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Business Plan - West Tap House

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Business Plan for West Tap House Submitted by: Allie Brown, Alexa Grilli, Beth Leyder, and Erin Mackenzie Kalamazoo, Michigan April 6, 2015
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Page 1: Business Plan - West Tap House

Business Plan forWest Tap House

Submitted by:

Allie Brown, Alexa Grilli, Beth Leyder, and Erin Mackenzie

Kalamazoo, Michigan

April 6, 2015

Page 2: Business Plan - West Tap House

Table of Contents

Executive Summary.............................................................................................................1

Mission Statement................................................................................................................2

Situation Analysis................................................................................................................2

Objectives............................................................................................................................3

SWOT Analysis...................................................................................................................4

Target Market.......................................................................................................................6

Value Proposition.................................................................................................................7

Competitive Analysis...........................................................................................................7

Positioning Statement..........................................................................................................9

Marketing Mix.....................................................................................................................9

Promotional Offers.............................................................................................................11

Press Releases....................................................................................................................13

Floor Plans.........................................................................................................................15

Menu..................................................................................................................................17

Flyers..................................................................................................................................18

Lawson Ice Arena Banner..................................................................................................20

T-Shirts..............................................................................................................................21

Social Media......................................................................................................................23

Video Advertisement.........................................................................................................26

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Executive Summary

The West Tap House mission is to deliver a fun and refreshing atmosphere while giving

our customers a convenient and unique bar experience. We are able to do this by offering our

customers a variety of dining experiences. On the first floor our customers can enjoy lunch or

dinner in our restaurant or patio. The second floor caters to our guests who are 21 and above,

where they are able to enjoy a drink on the balcony or in our bar which has a variety of booths

and tables that each come equipped with their very own tap. The customer can access the tap by

buying a pitcher of beer from our wait staff, who will then order the automated system to place

that specific amount of beer on the tap for our patron to enjoy at their convenience. West Tap

House strives to create an open and inviting atmosphere, with large windows to allow for lots of

natural light and fresh air. West Tap House feels like a nice downtown restaurant that has been

transplanted just outside of Western Michigan University’s campus.

Our target market will consist of college students and other Kalamazoo residents who

live in the area. We plan on creating value for our customers by using the more-for-less value

proposition. In order to create a profit we will need to focus on promoting the restaurant, so that

we can have a high turnover. We plan on promoting West Tap House by offering specials for

every day of the week, as well as seasonal specials. Having a large presence on social media is

important to us, we plan on utilizing Facebook, Twitter, and Instagram so that we can keep our

customers informed about our events and promotions. We also plan on attending community

events in order to promote our brand and meet new potential customers. Our varied marketing

plan we ensure that we are able to capture our target market and turn new customers into

returning patrons.

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Mission Statement

The West Tap House mission is to deliver a fun and refreshing atmosphere while giving

our customers a convenient and unique bar experience.

Situation Analysis

Location: West Tap House will be located on W. Michigan Ave. near Howard St. in the new

apartment and retail complex (West Michigan Plaza) that is currently being built. This is a great

place for our restaurant due to all of the traffic from students walking and driving to and from

class. Because the restaurant is located in part of an apartment complex, some of our customers

will be able to visit us without even having to leave the building. However, for those that decide

to drive, parking for the West Tap House will be located behind the building.

Restaurant: In the West Michigan Plaza, West Tap House will be located on the bottom two

floors. The first floor will serve as casual dining restaurant, allowing guests of all ages, including

families, and those both under and over 21 years of age. There will also be a patio with seating

for our guests to enjoy. The second floor, is where the bar and balcony are located. Guests must

be 21 years of age or older in order to access this area of the restaurant. The West Tap House is a

very open and welcoming restaurant, it will have a lot of windows to let in natural light and large

patio and balcony doors to let in lots of fresh air. At night, we will use Christmas lights and dim

hanging lights to maintain the serene natural feel of the place. The goal of the West Tap House

will be to create a restaurant and bar that is similar to a nice restaurant downtown, but located in

our customer’s neighborhood.

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Beer Taps: All of the booths and tables in the bar come equipped with their very own beer tap.

If our patrons wish to use the taps all they need to do is purchase a pitcher of beer from a

member of our wait staff who will then use our automated system to put the pitcher of beer on

their tap for them to enjoy. The beer taps are fun for our customers to use and offer them the

convenience of refreshing cold beer at their very own finger tips. The taps also allow our wait

staff to cater to more customers at once, while the automated system and predetermined amount

of beer on the tap keeps our customers from over indulging.

