are over 320 small business operators in the industry with 5000 employees. These businesses are generating 226 million dollars in sales on an annual basis and with every dollar spent in a restaurant it generates $1.85 in additional economic activity. So as you can see the food and beverage industry is very important to the economy as it produces many economic spinoffs from food and beverage sales.
This type of business can be cyclical especially on PEI with the large tourism industry and small year round population. Dining out is one of the top three tourist attractions in Canada. We need to develop a solid base business focusing on the local demographic with the upside being provided by the tourist traffic. Published statistics indicate that the tourism impact on the food and beverage industry is somewhere in the order of 100 million dollars on an annual basis on PEI. However, for the business to be viable long term we must focus mainly on the local demographics.
The average profit margin for the food and beverage industry in PEI is just 4.0 %. During 2009 the industry on PEI had sales of 173.6 million dollars and a pre tax operating profit of $26,890.
MARKET ANAYLSIS SUMMARY
Here is a breakdown of the three markets that CoJo’s Sports Bar will be focusing on:
* Sports Fans: a person with disposable income with interest in enjoying a sports entertainment experience in a unique and enjoyable atmosphere.
* Beer enthusiasts: a person who enjoys not only the mainstream beers such as Budweiser, Moosehead etc but also enjoys the uniqueness of specialty beers that are brewed locally. This may be a slightly older demographic with a higher disposable income interested in experiencing excellent beer in a great atmosphere.
* The Local Night Crowd: This is the crowd who enjoys going out for a drink or a bite to eat and socializing with friends.
CoJo’s primary target market will be focused on middle-aged sports fan with generally a higher income level and more free time to enjoy. This market consists of both males and females between the ages of 35-60 and accounts for approximately 36% of the population on Prince Edward Island. Many of the individuals in this age group are willing to spend more money on alcoholic beverages while watching sporting events. Although this age group is our primary focus it is...