339 Part III Restaurants, Managed Services, and BeveragesChapt.docx

339 Part III Restaurants, Managed Services, and Beverages
Chapter 9 Beverages 19
A good bartender should understand the effect and the "timing"
of a cocktail. It is not a coincidence that many cocktails are
categorized by when they are best served. There are aperitifs,
digestifs, corpse-revivers, pick-me-ups, and so on. Cocktails
can stimulate an appetite or provide the perfect conclusion to a
fine meal.
>■ Check Your Knowledge
1. Describe the different types of beer.
2. Describe the various spirits.
Nonalcoholic Beverages
Nonalcoholic beverages are increasing in popularity. In the
1990s and 2000s, a radical shift has occurred from the free love
1960s and the singles bars of the 1970s and early 1980s. People
are, in general, more cautious about the consumption of alcohol.
Lifestyles have become healthier, and organizations such as
Mothers Against Drunk Driving (MADD) have raised the social
conscience about responsible alcohol consumption. Overall
consumption of alcohol has decreased in recent years, with
spirits declining the most.
In recent years, several new beverages have been added to the
nonalcoholic beverage list. From Goji juice to passion fruit
green tea, the nonalcoholic beverage world has been innovative
in creating flavored teas and coffees and an ever-increasing
variety of juices to satisfy all our tastes.
Nonalcoholic Beer
Guinness, Anheuser-Busch, and Miller, along with many other

brewers, have developed beer products that have the same
appearance as regular beer but have a lower calorie content and
approximately 95 to 99 percent of the alcohol removed, either
after processing or after fermentation. The taste, therefore, is
somewhat different from regular beer.
Coffee
Coffee is the drink of the present. People who used to frequent
bars are now patronizing coffeehouses. Sales of specialty
coffees exceed $4 billion a year. The Specialty Coffee
Association of America estimates that there are more than
17,400 coffee cafes nationwide.9
Coffee first came from Ethiopia and Mocha, which is in the
Yemen Republic. Legends say that Kaldi, a young Abyssinian
goatherd, accustomed to his sleepy goats, noticed that after
chewing certain berries, the goats began to prance about
excitedly. He tried the berries himself, forgot his troubles, lost
his heavy heart, and became the happiest person in "happy
Arabia." A monk from a nearby monastery
surprised Kaldi in this state, decided to try the berries too, and
invited the brothers to join him. They all felt more alert that
night during prayers!10
In the Middle Ages, coffee found its way to Europe via Turkey
but not without some objections. In Italy, priests appealed to
Pope Clement VIII to have the use of coffee forbidden among
Christians. Satan, they said, had forbidden his followers, the
infidel Moslems, the use of wine because it was used in the
Holy Communion and had given them instead his "hellish black

brew." Apparently, the pope liked the drink, for his reply was,
"Why, this Satan's drink is so delicious that it would be a pity
to let the infidels have exclusive use of it!" So, his Holiness
decided to baptize the drink, after which it quickly became the
social beverage of Europe's middle and upper classes.11
In 1637, the first European coffeehouse opened in England;
within thirty years, coffeehouses had replaced taverns as the
island's social, commercial, and political melting pots.12 The
coffeehouses were nicknamed penny universities, where any
topic could be discussed and learned for the price of a pot of
coffee. The men of the period not only discussed business but
actually conducted business. Banks, newspapers, and the
Lloyd's of London Insurance Company began at Edward Lloyd's
coffeehouse.
Coffeehouses were also popular in Europe. In Paris, Cafe
Procope, which opened in 1689 and still operates today, has
been the meeting place of many a famous artist and philosopher,
including Rousseau and Voltaire (who are reputed to have drunk
forty cups of coffee a day).
The Dutch introduced coffee to the United States during the
colonial period. Coffeehouses soon became the haunts of the
revolutionary activists plotting against King George of England
and his tea tax. John Adams and Paul Revere planned the
Boston Tea Party and the fight for freedom at a coffeehouse.
This helped established coffee as the traditional democratic
drink of Americans.
Brazil produces more than 30 percent of the world's coffee,
most of which goes into canned and instant coffee. Coffee
connoisseurs recommend beans by name, such as arabica and
robusta beans. In Indonesia, coffee is named for the island on
which it grows; the best is from Java and is rich and spicy with
a full-bodied flavor. Yemen, the country in which coffee was
discovered, names its best coffee for the port of Mocha. Its
fragrant, creamy brew has a rich, almost chocolatey aftertaste.
Coffee beans are frequently blended by the merchants who roast
them; one of the best blends, mocha Java, is the result of

blending these two fine coffees.
A casual coffeehouse offers coffee and related beverages and
snacks
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1 .Coffee may be roasted from light to dark according to
preference. Light roasts are generally used in canned and
institutional roasts, and medium is the all-purpose roast most
people prefer. Medium beans are medium brown in color, and
their surface is dry. Although this brew may have snappy, acidic
qualities, its flavor tends to be flat. Full, high, or Viennese
roast is the roast preferred by specialty stores, where balance is
achieved between sweetness and sharpness. Dark roasts have a
fancy rich flavor, with espresso the darkest of all roasts. Its
almost black beans have shiny, oily surfaces. All the acidic
qualities and specific coffee flavor are gone from espresso, but
its pungent flavor is a favorite of espresso lovers.
Decaffeinating coffee removes the caffeine with either a solvent
or water process. In contrast, many specialty coffees have
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things added. Among the better-known specialty coffees are
cafe au lait or caffe latte. In these cases, milk is steamed until it
becomes frothy and is poured into the cup together with the
coffee. Cappuccino is made with espresso, hot milk, and milk
foam, which may then be sprinkled with powdered chocolate
and cinnamon.13
Tea is a beverage made by steeping in boiling water the leaves
of the tea plant, an evergreen shrub, or small tree, native to
Asia. Tea is consumed as either a hot or cold beverage by
approximately half of the world's population, yet it is second to
coffee in commercial importance because most of the world's
tea crop is consumed in the tea-growing regions. Tea leaves
contain 1 to 3 percent caffeine. This means that weight for
weight, tea leaves have more than twice as much caffeine as
coffee beans. However, a cup of coffee generally has more
caffeine than a cup of tea because one pound of tea leaves
makes 250 to 300 cups of tea, whereas one pound of coffee
makes only 40 cups.
CORPORATE PROFILE
Starbucks Coffee Company
Operations
Starbucks Coffee Company (named after the first mate in
Herman Melville's Moby-Dick) is the leading retailer, roaster,
and brand of specialty coffee in North America. More than 7
million people visit Starbucks stores each week. In addition to
its more than thousand retail locations, the company supplies
fine dining, foodservice, travel, and hotel accounts with coffee
and coffee-making equipment and operates a national mailorder
division.

Locations and Alliances
Starbucks currently has thousands of stores in fifty U.S. states
and in thirty-four countries. Starbucks Coffee Company and
U.S. Office Products announced an agreement to distribute
Starbucks fresh-roasted coffee and related products through
U.S. Office Products extensive North American distributorship.
Starbucks has strategic alliances with United Airlines and is
now the exclusive supplier of coffee on every United flight.
In addition, Specialty Sales and Marketing supplies coffee to
the health care, business and industry,college and university,
and hotel and resort segments of the foodservice industry; to
many fine restaurants throughout North America; and to
companies such as Costco, Nordstrom, Starwood, Barnes and
Noble, Hilton Hotels, Sodexho, ARAMARK, Compass,
Wyndham, Borders, Radisson, Sysco, Safeway, Albertson's,
Kraft Foods, Pepsico, and Marriott International.
continued
CORPORATE PROFILE (continued) Starbucks Coffee Company
Product Line
Starbucks roasts more than thirty varieties of the world's finest
arabica coffee beans. The company's retail locations also feature
a variety of espresso beverages and locally made fresh pastries.
Starbucks specialty merchandise includes Starbucks private-
label espresso makers, mugs, plunger pots, grinders, storage
jars, water filters, thermal carafes, and coffee makers. An
extensive selection of packaged goods, including unique
confections, gift baskets, and coffee-related items are available
in stores, through mail order, and through a site in the
Marketplace section of America Online.
Starbucks introduced Frappuccino blended beverages, a line of
low-fat, creamy, iced coffee drinks. This product launch was the
most successful in Starbucks history. The company also has a

bottled version of Frappuccino, which is currently being
distributed on a national basis and is available in grocery stores
and in many Starbucks retail locations.
A long-term joint venture between Starbucks Coffee and
Breyer's Grand Ice Cream dishes up a premium line of coffee
ice creams, with national distribution of several different
flavors to leading grocery stores. Starbucks has become the
number one brand of coffee ice cream in the United States.
Currently, ice cream lovers can choose from eight delectable
flavors or two ice cream bars.
Starbucks and Capitol Records joined forces to produce Blue
Note Blend, a compact disc featuring classic jazz recordings. It
was played in Starbucks locations and was the first item to be
sold to customers both over the counter and by mail order. The
album was so successful that the company has subsequently
released several other CDs, covering a wide range of tastes and
moods, including Chicago blues, rhythm and blues, legendary
female vocalists, an eclectic mix from the late 1960s and early
1970s, jazz, and opera.
Community Involvement
Starbucks contributes to a variety of organizations that benefit
AIDS research, child welfare, environmental awareness,
literacy, and the arts. The company encourages its partners
(employees) to take an active role in their own neighborhoods.
Starbucks fulfills its corporate social responsibility mission by
reducing its environmental footprint on the planet. The company
addresses three high-impact areas: sourcing of coffee, tea, and
paper; transportation of people and products; and design and
operations (energy, water, waste reduction, and recycling).
Starbucks has developed re lations with organizations that
support the people and places that grow their coffee and tea,
such as Conservation International,CARE, Save the
Children,and the African Wildlife Foundation. Additionally,
Starbucks has entered into a partnership with the U.S. Agency
for International Development (USAID) and Conservation
International to improve the livelihoods of small-scale coffee

