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Zack Augstell, Peter Valone, Staci Hillman, Kirsten Smith, Val McQuade,

Gabby Baldasare

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Request for Funding:

November 12, 2014Zachary J. AugstellThe Brew Stop1900 Military RoadNiagara Falls, NY, 14305

Thank you for your consideration to support our new venture, The Brew Stop.

The concept for The Brew Stop was created by one of our founding members, Ms. Hillman, as she realized a potential market based on trends she witnessed. Ms. Hillman has many years of experience working for multiple different retailers within the Niagara Falls Fashion Outlet Mall, and saw an opportunity before her eyes. With additions and expansions being implemented in the Fashion Outlet Mall, Ms. Hillman realized that this concept could actually be implemented into a successful business, with the proper strategies and funding.

The Brew Stop is a kiosk-type vendor that will be set in a strategic location within the Fashion Outlet Mall. This business will also have a storefront location, as well as the kiosk. The objective for both vendors is to serve alcoholic beverages to shoppers, as they are waiting for others to complete their shopping. There will be a variety of beverages served (from mainstream industry leaders, to craft beers from local breweries). The mission of the company is to provide mall-goers with an opportunity to sample drinks and relax, in what can be a stressful environment. The long-term strategy of The Brew Stop is to eventually expand and set up multiple locations first within the Buffalo-Niagara area, and then in the north-eastern region of the United States.

After weeks of heavy marketing research and discussions of strategy, the founders of The Brew Stop have realized that in order to receive the highest potential (in terms of margins and profits), additional capital would be needed to begin the start-up. Although each member has an equal equity within the company, by contributing a total of $30,000 USD, this amount is not sufficient enough to start the business, which would restrict long-term growth.

We are requesting an investment of $30,000 which is to be paid off at a rate of 6%. This capital investment would be dedicated in the brand building process, as well as the initial materials needed. This will cover the expenses for advertising and other promotions, and the purchasing of inventory. After a year in business, The Brew Stop is projected to being self-sustainable in generating profits, and can begin to repay the loan and interest accrued.

If I can provide additional information to encourage consideration of our request, please contact me at zaugstell@mail.niagara.edu. I would also be happy to meet with your committee to present this proposal in person. Thank you once again for your time, and for your consideration.

Sincerely,Zack J. AugstellOperations Executive

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Executive Summary:

Brew Stop is at the forefront of ending boredom and frustration for men while they are

“forced” to accompany their wives or girlfriends at the mall. We provide men with an escape

during their mall visit which causes stress tensions to be reduced, fulfilling every man’s motto,

“Happy wife, happy life”. Men will be able to stop at our in-store location or kiosk in the mall,

and sample craft beers while their wives/girlfriends happily shop away. Televisions equipped

with all sports packages will not let men miss any part of the action, especially on Sunday’s.

Sample size offerings of local craft beers will be available for purchase along with a variety of

other alcoholic beverages, allowing men to spend 10 to 20 minutes in solace watching sports.

With recliners equivalent to what every man would want in a man cave, outlets for phone

charging, flat screen TV’s for sports viewing and several choices of craft beers to sample, Brew

Stop becomes the reason any man would willingly say “Yes” for going to the mall.

Business Description

The business description contains both an overview of The Brew Stop and an insight into

the company’s future plans. The Brew Stop is essentially a “man cave” for the average guy that

becomes exhausted with the idea of shopping after a short 26-minute period of time. The overall

“feel” of The Brew Stop is a rugged, manly environment filled with couches, lounge chairs, a bar

area, beer, and televisions displaying every possible football, hockey, or basketball game airing

on ESPN. The Brew Stop allows men an escape from the outside mall world. The conveniently

placed kiosk and in-store front locations allow for options on how much time one would like to

spend at The Brew Stop. If one’s significant other has just stepped into the Michael Kors store

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for a few minutes to take a gander at a few bags, perhaps the conveniently located kiosk outside

of Michael Kors would be an easy, quick option for the individual to stop and have a quick beer

and check the score of the game before his partner is finished looking around the store. If one’s

significant other plans to be shopping for a while, the in-store front may be a better option, as a

longer period of time could be spent there sitting down, having a beer, and charging the cell

phone, all while catching the big game on television.

As far as future plans for The Brew Stop, light mood music would be a possible option.

The music would be more in the bar area than around the televisions, so as not to disturb the

games being showed. Also, the management team has considered examining the success of the

kiosk and in-store front locations to decide whether or not to expand into the Galleria mall and

other larger malls in the area.

