OUT OF THE BOX

OUT OF THE BOX Home of Art & Music

 

TABLE OF CONTENTS

EXCUTIVE SUMMARY Overview Mission Vision

GENERAL INFORMATION ObjectivesName of the company Location Type of business ownership Hours of operation

CONCEPT PILLARS Music Art Food & Beverage Layout Design & decoration Good service Good atmosphere Human resourcesInventory

MARKET SUMMARYThe marketing environment Trading area analysis Demographics – target market Competitor analysis Physical boundaries

MARKETING IMPLIMENTATION & STARTEGY The strategy Implementation Promotion Promotional materials SWOT analysis Strength WeaknessesOpportunitiesThreats

CONCLUTION ATTACHMENT Tourist & Visitor SpendingMarketing DataMarket Penetration of Beverage ConsumptionBeverage Consumption StatisticsPrice QuotesFinancialsStart-up CostsBalance SheetIncome StatementCash Flow StatementFinancial NotesResume of Owner/s

EXCUTIVE SUMMARY

Overview

Bistro Restaurant –bar Lounge, live music venue & performance space all in one, a classic rustic yet modern twist art place cave tucked away from the busy streets of Abu Dhabi. Out of the box is a place of conviviality, a second home for many who celebrate life with friends around good food, drink, performance & music. We intend to secure our market share by offering an innovative modern yet simple restaurant & bar concept with meeting facilities and a unique way of delivering musical entertainment

Mission To provide first-class, live entertainment by using established musicians and meshing them with delicious food, mouthwatering desserts, gourmet coffee and espresso, and craft beer and wine. Vision To feed the soul, mind & body with love-passion and peace everywhere we appear

  

GENERAL INFORMATION Objectives •The main business objectives for “Out Of The Box” bistro restaurant & bar are:• To launch the bistro bar with a highly publicized 'grand opening' event • To maintain tight control of costs, operations and cash flow through attentive management and automated computer control.• Strict Control of overhead at all times without exception:• To maintain a food cost below 35% of food revenue.• To maintain a total beverage cost below 18% of beverage revenue.• To increase annual sales by at least 10% in the year 2 and year 3• Provide exceptional service that leaves an impression on our customers.• To offer a consistent level of quality, entertainment, products and services• To effectively manage our internal finances and cash flow to increase profit.

Location

Location one of the main success factor to any business We are looking to be in new area where expats and up level people living Al Reem island the prime location for this project as first choice The new city center near the ADNEC exhibition center or between the bridges second choice Yas Isalnd is the entertainment area will be the third choice Old down town Hamdan-Salam-Corniche the fourth choice

Type of Business Ownership

 Out of the box business will be a partnership. The owners will be Somar & Samer. Samer have been in this industry for the past 16 years in a management capacity. Please see the attached resume/s for our qualifications.

 

Hours of Operation

 Open weekly Sunday to Saturday 12:00 pm -2:30 am

CONCEPT PILLARS

Art –music place serving delicious food & beverage in semi fine dining style where people feel the luxury of service but yet feel comfortable to be themselves like at home

Music Residential live solo singer, duo or trio band Weekly guest guitarist – saxophone- singer- pianist Monthly event as open Mic gathering talented residential- local gifted persons to appear in the venue

 Art Walls & stands of the venue will be transformed every 15 - 30 days to a gallery show roomWhere artists, painters, scapulars, hand crafted people can show and offer the work in the venue

 

Food & beverage The main pillar that the business depends on it to makes it a liveOur food will be fresh made to order. Will use only the freshest and finest ingredients available all the time Limited menu but well international contemporary cuisine- has American where Jazz& blues, Mediterranean where Arabic has the infuse & Fars east where everything so tiny but has the sharpens of test and moods  Our exceptional signature dishes will become a staple of the venue. Names will be related to Yielding ties with music and Arts will give them popular names, such as; Stairway to Freebird , The Sinatra Ina Gadda Da Veggie, Picasso ( Chicago steak) and Another One Bites the ClubThis apply to the signature cocktails which will be created from our bar mixology Our drinks second to none will be From the beer to finest sophisticated cocktail drink will have Macular cocktails, ice balls as rocks, dry ice , smoky drinks and more will extinguish us from another bar exist in the city