farmers by private sector approaches within the coffee industry
that are environmentally sensitive, socially responsible, and
economically viable. In 2005, Starbucks received the World
Environment Center's Gold Medal for International Corporate
Achievement in Sustainable Development.
Starbucks has received numerous awards for quality innovation,
service, and giving.
Source: Courtesy of Starbucks.
The following list shows where the different types of tea
originate:
China—Oolong, orange pekoe
India—Darjeeling, Assams, Dooars
Indonesia—Java, Sumatra
Part III Restaurants, Managed Services, and Beverages
Coca-Cola and Pepsi have long dominated the carbonated soft
drink market. In the early 1970s, Diet Coke and Diet Pepsi were
introduced and quickly gained popularity. The diet colas now
command about a 10 percent market share. Caffeine-free colas
offer an alternative, but they have not, as yet, become as
popular as diet colas.
Energy drinks are beverages that are designed to give the
consumer a burst of energy by using a combination of
methylaxanthines (including caffeine), B vitamins, and exotic
herbal ingredients. Energy drinks commonly include caffeine,
guarana (extracts from the guarana plant), taurine, various
forms of ginseng, maltodextrin, inositol, carnitine, creatine,
glucuronolactone, and ginkgo biloba. Some contain high levels
of sugar, while most brands also offer an artificially sweetened
version.14 Red Bull is an example of a popular energy drink
that originated in Thailand and has a Japanese heritage. It was
adapted to Australian tastes and in only a few years has become
popular around the world. The claims are that Red Bull vitalizes
the body and mind by supplying tired minds and exhausted

bodies with vital substances that have been lost, while reducing
harmful substances. It provides immediate energy and vitamins
to the consumer. Sales are more than 3 billion cans in more than
100 countries.15
Juices
Popular juice flavors include orange, cranberry, grapefruit,
mango, papaya, and apple. Nonalcoholic versions of popular
cocktails made with juices have been popular for years and are
known as virgin cocktails.
Juice bars have established themselves as places for quick,
healthy drinks. Lately, "smart drinks" that are supposed to boost
energy and improve concentration have become popular. The
smart drinks are made up of a blend of juices, herbs, amino
acids, caffeine, and sugar and are sold under names such as
Energy Plasma Blast and IQ Booster.
Other drinks have jumped on the healthy drink bandwagon,
playing on the consumer's desire to drink something refreshing,
light, and healthful. Often, these drinks are fruit flavored,
giving the consumer the impression of drinking something
healthier than sugar-filled sodas. Unfortunately, these drinks
usually just add the flavor of the fruit and rarely have any
nutritional
value whatsoever.
Also, some drinks are created by mixing different fruit
flavors to arrive at new, exotic flavors such as Passion-Kiwi-
Strawberry and Mango-Banana Delight. Some examples of such
drinks are Snapple and Tropicana Twister.
Sports enthusiasts also find drinks available in stores that
professional athletes use and advertise. These specially
formulated isotonic beverages help the body regain the vital
fluids and minerals that are lost during heavy physical exertion.
The National Football League sponsors Gatorade and
encourages its use among its athletes. The appeal of being able
to drink what the professionals drink is undoubtedly one of the

major reasons for the success of Gatorade's sales and
marketing. Other brands of isotonic beverages include Powerade
and All Sport, which is sponsored by the National Collegiate
Athletics Association.
Bottled Water
Bottled water was popular in Europe years ago when it was not
safe to drink tap water. In North America, the increased
popularity of bottled water has coincided with the trend toward
healthier lifestyles.
In the 1980s, it was chic to be seen drinking Perrier (a sparkling
water) or some other imported bottled water. Perrier, which
comes from France, lost market share a few years ago when an
employee tampered with the product. Now the market leader is
Evian (a spring water), which is also French. Domestic bottled
water is equally as good as imported and is now available in
various flavors that offer the consumer a greater selection.
Bottled waters are available as sparkling, mineral, and spring
waters. Bottled water is a refreshing, clean-tasting, low-calorie
beverage that will likely increase in popularity as a beverage on
its own or to accompany another beverage such as wine or
whisky.
Bars and Beverage Operations
From an operating perspective, bar and beverage management
follows much the same sequence as does food management, as
shown in the following list:
· Forecasting
· Determining what to order
· Selecting the supplier
· Placing the order

· Receiving the order
· Storing
· Issuing
· Serving
· Accounting
· Controlling
Bar Setup
Whether a bar is part of a larger operation (restaurant) or a
business in its own right, the physical setup of the bar is critical
to its overall effectiveness. There is a need to design the area in
such a way that it is not only pleasing to the eye but is also
conducive to a smooth and efficient operation. This means that
bar stations, where drinks are filled, are located in strategic
spots, and that each station has
everything it needs to respond to most, if not all, requests. All
well liquors should be easily accessible, with popular call
brands not too far out of reach. The brands that are less likely to
be ordered (and more likely to be high priced) can be farther
away from the stations. The most obvious place for the high-
priced, premium brands is the back bar, a place of high
visibility. Anyone sitting at the bar will be looking directly at
it, giving the customers a chance to view the bar's choices.
As for beer coolers, their location depends on the relative
importance of beer to the establishment. In many places, beer is
kept in coolers under the bar or below the back bar, and sample
bottles or signs are displayed for customers. However, in many
places beer is the biggest seller, and bars may offer numerous
brands from around the world. In such places, other setups may
be used, such as standup coolers with glass doors so that
customers can easily see all the varieties available. This is also
true for draft beers.

Inventory Control
The beverage profitability of an organization is not a matter of
luck. Profits result largely from the implementation and use of
effective inventory controls by management and employees.
Training is also important to ensure that employees treat
inventory as cash and that they handle it as if it were their own
money. Management's example will be followed by employees.
If employees sense a lax management style, they may be
tempted to steal. No control system can guarantee the
prevention of theft completely. However, the better the control
system, the less likely it is that there will be a loss.16
To operate profitably, a beverage operation manager needs to
establish what the expected results will be. For example, if a
bottle of gin contains twenty-five 1-ounce measures, it would be
reasonable to expect twenty-five times the selling price in
revenue. When this is multiplied for each bottle, the total
revenue can be determined and compared to the actual revenue.
One of the critical areas of bar management is the design,
installation, and implementation of a system to control possible
theft of the bar's beverage inventory. Theft may occur in a
number of ways including the following:
· Giving away drinks
· Overpouring alcohol
· Mischarging for drinks
· Selling a call liquor at a well price
· Outright stealing of bar beverages by employees
As is the case with food operations, anticipated profit margin is
based on the ratio of sales generated to related beverage costs.
Bar management must be able to account for any discrepancies
between expected and actual profit margins.
All inventory control systems require an actual physical count
of the existing inventory, which may be done on a weekly or
monthly basis, depending on the needs of management. This

physical count is based on units. For liquor and wine, the unit is
a bottle, either 0.750 or 1.0 liter; for bottled beer, the unit is a
case of twenty-four bottles; for draft beer, the unit is one keg.
The results of the most
current physical count are then compared to the prior period's
physical count to determine the actual amount of beverage
inventory consumed during the period. This physical amount is
translated into a cost or dollar figure by multiplying the amount
consumed for each item times its respective cost per unit. The
total cost for all beverages consumed is compared to the sales
generated to result in a profit margin that is compared to the
expected margin.
Management should design forms that can be used to account
for all types of liquor, beer, and wine available at the bar. The
listing of the items should follow their actual physical setup
within the bar to facilitate easy accounting of the inventory. The
forms should also have columns where amounts of each
inventory item can be noted. A traditional way to account for
the amount of liquor in a bottle is by using the "10" count,
where the level of each bottle is marked by tenths; thus, a half-
full bottle of well vodka would be marked on the form as a ".5."
Similarly, for kegs of draft beer, a breakdown of 25, 50, 75, and
100 percent may be used to determine their physical count.
Technology for beverage management has improved with
products from companies such as Scannabar
(www.scanbar.com), which offer beverage operators a system
that accounts for every ounce, with daily, weekly, or monthly
results. The ongoing real-time inventory allows viewing results
at any time and place with tamperproof reliability interfaced
with major POS systems.
The Scannabar liquor module has a bar-coded label on each

bottle, making it easy to track bottles from purchase to recycle
bin. Each bottle variety has the same ribbon, allowing for easy
calibration. The bar-coded ribbon is used as a measuring tool to
give accurate results. Inventory taking is done with a portable
handheld radio-frequency bar code reader. Once the label is
scanned, the level of alcohol in the bottle is recorded and the
data are sent from the user's hand-held reader to the computer in
the office for real-time results.17
The wine module keeps control of all wines by region, variety,
or vintage. After the wines have been configured within the
directory, the procedure is that, when a wine is received, the
variety is identified by scanning the bar code already on the
bottle or selected directly from the portable hand-held radio-
frequency bar code reader. A bar-coded tag is placed around the
collar, which creates a unique identity for each bottle. Once the
bottle is ready to be served, either at the table or at the bar, the
bar-coded tag is removed from the bottle and scanned out of
inventory. Scanning the tag around the neck of the bottle
accomplishes inventory taking.18
The beverage system from AZ Bar America
(www.azbaramerica.com) offers a POS system that runs the
operations behind the bar. It rings up the charge as the beverage
is being poured while automatically removing the product from
inventory.
Instead of holding up bottles and guessing what is left in them
or even weighing each bottle at the end of shifts, the AZ2000
controller can at any time give a report of what was sold, who
completed the transaction, how the system was used, and actual
profits by brand, transaction, or product group. The system can
be remotely monitored from home or other location by dialing
into the bar location; this is handy for making price changes and
monitoring sales activity.
The AZ2000 is the heart of a dispensing system that interfaces

with a variety of products: "spouts," a cocktail tower, beer,
wine, juice, soft drink machines, and soda guns. The system
even runs cocktail programming, so if the bartender does not
know what goes into a certain drink, he on she can hit the
cocktail button, and the system will tell the bartender what
liquor bottle to pick up and control the recipe pour amounts.19
Personnel Procedures
Another key component of internal control is having procedures
in place for screening and hiring bar personnel. Employees must
be experienced in bartending and cocktail serving and also must
be honest because they have access to the bar's beverage
inventory and its cash.
Bar managers may also implement several other procedures to
control inventory and reduce the likelihood of employee theft.
One popular method is the use of spotters, who are hired to act
like typical bar customers, but who are actually observing the
bartenders and/or cocktailers for inappropriate behavior, such as
not taking money from customers or overpouring. Another
method for checking bar personnel is to perform a bank switch
in the middle of the shift. In some cases, employees steal from
the company by taking money from customers without ringing it
up on the register. They keep the extra money in the cash
drawer until the end of the shift when they are cashing out, at
which point they retrieve the stolen funds. To do a bank switch,
the manager must "z-out" a bartender's cash register, take the
cash drawer, and replace it with a new bank. The manager then
counts the money in the drawer, subtracts the starting bank, and
compares that figure to the one on the register's tape. If there is
a significant surplus of funds, it is highly likely that the
employee is stealing. If there is less than what is indicated on
the tape, the employee may be honest but careless when giving
change or hitting the buttons on the register. Either way, there
is a potential for loss.