Management Structure:

Brew Stop will have a Limited Liability Partnership with the owners being taxed only

once on his or her personal return. Liability will be limited with each partner in the ownership

management structure.

Brew Stop will have a General Manager, two Chief Financial Officers, two Marketing

Managers, and one Human Resources Manager.

The General Managers responsibilities include:

Establishes restaurant business plan by surveying restaurant demand; conferring with people in the community; identifying and evaluating competitors; preparing financial, marketing, and sales projections, analyses, and estimates.

Meets restaurant financial objectives by developing financing; establishing banking relationships; preparing strategic and annual forecasts and budgets; analyzing variances;

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initiating corrective actions; establishing and monitoring financial controls; developing and implementing strategies to increase average meal checks.

Attracts patrons by developing and implementing marketing, advertising, public and community relations programs; evaluating program results; identifying and tracking changing demands.

Controls purchases and inventory by meeting with account manager; negotiating prices and contracts; developing preferred supplier lists; reviewing and evaluating usage reports; analyzing variances; taking corrective actions.

Maintains operations by preparing policies and standard operating procedures; implementing production, productivity, quality, and patron-service standards; determining and implementing system improvements.

Maintains patron satisfaction by monitoring, evaluating, and auditing food, beverage, and service offerings; initiating improvements; building relationships with preferred patrons.

Accomplishes restaurant and bar human resource objectives by recruiting, selecting, orienting, training, assigning, scheduling, coaching, counseling, and disciplining management staff; communicating job expectations; planning, monitoring, appraising, and reviewing job contributions; planning and reviewing compensation actions; enforcing policies and procedures.

Maintains safe, secure, and healthy facility environment by establishing, following, and enforcing sanitation standards and procedures; complying with health and legal regulations; maintaining security systems.

Maintains professional and technical knowledge by tracking emerging trends in the restaurant industry; attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.

Accomplishes company goals by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.

(http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/restaurant-general-manager-job-description-sample.aspx)

Chief Financial Officers responsibilities include:

Accomplishes finance human resource strategies by determining accountabilities; communicating and enforcing values, policies, and procedures; implementing recruitment, selection, orientation, training, coaching, counseling, disciplinary, and communication programs; planning, monitoring, appraising, and reviewing job contributions; planning and reviewing compensation strategies.

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Develops finance organizational strategies by contributing financial and accounting information, analysis, and recommendations to strategic thinking and direction; establishing functional objectives in line with organizational objectives.

Establishes finance operational strategies by evaluating trends; establishing critical measurements; determining production, productivity, quality, and customer-service strategies; designing systems; accumulating resources; resolving problems; implementing change.

Develops organization prospects by studying economic trends and revenue opportunities; projecting acquisition and expansion prospects; analyzing organization operations; identifying opportunities for improvement, cost reduction, and systems enhancement; accumulating capital to fund expansion.

Develops financial strategies by forecasting capital, facilities, and staff requirements; identifying monetary resources; developing action plans.

Monitors financial performance by measuring and analyzing results; initiating corrective actions; minimizing the impact of variances.

Maximizes return on invested funds by identifying investment opportunities; maintaining relationships with the investment community.

Reports financial status by developing forecasts; reporting results; analyzing variances; developing improvements.

Updates job knowledge by remaining aware of new regulations; participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.

Accomplishes finance and organization mission by completing related results as needed.

(http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/chief-financial-officer-job-description-sample.aspx)

Marketing/Sales Managers responsibilities include:

Accomplishes marketing and sales human resource objectives by recruiting, selecting, orienting, training, assigning, scheduling, coaching, counseling, and disciplining employees; communicating job expectations; planning, monitoring, appraising, and reviewing job contributions; planning and reviewing compensation actions; enforcing policies and procedures.

Achieves marketing and sales operational objectives by contributing marketing and sales information and recommendations to strategic plans and reviews; preparing and completing action plans; implementing production, productivity, quality, and customer-

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service standards; resolving problems; completing audits; identifying trends; determining system improvements; implementing change.

Meets marketing and sales financial objectives by forecasting requirements; preparing an annual budget; scheduling expenditures; analyzing variances; initiating corrective actions.

Determines annual and gross-profit plans by forecasting and developing annual sales quotas for regions; projecting expected sales volume and profit for existing and new products; analyzing trends and results; establishing pricing strategies; recommending selling prices; monitoring costs, competition, supply, and demand.

Accomplishes marketing and sales objectives by planning, developing, implementing, and evaluating advertising, merchandising, and trade promotion programs; developing field sales action plans.

