1. MacGyver’sMacGyver’sSports Bar and GrillSports Bar and Grill
Business Plan
Prepared for TCF Financial Bank of Minnesota
May 24, 2008
This business plan has been submitted on a confidential basis. It may not be reproduced or distributed
without explicit permission.
Table of Contents
2. I. Executive Summary
1.1. The Opportunity
1.2. The Company
1.3. Objective
1.4. Growth Plan
1.5. The Team
1.6. The Financials
II. The Industry, Target Customers, and Competitors
2.1 The Restaurant
2.2 Target Customer
1. Sports Enthusiasts
2. Busy Entertainer and Traveler
3. Local night crowd
4. Families
2.3. Competitors
2.4. Competitive Advantage
III. The Company
3.1. Company Overview
3.2. The Menu
3.3. Store Layout
IV. The Marketing Plan
4.1. Marketing Objectives
4.2. Targeting
4.3. Market Penetration
4.4. Pricing Strategy
4.5. Marketing Strategy
V. The Operations Plan
5.1. Real Estate Criteria
1. Population
2. Traffic Volume
3. Site Visibility
5.2. Hours of Operation
5.3. Employee Hiring and Training
5.4. The Production
5.5. Employees
5.6. Facilities and Equipment
VI. Development Plan
VII. The Growth Plan
VIII. The Team
IX. Financial Plan
9.1. Single Store Assumptions
9.2. Revenue
9.3. Start-up
9.4. Personnel
9.5. Overall Financial Performance
9.6. Profits and Losses
9.7. Projected Cash Flow
9.8. Projected Balance Sheet
9.9. Exit Strategy
I. Executive Summary
3. 1.1 The Opportunity
The MacGyver’s Sports Bar and Grill will establish a successful presence in the food and
beverage service industry. The main location is located in Elk River, Mn and hopes to gross $1
million in the first year of operation. The restaurant industry has continued to grow and is
expected to grow another 4.4% in 2008. The restaurant industry is also expected to boost the
economy by 1.5 trillion dollars in 2008.
Sports themed bar and grills have continued to excel in the market as patrons have demanded
better quality food with reasonable prices, in which they can relax, watch and cheer on their
favorite sports teams. Management has recognized the rapid growth potential by the quick
success and fast turn around on investments from past research. Customers are currently limited
to hamburgers and sandwiches; however The MacGyver’s has added more varieties of food for
fine dining, such as steaks, seafood, and pasta. In recent years, sports bars have begun to emerge
in various regions in the area, including Time Out, Finish Line, Shooters, and Billy’s that have
been profitable and are considered good competitors in the region.
1.2 The Company
The MacGyver’s is a Sports Bar and Grill serving quality food, at affordable prices, in a
fun, friendly atmosphere.
Sports based themes – The establishment will focus on themes that have mass appeal.
The establishment will contain three sections that include a bar, casual dining, and a
formal dining area.
Restaurant hours will be 11 am to 1 am Monday thru Friday, 10 am to 1 am on
Saturdays, and 10 am to 9 pm on Sundays. Saturdays and Sundays will include a
breakfast menu from 10 am to 2 pm. Take out will be available.
The size of the restaurant will be approximately 6000 square feet and will seat from 200
– 350 people.
1.3 Objectives
The following objectives have been established:
Have all stores operational within five years.
Maintain tight control of costs and operations by hiring quality management at each
location and utilizing automated computer control.
Keep food costs under 32% of revenue.
Keep beverage costs under 21% of revenue.
Select only locations that meet all the parameters of success.
1.4 The Growth Plan
Our plan is to expand one more facility within five years via franchising and will be
funded by the owner, outside investors, and by internally generated cash flow which
will enable to open additional restaurants. Sales projections for the next three years
are based on the current planned restaurant opening.
4. 1.5 The Team
Management Team:
Founder: At the present time Darren Mattern runs all operations for The MacGyver’s Bar and
Grill. Darren has an A.A.S. degree in Business Administration from Minnesota School of
Business. Prior to acquiring a degree, Darren has previously worked in a Bar and Restaurant in
Princeton for 10 years as a dishwasher, Prep Cook, and Line Cook. Even though his background
is in Business, his passion lies in the food service industry.