The Banyan Court bar at the
Moana
Hotel is a perfect venue for a "sundowner"
Restaurant and Hotel Bars
In restaurants, the bar is often used as a holding area to allow
guests to enjoy a cocktail or aperitif before sitting down to
dinner. This allows the restaurant to space out the guests' orders
so that the kitchen can cope more effectively; it also increases
beverage sales. The profit margin from beverages is higher than
the food profit margin.
In some restaurants, the bar is the focal point or main feature.
Guests feel drawn to having a beverage because the atmosphere
and layout of the restaurant encourages them to have a drink.
Beverages generally account for about 25 to 30 percent of total
sales. Many restaurants used to have a higher
percentage of beverage sales, but the trend toward responsible
consumption of alcoholic beverages has influenced people to
decrease their consumption.
Bars carry a range of each spirit, beginning with the well
package. The well package is the least expensive pouring brand
that the bar uses when guests simply ask for a "scotch and
water." The call package is the group of spirits that the bar
offers to guests who are likely to ask for a particular name
brand. For example, guests may call for Johnnie Walker Red
Label. An example of a premium scotch is Johnnie Walker
Black Label, and a super premium scotch is Chivas Regal.
A popular method of costing each of the spirits poured is
calculated according to the following example:
A premium brand of vodka such as Grey Goose costs $32.00 per

liter and yields twenty-five lV4-oz shots that each sell for
$5.50. So, the bottle brings in $137.50. The profit margins
produced by bars may be categorized as follows:
Liquor Pouring Cost % (approx.) 12 Beer 25
Wine 38
When combined, the sales mix may have an average pouring
cost of 16 to 20 percent.
Most bars operate on some form of par stock level, which means
that for every spirit bottle in use, there is a minimum par stock
level of one, two, or more bottles available as a backup. As
soon as the stock level falls to a level below the par level, more
is automatically purchased.
Nightclubs
Nightclubs have long been a popular place to go to get away
from the stresses of everyday life. From the small club in a
suburban neighborhood to the world famous clubs of New York,
Las Vegas, and Miami's South Beach, all clubs have one thing
in common: People frequent them to kick back, relax, and, more
often than not, enjoy a wild night of dancing and partying with
friends and strangers alike.
Like restaurant ownership, starting up a nightclub is very risky
business. But with the right education and proper planning,
nightclub ownership can be a very profitable endeavor. As with
most businesses in the hospitality industry, many believe that
experience is more important than education and that you can
learn as you go. However, when embarking on a journey as
involved as owning a nightclub, a person with a degree and a
high level of education is well ahead of the game.
The ability to read the market is key in developing a nightclub.
When investing anywhere from $300,000 to $1 million in start-
up costs, it is of utmost importance to be sure that the right spot
is chosen and that a relevant market is within reach. Great
nightclubs result from an accurate and calculated read of a

marketplace, not by virtue of good luck. In fact, the number one
cause of early nightclub failure stems from an inaccurate read
on the marketplace. For example, if an entrepreneur is
interested in opening up a country line dancing nightclub in an
urban neighborhood, he or she may want to do extensive market
research to be sure that members of the community even like
country music.
When considering the prospect of a new nightclub, it is
important to invest considerable time in the study of
demographics, market attitude, and social dynamics of the
proposed target. Many people tend to come up with a concept
they are dead set on pursuing without really digging into the
market. One should take all markets into account, even if the
other markets may not seem relevant at the time. In the future it
may be these same markets that are being divided to come to the
newer clubs that have just opened.
A new and exciting concept is a highly important factor in
creating a nightclub. Some people feel that if one nightclub is
doing well down the street, they will open the same type and be
equally successful. This is not true.
Variety is one of the keys to successful business. By offer-
ing patrons a fresh new opportunity, one can draw clien-
tele away from the old clubs and into the new club.
Budgeting is another big factor in developing a
nightclub. Although such an undertaking can be very
costly, cutting corners in building and design will only hurt the
business later. It is better to spend the money now and do it
right than to have to spend more money for repairs later.
Creating a budget should include all aspects of the operation,
including, but not limited to, food and beverage costs, staffing
and labor, licenses, building ramifications, decor, lighting, and

entertainment.
Be sure to know all the legal issues that come with running a
nightclub. For example, many laws exist on the sale and
distribution of alcohol. In many instances, if a problem occurs
involving a patron who was last drinking at the club, the
problem can be considered the fault of the operation's
management. Lawsuits can arise fairly easily, and it is highly
important to be aware of such possibilities.
Nightclubs can be great experiences for both the patrons and the
owner because revenues can be very high. However, it is
important to remember the risks involved and work to minimize
them.
Although this is only a brief discussion of the creation of a
nightclub, the points given are quite important to successful
operation. As with all business endeavors, the more one knows
about the industry that he or she is getting involved with, the
better off the business will be. For more information regarding
the nightclub industry, go to www.nightclub.com or
www.nightclubbiz.com.
Brewpubs are a combination brewery and pub or restaurant that
brews its own fresh beer onsite to meet the taste of local
customers. Microbreweries are craft breweries that produce up
to 15,000 barrels (or 30,000 kegs) of beer a year. The North
American microbrewery industry trend revived the concept of
small breweries serving fresh, all-malt beer. Although regional
breweries, microbreweries, and brewpubs account for only a
small part of the North American brewing industry in terms of
total beer production (less than 5 percent), they have a
potentially large growth rate. One reason for the success of
microbreweries and brewpubs is the wide variety of styles and
flavors of beer they produce. On one
hand, this educates the public about beer styles that have been

out of production for decades and, on the other hand, helps
brewpubs and restaurants meet the individual tastes and
preferences of their local clientele.
Starting a brewpub is a fairly expensive venture. Although
brewing systems come in a wide range of configurations, the
cost of the equipment ranges from $200,000 to $800,000. Costs
are affected by factors such as annual production capacity, beer
types, and packaging. The investment in microbreweries and
brewpubs is well justified by the enormous potential for returns.
Microbreweries can produce a wide variety of ales, lagers, and
other beers, the quality of which depends largely on the quality
of the raw materials and the skill of the brewer. There are
several regional brewpub restaurants of note, including Rock
Bottom, which built its foundation on a tradition of fresh
handcrafted beers and a diverse menu. It promotes itself as a
place to gather with friends, drink the best beer around, enjoy a
great meal, and share good times. John Harvard's has a famous
selection of ales and lagers brewed on the premises according to
the old English recipes brought to America in 1637 by John
Harvard, after whom Harvard University is named. Gordon
Biersch has several excellent brewery restaurants also offering
handcrafted ales and beers along with a varied menu.
Sports Bars
Sports bars have always been popular but have become more so
with the decline of disco and singles bars. They are places
where people relax in the sporting atmosphere, so
bar/restaurants such as Trophies in San Diego or Characters at
Marriott hotels have become popular "watering holes." Satellite
television coverage of the top sporting events helps sports bars
to draw crowds. Sports bars have evolved over the years into
much more than a corner bar that features the game of the week.
In the past, sports bars were frequented by die-hard sports fans
and rarely visited by other clientele. Today, the original sports
bar is more of an entertainment concept and is geared toward a

more diverse base of patrons.
Sports bars were originally no more than a gathering spot for
local sports fans when the home team played on TV. Now such
places have been transformed into mega-sports adventures,
featuring musical entertainment, interactive games, and
hundreds of TVs tuned in to just about every sport imaginable.
"There are no more watering holes," says Zach Strauss, general
manager of Sluggers World Class Sports Bar in Chicago.
"Things have changed. People are more health conscious;
nobody really drinks, drinks, drinks anymore. . . . You have to
offer more than booze. People expect sports bars to have more
personality, better food, and better service."20
Today's sports bars are attracting a much more diverse clientele.
Now more women and families are frequenting these venues,
which provides a new prospect for revenue for bar owners. Scott
Estes, founding partner of Lee Roy Selmon's restaurant in
Tampa, Florida, has recognized that women are an increasing
revenue force in the industry and has made adjustments to his
restaurant to be sure to capitalize on this rapidly expanding
market. "A lot of women are very involved in sports, and we
wanted women to feel comfortable coming here. Sports bars are
also making changes in their establishments to become more
family oriented. Lee Roy Selmon's main dining room, for
example, is a television-free environment. Many families go
into sports bars and request a room with no
TVs, so, recognizing that, an increasing number of owners have
chosen to set aside a special place where families can eat
uninterrupted by the noise of TV.
Another method of attracting bar patrons on slower nights is to
offer games and family-friendly menus. Frankie's Food, Sports,
and Spirits in Atlanta attracts families by hosting a sports-trivia
game for teens. For the younger crowd, the restaurant provides
a kids' menu every day and serves each pint-sized meal on

upside-down Frisbees, which children can take home as
souvenirs. Sports bars have also become the latest version of the
traditional arcade. Many bars offer interactive video games
where friends and families can compete against one another.
Virtual reality games such as Indy 500 and other sports games
are available at many establishments. Some venues have even
gone a step farther and offer batting cages, bowling alleys, and
basketball courts for their patrons to enjoy.
Another aspect of the sports bar that has changed drastically is
the menu. Sports bars have a reputation for serving spicy
chicken wings, hamburgers, and other typical bar fare. But just
as sports bars have evolved in their entertainment offerings, so
too have their menus. People's tastes have changed, causing
sports bars to offer a more diverse menu. Today guests can dine
on a variety of foods, from filet mignon, to fresh fish, to
gourmet sandwiches and pizza. Now people frequent sports bars
as much for the great meal they will have as for the
entertainment. In the past, sports bars usually had a few TVs
that showcased games that would appeal to the area and big
games such as the Super Bowl. The sudden increase in
technology and TV programming available has made game
viewing very different. The popularity of satellites and digital
receivers has allowed bars to tune in to virtually dozens of
events at any given time. Bars now have hundreds of
televisions, and fans can watch games featuring every sport,
team, and level of play around the world at any time of the day
or night.
Burbank, California-based ESPN Zone has about 200 televisions
in each of its locations so that fans can catch all the action. A
handful of televisions is placed in the restaurant's bathrooms
because "we don't want you to miss a second," says Nina Roth,
marketing manager for ESPN Zone in New York City. "If you
have to go at the last minute, you're not going to miss the end of
the game." The evolution of sports bars has turned the smoky
corner bar into an exciting dining and sports experience.
Customers who once rarely frequented the establishments, such

