Marketing Plan ProposalEssentials of Marketing - Section 1Paul BaetenCharles BlockNeal CorbyCarolyn DolnikCorbin Stenz

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Source: http://www.facebook.com/pages/Electric-Lounge-Lanes

TABLE OF CONTENTS

Executive Summary …………………………………………………………………………………..……………… 3

Introduction …………………………………………………………………………………………………………….. 4

Situational Analysis ………………………………………………………..………………………………………… 5

Marketing Objectives ……………………………………………………………………………………………….. 8

Target Market ………………………………………………………………………………………………………….. 8

Marketing Program/Marketing Mix …………………………………………………………………………. 9

Three Year Marketing Objectives ……………………………………………………………………………. 11

Measurement and Control ……………………………………………………………………………………… 12

Implementation Schedule ………………………………………………………………………………………. 13

Budget ……………………………………………………………………………………………………………………. 14

Works Cited ……………………………………………………………………………………………………………. 17

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EXECUTIVE SUMMARY

There are a number of different bars in the Oshkosh area. What sets the Electric Lounge apart from others is its versatility. The Electric Lounge can be a bar, concert hall, banquet room, and bowling alley. With all of these services less than one roof the Electric Lounge should be right in line with the most popular bars in Oshkosh.

Our plan is to introduce and market this establishment to the 18-24 year old demographic, more specifically UW Oshkosh students. By segmenting our market by demographics, psychographics (consumer who enjoy live music and bowling), and benefit sought (banquets and college deals) we can tailor of message to incorporate all that the Electric Lounge has to offer.

As stated above the Electric Lounge can provide a variety of services. Our number one service would first be the bar serving both beverages and food. For the target market that we are going after we expect the bar to be our number one source of revenue. Second the Electric Lounge also has a 10 lane bowling alley that happens to be a favorite past time in Oshkosh. The bowling alley we expect to be our second source of income. A lot of college student do not even know that the Electric Lounge has a bowling alley and this will also provide another source of entertainment for our non 21 year-old customers. Our third service will be events such as live music and banquets. For our live concert events we will be instituting a cover charge. Pricing for the cover charge will depend on the musical act that is preforming.

The key to the Electric Lounge’s success will depend on effective promotion and advertising. Currently the Electric Lounge does not seem to be a popular bar in the Oshkosh community, and even more so with young college students. With limited brand awareness and product knowledge the college community does not have the chance to experience the multitude of products the Electric lounge has to offer.

Successful drink specials on the weekends focusing on low prices and high quantity of drinks, increases the perceived value of the bar. We want to drive high traffic into the Electric lounge to build popularity amongst college students. By offering specials on low price drinks we can effectively compete with other area bars. This also helps us better target out demographic of 18 – 24 year olds who would most likely have a limited income.

In order for our promotions to be successful it would require us to advertise effectively. Our main target will be University of Oshkosh college students. Advertising to them would include limited radio and tv advertisements, Facebook and media channels, and word of mouth. It is extremely important that these advertisements are placed effectively if we want to generate enough sales volume to make our promotional

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strategies profitable. We feel we can use these channels effectively, and by having a unique product mix, achieve the level of desirable demand.

There are as little as 11 bars on Main St., 4 on or across the street from UW-Oshkosh, and at least another 4 within 2 blocks of Main St. The bar market is saturated in and around UW-Oshkosh. The majority of the bars offer typically the same things: food, beer/alcohol, pool tables and darts, and maybe the occasional live band. After analyzing the situation and coming to terms with the fact that The Electric Lounge isn’t in a prime location either on Main St. or around campus we had to look for what could and would set The Electric Lounge apart in order to bring in the 18 to 24 crowd. This would include setting up a transportation service in partnership with the City of Oshkosh and bringing popular bands to play in the 500 person capacity hall which is considerably bigger than any bar on or around Main St. or campus.