General Manager: Daniel Mattern has 8 years experience in financial services and 9 years in
Operations Management. Daniel will work with the founder on day-to-day operations to develop
and to achieve maximum profits of the business for future endeavors and possible franchising.
Supervisory Manager: Joe Brooks has an A.A.S. degree in Anthropology and has 2 years of
supervisory management. Joe will oversee the training of servers, bartenders, and host/hostesses.
Joe will also solve any problems related to any issue that an employee or customer might have
and report to the General Manager.
Chef: Dennis Nord was a manager/chef of a bar and restaurant in Hawaii for over 15 years. The
chef will oversee food preparation in the kitchen and develop trainees within the cooking
processes.
1.6 The Financials
We are personally committed to $60,000 of capital, plus a $200,000 SBA 7(A) loan guarantee
and seeking an additional $125,000 from outside investors to start up the company.
Projected Performance FY 2008 FY 2010 FY2012
Revenue $943,882 $1,085,465 $1,248,285
Cost of Sales $311,481 $358,200 $411,934
EBIT $223,411 $215,507 $299,405
EBITDA $223,411 $215,507 $299,405
Operating Expenses $408,990 $511,755 $536,946
Interest Expense $13,139 $11,532 $9,747
Net Profit $137,906 $132,583 $189,484
5. II. The Industry, Target Customers, and Competitors
2.1 The Restaurant Industry
The restaurant industry has continued to grow
throughout the years with the average of $112 billion
dollars in sales every ten years. Sales are expected to
grow 4.4% in 2008 and equal 4% of the U.S.
Gross Domestic Product. The industry is also expected
to boost the economy by $1.5 trillion dollars in 2008.
83% of people said that there are more healthy options available at
restaurants than two years ago.
2.2 Target Customer
Consumers are increasingly looking for establishments were they can relax and enjoy watching
sports and having a good time with quality food and beverages at a reasonable price with a great
atmosphere.
1) Sports enthusiasts
One of Americas past times is watching sports on Saturdays, Sundays, and Monday nights. The
MacGyver’s would be ideal for and sports fanatic to come and enjoy time to watch their favorite
sports team and to have fun.
2) Busy entertainer and traveler
With a fine dining section located in our establishment, The MacGyver’s would be an ideal place
to hold business meetings for clients. It is professional and relaxing at the same time to conduct
business.
3) Local night crowd
With entertainment and drink and food special, we look to target adults to come enjoy the
festivities and relax from a hard days work. It is time to unwind and recharge your batteries.
4) Families
The MacGyver’s is also a great place to hold family to enjoy a night out. With everyone’s hectic
schedule, families do not get to eat together as much. The MacGyver’s is a place to have a family
dinner and to enjoy the entertainment for the adults and the kids.
2.3 Competitors
The MacGyver’s competitors include Time Out Restaurant, Finish Line, Shooters, and Billy’s
that are in a regional area. However, with our variety of food, we have emerged in the recent
months as a benchmark for other companies and future potential competitors.
2.4 Competitive Advantage
Our competitive advantage lies in our customer service, quick service, quality food, and our
friendly wait staff and bar staff. We have developed a standardized kitchen and front-end
operations, which cut down costs and enable us to be the best.
6. III. The Company
3.1 Company Overview
The key elements of The MacGyver’s restaurant concept are as follows:
The MacGyver’s is a Sports Bar and Grill serving quality food, at affordable
prices, in a fun, friendly atmosphere.
Sports based themes – The establishment will focus on themes that have mass appeal.
The establishment will contain three sections that include a bar, casual dining, and a
formal dining area.
Restaurant hours will be 11 am to 1 am Monday thru Friday, 10 am to 1 am on
Saturdays, and 10 am to 9 pm on Sundays. Saturdays and Sundays will include a
breakfast menu from 10 am to 2 pm. Take out will be available.
Retail merchandising will include an integrated retail store offering premium quality
merchandise displaying the company’s logo design.