as women and families, are now some of the biggest patrons,
increasing both attendance and revenue at sports bars.
New York Yankees fans celebrate in a sports bar;o-
337 cont. Part III Restaurants, Managed Services, and
Beverages
niche in the beverage industry that was yet to be acknowledged
and filled. The original concept was modified, however, to
include a much wider variety of beverages and styles of coffee
to meet the tastes of their consumers, who have a tendency to
prefer a greater selection of products. Consequently, the typical
espresso/cappuccino offered by Italian bars has been expanded
in North America to include items such as iced mocha, iced
cappuccino, and so forth.
Students as well as businesspeople find coffeehouses a place to
relax, discuss, socialize, and study. The success of coffeehouses
is reflected in the establishment of chains, such as Starbucks, as
well as family-owned, independent shops.
Cyber cafes are a recent trend in the coffeehouse sector. Cyber
cafes offer the use of computers, with Internet capability, for
about $6 per hour. Guests can enjoy coffee, snacks, or even a
meal while online. Reasonable rates allow regular guests to
have e-mail addresses.
► Check Your Knowledge
1. Describe the bar setup.
2. How is inventory control conducted?
3. What is the average beverage pouring cost percentage?
4. What is a trend in sports bars?

Liquor Liability and the Law
Owners, managers, bartenders, and servers may be liable under
the law if they serve alcohol to minors or to persons who are
intoxicated. The extent of the liability can be very severe. The
legislation that governs the sale of alcoholic beverages is called
dram shop legislation. The dram shop laws, or civil damage
acts, were enacted in the 1850s and dictated that owners and
operators of drinking establishments are liable for injuries
caused by intoxicated customers.
Some states have reverted back to the eighteenth-century
common law, removing liability from vendors except in cases
involving minors. Nonetheless, most people recognize that as a
society we are faced with major problems of underage drinking
and drunk driving.
To combat underage drinking in restaurants, bars, and lounges,
a major brewery distributed a booklet showing the authentic
design and layout of each state's driver's licenses. Trade
associations, such as the National Restaurant Association and
the American Hotel & Lodging Association, have, together with
other major corporations, produced a number of preventive
measures and programs aimed at responsible alcohol beverage
service. The major thrust of these initiatives is awareness
programs and mandatory training programs such as Serve Safe
for Alcohol that promote responsible alcohol service. Serve
Safe for Alcohol is sponsored by the National Restaurant
Association and is a certification program that teaches
participants about alcohol and its effects on people, the common
signs of intoxication, and how to help customers avoid drinking
too much.
Other programs for responsible alcohol service and consumption
include designated drivers, who only drink nonalcoholic

beverages to ensure that they can drive friends home safely.
Some operators give free nonalcoholic beverages to the
designated driver as a courtesy.
One positive outcome of the responsible alcohol service
programs for operators is a reduction in the insurance premiums
and legal fees for beverage establishments that had skyrocketed
in previous years.
Trends in the Beverage Industry
· The comeback of cocktails
· Designer bottled water
· Microbreweries
· More wine consumption
· Increase in coffeehouses and coffee intake
· Increased awareness and action to avoid irresponsible
alcoholic beverage consumption
· An increase in beverages to attract more female participation.
· An increase in the number and variety of "energy drinks."
CASE STUDY
Hiring Bar Personnel
As bar manager of a popular local night club, it is your
responsibility to interview and hire all bar personnel. One of
your friends asks you for a job as a bartender. Because he has
experience, you decide to help him out and give him a regular
shift. During the next few weeks, you notice that the overall
sales for his shifts are down slightly from previous weeks when
other bartenders worked that shift. You suspect he may be

stealing from you.
Discussion Questions
1. What are your alternatives for determining whether your
friend is, in fact, stealing?
2. If you determine that he has been stealing, how do you
handle it?
Kelly Fairbrother
June 1, 2014
OL-640
Meadowlands Homemade Ice cream:
A Franchise Opportunity
Summary
“I scream, you scream, we all scream for ice cream!”. This
popular phrase about the sweet dessert are lyrics to a song
recorded in 1929 by a band named Waring’s Pennsylvanians
TurkeyHill 2010). Today, people are screaming for
Meadowlands Homemade Ice Cream in Tewksbury,

Massachusetts. As a nation, we are eating increasingly more ice
cream each year. In 1899, there were about five million gallons
of ice cream that was produced. In 2000, that number grew to
sixteen hundred and fifty million gallons. It is estimated that
America enjoys close to six gallons of ice cream per person,
each year. This is more than any other country (Riverdeep
2002). In 2011, over one and a half billion gallons of ice cream
was produced and the industry generated ten billion dollars of
revenue in 2010 (Ayles 2013). Despite the recent trends for
healthy diets, people still have a hankering for ice cream.
Meadowlands Homemade Ice Cream, is a consistent
contributor to this growing industry. Their delicious and classic
flavors gives this quaint stand the loyal customer base and high
annual revenue it has. It has created a niche in the market and
has many features that make it a great opportunity to be
franchised. Porter’s Five Forces can explain the niche
Meadowlands has created in the market. From the rivalry of the
competition, barrier to entry, threat of substitutes, and
bargaining power of the buyer and supplier Meadowlands has a
niche in the market. There are few true competitors, only one
strong substitute and insignificant barriers to entry. Since
Meadowlands is an already established, profitable business,
there is an advantage and a stronger opportunity to become a
franchise. This is just one of the strong features Meadowlands
has to become a successful franchise.
Given the research of the ice cream industry and the facts of
Meadowlands, I would invest in Meadowlands Homemade Ice
Cream. Personally, I am a very loyal customer and it is the only
ice cream stand I visit. I have often daydreamed about the
possibility of investing or owning Meadowlands and wished
there were more locations. I chose this business as a franchise
opportunity. I am not only passionate about the product but the
facts show Meadowlands could be a very successful franchise. I
would invest in the Meadowlands franchise.
Critical Points
Meadowlands has been serving homemade ice cream since

1964. They offer twenty-three ice cream flavors, five hard
yogurt flavors, three soft yogurt flavors, five sherbet flavors,
two flavors with no sugar added, seven different ice cream pies,
and six different ice cream pizzas, cowpies, and cupcakes. The
menu does not stop here. They also offer hot dogs, chili dogs,
chili, chips, water, and coffee. An additional feature to this
stand is what a customer can take home. The staff will hand-
pack ice cream or yogurt into pints and quarts for their guests as
well as pints of toppings (Meadowlands 2014). At their end of
the summer sale, where everything is half price, people line up
in order to fill their freezers with pints and quarts of their
favorite ice cream. It is a quaint stand with a peaceful and
enjoyable backdrop. With a spacious parking lot in front and
picnic tables on the meadow behind, people are encouraged to
stay and enjoy their ice cream.
The real focus behind Meadowlands Homemade Ice Cream,
is right in the name of the business: homemade. The ice cream
is homemade and then hand-packed to each order. The flavors
and taste of the product truly reflect this. While some ice cream
stands and parlors offer new complex flavors, Meadowlands
menu seems as though it hasn’t changed since they opened.
Simple and classic flavors such as chocolate, vanilla,
strawberry, chocolate chip, and coffee make up the majority of
the menu. While they do have cookies and cream, mint
chocolate chip, and rocky road, they do not have flavors such as
cotton candy, cheesecake, or birthday cake. This is one of the
reasons, Meadowlands is a great opportunity for a franchise.
They have classic flavors that they make extremely well. They
are not concerned with creating over one hundred different
flavors of ice cream. The classic flavors are what people want
and is what has so many people comes back to this business.
In 2012, vanilla was the number one most popular ice cream
flavor with a share of almost thirty percent. Chocolate was in
second place with only nine percent. Butter pecan, strawberry,
Neapolitan, chocolate chip, French vanilla, cookies and cream,
vanilla, fudge ripple, and praline pecan round out the top ten

most popular ice cream flavors of 2012 (Ayles 2013). Three of
the top ten flavors are vanilla based flavor. Also, out of the top
ten less than half have a topping mixed into it. The popular and
top selling flavors are classic, Meadowlands specialty. This
industry is a billion dollar business and growing. In 2010, the
industry generated ten billion dollars of revenue and in 2011,
more than one and a half billion gallons of ice cream was
produced (Ayles 2013). Americans are responsible for
consuming an average of six gallons, per person, per year. This
is more than any other country (Riverdeep 2002). Meadowlands
accounts for a portion of this. According to Manta Media, a
website that promotes and connect small businesses, reports that
Meadowlands has an annual revenue of five hundred thousand
to one million dollars (Manta Media 2013).
Not only are people in the Tewksbury area choosing
Meadowlands as their favorite place for ice cream. From
personal experience, I have and know people who have driven
over twenty minutes, passing many other ice cream stands, in
order to get Meadowlands Homemade Ice Cream. Also, when
family that has moved across the country comes back to visit,
they make sure we make time to take a trip to Meadowlands.
This is echoed through the reviews of Yelp.com, a popular
website for honest reviews about a variety of businesses. Out
of thirteen reviews, five people gave five stars (the maximum)
and seven people gave four stars. Many of the reviews discuss
the fair prices, the amount of ice cream given, the ample
parking space, the friendly staff, and of course the delicious
taste. The loyalty of Meadowlands customers can also be seen.
Many reviews state they have been going to Meadowland’s
since their childhood and one reviewer has been frequenting the
stand for over twenty-five years. The people writing the
reviews are from a variety of places. Locally, in Tewksbury,
almost an hour away in Boston, MA, to Brookline, New
Hampshire. All using phrases such as “love”, “best ice cream
around”, and “favorite” (Yelp 2014).
Meadowlands has all the makings of a business ready to be a