Layout Will depend on the building and size of the unite which should be not less than 400 sqm Capacity in estimated size will be fit for a100 guests

Design & Deco Will be our unique simplicity approach to people, we are promoting ourselves as art-music venue, so our design will depend on art every where Lights, chairs, tables, glassware, silverware sofas, wall, bar, entrance…..etc Our venue 3 main colors Will be the basic foundation, and from those colors will have sub colors all over the areas matching the concept However the colors can’t be decided till we know the size of venue, highest of ceiling the flow of natural lights inside the place, window sizes if exist  Mainly the colors of the place will depend on the psychology part Mainly will go for  

1-DARK & 2-WARM COLORSWarm colors, dark colors are the opposite: they “advance” towards the eye. You can use them to make big rooms feel cozy, but be warned that dark colors can get oppressive quickly.3-SUBTLE COLORSSubtle colors (think pastels) are more relaxing and encourage lingering.ORANGE: (for some part of walls )An appetite stimulant, warm, fun, vibrant, darker shades can be soothing, lighter shades are loud and energetic, earthy and autumnal.BROWN: (furniture & bar)Brown is a neutral color that tends to be calming. Darker browns are more opulent and masculine, lighter browns are warmer and feminine.GREEN (plants)Green is calm and soothing and earthy and can be warming or cooling, depending on the shade.PURPLE (touches everywhere)Rich, luxurious and decadent, Calming, An appetite suppressorRED (touches)Another one of those colors that have a number of different meanings, Red is an appetite stimulant. It can be warm, inviting, cozy, passionate and exciting. Very flexible, though almost always bold

Good Service

 Customer service will be the most important aspect of our business. After all, customers can go to the competition and get food & beverage if they really wanted to. However, we feel that this is an area that needs some very special attention.First class service is required in order to achieve and maintain a high level of quality. The Out of Box will treat each and every customer with the respect and attention they deserve. When out for a night on the town, customers want that something extra for their hard-earned dirham, at Out the Box, we intend to see that they get it.We will have roughly one service staff for every 10 customers. It is our belief that training of all personnel as well as, supervision is essential to success. We intend to personally train staff to provide high quality customer service. 

Good AtmosphereExtreme consideration will be given to making the décor of our bistro bar fit in with the standards of any top-notch business. Service staff will be dressed in professional attire that will clearly identify them to the customer. The venue itself will be clean at all times. As well, periodic bathroom checks will be made throughout the day and night. When a customer walks away from The Out of The Box, we want the feeling to be: “What an excellent time I had!” “We have to get our friends and go back!” “That lady singer was amazing!” Inventory

 Inventory issues in any business are extremely important. For our venue, a bulk inventory list will include all products used in the food preparation and beverage areas. An update of all items that are needed will be done on weekly bases before purchase orders are placed. Stock will be well organized within the various storage areas and will be identifiable to all staff. 

Human Resources Since we intend to pay strict attention to customer service, our club staff is a very important consideration. One of the first steps will be to develop job descriptions for each position that will include a detailed description of all the duties that person will be expected to perform and how that person should act towards a customer. Once a person is hired, a job description will be provided and enforced so there will be no misunderstandings related to job duties. Each employee will be hired on a probationary period of one month. After the one-month period, if suitable, that employee will be hired on a more permanent basis. An orientation session will be given to all new employees that will serve as an introduction to the new job and to the venue .  Hospitality experts will provide further customer service training once the probationary period is over. We have plans to encourage our staff by putting in place rewards and bonuses.

MARKET SUMMARY

 The Marketing Environment

 If you were to ask most people what is meant by marketing, the odds are that they would probably answer with either “selling” or “advertising”. Advertising and selling however, are both only a small part of marketing. In today’s ever-changing marketing environment, as restaurant-bar owner’s we must keep up with new opportunities and the latest trends in order to survive. A detailed analysis is an important way to keep up with changes in the market place. The intent will be to maintain customers, encourage repeat customers and to gain new customers with the end goal of increasing sales and in turn increasing profits.