Quality food – The MacGyver’s will serve freshly prepared, high quality, popular
cuisine that is targeted to appeal to a variety of tastes and budgets with an emphasis
on reasonably priced signature items of particular appeal to the local market.
Quality service – In order to maintain great customer service, the company will
provide attentive and friendly service with a high ratio of service personnel to
customers and also invests in the training and supervision of its employees.
The size of the restaurant will be approximately 6000 square feet and will seat from
200 – 350 people.
We will have special occasions such as Mother’s Day, Father’s Day, Thanksgiving,
Valentines Day, New Years Eve, and any other special occasion you may need.
7. 3.2 The Menu
Appetizers
Southwest Nachos
Stuffed Bacon Cheese Skins
Mozzarella Cheese Bread
Mozzarella Sticks
Quesadillas
Chicken Fingers
The MacGyver’s Sampler Platter
Salads
Taco Salad
Buffalo Chicken Salad
Caesar Salad
Dinner Salad
Dressings include: French, Ranch,
Thousand Island, Bleu Cheese,
Italian, Oil and Vinegar
Soups
Soup de Jour
French Onion Soup
Chicken Wild Rice Soup
Burgers
Hamburger
Cheeseburger
California Burger
Mushroom Swiss Burger
Patty Melt
Sandwiches
BLT
Mile High Turkey
Reuben
Club
Buffalo Chicken Sandwich
French Dip
Steak Sandwich
Entrees
Top Sirloin Spaghetti with Meat Sauce
Pork Chops Fettuccini Alfredo
T-Bone
New York Strip
BBQ Pork Ribs
Desserts
Turtle Cheesecake
Ice Cream
Chocolate Cake
Pie (Apple, Blueberry, Cherry)
Beverages
Soft Drinks Lemonade
Ice Tea Milk/Chocolate Milk
9. The store layout will facilitate customer flow. There will be two registers, or Point of Sale (POS)
in the bar area and another register in the waitress station. In the bar area, customers pay as they
go or pay on tab in which a credit card is required. In the dining areas, the food is delivered to
their tables and then pays at front desk or pays your waitress.
11. IV. The Marketing Plan
4.1 Marketing Objectives
The MacGyver’s Bar and Grill’s marketing mix will target customers to:
Come for a first visit. (New customers)
Visit our website for information and feedback. (Build brand loyalty)
Spread the word. (Generate word-of-mouth)
Become a regular customer. (Generate repeat business)
4.2 Targeting
Our strategy is based on serving our niche markets well, such as the sports
enthusiast; the business entertainer and traveler, the local night crowd, as well as
families dining out all can enjoy the MacGyver’s experience.
12. 4.3 Market Penetration
The store will be located in a high visibility and car traffic, with nearby retailers and
entertainment. We expect to receive a high pre opening interest from local residents, via
advertisements in the local paper with coupons, and local radio advertisements.
We promote sports, sports, and more sports. The universal appeal of sports and sports marketing
never been higher with the teams of the Minnesota Twins, Vikings, and the Wild (State of
Hockey), among other local teams. Many new residents and many existing residents are fans of
teams in other markets. The MacGyver’s is a place for all. Each patron can watch his or her
game of interest.
Advertising budgets and sports event promotion will promote the brand name and keep The
MacGyver’s at the forefront of sports theme establishments in the target area.
Our Financial Plan in section IX provides further details on the costs involved in our marketing
budget.
4.4 Pricing Strategy
Sports
enthusiast
Local
night
crowd
Families
Business
Entertainer/
traveler
13. All menu items are moderately priced. An average customer ticket is between $10 and $20
including food and drink. Tickets are considerably larger for game day visitors. Our average
customer spends more than the industry average for moderately priced establishments. We tend
to believe that this is due to our creating an atmosphere that encourages longer stays and more
spending but still allows adequate table turns due to extended hours.
4.5 Marketing Strategy
A combination of local media and event marketing will be utilized at the location. Word-of-
mouth will be our primary marketing ploy, along with local print media. After we have become
more established, then broader media will be employed.
V. The Operations Plan
5.1 Real Estate Criteria
1. Population
We aim to target market of young adults, sports enthusiasts, working professionals, and
family oriented patrons that earn an average income. The following are our criteria:
Near residential area, and
Near young professionals, and
Near local businesses.