franchise. The concept is a familiar concept to people across all
demographics, the business is already profitable, and there is
positive, widespread demand for the product. It is a quaint,
classic, ice cream stand known for their delicious, homemade
ice cream. This is the niche Meadowlands holds in the industry
and these features make the first step of turning a business into
a franchise (Tice 2014). The next step is to evaluate the
business in regards to Porter’s Five Forces. Economist and
professor, Michael Porter, designed a framework that can help
managers better understand the industry in which they are
operating. These five forces shape the industry competition.
Porter’s Five Forces include; the threat of new entrants,
bargaining power of buyers, bargaining power of suppliers,
threat of substitute product or service, and the rivalry of
existing competitors (QuickMBA 2010).
The first four of Porter’s Five Forces circle around the fifth,
rivalry. While there could be hundreds of places to get ice
cream across New England, there are a variety of types of ice
cream shops. There are stands, year round stores, and some that
are restaurant that also offer cakes and other desserts. There
are only a handful of stands in the Tewksbury and surrounding
areas. The biggest competition Meadowlands would face is
Hayward’s Ice Cream. First started in Nashua, NH, Hayward’s
now has several locations in the Southern New Hampshire area.
It is also a seasonal ice cream stand that offers similar types of
products. Other ice cream shops in the area include business
like Dairy Queen and ColdStone Creamery. These are larger
chains and while they offer ice cream, the atmosphere and
products are very different than that of a traditional, classic ice
cream stand. Hayward’s Ice Cream is the only ice cream
Meadowlands would be competing with. This competition can
be combatted by strategically locating additional Meadowlands
locations. For example, the people in the neighborhood
surrounding Hayward’s in Nashua are loyal to that stand.
Meadowlands, if placed in Nashua, would need to be located
several exits away South toward the mall or North approaching

Manchester.
In Porter’s Model, the threat of substitutes are substitute
products from other industries. With recent health trends
people at times may opt for a healthier option. Products such as
frozen yogurt people see as a healthier than ice cream but still a
refreshing treat on a hot day. It is a realistic substitute for ice
cream. The prices of ice cream compared to frozen yogurt are
not drastically different. If the price of frozen yogurt were to
noticeably increase, the quantity of ice cream demanded would
increase. Likewise, if the price of ice cream were to increase,
the quantity demanded for the substitute of frozen yogurt would
increase. As more substitutes arise, the demand becomes more
elastic (QuickMBA 2010). Fortunately for Meadowlands and
the ice cream industry, there are not many close substitutes.
Additionally, people looking for a healthy alternative also opt
for sugar-free ice cream. Meadowlands offers this option.
Also, if placed by a school, park, or baseball field, an additional
location of Meadowlands will attract a group of customers
where healthier options are not a concern.
There are a variety of barriers to entry a business can face.
The government, patents, asset specificity, and economies of
scale can all create barriers to entry into an industry. Each
industry is different and may face one or more of these barriers.
The barrier to entry for an ice cream stand is not significant.
Competition, especially in a high traffic area, is the biggest
barrier an ice cream stand will have to face (Gaebler Ventures
2013). There are no patents to face or government regulations,
other than the standard health standards needed for producing
and selling food. As an already established business,
Meadowlands has already entered the industry. The barrier they
will have to face is the competition and foot traffic in the
decision of choosing the new location. The location should be
near a school, baseball, field, or popular park. One of these
locations away from the competition will reduce the difficulty
of the barriers to entry. This location will be in an area with
heavy foot traffic, near the target market and away from

competition.
The bargaining power of buyers also has an impact on a
producing industry. There are three scenarios where buyers are
considered to be powerful. These scenarios are; of there are
few buyers with significant market share, if the buyers purchase
a significant proportion of output, and can threaten to buy a
producing firm or rival. Buyers are weak when; producers can
take over distribution, the product is not standardized and
buyers cannot easily switch to another product, buyers have no
particular influence on product or price, and producers supply a
critical portion of buyers’ input (QuickMBA 2010).
Meadowlands’ buyers are not completely powerful nor weak.
With ninety percent of American households consuming ice
cream each year, there are many buyers and therefore do not
have the significant market share few buyers do in order to
dictate the market. They also do not have a credible backward
integration threat. In addition, although it is unlikely, buyers
can switch to a substitute. Overall, the buyers in the ice cream
market are not a threat to the business as they do not have a
significant bargaining power.
As buyers can be classified as powerful or weak, suppliers
can be as well. Characteristics of powerful suppliers include;
the significant cost to switch suppliers, having credible forward
integration threat, being concentrated, and having powerful
customers. Suppliers are weak if; there are many competitive
suppliers, the business purchases commodity products, have
credible backward integration threat, weak customers, and have
concentrated purchasers (QuickMBA 2010). The suppliers
Meadowlands would encounter would not be considered weak.
The supplies and ingredients they would purchasing are
standard, commodity items that one could simply buy at a
grocery store. The products nor the cost to switch suppliers
would be significant. The suppliers would not have a powerful
hold or tie to the company. Meadowlands would have to find a
supplier where they could get the simple ingredients they need
in bulk at a value cost.

Action Plan
The following is a 12-month action plan for turning
Meadowlands Homemade Ice Cream into a franchise.
ACP One-Year Action Plan
Section I – CAREER/PROFESSIONAL GOALS AND
OBJECTIVES
Short-Term Goals (1-2 Years)
· Establish Meadowland’s Homemade Ice Cream as a franchise
· Open one more location in Massachusetts
· Turn a profit in the new location
Long-Term Goals (2-5 years)
· Attract a new group of customers
· Reach an annual revenue of $500,000 - $1 million in both
locations
· Open another location by year 5
Section II – MONTH-BY-MONTH ACTION PLAN
Meeting Date
Objectives/Goals
Strategies/Tactics
Month 1
3/17/14
(opening day for season)
Market research:

-Determine the target audience
-Determine possible locations for franchise
Survey:
-Ask each customer where they are coming from?
-Why they come to meadowlands?
-What flavor they ordered?
Month 2
4/21/14
Continue market research:
-Analyze the research complied so far and continue to survey
the customers
-Strengthen the advertising and marketing of the business
Survey:
-Continue to ask where the customers are traveling from.
-Research nearby demographics of surrounding communities.
Month 3
5/19/14
Learn the legal requirements:
- Hire a franchise attorney
Compile legal requirements:
- Compile audited financial statements, an operating manual for
franchisees, and descriptions of the management team's business

experience.
Month 4
6/23/14
Start the franchise requirements:
-Hire an experienced franchise consultant
-Finalize the additional location
Start writing a franchise agreement to include:
-franchise and royalty fee
-obligations/terms of the agreement
-marketing strategies
Month 5
7/21/14
Continue to process the legal requirements:
- Register a Franchise Disclosure
Document with FTC
Complete legal requirements:
-Become an established franchise in the state of Massachusetts
Month 6

8/18/14
Start Construction
-Location should be around target audience, school, and/or a
baseball field/park
-Will be the same size, construction, and look as original
location
Consistency:
-Atmosphere must be consistent with first location
-Location must also have a peaceful environment
Month 7
9/22/14
Start searching for a franchisee:
-Conduct interviews with potential franchisees
Search for franchisee:
-Look for an experienced, professional, educated, and friendly
person
Month 8
10/20/14
Finish Construction
-Finish painting (inside and out)
-Hang menu, signs, and logo

Finalize Construction:
-Ensure consistency with original location in looks, atmosphere,
design, logo, and menu
Month 9
11/24/14
Hire the franchisee:
-Sign the franchise agreement
-Bring him/her to the new location
Start Training:
-Teach the policies, procedures, and other expectations listed in
the agreement
Month 10
12/22/14
Staff the new location:
-The franchisee should be staffing the new location
Recruit:
-Advertise job offers on popular websites (monster.com,
snagajob.com, etc.)
-Start to interview and hire staff for the new location
Month 11

1/19/15
Continue Training:
-Hire 10-15 part-time staff members and 2 full-time members
Train the Staff:
-Once the franchisee knows the policies, procedures, and
recipes, the staff can be trained
-They will need to learn how to interact with customers and the
correct procedures
Month 12
2/23/15
Open the location 3/17/15
Advertise:
-Advertise and market the new location
Template provided by (ACP 2014).
Conclusion
Meadowlands has a strong, solid, repeatable, and familiar
concept. Ice cream is a favorite treat of ninety percent of
Americans (Ayles 2013). The main key to the success of the
company is the recipe. A recipe is something that is easily
taught and can be repeated. This will ensure the consistency
between the multiple locations and speaks to the ability to be
franchised. The business already has a loyal customer base and
has created a niche in the market. The environment, staff,
menu, and atmosphere all contribute to the uniqueness of the
business and support the niche it has. Meadowlands is already
profitable and will likely be profitable as a franchise. The
annual revenue of the business is estimated to be five hundred
thousand to one million. This revenue is earned only during
March through October. Further, Meadowlands operates in a

market that has only grown over the past several decades and
contributes to the trends of the industry. Lastly, the company
has a loyal and growing customer base. Each of these features
offers an advantage and positive note to the ability to be
franchised.
I would invest in this franchise. Not only am I a loyal
supporter and customer of Meadowlands but the facts of the
business support this decision. This ice cream stand is a long-
standing and profitable business. The ice cream trend is not
diminishing in the near future even given the recent healthy
trends. Not only is Meadowlands in the right business but what
they offer is exactly what is in demand. The most popular
flavor year after year is vanilla. The top five top selling flavors
continue to be simple and classic flavors. This is exactly what
a customer can get at Meadowlands. Through Porter’s Five
Forces, one can learn the niche Meadowlands has created in the
market. There are certain features one would expect to see in a
business looking to be established as a franchise. Meadowlands
possesses these features. The research, facts, forces, and
features of Meadowlands Homemade Ice Cream all prove this
business to be a successful franchise.
Link to Website of the Business
Meadowlands Homemade Ice Cream’s website:
http://www.meadowlandsicecream.com/index.html
References
ACP. (2014). ACP One Year Action Plan Template. Retrieved
from: ACPOneYearActionPlan.doc
Ayles, A. (2013). 15 Most Popular Ice cream Flavors: The
Winner May Surprise You. Retrieved
from: http://www.activebeat.com/diet-nutrition/15-most-

popular-ice-cream-flavors-the
winner-may-surprise-you/2/
Gaebler Ventures. (2013). For Entrepreneurs Good Businesses
to Start: Opening an Ice Cream
& Frozen Yogurt Shop. Retrieved from:
http://www.gaebler.com/Opening-an-Ice-Cream-and
Frozen-Yogurt-Shop.htm
Manta Media. (2013). Meadowland’s Ice Cream. Retrieved
from:
http://www.manta.com/c/mmfwxj8/meadowlands-ice-cream
Meadowlands. (2014). Making Homemade Ice Cream since
1964. Retrieved from:
http://www.meadowlandsicecream.com/index.html
QuickMBA. (2010). Porter’s Five Forces: A Model for Industry
Analysis. Retrieved from:
http://www.quickmba.com/strategy/porter.shtml
Riverdeep. (2002). Scream for Ice Cream. Retrieved from:
http://www.riverdeep.net/current/2002/07/070102_icecream.jht
ml
Tice, C. (2014). Franchise Your Business in 7 Steps. Retrieved
from:
http://www.entrepreneur.com/article/204998#
TurkeyHill. (2010). The History of the “I Scream, You Scream”
Song. Retrieved from:
http://icecreamjournal.turkeyhill.com/index.php/2010/12/13/the-
history-of-the-i-scream-you
scream-song/
Yelp. (2014). Meadowland’s Homemade Ice Cream. Retrieved
from:
http://www.yelp.com/biz/meadowlands-homemade-ice-
cream-tewksbury

