Memo of TransmittalDate: October 27, 2016

To: Dr. Vic MattaProfessor Theo MuirDr. Andrew PueschelDr. Lee Wakeman

From: Justin KelmanJake LimaRobert MacAskillAlexis MarinoGrant Reeves

Subject: Restaurant Industry Start-Up Feasibility Analysis

The attached report as requested by Copeland Associates, assigned to us on October 10, 2016, includes the tasks charged of creating a business concept within the restaurant industry. Represented by members of Team 4 Cohort 007, we researched and developed a business concept named Foodies & Movies. Included in the report is a breakdown of the factors needed in order for Foodies & Movies to be successful. The conclusions from our research will be explained throughout the presentation.

To provide a better understanding of the operations of our business, the report contains:• Business Description• Industry Analysis• Forecast Demand• Marketing Plan• Management Plan• Operational Plan• Information System Plan• Financial Plan

Through primary research of restaurants and movie theaters that are comparable to foodies & Movies, and also a secondary research of online databases, we were able to compile this report that will show the feasibility of Foodies & Movies.

We thank you for this opportunity in allowing us to create a business concept within the restaurant industry and acknowledge what makes a business become successful. If there are questions, concerns, or comments with the current information we have provided, please contact us via email at am294613@ohio.edu.

Sincerely,

Justin Kelman, Jake Lima, Robert MacAskill, Alexis Marino, Grant Reeves

PM 007 | Team 4

Jake LimaJunior

Entrepreneurship

Justin KelmanJunior

Accounting

Robby MacAskillJunior

Marketing

Alexis MarinoJunior

Marketing

Grant ReevesJunior

Management | Finance Minor

Cohort PM007 | Team 4 | Project 2

Prepared For:Vic MattaTheo Muir

Andrew PueschelLee Wakeman

Prepared By:Justin Kelman

Jake LimaRobert MacAskill

Alexis MarinoGrant Reeves

Executive SummaryPurposeThe purpose of this report is to develop a business plan for a new business in the restaurant industry, as assigned by the Senior Partners of Copeland Associates. We were asked to create a business concept and determine its feasibility in the present-day restaurant industry. The report will explain our restaurant concept and provide thorough primary and secondary data to support our conclusions. In the report, we will predict the performance of our company by comparing our concept to similar businesses in similar markets. We will also describe reasons for starting the business as well as why our business will be successful, which will be reinforced by important information that we gathered from industry analysis and opinions of credible industry experts. Our team recognized the importance of having a competitive advantage in this saturated industry, and created business strategies that are centered around these advantages.

 Competitive Advantage/Innovation:• Uniqueness of our customer experience• Lower price points compared to surrounding competitors• Convenience of movie and meal at the same time

Business ConceptOur team brainstormed business concepts for the restaurant industry and came up with the idea to make a restaurant where we offer private movie screening rooms known as “pods”. Our restaurant, Foodies & Movies gives our customers a premium night out by providing comfortable booths to sit in and watch a newly released movie while enjoying a quality meal.  Our focus as a company is to be a place that can let customers to relax and create memories with family and friends, and to have a positive impact on the surrounding community. We will have a restaurant set up located in Coventry Village, Ohio which is located about 6 miles from downtown Cleveland. Our facility will have a typical restaurant set up, but will have different sized pods that isolate parties and make a private movie screening environment that is uninterrupted by outside interference. We will have an American style menu that offers quality food at reasonable prices, and will sell movie tickets at a discounted price which we will make up for in our food and beverage sales. The report will go further in depth about the values and operations of our company, and will provide relevant information to support our concepts.

Demand ScenariosOur team was charged by the Senior Partners at Copeland Associates to forecast our demand by gathering primary and secondary data of companies that are similar to our concept. We made phone calls to three companies that we found to be very similar to our restaurant-movie business concept. The report will analyze the similarity of our market compared to these companies’ markets to determine our annual revenue with maximum accuracy. The companies that we felt provided the most accurate similarity to our company and would therefore give us the most accurate projections for our revenues are:• LOOK Cinemas• Paragon Theaters• RoadHouse CinemasOur team also gathered secondary research from reliable databases and websites. We chose our target market and broke down the projected volume of customers that our business will serve annually. We made accurate assumptions backed up by reliable data to determine a forecasted annual revenue for our newly introduced company.

Table of ContentsIntroduction…………………………………………...………….………….….………………………....………….......1

Business Description……………………………….……….……………….……..……………....…………….....…..2-4

Industry Analysis……………………....…………………………………………………………...………….…….……5

Demand Scenario………………………….……………………………………..………………....………….…....….6-9

Demand Scenario 2 ……………………………….………………..………....………………....……….....…….....….10

Target Market………………...……………………...……………………..………………….....………....…...…........11

Marketing Plan…………….……..………………...…………………....…………………...…..……………....…..12-16

Management Plan……………………………....………………………………...……………………………………...17

Operational Plan………………………………….………….....…………………………....……………....…....….18-19

MIS Strategy………………………………………..…………………….………………....…………………….....20-21

Financial Plan………………………………………….……..……………….…….…………….………………....…..22

Conclusion…………………………………………………………………………………………....……….…………23

References……....…………………………………...…………………………………………….…………………24-28

Appendix A (Menu)…………………………………………………………………………...…………………….......29

Appendix B (Email Marketing)…………………………………………………………………..…………….………..30

Appendix C (Postcard Preview)………………………………………………………………………………......……..31

Appendix D (Billboard Preview)………………………………………………………………………………....……..32

Appendix E (Marketing Schedule Explanation)…………………………………….……………………………....…..33

Appendix F (Marketing Schedule)…………………………………………………………………………………..…..34

Appendix G (Social Media)……………………………………………………………………………………………..35

Appendix H (Social Media)……………………………………………………………………....………………....…..36

Table of ContentsAppendix I (Website)……………………………………….…………………………………………………...….......37

Appendix J (Merchandising)………………………………………………………..…………………………....……..38

Appendix K (Interior Furniture)…………………………………………………………….………………...………..39

Appendix L (POS System Research)……………………………………………………..……………………...……..40

Appendix M (MIS Organizational Chart)………………………………………………...……………………...……..41

Appendix N (Loyalty Program)…………………………………………………………………………..………...…..42

Appendix O (Staff Information and Qualifications……………………………………………………………...……..43

Appendix P (Employee Pay)…………………………………………………………………………..………....……..44

Appendix Q (Employee Schedule)…………………………………………………………………….………...……..45

Appendix R (Supplier Information)…………………………………………………………………………...………..46

Appendix S (Supplier Information)………………………………………………………………………………...…..47

Appendix T (Implementation Timetable)…………………………………………………...………………...………..48

Appendix U (Social Responsibility)…………………………………………………………………………..………..49

Appendix V (Business Canvas Model)………………………………………………………...…………...…………..50

Appendix W (SWOT Analysis)……………………………………………………………………………...……..…..51

Appendix X (Movie Theater Cost Structure)……………………………………………..……………...……………..52

Appendix Y (Market Share)…………………………………………………………………………...............………..53

Appendix Z (Primary Research Survey)…………………………………………….………………………...………..54

Appendix AA (Location of Foodies & Movies)..……………………………………...……………………...………..55

Appendix AB (Pro Forma Financial Statements)…………………………………...………………………………….56

Appendix AC (Pro Forma Financial Statements)…………………………………...………………………………….57

List of Tables & FiguresFigure 1……………………………………………....……………….…………..................………....…………………3 Figure 2…………………….……………………………………….....…………………....……….…...………….……4 Figure 3……………………………………………………………..…….…………………………….………….…......4 Figure 4………………………………………………………….....………..….………………………….………..…....5

Figure 5………………………………………………………….....………..….………………….………………..…....5 Table 1……………………………………………………………………...………………….…………….……………6

Figure 6…………………………………………………………….....…………..…………………...…………….……6

Table 2……………………………………………………………………...………………….…………….……………7

Figure 7…………………………………………………………….....…………..……………..……………….….……7

Table 3……………………………………………………………………...………………….……………….…………8

Figure 8…………………………………………………………….....…………..……………..……………….….……8

Table 4……………………………………………………………………...………………….……………….…………9

Figure 9…………………………………………………………….....…………..……………..……………...………..11 Figure 10…………………………………………..…………..…………………....………………...……….………...12

Figure 11…………………………………………………………………………..………………….….…………..…..13 Figure 12……………………………………………………………………………..………………………….………14 Figure 13………...…………………………………………………………………………..…………..............…........14 Figure 14……………….…………………...………………………..……………………………………….……........15 

List of Tables & FiguresFigure 15………………..…………………………………....………………......................………....…………………16 Figure 16…………………….…………………..……………………….....…………………....……….…...…………17 Figure 17………………………………………………………………..…..…….……………………………….…......19

Table 5…………………………………………………..………………..……...………………….……………………20

Table 6…………………………………………………..…………………….....………………….……………………20

Figure 18……………………………………………………………..…….…………………..………………….…......21

Figure 19…....………………………………………………………..…….……………………..……………….…......21

Figure 20……………………………………………………………..…….…………………………..………….…......21

Figure 21……………………………………………………………..…….………………………………..…….…......21

Figure 22………………………………………………………………………………………………….……………...30

Introduction

The purpose of this report is to determine the feasibility of our restaurant concept “Foodies & Movies”. Our team was charged by the senior partners of Copeland Associates to create a restaurant concept and determine strategies to introduce a new company into the restaurant industry. We will provide an industry analysis as well as a business plan to become successful and produce a favorable ROE for our shareholders. The report will explain in detail the condition of the restaurant industry and provide relevant information regarding approaches to entering the restaurant industry in the United States. The report will explain the operations of our restaurant, as well as the strategic plan and values of our company. Throughout the report we will give primary and secondary data to support our conclusions. It will utilize information that we gathered from restaurants that operate similar to our concept to accurately project the performance of our company in the first few years of service.

Purpose LocationThis report will explain the demographics and psychographics of the location that we chose to build our restaurant. It will explore the choices that our consumers make when it comes to choosing to eat out. We chose to build our business in Coventry Village, Ohio. The report will determine our target market according to the location that we chose. It will explore the trends and behaviors of the area that we chose, and we will determine how favorable this location will be for the type of business that we decided to create. The report will analyze the industry of the specific location that we chose, and will provide details on why the location will be successful for our business.

Business ConceptOur restaurant concept is called Foodies & Movies. Foodies & Movies will combine great American food with current box office movies in a relaxing environment perfect for family and friends. Each party will be seated in their own individual pod. There will be three pod sizes; four person pods, eight person pods, and two twelve person pods for larger parties. Each pod will have it’s own tv screen to watch the movies except for the two large private pods that have projection screens. We will also have surround sound systems in each pod. Pods will also have a button on the table so customers can call their waiter/waitress that way the movie is not interrupted. The call button will illuminate a light on the outside of the pod signaling service is requested.

