2. • To succeed in the face of tough
competition, you must analyze what your
guests want and what your establishment
means to them.
3. • The Business Plan – the resume of your
business
Creating a Business Plan
4. • Should serve as your basic operating tool
• Should be useful for communicating
exactly who and what you are
• Should be useful in obtaining financing
Business Plan
A Good Business Plan should:
5. • If you are not much of a writer, you can
hire a freelancer to spend hours
organizing, editing and making all of the
plan components fit together.
Business Plan
6. • As an operating tool, a business plan
should answer the following questions:
– Where are we now?
– Where do we want to be next year?
– Where do we want to be two or three years
from now?
– How are we going to get there?
Business Plan
7. • Requires a detailed description of the
physical structure and its neighborhood
location.
• Factors worth including are traffic in the
area (car and foot), zoning, accesibility,
parking, and crime.
Location Analysis
8. • This is a comparison of your operation’s
actual (or anticipated) performance
against similar types of businesses.
• This forces you to figure out the activities,
strategies, and strengths of your
competition, and to decide how effective
they are.
Competitor Analysis
9. • Strengths, Weaknesses, Opportunities
and Threats
• The first two are internal: factors that you
can control.
• The other two are external: factors that
you can notice and react to.
SWOT Analysis
10. • The real objectives of this analysis are to
identify weakness and turn them into
strengths and to identify threats in order to
turn them into opportunities.
• You might also notice that your
weaknesses are your competitors’
strengths and vice versa.
Business Plan
11. • Lack of follow-through
– If you cannot translate ideas into action, you
are “running on empty”
Reasons why some business plans fail:
12. • Much talk, minimal resources
– The implementation of your goals requires
you to continually scale back and perhaps
even to eliminate portions of the plan.
Reasons why some business plans fail:
13. • Procrastination
– Quick decisive action is often necessary to
take advantage of a business opportunity.
– Think it over, but don’t think too long.
– Delays often include throwing roadblocks in
your way and hoping a negative trend or
persistent problem will disappear or right
itself.
Reasons why some business plans fail:
14. • Refining an idea endlessly
– One way to ensure that nothing happens is to
scrutinize portions of the plan forever.
Reasons why some business plans fail:
15. • Focusing on the buy-in
– This means getting everyone’s opinion before
acting.
– The idea of listening to other’s viewpoints is
valid – but not if it is used to avoid taking
action
Reasons why some business plans fail:
16. • Lack of vision
– Your bar must have a life, a feeling, a vision,
and an attitude – that’s how you connect with
your guests.
– Without these attributes, there is no reason
why guests would prefer your bar to a
competitor’s.
Reasons why some business plans fail:
18. • It’s a source of income, the culmination of
hard work, a home a way from home, a
family legacy, or a retirement fund, etc.
A Bar’s Worth
19. • Two ways to valuate:
– Business valuation
– Business appraisal
A Bar’s Worth
20. • Appraisal is a procedure used to determine the
value of something tangible or physical.
• Valuation analyzes both tangible and intangible
aspects of the company: the industry in general,
the state of the economy, the company’s historical
performance and projections, the company’s
customer base, proprietary rights, management
structure, strengths and weaknesses of the
business, government licenses or regulations that
affect the business.
A Bar’s Worth
21. • Business valuation also involves adjusting the
assets of the business to reflect its fair-market
value.
• Fair market value is the price that a business
could expect to bring if it were put up for sale
under the current conditions for a reasonable time
period, assuming that both the buyer and the
seller were informed and neither was acting under
pressure to but or sell, respectively.
A Bar’s Worth
22. • Investment value – used to determine
what a business is worth to a potential
investor, taking into consideration
whatever assets the investors bring to the
table.
A Bar’s Worth
23. • Liquidation Value – most often
associated with bankruptcies and
foreclosures.
– It is how much the business’ physical assets
would sell for at an auction, which is a fraction
of their original worth.
A Bar’s Worth
24. • Intrinsic Value – worth based on a
perceived future outcome. Determining the
value is a very hard task, and it is the type
of value that is most difficult to quantify
and justify.
A Bar’s Worth
26. • Define your market
– Market segment is a more or less
homogenous subgroup of the total consumer
market; its members have similar needs and
wants, attitudes, lifestyles, income levels,
purchasing patterns, and so on.
Marketing Plan
Steps:
27. • Determine which products and services
this market segment wants to buy.
Marketing Plan
Steps:
28. • Shape everything about your enterprise
to attract customers and sell the product
at a profit.
Marketing Plan
Steps:
29. • Positioning involves two elements:
– Customers
– Competitors
Positioning Your Business
30. • The success of your bar will depend to a
large degree on your ability to know your
customers.
• Knowing your customers means keeping a
watchful eye on the types of people who
visit your establishment.
The Patron
31. • Is the moment of truth when a guest and
server first converse and strike up a
relationship, however temporary.
• In this moment, the server represents the
entire bar and can make or break a
customer’s experience.
