By: Jordan Bernardo

Kathleen McEntire Brittany Spearman

Katie Weber

A PIANO BAR & CIGAR LOUNGE

937 N. Rush St. Chicago, IL

Katherine Weber Kathleen McEntire Jordan Bernardo Britney Spearman

Company and Culture

Company

Sikar is a top rated cigar lounge and bar. We are located in the Gold Coast area of Chicago. We offer in house branded cigars, premium liquor, and live entertainment, in a upscale and relaxed atmosphere. Sikar is a destination stop for anyone who just wants to wind down and let the stress of life slip away to business associates discussing important matters over a drink and cigar.

Culture Sikar is committed to serving your every need

and desire to help you be comfortable and relax. Want a little entertainment? local and big names bands play on our stage every week. Wife wont let you smoke around the kids? Try one of our premium brand cigars. Feigning for a drink? Our friendly, attentive waitresses will bring you an ice cold beer or have the bartender whip you up a mixed drink. Can't find a parking spot? Take advantage of our valet service. Our staff prides itself on knowing exactly what you want before you ask, to make a comforting environment for you.

Customers

The Sikar customer is one who enjoys winding down at the end of their day to a nice cigar and a drink or two while listening to a great selection of jazz and blues bands. Our customers are 21+, College Educated, mostly Caucasian males. Middle class to Upper Class. Make around 50k a year. lives in the downtown or surrounded North Chicago area. Most take public transportation or drive luxury cars. All religions.

Customer Profile: Name - Peter Duram. Age - 34. Occupation - Owns his own PR Company, makes 100k. Went to UIC for undergrad. Lives in downtown Chicago off 18th street in a condo with his wife Angela. Has 5 year old twin daughters. Drives a silver 2010 Audi. Enjoys golfing, going to Bears and Bulls Games, hanging out with his friends as Sikar, and traveling with his family. He is of Catholic religion.

Competition -Iwan Rise and Company- 19 South Wabash Avenue, Chicago (cigar shop) -Jack Shwartz Importer- 141 West Jackson Blvd. Chicago, IL 60604 (cigar shop) -Hubbard State Cigar Shop- 6 West Hubbard St Chicago Il (cigar shop) -Faith and Whisky 1500 West Fullerton (bar) -Kingston Mines 2548 North Halsted (blues bar) Conclusion: After doing research on our competitors in

the city we have come to the conclusion that we offer our customers more than the average bar or cigar shop. Sikar is competing with two types of businesses: cigar shops and local bars. In order for Sikar to compete with local bars and cigar shops it must offer more to the customer. Our cigar lounge and bar will be set up to make the customers feel comfortable, homey, and safe. It will have more than the over crowded loud drunken bar feel to it. Sikar’s cigar shop/lounge is more than the typical cigar shop due to exclusive membership we offer our customers, and monthly specials that come with it. Along with our top of the line shop we have a classy jazz/blues bar with a full stage and two bars offering top of the line music and unbeatable drink specials. Sikar is the ultimate stop when it comes to classy entertainment.

Mission Statement Sikar is a premium bar and cigar shop with a modern and sophisticated environment that allows our customers to express their love and passion for live jazz/blues music over a premium cigar and tasty alcoholic beverage of their choice. Taking the ordinary feel of a local bar and giving it the class and style desired from the highest-class customers. Making them feel comfortable and luxurious at the same time. Vision

To satisfy those customers who desire nothing but the best when it comes to mature adult entertainment. A place that allows business and pleasure under one roof.

SWOT

Competition: Threats -There are other cigar shops that offer customers alcoholic beverages. -Other well known bars in the city such as Kingston Mines have loyal crowed and weekly following due to there long years in the business. Opportunities -We will offer our customers more than the average cigar shop/ lounge with our premium memberships. - Not only are we a cigar shop and lounge, but also we have a full bar with a stage and two bars to serve our customers. Economics: Threats - Health risks about smoking and drinking is extremely well known and nationally promoted which may affect sales. -Through out the years smoking bans have become extremely popular in many states. Opportunities -Cigars is a very social activity allowing Sikar to merge with surrounding male oriented groups/associations such as golf clubs, gyms etc. -Our membership will give us a steady income every month and guarantee our customers to come into the shop which will likely higher our sales.