Demand ForecastOur team was asked to make an accurate projection of our company’s sales for the first few years of business. The report will utilize primary and secondary data of companies similar to our concept, then we will determine how our business will perform according to this research. We also conducted our own primary research data by creating a survey, see Appendix K. The report will provide useful information on the price of our services and the volume of demand that we must meet in order to become a successful company. Our team will analyze industry data as well as consumer behaviors and develop a business plan to reach our financial goals.

1

Business DescriptionOur restaurant concept is a completely new and innovative way to show new box office movies to the general public. As opposed to the traditional movie theater, parties will be able to experience movies on personal screens in the comfort of their own private pods, while being served drinks and quality meals throughout the show.

Our vision is to be an innovator and trendsetter within both the restaurant, and the movie theatre industry while remaining successful.

Strategy, Goals, ObjectivesOur company plans to build a brand that is favorable for the people that want to participate in the Foodies & Movies experience. On average, 80% of people order some type of food or beverage when they go out to view a movie (Statista 2016). We would like to capitalize on that opportunity by creating a better overall experience for our customers. We recognized the opportunity for improvement when it comes to restaurants that provide entertainment in the dining area. There was a strong opportunity to provide consumers with a memorable experience by allowing them to eat in a private movie viewing pod, which is currently unavailable in the industry. We will strive to create a brand that is focused around customer relations. We want to be a company that our customers will brag about to their friends and family, about how much of a memorable place it was.

2

Foodies & Movies Brand Description

Our mission is to be a place that combines the entertainment of movies with the happiness of great tasting food. We will serve our customers to our highest potential and provide a relaxing environment where friends and families create memories.

Mission Statement Vision Statement

Strategy

Our goal is to be profitable after the first year of business. To strengthen our customer relations and have a positive impact on the community. We strive to utilize the strength of the restaurant industry and combine it with the opportunities in the movie industry.

Our objective is to provide our customers with tasty food at a reasonable price while being one of the first restaurants to offer movie screening to individual tables. We will provide a clean, comfortable environment for people to relax and enjoy a quality meal.

Objective

Color Palette

Goal

Business DescriptionPurpose

Foodies & Movies will provide a completely new and exciting movie-going experience to anyone who enjoys seeing movies and eating great food. Unlike any other movie theater in America, customers will be able to watch new box office movies on their own personal screen, sitting in their own private booths with their friends, families, and loved ones. We hope to provide the community with a place to relax and have fun with their friends and loved ones.

Business ModelWe will be charging the customers as a normal restaurant by each menu item option, see Appendix A. One of our signature items on that menu is our delicious bison burger that will allow customers to add different toppings. Then the customers will be able to choose on their screen what movie they would want to watch. There will be different size booths in order to satisfy different party sizes that enter our restaurant, see Appendix K. These booths will be inside different sized pods with a TV that will be installed onto the wall of the pod. Then customers will be able to choose their movie from a selection depicted on the menu. The pods we provide will be sound proof so customers will only be able to hear their individual movie playing. Our competitive advantage compared to local restaurant and movie theaters is our unique private screening design. Our concept will offer a unique customer experience, while offering lower movie ticket prices compared to our competitors.

3

Our reason for starting the Foodies & Movies concept is because we found an opportunity to use the movie industry decline to our advantage. In a recent New York Film Academy blog there were ten reasons as to why the movie theater industry is declining. Some of these reasons include: prefer going out to dinner, decline in overall theater experience, ticket prices are way too high, and too many people using phones and tablets in theaters. (NYFA 2015). Also, in 2015 it was found that Americans started to spend more money on dining out compared to grocery shopping. (FoxNews, 2015). Knowing this, we decided to combine the two industries. We provide quality food with the perk of being able to enjoy a movie with the meal. With our pod style seating in our restaurant customers can enjoy a movie without outside interruptions, and will be intrigued by our lower movie ticket prices. Customers will also have a button that will notify the waiters and waitresses when they would like their service, minimizing interruptions and maximizing satisfaction. Our company was created to provide the ultimate night out, so that customers can create memories with their family and friends.

Inspiration

Figure 1 above shows that as of 2015 Americans started to spend more money on eating out versus grocery shopping.

(FoxNews, 2015)Figure 1

Business DescriptionLocation

Coventry Village is a small urban town in northeast Ohio. It is surrounded by four major suburbs; Cleveland Heights, Shaker Heights, South Euclid, and University Heights. The combined population of these four suburbs is around 108,700 people, with an average household income of about 53,700 (United States Census Bureau 2013). These suburbs will help us reach middle to upper-class couples, as well as families with kids. Coventry Village is also located approximately 6 miles from downtown Cleveland, which will help us reach young professionals living downtown. Cleveland State University and Case Western Reserve University are also in close proximity, which will help us reach college kids who want to have a fun night out with friends or a significant other. Coventry Village is the type of place where people go to spend the night out on the town similar to a Chinatown or Little Italy. While Coventry Village is home to a variety of different restaurants, the presence of other entertainment options like a movie theater is non existent. Foodies & Movies will bring unparalleled entertainment to Coventry and the surrounding suburbia. For more information on the location of Foodies & Movies, view Appendix AA.

Figure 2 above is where we will be opening Foodies & Movies in Coventry Village.

Figure 2 Source: Loopnet.com, 2016

4

CompetitionFoodies & Movies will be forced to compete with about 8 restaurants, 2 of which offer American style menus. These restaurants have very high ratings, with 4 of them rating more than 4 stars on Google Maps reviews. (2016). While these restaurants are known to offer exceptional tasting foods for their customers, our company will take advantage of their high ticket prices, which range from $20-50 according to their menu items. Another advantage that will help us compete with these restaurants successfully is the entertainment factor of our customer experience. Our restaurant is the only place that offers entertainment and food service simultaneously, making a “night out” much more convenient and accessible for our customer. One study found that “Families that encourage bonding time, multiple times a week, often say their children have an easier time away from home.” (Miranda, 2011). Our restaurant, which targets new parents who want to interact with their children and create meaningful memories, provides these new families with a place to have fun and enjoy quality food. This makes getting the kids to go out and have fun much easier than going to a traditional restaurant where kids tend to get impatient and bored.

Figure 3 (Google Maps 2016)

Figure 3 shows the local competition for Foodies & Movies. While there are a lot of restaurants, there are very few companies that offer entertainment. Marks the location of Foodies & Movies

Industry AnalysisDine-In Movie Theater Industry

Restaurant Industry

Dine-in movie theaters are a small niche in an otherwise saturated market. There are roughly 300 to 400 movie theaters in the US that offer restaurant service out of nearly 5,833 theaters nationwide (Statista, 2015). Many of the remaining 5,500 or so locations have stale popcorn, worn uncomfortable seats, and overpriced candy which has lead to “a decrease in admissions and establishments.” according to IBIS world. (2016). This lead to companies closing underperforming venues and changing their focus to high income areas where higher admissions and concession revenues make up for the declining performance in the industry. Movie theaters do not make money by showing movies. They make their money by selling overpriced concessions. According to Investopedia during the first week(s) of a new film the movie studios take a large percentage of ticket sales while the theaters take a smaller percentage of ticket sales. For more information on movie theater costs see Appendix B. To combat this problem companies are creating “luxury theaters” that attract customers that are willing to pay more for the experience of a dine-in movie theater. Jeffrey Katzenberg, industry expert and former studio chairmen at Walt Disney Co, said “I am one hundred percent sure that these theaters are the future of movie-going”(Schuker, 2011). These theaters up the quality of the experience because they require a higher degree of service that most theaters no longer have. Movie executives also say that even though premium prices may seem high for the experience, in-theater dining is a more time efficient way to spend a night out (Schuker, 2011).

As you can see in Figure 4, movie theaters in the US are currently more focused on creating revenue from admission tickets. Our team recognized the opportunity for improvement when it comes to the revenue produced from Food and Beverages. Some major competitors in the industry such as AMC and Marcus have started to implement luxury theater locations, but are just starting to develop and create their concepts. AMC reported 24 dine-in locations (AMC, 2016) and Marcus has only created 13 dine-in locations. (Marcus, 2016).

Another industry that our company will be competing with is the single location full-service restaurant industry. This industry creates an annual revenue of 180 billion dollars annually and has grown 3.5% over the past 5 years. (Alvarez, 2016). One advantage that the full-service restaurant industry has over the limited service restaurant industry is cost of employees. Unlike high minimum wage costs that heavily impact the limited service restaurants, full-service restaurants are subject to a federal $2.13/hour minimum wage for tipped employees (Lester, 2016). This will allow our business to spend less money on high quality waiters and waitresses.

Figure 4 (IBIS World, 2016)

Figure 5 ( IBIS World, 2016)

As shown in Figure 5, the single location restaurant industry has been steadily increasing in revenue since 2010, we will utilize this growth by combining it with the opportunities in the dine-in movie industry

5

Demand Scenario #1LOOK Cinemas

Description Dallas, Texas Market AnalysisLook Cinemas is a smaller scale luxury dine-in theatre in Dallas, Texas. Look Cinemas provides three different movie-experience concepts within the theater. These different experiences include the “Look & Dine” theater, which is the theater in which customers are served food at at their seat, the “Loft,” theater, which is a 21 and over movie lounge where you can bring in appetizers and cocktails from the bar directly outside the theater, and the the “Living Room” theaters, which are family oriented, where you and your family can sit on sofas, recliners, and armchairs together. Around each theatre, you'll find power recliners, armchairs and sofas with ottomans (LookCinemas2016).

Look Cinemas was established in 2013, and is located in Prestonwood, Texas just inside of Dallas. The estimated population of Dallas is approximately 1,300,000 people, with a median income of $61,644 (Department of Numbers). The main demographic that Look Cinemas tries to reach, is people who are between the age of 20 and 34. The population of this age group in Dallas is 307,850. The market in Dallas for movie theaters is very saturated, with around 25 theaters within the city. Along with 80 Dallas restaurants specializing in American food, this makes for a lot of competition for Look Cinemas. Look Cinemas is able to compete very well with these restaurants and theaters, because it is one of the only establishments in Dallas to offer both food and movies simultaneously.

Figure 6 ( LOOKCinemas.com, 2016)

Figure 6: Shows the modern and spacious building that Look Cinemas shows its movies in.