One of our main advantages is that we won’t have to deal with startup costs. We’ll have the typical costs of any restaurant/bar/bowling alley. This will benefit us in the sense that we won’t expect to see negative profits within our first few years of business after the grand re-opening. The Electric Lounge is an already established business with a steady customer base, but we will be able to expand business with our implemented business plans. Given our goals and business plan, we projected profits to be (before taxes) $230,247.41 in 2013, $280,481.18 in 2014, and $341,694.90 in 2015. We left our profits at a before tax figure since taxes for a small business depend on many different factors.

We expect great results from this business plan because we feel there is a great need for a new and unique type of entertainment here in Oshkosh. We can reach different demographics, such as University students and Oshkosh residents, based on the types of services we have to offer. The atmosphere itself will attract students since is a completely different vibe than what they’re used to seeing at campus bars. We’ll successfully get them to our Lounge through the added convenience of complimentary transportation.

Introduction

The business that we have decided to develop our plan for was the Electric Lounge in downtown Oshkosh. Formerly known as the Eagles Club, the Electric Lounge can be used for a number of different occasions. In the basement there is a 10-lane bowling alley, which just happens to be a favorite past time in Oshkosh, and a ballroom, Gala Hall, located on the main floor as well as a concert stage. There is also a balcony that overlooks the entire hall with a perfect view of the stage. Some of the other features of the Electric Lounge include a game room, four bars, pool table rooms and

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dart boards. With these activities and the ability to hold banquets for college clubs the Electric Lounge should be more popular among the college market.

Around the UW Oshkosh campus the Electric Lounge is know more as a concert venue than a bar or bowling alley. They have been unsuccessfully trying to bring the nearby UW Oshkosh college students to their place. The once popular rapper Twista was scheduled to perform there last year, however he ended up not showing up. This did not help the establishment’s popularity around the campus. In November another popular rapper, Shwayze, played a show there however promotions for the show where not well advertised on the campus, also the rapper posted the wrong date on his social media sites so the turn out for the event was poorer than expected. Another problem with the Electric Lounge is that most college students do not know the place exists. It is tough to get college students to venture past Main St. and the Electric Lounge is located about a block past Main St on 405 Washington Avenue. We have decided to help redevelop the Electric Lounge, gain more attractiveness, and raise awareness at the UW-Oshkosh campus.

It is no secret the college demographic here in Oshkosh likes to go out and have a good time. The great thing about the Electric Lounge is that we can cater to both the 21-year-old and older crowd as well as the underage crowd because of the variety of services that we offer. The Electric Lounge has the ability to combine the best parts of all the campus bars all under one roof. With the right execution of the 4 P’s the Electric Lounge can challenge any bar in Oshkosh.

SITUATIONAL ANALYSIS

The situational analysis for The Electric lounge will be looking at several factors that could lead to its success or its demise. In determining the Strengths, Weaknesses,Opportunities, and Threats we were able to better determine what is/was missing from The Electric Lounge and therefore come up with possible courses of action to better position the business.

Strengths WeaknessesProduct Several different options for

patrons to include Banquet facilities, Bowling Alley, Full Bar, Birthday and Party Room, Pizza and Appetizers, Pool Tables, Dart Boards, Open bowling

Core group of bars two-and-a-half blocks away on main street

Banquet Facility that can hold

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Can hold up to 500 people in the main ball room

Party room can hold up to 100Can provide a large venue for a concert or battle of the bands

Price Reasonably priced food and drink specials

Bars in the local area also have specials

Promotion Strong Facebook following with 1,861 Likes for Electric Lounge, 1,630 Oblios, Peabody's Ale House 207 Friends, French Quarter 1,584 Friends, Molly McGuires 167 Likes

Has not been included in Pub Crawl due to not being on Main St. causing large amounts of potential revenue from not being realized

Traditionally The Electric Lounge has stuck to word of mouth advertising primarily through Facebook

Opportunities ThreatsPlace It is more "secluded" giving it an

out-of-the mainstream feelNo less than 14 bars on or within 3 blocks of Main St. besides The Electric Lounge

Off campus location with more things to do for school organizations and clubs

1.3 miles from UW-Oshkosh, walking distance is only slightly farther than Main St. but might make a difference in the winter4 bars either on campus or across the street

