2.009 Blue TeamThe Bartender2.009 Marketing PresentationDecember 6th, 2001Tom Glanfield – Blue Team22.009 Blue TeamTom Glanfield & Beth DewellTarget Market• Restaurants in or near major metropolitanareas with table service and over 25% ofrevenue from alcohol sales• Initial Market:• Boston, New York, Washington, and Chicago• 2 out of 5 restaurants want to usetechnology to improve labor operationalefficiency – S&P Industry Survey32.009 Blue TeamTom Glanfield & Beth DewellWhy They Will Buy• Recover from $7,600 investment in 17-27 weeks• Restaurant profit is made in alcohol salesReason Amount/wkReduced labor cost 160.00$ Less liquor loss 121.15$ Faster table service 161.54$ Profit per week : 442.69$ Our Product Makes Money42.009 Blue TeamTom Glanfield & Beth DewellIncome Structure• Product price of$7,600• 3x mark-up• $1,840 profit permachine• Liquor andRestaurantequipmentdistributorsMaterials$1,35018%Manufacturing$1,25016%SG&A$76010%Distribution$2,40032%Profit$1,84024%52.009 Blue TeamTom Glanfield & Beth DewellFinancial GrowthAnnual Revenue After Taxes$-$200$400$600$800$1,000Year 1 Year 2 Year 3 Year 4Revenue ($K)Year 1 ($K) Year 2 ($K) Year 3 ($K) Year 4 ($K)Sales Revenue 1,900$ 3,040$ 6,080$ 7,600$ Material cost 338 540 1,080 1,350 Manufacturing cost 313 500 1,000 1,250 Distribution cost 600 960 1,920 2,400 Gross profit 650$ 1,040$ 2,080$ 2,600$ R&D 95 304 608 760 SG&A 95 152 304 380 NEBT 460 584 1,168 1,460 Interest exp 65 104 208 260 Taxes 65 104 208 260 NEAT 330$ 376$ 752$ 940$62.009 Blue TeamTom Glanfield & Beth DewellReturn on Investment• Initial investment of $1million• IRR of 32%Profit Growth$(1,500)$(1,000)$(500)$-$500$1,000$1,500$2,000Year 1 Year 2 Year 3 Year 4($K)72.009 Blue TeamTom Glanfield & Beth DewellExecutive Summary• Market Opportunity Exists• 4th year steady state sales of $7.6M• Unique Product• Restaurants will buy to increase profit margin• No similar product on market• Attractive Financials• IRR of 32% on $1M initial investment• Break even in 2nd year of production82.009 Blue TeamTom Glanfield & Beth DewellSales ForecastingSales Volume 020040060080010001200Year 1 Year 2 Year 3 Year 4Units92.009 Blue TeamTom Glanfield & Beth DewellRestaurant Cost SavingReturn from reduced staffBartender salary: 8.00$ Hrs/week: 20Return per week: 160.00$ Weeks to turn profit: 48Return from reduced cash lossBar sales per night: 8,076.92$ Percent loss 10%Sale loss 807.69$ Percent of loss saved 15%Return per week: 121.15$ Weeks to turn profit: 63Return from increased drink sales:Drink sales/week: 8,076.92$ Percent Increase: 2.0%Return per week: 161.54$ Weeks to turn profit: 47All assumptions hold:Total Return per week: 442.69$ Cost of Machine: 7,600.00$ Weeks to turn profit: 172 lowest cost assumptions hold:Total Return per week: 281.15$ Cost of Machine: 7,600.00$ Weeks to turn profit:
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