Summary
Hog Wild BBQ has been ranked very high for BBQ in Kansas.
Local people would agree that their sauce has Zen ingredients
that have their taste buds coming back for more! From the
succulent meat choices, to the special sauce, this restaurant has
all of the wonderful sides to go with the meals. Hog Wild has
filled a niche in the Plains with slow roasted food that is more
like Grandma’s style than fast food can offer. I know there are
many people that look for an inexpensive BBQ that offers drive
through, carry out and dine in, and Hog Wild does that for me
and many of my neighbors. They have catering for company
picnics or family reunion gatherings. Judging by the expansion
to five locations in Wichita Kansas as well as being in three
other cities, Hog Wild restaurant will be around for a while. So
why not franchise them? This paper begins an in depth analysis
of the possibility of franchising this delectable restaurant that
so many are fond of. Let’s explore what is compelling about
their food and why it would be popular in other locations or
states besides Kansas. We can take a close look at their
business system to see what elements make it successful. What
is it about them that endear their customers to love them? We
will examine the quandary of “should I choose franchising
versus licensing?” We can identify their competition in the
marketplace and who would be their potential target market.
What type of customers are they looking for to become loyal
Hog Wild fans? What niche are they filling in the food service
industry today?
Gary Poulton started Hog Wild Pit BBQ in Hutchinson,
Kansas on its Main Street location. From there, he expanded the
brand out to multiple Wichita, Kansas locations and some other
smaller surrounding cities in Kansas. Then, in 2012, he had
gone as far as he wanted in the growth of the business. He
entered into negotiations and sold his investment in the

company to T.D. O’Connell. The new owner has years of
experience in restaurant management from being a former
restaurant CEO and President and would be able to take it
farther in its expansion. T.D. O’Connell is optimistic about the
opening of the branch in Lawrence, Kansas (opening June of
2014) and then possible branching into Nebraska and Iowa if the
Lawrence branch does well.
Some of the awards that the restaurant has acquired thus
far are: Salina Journal’s 2013 Readers Choice Awards, First
Place for The Hutchinson News Readers Choice Award 2013,
Voted Best in Hutchinson for BBQ Ribs, The Wichita Eagle’s
2012 and 2013 Readers Choice Award Winner. Catering has
been a good business move especially in the Wichita area
because of the population size. There are many industrial plants,
medical, and health fields in the surrounding area that use Hog
Wild’s catering service for their employees and this keeps the
business very busy. The Hutchinson restaurant has a very good
but also busy location which is right on Main Street that sees
heavy traffic daily. That branch has not yet expanded, but
should. It has a very busy drive through, but due to its location
vehicles back out onto Main Street in the busiest hours of the
day. The kitchen is small but friendly. The atmosphere is very
casual and the people are very well trained on their menu items.
They have a very large selection of succulent meats with sides
and toast. There is a condiments bar with ketchup, mustards,
pickles, onions, and peppers. They have about nine booths, and
10-12 tables with checkered tablecloths to seat people. They
have a niche in the food business that includes a plate of BBQ
and sides for fewer than eight dollars and a drive through and
catering to go with. Many consumers want the convenience of a
drive through with food that you might have eaten at a backyard
BBQ. This brings value with also offering that home BBQ
flavor off the grill that so many like.
The target market for the restaurant would be non-
vegetarian women or men that are between the ages of 20-60,
single, couples, or young families, who are in a hurry and want

a home-cooked meal. These target customers are looking for a
family meal where they can choose to dine in or out (drive
through) or have it catered to their gathering. There are many
industrial factories around the area and farming is a large
industry so beef, pork, and turkey are local favorite meats. This
is the type of food that you would expect to see at a
neighborhood picnic, but in today’s mad rush most people don’t
have the time to smoke it themselves. So for them, this is fast,
home-cooked, backyard BBQ taste is the answer!
What if we analyze the opportunity against Porter’s five forces
of the niche to see how strong it holds up? The following is a
chart of the five forces on a niche.
(Chart accessed from Caneval Ventures, 2013)
New Entrant, Industry Competitors, Rivalry Determinants
Starting at the top of the chart with new entrant threats and
competitors, it is possible to analyze threats to Hog Wild’s
Franchising opportunities. Hog Wild’s best strategy is to pursue
the Best Value, Type 5 from Porter’s generic strategies (David,
2012). Below is a list of seven top BBQ style restaurants in US
according to a report from Nations Restaurant News, 2013:
Famous Dave’s BBQ is based in Minnesota but since then it’s
simple menu and small restaurants have spread out into 192
units worldwide including Canada, Mexico, and now
internationally franchising. By far this is one of the biggest
competitors of Hog Wild’s brand because it is already
franchising internationally. This can also be a model for Hog
Wild brand because it too may have the possibility to break into
international markets with demand for similar products in the
future.
Dickey’s Barbecue Pit was founded in Texas in 1941 and started
franchising about 20 years ago. It has grown to 311 units in 39
states as of 2013. It is famous for pulled pork and brisket as
well as many other meats, 10 types of vegetables, desert, and
free ice cream. Their brand is smaller and less of a threat but
the large variety of vegetables can broaden the menu for

vegetarians and the free ice cream brings families with children
to the restaurant. Good concepts to monitor the competing
brands success in.
Smokey Bones has had its growth problems in the past and has
changed ownership. It grew to 127 restaurants, but was
struggling for a while trying to broaden its menu. Since it was
sold to different ownership, it reduced its operations to 66 units
that include the states of Washington DC, Illinois, Indiana,
Florida, Georgia, Massachusetts, New York, and Virginia. It
changed its name to Smokey Bones Bar and Fire Grill and has
concentrated on the smoker and bar scene, trying to get both
more popular.
Jim ‘N Nick’s Bar-B-Cue is an Alabama company that boasts 30
units, operating in Georgia, North and South Carolina,
Colorado, and Tennessee. They are mostly famous for their pork
shoulder that is smoked slowly. Their dinner menu has some
nontraditional items as well. They are also very involved in the
community and with the farmers in Alabama. They are working
on coming up with their own hog breed.
Dinosaur Bar-B-Cue is a New York based sports bar type
restaurant that has recently also expanded to Connecticut and
New Jersey. They offer “pork ribs, pulled pork, wings, sausage
and smoked chicken.”(Thorn, 2013.) They also offer non BBQ
items as well.
Old Carolina Barbecue Company is made up of seven units and
is based in Ohio, but made from the Carolina style of food.
People in the Carolinas love-smoked beef brisket, pork,
chicken, and ribs with their tangy vinegar based sauce.
Calhoun’s is a seven unit chain only based in Tennessee
featuring hickory smoked pork, fried catfish, shrimp, and
chicken.
Barriers to Entry & Suppliers
If Hog Wild were to branch out and consider franchising, large
scale financing would be a necessity. They would need a
business plan to be able to secure this financing. (See page 8 for
brief summary of business plan inclusions and 12 month count

down plan to franchise.) They would have to meet with local
farmers and meat distributers to find new area suppliers. The
larger scale costs of suppliers and products would not pose a
threat if they grew slowly into other geographical U.S. states.
They would have to establish their local menu and brand
awareness state by state. Hog Wild would have to establish
enough research on their target customers to be able to reach
them effectively on a larger scale, slowly testing the
success/failure marketing bought with each campaign.
With the rising cost of beef prices, the impact of USDA policies
it is important to watch external forces on the industry. These
factors can cause undue hardship for the economy and the
business. Consideration must be taken to minimize risk factors
as much as possible in each location. Pricing and menu items
can be changed to reflect constant profits to the franchisees, but
final decisions for these changes must rest with the franchisor.
If they could keep a basic menu for simplifying the business
system, this can be modified to reach tastes in each market in
individual basis depending on demand, suppliers, product
availability, and costs. The simpler the business system, the less
expensive start-up cost would be for the franchisor to create
proprietary materials and training needed for the franchisees.
Substitutes
Threat of substitutes could be by grocers in the local area
selling cooked, smoked meat. Dillon’s is very big in Kansas and
they provide in-house smoked BBQ meat, but their substitute is
not as tasty. Very dry meat due to excessive heat makes it a less
desirable product. Walmart has a few items in meat department
but they are overpriced and small portion sizes that are non-
satisfactory to shoppers. The value in the large portion sizes
comparatively for the Hog Wild’s products far outweigh any
substitutes on the market today. It is advisable to have the
central franchisor constantly assess substitutions in new
locations prior to expanding as each may differ.
Buyer Power and Incentives of Decision makers
Determining buyer power and incentives of decision makers is