Services Working out a deal with the drunk bus to pick up and drop off at our front door

Students coming for bowling may not know how to manually score and could be turned off by that

Guaranteed live music once a week is likely to draw in fans of those bands who in turn may like the venue and ask that the band be invited back

Economic Provide more of a menu selection for less cost for UW-Oshkosh student organizations

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and their functions when compared to Sodexho

Weaknesses and Threats

The main Weakness and Threat to The Electric Lounge is location. The Electric Lounge is located almost 3 blocks off of Main St. opposite the side the campus is on. This provides a problem because with bars right outside campus and then a 4 to 5 block walk to Main St. where there are another 11 bars possibilities are numerous for college students. In the fair weather months they are more likely to walk to those bars, get used to those bars, and then when the weather gets worse the students will then choose those bars to drive to first due to brand awareness. The fact that Pub Crawl does not include bars that aren’t right next to campus or on Main St. is also another great hindrance.

With not having a location on Main St. this means that The Electric Lounge will need to have to make up in other ways as location is not an easy thing to change without much capital. The way to offset the location situation would be to make it easier for the students to get there by providing a transportation service free of charge. The cost of providing the service directly will be highly costly so working something out with the City of Oshkosh and getting them to extend their “drunk bus” service to include The Electric Lounge as a stop for a minor fee on the lounges part would be a better way to go.

Strengths and Opportunities

What The Electric Lounge has going for it that other bars do not is a large venue for live bands. The other bars have spots for bands but with only being able to handle approximately 80 to 120 people in the bar this means small gathering compared to what The Electric Lounge can offer with up to 500 in the main hall. This allows them the opportunity to bring in bigger name bands that will draw bigger crowds. There is also the ability to host school organization’s and club’s functions. With being off of campus this allows the students to break the monotony of being on campus for their functions and allows them to do more such as playing pool, darts, and bowling when otherwise limited to just holding the meeting.

MARKETING OBJECTIVES

Our marketing plan is based on the three key objectives listed below.

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1. In our first year because of the strict competition between bars in Oshkosh we would like to accomplish 10% market share, in the second year, 20% and in the third year 30%.

2. Our second objective is to have a bowling alley gain 40% market share in the first year, 55% in the second year, and 60% in the third year.

3. Lastly, we want to see an overall sales growth of 20 percent each year with the implementation of our plan.

TARGET MARKET DESCRIPTION

Our key demographic we will want to attract to the Electric Lounge are UW- Oshkosh students, ages 18-24. In order to attract these age groups we will be offering both a 21-year-old section and a section for those who are not of age so everyone will be able to enjoy our weekly live music and bowling alley. A problem that comes with going after 21-year-old students and non 21-year-old students is the risk of underage drinking in the establishment. To make sure that Electric Lounge will not serve to underage students we will have a table with 2 bouncers at the main entrance. Anyone who wants to drink will be asked to show their id and if they are over 21 they will receive a bracelet. This bracelet will allow these students to purchase alcoholic beverages. No one without a bracelet will be allowed to purchase an alcoholic beverage.

To further breakdown our target market we will engage in psychographic segmentation by focusing on those college students who have a love for live music and bowling. We will be offering some form of live music once a week. We feel that these two services are where we will be making up the revenue lost on the students who are not allowed to drink. Another type of segmentation we will be using is segmenting by benefits sought, trying to attract those college students who are looking for a different atmosphere than the ones provided by the campus bars. Also under the benefit sought segmentation we will be presenting the Electric Lounge as a place to hold banquets for the many clubs and organization at UW Oshkosh. By hosting these banquets we will get our name out there on the campus. Furthermore our prices will be based on the income of college students, making sure everyone on a college budget will be able to use our facilities.