Trading Area Analysis

 (Probably one of the most important aspects of marketing – who will come to (Out of the Box) The idea of hosting an event every week only it came from the poor performance of the nightlife in Abu DhabiThe mass of Abu Dhabi is very unique and strange in terms of outgoing night time, and because of that it came the idea to make this mass never boring when they will come to our place and having every single week a different performance of entertainers, singers, musicians, Artists works  

 

Demographics – Target Market Getting to know as much as possible about the people in the city it’s very important. After all, this is who our customers will be. The population and age groups of the Abu Dhabi vary from area to another  For our business we will be targeting the 25 to mid 50s age group. Our research indicates the following as our target customers: Etihad cabin crew& pilots Young Professionals: Since we will be directly connected to Etihad airline, we must appeal to single adults and young couples. Whether it is a group of friends or a couple out to have good time, these people need a place to eat/drink and relax in their time off. These customers will range in age from 22 to 40 creating a good impact in image of the place (Young good looking ladies it’s as essential to have in this city business build) Companies’ owners – small / medium sizes one in Abu Dhabi: These customers will range in age from 30’s to 50’s and we hope to appeal to this age group by creating an upbeat stimulating environment.

 Tourists and Business Travelers: More and more business travelers and tourists are finding themselves in Abu Dhabi area every year as is made evident by the increased demand and subsequent expansion of the city. We plan to reach these people through direct marketing to local hotel patrons. As our relationships grow with the local hotels, so too will the word of mouth recommendations from the hotel staff. Our future plans are to publish a simple website in order to create awareness of our venue to a worldwide audience. 

 Competitor Analysis We will do some research to try and determine to find out who our competition are going to be. as soon as we finalize our venue location and the size of it The following is a list of the steps we will take to find out about our competition:  

Visit each competitorSee how much business they are getting,What are their prices in comparison to ours?What is the quality of their business?Review their menusPromotional materialsTalk with their suppliersConsider hiring their previous employeesTalk to their customers

 We found that the benefits of completing the above methods are: • Identify their strong points such as an exceptional selling point and adapt them to our own• Identify their weak points and capitalize on them• Identify the opportunities that our competitor may have capitalized on that we have not and change it• Identify the opportunities that our Nightclub has capitalized on to bring in new customers that our competitors have not We believe that customers understand the concept of quality food and service and are willing to pay for it when it is given effectively.  

Physical Boundaries Since the space for our new venue will be leased, the size is something that cannot readily be changed. However, everything within the walls of our business can. We want to give the customer the perception that when they walk through that door they are getting something extra for their money. We intend to create and deliver that image by providing an atmosphere that enhances that something extra through the image, decor, operating style, staffing and quality of service, pricing, promotion of the products, and entertainers parts, etc.  For our venue we need leasing a minimum of 400 to 500 square meters building, which will also house the company's business office. The dinning and bar area will accommodate 100 people and we will have our renovation plans approved from municipal council to meet fire and safety regulations. With Abu Dhabi growing population, the variety of The Out of the Box will create mass appeal for all of its customers. The facility will be equipped with state-of-the-art in all aspects. It will serve the need for a true art venue in Abu Dhabi. The general appearance will be clean, open and pleasing to the customer. The demographics are very favorable with minimal competition from other venues.

Marketing Strategy & Implementation

 The Strategy Our strategy is based on serving our target market extraordinarily well. The tourist and the business traveler, the local restaurants/bar crowd, as well as groups going out together, can all enjoy The Out of the Box. The marketing strategy is essential to the main strategy:  Emphasize exceptional service. Create an awareness of Out of the Box features. Focus on our target markets.  We must charge appropriately for the high-end, high-quality service and food that we offer. Our revenue structure has to match our cost structure. The wages we pay and the revenue we charge must balance the training we provide, to assure superior quality and service.  Part of the superior experience we offer is the simplicity of the menu items. While being unique for the most part, they are relatively inexpensive and easy to prepare with limited kitchen facilities.