Technology: Threats -Sikar is a respectable cigar shop in a sense kind of old fashion now a days there are many new ways to smoke tobacco it could effect sales. - Social media will allow our competitors to promote themselves faster and to more people than they ever could before. Opportunities -We can step up our social media and start promoting our events and specials online faster than ever. -We can please our customers 24/7 keeping in touch with them threw facebook, myspace, and twitter. Society: Threats -Today’s society is well informed about smoking and drinking hazards, which could ultimately affect business. -The economy is currently suffering which tightens everyone’s budget effecting sales. Opportunities -Today’s society kids are starting to smoke at a younger age everyday. - Smoking tobacco has been band in most bars this will help our exclusiveness giving our society somewhere safe to smoke.

Customer Threats -You must be over 18 to smoke tobacco legally and you must be over 21 to drink alcohol legally this limits our clientele - If we aren’t extremely careful about whom we let in we could get caught up in a terrible lawsuit that could end our business. Opportunities - The customers we are trying to fill our bar/lounge with is considered upper class making a good living with extra money to spend on fun activities such as our bar/lounge. -Our customers can be self-promoters brining business associates in for a meeting then hopefully having them become regulars. Product mix Threats -If our membership sales aren’t as projected we will lose a huge income source. - Our products are only for adults 18 and older and 21 and older this limits who we can market our sales too. Opportunities -Alcohol is are largest source of income allowing our other sales to be extra source of income. -Our memberships that we offer will be a steady source of income

Distribution Threats -It will be costly for us to order certain products from around the world and different distributors from different countries. - Opportunities -We will not have to send products out everything that we are selling to our customers will be in store sales. Management Structure Threats -Having fewer employees may make it harder to fill certain jobs. -

Strategy Sikar will provide an exclusive high profile jazz/blues

bar cigar shop and lounge while creating a modern tasteful environment for our classy tasteful customers. This will allow our customers be in nice casual clothes or business attire and not have to fear the over crowded dirty typical blues bar or smelly cigar shop. We stride to serve the highest-class customers. Sikar is far from the typical downtown nightclub or college pub. It is a solid medium between both tending to a variety of customers. Our customers will have the best variety in both premium alcohol and tobacco shipped from all around the world.

Location Fact List Store Location: 937 N. Rush St, Chicago, IL 60611

Cross Streets: N Rush St and E Walton Pl

Neighborhood: Gold Coast

Total square footage: 1,795 sq ft

Shape of commercial space: Square

Entrances/Exits: Front door and back exit

Windows: N/A

Monthly Rent: $8,000.00/ mo.

Terms of Lease: Lessee agrees to pay as rent for Premises the total sum of $ 96,000.00(thousand hundred dollars and cents). This sum will be paid without demand in twelve (12) equal monthly installments of $ 8,000.00 (dollars and cents) after any applicable prorated rent. The monthly rent is due in advance on or before the first day of each month during the lease term.

Common area fees: Fixed CAM fee paid quarterly-- Including extensive interior and exterior maintenance and repairs.

Security deposit: 2 mo. Rent= $16,000.00

Capacity: 175 people

Expenses incurred by lessee: Heat, water, taxes.

Allowable renovations: N/A

Landlord obligation/commitment for renovation: N/A

A/C and Heating: Central

Ambiance

We encourage our customers to be comfortable, and to

lounge like its their own home. Enjoy soothing, local

talent in an atmosphere that appreciates it. We love to

accommodate large parties with our oversized round

booths, lounge couches, and spacey table tops for card

games. Sikar implements a unique, retro interior aesthetic

to go with the eccentric talent and clientele it attracts.

It is not your typical bar!

