Post on 05-Jan-2016
transcript
PREPARED FORSEIBEL & JOHNSON INVESTMENTS
225 OAK LAWN AVEDALLAS, TX 75219
P R E P A R E D B YT H E F I L L I N G S T A T I O N E X E C U T I V E S T A F F
P R A B I N G A U T A MJ U L I A G U T I E R R E Z
C A S S A N D R A O L I V E R R E G I N A L D S P E N C E R
J A M I L W A LT O NE R I C Y A C U L A
THE FILLING STATION EXPANSIONFINANCING PROPOSAL
About the Filling Station
Opened in 1975 Recognized beyond the city of Dallas Converted into a restaurant from a 1925 station First bar in Dallas history to have big screen TVKnown for vintage memorabiliaStand-out in a crowd of restaurants and bars in
Dallas.Entertainment offerings:
Live Music, Karaoke, Sports Events on TV, Trivia and Drink Specials
The Filling Station
When tourists come to visit our city, they also make a point to visit The Filling Station. Our Dallas location has become a local favorite and a
popular spot for out-of-town guests, we believe a location in San Antonio
would be highly successful.
Three Questions for Justification
Will there be enough interest in a new Filling Station outside of Dallas?
Will we successfully find the personnel and management to run the new location?
Will The Filling Station atmosphere fit within our proposed location?
Sales History
The Filling Station Restaurant & Bar expansion
is determined to be a viable effort based on the location’s sales and continued growth. Our sales have increased over the last few years and appear to be growing steadily.
Between 2008 and 2009 sales grew 7.8%.Between 209 and 2010 we had 8.8% growth.In 2011 total sales were over $1.8 million; a
9.8% increase.
Background
Brand Recognition Historic value
Successfully maintained for 37 years. We foresee further expansion in Houston,
TX and Austin, TX.
San Antonio, TX
The city of San Antonio has begun its
expansion project of the area.
The project was given the green light eight
months ago.The River Walk is where
commerce and culture come together in a
wonderful atmosphere.
Sales Forecast
Year 1 Year 2 Year 3$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Valet ParkingEntertainmentDrinksFood
Years in Business
Sale
s (i
n t
housa
nds)
Projected Sales, Gross Margin, and Profit
Year 1 Year 2 Year 3-$150,000
$0
$150,000
$300,000
$450,000
$600,000
$750,000
$900,000
$1,050,000
$1,200,000
$1,350,000
$1,500,000
$1,650,000
SalesGross MarginProfit
Years in Business
Marketing Strategy
Quality food and mixed-beverages at an affordable price
Young and upbeat atmosphereDrink menu ranges from the “Realignment”
to our most popular “Tune Up” Advertisements on Facebook and Twitter
Happy hour every weekday Reduced-price lunch specials
Target Market
74% of San Antonio residents fall within $10,000 to $60,000 annual salary range
San Antonio adult population outnumbering adolescents 3 to 1
1,000,000 residents over the age of 18
San Antonio’s average annual income - $40,000, which falls squarely into our target
market.
Target Market
21%
20%
17%
6%2%1%
22%
11%
San Antonio Annual Household Income Distribution
$25K-$40K
$40K-$60K
$60K-$100K
$100K-$150K
$150K-$200K
$200K plus
$10K-$25K
$10K or less
Target Market
35-4929%
50-6424%
25-3421%
65 and older15%
20-2412%
San Antonio Population by Age (over 18)
Market Research
Our survey results indicate a strong market suitable for our restaurant to be profitable
in San Antonio. Over 50% of respondents visit similar
establishments between 2 and 5 times per month
55% enjoy 1 to 3 mixed beverages while dining
10% enjoy 4 or more 2/3 of participants are the type of patrons
for which we are looking to target
Market Research
The annual economic impact is over $11 billion. Each year, millions of visitors come to
San Antonio for the shopping and leisurely dining experiences as well as the city’s rich
historical culture. 10 million visitors per year stay at least one night to enjoy the various nighttime activities
available on the River Walk. San Antonio has 5 of the top 10 tourist
attractions in Texas, one of which is the River Walk.
Schedule
Cumulative time - approximately 6 months Securing the rent space - 1 week Zoning, ordinance and licensing processes - 2 months Equipment and furnishing orders - 2 to 3 weeks Build-out and finishing - 3 weeks Liquor license and food certification - 3 months Employment application and interview process - 2 months
Additional 3 weeks of training: 1 week in Dallas, rest of the time in San Antonio
Staffing
One of our existing managers and two of our assistant managers have volunteered to
transfer to San Antonio and launch the new restaurant.
Job advertisements have been placed in local San Antonio newspapers and have received an
impressive response.
We want to ensure that an identical culture and approach is maintained in San Antonio.
Staffing
Frederick Lewis – General Manager of new location 20 years experience managing restaurant staffs Managing our Dallas location for 9 years
Leslie Bowden and Tim Anderson –Assistant Managers of new location Combined experience of 15 years in the food service
industry Lorenzo Martinez - Head Chef
Creating menus in both locationsDavid Ferguson - Head Bartender
Invent a new drink to be offered on a monthly basis
Budget
Year 1 Year 2 Year 3
Sales $ 1,026,000.00 $ 1,231,200.00 $ 1,539,000.00
Direct Cost of Sales $ 320,000.00 $ 330,000.00 $ 320,000.00
Other Production Expenses $ 75,000.00 $ 68,000.00 $ 50,000.00
Total Cost of Sales $ 395,000.00 $ 398,000.00 $ 370,000.00
Gross Margin $ 631,000.00 $ 833,200.00 $ 1,169,000.00
Expenses
Payroll $ 287,000.00 $ 304,000.00 $ 322,000.00
Sales and Marketing $ 120,000.00 $ 90,000.00 $ 90,000.00
Depreciation $ 30,000.00 $ 25,000.00 $ 25,000.00
Leased Equipment $ 80,000.00 $ 80,000.00 $ 80,000.00
Utilities $ 13,000.00 $ 13,000.00 $ 13,000.00
Insurance $ 40,000.00 $ 40,000.00 $ 40,000.00
Rent $ 49,000.00 $ 49,000.00 $ 49,000.00
Payroll Taxes $ 43,050.00 $ 45,600.00 $ 48,300.00
Total Operating Expenses $ 662,050.00 $ 646,600.00 $ 667,300.00
Profit Before Interest and Taxes $ (31,050.00) $ 186,600.00 $ 501,700.00
EBITDA $ (34,776.00) $ 208,992.00 $ 561,904.00
Tax Incurred $ 3,726.00 $ (22,392.00) $ (60,204.00)
Net Profit $ (34,776.00) $ 208,992.00 $ 561,904.00
Profit/Sales -3% 17% 37%
Proposal
$2 million loan from Seibel & Johnson Investments 18% interest 48 months Interest-only for the first 12 months Remaining 36 months will be paid as principle plus interest
Purchase equipment and provide working capital The Filling Station will pledge personal assets in the
amount of the loan to collateralize the transaction. Entitled to 5% percent of annual profits Maintain rights to finance any subsequent locationsInvest a total of $100,000 of our own accrued funds
THANK YOU