Comparable Companies

Average Weekly

Customers

Average Ticket Price

(Per Person)

Weekly Revenu

e

Similarity to Foodies & Movies

Projected Weekly Revenue of Foodies &

Movies

LOOK Cinemas

3,200 $23.50 $75,200 45% $33,840

When our team compared the market that Paragon Theater is in to our market for Foodies & Movies, we decided that Paragon received a 45% similarity rating. We came to this conclusion because we recognized that Fredericksburg, Virginia has the most similar population and household income to our market in Coventry Village, Ohio. On the contrary, Fredericksburg had the least similar price point as well as the least similar population of our target market of people within the age range of 20-34 years old. Another thing that hindered the similarity of this market compared to ours was the amount of competition that Paragon had compared to our company. Paragon had a much higher amount of competitors compared to Foodies & Movies. After considering the importance of these variables and how Paragon Theater compared to the Foodies and Movies market, we concluded that Paragon is weighted at the lowest similarity rate of 31%.

Table 1 & Weight Explanation

Table 1

6

Demand Scenario #1Paragon Theater

Description Fredericksburg, Virginia Market Analysis

Paragon theaters was created in 2009 with the idea of creating movie theaters with other entertainment ventures. Fredericksburg Virginia is one of eight locations for Paragon theaters.(Paragontheaters, 2016). As of July 1, 2015 the population of Fredericksburg was 28,118 and in 2014 the median household income was $49,454 (Censusgov, 2016). Fredericksburg most populated age range is 15-29. (Virginialmi, 2016). Paragon’s closest and only movie theater competition is the Regal Cinemas that is located only one mile away from each other. Fredericksburg restaurant saturation is high because Fredericksburg is only 10.5 square miles with 20 restaurants. (Google, 2016). Paragon has been including entertainment venues that don’t only offer movies but also restaurants and other entertainment, like bowling. (Paragontheaters, 2016). This strategy seems to work and keeps Paragon entertainment successful.

Paragon theaters owns a theater called The Chatterbox which offers it’s own unique 21 and up dine- in experience. The club was founded during the Civil War in Virginia and was called “The Box”. The club was a place where people could come together and forget about their differences while enjoying alcoholic beverages and food. In the 1920’s during prohibition, The Box became a speakeasy and only admitted those who could say the password “Chatter”. When prohibition ended the club was reinstated as The Chatterbox and has remained the same ever since. Nowadays The Chatterbox is a place where the people of Virginia can go and enjoy fine food and drink along with a movie.

Figure 7 ( RoadHouseCinemas.com, 2016)

Figure 7 shows the outside of Paragon Theater.

Table 2 & Weight ExplanationComparable Companies

Average Weekly

Customers

Average Ticket Price

(Per Person)

Weekly Revenu

e

Similarity to Foodies & Movies

Projected Weekly Revenue of Foodies &

Movies

Paragon Theater

2,030 $32.00 $64,960 45% $29,232

Table 2

When our team compared the market that Paragon Theater is in to our market for Foodies & Movies, we decided that Paragon received a 45% similarity rating. We came to this conclusion because we recognized that Fredericksburg, Virginia has the most similar population and household income to our market in Coventry Village, Ohio. On the contrary, Fredericksburg had the least similar price point as well as the least similar population of our target market of people within the age range of 20-34 years old. Another thing that hindered the similarity of this market was the amount of competition that Paragon had compared to our company. Paragon had a much higher amount of competitors compared to Foodies & Movies.

7

Demand Scenario #1RoadHouse Cinemas

DescriptionRoadhouse Cinemas was created in 2014 to provide locals a place for entertainment and quality food. Tucson has a population of about 653,000 people and each household has an average income of about 36,936 dollars. (BestPlaces, 2016). According to Sandbox Networks, Tucson has about 123,000 people between the ages of 20-34. (2016). The market in Tucson offers 2 other movie theater locations, which RoadHouse Cinema has to compete with. Tucson also has a very saturated market for restaurants with an American style menu, with over 70 restaurants within the city. RoadHouse cinema maintains its presence in this saturated market by offering special promotions that attract locals as well as tourists. RoadHouse remains successful because of the comfortable environment it designed, and hopes to “change the way Tucson sees movies” (RoadHouse, 2016).

Roadhouse Cinemas is a small scale family owned dine-in movie theater located in Tucson, Arizona. The theater has six screens and offers “an extraordinary restaurant menu created by an award-winning chef and restaurateur, an impressively creative full bar featuring quality wines and Arizona craft beers, and overwhelmingly comfortable recliners.” (RoadHouse, 2016). They offer their customers an American style menu that customers can order off of and watch newly released movies in a theater style screening room with small tables that retract from the recliners for the customer to eat their food on.

Figure 8 ( RoadHouseCinemas.com, 2016)

Figure 8 shows the inside of RoadHouse Cinemas.

Table 3 & Weight ExplanationComparable Companies

Average Weekly

Customers

Average Ticket Price

(Per Person)

Weekly Revenue

Similarity to Foodies &

Movies

Projected Weekly Revenue of Foodies &

Movies

RoadHouse Cinemas

5,600 $21.55 $120,680 10% $12,068

Table 3

The similarity rating that RoadHouse Cinema received was our lowest at 10%. The dine-in movie theater located in Tucson, Arizona had a very different population compared to our market, which decreased its similarity rating. On the other hand, the market in Tucson, Arizona was similar to our market when it came to the average household income as well as the population of our target market in the city. RoadHouse was the most similar pricing compared to Foodies and Movies, which made its similarity rating higher than Paragon theaters.

Tucson, Arizona Market Analysis

8

Final Scoring Matrix

Comparable Companies

Average Weekly

Customers

Average Ticket Price (Per Person)

Weekly Revenue

Similarity to Foodies &

Movies

Projected Weekly Revenue for Foodies

& Movies

LOOK CinemasDallas, TX

3,200 $23.50 $75,200 45% $33,840

Paragon TheatersFredericksburg, VA

2,030 $32.00 $64,960 45% $29,232

Roadhouse CinemasTucson, AZ

5,600 $21.55 $120,680 10% $12,068

Total 100% $75,140

Table 4

The table above shows our comparable competitors weekly revenue and our weighted similarity to them, giving us a projection of Foodies & Movies projected weekly revenue. The first step to our weighting process was defining five important factors that define each company’s market. The five factors include household income, average ticket price, the market’s demographic, the local competition for each company, and the population of each company. We weighted household income highest at 30%, average ticket price at 25%, and then demographic, competition, and population all at 15%. Then, we gave each of the three companies a number from one to three based on how comparable they are to Foodies & Movies. Three being the highest meaning they are the most similar to Foodies & Movies, and one being the least similar. What we found after ranking all three competitors with the weights of the different factors is that Look Cinemas is comparable to Foodies & Movies at 45%. Roadhouse is the least most comparable with 10%, and lastly Paragon theaters is 45%. Next, we took each company's weekly revenue and multiplied it by each similarity weight that they received. This gave Foodies & Movies the projected weekly revenue based off comparison. Then we added all of the projected weekly revenues up, like we did with our weights to get a total of 100% and $87,033 weekly revenue for Foodies & Movies. We recognize the weekly revenue of Foodies & Movies is high, but we are basing our projections off of the presence of existing, successful and comparable companies. We decided to give ourselves 50% market share compared to these companies, which makes our projected annual revenue around 2 million a year, which is still high.

Table 4

Weight Explanation

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Demand Scenario #2Target Demographic

Population 108,700

Ages 20-34 17,408

Average Movie Theater Visits/Year

17,408*AVG 3 Times/Year

52,224

Average Amount Spent Per Customer

$21*52,224 Customers/Year Projected

Revenue:$1,096,704

Our first step in figuring out our demographic was finding the total population within a radius 20 miles of our location. The population within 20 miles of our restaurant is roughly 108,700 people. (US Census Bureau 2013)

Our next step was to determine the age demographic that will determine who will be coming and spending money at our establishment. We decided that our main target audience are those ages 20-34 and within that target audience we found there are 17,408 people (US Census Bureau 2013).

We then found that in a year we would service an estimated 52,224 people who come to our establishment to spend (Statista, 2016).

Our final step was to compute the average amount of money people will spend on the movie which is $21. We then multiplied that by the average yearly customer base and found that our estimated revenue would be $1,096,704 (Statista, 2016).

10

Target Market

Foodies & Movies target market is 20-34 year olds. According to the NPD group, National Purchase Diary, young adults without children are ones that tend to dine out the most (First Research, 2016). Also Foodies & Movies is located in Coventry village that happens to be located 6 miles away from downtown Cleveland and is surrounded by populous suburbs. Within Cleveland and these suburbs are three major college universities. As of 2014, 58% of all people aged between 20-34 attend a college university(NCES, 2016). In 2016 between Case Western Reserve University, John Carroll University, and Cleveland State University there was approximately 25,931 people enrolled as undergraduates. Having so many college students surrounding us really helps us target to our main demographic of younger adults. Although younger adults are our main demographic, we like to target to families and senior citizens as well. As of 2015, 61% of moviegoers range from the ages of 2-17 and 40-60+.(MPAA, 2015).

We did not include 20-34 year olds to show that families and senior citizens do make up a very large population of those who see movies. We believe that we can market to families because of the convenience of being able to have your kids or grandkids eat a meal, while still providing that entertainment value at the same time. We even offer a special on thursday that kids under the age of 12 will get half off their movie tickets. Also being located where there is four busy suburbs surrounding Foodies & Movies will a population of 108,700 people total. (United States Census Bureau, 2013). Our goal is to cater to all ages and make sure that everyone has a wonderful time at Foodies & Movies.

Figure 9 below shows a table of who are the most frequent moviegoers between the years of 2011 and 2015. It also shows underneath the percent of ages for the population as of 2015 and the percent of that population who attends movies.