2. Traffic Volume
We desire a high traffic area such as a major highway or a retail outlet to draw foot
traffic, such as shopping and daytime employment.
3. Site visibility
The site should be easily spotted by a driving target from both sides of the
highway.
5.2 Hours of Operation
The restaurant will operate during lunchtime and dinner, daily with breakfast on
Saturdays and
Sundays. Restaurant hours will be 11 am to 1 am Monday thru Friday, 10 am to 1
am on
Saturdays, and 10 am to 9 pm on Sundays.
5.3 Employee Hiring and Training
We will develop a training manual that will describe each of the job descriptions, rules, and
objectives. Kitchen employees will be hired based on experience and reliability. However,
dishwashers will be hired based on reliability and work ethic. They will be trained in by Dennis
Nord, the head chef. The bar and wait staff will also be hired based on experience, reliability and
attitude. They will be trained in by the Supervisory Manager. All will be responsible to learn the
processes in which they are hired for.
5.4 The Production
The kitchen will be closed for viewing to create a clean look and feel. The kitchen is about 35%
of the establishment in which orders are sent front any of the three Point of Sales (POS) registers.
14. 5.5 Employees
Employees needed
Management Team:
The Founder
General Manager
(2) Supervisory Manager
Chef
Kitchen Employees:
Sous Chef with experience
2 Cooks/Prep Cooks
2 Dishwashers
Service Employees:
1 Full Time Bartender
2 Part Time Bartenders (Rotate)
4 Servers (1 server/bartender)
1 Hostess
1 Busboy/Cleaner
1 DJ
5.5.6 Facilities and Equipment
Space: We will focus on a space that is approximately 6000 square feet and needs to be a facility
that needs minor modifications.
Equipment: Equipment and accessories will be purchased and installed to fit our needs such as:
Grills, Dishwasher, Ovens, Utensils, Glasses, Plates, bar stools, Tables, POS registers,
TV’s, DJ system.
We will have napkins and uniforms cleaned from a private company on a weekly
basis.
We will reorder supplies on an as-needed basis.
We will purchase food and beverages on a weekly basis from an undisclosed source.
VI. Development Plan
The following table lists important program benchmarks, with monthly schedules
that indicate our emphasis on planning for implementation.
What the table doesn’t show is the commitment behind it. Our business plan
includes complete provisions for plan-versus-actual analysis, and we will hold
monthly follow-up meetings to discuss any course corrections.
16. VII. The Growth Plan
Our plan is to grow via franchising within five years at another undetermined location.
Franchises are to be funded by the owner, outside investors, and internal cash flow from
the first establishment.
VIII. The Team
Management Team:
Founder: At the present time Darren Mattern runs all operations for The MacGyver’s Bar and
Grill. Darren has an A.A.S. degree in Business Administration from Minnesota School of
Business. Prior to acquiring a degree, Darren has previously worked in a Bar and Restaurant in
Princeton for 10 years as a dishwasher, Prep Cook, and Line Cook. Even though his background
is in Business, his passion lies in the food service industry.
General Manager: Daniel Mattern has 8 years experience in financial services and 9 years in
Operations Management. Daniel will work with the founder on day-to-day operations to develop
and to achieve maximum profits of the business for future endeavors and possible franchising.
Supervisory Manager: Joe Brooks has an A.A.S. degree in Anthropology and has 2 years of
supervisory management. Joe will oversee the training of servers, bartenders, and host/hostesses.
Joe will also solve any problems related to any issue that an employee or customer might have
and report to the General Manager.
Chef: Dennis Nord was a manager/chef of a bar and restaurant in Hawaii for over 15 years. The
chef will oversee food preparation in the kitchen and develop trainees within the cooking
processes.
17. IX. The Financial Plan
9.1 Single Store Assumptions
Important assumptions: The financial plan depends on important assumptions
such as:
We assume a slow growth economy, without major recession.
We assume that there are no unforeseen changes in the expectancy in the popularity of
our establishment.
We assume access to investments and financing are sufficient to maintain and fulfill our
financial plan.
