Executive SummaryThe Fayetteville Swampdogs Concession Stand is located at J.P. Riddle Stadium. The concession stand will offer all the favorites that all patrons enjoy while attending America’s favorite pastime. We will offer hot dogs, burgers, pizzas, gourmet sandwiches, popcorn, caramel corn, peanuts, candy, and frozen treats. The concession stand will also offer a wide variety of beverages. The beverages include a variety of sodas, sports drinks, slushies, bottled beer, and draft beer. We have plans in place to ensure that all employees follow all state and local food service regulations. These regulations will be closely monitored by our management staff that include proper food packaging, preparation, and storage. OpportunityThe current concession stand that is located at J.P. Riddle Stadium is outdated and the quality of food served from the stand is sub-par. We do not feel comfortable putting our name on the products that come out of the existing concession stand. To solve this problem, our company is committed to updating and remodeling the concession stand with all new state of the art equipment that will be used to prepare completely upgraded menu items. Company SummaryThe Swampdogs Concession Stand located at J.P. Riddle Stadium offers a wide variety of salty munching snacks, frozen desserts, gourmet popcorn and caramel corn, sweet snacks, beverages- to include alcoholic, baked or fried snacks, and meat entrées. We will also sell official Fayetteville Swampdog merchandise.Mission StatementOur mission is to build brand awareness by offering the best customer service and the highest quality of food service to ensure that game patrons are 100% satisfied with their game experience. To achieve this, we have business plan that is structured to succeed in the industry. Company HistoryFayetteville is the 5th largest city in North Carolina with over 200,000 people making up the greater community. Fayetteville is home to the Fayetteville Regional Airport, major hotels, restaurants, and shopping (“Fayetteville SwampDogs”). Also, the City of Fayetteville is home to Fort Bragg, the largest Army base in the United States. Fayetteville is also home to the best host families in the Coastal Plain League who look after our players as if they were their own sons. The Fayetteville Swampdogs have a proud history of success in the Coastal Plain League including the 2017 1st Half East Division Title. The Swampdogs have had 7 division titles and continue to rank among the league’s best in wins each season (“Fayetteville SwampDogs”). ProductsThe concession stand is located behind the home team’s dugout. This location is in a great location that is highly visible by all visitors entering the park. The products that we will offer are hot dogs, chili/cheese dogs, burgers, pizzas, gourmet sandwiches, popcorn, caramel corn, peanuts, candy, and frozen treats, beverages- to include alcoholic, baked or fried snacks, and meat entrées. We will also offer a huge selection of SwampDogs merchandise. Management TeamWe intend to operate a standard concession stand business, we have operating procedures in place that assist us in operating a successful business (Martins, 2019). We will only hire the most qualified and highly trained food service professionals. Since we intend to run our concession stand like a business, we will employ more employees than a normal concession stand would employ. The list below is an outline of the positions that will be filled by only qualified individuals.• General Manager• Human Resource • Food Technologist • Sales and Marketing Team• Accounting/Cashiers • Customer Service Executives• CustodiansLocations and FacilitiesJ.P. Riddle Stadium located at, 2823 Legion Road Fayetteville Nc 28306, is the home venue for all Fayetteville Swampdogs home baseball games. J.P. Riddle Stadium is an outdoor stadium that sits on 15 acres. The size of the field is 328 feet to both left and right field line and 390 feet to straight-away center field. The stadium has a seating capacity of 2,500. The stadium has a parking capacity of 800 spaces plus additional handicap parking that are also handicap van accessible. There are two male restrooms and two female restrooms. There are also three fixed concession stands located inside the stadium (“J.P. Riddle Stadium”).Product OverviewOur concession stand will still offer traditional baseball game favorites but with an upgraded menu, we will offer other selections like sushi rolls, salads, frozen yogurts, burgers, chicken sandwiches, beef briskets, pizzas, hot