MARKETING MIX

Product               The Electric lounge has transformed over the years. From an old bowling alley, a high school, and now a music lounge. The product that the electric lounge will offer will roughly be the same.  We will continue to provide: music, bowling, food, and drinks. The new product we want to incorporate into the mix is a young 18 – 24 year old atmosphere. Currently the building has been redone to incorporate a nicer

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look and feel. We want to add younger elements to generate – 25 year old college students to visit our lounge and bar, and those under 21 to our bowling alley. One thing we do not want to strive from is delivering an upscale feel. The electric lounge has become an eloquent hall where people can host parties and other events. We want to provide a place where a college students wants to visit and afford; but with an over-the-top experience. There are few bars around Oshkosh that cannot be labeled as a “dive-bar”. We would like to be the next high class college dance club, concert venue, and bowling alley in Oshkosh.                

The bar will continue to offer drink and beer specials to encourage college and early twenty year olds into the bar. We will push college type drinks like bombs and rail spirits to attract college students who may not have the cash to afford a high price drink menu.              

Another product we will expand on is our music and dance hall. The electric lounge will attract new upcoming bands to continue to attract this younger crowd. Unfortunately due to limited financials and a small name venue we cannot promote big name, high caliber performers at this time. Our product will need to deliver popular niche bands that target favorites in the fox valley. This can be achieved by taking Facebook polls, surveys, and bar interaction. The academic calendar is primarily during the winter months. During those months there is limited opportunity for individuals in Oshkosh to see live music. This could help us provide a unique product that Oshkosh doesn’t have.              

The Electric Lounge’s 10 alley bowling lanes will be another product we hope to expand on.  We hope to promote the bowling alley by reserving it for big events and birthdays. We also want to use it to get area 18 – 20 year olds into the electric lounge.  If we can pull in that younger section of our demographic we can start creating brand loyalty once these customers are of age to drink.

The final and premiere product we would like to offer is a free cab service. To promote college students to make the trip to our lounge and to get them home safely. This allows students who may not have vehicles or live close by to be able to safely get to our lounge. We would also try and make sure Oshkosh’s “drunk bus” would make frequent stops in the area to get students home safely.

Promotion               The electric lounge’s most difficult task is going to be breaking the habits of current college students. Effective promotion will be necessary to sway college students to step away from traditional campus or Main Street bars.

Drink Specials    Drink specials will be our highlighted promotional strategies. Advertising a

premiere lounge and club with competitive promotions such as “double bubble”, “ladies night”, and similar specials will provide an incentive for mid to early twenty year olds to stop in for a drink. Our main competition provides these same drink specials. Our goal is to match those kinds of promotions but gain an edge with a better quality experience and free cab service.

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Text messages               Our goal is to get into the minds of our customers. One way we can do this is by getting into their phones. By providing incentives such as a free shot if you subscribe to our text messaging update service, or friends on our Facebook page, will allow us to get closer to our customers. With this information we can let them know of upcoming shows, drink specials and other events or give a ways. Using these media outlets allows us to make surveys and communicate more effectively to a younger audience.

Bowling               Another unique area the Electric Lounge can promote and gain revenue is their bowling alley. To encourage 21 year olds, we can provide free bowling for X amount of drinks purchased. This will provide the traffic necessary for the Electric Lounge to become recognized by students and create brand or bar loyalty.  This may also increase traffic during the weekdays where demand in our bar may become stagnate.

Place               The Electric Lounge is located at 405 Washington Ave. Oshkosh, Wisconsin across the street from the YMCA. Although it would be best if we were located closer to campus, there is no area that can accommodate our size. Similarly we cannot purchase or split our lounge into a sister/ promotional bar because there are no additional liquor licenses available. The area has plenty of parking spaces and is only 1.5 miles from campus.

               According to the article Younger Males Drink Most, and Sometimes Too Much by Joseph Carroll, of the age group from 18-29 years old 73% of males and 66% females said yes to have an occasional drink. The only other group that beat the male figure is the 30-49 with 74%. In addition the highest percentage of individuals who drank more than 20+ drinks in seven days was the 18-29 year old age group. (Carroll) These statistics help support that our area can be profitable by pulling in the necessary traffic into the bar. With the aid of a growing popular college it provides an opportunity to draw enough people without moving from our location.