ObjectivesShort-term Goals:

1. Make a profit to ensure stability and ensure a good financial standing for the first three

years.

2. Save enough money to cover costs for the summer slow period.

3. Increase our visibility in the community through participation in targeted events.

4. Increase recycling opportunities.

5. Increase use in social media to spread the word of our events and promotions.

Long-term Goals:1. Open a second location in Kalamazoo, (possibly in downtown Kalamazoo).

2. Strive to be more environmentally friendly.

3. Increase the positive attitudes of Kalamazoo residents towards West Tap House.

4. Sponsor a club, organization, or sports team in the Kalamazoo Area.

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SWOT Analysis

STRENGTHS

Unique Atmosphere Community Engagement Innovation Price

WEAKNESSES

Variety Small Profit Margin New Restaurant

OPPORTUNITIES

College Town Restaurant Location Social Media

THREATS

Competition Price Fluctuations Off-season

Strengths Unique Atmosphere : Kalamazoo has never seen anything like West Tap House. It will

be a local spot where students can enjoy a beer with friends with an upscale vibe for half

the price. Individual taps will provide easy and fast service for customers to get the exact

drinks they want.

Community Engagement : West Tap House is interested in being involved with the

student events at Western Michigan University. West Tap House will have promotions on

game days and set up tents during tailgates in order to interact with students before they

head to a WMU football game.

Innovation : No one else in the area is offering the unique experience and convenience of

having beer taps at your table. People will want to try the new experience and those that

enjoy it will become regular customers.

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Price : Our affordable drink and food prices are a good fit for any college student on a

budget. Therefore, our prices are also reasonable for the locals who are looking for a

well-priced meal.

Weaknesses Variety : West Tap House caters to the beer connoisseur since our main focus is on tap

beer. If we want to reach all different types of customers we will have to draw them in

with our specialty drink menus and food specials.

Small Profit Margin : Our profit margin will be smaller per customer because college

students have a smaller budget, therefore in order to make a profit we need to have a high

turnover rate of customers every day.

New Restaurant : West Tap House is new to the Kalamazoo market and since we are not

a chain restaurant, we do not have a reputation or following. So we will need to focus on

marketing to recruit customers and get them to try our restaurant and bar.

Opportunities College Town : Kalamazoo has three colleges in the area so there will always be a large

majority of young adults. Although the West Tap House is a place for all ages, many

young adults will take advantage of its services due to its location near Western Michigan

University.

Restaurant Location : Not only is West Tap House located inside an apartment complex

but it is also surrounded by a wide variety houses and apartments. Making West Tap

House a convenient option for those that live in the area.

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Social Media : We poses the ability to create a large online following through a variety of

social media outlets which will allow us to reach our target market and create a

reputation.

Threats Competition :  Kalamazoo is considered a college town so there are many bars and

restaurants in the area.  If West Tap House is going to be successful then it needs to

provide a better experience to customers than the local competition.

Price Fluctuations : Due to the fact that West Tap House specializes in beer, huge

fluctuations in the beer market may cause the price of beer to rise which will cause a

decrease in our profit margins.

Off-season : Since we have a large customer base of college students, the summer time

will be a low revenue period. We will have to plan and save to cover costs, and use

incentives to attract the remaining customers.

Target Market

The ideal customer for West Tap House will be a young adult, age 21-30 looking for a

relaxing, open, and affordable environment to have dinner a couple of drinks. This is a very

attractive market, due to the fact that the Kalamazoo area includes three universities: Western

Michigan University, Kalamazoo College, and Kalamazoo Valley Community College. This

region has roughly 40,000 people in the age group that we are targeting. Therefore, this is a very

attractive looking market segment, and West Tap House plans on aiming its marketing efforts at

capturing this target market.

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Value Proposition

The value proposition that West Tap House will use is: more benefits for less price. The

West Tap House will offer a more interactive dining experience, including giving our customers

more control of their beer tap, along with great deals on food and drinks, in order to give our

customers and all around better experience than our competitors. We hope that with these

benefits, our customers will place value in our restaurant and bar, and appreciate the great value

that we are offering. We plan on creating more value by using promotions and sales throughout

the week to bring in more customers on certain days, in the hope that these discounts and

benefits will cause our customers to place more value in our restaurant.