important for the business as it has the opportunity to expand
brand awareness. It would be a good plan for the franchisor to
stay involved with the community, charities, and schools teams.
Hog Wild’s restaurant posts all the thank you letters it receives
on the bulletin board, as advertisement of the brand
involvement. This creates word of mouth advertising and
nothing makes a bigger impact than a team or school. The local
restaurant can also schedule events like fair booths, tractor
pulls, and more charity events for publicity. They can send
coupons via social media to raise awareness. They could have a
day designated to give a percentage of the proceeds of sales to a
favorite local charity or some natural disaster for the publicity.
All of these things can help create loyal customers who will
choose their brand over other brands.
Improvements
There are some improvements that would help make Hog Wild’s
business more profitable. Hutchinson was the first restaurant
started and the large growth was not anticipated. But now that it
has had success, it is time to invest in a larger space. This
branch needs a new larger location that can accommodate even
more customers. The drive through backs up into the street at
busy times and is antiquated, so replacing this should be a top
priority. The parking lot and street parking is inadequate, and a
new restaurant location could have more parking. The new
space could include a larger kitchen so that the local branch
would have happier employees with more space.
The next improvement would be to change their potato salad to
a different recipe. There have been some complaints on the
social media blogs that this item could be improved. Next, they
could offer more vegetables and health conscious salads which
also go with BBQ but accommodate the healthier vegetarian
palate also. Hog Wild’s target customer is not vegetarian but
this could be a small improvement to the menu not to alienate
the health-conscious, vegetarian, or dieting customer. The other
menu improvement they could try is offering a bar menu. They
offer soft drinks and Tea only now, but this bar menu could be

done as a trial to see if popular.
Brief Summary of Business Plan Inclusions & 12 month Action
Plan to Franchise
Hog Wild’s Business Plan would need to include (SBA, 2014):
· Executive Summary
· Company Description
· How business is organized and who will manage it
· What products and services it will offer
· Market Analysis
· Sales and Marketing Plan
· Financial Plan and Request for funding
· Appendix including resume, licenses, leases
Hog Wild’s 12 Month Action Plan would go as follows:
Conclusion
Hog Wild has a very good chance at Franchising into the
neighboring states, especially the ones bordering Kansas. They
can take their time and spend due diligence to research feedback
on what menu items work for which areas. They can find the
best suppliers in the local areas that have a quality product for a
fair price. It would be prudent planning on their part and
worthwhile to the franchisees that buy into their business
system. Careful training to ensure same standards of flavor and
juiciness of meat is preserved during cooking techniques across
all franchise units is necessary for consistent brand message.
Would I purchase or buy into the franchise model of this
business? I would, because I know the units in the area here are
already profitable and the community likes and knows the brand
well. They have excellent publicity and a catchy jingle that
people remember. The niche they fill is great value for money
well spent.
Link to website of the business:
http://www.hogwildpitbbq.com/wichita-menu.php
References:

Go Hog Wild Pit Bar-B-Q and Catering. (2014). In Hog Wild
Pit BBQ. Retrieved May 27, 2014,
from http://www.hogwildpitbbq.com/
Vision on Innovation: 2. Models on the dynamics of innovation.
(2013). In Caneval Ventures.
Retrieved May 27, 2014
Thorn, B. (2013, July 3). Nation's Restaurant News. In 7
barbecue chains that are leading the
way. Retrieved May 30, 2014, from http://nrn.com/food-
trends/barbecue-chains-are-leading-way?page=2
The Famous Dave's Franchise Opportunity. (2013). In Famous
Dave's. Retrieved May 30, 2014,
from
http://famousdavesfranchising.com/famous_daves_opportunity.h
tml
David, F. R. (2012, January 8). Strategic Management
Concepts: A Competitive Advantage
Approach. 14th edition. Ininkling.com. Retrieved May 30, 2014,
from https://www.inkling.com/read/strategic-management-
david-14th/chapter-5/michael-porters-five-generic
How to Write a Business Plan. (n.d.). In SBA.gov or the US
Small Business Administration.
Retrieved May 30, 2014, from
http://www.sba.gov/category/navigation-structure/starting-
managing-business/starting-business/how-write-business-plan
January

Meet with attorney, accountant, and team of franchise personnel
to acquire licensing, discuss implications of taxes/fees, and
organization of business headquarters.
Determine memorable "image"franchisor wants to sell
February
Write a business plan and action plan for franchising units
Meet with finance options and decide what type of financing
wanted, secure financing
March
Come up with Franchise Mission
April
Determine marketing objectives
June
Identify the target customer or group

May
July
Analyze the niche the product/service is to enter
Asses the 4 P's: price, promotion, product, and place
Understand and discuss market strategies to reach target group
and measure feedback and compare with competition in market
Develop a culture of brand pride and loyalty within
headquarters
Balance internal and external marketing information
Develop ways to bring support to franchisees and a contingency
plan for unhappy franchisee buyer or bad publicity of brand
August
Determine what research will be done and how often to remain
ahead of competitors
Finalize business system to be offered and standardize training
manuals

Strategic Planning for Long and Short Terms
September
Decide attributes of franchisees to advertise to and accept
Decide on advertisement, qualifying process for franchisees
October
Interview franchisees and select best qualified.
Promote and advertise business and brand as well as franchisee
offering
Train franchisees and select advertising for Grand Openings.
Collect Franchise Agreements with initial fees from
Franchisees, Have them sign legal paperwork, and collect
training fees.
November
December

Continue marketing for Grand Opening
Hiring of Franchisee's employees and training for Grand
Opening
Press Kit Introduction to TV and Radio for Grand Opening
Events.
GRAND OPENING of franchisee's units
Determine objectives for distribution network, human resources,
operations, controls, financial, according to importance
Come up with franchisee location territories and site selection
for restaurants. Start procuring leases and permits.
Continued marketing and training for sales success

Franchise Opportunity Analysis: Bombers Burrito Bar
Franchise Opportunity Analysis:
Bombers Burrito Bar
Claudette B. Lawson
Southern New Hampshire University
Author Note
This paper was prepared for OL 640: Franchising, taught by Dr.
Gary White
Outline
1. Summary

2. Overview of the Business Concept
3. Assessment of the Five Industry Forces
4. Criteria for Successful Franchises
5. Benefits of Franchising for the Franchisor
6. Disadvantages to the Franchisor
7. 12-Month Action Plan
8. Conclusion
9. References
Summary
This paper provides an overview and franchise opportunity
analysis of the local chain restaurant, Bombers Burrito Bar.
Bombers Burrito Bar is known for their giant burritos, award-
winning wings and great drinks. They are committed to serving
great food made from fresh ingredients and shaking delicious
premium margaritas and beers. The company was founded in
1997 with $15,000 and today they have a total of three
locations. Bombers is the hot spot for students, poor rock
bands, cheap state workers and pretty much anyone with a tattoo
or multiple facial piercings, states the company website (Our
History, n.d.). They specialize in great food for great prices.
The atmosphere at Bombers is very festive, high energy and
always includes a diverse clientele.

Assessing the franchise concept utilizing Michael Porter’s
framework of five industry forces (rivalry, threat of substitutes,
buyer power, supplier power, and threat of new entrants and
entry barriers) shows that Bombers is in a good position to be
successful. Weighing out the benefits of the franchise system
against some of the potential disadvantages shows that the
benefits far outweigh any disadvantages with the main
advantage being the opportunity to quickly expand with limited
capital outlay.
Before expanding through franchising, the company will utilize
a 12 month PERT process to prepare itself for franchising their
operations and they will put together a well rounded board of
advisors to help them along the way.
Overview of the Business Concept
Bombers Burrito Bar is known for their giant burritos,
award-winning wings and great drinks. They are committed to
serving great food made from fresh ingredients and shaking
delicious premium margaritas and beers. The company was
founded in 1997 with $15,000 and today they have a total of
three locations. Bombers is the hot spot for students, poor rock
bands, cheap state workers and pretty much anyone with a tattoo
or multiple facial piercings, states the company website (Our
History, n.d.). They specialize in great food for great prices.
The atmosphere at Bombers is very festive, high energy and
always includes a diverse clientele.
Assessment of the Five Industry Forces
I believe that developing Bombers into a franchise would be a
great opportunity for both the franchisor and the franchisee.
Porter (n.d.) provides a framework of five industry forces that
strategic business managers can evaluate to develop an edge
over rival firms and better understand the industry context. A
brief description of each of the five forces and my assessment
of Bombers with each of these follows:
1. Rivalry – the competition among rival firms with intensity
influenced by the amount of firms competing for the same

customers and resources, slow market growth causing firms to
fight for market share, high fixed costs, high storage costs or
highly perishable products, low switching costs, low levels of
product differentiation, and high exit barriers.
a. In the local Albany, NY territory there is limited rivalry in
their niche burrito bar industry. Main competitors are Chipotle,
Chili’s, and Moe’s, but none of these caters to the fast food
industry and also provides a bar atmosphere.
2. Threat of Substitutes – a threat of substitutes exists when a
product’s demand is affected by the price change of a substitute
product.
a. Bombers focuses on offering locally grown products for the
majority of their menu items, but their bar menu and other
restaurant needs could be subject to pricing concerns. This
would not only affect Bombers, though, it would affect all of
their competitors. Operating on a franchise capacity would
enable them to secure bulk goods at cheaper prices.
3. Buyer Power – The power of buyers is the impact that
customers have on a producing industry.
a. No particular buyer has any particular influence on the
products or pricing of the Bombers products.
4. Supplier Power – Suppliers, if powerful, can exert an
influence on the producing industry, such as selling raw
materials at a high price to capture some of the industry’s
profits.
a. There are many competitive suppliers within the Albany area,
so I don’t believe that Bombers would be subjected to this
issue.
5. Threat of New Entrants and Entry Barriers - Barriers to entry
are unique industry characteristics that define the industry.
a. There are not many barriers to entry within the burrito
industry. The current competitors will probably have greater
economies of scale, but Bombers has been able to penetrate the
inner city market and tap the bar clientele to build a loyal client
base.
Criteria for Successful Franchises

Bombers meets many of the criteria that Judd and Justis (2008)
describe that will make it a good franchise. The criteria
described by Judd and Justis (2008) are:
· Business owner/franchisor must have an entrepreneurial spirit
· Must have a prototype store or unit
· Must be able to replicate my prototype units
· Must be able to teach your system for operating the business
to others – prospective franchisees and their staffs
· The products and services must be viewed as valuable and
superior to the competition
· The product must meet the test of distance
· The product must provide a differential advantage over the
competition
· Growth plans must be realistic (pp. 42-45)
Bombers is owned by a entrepreneurial owner who started the
business with $15,000 won in a bet. All three of their local
stores are operating profitably and successfully. Whether you
enter the Albany, Schenectady, or Troy bars you will be greeted
with the same type of energy and high quality food. The service
is always prompt and servers greet you with a smile.
Benefits of Franchising for the Franchisor
The benefits of franchising Bombers to the franchisor would be
that they would be able to expand quickly with limited capital
outlay. Goldberg (n.d.) says that the “primary benefit is the
ability to use other people’s money to expand the brand more
rapidly than they could either on their own or through investors
or lenders.” Judd and Justis (2008) explain that “expansion
efforts are costly and franchising provides an opportunity to
share this burden on the road to success” (p. 38). The royalty
fees and other costs can provide significant income to
franchisors. Franchisors are able to expand into other
geographic markets while still focusing on their local market.
“Rapid expansion through a franchising network enables the
franchisor to devote more time to operational planning, market
analysis and assessment, quality control, and strategies for
improving the franchise system itself (Judd & Justis, 2008, p.