Identifies marketing opportunities by identifying consumer requirements; defining market, competitor's share, and competitor's strengths and weaknesses; forecasting projected business; establishing targeted market share.

Improves product marketability and profitability by researching, identifying, and capitalizing on market opportunities; improving product packaging; coordinating new product development.

Sustains rapport with key accounts by making periodic visits; exploring specific needs; anticipating new opportunities.

Provides information by collecting, analyzing, and summarizing data and trends.

Protects organization's value by keeping information confidential.

Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.

Accomplishes marketing and organization mission by completing related results as needed.

(http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/marketing-and-sales-manager-job-description-sample.aspx)

Human Resources Manager’s responsibilities will include:

Maintains the work structure by updating job requirements and job descriptions for all positions.

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Maintains organization staff by establishing a recruiting, testing, and interviewing program; counseling managers on candidate selection; conducting and analyzing exit interviews; recommending changes.

Prepares employees for assignments by establishing and conducting orientation and training programs.

Maintains a pay plan by conducting periodic pay surveys; scheduling and conducting job evaluations; preparing pay budgets; monitoring and scheduling individual pay actions; recommending, planning, and implementing pay structure revisions.

Ensures planning, monitoring, and appraisal of employee work results by training managers to coach and discipline employees; scheduling management conferences with employees; hearing and resolving employee grievances; counseling employees and supervisors.

Maintains employee benefits programs and informs employees of benefits by studying and assessing benefit needs and trends; recommending benefit programs to management; directing the processing of benefit claims; obtaining and evaluating benefit contract bids; awarding benefit contracts; designing and conducting educational programs on benefit programs.

Ensures legal compliance by monitoring and implementing applicable human resource federal and state requirements; conducting investigations; maintaining records; representing the organization at hearings.

Maintains management guidelines by preparing, updating, and recommending human resource policies and procedures.

Maintains historical human resource records by designing a filing and retrieval system; keeping past and current records.

Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.

Completes human resource operational requirements by scheduling and assigning employees; following up on work results.

Maintains human resource staff by recruiting, selecting, orienting, and training employees.

Maintains human resource staff job results by counseling and disciplining employees; planning, monitoring, and appraising job results.

(http://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/job-descriptions/human-resources-manager-job-description-sample.aspx)

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Projections and Financial Statements

*Please refer to the appendix, which show the projected costs and profits for the period starting on April 1, 2015 through June 1, 2014.

Costs:

In order to get the business up and running, there needs to be items purchased that can

help with sales both on a large and short scale basis.

The first expense category is pertaining to items that are purchased just one initial time,

with other expenses relating to these items (such as maintenance and improvements) only

happening on occasion. These costs will not fluctuate and will not require additional payments.

The first expense is for the purchasing of televisions. The items cost approximately $300

per unit (for a total of 8 units purchased; 4 in each location). The benefit of having these items is

to draw in the target market to the location, and will give reason for the customer to stay and

purchase the products offered.

The next item is the perimeter lining. This item is to ‘rope off’ the area in which The

Brew Stop has control over, which is a legal requirement due to alcohol legislation. By using this

method, it will give opportunity for employees to make sure the company is complying to the

law, which in the long-term can prevent any legal issues or fees from arising. Also, this item

does represent that the business is a legitimate entity, and shows exclusivity by narrowing the

area down.

Our next cost is related to the furniture located within the designated area. We have a

large budget of $4,000 for these items, in order to give an atmosphere that is consistent with the

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other themes of the business. By drawing shoppers to a ‘lounge’ type area, that is comfortable

from the chaos of normal shopping, this can increase potential customers and sales.

The next expense is related to a popcorn machines. Since the business is serving drinks

exclusively and there is not a kitchen that can serve food, the popcorn machine will serve the

customers and potential customers with a snack while in the confines of the kiosk and in-store

location. Although this cost does not generate profit, it is a relatively small expense that can lure

people to the area, which can increase sales and the brand image.

Next there is an expense related to charging station supplies. These supplies include

outlets and chargers for the many popular mobile devices currently on the market (iPhone

models, Galaxy models, etc.). Since electricity is inclusive in the monthly mall fee, we thought it

would be beneficial to use that to the companies advantage, and provide shoppers with an area to

recharge their devices, before continuing their shopping. This is another way to draw in

customers, and as they charge their device, they are not involved in the shopping process, which

gives them an opportunity to relax and order something from the company.