9.2 Revenue: Sales projections for the first year are presumed to reach an average of
$68,186 in gross sales. That is 30 people for lunch spending approximately $15 per
person, and for dinner approximately 50 people spending an average of $25 per
person. Our total cost of goods sold is 33% of total sales. We expect sales to
increase 15% after the first year.
9.3 Start-up: The following table is the start-up costs that totals $385,000 which is
mostly
equipment, furniture, painting, reconstruction, rent, start-up labor, liquor license, six
months operating cash, and legal and consulting firms associated with opening the
restaurant.
Start-up
Requirements
Start-up Expenses
Legal $5,000
Stationary and Sign $5,000
Office Supplies $5,000
Uniforms $2,000
Insurance $2,000
Rent and Security Deposit $18,000
Outdoor and Patio Settings $10,000
Liquor License $75,000
Furniture $40,000
Cash Register/Software $10,000
Bathroom Repair $15,000
Window Repair $5,000
Floor and Wall Coverings $20,000
Paint $4,000
Lighting and Lamps $12,000
Phone and Gas Deposit $1,000
Food and Liquor $30,000
Kitchen Supplies $30,000
Music/Stereo/TV $4,000
18. Cleaning $1,000
High Chair and Booster Seats $200
Advertising and Website $5,800
Total Start-up Expenses $30,000
Start-up Assets_____________________________________
Cash Required $85,000
Other Current Assets $0
Long Term Assets $0
Total Assets $85,000
Total Requirements $385,000
Start-up Funding
Start-up Expenses to Fund $300,000
Start-up Assets to Fund $85,000
Assets $385,000
Non Cash Assets from Start-up $0
Cash Required from Start-up $85,000
Additional Cash Raised $0
Cash Balance on Starting Date $85,000
Total Assets $85,000
Liabilities and Capital
Current Borrowing
Long-term Liabilities $200,000
Accounts Payable $0
Other Current Liabilities $0
Total Liabilities $200,000
Capital
Planned Investment
Darren $60,000
Investor 2 $25,000
Investor 3 $50,000
Investor 4 $50,000
Additional Investments $0
Total planned Investment $185,000
Loss at Start-up (Start up Expenses) ($300,000)
Total Capital ($115,000)
Total Capital and Liabilities $85,000
Total Funding $385,000
19. 9.4 Personnel: The following table is a breakdown of personnel wages. The staff will include 12
full-time employees and 9 part-time employees, who will work an average of 754 manhours per
week and generate an average of weekly gross payroll of $4,929 for the first year of business.
The estimated gross annual payroll of $236,592 is 22% of total sales.
Personnel
Personnel Plan FY 2008 FY 2010 FY2012
General Manager $0 $36,000 $36,000
Front Manager $20,160 $26,880 $26,880
Supervisor 1 $11,760 $11,760 $11,760
Server 1 $5,040 $5,040 $5,040
Server 2 $3,864 $3,864 $3,864
Server 3 $4,200 $4,200 $4,200
Server 4/Bartender $6,840 $6,840 $6,840
Bartender $10,800 $10,800 $10,800
Busboy/Cleaner $7,920 $7,920 $7,920
DJ $6,216 $6,216 $6,216
Hostess $6,384 $6,384 $6,384
Chef $32,400 $32,400 $32,400
Sous Chef $32,400 $32,400 $32,400
Cook 1 $23,040 $23,040 $23,040
Cook 2 $17,760 $17,760 $17,760
Dishwasher/Prep $10,560 $10,560 $10,560
Dishwasher $8,400 $8,400 $8,400
Bartender $8,544 $8,544 $8,544
Bartender $8,544 $8,544 $8,544
Total Payroll $236,592 $301,512 $307,512
9.5 Overall Financial Performance
Break-even Analysis: We assume running costs include our full payroll, rent and utilities, and
other expenses.
Break-even Analysis
Monthly Revenue Break-even
Average Percent Variable Cost
Estimated Monthly Fixed Cost
$50,869
$50,8$50,869 33%
$34,082
20. 9.6 Profits and Losses: Profits and Losses are projected from the assumptions made. Drastic
changes in the Profits and Losses will increase in the forth and fifth year.