Primary Target Market Secondary Target Market

Figure 9 (MPAA, 2015)

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Marketing Plan

When marketing Foodies and Movies we really wanted to market the convenience of our restaurant. Many couples and families like to go out for a dinner and a movie. Foodies and Movies offers customers to be able to eat high quality food, while watching the newly released movies. This cuts down an outing in half the time. Our main demographic is 20-34. According to the NPD group young adults without children tend to dine out the most. (First Research, 2016). Because of this, we really wanted to appeal to young couples who like a date night out. Although our target demographic market is the ages of 20-34 we also provide food and movies that will satisfy all ages that walk into Foodies & Movies. We address that showing movies during dinner can slow down our turnover rate. Foodies & Movies wants to provide an experience for people that will overall cut down their time by eating at our restaurant instead of attending a dinner and then a movie. There was a study that was conducted between the year 2004 and 2014 that showed surveillance of a restaurant and the average time customers stayed there. In 2004 customers spent one hour and five minutes in a restaurant. As of 2014 that time increased to one hour and fifty five minutes. The advancements in technology and with phones made customer more consumed on their phones and taking pictures making them stay in restaurants longer. (McCormack, 2014). The average time for movies is 90 minutes long, as seen in Figure 10 (Olson, 2014). So if customers are already spending almost two hours at a restaurant, why not enjoy it with newly released movies, or even an old classic. Also watching movies is optional. Foodies & Movies is a restaurant first, and the movie is just a convenient perk that we include. Either way you won’t be disappointed with our mouth watering bison burger that is grilled to

Foodies & Movies will be open Monday thru Sunday. Monday thru Thursdays the hours of operation will be from 11am to 10pm. Friday and Saturdays Foodies & Movies will be open from 11am to 11pm and Sundays will be 11am to 9pm. We will have a waiting staff for each party to enter Foodies & Movies but part of our customer service includes eliminating as many interruptions as possible. Since customers will be viewing movies while eating, we will allow them to be the ones that will contact the waiters and waitresses when they need their service. The only interruption that will be happening is the wait staff quietly handing the customers their food. The customers can also decide when they want to receive their check from their waiter/waitress. This type of customer service allows customers to fully enjoy their movies with their family and friends. We will have a waiting staff for each party to enter Foodies & Movies but part of our customer service includes eliminating as many interruptions as possible. Since customers will be viewing movies while eating, we will allow them to be the ones that will contact the waiters and waitresses when they need their service. The only interruption that will be happening is the wait staff quietly handing the customers their food. The customers can also decide when they want to receive their check from their waiter/waitress. This type of customer service allows customers to fully enjoy their movies with their family and friends.

Overall Marketing Strategy

Customer Service & Service Hours

your perfection, or our Chicago brick oven pizza that the customer can customize as their own personal pizza.

Figure 10 (Olson, 2014)

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Marketing PlanMarketing Mix

EmployeesWe hold our employees to a high standard. They will always be asked to treat customers with the most respect and follow all rules within our guidelines. They will asked to also take in pride with Foodies & Movies, as we take pride in them for being our employees.

Public RelationsFoodies & Movies understands how important public relations is to our restaurant. We take pride in our restaurant but want our community to as well. By upholding the standards we set for ourselves, and the standards set by customers we will achieve positive feedback and reinforcement from our customers and the community. We also recognize that giving back is to our community is something we take pride in. Semi-annually we will have a different fundraiser or planned event that will help raise money for local charities in greater Cleveland. Some ideas include planting trees or a garden in our community. Also having a day or week where a percentage of our sales from movies and food go towards a charity that we feel strongly about. We are open to talking to other organizations, companies, etc. about ways to raise money or complete charitable activities. Foodies & Movies does not only want to be known as a great restaurant, but also as a helping hand in our community. For more on giving back to the community see Appendix U.

Price: Prices are comparable to our competitors with very close concept as us. Weekly and holiday deals are offered. Also offer loyalty programs.

Place: 1854 Coventry Rd, Cleveland Heights, Ohio. 44118. 6.1 miles away from downtown Cleveland. Has Cleveland State University, John Carroll University, and Case Western Reserve as surrounding universities. $22,000 a month for rent.

Promotion: Active on our social media accounts which include: Facebook, Twitter, instagram, and our website. Also send home postcards and emails. Billboards are put in place in downtown Cleveland.

Product: Offering our quality food with the option of watching newly released movies.

Figure 11 above represents our 4 P’s of the marketing mix for Foodies & Movies. The four P’s include Price, Product, Place, and Promotion.

Our location is in the heart of Coventry Village. Coventry village is a commercial business district for its surrounding areas. Our actual building space has all glass windows so people can look into our restaurant and see our customers enjoying a nice meal while watching movies. Our outside will have a large sign saying “Foodies & Movies” with the same color scheme as our logo and tagline, see Appendix J. There will not be much decoration on the glass as we want to keep our look simple and sophisticated. Throughout the seasons we will add fun, but classy decorations according to the holidays in that season. If we feel that other signs or decorations need to be added throughout the years, we will add them accordingly.

Exterior

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Figure 11

Marketing Plan

We will be using social media to consistently promote Foodies & Movies and all of the current deals we will be offering. This will include the new releases we are showing, as well as the special movies we will be seasonally showing. Lastly we will use social media as a platform to promote any special loyalty programs or events that will be happening. The reason we are using social media is because of it’s ability to have large amounts of exposure (brand awareness) and convert that exposure to increased traffic. According to smartinsights.com, 92% of marketers have increased their exposure through social media and 80% had positive results in terms traffic (Colwyn, 2014). The reason our exposure will be high is because most if not all of our target demographic uses social networking services like Facebook or Twitter. When they visit Foodies & Movies they can like us on Facebook or follow us on Twitter to receive discounts. Also customers can tag Foodies & Movies when they make posts about their experience. This should help drive traffic to our business and ultimately increase our revenue. To see previews of our social media sites see Appendix G

Social Media

Social Media

Figure 12 above shows what percent of marketers experienced a range of benefits from marketing through social media platforms such as Facebook and Twitter. Increased exposure and increased traffic are the top two benefits that marketers see.

Future DevelopmentFor the future, Foodies & Movies will consider expanding and opening more restaurants in other locations with the same type of market. We would like to build a brand and really get our name on the map of the restaurant industry as being unique. Also with technology growing and updating, we will make sure to use the most efficient, effective technology to satisfy our customers. We will use our POS system Toast to help track our individual food sales, beverage sales, and ticket sales and then make changes accordingly when we see a certain area could be improved. Also around our annual anniversary we will look at our previous year’s progress and think of new ideas and strategies that can improve our company, not only for the customers but also for the employees. Foodies & Movies wants to satisfy the customers of today and tomorrow.

Figure 13 shows the percentage of age groups who use social media.

Figure 12 (Colwyn, 2014)

Figure 13 (Pow Research Center, 2015)

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Marketing PlanAdvertising Methods

Figure 13 shows the top 10 marketing tools used by small businesses in the U.S., and we decided to base our advertising methods off of the tools that were successful for other small businesses in the past few years. Our marketing budget is set at 10% of our total revenues, which means that we are able to spend up to $150,000 a year on advertising and marketing. The three main methods of advertising that we are going to use are sending emails to customers who provided us with email information, sending postcards via Vistaprint, and advertising on billboards around the greater Cleveland area.

Emails (total of $156 a year)

System to be Used: Businessnewsdaily.com reported that the #1 rated mass email marketing software for small businesses is called Benchmark. (2016). This software will allow us to send up to 1000 emails a month, for only $12.95 per month. We plan on doing 2 email advertisements a month, which means we can market to 500 people each month with an email every two weeks. Our POS system will allow customers to enter in their emails to receive offers, which is how we will get our email list. For more information on the features of Benchmark, refer to Appendix B.

Why Emails? Our team researched marketing methods in great depth and came to the conclusion to add emails to our collection of marketing tools. One article by MarketingCampaign.com reported that “90% of email gets delivered to the intended recipient’s inbox, whereas only 2% of your Facebook fans see your posts in their News Feed” (2016). This shows that Emails are definitely acknowledged by the consumer, at a much higher rate that social media posts. Another thing is, we will be gathering the emails of the customers that we have served, strengthening the customer relations between our company and our consumer. We will email promotions and specials to our current customers, while trying to reach out to potential customers at the same time. To see our marketing schedule, reference Appendix F

Figure 14 (Benchmarkemail.com, 2016)

Figure 14 shows a report provided by our marketing software Benchmark. It gives us important information such as bounce rate, number of opens, and number of links clicked.

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Figure 13 (Statista.com)

Marketing PlanPostcards (total of $10,919 a year)

System to be Used: We will be sending home postcards to the surrounding suburbs of Foodies & Movies to help promote our restaurant. The first postcards being sent home will be a month before our grand opening and will list information regarding our grand opening. Then throughout the year we will also be mailing 2,000 postcards a month to promote Foodies & Movies. It costs $909.97 a month to send out 2,000 fliers monthly, so it will be a total of $10,919.64 per year. For a preview of a postcard we will send out, refer to Appendix C.

Billboard Advertising (total of $111,600 a year)System to be Used: Fitsmallbusiness.com shows that the average cost per billboard per month in Ohio is $3,200. (2016). We plan on having three billboards year-round located on major roads in downtown Cleveland and suburbs surrounding Foodies & Movies. The total cost of these three billboards will total at approximately $111,600 per year.

Why Postcards? Our company recognized the effectiveness of postcards, and decided that this will be one of our primary marketing techniques. One article explained, “The Postal Service suggests that postcards are more than six times as likely to be read as compared with direct mail letters - 94% versus 14%.” (Baltz, 2016). This shows that postcards are much more readable to the consumer than the traditional mail letters that people receive from companies. Postcards offer exceptional customization options that can be used to portray a company’s service in an attractive manner. They also create a very personalized message for a company to connect with it’s consumer, which our company values greatly. As for data tracking to analyze the performance of our postcards, we will attach a QR code that customers can scan to get exclusive deals and learn the promotions we are offering. Postcards will provide a great marketing tool for the low cost it offers.

Why Billboards? It is undeniable that we all encounter billboards in our daily lives. Although billboards are not the cheapest form of advertisement, they are undoubtedly a part of all of our lives. According to the Arbitron study, “71 percent of Americans often look at the messages on roadside billboards.” This is due to the amount of time people spend in their cars on a daily basis. Whether it's on their drive to work, or to a trip downtown, our billboard will attract the attention of consumers in our area. Our billboards will attract local consumers as well as tourists who are looking for the nearest attraction. To see our billboard, see Appendix D.

marks the location of Foodies & Movies

marks the location of our billboards

Figure 15 (Ohio Department of Transportation, 2016)

Figure 15 shows the traffic flow of roads and highways in our restaurant’s location. It also shows where our billboards will be placed. Our team is assuming that about 20,000 people per day will see our billboard, according to research and traffic patterns.

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Management Plan

Qualifications: ● Must be a shareholder● Must have very good problem solving and critical

thinking skills● Must have expert industry and department

experience● Must communicate well and offer a variety of

perspectivesExperience:

● Must have senior leader experience or have been on a board of directors for different company

● Must have at least 10 years of experience in the restaurant industry

Expertise:● Skilled communicator● Tech-savvy● Leadership qualities

Roles: ● CEO will report to board on important company

issues● Will come together to make decisions on the

company’s future● Will analyze performance of company and look for

opportunities for improvementFor more information on our staff, visit Appendix O.

