Food &
Beverage
Consulting
Nationwide Coverage
Market Analysis:
Unlike a business plan, a
market analysis will have
extensive knowledge about
your customers, your
competitors, and the
industry in general.
Acquiring accurate and
specific information about
your customers and
competitors is crucial in
market investigation and
development of a marketing
plan.
In
developing a marketing plan,
the primary functions are to
understand the needs and
desires of your customers,
select or develop a product
or service that will meet
customer needs, develop
promotional material that
will make the customer aware
of your business, and ensure
product or service delivery.
Developing a business plan
for an existing business or
conducting a feasibility
study for a new venture also
requires a thorough analysis
of market conditions. Market
conditions in your region
will have a significant
impact on the profitability
of your bar or tavern. The
strength of the local market
affects how many customers
you will serve and the
product prices that you can
charge.
Feasibility Study:
A feasibility study is
comparable to a market
analysis in that it takes
into consideration all of
the factors involved in
starting a new business or
buying an existing one. The
biggest difference between
the two is the feasibility
study focuses more on the
likeliness of success or
failure with a particular
operation in a particular
area, rather than just show
how it will market its
product and compete with
other businesses.
In a
feasibility study,
particular attention is paid
to the selected location for
a business, the retail and
commercial market in that
area, current and past
successes or failures of
similar businesses in that
market, estimated start up
costs and operational
expenses, past business
performance, regional
population, median income,
and municipal codes,
restrictions, taxes, and
planning.
Following the our completion
of a feasibility study, you
will have a clear idea of
the likelihood or
unlikelihood of success at
the location you’ve chosen
or in the general area. This
information can also be
easily consolidated and
utilized into the primary
business plan.
Competitive Analysis:
To conduct a competitive
analysis, we first identify
how many bars are in your
market area. Then, identify
those bars that appeal to
the types of customers
(market segments) that you
plan to serve. We also
identify all other bars
located in your immediate
area that can also influence
your business.
Included in the analysis
could be a restaurant/bar
combination, catering
services, liquor stores,
etc. It is also important to
identify any market area
bars that have closed, and
for what reasons. In the
analysis, we will also learn
what new bars are planned
for the market area and
determine how they might
affect your proposed
operation.
After
identifying your
competition, visit and
evaluate each bar or
equivalent. Speak with the
manager of each operation if
possible. Fall back on the
data collection techniques
and information you learned
in pre-contemplation to
finalize your data.
Business Analysis:
If you’re looking at
purchasing an existing bar,
you will likely need a
business analysis (or some
form of it) to be conducted
prior to purchase. The
business analysis will
dissect the financial
statements of an existing
business and compare annual
gross sales figures against
purchase orders. It will
assess the real estate value
itself, lease or mortgage
agreements, tax category,
location, zoning or permit
restrictions, history of the
liquor license and its
transferability, structure
of the registered ownership,
and profit and loss. It will
compare estimated sales
figures against actual
traffic counts, hours of
operation, competitors, and
total time in business.
Inventory practices will be
outlined, as will cash
controls, labor costs,
liability issues, and
equipment & furnishings
assessment.
By the
end of the analysis, you
will no without a doubt what
the real fair market value
is of that business rather
than the quote the seller
has given you.
Location Analysis:
When you haven’t built
the bar yet but you know
exactly where you want it,
you need to conduct a
location analysis. In one,
we will identify zoning and
permit conditions, estimated
or calculated traffic flow,
parking capabilities,
property tax zones,
accessibility, visibility,
and building property
integrity. We will also run
comparisons on like
properties with a comparison
of advantages and
disadvantages.