dogs, and tortilla chips with dips. All our meat dishes will be grilled to perfection and have that smoky grilled flavor in every bite. To cool off from the summertime heat, we will also offer a selection of frozen treats that include frozen slushies, frozen yogurts, and frozen snow cones. Key ParticipantsOur concession stand business will have four primary distribution companies that we will use to order all our products. The four distribution companies are US Foods, Holder Concession and Wholesale, R.J. Jefferys Distributing Company, and Coca-Cola Bottling Company. These four companies are the backbone in ensuring that we have the inventory needed to successfully operate our concession stand. PricingUsually, prices at a concession stand are higher than elsewhere. This is due to the convenience of being strategically located right inside the ballpark. Our management team will be responsible for deciding the selling price for each of our menu items. The selling price will be determined by purchase price of each item that goes into preparing menu items. The following list below is a rough draft of what our menu prices will be. Menu Item Unit Cost Retail Price Gross Profit Margin % Gross Profit% ProfitHamburger $1.35 $4.00 66.3 196.3 $2.65Hamburger with cheese $1.45 $4.50 67.8 210.3 $3.05Hotdog $1.17 $3.25 64.0 177.8 $2.08Hotdog with chili or cheese $1.20 $3.50 65.7 191.7 $2.30HotdogWith chili and cheese $1.23 $3.75 67.2 204.9 $2.52Chicken Sandwich $1.45 $4.25 65.9 193.1 $2.80Chicken Sandwich with cheese $1.50 $4.75 68.4 216.7 $3.25Beef Brisket $5.00 $9.00 44.4 80.0 $4.00Pizza- Whole $2.00 $12.00 83.3 500.0 $10.00Pizza- Slice $.25 $2.00 87.5 700.0 $1.75Taco $.85 $2.00 57.5 135.3 $1.15Salad $.75 $6.00 87.5 700.0 $5.25Popcorn $.50 $4.00 87.5 700.0 $3.50Pretzels $.65 $3.50 81.4 438.5 $2.85Chips $.25 $1.25 80.0 400.0 $1.00Peanuts $.25 $1.25 80.0 400.0 $1.00Candy $.25 $1.25 80.0 400.0 $1.00Cotton Candy $.07 $1.50 95.3 2042.9 $1.43Slushies16oz $.24 for 16oz $2.50 90.4 941.7 $2.26Snow Cones $.35 $2.50 86.0 614.3 2.15Ice Cream $.50 $2.50 80.0 400.0 $2.00Beer-12oz Bottle $1.20 $7.50 84.0 525.0 $6.30Beer-16oz Draft $1.04 for 16oz Draft $9.00 88.4 765.4 $7.96Coca-Cola24oz Soft Drinks $.41 3.00 86.3 631.7 $2.59Powerade20oz $.54 3.25 83.4 501.9 $2.71Dasani Water16.9oz $.21 2.25 90.7 971.4 $2.04Industry Type While there are no companies with a dominant share market in this industry, the industry is however worth $2 billion and has been projected to have an annual growth of 3.7% between the periods of 2011 and 2016. This industry has more than 59,000 businesses that provide employment for more than 68,000 people. Concession stands are usually located in areas where there is a large population or likely to have a large influx of people such as stadiums, carnivals and fairs, movie theatres, and other special events, or those who are in transit to other places like the train stations and other such places. However, according to statistical survey, two third of the revenue from a concession stand is usually from sale of hotdogs and peanuts, while on the other hand, drinks bring in an excess of 90% profit margin, making it a very profitable product to add to the menu. Other profitable products that increase the margins for concession stands are snow cones, large popcorns, small popcorns, pizza and nachos.Market SegmentationThe concession stand business is one that is patronized by a wide range of customers from different segments and so cannot really be restricted to a particular group of people. Since the Fayetteville Swampdogs is a summer collegiate baseball program, we will target the following segments:• Households• Children• Government Officials• Sports fans• Businesspeople• Sports men and women• Students• Every other personFayetteville, North Carolina has seen impressive population growth throughout the years. Despite some drops in population during the 1800s, the 1900s and 2000s have brought nothing but growth. The city passed 50,000 residents by the time of the 1970 census. This number had risen significantly in 1990, with the population showing over 75,000 residents. The 2000 census reflected even more growth, pushing the total population count past 121,000. The annexation of Fort Bragg contributed to a significant increase by the next census, which recorded more than 200,000 living in Fayetteville. Recent estimates show that the population boom has dropped off a bit, growing just 2.1% since the last census in 2010. However, the low unemployment rates, Fort Bragg and other employment