Criteria for Executive Staff/Board of Directors

Managers: Managers are in charge of managing waiters and waitresses and ensuring customer satisfaction. They are also in charge of making the schedule each week, and hiring new employees when necessary. They will be the last to leave at night and make sure the restaurant is clean.

Head Chef and Cooks: The head Chef is responsible for running the kitchen. His or Her duties include making food, managing cooks, and keeping track of inventory in order send order requests to the executive manager. The Cooks responsibilities involve cooking food, and assuring the accuracy of the orders. At the end of the night the Cooks are responsible for cleaning the kitchen.        Waiters/Waitresses: Waiters and waitresses duties include taking orders, starting the movie, and checking customers out. They will also clean up after closing.

Hosts/Hostesses: It is the responsibility for the Hosts and Hostesses to greet customers upon arrival and show them to their table. They are also responsible for answering the phones and taking reservations. Hosts/Hostesses will also sell gift cards when requested. They will also assist in cleaning after closing.

Role of Employees

Professional Service FirmsAccounting: Our accounting will be managed by Kelman & Moses Inc., a Cleveland based firm and they will be our bookkeepers and provide tax planning and preparation services. We chose this firm because of the affordability and the experience of their CPA’s. This firm also specializes in small business and that fits perfectly with what we are.

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Figure 16

Figure 16 shows the structure of our employee hierarchy.

Operational Plan

It is important for Foodies & Movies to track the progress we make in order to make adjustments to stay successful. One useful tool to do this is the Toast POS systems we have placed in our restaurant. Toast offers features that can be customizable for Foodies & Movies. These features include the setup of our menu, the kitchen workflow, table setup, and anything that needs to be customized to our needs. Toast also offers a simple yet fast way for order and food processing. Toast is also convenient for those who can’t always be in the office. Managers can monitor sales reports, exception reports, payment reports, and menu reports all on their mobile device, laptop, or tablet. Toast offers a tablet that our employees can use right at the customers tables. The tablet allows employees to take an order, send the tickets into the kitchen, and also accept the payments.  It also can help notify all employees when a certain food item might be running low and then the employees can be aware of how many servings are left for the customers. With Toast we can also monitor who are frequent returned customers are, how much they spend, and their favorite food items. So not only do we want to monitor what our guests are doing, but also how well the employees are performing. Toast allows us to track employees productivity, average net sales from the kitchen, and average fulfillment time of orders by the hour. We can then see which food and movies are the drivers of our business, letting us making adjustments for the future. Lastly there are some added benefits with Toast other than monitoring our progress. With Toast there is an average 10x more signups for for loyalty programs by having email sign up through the Toast POS Systems. Also having the Toast POS system accessible to customers increases 72% of gift card sales and 10% of online ordering revenue. Toast will help Foodies & Movies not only monitor our progress but will also improve it. (Toast Inc, 2016)

Monitoring ProgressOur team recognized the importance of employee morale, and this is centered around human interaction. We will control our human resources as a team of managers, but will not assign an employee as a Human Resource manager. Our team thought that we would do a better job of handling human resources as a group rather than one specific person doing it. We will address the need to keep customer relations as our number one priority, and keep our employees happy so that they can keep our customers happy. We will have weekly memos displayed in our employee area to remind people of our values and goals as a company. We will also conduct weekly meetings to update our staff on our progress and areas that need improvement so that our employees know what they're doing well and what they need to focus on more. We will also make sure that our employees are aware of our social responsibility, which is explained in further detail in Appendix U.

Human Resource Needs

Physical Facility RequirementsOur restaurant will be offering private screening pods that will offer seating for parties of 4, 8, and 12. These pods will take up an average of 80 square feet per unit, and we will offer about 30 pods for people to enjoy a meal in. This will leave us with enough room in the restaurant for people to freely walk around, as well as room for restrooms and the kitchen area. Our kitchen will be fully supplied with 2nd generation restaurant equipment, as well as a few purchases of our own. We have decided to dedicate about 1,200 for our kitchen and equipment rooms, leaving plenty of room for our staff to move around efficiently. The bar that we are planning to implement will be about 500 square feet, being 60 feet long and about 8 feet in depth.

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Operational Plan

We will strive to provide the best tasting meals possible and in order to fulfill that we are committed to buying the best ingredients available to us. Our burgers will be made from grass fed bison beef sourced from Blackwing Quality Meats. We will spend $2,650 per week on bison beef which will be enough for 500 bison burgers. Our Chicken will be sourced from Swanson Meats Inc. We will spend $745 per week on all natural chicken wings which will be enough for 500 orders. Our produce products will be purchased from Premier ProduceOne. We will purchase $300 worth of produce very week. We will purchase our appetizers from Performance Food Service for $2,650 per week. Our fresh pizza will be made with fresh ingredients from Assoluti for $1,000 per week. We have decided to partner with Pepsi Co and will purchase soft drink mix for $800 per week. Lastly, we will receive our beers, spirits, and wine from Heidelberg Distributing. For a week worth of 12 different beers on tap, different liquors,and nicer wines we will spend $2,200.

Supplier Information

The supply chain will be managed by the executive chef and POS system. . Our POS system comes with the ability to track inventory when sold. When a certain amount of inventory is sold the POS system will automatically put an order together for the executive chef to see. When it comes time to order more inventory the executive chef will put together an order form and send it to the executive manager to get approved and send to vendors. The POS system will then track that order all the way up until the inventory is sold and then it will suggest that more inventory be purchased.    

Inventory Tracking

Why We Chose Our Suppliers

Figure 17 shows the inventory tracking feature of our Toast POS system. This method offers accurate, consistent, and accessible reports of inventory that will increase operational efficiency and decrease costs of wasted inventory.

Figure 17

Through detailed research, we came to a conclusion on the suppliers that we will be partnering with. Our company wants to provide our customers with quality ingredients, which is why we chose to specialize in the few food items that we offer. We decided that instead of having a variety of menu items, we will focus on perfecting the few food items that we have. Our projected crowd favorite will be the bison burger that will appeal to people who appreciate quality and are looking for healthier options compared to the typical unhealthy american food. One article explained, “America now has a choice of healthy and delicious red meats which are lower in calories and cholesterol than chicken or turkey.” (Blackwing, 2011). The central focus we had when choosing our suppliers was quality, and we knew that would mean sacrificing some profit margin. For more information about our suppliers and why we chose them, visit Appendix R.

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Source: Merchant Maverick (2016).

MIS StrategyMIS Requirements and Needs: For our company Foodies & Movies, we wanted to choose the operating system that would make us the most efficient we can be as a restaurant, while remaining cost effective. Information systems have become a strategic key, as they allow businesses to achieve levels of strategic innovation, efficiency, decision making and mass collaboration that were previously impossible. (McGann, 2015). We recognize the importance of operating systems and how much it can affect a business’ success. Our team wanted a restaurant Point of Sales (POS) system that would allow us to efficiently make sales and track our performance over time. We wanted a system that would make it easy for our employees to be productive salesman. We want a POS system that is reliable, convenient, and easy to use so that we can maximize our efficiency as a company. Our company will focus on a system that allows our employees to be quick with their service, and allow our company to provide the best service possible for our customers. After doing research on POS systems that are available, our team chose three POS systems that represent exactly what our company is looking for; TouchBistro, Lavu, and Toast.

Cost Analysis: The three options for a POS system for a small business offer prices that are very competitive compared to other options. With more cost comes more features and options, unique to each business’ needs. We thought that Toast was the best option for the cost of $100 dollars per month, as well as the costs for side products and accessories that we will need. Toast offered the most features for a reasonable price, and we believe this system will be well worth the investment.

  Lavu Toast TouchBistro

Cost of POS

$59 per month

$100 per month

$129 per month

Why Toast POS? Our company decided to choose Toast  for our POS system that we will operate under. After weighting the 5 variables that we thought were the most important to our company’s success, we gave a score of each POS that we based on in depth research of what that company offers. For more information on the research conducted, see Appendix L. We chose Toast as our POS system because it offered an immense amount of customization features such as a customizable table and menu setup, and a custom kitchen workflow display. We also found that customers of the Toast POS system posted numerous reviews from current business managers that explained how easy their employees mastered the use of this operation system. One client explained, “"We were at a point where I thought we had plateaued. I said 'That's the most volume I'm going to be able to get out of that kitchen, out of that number of seats.' Then Toast came along, and that number's up twenty percent." (Toast Inc, 2016). Overall, we found that Toast would be the most cost effective option for a POS system for Foodies & Movies.

*Scores are from 1 (lowest) to 5

Lavu Toast TouchBistro

Ease of Use (25%) 4 4 5

Customization (25%) 2 5 4

Data Tracking (25%) 2 5 4

Reliability (15%) 3 4 5

Compatibility (10%) 3 4 3

Totals 14 22 21

Weighted Total 2.75 4.50 4.30

Table 5

Table 6

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MIS StrategyDashboard on Key Performance Indicators

Ticket Revenue Vs. Food Revenue

We found that a customer will spend $21 total on an average visit to Foodies & Movies. Each movie ticket costs $8 per ticket for adults., so we found that each customer will spend an average of $13 on food. This is important for managers to keep track of in order to report to the owners how effective our prices are in terms of revenue.

Food Sales by Category

We found that 38% of our revenue will come from ticket sales, and 62% of our revenue will come from food sales. We plan on reaching $1,247,541 in revenue in the first year, which means we will make $474,066 from ticket sales, and $773,475 from food sales. Owners will be able to look at this in order to make sure our food and ticket prices are ideal for success.

Revenue Made From Each Pod

We found that every 4 person pod will create $84 in revenue when filled, each 8 person pod will create $168 in revenue when filled, and each 12 person pod will create $252 in revenue when filled. This will be useful for owners to look at after the first year, to decide how much total revenue was created from each type of pod, and whether or not to increase or decrease the amount of each type of pod in the future.

Our team found the percentage of revenue each category on our menu will create for our company. We did research on the behaviors of consumer spending in the restaurant industry, and found exactly how much of our revenue will be created from each product category. This is useful for owners to determine opportunities for improvement in a sale of a specific product, and for managers to motivate employees to sell a certain product more than others.

Figure 18 Figure 19

Figure 20

Figure 21

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Financial PlanInitial Investment Feasibility

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Foodies & Movies requires an initial investment of $100,000 that will help pay first month's rent, some renovations, beginning inventory, and some start up cash. The investment is broken down into 70% from the owners and 30% loan. Our sales were estimated using our the weighted sales from our similar companies that we researched. Our sales are projected to grow by 6% from year 1 to year 2, 8% from year 2 to year 3, 8% from year 3 to 4, and 5% from year 4 to year 5. As our net income begins to grow steadily, we plan on paying out dividends by the end of year 4. As our net income continues to increase we plan on paying out even more dividends.