The next expense is the most vital fixed cost to the business and that is the physical bars

for both the kiosk and in store location. We have allocated $10,000 towards this, as for it is a

physical representation of the company, and needs to function as the platform in serving drinks

to customers. The bar also is to restrict customers from having access to the inventory, which can

help reduce spillage costs. Without the bar, the company cannot function.

The last initial expense is the supplies needed to operate the bar. We have allocated

$2,000 for all the materials needed such as floor mats, cups, coasters, and any other items needed

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in order to fulfill orders of the customer. These costs are directly correlated with serving drinks

in the purchasing process.

The next group of expenses are those that are paid incrementally (in months/years) for as

long as the company is in business.

The first main cost is the Monthly Mall Fee which allows the business to rent space and

use the services of the mall in order to sell the products. This fee is $5,500, and it includes

electricity and water usage for the kiosk location, and the physical storefront location. Although

this amount is one of the larger costs for the company, it is vital for the businesses success, as for

the location offers the customer base than could not be reached elsewhere.

The next month cost is from the TV service (DIRECTV), for $29.99 a month. Although

without this service, the company can still function as a beverage provider, this service (along

with the televisions that were purchased), can contribute to the amount of mall-goers being

directed in the area of the business. The package for the TV service is the sports package which

gives the business the opportunity to show national sports games (such as NFL, NHL, MLB and

NBA), which can attract the target market to the business.

Another expense that will be on a monthly basis is the purchasing of the bulk popcorn

(approx., $150/month) for each of the two the machines to produce. Again, this expense is a tool

to draw in potential customer and build the brand.

Next is a legal fee correlated to the New York State Beer and Wine license. The license is

$480 yearly, and there is a $20 filing fee along with that (per section RW341). So the company

would break this fee into monthly payments of $41.67, to spread the expenses throughout the

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year. This fee cannot be avoided and is needed in order for the company to comply with

legislation.

The last monthly fee we have allocated for is Marketing and Promotions. Since the

founders of the company have a background in marketing, and have a great understanding of the

benefits, we have decided to emphasize that aspect of the company by providing a spending

distribution of $2,000 per month to be used on advertising, and other ways to build the brand and

customer awareness.

The last set of expenses that are variable based, yet we have projected the variable which

impacts the expense.

The first aspect is Administration costs related to transportation of goods, and other upper

level management expenses. This aspect is difficult to project without being involved in the daily

operations of the company yet, but we decided to allocate a safe $2,000 a month, in order to be

prepared for unexpected expenses arising. After the business is fully operational, this figure can

be adjusted to an appropriate (and accurate) amount.

The next fee is the percentage of items sold for the Mall. This 5% is a small price to pay

as for the margin on items sold is high. Again, this cost is unavoidable, and is put into the

consideration in the pricing of the items sold.

The next expense would be payroll, which would for the 8 employees the business would

have. Many of them would have responsibilities and duties in both the kiosk and storefront

location, where 2 employees would work the 8 hour daily shifts at the kiosk (Mon-Sat and 6 hour

on Sunday), and then 3 employees would work the same hours at the Storefront location.

Between the 8 employees, there would be a total of 225 hours worked to pay the employees at

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minimum wage (which is $7.25 in New York State). This amount totals to $1,631.25 a week or

$6,525 a month.

Lastly, the expense due to the purchasing of the actual products sold (beer), is determined

on a keg basis. Please refer to the next section which shows the projected amount needed to

determine both expenses and profits.

Sales:

Once the costs are determined, sales must take place in order to be profitable. And since

(initially), the only source of revenue is from beverages sold, then it is fair to say that volume of

items drives the profitability of the company.

With our projections, we expect to have 300 buying customers per day for Monday

through Saturday (1pm-9pm), and 150 customers for Sundays (1pm-6pm). And these customers

are projected to purchase 500 items per day (Mon-Sat and 250 on Sun), or 3,250 items per week.

If the cost of a 15.5 gallon keg is approximately $40 (after negotiations and supplier relationship

deals), and there can be an amount of 165 total 12oz cups that can be sold per keg, then the cost

associated with a per keg basis is approximately $0.25 per unit sold.

If we sell the items in both locations for an average of $2.50, then there is a $2.25 profit

on each item sold (before including other expenses).

And assuming the projected sales of 3,250 items a week, then the direct cost would be

$812.50 a week, or $3,250 a month; yet the actual profit would be $29,250 a month (before other

expenses applied). The actual revenue would be $32,500.