Projected Profits and Losses FY2008 FY2010 FY2012
Sales $943,882 $1,085,465 $1,248,285
Direct Cost of Sales $311,481 $358,203 $411,934
Total Cost of Sales $311,481 $358,203 $411,934
Gross Margin $632,401 $727,262 $836,351
Gross Margin % 67.00% 67.00% 67.00%
Expenses Payroll $236,592 $301,512 $307,512
Sales and Marketing and
Other Expenses $55,897 $75,564 $85,291
Depreciation $0 $0 $0
Leased Equipment $2,004 $2,004 $2,004
Professional Fees $2,004 $2,004 $2,004
Licenses and permits $996 $1,152 $1,320
Other Supplies $2,004 $3,200 $4,800
Postage $996 $2,300 $3,300
Utilities $20,004 $21,996 $22,992
Insurance $15,000 $18,000 $21,600
Rent $36,000 $36,000 $36,000
Payroll Taxes $35,489 $45,227 $46,127
Total Operating Expenses $408,990 $511,755 $536,946
EBIT $223,411 $215,507 $299,405
EBITDA $223,411 $215,507 $299,405
Interest Expense $13,139 $11,532 $9,747
Taxes Incurred $72,364 $71,391 $100,173
Net Profit $137,908 $132,583 $189,484
Profit Yearly
21. 0
50,000
100,000
150,000
200,000
FY 2008 FY 2010 FY 2012
9.7 Projected Cash Flow
The cash flow depends on the assumptions for inventory turnover, payment days, and accounts
receivables. Month-by-month assumptions for projected cash flow are included in the following
table.
Cash Flow FY 2008 FY2010 FY2012
Cash Sales $943,882 $1,085,465 $1,248,285
Cash Received
Subtotal Cash
from Operations
Current
Borrowing
Current Assets
Subtotal Cash
Received
Expenditures
Cash Spending
Payments
Subtotal Spent
on Operations
Long-term
Liabilities
Principals
Dividends
Subtotal Cash
Spent
Net Cash Flow
Cash Balance
$0
$943,882
$0
$0
$943,882
$236,592
$546,311
$782,903
$22,950
$22,200
$828,053
$115,829
$200,829
$0
$1,085,465
$0
$0
$1,085,465
$301,512
$620,903
$922,415
$24,607
$22,200
$969,222
$116,243
$317,071
$0
$1,248,285
$0
$0
$1,248,285
$307,512
$743,076
$1,050,588
$26,388
$27,750
$1,104,726
$143,559
$460,630
22. 9.8 Projected Balance Sheet
We anticipate meeting our debt obligations providing that we achieve our specific goals.
Balance Sheet FY2008 FY 2010 FY2012
Assets
Cash
Other Current
Assets
$200,829
$0
$317,071
$0
$460,630
$0
Total Current
Assets
Long-term Assets
Accumulated
Depreciation
Total Long-term
Assets
$200,829
$0
$0
$200,829
$317,071
$0
$0
$317,071
$460,630
$0
$0
$460,630
Current Liabilities
Account Payable
Current Borrowing
Subtotal Current
Liabilities
Long-term
Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities
and Capital
Net Worth
$23,071
$0
$23,071
$177,050
$200,151
$185,000
($322,200)
$137,908
$708
$200,829
$708
$53,537
$0
$53,537
$152,443
$205,980
$185,000
($206,492)
$132,583
$111,091
$317,071
$111,091
$61,750
$0
$61,750
$126,055
$187,805
$185,000
($101,659)
$189,484
$272,826
$460,630
$272,826
23. 9.9 Exit Strategy
In case of a business failure, MacGyver’s Sports Bar and Grill are dedicated to our concept and
viability. In the event that our failure does not succeed and cannot achieve profitability, we will
firs attempt to sell the operation and use the proceeds to clear all outstanding balances. If we are
unable to sell the operation for profitability, we will be forced to default whereby the SBA loan
will be the senior standing. Any further outstanding balances will be subjected to the investors on
a weighted percentage basis of the total amounts due to bankruptcy.