Visual Concept

Seating

Barstools and chairs

Lounge Sofa Circular Booth Lounge Chair

Lounge Sectional Sofa

Visual Concept

Lighting and Dining

Dining Square Table Coffee Table Dining Round Table

Visualizing the Bar

Glassware

Mixed/Rocks

Beer Martini

Wine Shot

champagne Candleholder

Carafe

Counter Tops, Flooring and Color

Concept

Counter Top Flooring

Apple Red Ink Black Egyptian Gold

Cigar Accessory Shop

Ashtrays

Lighters

Travel Humidor

Cigar Cutter

Sikar provides on sight personal humidor lockers for a reasonable mo/yr rental fee.

Artwork

Famous musicians will be featured in photographs throughout Sikar.

Floor plan 1st floor

Floor plan 2nd floor

Merchandise: Cigars

Sikar recognizes the two fundamental components of a good cigar:

1. Quality of tobacco 2. Construction of cigar

•Sikar is committed to selling and caring the finest quality cigars. All cigars are pre-inspected before sales. •The cigars in stock by Sikar have been tested by the staff who are knowledgeable about the products. •Our tasters are always out exploring new blends of cigars that will fill the cases of Sikar. Sikar has and will continue to only sell fair trade cigars.

Merchandise: Accessories

A good cigar is nothing if it is stored poorly.

Sikar only provides the finest cigars and the proper accessories to suit your every smoking needs at home as well as on the go. •Humidors •Cutters •Ash Trays •Carrying cases; variety of materials •Lighters

Memberships Available

Monthly: $95 20% off all accessories 10% off all box purchases 10% off all tobacco products Exclusive tastings & Events Gift upon enrollment (first time only)

Annual: $850 20% off all accessories 10% off all box purchases 10% off all tobacco products Exclusive tastings & Events Gift upon enrollment (first time only) ½ space rental: Mondays Personal humidor with name plate – key & lock Limited number of annual memberships

Financials

Financials

Management Style

Democratic Style: encourages participation and suggestions. The orders are not simply transmitted by managers, but rather they delegate and entrust their subordinates with work responsibilities and tasks. Managers become connecting links between their employees and top management. Furthermore, managers put efforts toward creating acceptable work conditions for their subordinates. This will motivate individual effort and teamwork.

General Manager/Owner

Assistant Manager/Keyholder

Floor Associates

Purchase Merchandise Inventory Greet Customers

Financials/

Payroll

Evaluates Employee Performance

Provide Services

Accounting Training Program Sells Merchandise

Motivate Staff Hires Incoming Staff Builds Relationship with Clientele

Marketing/

Promotions

Creates Schedule Maintain Facility Expectations

Oversee All Store Functions

Motivate Staff Stocking the Floor with Merchandise

Marketing/

Promotions

Sikar will mix management

styles to create a pleasant

working environment. We

continue to value our

employee’s opinions and will

balance it with suitable

delegation and direction.

Sikar believes in praising and

acknowledging employees

when deserved to promote

both individual and team

growth.

Ethics

Sikar provides equal opportunity in all areas of employment and does not discriminate against any individual regarding

sex, race, religion, age, disability, sexual orientation or other protected classes under federal, state or local law. All

employment decisions are based on an employee’s ability, quality of work, attitude, and the needs of the establishment.

We have established these guidelines with the intent to provide a comfortable and accepting environment for all

employees at Sikar. We shall treat our clientele with the same expectations.

Loss Prevention

A full-floor camera and alarm system has been installed.

A manager or employee will always be present on the floor during hours of operation.

Only reliable individuals will be made key holders.

Nightly inventory will be taken.

Employees are not allowed to drink on premise on their current day of shift.

Merchandise and liquor stock will always be locked up and active manager will provide entrance when stocking.

Door security will be present during all hours of operation.

Personal lockers are provided for employees.

Human Resources Dress Code: Proper grooming is a very essential part of your appearance. Employees should be in

all black attire with close toed black leather shoes. No torn apparel. No cologne or perfume. Your

personal appearance is a direct reflection of our establishment. Please take pride in it.

Drug/Alcohol Policy: The consumption of any form of alcohol or the use of

any illegal drug by an employee prior, during and after their shift is

prohibited. There are no “Shift Drinks.”

Tip Reporting: It is your responsibility to report all of your tips. Sikar will provide

a system in which you will report direct and indirect tips received. Proper

record keeping is essential in order to protect yourself and Sikar.