Profit:

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Since the revenue on a monthly basis is projected to be $32,500, and the total costs for

the first projected month is $42,191.66, the company would have a loss of $9,691.66. Yet, the

next month would endure a profit of $10,228.34 and should continue to enjoy profitability

moving forward. In order to break even, there would need to be at least 8,909 items sold within a

month, which comes out to approximately 2,227 items sold weekly, which is 318 items sold per

day. With the two locations, and the amount of foot traffic that will be going by these locations,

that figure is something very attainable.

SWOT Analysis:

When completing our business plan. We decided to look and create a SWOT analysis. By

creating this we can look at internal strengths of the business and weaknesses. We can also look

at the external opportunities and threats. There is plenty of topics in each category and this leads

our business to hopefully create a large customer base.

As part of our SWOT analysis we decided to look at the strengths of the business. First,

The Brew Stop provides a place of relaxation for men or anyone over the age of 21 to lounge

while their significant other is shopping. Not only does our business serve alcoholic drinks, but

other non-alcoholic beverages as well. Secondly, The Brew Stop provides an easy location for

customers. We are providing not only a kiosk in the mall, but also a storefront location. It is easy

for customers to see and either stop-in quickly for a drink and relaxation, or they can choose to

go in the storefront. Other internal strengths for the business include perks for the customers.

In the kiosk in storefront business, there will be TVs, charging stations, sofas, a bar area

and free perks. Since our target market is men between the ages of 21 and 60 who are sports

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fans, we decided to incorporate televisions in the lounge area. Having this, the customers can

watch sports competitions when they are in the mall. The charging stations are very useful

because many people who are shopping might carry chargers with them and by having chargers

at a station will save room in their bags. The sofas provide a relaxation area that they can lounge

around in. The bar area is available and provides deals of alcoholic and non-alcoholic drinks.

People who enter this area can watch television and hang out, instead of pure boredom. By

attracting males 21 and older, it will hopefully lure the younger generation to stop at The Brew

Stop when they are older.

Another part of the SWOT analysis is defining weaknesses in the internal part of the

business. One weakness of the business is that since the area is serving alcohol, only people 21

and older can enter. The customers do not have much of a sense of privacy while drinking. Most

likely the lounges are occupied with strangers so there is not a sense of intimacy while being in

the lounge area. Other shoppers also are able to walk by the kiosk and the storefront and watch

the people at the bar and the lounge area.

One huge weakness at The Brew Stop is there is a huge liability because there are people

that are willing to drink but they must drive home. This will certainly turn away some customers

because they will not drink and drive. If someone were to get behind the wheel after drinking at

The Brew Stop, it could be troublesome for the business.

The third part of the SWOT analysis is analyzing external opportunities in the business.

The Brew Stop provides a local connection with vendors and creates promotional relationships.

We support local breweries and supply beer-tasting events. By creating this local connection it

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draws customers in and advertises not only for our business but also local vendors in the area.

Promoting craft beers will give opportunity for brands to grow in the market.

We have a limited partnership with 1 manager and 6 front-house bartenders. This could

be an opportunity to grow depending on the sales and profit of the first kiosk and storefront Brew

Stop. If the business does well this could lead to the opening of other stores and kiosks in

multiple malls and this would lead to more jobs and locations. There are many opportunities that

could become of this business.

The last part of the SWOT analysis is threats. There are plenty of threats that could

potentially hurt the business of The Brew Stop. The threat of local bars is important to discuss

within the SWOT analysis. Men may decide to drop their significant others off at the mall and go

to a local bar instead of coming into the mall. Other food kiosks in the mall may pose as threats

to the Brew Stop because they are also serving non-alcoholic drinks and the customers can sit on

benches and chairs provided by the mall.

A huge and obvious threat to our business is the food court at the mall. Even though

many of the food places in the food court do not serve alcoholic beverages they still are able to

draw customers in by their brand name and perks. Places like McDonald’s, Wendy’s, Subway,

and Starbucks provide customers with loyalty and quality. These are essential to having a

growing business and keeping customers interested in visiting your business.

All in all, creating a SWOT analysis can look at internal strengths of the business and

weaknesses. We can also look at the external opportunities and threats. Looking at these things

we can see opportunities where our company needs to grow and weaknesses can be turned into

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strengths. We can also think of diverse opportunities for the business to grow and act upon new

threats to the market.

Distinctive Brand:

What we have learned through our research, both primary and secondary, are that we

need to distinguish ourselves as a company, and offer something that others don’t. And on the

surface, we provide drinks to people which is not the most original idea, but we want to offer

services that others don’t. Our company is established to be a convenient one stop shop for mall

goers to ‘take the edge off’ within the chaotic atmosphere which is the mall.

