Intro to Project Management, Solving a business case, Proposing for a Real Estate Company to pitch in to Restaurant Business. Full Market Analysis and Location Analysis with SWOT and competitive Analytics.

1. Team 7: Prachi Gupta | Saurav Gupta | Jobil Louis Joseph | Huixian Wang | Qianyu Zhang | Ruiqi Xing

2. Problem
Opportunity Cost
Restaurant business rapidly growing in US
Plummeting Mall across US- 2017 revenues 62%
of the 2006 revenue
More Risk, Less Diversity

3. Solution
Open a Restaurant In an emerging market With a growth potential

4. Selecting the location
• Upcoming markets
• Population growth
• Income Growth
• Restaurant Growth
Things to look for
Things to avoid
• Saturated Markets
• High Taxes
• High Rent
• High Labor cost

5. Selection Process
Select TOP cities
from growing
market
Rigorous statistical
comparison of
relevant metrics
Select the best city

6. Selection of Top Cities
Positive Factors
• Higher Population Growth
• Median Annual Income
• Less Tax, more customer buying power
Negative Factors
• Real estate cost on the area
• Sales tax
• Restaurant wage growth per employee

7. Comparison metrics – Positive factors
Cedar Park is one of the top performers in the positive factors for restaurant location

8. Comparison metrics – Negative factors
Cedar Park also scores favorably in the negative factors with the lowest wage growth
and payroll % per revenue

9. Comparison metrics

10. Heuristic Score Calculation
Normalize the metrics using Z-score
Assign corresponding weights
Heuristic Score= Weighted sum of Z-scores

11. Final Heuristic Scores

12. Cedar Park- Market Study
One of the fastest growing
metropolitan region- 100%
increase in population in last
decades
Number of restaurants
doubled over 5 years
One of the lowest real estate
cost on the area
No income tax, more customer
buying power

13. Cedar Park
Demographic study
6 Major Universities in 10 mile radius
Average household income is $99,348
Age groups: 6.9% between 15 & 19
20.3% between 20 & 34
36.9% between 35 & 59
Town Center Traffic Counts(Ingress/Egress) 183A
Toll Road Traffic: 41,170 VPD
FM 1431: 31,876 VPD
Millennial Population > Highest in
Country (17.5%)

14. Theme -Sports Bar & Grill
Concept
 Industry:
Worth investing in Sports bars (8.1% sales
growth yearly)
 In Cedar Park:
Highest ratio of Millennial Population (17.5%)
Millennials gravitate to communal dining spaces
and party
Four major sports leagues – NFL, NBA, NHL and
MLB have their home base in Texas.
Numerous alumni from Powerhouse College
Programs
Approximately 50% of the population is
between the age groups 18-54 years old.
Most of the sports fans across US are between
the age groups 18-54 years old

16. Sports Bar & Grill Concept
Target customers: Sports fanatics, Millennials &
Young crowd
Cuisine: Tex-Mex & American Bar Food
Food: Focus on few options but offer excellent
taste, and Healthy Organic Food
Beverage: All alcoholic & Non Alcoholic drinks,
Focused on Fresh brewed beer and house wine.

17. Sports Bar & Grill Concept
Service Hours:
Mon-Thu
12PM-1AM
Fri-Sun
12PM-3AM
Happy Hours:
Mon - Fri 3 PM - 7 PM
Event: NCAA, NBA, MLB,NHL, and NFL sports shows
Indoor games
Decoration Style: Contemporary style & HD Flat Screen TVs
Capacity: 100 people
Size: 3000 sq ft

18. Human Resources
1 Top Manager
2 Assistant Managers
4 Cooks
3-5 Hostess/Bartenders
7-10 Waiters/Waitresses

19. Competition Analysis
Sort by Highest Rating in YelpSort by Best Match in Yelp

20. Competitor Sales
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
2016/01 2016/02 2016/03 2016/04 2016/05 2016/06 2016/07 2016/08 2016/09 2016/10 2016/11 2016/12
SHOOTERS BILLIARDS & SPORTS BA SIDELINES SPORTS GRILLE TOPSPIN

21. SWOT Analysis
Strengths:
▪ Various entertainment events
▪ Tex-Mex food and domestic beer
▪ Healthy Organic Food offerings
Weaknesses:
▪ lack of industry experience

22. SWOT Analysis
Opportunities:
▪ Few high-rating sports bars in Cedar Park
▪ Over over 17.5% of the millennials in 2014, and people are passionate about sports in Texas
Threats:
▪ Cost increase (Food and beverage price increase)

23. Pro
Forma
Expense
24%
3%
5%
7%
5%
2%
49%
2%
Expense
Payroll
Marketing (advertising, menus, fliers, etc.)
Depreciation
Rent
Administrative expense(legal, accounting,
consulting fee, etc.)
Subscrition of sports programs
Permits and license acquired
Repairs and Maintenance
Insurance
Miscellaneous(office supply costs.etc)
Operating Expenses
Utilities(gas, electricity, water, etc.)

24. Pro Forma Sales and Profit
$800,000.00
$900,000.00
$1,000,000.00
$1,100,000.00
$1,200,000.00
$1,300,000.00
$1,400,000.00
$1,500,000.00
$1,600,000.00
$1,700,000.00
$1,800,000.00
Y E A R 1 Y E A R 2 Y E A R 3
SALES & PROFIT
Sales Earnings Before Interest and Taxes

25. Fixed Cost
Basic Decoration
91%
Six Burner
1%
Liquid Fire Protection System
0%
Permits
1%
Marketing
5%
Other
7%
Graphic Logo and Name Creation Outdoor Sign
Building Improvements Basic Decoration
TV Stainless Steel Hood with Exhaust
Beverage cooler Six Burner
Liquid Fire Protection System Permits
Marketing

26. Balance Sheet
ASSETS = LIABILITIES + OWENER’S EQUITY
Current Assets
$145,394
Long Term Assets
$589,840
Accounts Payable
Long Term Liabilities
$620,000
Earnings
$115,234
Stocks

27. Market Adoption
Host Monthly & Seasonal Events
Hold Special Screenings for
major US sports & leagues
Social Media Presence Promotional Coupons and loyalty programs
Daily Specials based on
customer feedback

28. Future Plans