Service Encounter
32. • Involves getting the drink ordered,
produced, and delivered to the customer,
is part of the service encounter.
Delivery System
33. • Also called the landscape, refers to the
environment in which the service
encounter takes place.
Service Scape
34. • “the product itself affects the guest
experience”
• The experience includes whether the bar
carries, and the bartender can make, what
the guest wants; the presentation, portion
size, and price of the product; and whether
it is attractive at a fair value.
35. • Primary – those bars with concepts similar
to yours
• Secondary – those bars that could be
considered competition simply because
they are located near your proposed site.
Competitors
39. • Is a subjective impression based on
something unique or memorable about
your place.
• Image is the element that you will
emphasize in promotions, advertising and
on-site merchandising.
Image
40. • Is the overall impression you want to
create
• They have to do with what is seen, heard,
touched, and tasted – the total sensory
impressions
Ambiance
41. • Ambiance may well be the most influential
part of the customer experience, and it is
likely to make impact immediately.
Ambiance
42. • Human factors include service
components: speed, accuracy,
friendliness, product knowledge, and even
the server’s appearance.
Other Factors
43. • Decor creates the first impression; comfort
has a slower but no less significant impact.
• Lighting is also both decor and comfort
• Temperature is not important to the
customer until it is too hot or too cold
• Noise level is another comfort factor that
you can control according to customer
tastes.
Decor, Comfort and Service
44. • “Sight and sound provide the first
impression, but human encounters provide
second and most lasting.”
45. • Achieving customer satisfaction does not happen
by itself. It depends on selecting friendly, people-
oriented staff members and training them
thoroughly in you products, serving routines,
customer relations, and philosophy of service.
• Customer satisfaction also depends on your own
performance with people, both your own personal
impact and the model you set for employees.
46. • Another human ingredient of atmosphere
is the customer. If you focus your
marketing efforts on attracting a certain
clientele, you will have a compatible mix,
and people will feel comfortable from the
beginning, ready to enjoy their experience.
47. • What you serve says as much about as
how the room looks.
• More and more bars are replacing chips,
popcorns and pretzels with real food and
charging for it.
Bar Food and Snacks
48. • Raising the quality of the food you offer,
even if the menu is limited, has several
important effects:
– It adds to the enjoyment of the drinks
– It prompts people to spend a bit more time
and money
– It slows the absorption of alcohol into the
guest’s system
– Making the cocktail drinking experience safer.
Bar Food and Snacks
49. • An attractive menu is fully capable of
prompting one more round of cocktails or
by the glass wines at tables.
Bar Food and Snacks
50. • Understand your limitations
– Consider how big and/or sophisticated the
kitchen is.
When deciding how extensive
Your bar menu should be:
51. • Set hours, at least for serving hot food
– If the menu is more extensive than simple
snacks, be sure that any printed menu lists
the hours that the food will be available.
When deciding how extensive
Your bar menu should be:
52. • Restaurant/bar combinations should
function as a team
– The kitchen staff must view the bar menu as
an integral part of the operation, not just
another element that slows down the main
event meals in the dining area.
When deciding how extensive
Your bar menu should be:
53. • Be willing to update the menu regularly
– If you have daily or weekly drink specials, do
the same for food items.
When deciding how extensive
Your bar menu should be:
54. • Merchandise drinks and foods together
– Pair signature cocktails with foods
When deciding how extensive
Your bar menu should be:
55. • Word of Mouth
– By far the most effective marketing vehicle
– That is – people telling people about your
place
Marketing Tools
To Attract Customers
56. • Word of Mouth
– Raises then stakes of customer service –
since problems and missteps as well as
praises can be instantly tweeted or posted on
someone’s wall.
– If information about your bar is going to “go
viral” it had better be good news
Marketing Tools
To Attract Customers
57. • New, Reviews and Feature Stories
– A story in the newspaper, on radio, or on
television can reach people and increase
awareness of those who have already heard
about you.
– The only cost is time and effort or what you
might pay someone else to write a news
release.
Marketing Tools
To Attract Customers
58. • Personal Contact
– Asking people you know to bring in people
they know
– Encourage your customers to bring in other
customers
– Organize games or contests centered on their
interests
Marketing Tools
To Attract Customers
59. • Promotional Event
– Choose a charitable cause or civic group and
donate a portion of profits.
– Every promotion must be planned, budgeted,
fairly priced, and to the extent that is possible
in advanced, rehearsed.
Marketing Tools
To Attract Customers
60. • Ask for it
• Provide a questionnaire
• Hire mystery shoppers
• Employee feedback
Checking Your Progress
61. • Happy Hour
• Bundling – packaging two or more items
together and selling them at a set price
• Prix fixe – different items paired up and
served at a discount
Pricing as a Promotional Tool
62. • Trademark – the legal process of
registering a name to give you exclusive
rights to use it.
• Copyrights – protect original works of
authorship, fixed in any tangible medium
or expression
Protecting and Expanding your
Concept