The Convenience Factor:

When shoppers go through the normal hectic process of shopping and would like to

purchase a beverage, there aren’t many options that are quick and easy. They could leave the

mall and go to a restaurant or store that sells beverages, but this usually leads people to go out of

their way and interrupts their normal shopping process. That is until our business is set up. We

would have a location that would be conveniently located within close proximity to other high

traffic stores, giving people the ability to stop and get a quick drink.

We would have also have lounge area that would be an attribute that would be a staple in

the image of the company. For the in store location, there is a nice lounge atmosphere that gives

shoppers an opportunity to relax during a hectic day of shopping.

Another attribute that would be linked to our company is the perks such as the free

charging stations. These little perks incentivize people to be drawn to our location, and they will

have a sense of obligation to purchasing our products due to the reciprocation persuasion

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concept. Another perk is free popcorn from the popcorn machine. This is another idea where we

give potential customers a free snack, and by doing so, it helps the images of the company look

to being generous, and draws people in and again, persuades them to have an obligation to

purchase a drink.

The Local Connection:

A big aspect of the business is to have an emphasis on being a local company that serves

drinks from local breweries. We are a Buffalo based company, and we want to capture the

neighborly feel of this community. Also, by having a great relationship with these breweries, it

can lead to mutual benefits for our company and for theirs. We can promote their products for

them, and can give merchandise and drink lists to customers who try and like the breweries

products. This can lead to an increase in sales both directly and indirectly for this vendor. And

ideally, this would lead us to having the ability to benefit from a current trend, selling the

growler jugs to end user, that want specific drinks from these local breweries.

Our Brand is what we are selling to the potential customers more than the actual

products. By being unique and offering services and value to the customers, is the way we first

get people to walk in the door, and by being a convenient one stop shop for people to buy drinks,

is how we will be successful with customer retention. Our target market will be drawn to our

business with the atmosphere, perks, attitude and brand of our company.

Consumer Profile:

The average man gets bored of shopping after just 26 minutes. It takes females 2 hours

before they become bored. A conducted study showed that 25% of men admitted they go home

with out there partner because of boredom while shopping. Females also tend to spend 10

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minutes more per store than men. One of the circumstances that lead men to boredom while

shopping is a sports game on television.

Our targeted market is men ages 21-60 who are shopping in the mall with a female. The

biggest percentage shopping center consumers are middle to upper middle class. Our consumers

will have occupations of the middle to upper middle class and make an average of 30-80,000

dollars a year. Our consumer will enjoy watching televised sports games and news. Our target

market is the biggest consumer of beer, and consumes the beverage while watching sports events

on TV.

The Brew Stop will be a lounge for men located in the Fashion Outlet Mall. Often men

are left waiting in the hall way on crowded benches or looking for a place to sit while they wait

for their party to finish in women’s stores. The Brew Stop will be will be located on Fashion

Avenue between Michael Kors and Coach, the two biggest women’s retailers in the shopping

center. While men are waiting for their party to finish shopping, they can stop into The Brew

Stop and enjoy a cold a beer and catch up on the scores of the sports game.

The average time spent in The Brew Stop will be anywhere from 10 to 30 minutes since

we know women generally take 10 minutes longer in a store than men. The brew stop will have 2

separate seating areas. One will be a bar area where men can come in and enjoy a few minutes to

themselves and catch up on the scores of the games, but still be out in enough time so they do not

keep anyone waiting on them. The other will be a seated lounge with plush leather couches

where men can spend a few extra minutes to relax and enjoy the televised sporting events. The

lounge and bar will both offer phone charging portals and refreshments.

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The main source of income is going to alcohol purchases, alcohol will be served in 12 oz.

portions and in a curved glass. Studies show that when beer is served in a curved glass it takes an

average of 7 minutes consume. Since we expect our customer to spend as little as 10 minutes in

our store, this will help maximize the experience and profits. A customer spending a half hour

may consume up to three beers.

The Brew Stop will feature local brewery products, which have increased in popularity

by 15 percent. We will also serve Anheuser-Busch products because they dominate the market

place. It is important that we serve products that our target market likes or we will not be able to

capture them. Bud Light will be our most popular seller as it holds almost 20% of the market.

The brew stop will have several televisions. Research shows the ESPN is the top

primetime network watched by our target market. ESPN will be the featured channel. Men leave

the mall or become bored because they would rather be watching the televised sport event. The

Brew Stop will have the current games for the top watched sports by men on in the lounge. The

top watched sports are Football, Baseball, Basketball, Hockey, and Golf. With the variety of

sports that will be televised in The Brew Stop, there is a year-long schedule. We will have

something for our customer to watch at all times.