Price               Prices will be based on current competitors. The area has relatively similar prices at most of the current college style bars around Oshkosh. We would like to stay at level with competition rather than slide above or below market prices. Our goal is to increase market share and increase the amount of traffic coming into our bar and bowling alley. We want people to come to our bar because it is unlike other bars around town. Our biggest disadvantage is being so far away from our main competition. By keeping prices even with competition and providing a high quality bar and bowling alley will hopefully break the habits of the current college bar customers.

               The prices for concerts and shows will change depending on the popularity of the artist. Small local type bands will have a small cover charge or ticket prices

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between 5 – 10 dollars. Larger big name artist’s prices will vary depending on demand and size of the show. We will post tickets at our website and have opportunity to purchase tickets at the door.

Three Year Marketing objectives

               In our first year we want to reach out to our 21 – 24 year old immediately to achieve the 10 percent market share goal. To do this we will advertise around the campus area popular discount promotional pricing strategies. To achieve this we are willing provide huge drink specials on weekends. We will expand our advertising strategies to TV and radio to increase our total awareness. We will also focus on attaining a large number of individuals to join our Facebook and text messaging service. Our primary concern in our first year is building awareness and knowledge to potential customers who forget about us because we aren’t near other bars. By getting into the computers and phones allows us to build our brand image and market share.

               To increase our market share for bowling we would like to focus on league development. To focus on a young college demographic we will offer discounted bowling league costs to University of Oshkosh students. We would like to have several leagues throughout the academic school year. We would also try to contact big local area businesses during the summer to create company leagues. By creating leagues from multiple segments and different areas allows us to have yearly demand for our bowling alley. We also want to promote small birthday events for kids early in the day to see continuous use of our lanes.

               In our second and third year we would like to see continuous growth in these areas while decreasing some of our promotional price strategies. Once we have built a substantial brand and product knowledge we would like to decrease some of the large drink specials to attain more revenue.

MEASUREMENT AND CONTROL

With the improvements to the Electric Lounge and the new services we have implemented it’s our goal to improve overall sales. The overall goal for the next three years is to increase total sales by 20 percent with the newly vamped business. In order for us to actively track our business progression we must first take a hard look at our previous financial statements. We must break down are yearly food, entertainment and liquor sales over the past few years. Once our yearly sales figures are broken down we

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know the quota of sales for each service we to hope surpass at the years end. However, we intend to more actively track our sales figures by breaking down the yearly sales quarterly. This will allow us to compare sales during our busiest seasons fall and winter and see how we are matching up to those previous quarters once we reopen. This will be key after we have our re-grand opening on September 21 of 2013. We will want to actively see how our sales are matching up in the first two quarters with the newly reopened business to the previous quarters. It is our hope that sales will steadily increase after the re-grand opening. By taking an objective look at the sales we will be able to see if we are trending towards reaching our goal of increasing sales by 20 percent over the next three years.

In order for our business to ultimately increase sales by 20 percent we also need to raise the University of Oshkosh student awareness of our newly vamped business. As stated previously in our marketing plan we have numerous methods of raising awareness of are establishment. However, evaluating how effective our promotion strategy on campus worked is a bit more difficult. Our main plan is to actively email students a survey regarding our business. The surveys will be looking to gain knowledge on how many of the students are aware of the renovations to the location and new services available. The surveys will look to see how many of the students have attended the Electric Lounge since the reopening, was it their first time visiting our establishment and how frequently they visit. The surveys will try to gain knowledge of our surveyors. This will allow us to see if our business is gaining customers in both the 18 to 20 year old markets as well as the 21 and above markets. These surveys should give us some good insight on how much of the student population makes up our customer base, it will give their age, and show how frequently they attend.

As a company we also understand how surveys can sometimes be misleading. Whether the students don’t take the time to fill them out or simply not being honest with their answers they give is a risk we have to assume. To solve some of these issues we will use our marketing teams that we sent to campus to not only promote our business but engage with the student body. Actively asking if the students have ever attended the Electric Lounge, how often they attend and what sort of things they did or didn’t enjoy. The teams will be looking to gain the campus vibe and opinion of the electric lounge to help gauge were we are at in terms of popularity with the campus community.