At the end of the fifth year our Net Present Value is $53,789. Our required rate of return is 21.3% and our Internal Rate of Return was calculated at 28%. Our NPV and IRR both show that Foodies & Movies is a feasible business. Our payback period was calculated at 4.86 years until we make the investment back. Even Though Foodies & Movies loses money the first two years, those loses are quickly erased as the investment starts to make money in the 3rd according to our income statement. At the end of five years Foodies & Movies has a horizon value of $462,415 which is very good. For more information on our financials see Appendices AB - AC.

Figure 22

ConclusionAfter constructing our research through primary and secondary data, we have found what is relevant and necessary for our business concept, Foodies & Movies. This report includes our business description, the restaurant and dine-in movie industry analysis, and lastly the forecast demands for our comparable companies. We found that we do have many similarities with our competitors, but Foodies & Movies is innovative with our pods styled seating within the restaurant. This style seating allows our customers to enjoy their movies without distractions and interruptions from other customers and staff. Our menu is specialized so that we can focus on the high quality of our food instead of having a wide variety of low quality food. We also have a competitive advantage compared to local competing movie theaters because we sell our tickets for cheaper prices. Being located in an area that has other restaurants and movie theaters around us, this competitive advantage allows us to not only attract customers, but keep their retention rate high. While we aim to strive as a business centered around our customer’s experience, we realize that we can stand out within the industry by providing our customers with convenience and efficiency. Our unique style, newly released movies, and high quality food will differentiate us from our competition within our location.

We determined that our target market to be people within the age range of 20-34 due to the information that our primary research gave us. The report provided a projected revenue by calculating the revenue of companies that are similar to ours and in a similar market. Through this projection, we will be able to determine how much costs we can incur, and how much annual revenue we should expect in the first few years of business. The report also gave relevant information on our business strategy and how we plan to be a successful company in the first few years of business. We recognize the difficulty of entering this saturated market, but explore the opportunities and competitive advantages that can make our company sustainable. The goal of this report is to determine the feasibility of our restaurant concept, and provide important information and data that reinforces our assumptions. The report will be useful for the Senior Partners of Copeland Associates as well as for any person that is thinking about entering the restaurant industry in the future.

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https://www.lavu.com/how-ipad-pos-works Lee, B. (2016, Oct. 24). Phone Interview with B. Lee from Paragon Theaters. Lester, William. (2016). “The consequences of higher labor standards in full service restaurants.” Retrieved October

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LOOK. (2016). “LOOK Cinemas About Us.” Retrieved October 24, 2016 from

http://www.lookcinemas.com/look/contact-us

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Mergent. (2016, August 29). “Industry Overview”. Retrieved October 28, 2016 from,

http://mergent.firstresearch-learn.com.proxy.library.ohiou.edu/industry_detail.aspx?pid=27&chapter=1 Morris, Brian. (February, 2013). “Are Postcards Still Relevant?” Retrieved November 8, 2016 from

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MPAA. (2015). “Theatrical Market Statistics.” Retrieved November 9, 2016 from,http://www.mpaa.org/wp-content/uploads/2016/04/MPAA-Theatrical-Market-Statistics-

2015_Final.pdf NCES. (April, 2016). “Enrollment Trends By Age.” Retrieved November 10, 2016 from,

http://nces.ed.gov/programs/coe/indicator_cea.asp Olson, Randy. (2014, January 15). “Movies aren’t actually much longer than they used to be.” Retrieved

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Paragon. (2016). “Paragon Theaters.” Retrieved October 21, 2016 from http://www.paragontheaters.com/location/

24088/Village-Showtimes Performance Food Service. (2016). “Assoluti.” Retrieved November 1, 2016 from http://www.performancefoodservice.com/Our-Products/~/link.aspx?_id=

1B735AC014904F6CAE84D41EBA4480EE&_z=z

Performance Food Service. (2016). “West Creek.” Retrieved October 30, 2016 from http://www.performancefoodservice.com/Our-Products/Exclusive-To-Us/Categories.aspx#category=1d3c67b3-ffe1-489f-bbb5-1ff8579212c7&brand=e5b517f7-9840-43bf-be7a-de4057ce3852

PowResearchCenter. (2015, October 8). “Social Media Usage: 2005-2015.” Retrieved November 9, 2016 from,

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ReferencesPremier Produce. (2016). “Buy local, buy fresh.” Retrieved November 1, 2016 from http://www.premierproduceone.com/local/local-farms RoadHouse. (2016). “About RoadHouse Cinemas.” Retrieved October 21, 2016 from,

https://crossroads.roadhousecinemas.com/about Sandbox Networks. (2016). “Demographics Statistics.” Retrieved October 25, 2016 from

http://www.infoplease.com/us/census/data/arizona/tucson/demographic.html Schuker, Lauren. (2011). “Double Feature: Dinner and a Movie.” Retreived October 25, 2013 from

http://www.wsj.com/articles/SB10001424052748703808704576062040285064856 Signsus. (2016). “Order Express.” Retrieved November 10, 2016 from,

http://www.signsus.com/design_express.php?category=custom-signs&material=CA Simon, Andy. (January 21, 2016). “Three technology Trends for Restaurants in 2016.” Retrieved October 23,

2016, from https://www.ncr.com/company/blogs/hospitality/three-technology-trends-for-restaurants-in-2016

Sperlings Best Places. (2016). “Tucson, Arizona.” Retrieved October 26, 2016 from

http://www.bestplaces.net/economy/city/arizona/tucson Statista. (2016). “Number of cinema sites in the United States from 1995 to 2015.” Retrieved October 24, 2016 from

https://www.statista.com/statistics/188643/number-of-us-cinema-sites-since-1995/ Statista. (2016). “Film Industry In the United States 2016.” Retrieved October 25, 2016 from

https://www-statista-com.proxy.library.ohiou.edu/study/11472/film-industry-in-the-united-states-statista-dossier/

Statista. (2016). “Number of cinema sites in the United States from 1995 to 2015.” Retrieved October 24, 2016 from

https://www.statista.com/statistics/188643/number-of-us-cinema-sites-since-1995/

Survey Monkey. (2016). “Foodies & Movies Survey.” Retrieved November 6, 2016 from https://www.surveymonkey.com/analyze/7tmMuRHr3RwnkpbOnY_2FmeogIxu60Sv8XEoMbqYrAUJQ_3D

Swanson Meats. (2016). “Swanson Meats Inc.” Retrieved October 30, 2016 from

http://www.swansonmeats.com/wp-content/uploads/2014/08/Winter-Specials-December-February.png Swanson Meats (2014). “Poultry.” Retrieved November 15, 2016 from

http://www.swansonmeats.com/poultry/

27

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http://www.restaurant.org/Manage-My-Restaurant/Marketing-Sales/Social-Media/Social-media-options-

which-is-right-for-my-restaur The Ohio Department of Transportation. (2016). “Cuyahoga County Annual Average Daily Traffic 2013.”

Retrieved November 10, 2016 from http://www.dot.state.oh.us/Divisions/Planning/TechServ/traffic/Traffic_Survey_Flow_Maps/2013_

Survey_Flow_Maps/cuy_tsr_2013.pdf Toast, Inc. (2016). “Full Service Management Just Got A Lot Easier.” Retrieved November 6, 2016 from,

https://pos.toasttab.com/restaurant-pos/full-service-restaurant Toast Inc. (2016). “Restaurant POS system? More like all-in-one restaurant platform.” Retrieved October 29, 2016

from https://pos.toasttab.com Touch Bistro. (2016). “#1 Ranked Restaurant POS System.” Retrieved October 29, 2016 from

http://www.touchbistro.com/pos-solutions/restaurant-pos/ Tumblr. (2016). “Interiors.” Retrieved October 26, 2016 from

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http://colleges.usnews.rankingsandreviews.com/best-colleges/john-carroll-university-3050 Virginialmi (2013). “Virginia Community Profile.” Retrieved October 26, 2016 from

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http://www.webstaurantstore.com/american-tables-seating-as-42t-1-2-1-2-circle-button-tufted-back-corner-booth-42-high/132AS42T12.html -

Zurko, Nicholas. (23 January, 2015). “10 reasons Why Movie Tickets Are Declining” Retrieved October 26, 2016 fromhttps://www.nyfa.edu/film-school-blog/10-reasons-movie-ticket-sales-declining/

28

Appendix AMenu

29

Appendix BMarketing Appendices

Fewer technologies have done more for marketing than email. It is extremely fast, inexpensive, and delivers a lot of data to pour over. But one facet of email marketing tends to be grossly underused -- and it's a shame because it's a great, easy way to gather invaluable client data. When using email marketing to send out email surveys or you place a poll right on your Website, we are doing more than bypassing the usual mail or telephone survey. We’re saving money, connecting with our recipients, and showing all of our permission-based subscribers that you truly care what they think.

Advantages of Email:

• Gather feedback on your products or services.

• Improve your product offering, seasonal line or list of services.

• Find out if your customer service is suiting your client needs.

• Discover which products are most popular with customers.

• Find out how your customers are using your products and services.

• Uncover ancillary products that customers want to see you sell.

• Gather feedback on a special event or sale.• Find out how you can improve your

Website or the sales process.

Features:

• Each time you send an email poll, your customers see it as a fresh opportunity to give you feedback on your products and services.

• You can send different email polls to different recipients, depending on their needs and interests.

• The more people that answer your questions, the better the chance you'll be seen as a good email marketer by email service providers.

• You can create a special layout promoting your products and simply use a link to take customers to the survey.

Email Marketing Software Information

30

Appendix CMarketing Appendices

This is an example of a postcard we would send out to neighborhoods in Cleveland. This would be the first postcard we send out to get our name out on the market, and to let people know about our grand opening.

Post Card Preview

31

Appendix DMarketing Appendices

This is an example of the billboard we will have up in the month leading up to our Grand Opening. We will have three of these Billboards up on major highways surrounding downtown Cleveland. After our grand opening, we will change the billboard designs.

Billboard Preview

32

Appendix E

We decided to use four different marketing advertising techniques in order to brand Foodies & Movies. These four techniques include emails, postcards, social media, and billboards. We decided as a team that we will not send out first emails until a month after our grand opening. Our grand opening is December 1st, 2016 so the first emails will be sent out on January 1st. Then we will be sending emails home every month after that. This way we can build a customer base from our first month sales by using our POS system Toast. Using BenchMark as our emailing system it only costs us $156 a year to send 1,000 emails per month. Our total target recipients for a month is 500 customers, sending them 2 emails a month. As of 2016, 90% email recipients receive the emails that are sent out to them (MarketingCampaign). So then we took 90% of the 500 recipients to get 450 people reached.. Next marketing advertising we decided to do was sending postcards from VistaPrint home to residents in surrounding areas of Foodies & Movies. Foodies & Movies will start sending out the postcards home a month before our grand opening, so November 1st, 2016. We will send 2,000 postcards to different home every month promoting our different deals and specials we have for that month. It costs $909.97 a month for 2,000 postcards to be sent out which equals to $10,919.64 annually. Compared to direct mail, 94% of postcards are being read (Baltz, 2016). So we took 94% of our 24,000 total annual recipients and came to a conclusion of 22,560 people reached.