Employee Discount: Employees can purchase wine and liquor at wholesale

price for take home use. Please notify manager on duty.

Human Resources Continued… Benefits: Workers Compensation- Worker’s Compensation insurance is

provided for all employees and Managers free of charge. It provides payment of all medical bills and a percentage of an employee’s lost reported wages in the event that an employee is injured during operation hours.

Insurance- Full time employees after three months from hire date are entitled to our Health Insurance program with Blue Cross Blue Shield. Refer to insurance handbook for details.

Leave of Absence: Various unpaid leave of absence are available to all employees upon request. Employees are entitled to three personal days per year. Employees can receive a (1)week paid vacation after one-year employment date is reached.

Consent Form: There will be a handbook given to all employee’s stating company policies, dress code, benefits, customer service expectations, discounts, compensation, payroll, house rules, etc. Everyone must acknowledge and sign prior to first shift.

Policies We do not accept personal checks or IOU’s.

We only accept MasterCard and Visa

- Bare minimum: $15.00

We do not over serve. Bartenders, cocktail server’s and managers may cut a customer off at own discretion.

Each employee has a $30.00, nightly compensation to be used on our loyal customers.

We must have all customers off the premises at close. No exceptions!

State law amended the Illinois open-container law, allowing diners to carry resealed bottles home in a special tamper-proof, one-use-only bag. The amendment passed by wide margins in the Illinois House and Senate and took effect in 2006. Employee’s must follow open-container instructions and inform customers to transport the alcohol in their trunk.

Service Levels

Live music Friday & Saturday Nights Ship products to customers (cigars & accessories)