Implementation Schedule

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Spring Semester 2013:-Gain more awareness on UW- Oshkosh campus. Have flyers hung on campus advertising upcoming bar improvements and new transportation service-Update already running Facebook page-Dramatically improve the website-Email current students about

September 1, 2013:-Implement new transportation service-Implement new age designated zones-Continuous training and development classes for staff on new services and ambiance-Rehang flyers on campus and re-email students in regards to updates

Spring Semester 2014:-Check our financial statements to see how new ambiance, services, and other upgrades have effected business profitability-Make tweaks or changes to current operations to steadily improve service and customer loyalty -Reevaluate our key objects and

Budget

Since the Electric Lounge is already an existing business, we did not have to budget for any startup costs. The expenses you will see are based on continuous business expenses of running the lounge. Our revenues will come from multiple areas; bowling, food, drinks, and events. Our costs come from your basics; rent, utilities,

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Summer 2013-Resend emails to current UW-Oshkosh students-Send marketing teams to inform Oshkosh public about new upcoming improvements and transportation services-Start and complete location improvements-Transportation services negotiated with taxi companies and public bus systems

September 21, 2013-Grand re-opening-Implement new student friendly prices-Inform patrons who attend about new transportation service

Spring Semester 2013:-Gain more awareness on UW- Oshkosh campus. Have flyers hung on campus advertising upcoming bar improvements and new transportation service-Update already running Facebook page-Dramatically improve the website-Email current students about

September 1, 2013:-Implement new transportation service-Implement new age designated zones-Continuous training and development classes for staff on new services and ambiance-Rehang flyers on campus and re-email students in regards to updates

Spring Semester 2014:-Check our financial statements to see how new ambiance, services, and other upgrades have effected business profitability-Make tweaks or changes to current operations to steadily improve service and customer loyalty -Reevaluate our key objects and

maintenance, payroll. The expenses will also include marketing since our goal is to increase awareness to UW- Oshkosh students.

2013 2014 2015Revenue

bowling 53,703.70$ 64,444.44$ 77,333.33$ beverage 409,552.00$ 491,462.40$ 589,754.88$ food 168,532.00$ 188,500.00$ 226,200.00$ events

ballroom 24,000.00$ 30,000.00$ 40,000.00$ gala 9,000.00$ 11,250.00$ 15,000.00$

Total revenue 664,787.70$ 785,656.84$ 948,288.21$ Cost of Goods

cost of food 50,559.60$ 56,550.00$ 67,860.00$ cost of beverage 86,005.92$ 98,292.48$ 117,950.98$

Gross Margin 528,222.18$ 630,814.36$ 762,477.24$ Expenses

Rent 6,000.00$ 6,000.00$ 6,000.00$ utilities 1,500.00$ 1,500.00$ 1,500.00$ maint. & repairs 1,000.00$ 1,000.00$ 1,000.00$ insurance 500.00$ 500.00$ 500.00$ marketing 1,000.00$ 1,000.00$ 1,000.00$ salaries & wages 221,496.00$ 261,767.50$ 315,953.51$ other expenses 66,478.77$ 78,565.68$ 94,828.82$

total expenses 297,974.77$ 350,333.19$ 420,782.33$ Earnings before Taxes 230,247.41$ 280,481.18$ 341,694.90$

For Year Ended, December 31, 20XXBudgeted Income Statement

Electric Lounge & Lanes

Revenues

One of our main sources of revenue comes from bowling. A goal of ours is to max out our bowling facilities within 5 years. Based on the 10 lane bowling alley, the hours of operation, and the average length of a bowling game, I came up with the projected revenue of $111,360 five years from now. This assumes that the price per

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game stays at the current price of $2.00. If you decrease the $111,360 by 20 percent each year, you’ll derive at the projected revenues for 2013, 2014, and 2015.