Competitive Analysis

Competitive Landscape: There are quite a few restaurants and bars around Western Michigan

University’s campus. Many of them have been in business for a number of years, and are very

well known to the students and locals who live in the area. However, there are no restaurants and

bars in the area that are offering the price on food and drinks, atmosphere, and experience that

West Tap House has to offer its patrons.

Key Competitors The Grotto at Capone’s

2636 West Michigan Avenue, Kalamazoo, Michigan 49006

The Grotto at Capone’s is a pub that offers Chicago style pizza and 24 beers on tap, along

with food and drink specials. They are open Monday through Saturday from 3pm-2am,

and from 12pm-2am on Sunday.

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AFB

2941 Howard Street, Kalamazoo, Michigan 49006

AFB offers a bar and grill that serves American food, and $1 draft beer along with other

food and drink specials. They also have an eating challenge called the, “Bronco

Challenge”. AFB is open Monday through Friday from 3pm-2am, and 11am-2am on

Saturday and Sunday.

The Library Taphouse & Kitchen

3725 West Michigan Avenue, Kalamazoo, Michigan 49006

The Library Taphouse & Kitchen is a bar and grill is also a night club on Friday and

Saturday. They offer a variety of food and drink specials. The Library is open Tuesday-

Friday from 4pm-2am, Saturday from 11am-2am, and Sunday from 12pm-2am.

The Mix

2804 West Michigan Avenue, Kalamazoo 49006

The Mix is a night club that offers live entertainment every night, ranging from Bands to

DJs to Slam Poetry. They also have deals on food and drinks. The Mix is open Monday

to Sunday from 7pm-2am.

Competitive Advantages: West Tap House has several advantages. First, the atmosphere will be

different, instead of the usual dark, dank bar scene, West Tap House will offer its patrons an

inviting and open atmosphere, with plenty of light and fresh air. There will also be several

seating options including: restaurant, bar, patio, and balcony. Second, none of our competitors

offers its patrons the ease and luxury of being able to pour themselves a drink from the tap

located on their own table. Third, instead of only being open in the evening like most of our

competition, West Tap House will be open from 12pm-2pm every day. This will allow us to

serve lunch as well as dinner to our patrons, while allowing us to increase our revenue and

customer base.

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Positioning Statement

To young adults living in the Kalamazoo area who need an inviting and interactive dining

experience, our West Tap House is an entertaining restaurant and a bar that offers the

convenience of a beer tap on every table.

Marketing Mix

Product: The West Tap House offers a wide variety of spirits, including a large selection of

draft and bottled beers, to wine by the glass, and tasty cocktails. The West Tap House has

something for every taste. We put an emphasis on our tableside beer taps, which offers you the

convenience to refill your favorite tap beer right at your fingertips. In addition, West Tap House

takes pride in our food. We offer an assortment of affordable, mouthwatering dishes ranging

from our homemade Tap House Mac n’ Cheese to our Baja Shrimp Tacos. Our open and friendly

atmosphere makes West Tap House the perfect place for college students to meet up, old friends

to reunite, and business partners to enjoy a great drink.

Price: All menu items are moderately prices. An average customer bill can range from $5 to $20

including food and drink. One of our goals at West Tap House is to keep our customers satisfied

with affordable prices while giving them a unique dining experience. We believe that our

inviting atmosphere encourages longer stays and more spending but still allows table vacancies

due to extended hours of business.

Place: West Tap House will be located under the West Michigan Ave Apartments located right

across from Western Michigan University’s campus. It is in a convenient location for students to

come by after class for food and drinks. At West Tap House, our food will be distributed directly

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through the restaurant.  Customers can come in and dine at the restaurant, call in their order and

come to the restaurant to pick it up, or place the take out order and wait at the restaurant for it to

be completed. At West Tap House a variety of our beer comes from local microbreweries in the

Kalamazoo area that is delivered straight to our restaurant. On a daily basis, food trucks deliver

different ingredients to our restaurant.

Promotions: The marketing strategy for West Tap House features as assortment of different

ways in which we plan to contact our target market, to make them aware of our restaurant and

bar, as well as inform them about what West Tap House has to offer them, and how we differ

from our competitors. We are able to do this in a number of ways, first we offer a variety of

promotional offers, both throughout the week, as well as special seasonal offers that only occur

once a year or for a limited time. This will help keep our customers interested, and get them to

return more often to our establishment. West Tap House will also utilize social media in order to

effectively connect with our target market and share our promotions with them. We will do this

by keeping our Facebook page, Twitter account, and Instagram account up to date with all of our

information about the specials and promotions that we are currently offering. In addition to

social media, customers who sign up for our email will receive weekly emails filled with

information and promotions. We also have created flyers to distribute and pass out to students

walking to and from class, and T-shirts to sell and give away in order to promote our brand. West

Tap House also has plans to participate in community events. Two such events are Bronco Bash

and tailgating before WMU football games. We will show our support for the college and offer

promotional items to everyone attending the events. With all of these components of our

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marketing plan, West Tap House will be able to gain and retain a quality segment of its target

market.