Valet Parking Available Annual and Monthly memberships

Return merchandise within one week of purchase Cigar freshness guarantee

Week of May 2nd , 2011 Name Mon Tue Wed Thurs Fri Sat Sun Total

Rob 4-8:30 4-1 4-9 4-7 4-9 4-1 35.5

Thomas 8:30-1 9-2 7-2 9-3 22.5

Alice 4-8:30 4-8:30 4-1 4-10:30 4-10:30 31

Jim 6:30-1 6:30-1 8:30-2 6-2 7-3 8:30-1 38

Steve 8:30-1 8:30-1 4-1 7-2 7-3 31

Alex 8:30-2 4-1 4-1 4-10:30 29

Sally 4-8:30 4-12 4-12 4-12 28.5

Lauren 8:30-1 4-8:30 8-2 8-2 10-3 26

Kim 8:30-1 10-2 10-2 10-3 4-8:30 22

Sarah 4-12 4-12 4-12 8:30-1 28.5

Adam 6-2 9-2 6-3 22

John 9-2 6-2 9-3 19

Goal Setting: May 2011

Name Week 1 Week 2 Week 3 Week 4 Total

Rob $2,600 $2,600 $2,600 $2,400 $10,200

Thomas $1,850 $2,000 $2,200 $2,150 $8,200

Alice $1,700 $1,700 $1,750 $1,600 $6,750

Jim $2,200 $2,200 $2,150 $2,000 $8,550

Steve $1,900 $1,950 $1,900 $2,100 $7,850

Alex $1,700 $1,900 $1,950 $1,800 $7,350

Sally $2,400 $2,200 $2,150 $2,350 $9,100

Lauren $2,200 $2,100 $2,200 $2,350 $8,850

Kim $2,150 $2,150 $2,300 $2,300 $8,900

Sarah $2,400 $2,400 $2,150 $2,300 $9,250

Total $21,100 $21,200 $21,350 $21,350 $85,000

May 2011

Associate Goal

Week 1

Actual

Week 1

Goal

Week 2

Actual

Week 2

Goal

Week 3

Actual

Week 3

Goal

Week 4

Actual

Week 4

Goal

Week 5

Actual

Week 5

Goal

Total

Actual

Total

Sally 13 12 11 12 11 14 11 13 13 12 59 63

Lauren 12 11 10 9 12 15 14 13 12 14 60 62

Kim 10 11 10 13 13 12 16 14 12 10 61 64

Sarah 13 10 12 13 11 12 10 11 13 12 59 58

TOTALS BY

WEEK 48 44 43 47 47 53 51 51 50 48 239 247

Staff Incentives

- monthly membership benefits - newest cigars

-commission on tobacco products -commission on annual memberships

- employee of the month

Competition Evaluation: Updown Cigar 1550 N. Wells

Is the store convenient and easily accessible? 4 Are the store hours reasonable? 4 Is the store “in stock” of most items of interest? 5 Is the store well staffed based on the number of customers? 3 Does this store offer a range of special services appropriate to the business? 4 Does the store offer guarantees? 4 Is the staff knowledgeable/ friendly? 4 Is the store clean? 4 Would you shop here again? 4 Total: 36/45 The shoppers in the store were please and most were browsing at the time of my visit. The entire store is stocked with cigars every shape, size and flavor. The display cases are very nice and are multifunctional, humidor s as well. For Sikar we will have softer lighting and music playing. Lots of seating will encourage our customers to stay and enjoy a drink.

Events & Promotions - Social media including Facebook and Twitter. We will build our social media by

twitting with customers and bands about weekly events, and build up our fan page on Facebook promoting events.

- Host annual fundraisers twice a year at our venue with live music great drink specials and tobbaco deals. The $10.00 cover for the event will go towards charidty.

- On the first Monday of the month host special tasting events for members only allowing them to bring up to five non membesr to the event hopefully encouraging them to start up a membership with us in the future.

- Send out monthly news letters with tobbacoo/drink coupons.

Marketing & Public Relations

- Advertisment in local newspapers and magazines such as Red Eye, Chicago Scene, and Timeout Chicago.

- Monthly email blasts allowing us to notify thousands of people at a time about our events.

- Purchase Advertisment space in the Yellow Pages, and on Facebook.

- Have our media kit and press release avalible on our website and Facebook page.

Advertisment

Advertising Goal – The advertising goal of Sikar is to be the one stop, first stop hang out for customers to wind down and enjoy a nice, soothing environment and be entertained. We want Sikar to be a category killer in the bar/lounge category because it encompasses everything from entertainment to alcohol, and of course our custom cigars. We want Sikar to be known as a place of class and dignity, because that’s who our customer is.

Our Advertising Strategy would be to tap into sources that our target customer would most likely be exposed to. We will post advertisements for Sikar in local newspapers, like the Chicago Tribune, Chicago Sun Times; and the Daily Herald; on busses and the CTA, we will post events and coupons in family value packs. We will gain popularity from our events and promotions. Also we will depend on word of mouth, we invite our customers to bring in friends, co – workers, and bosses to enjoy the experience of Sikar.

Advertising Budget – We will attribute 10% of our budget to Advertisements.

Happy Hour Menu

Monday-Thursday 4-7pm

Sikar’s Lemon Drop

Van Gogh Citroen Vodka, Lemoncello, Sour, served with

a sugared RimThe Lady Luck

Van Gogh Citroen Vodka, X-rated Liqueur, Lemonade, topped

with champagneDirty with a Zing

Van Gogh Vodka or Gin, Olive Juice, bleu cheese stuffed

olives and a dash of Tabasco

Raspberry TartVan Gogh Oranje & Raspberry Vodkas, Apple Liqueur, Sour

and Cranberry JuiceKey Lime PieVan Gogh Vanilla Vodka, Frangelico

pineapple juice, lime juice, Patron Citronge

cream, with a graham cracker rim.Juicy PearGrey Goose La Poire, St. Germain Liqueur,

fresh Lemon, and honeyBlack DotVan Gogh Mango, Blackberry Liqueur, Triple

Sec and White Cranberry Juice

$7 each

Summary

Sikar is a cigar lounge and bar that offers live entertainment, custom cigars, and alcohol. Sikar prides itself on customer service, making it easy to relax and unwind from your day. We are a full service establishment, we make sure you have everything you could need or want, from the moment you drive up to the moment you leave. Our mission is to provide sophistication and class to the typical bar/lounge setting. We strive to cater to those who expect the best in live; because we think you deserve it. The Sikar experience is one that you want to tell everyone about and one that you cant get through your week without.