Marketing Appendices

Next marketing advertising we decided to do was sending postcards from VistaPrint home to residents in surrounding areas of Foodies & Movies. Foodies & Movies will start sending out the postcards home a month before our grand opening, so November 1st, 2016. We will send 2,000 postcards to different home every month promoting our different deals and specials we have for that month. It costs $909.97 a month for 2,000 postcards to be sent out which equals to $10,919.64 annually. Compared to direct mail, 94% of postcards are being read (Baltz, 2016). So we took 94% of our 24,000 total annual recipients and came to a conclusion of 22,560 people reached. Our next advertising strategy is social media. Our social media accounts include our facebook page, twitter account, instagram account, and our website. All four of the social media accounts were free to make. We also can’t control who likes to view our different accounts as they are available to public access. We hope to use these accounts as platforms to help promote our different deals and movie showings we have weekly and monthly. Our last advertising technique Foodies & Movies decided to use was billboards. We decided to use three billboards in different locations on the various Cleveland highways. We can advertise our billboards for a year at a time so we decided to Start once our grand opening date is, on December 1st. The cost of three billboards annually is $111,600. We found that there is approximately 1.7 million people that live in Cleveland and their close surrounding areas and 45.7% of that population travel served by freeways (FHWA, 2016). According to Axiom, billboards reach 93% of customers (2016). So to reach our total number of impressions, we took 45.7% of 1.7 million people, and then 93% of that number to get a grand total of 757,792.83 for an people reached. We believe that our different advertising strategies will really help put Foodies & Movies on the map and help bring in customers.

The actual schedule is on the next page

Marketing Schedule

33

Appendix F

Nov

Dec

Jan Feb Mar

Apr May

Jun Jul Aug

Sep Oct Nov Yearly Cost ($)

People Reached

Cost/People Reached

Email 156.00 450 0.347

Postcard 10,920 22,560 0.484

Social Media

0 n/a n/a

Billboard

111,600

757,793 0.147

The figure above is the marketing schedule that we plan on following for the months before the first year and the first year for Foodies & Movies. If a month is not highlighted then it means that we won’t be using that advertising strategy for that time period. As shown, almost every month is used for all of the marketing advertising.

Marketing AppendicesMarketing Schedule

34

Appendix GSince we believe that millennials are going to be a large portion of our customer base, we’ve put together social media accounts in order to better connect with them. We will mainly post about special offers, events, and other interesting things happening in the world of Foodies & Movies. Each week, we will also post a selection of movies we’re playing.

Marketing Appendices- Social Media

Facebook

This screenshot shows the top of our facebook page. On the left, you can navigate to “Posts” to see what we have been posting, “Photos” to see the photos that we have shared, and “About” to find out anything you need to know about foodies and movies. (Such as address, phone number, ticket prices, menu, website URL, other social media sites, etc.)

This post gives our followers the link to the new website we came out with.

This post shows our followers what our location looks like.

This post is an example of a post we will put up every week on facebook. This post will show our followers a full list of the movies we are playing that week, and will have information regarding when each movie will stop playing.

35

Appendix HMarketing Appendices- Social Media

Twitter

This screenshot shows the top of our twitter page. This website doesn’t give us as much freedom to post information as Facebook does, but it still will be a key resource in getting the word spread about Foodies & Movies.

This screenshot shows an example of tweets we will post about special events and seasonal movie showings! In this case, we are showing The Grinch, A Christmas Story, and Elf for the month of december.

Instagram

This screenshot shows what our instagram page looks like on a smartphone. We will post similar posts on our Instagram as we do on our Twitter and Facebook.

36

Appendix I

Home About

Menu Current Showings

Marketing Appendices- Websitehttp://robbymac513.wixsite.com/foodiesandmovies

37

Appendix JMarketing Appendices

T-ShirtsWe will be ordering 300 T-shirts total from a company called CustomInk. These T-shirts will cost $4.47 a shirt, which totals at $1,341. We will use these T-shirts as uniforms for all of our on-duty employees, and will be selling the rest of them in the front of the restaurant at $15 a piece. This makes us profit $10.53 per shirt.

MenusThe presentation of the menu is an important part of any restaurant, so we decided to order menu covers like the one in the picture below. We are ordering these from webstaurantstore.com. We will order 120 menus (4 per table) for a total of $294. We will print these menus on normal printer paper for free, and laminate the pages with the menu covers.

Storefront Sign (Exterior)We are buying our storefront sign from signsus.com for a total of $1,130. It will be made out of metal, and is expected to last 2 years until we will have to order another.

Drink CoastersWe are buying 1,000 drink coasters with our logo on them for a total of $394. We are ordering them from branders.com.

Merchandising

38

Appendix KMarketing Appendices- Interior Furniture

Pods

Four Person Pods

(20 Total)

Booths

American Tables & Seating QAS-42 42

Quantity Per Pod: 2$ Per Booth: $258.75$ Per Pod: $517.50

TV’s

LG- 65” Class (65” Diag.)- LED- 1080p- Smart- HDTV

Quantity Per Pod: 1$ Per TV: $699.99$ Per Pod: $699.99

$ For Each Pod

Booths: $517.50TV: $699.99

$1,217.5

$ Total

20 Total Pods ($1,217.5*20)

$24,350

Eight Person Pods

(8 Total)

Booths

American Tables & Seating AS-42T ½

Quantity Per Pod: 1$ Per Booth: $2896.80$ Per Pod: $2896.80

TV’s

LG- 65” Class (65” Diag.)- LED- 1080p- Smart- HDTV

Quantity Per Pod: 1$ Per TV: $699.99$ Per Pod: $699.99

$ For Each Pod

Booths: $2896.80TV: $699.99

$3,596.8

$ Total

8 Total Pods($3,596.8*8)

$28,775

Twelve Person Pods

(2 Total)

Booths

One of each of the booths above

$ Per QAS-42 42: $258.75$ Per AS-42T ½: $2896.80$ Per Pod: $3,155.55

TV’s

LG- 65” Class (65” Diag.)- LED- 1080p- Smart- HDTV

Quantity Per Pod: 1$ Per TV: $699.99$ Per Pod: $699.99

$ For Each Pod

Booths: $3,155.55TV: $699.99

$3,855.54

$ Total

2 Total Pods($3,855.54*2)

$7,712

39

Appendix L

Lavu Research ($59 per month)

Ease of Use:• Wireless order system• Accepts payments via credit card

swiper• Cloud based storage system• Lavu pilot app• iOS app that updates to improve

efficiency

Customization:• Customizable reports• Set job roles and pay rates of

employees• Comes with pre-programmed

kitchen display system• Editing capabilities for those who

are verified to make changes

Data Tracking:• Monitor inventory levels• Set alerts for supplies that are

running low• Create custom reports that track

sales according to the chosen variables

Reliability:• Free trial• 24/7 support• Relies on Wi-Fi for cloud

computing

Compatibility: • Only compatible with Apple

products

Toast Research ($100 per month)

Ease of Use:• Fast training and easy to learn set up• App that works on laptops, tablets, and

phones from anywhere• Wireless order system• Easy ticket display for cooks• Guests can easily track points and gift

card amounts

Customization:• Personalized POS system• Customizable table setup, menu setup,

and kitchen workflow• Quick-edit mode for those with

authority• Offers customizable CRM program• Customizable online ordering system

Data Tracking:• Identify best customers, average wait

time, and favorite items on the menu• Advanced labor reporting that tracks

employees productiveness• Tracks chef’s performance• Track performance of certain products• Email integrated in payment process

and track order history of certain customers

Reliability:• 24/7 customer service• Can operate in offline mode• Customer training process to help

employees• Free demo

Compatibility: • Compatible with Apple and Droid

products

TouchBistro Research ($129 per month)

Ease of Use:• Wireless order system• Menu item pictures and descriptions• Color coating for upsell items and

premium items• Allergy information

Customization:• Custom modifiers and pre-programmed

mods• Customize floor plan (Offers multi-

level and multi-room)• Customize the receipt with promotions,

events, or logo• Customize the menu with 3 different

views to choose from

Data Tracking:• Track clock-in or clock-out times• Track inventory levels• Dashboard of performance of restaurant

Reliability:• Free support• Free trial• Free tour of company

Compatibility: • Only compatible with Apple products

MIS AppendicesPOS System Research

40

Appendix MMIS Appendices

MIS Organizational Chart

41

Appendix N

At Foodies & Movies we offer a loyalty program to help keep customer retention rate high. Through our POS system Toast we can track how much each customer spends. Once a customer spends a certain amount of money they will receive points, which Toast can also record. If a customer spends $10 worth of food or movie sales then they receive 5 points. Once a customer then reaches 100 points total they get half off of their next movie ticket. If they reach 200 points, the movie is free. Lastly if they reach 400 points then they receive a free meal. Once a customer reaches 400 points the points will be reset, but the customer will still receive benefits. If a customer were to reach 400 points three times then both a meal and a movie will be free. We appreciate all of our customers that enter Foodies & Movies and want to reward them for making numerous memories with us.

Capterra, 2016

The table above shows the benefits of having CRM in place within your business. Our POS system Toast has a CRM system in it. Within that system we can track sales, points, etc. that helps us with our loyalty program. As shown above having a CRM can help keep customer retention, customer satisfaction, and sales revenue high. These are qualities we strive for at Foodies & Movies.

MIS AppendicesLoyalty Program

42

Appendix OOperational Appendices

Grant Reeves is our Chief Executive Officer because of his leadership and management skills, and also his long experience within the restaurant industry. Currently pursuing a management degree.

Justin Kelman is our Chief Financial Officer because of his skills with finance and accounting and is pursuing a accounting degree.

Robby MacAskill is our Chief Information Officer. He has a background with sales tracking in different companies and knows our POS system well.

Jake Lima is our Chief Operations Officer because of his knowledge in handling many different operations within the business. He is also pursuing his entrepreneurship degree.

Alexis Marino is our Chief Marketing Officer because of her different opportunities in Marketing and is currently pursuing the marketing degree.