Another source of revenue comes from food and beverage sales. These two revenues were projected based on the number of customers expected in the lounge each day. For 2013, we project a slower start. Mondays through Wednesdays we expect roughly 50 people per night, on Thursdays 150 people per night, and Fridays and Saturdays we project 200 people per night. I don’t expect that every single customer will order food, so I estimated a certain percentage of customers that will order food each night. Mondays through Wednesdays I used 100 percent of the customers, Thursdays would be 50 percent of the customers, and Friday/Saturdays we could expect half of our customers to order food. With an average price of $7 per dish, it is projected that food revenues will be $168,532.00. This was then increased by 20 percent for each consecutive year since one of our goals is to increase sales by 20 percent. For beverage sales I used those same numbers of customers and assumed 100 percent would order a drink (alcoholic or non-alcoholic). We can assume that on average each customer will order 2.5 drinks at a cost of $4.50 per drink. This results in the projected beverage sales of $409,552.00 in 2013. Once again, this number was increased by 20 percent each consecutive year.

The last source of revenue comes from events. The ballroom holds 500 guests and costs roughly $2,000 per event. Our goal is to have one big even per month, for annual revenue of $24,000 from the ballroom events. The gala holds 100 guests, and we’ll assume one event in that room per month as well which results in revenue of $9,000 from gala events. These revenues were also increased by 20 percent for the following years.

Costs and Expenses

Based on research, it is said that cost of food is roughly 30 percent of revenues. The cost of food ranges from 29 to 32 percent, so I stuck with 30 percent as an easy rounded number. Beverage costs are roughly 21 percent of revenues. This is the combined cost of wine, liquor, bottles and draft beer, and soft drinks. From year to year these will be variable based on revenues.

I assumed the rest of the expenses to be fixed since these categories usually are fixed or only change in the slightest. Since this is just a pro-forma income statement these numbers are based on average expenses of bars and lounges. Salaries and wages are our biggest expenses, below is a table that was constructed based on wages, hours worked per week, and the number of employees.

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Payroll Wage Yearly Salary/Wage Head Count Total Salaries & WagesSalariedManagers (Associate, Leage, Event, Kitchen, Bar) 30,000.00$ 3 90,000.00$ Chef 25,000.00$ 1 25,000.00$ Hourly ( all part time- 20 hrs/week)Part time chefs 7.25$ 7,540.00$ 2 15,080.00$ waiters 4.30$ 4,472.00$ 3 13,416.00$ bartenders 4.30$ 4,472.00$ 5 22,360.00$ dishwashing 7.25$ 7,540.00$ 2 15,080.00$ bowling alley staff 7.25$ 7,540.00$ 4 30,160.00$ DJ 10.00$ 10,400.00$ 1 10,400.00$

Works Cited

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Akers, Helen. "Operating Cost Benchmarks for a Bar." Chron. Hearst Newspapers, n.d. Web. 27 Nov. 2012. <http://smallbusiness.chron.com/operating-cost-benchmarks-bar-33433.html>.

Carroll, Joseph. "Younger Males Drink Most, and Sometimes Too Much." Gallup 22 July 2003. Web. 28 Nov. 2012. <http://www.gallup.com/poll/8908/younger-males-drink-most-sometimes-too much.aspx>.

"How to Price Alcoholic Beverages in Your Bar." Food Service Warehouse. N.p., n.d. Web. 27 Nov. 2012. <http://www.foodservicewarehouse.com/education/how-to-price-alcoholic-beverages-in-your-bar-or-restaurant/c27452.aspx>.

Shapouri, Beth. "Baro-nomics." New York Mag. New York Media LLC, 17 May 2009. Web. 27 Nov. 2012. <http://nymag.com/nightlife/wheretodrink/2009/costs/>.

Taffer, Jon. "Managing The Big Three." Nightclub & Bar. N.p., 5 Aug. 2009. Web. 27 Nov. 2012. <http://www.nightclub.com/bar-management/best-in-bar-management/managing-big-three>.

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