All menu items will be moderately priced. We estimate an average expenditure of $15.50 for beverages and $8.75 for those who choose to take advantage of our finger-food menu. Our target customer spends more than the industry average for moderately priced establishments. This is due to our unique atmosphere that encourages longer stays and more spending.  In order to place emphasis on exceptional service, our main tactics are to provide periodic service training, employee recognition and have a higher employee to customer ratio. Aside from the initial orientation session, our specific programs for training include monthly employee/management meetings and training, the sharing of success stories among employees and management. Our specific employee recognition programs include employee of the month and service excellence recognition awards of specific employees attached to advertising. To achieve maximum customer service we have separate beverage servers and bussing personnel.

Our second strategy is emphasizing entertainment. The tactics are interactive entertainment, constant sensory appeal and unique event viewing. Our specific programs for interactive entertainment and constant sensory appeal are frequent music and revealing talents program show on monthly bases – resident’s singers and clear structured theme nights, all hosted and planned through the year.As example Sunday’s: oldies music back to 70’-80’s Melos-slow-soft songs performed live our resident entertainers Monday’s: Jazz & blues night ( can be hosted with sub saxophone player on weekly bases ) Tuesday: Arabic oldies ( Tarab – rahbaniat – Kudod )..etc resident entertainers and guests singers Wednesday’s: Spanish guitarist show Thursday: Piano show – classic and modern plays Fridays: talented bands, singers, duo’s show  More specific details plan will be reveal as soon as the concept are agreed. 

Our customer service is our most important asset. We will achieve our customer service goal by ongoing training, maintenance and attention to detail. By authorizing service employees to solve problems without making a customer wait for management consultation, we create a win/win situation for the customer and the business. Continuous and never-ending improvement is the order of the day through our regular training sessions and meetings. Since value is equal to service rendered minus the price charged it is crucial to go beyond the mere serving of beverages and food in a room full of lights and sound; we have to create a long-lasting impression.  • Emphasize exceptional service -- we MUST prove that exceptional service is still available and should be expected as part of their experience at The Out of the Box venue . • Emphasize an entertaining experience -- by assuring that all customers will enjoy themselves, we would be securing market share through repeat business. • Focus on target markets -- our theme and music has been selected based on target market segments.  We can't just market and sell another venue. We must actually deliver on our promise of quality, service and a unique customer experience.   

Implementation Product planning is an essential ingredient of a marketing strategy. The product is not just the beverages or food that is served, but everything that the customer is exposed to when they visit. It is the service they receive, the ambience and their fellow patrons. Several things or occurrences may affect a product or service in an establishment. An employee may be having a bad day and not provide the proper courteous service to a customer or the food supplier may be late. All sorts of things happen in the running of a business. However, proper organization and control should for the most part handle these situations with ease. As establishment owners, we need to be prepared and flexible, so that a seemingly crisis situation will work itself out. A set of policies and guidelines will be developed to include everything from the service a customer is to receive to what to do with an irate customer. This will be very helpful for all staff members and will ensure quality service. Service staff plays an important role in the marketing. They can exert influence over buying behavior by making appropriate suggestions to customers. The key to the development of these approaches is an understanding of the adaptations service staff needs to make in dealing with different situations/customers.

Promotion This section involves both the promotion and distribution tactics that we will follow for The Out of the Box Bistro - Bar. We have conducted specific research in order to get the most for our advertising Dirham. Precise information has been complied to outline the correct marketing method, schedule, and costs to advertise.   Our Promotional Strategy is to brand the place  Promotional MaterialsInternally branded All general items has to be branded in our restaurant/bar logo Coasters –match boxes- tissues – stirrers- bar mats..ect Dinner napkin – place mats – plates  Externally branded Websites advertise (specialist in hospitality) such as Time out – what’s On – Ahlan Advertisement in magazines Abu Dhabi week ..etc Face book – instagram –twitter applicationsBanners & posters – flyers and teaser cards  All the above will be in a clear strategic breakdown and sequences’ of implementation to create the brand awareness    

Strengths, Weaknesses, Opportunities & Threats ( SWOT)

 • Strengths

 • The Out of the Box will have high caliber staff with an excellent management team. We

will have the necessary capital, unique marketing niche and creative teamwork approach to problem solving to ensure success. The quality of the products we serve and the service we provide will be beyond compare by any of the closest competitors. The prices of our products are within a reasonable area so as not to discourage anyone from enjoying the wonderful atmosphere of our venue. We will be aware of our competitor’s good and bad points and we have developed a plan of attack to increase customer traffic to our place of business.