Marketing Plan:

Target Markets: Primary and Secondary

The target market for this campaign will be men between the ages of 21 and 60. This is a

wider age gap because it includes a large number of men who like sports and having a few beers

while they watch the game. Our company, The Brew Stop, will be marketed towards men at the

mall who want to get away from the crowds and the shopping.

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Current Customer Base

Currently, men at the mall who do not want to be shopping usually end up waiting on a

bench outside as the women they’re with shop around from store to store. The Niagara Falls

outlets just added one or two charging stations but they fill up quickly and customers must bring

their own plugs. We aim to offer men an escape from the mayhem (actual mayhem on the

weekends). The Brew Stop will give customers a chance to get out of the craziness to sit down,

relax, and have a beer (or two!). There will be men at the mall who do not want to be shopping.

This is especially true for our location at the Niagara Falls Fashion Outlets because many

customers come for a few days with the entire family. Let the women get their shopping done in

peace while the men hop on over to the mall’s very own man cave.

Marketing Materials / Website / How they are Utilized / Coordinated & Formal Advertising:

Current and Future

To market The Brew Stop we will use several materials: an advertising kiosk in the mall,

a feature page on the mall’s website, our own website for customers to visit, and beer tasting

events hosted by local breweries in the Greater Buffalo area. For all advertisements we will

invest in good photography to make the bar and lounge look inviting.

The advertising kiosk is a “free” kiosk space in the mall located in a separate wing than

the storefront to draw more customers in. We can call the space free because it is included with

the price of our lease. We want to decorate the stand to represent our store and our brand – we

want to catch the attention of men who would be interested in stopping in for a beer and/or to

catch some of the game. On the main level of the kiosk we will construct a tall pyramid of empty

beer cans. We will put signs that match the bar’s logo so people walking by will recognize The

Brew Stop when they pass the storefront. During the busy holiday season we can replace the beer

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can pyramid with red cans and make the shape more like a Christmas tree complete with a large

red bow. Some holiday weekends we can even leave out paper coupons for $0.50 - $1.00 off of a

beer or a buy one, try one offer for customers to try seasonal samples for free.

The feature page on the mall’s website will appear as a picture link that scrolls by out of

4-5 different rolling advertisements. The ad will run for approximately 6 weeks starting the

weekend before the grand opening. On the mall’s home page we will use a professional

photograph of The Brew Stop’s bar and lounge area that portrays the bar as a relaxing escape

from the mall. When customers click the image they will be taken to the feature article on a

separate webpage. The feature article will provide basic information about the bar (i.e., location,

offerings, hours, and upcoming events). There will be links within the article that when clicked,

will take web browsers to The Brew Stop’s home page.

The Brew Stop website will have more photographs and a digital menu that is updated to

include any seasonal beers available. The website will have more information about the kinds of

beer offered – mostly on the specialty beers. There will also be a spotlight on the local breweries

that will have their beer sold at The Brew Stop. This bar will bring the beer community together

and be a must stop shop for beer lovers.

On the website, we will include a calendar of events that will take place on select

weekends at The Brew Stop. These events will be hosted by local breweries or marketing teams

of other beer brands that want to hold a tasting event. These events will be great exposure for the

companies hosting and will give our bar an edge that most other bars in the area will not have.

When a host company comes in for a tasting event, The Brew Stop will receive 35% of all sales

that the host collects during the event.

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Public Relation Strategies

Throughout our marketing plan we want to make sure we keep the benefits relevant to

those men out shopping. We definitely want to have the feature story on the mall website

because it pertains to the clientele. We also could use a review in the local paper to increase

awareness of The Brew Stop. Most traffic in the Niagara Fashion Outlets are customers from out

of town, but, a good amount of these out of town customers all come in from the same city,

Toronto. If men stop in on their trip to the mall and enjoy their time at The Brew Stop, we want

them to tell their friends who may be traveling this way as well. We want to promote reviews

and testimonials on our website and the mall’s Facebook page encouraging others to try out this

unique experience at the mall. All official articles published should be printed with one of our

professional photographs of The Brew Stop’s lounge area.

Community Involvement / Donations

The Brew Stop gets the Buffalo region involved through the beer tasting events hosted on

location. There are a lot of customers from out of town and The Brew Stop can help the local

breweries gain some exposure for their products.

Distribution Channels

The distribution channels that The Brew Stop will use to reach goals and increase

revenue are as follows: wholesaler/distributor, value added re-seller, retailer, and various

manufacturer representatives.