Meet the Executive Staff Manager Qualifications

● Communicates well with all employees● Has the leadership skills to oversee and

motivate staff members to achieve the company’s goals

● Knows all aspects and operations of Foodies & Movies

Head Chef and Cooks● Always following health code and FDA

regulations.● Have at least 5 years experience in a full

service restaurant.● Work well with all managers and other

employees

Waiters/Waitresses● Ability to learn and adapt quickly● Always having exceptional customer

service as their number one priority ● Listen to the managers while always

having a positive attitude

Host/Hostesses

● Always being friendly and professional when greeting our guests

● Communicates well with other employees

● Listens to what the managers have to say

Staff Information and Qualifications

43

Appendix P

The table above explains how we will be paying our staff. All employees are included except for the executive staff. This is how we will start off pay for our first year. If we feel that adjustments need to be made then we will make those adjustments when needed. Also employees have a chance to have a pay increase as the above table is just a base rate for the employees.

Operational AppendicesEmployee Pay

44

Appendix QOperational Appendices

Employee Schedule

45

Appendix ROperational Appendices- Supplier Information

Description“Blackwing is one of North America's leading providers of Healthy Red Meats and Healthy Poultry Meats to consumers, retailers and food service industries. Since being established in 1996, Blackwing's vision has been to offer healthy organic and all-natural meats to health conscious American consumers.” (Blackwing, 2011).

“Located in the heart of Ohio’s Amish Country, Swanson produces and processes a truly all natural, antibiotic free chicken. Chickens are raised on Amish family farms and their diet consists of the highest quality vegetarian feed. Chickens have plenty of room to roar and are never ever given any additives or antibiotics.” (Swanson Meats, 2013).

Reason for Choosing Supplier● Reliable - Blackwing has

grown 20-40% a year for the past 6 years.

● Positive feedback - the company has an online reorder percentage of 72.94%, which means their products must be satisfactory to their customers.

● Strong presence in restaurant industry - Blackwing supplies over 3,600 restaurants, so they must have a great amount of experience and knowledge of the industry.

● Experienced - Swanson Meats services over 500 restaurants, and have been around for 60 years.

● Local - Swanson has an Amish farm located in Ohio, facilitating ordering processes and guaranteeing freshness.

● Quality at a fair price - Swanson offers very favorable prices, but also promises to provide the most quality poultry available, with no antibiotics or steroids.

“Assoluti provides the kitchen staples you need for an Italian menu with authentic flavor in every ingredient. These products are specially selected for their great value without compromising on taste.” (Performance Foodservice, 2016).

● Reliable - Assoluti has a guarantee to deliver the products on time.

● Customizable - The company offers 24/7 customer service with specialists that help meet the needs of their customer at any time.

● Authentic - Assoluti has been supplying a variety of authentic Italian ingredients that promise excellency.

46

Appendix SOperational Appendices- Supplier Information

Description“Whatever you may be looking for, from exclusive cheeses and oils, to the highest quality produce, we pride ourselves in providing our customers with exceptional quality, value, strong relationships and trust. We have facilities in Cleveland, Columbus and Dayton. We strive daily to deliver the best and settle for nothing less because we know our customers do the same for their customers. We take great pride in the products we offer, the team we employ and the state we serve.” (Premier Produce One, 2016).

“Heidelberg Distributing is a family owned and operated company that markets and delivers beer, wine, spirits and non-alcohol beverages to retailers in Ohio and Kentucky. Products on Heidelberg trucks come from local suppliers and from suppliers all over the U.S. and the world!” (Heidelberg Distributing, 2016).

Reason for Choosing Supplier● Very personable - Premier

ProduceOne is a specialized business that only supplies Ohio businesses. They promise to create a strong customer relationship, making the ordering process easier.

● Local - The company has multiple farms located in Ohio, so ordering will be faster and more reliable, which is necessary for produce products. Freshness is essential when it comes to produce.

● Reliable - Heidelberg has over 1,600 passionate associates to support their operations, and serve over 25,000 retailers in Ohio and Kentucky.

● Values - The company has very similar core values to our company, creating a family environment and focusing on integrity and communication.

● Local - Heidelberg distributes out of Cincinnati, Ohio, so the ordering process will be reliable and quick.

“Performance Foodservice is pleased to offer a delicious line of appetizers under its West Creek brand. These products arm operators with an arsenal of crunchy, flavorful, and diverse appetizers. West Creek appetizers are conveniently packaged and easy to store, and easily meet or exceed demanding standards to ensure repeated quality and consistency.” (Premier ProduceOne, 2016).

● Quality - West Creek brands focus on providing excellent ingredient quality for their customers.

● Variety - The company offers a variety of great tasting appetizers, which will be useful if we ever have to modify our menu.

● Pricing and Experience - West Creek offers exceptional pricing and has been servicing restaurants for over 20 years.

47

Appendix T

December 1, 2016-February 1, 2016The executive staff of Foodies & Movies will meet and finalize all plans that they have so they are prepared for the grand opening on December 1st, 2016.

Contact and finalize all deals with the suppliers and distributors so everything will be ready by grand opening. Start to determine the amount of employees we want to hire.

February 2, 2016-April 1, 2016

April 2, 2016-June 30, 2016

July 1, 2016-September 30, 2016

October 1, 2016-December 1, 2016

Complete all of the renovations needed for our restaurant. Complete all licensing and regulations as well that is needed for Foodies & Movies.

Start hiring process for all employees and have them complete their training by the September 30th date so they are well prepared for the December 1, 2016 opening. Finish all little details dealing with renovations, marketing plans according to the agenda, within the executive staff, and other operations that need to take place.

Complete all finishing touchups. Review marketing agenda and abide appropriately. Give all employees a week of final orientation before grand opening. Open on December 1st!

December 1, 2016-June 1, 2016

June 1, 2016-December 30, 2017

Monitor all progress in the first six months and make changes needed accordingly. Do our six month review with our employees and give them feedback. On June 1st have our six month anniversary by holding our first charity event.

Review different marketing strategies that we could use in the future if needed. Ask the employees for feedback for us as an executive staff to improve. On December 1, 2017 have our one year anniversary party. Have our yearly review in December with the employees and then have our second semi-annual charity event.

Operational Appendices- Implementation TimetableListed below is Foodies & Movies Implementation timetable which is all the processes and thought processes we did before our grand opening on December 1st. It will also list what we will do for a year after our grand opening and the changes we will make.

48

Appendix USocial Responsibility is an obligation a company decides they want to take depending on what they believe in. Foodies & Movies decided to take on this obligation of Social Responsibility because we believe in helping not only the employees and customers of our restaurant, but the communities surrounding us as well. We understand that there is different social problems that arise and we want to be a business that will help solve these problems. Listed below is the four stages of Social Responsibility and what Foodies & Movies plans on doing with each stage.

Stage 1: Financial Viability: Ensure all transactions are being monitored and noprivacy issues arise with the customers. Also paying our employees over minimum wage.

Stage 2: Compliance with Legal and regulatory requirements: Foodies & Movies will have proper licensing for its movies and will prohibit customers from recording the movie while watching, while also following all the fda regulations.

Stage 3: Ethics, principles, and values: Offer hardworking deserving employees an undisclosed amount bonus for the holiday season

Stage 4: Philanthropic activities: Foodies & Movies has a semi annual fundraiser to help raise money for charities in greater Cleveland.

This graph shows how important corporate social responsibility is to the employees working for corporations. It’s important to value the society’s and the employees opinions when starting any new business.

Foodies & Movies strongly believes that giving back to the community is important for building a healthy relationship within our community and surrounding communities. Foodies & Movies will host events twice per year that will be dedicated to giving back to the community. Our first event will be June 1st, 2017, sixth months after we’ve opened for business. The event will allow kids from the surrounding hospitals to come and enjoy free food and kids movies all day long. Our second event will be held December 1st on Foodies & Movies one year anniversary. This event encourages customers to bring holiday gifts to donate to kids that live in poverty. Customers that donate will receive a coupon for one free movie and one free entree that can be used at a later date. On top of our semi annual events, Foodies & Movies is also mitted to donating all of our leftover food to the Cleveland foodbank.

Community Involvement

Operational Appendices- Social Responsibility

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Appendix VBusiness Description Appendices

Business Canvas Model

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Appendix WBusiness Description Appendices

SWOT Analysis

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Appendix X Industry Analysis Appendices

Movie theaters have an interesting cost structure because they don’t buy movies to show and make large profits on them. Movie theaters negotiate deals with movie studios where the movie studio gives theaters movies and in return movie theaters give the studios a percentage of gross ticket sales. The movie studios get a larger percentage of ticket sales when a movie debuts and as the weeks go on that percentage shifts in favor of the theaters. The problem is that as the weeks go on ticket sales fall as the majority of people see a films shortly after their release (Zipin, 2015). When a big blockbuster like Titanic for example comes out, movie theaters can make more money as the weeks go on a film still draws large crowds.      

Figure 8 shows that movie theaters make only 12.9% profit off of ticket sales and concession sales. The purchases of 39 % is comprised of mainly the portion of ticket sales that are sent off to the movie studios.  

Movie Theater Cost Structure

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Appendix Y

While researching the other restaurants within the radius we chose to open our restaurant concept, we found that there are four main restaurants who are all very highly rated nation-wide. When breaking down the market share within that area, excluding fast-casual restaurants due to their irrelevancy, we found out that we would have approximately a 18% market share within our radius. The four other restaurants (bd’S Mongolian BBQ, Bodega Restaurant and Lounge, Pacific East Japanese Restaurant, and Tree Country Bistro) have very different menus from ours as well as their other competitors.

List of Restaurants and their Market Share:

● 25% Pacific East Japanese Restaurant (4.4)

- An unassuming option where sushi & cooked Japanese entrees share menu space with Malaysian cuisine.

● 22% bd’S Mongolian Grill (4.3) - Casual chain offering create-your-own stir-fry bowls, plus a salad bar & an all-you-can-eat option.

● 19% High Thai’d Café (4.0) - Unassuming eatery serving curries, noodles & other Thai standards in a simply appointed space.

● 18% Foodies & Movies - Casual dining experience offering quality food in addition to newly released movies in an experience like no other.

● 16% Bodega Restaurant and Lounge (3.8) - Choice for tapas & entrees, plus cocktails & wines in slick digs, with live music on weekends.

Market Share

Industry Analysis Appendices

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Appendix ZPrimary Research Survey

Source: SurveyMonkey.com

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Appendix AALocation of Foodies & Movies

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1856 Coventry Rd,Cleveland Heights, Ohio, 44118

Appendix ABPro Forma Financial Statements

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Appendix ACPro Forma Financial Statements

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