 • Weaknesses • Any good marketing plan is an estimate and cannot always be one hundred percent

effective. Having said this, it is also very important to point out that “if you fail to plan - you are planning on failure”. Some of the more obvious weaknesses of our business will be the learning curve of staff, operating a business in an area of established competition, possibility of a price war with competitors and, unknown variables that can be the downfall of any business.

Opportunities and Threats

 Some problems will continue to plague small business owners. These include government regulations, minimum wage laws, and shortages in qualified labor. It will become increasingly harder to find and retain high quality workers because of a shrinking labor pool and under-qualified workers. These problems will present future small establishment owners with difficult challenges, such as whether to raise the minimum wage to retain trained help, or whether to increase benefits. To date, 37 percent of restaurants /bars owners have had to increase wages to remain competitive, and 15 percent have increased benefits trying to retain experienced workers.  However, the best opportunity for owners to secure their market share is to provide quality, efficient, friendly service at a competitive price. The opportunity is there, but the challenge will be great. 

CONCLUSION  A marketing plan is essential for all businesses. Marketing, in its simplest form, is getting out into your marketplace, observing what is taking place and making decisions based on what you have observed. A marketing plan basically puts all the information you have gathered into a readable format.  The steps we have followed are: •Check out the Competition - Develop a competition profile.•Determine who our customers are•Determine our Competitive Edge - Find out what makes us stand out from our competition•Product Price Points•Determine our Annual Revenue•Employ the Good Neighbor Strategy•Developed the Marketing Expense Budget The success of the marketing plan depends on the efforts of all involved in the Establishment.

Demographic IndicatorsPopulation (mid 2013 estimates)2.45 million (Abu Dhabi Region: 1.50 million, Al Ain Region: 0.65 million and the Western Region: 0.30 million)UAE national population: 495,368Non-nationals: 1,957,728Urban Population: 1,467,869Rural Population: 985,227Average Annual Population Growth Rate (2005 - 2013): 7.5%

Employment and Job MarketLabor force (2012):•Percentage of the population in the labor force (15 years and above): 83.3%•Percentage of female in the labor force: 15.9%Unemployment rate (2012):•Unemployment in total labor force: 4.1%

Over view of the good potential in business

Over view of the growth in Abu Dhabi hospitality & Tourist sector

Over view of the good potential in business

Variety of cuisines Number of estimated venues & options can indicate the huge demand to this line of business

Numbers to remember

Total Size : 350 sqm- 3500 Feet Capacity : 90 seatsRenovation per sqm : 2000 AEDYearly Rent per sqm : 2500 AEDCost of Furniture & equipments per sqm : 2725 AED Number of employees : 21 Period of serving : lunch & Dinner – 12 hrs per day

Low potential profit of first 3 years : AED 4,457,635

Normal potential profit of first 3 years : AED 8,601,916

Out Of The Box Opening cost by categories the graphic design it show 3 parts of cost need it to open this business A- Building & Renovation B- Furniture & Equipments C- Pre opening cost

A- Building & Renovation

B- Furniture & Equipments

B- Furniture & Equipments

C- Pre opening cost

Total startup cost to open this business

The Bad scenario of profit In first 3 years

Basic breakdown of number of guests and average spend on food & beverage by days – lunch and dinner through 3 months soft opening and 9 months running normal business

Full year projection revenue

Main fixed expenses share of total monthly & yearly expenses

Full cash in – out / monthly profit & lost breakdown

Income of 3 years business –the worse scenario

The realistic and normal scenario expected from this business

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