38). The franchised business will be able to take advantage of
economies of scale by purchasing in bulk. Advertising is a
shared cost of franchisees which can help the franchisor
increase their market presence.
Disadvantages to the Franchisor
Some of the potential disadvantages of franchising your
business are recruitment issues, commucation problems, and
loss of freedom (Judd & Justis, 2008, p. 40). Franchisors may
find that it is hard to find potential franchisees who have the
experience, motivation or proper capital backing needed to
become successful franchisees (Judd & Justis, 2008, p. 40).
There is a great deal of work that goes into owning a franchised
business and it is essential that potential franchisees are
carefully selected to ensure theirs and ultimately your success.
Communication problems can be driven by an unclearly
written franchise agreement. All terms must be written out
clearly to avoid future misunderstandings. Conflicts can arise
due to lack of support, inadequate training, territorial problems,
misrepresentation, fraud, and unhappy franchisees. The
franchisor must ensure that regular and clear communication is
provided to all franchisees as well as sufficient support and
training (staff, n.d.).
The expansion of the franchise system can cause the franchisor
to lose the freedom they had grown accustomed to. As the
business expands, the franchisor’s flexibility to change
products, add new products, eliminate services or change
policies can be significantly be reduced (Judd & Justis, 2008, p.
41).
12 Month Action Plan
Now that we have decided to franchise our Bombers
Burrito Bar business, a 12-month action plan must be put
together to ensure that the organization carefully steps into the
franchising business with a well thought out plan for success.
Utilizing the project evaluation review technique (PERT) listed
by Judd & Justis, 2008, p. 89), beginning the franchise system
can be broken out into well-defined and manageable phases.

PHASE 1 – Research and Analysis – Months 1 - 3
Phase 1 will be carried out in months one through three
and is very significant to the franchises overall success due to
all of the background work that is completed. In this phase we
will conduct a more thorough feasibility analysis and then
complete our business plan. The business plan is key to our
success and includes a “detailed blueprint of operations” (Judd
& Justis, 2008, p. 68). The business plan includes the following
sections:
· Executive Summary: Details the company’s name, type of
business, description, key personnel, start-up schedule and
competition, funds requested, funds use statement, and fund
repayment
· Marketing Plan: Major marketing objectives, plan, pricing
strategy, franchise recruitment plan, franchise prospectus,
franchise sales and advertising, franchise location criteria
selection, grand opening plan, and customer advertising
· Management Structure: Headquarters to include the
organizational structure, policies and personnel. Franchise to
also include their organizational structure, policies, and
personnel. Operations manual, training manual and PERT chart
· Financing and Accounting for both headquarters and
franchisees: start-up costs, financial position for securing
franchise, pro forma income statement and balance sheet,
projected cash flow, breakeven analysis, ratio analysis, and
provision for taxation
· Legal Aspects: Business structure, contracts, licenses,
trademarks, insurance, disclosure documents, franchise
agreement, and franchisor-franchisee conditions
· The Appendix will include building plans, layout design,
graphs, working papers, diagrams, layouts, and charts (Judd &
Justis, 2008, p. 73)
In Phase 1 we will also put together our franchise advisory
board. The franchise advisory board will provide a way for us
to gain advice and counsel from experienced and knowledgeable
professionals with varying professional backgrounds. “A

qualified Board of directors can be a significant benefit for a
franchisor” with some of the benefits being to:
· Bring objectivity to franchisor strategy and important decision
making
· Provide an expertise that the franchisor does not have
· The opportunity to receive feedback and input from people not
related to franchise ownership either financially or otherwise
· A group of specialists that can provide competent advice when
needed
· Can be more cost effective versus engaging various
consultants (Teixeira, n.d., Why franchisors).
I plan on selecting an attorney and CPA that are both well
versed in the franchise and restaurant industries, a marketing
executive to provide input into our marketing campaigns, a
culinary arts director from a local and reputable college to
provide insight into how we can enhance our menu and also
build relationships with the community, an executive from a
local business that can provide insight into the business side of
things, an educator from a university with a background in
organizational leadership to help us create a corporate culture
that will lead to success, and a member of the International
Franchise Association to help provide insight into franchise
operations. This well rounded team will be a valuable asset to
our operations and will help us to consider all aspects of
franchising our burrito bar.
PHASE 2 – Organizational Development (Internal and External)
– Months 3 - 5
In months three through five we will undergo phase 2, which is
developing our internal and external organization. We will put
together our legal documents, operating documents, training
manual, recruitment brochure, marketing plan, franchise
recruitment strategy, and location analysis criteria (Judd &
Justis, 2008, pp. 89-90).
PHASE 3 – Marketing to Franchisees – Months 5 – 12
In month 5 we will begin marketing to franchisees. In this
phase we will compile our marketing package, develop a

franchisee profile, and begin mass advertising to attract our
ideal franchisee. Seminars can be held both online and at
various target locations as well.
PHASE 4 – Franchisee Selection – Months 6 – 12
In this phase, we will begin to review applications,
interview potential franchisees and begin our selection
processes based on the requirements that we have decided upon
for successful franchisees.
PHASE 5 – Site (Building) and Training – Months 7 – 12
In phase 5 we will focus on site selection and training.
The franchisees will need to select their own sites, but we will
want to review the sites to ensure they meet our site
qualifications. While the sites are being prepared, the
franchisee and their management team will begin training at one
of our existing restaurants.
PHASE 5 – Start-up and Feedback
In the start-up phase, the franchisor will assist the
franchisee with their grand opening activities and be available
to assist them while they get up and running. In addition,
eliciting feedback will be essential for the franchisor as they
seek to tweak their franchise system for optimal success.
In conclusion, the Bomber’s Burrito Bar concept will be a
successful franchise business because of their easily
standardized procedures and policies, they use fresh ingredients
that caters to the more holistic and organic audience (currently
a popular trend), they offer a popular ethnic food, they provide
a relaxed but fun bar atmosphere that caters to a wide age range,
and also because they locally own and operate three successful
stores. I would definitely invest in the franchise system
because I am a fan of the business and believe that the concept
would be able to be duplicated in other markets.
References:
Bombers Burrito Bar. (n.d.). Retrieved from:
http://www.bombersburritobar.com/albany.html

Goldberg, E. (n.d.). The benefits of the franchise model.
Retrieved from:
http://www.franchising.com/howtofranchiseguide/benefits_of_th
e_franchise_model.html
Judd, R. J., & Justis, R. T. (2008). Franchising: An
entrepreneur’s guide. (4th ed). Mason, OH: Cengage Learning
Our history. (n.d.). Retrieved from:
http://www.bombersburritobar.com/Lark-Bar_Menu.pdf
Porter, M. E. (n.d.). Porter’s five forces: A model for industry
analysis. Retrieved from:
http://www.quickmba.com/strategy/porter.shtml
Staff (n.d.). What are the disadvantages of franchising a
business?. Retrieved from:
http://www.whichfranchise.com/franchiseyourbusiness/index.cf
m?FeatureID=288
Teixeira, E. (n.d.). Why franchisors need an effective board of
directors. [Web log post]. Retrieved May 17, 2014 from:
http://www.franchiseknowhow.com/blog/2012/08/why-
franchisors-need-an-effective-board-of-directors.php
1
Peer Analysis Guidelines and Grading Guide
Overview
In this project, you will write a Peer Analysis of the franchising
action plan of one of your classmates in the course. You will
choose a Franchise Opportunity Analysis that one of your
classmates posted to the discussion board and complete a review
of the franchise opportunity. Your review should address the
following points:
· What was done well

· What needs improvement
· What additions are needed
Include specific details and examples to support your statements
and arguments.
Objectives
To successfully complete this project, you will be expected to
apply what you have learned in this course and should include
several of the following course objectives:
1. Identify and strategically access a franchise opportunity
Main Elements
The Peer Analysis should be double-spaced, using 12-point
Times New Roman font, APA style format, and four-to-five
pages in length. You should use concrete examples from the
course readings and the franchise analysis to support your
analysis. The paper should include the following elements:
Critical points:
Address the following questions in your assessment of the
suggested franchise:
· Why do/don’t you agree with the assessment?
· How would you validate your opinion? Use citations from the
articles and textbook.
· How would you adjust the action plan and why?
Conclusion:
A summary of what you discussed, why you came to the
conclusions you did, and what was beneficial about doing this
analysis.

Peer Analysis Rubric
Requirements of submission: Written components of projects
must follow these formatting guidelines when applicable:
double spacing, 12-point Times New Roman font, one-inch
margins, and APA citations. The project should be 4-5 pages in
length, not including the cover page and resources.
Instructor Feedback: Students can find their feedback in the
grade book as an attachment.
Critical Elements
Distinguished
Proficient
Emerging
Not Evident
Value
Main Elements
Includes almost all of the main elements and requirements and
cites multiple examples to illustrate each element
(23-25)
Includes most of the main elements and requirements and cites
many examples to illustrate each element
(20-22)
Includes some of the main elements and requirements
(18-19)
Does not include any of the main elements and requirements
(0-17)
25
Inquiry and Analysis
Explores multiple issues through extensive collection and in-
depth analysis of evidence to make informed conclusions
(18-20)
Explores some issues through collection and in-depth analysis
of evidence to make informed conclusions

339 Part III Restaurants, Managed Services, and BeveragesChapt.docx

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