Advertising: Flyers: advertising West Tap House specials and menu items

T-Shirts: advertising West Tap House sold and given away

Bronco Bash: giving away free West Tap House gear including coupons

Football Tailgating: Free West Tap House gear and coupons

Lawson Ice Arena Banner

Local Media: Social Media: (Twitter, Instagram, and Facebook Pages) this will give the internet users

access to menus, daily specials, events and general information about West Tap House.

Email: those who sign up for our emails will receive weekly coupons and information

about specials and events.

Promotional Offers

Weekly Promotions: Monday: Bloody Mary Monday ($3)

Tuesday: ½ Appetizers (after 8pm)

Wednesday: Weekly Beer Pong Tournament (starts at 9pm)

Thursday: $5 Pitchers of Beer (9pm-12am)

Friday: Live Music Night

Saturday: $5 Pitchers of Beer (9pm-12am)

Sunday: Bar Trivia Night

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Seasonal Promotions: Football Home Game Specials:

o Tailgating for Football

o Sell West Tap House T-shirts

o $5 Pitchers of Beer all day

Summer Specials:

o Summer Shanty Special: Offered on the 1st day of summer

o Oberon Days: Once a month (during the summer) Oberon is offered on the beer taps

Fall Specials:

o Halloween Costume Contest

o Cider Weekend: A variety of Hard Cider specials are offered all weekend

Community Events:

o Taste of Kalamazoo

o Kalamazoo Beer-Fest

o Bronco Bash

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FOR IMMEDIATE RELEASE

Allie BrownCommunications Director

(586) [email protected]

May 1, 2015

Grand Opening of West Tap House in Kalamazoo.

KALAMAZOO, Mich. - The West Tap House will open its doors on Saturday August 1, 2015 at the new West Michigan Plaza located at 5200 West Michigan Ave. This tap house and restaurant will provide a unique dining experience that Kalamazoo has never had before.

The West Tap House will provide beer taps for each table and booth located inside the restaurant. Customers will be able to choose what beer they want and then order the amount of glasses or pitches with the waitress. The beer will be dispensed through the tap and then cut off once the customers have reached the limit they have purchased.

This tap house will bring in beers from local breweries and also popular domestic drafts. West Tap House will feature a tasty menu of loaded mac n’ cheese, pulled pork sandwiches, grilled shrimp tacos and much more!

“We are all about giving our customers more for less,” said Beth Leyder one of the owners, “our main special will be 60oz. pitchers of beer for $5 on Thursdays and Saturday nights,”

This unique restaurant will have specials every night of the week. Specials will include $3 Bloody Marys, ½ priced appetizers, and even a beer pong tournament.

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FOR IMMEDIATE RELEASE

Allie BrownCommunications Director

(586) [email protected]

West Tap House Helps Take On the Spartans

August 31, 2015

KALAMAZOO, Mich. - The newly opened West Tap House will be helping the Western Michigan Broncos rally together against the Michigan State Spartans at the first tailgate of the season this Saturday.

West Tap House will have a tent set up at WMU’s tailgate where customers can sample different beers and buy a glass of their favorite. They will also have games such as corn hole, and giant Jenga.

“We will be selling T-shirts for this year’s football tailgates,” said Erin Mackenzie, one of the owners, “Shirts will be $20 and they will get a 20% discount off their first pitcher.”

When customers purchase their shirts they will receive a 20% off coupon for their first pitcher of beer at the Tap House.

West Tap House is planning on being at all WMU Football tailgates this fall.

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West Tap House Floor Plan (First Floor)

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West Tap House Floor Plan (Second Floor)

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West Tap House Menu

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West Tap House Beer Flyer

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West Tap House Specials Flyer

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Lawson Ice Arena Banner

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West Tap House T-Shirt Design 1

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West Tap House T-Shirt Design 2

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West Tap House Facebook Page

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West Tap House Twitter Page

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West Tap House Instagram

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Video Advertisement


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