The wholesaler/distributor

The Brew Stop will act as the value added re-seller (VARS) for specialty beers.

“Normal” beers like Coors and Labatt Blue do not need much value added. They are inexpensive

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beers that most people have tasted before. We will act as the VARS for seasonal beers and also

for the beers served by local breweries. Our employees will need to study the kinds of beers we

will be serving and the background of the beer’s taste, alcohol content, and hops. The employees

working behind the bar will be responsible for the recommendations and sales of specialty beers;

we can give them more personal value than just a label on a menu.

The Brew Stop storefront will act as the retailer selling beer and the relaxing “man cave”

vibe. On the weekends we will have the various manufacturer representatives for seasonal beers

or from local breweries come in and host a tasting event. The representatives will encourage all

customers to at least buy a sample of their beer and explain the features of the beer and how it is

made.

Current/Potential Referral Sources

The Brew Stop will get referrals from other retail store associates. When associates see a

man following a woman around the mall they can suggest a spot for them to take a break and

enjoy a couple of drinks. This will help us attain more customers who might not know that The

Brew Stop is in the mall.

Price Comparison with Key Competitors

The Brew Stop does not have any direct competition in the mall that is offering the same

product. Just outside the mall there is an Applebee’s and soon to be Longhorn Steakhouse which

both have a bar and serve alcoholic beverages. Our prices will be comparable to these other

competitors outside of the mall. We can charge a little more for our drinks because we offer a

better lounge area for customers and it is more convenient for those who are shopping with

others. The fact that we are a fast and easy bar right in the mall sets us apart from our

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competition. We will also be offering special tasting events featuring local breweries. This is

another feature that the nearby competition will not have.

Sales Promotions

Our sales promotions will have a great impact on our business. We will offer coupons

that shoppers can pick up at our promotional kiosk to bring customers into the bar. The coupons

will be a “buy one, try one” promotion so we will still be making sales and getting business.

Customers will need to buy a drink at least 8 oz. or more and they will receive a 4 oz. flight to try

a new flavor for free. This promotion will bring more people in because people love free things.

We will only offer the coupons during select periods of the year so we do not lose out on times

when we do not offer the coupon. When customers try new beers (especially craft beers from

local breweries) they are more enticed to come back for more, granted they enjoy the tasting.

The other big promotion we will be running is discounted drinks during beer tasting

events. The mall will help promote the events by putting up posts on the website and hanging

posters in various parts of the mall. The event in and of itself will bring more customers in

because we will be running more marketing promotions within the mall. Once customers are at

the bar they will receive featured beer(s) at a discounted price; because beer will be cheaper,

customers are likely to buy more.

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The Brew Stop > Projected Common Size Income Statement

Common Size Income Statement

For the Fiscal Period Starting

Apr-01-2015

May-01-2015 June-01-2015

Currency USD USD USD

Costs

Initial Fixed:

TVs (x8) $ 2,400.00 0 0

Perimiter Lining $ 640.00 0 0

Furniture $ 4,000.00 0 0

Popcorn Machine (x2) $ 680.00 0 0

Charging station supplies $ 200.00 0 0

Bar $ 10,000.00 0 0

Bar supplies $ 2,000.00 0 0 $ 19,920.00 0 0

Monthly Fixed:

TV Service $ 29.99

$ 29.99

$ 29.99

Popcorn (bulk) $ 300.00

$ 300.00

$ 300.00

Monthly Mall Fees $ 6,500.00

$ 6,500.00

$ 6,500.00

Legal Fees (Monthly) $ 41.67

$ 41.67

$ 41.67

Marketing Expenses $ 2,000.00

$ 2,000.00

$ 2,000.00

$ 8,871.66

$ 8,871.66

$ 8,871.66

Variable:

Beverage Supplies $ 3,250.00

$ 3,250.00

$ 3,250.00

Transportation & Admin. Costs

$ 2,000.00

$ 2,000.00

$ 2,000.00

Mall Sales Fee (5%) $ 1,625.00

$ 1,625.00

$ 1,625.00

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Payroll $ 6,525.00

$ 6,525.00

$ 6,525.00

$ 13,400.00

$ 13,400.00

$ 13,400.00

Total Costs $ 42,191.66

$ 22,271.66

$ 22,271.66

Revenue $ 32,500.00

$ 32,500.00

$ 32,500.00

Sales $ 32,500.00

$ 32,500.00

$ 32,500.00

Profit

$ (9,691.66)

$ 10,228.34

$ 10,228.34