opportunities, and the revitalization of Fayetteville are sure to help continue to boost these rates into the future. The list below shows the annual growth rate of Fayetteville, North Carolina. The segments that we will target the most will be households, children, students, sports men and women, and sports fans. The charts below show the demographics of the segments that we will target the most. The total school enrollment in Fayetteville, North Carolina was 59,000 in 20112015. Nursery school and kindergarten enrollment was 6,500 and elementary or high school enrollment was 30,200 children. College or graduate school enrollment was 22,300. CompetitionOur vision is to ensure that we make a name for ourselves and also become the preferred business name amongst other community college concession stands throughout North Carolina. However, to achieve this, we have come up with several strategies that would allow us to have a competitive advantage and allow us to compete favorably against our competitors.Our first competitive advantage is going to be the fact that we would be purchasing and stocking at least two concession stands that would offer customers in different strategic locations, the options of availability.Also, we have in our employ, competent and professional staffs that are highly experienced in this kind of business and know therefore what it would take to ensure that we achieve our intended goals and objectives and become a force to be reckoned with.Another advantage to our business is that we are strict in the quality and type of food that we offer our customers because we understand that this is a sector that would need us being careful so as to avoid being branded in a negative light and therefore chasing off our customers.Finally, our employees are well paid with a welfare package that rivals that of others within the same category. We are also willing to ensure that our employees undergo continuous training in order to not only enhance their skills but improve their productivity efficiency. Marketing StrategyMarketing is a very essential aspect of a business. In order to correctly understand the needs and of our target market, we had a local company conduct a market research. By doing this, we will better understand the needs and wants of our target market. The data we received from the market research will help us attract the customers and allow us to compete against competitors. To ensure that we conducted an accurate market research, we intend to hire the services of a reputable marketing consultant, that not only understands the market, but what marketing strategies would best fit our concession stand business. In order to continue the growth of our business, we will empower our marketing and sales team to not only draft effective marketing strategies and create new markets for our concession stand business but we will empower them to be enable to deliver on corporate sales and marketing goals.In summary, we will adopt the following marketing activities and sales strategy at The Fayetteville Swampdogs Concession Stand in order to sell our wide range of food products; • Direct mail• Telephone solicitation• Seminars or business conferences• Joint advertising with other companies• Word of mouth or fixed signage• Social media marketing such as Facebook, Twitter, and Instagram Financial PlanEvery business requires capital in order to start up; and the capital usually goes into purchasing the bulk of items that will be needed in starting the business and running it successfully. Therefore, the bulk of what we will spend our start-up capital on will take a huge part of our capital. We would be utilizing a building that needs to be upgraded due to regulations and building codes. The remainder of the start-up budget would be used to pay employee salaries and utility bills for at least 6 months.The bulk of what we would spend our capital on are;• Fees for registering a business in North Carolina – $200• Vendor’s license, location seller’s permit, accounting software, and several other legalities – $1,250• Hiring a business consultant – $1,000• Insurance coverage (general liability, workers’ compensation, property liability) – $3,000• Start-up inventory cost (food products, straws, ketchup, mustard, cotton candy machine, warming units, grill, microwave oven) – $35,000• Other start-up expenses (computer, printer, cell phone, packaging materials) – $10,000• Storage materials (bins, shelves, racks, storage pods) – $18,000• Marketing promotion expenses (concession grand opening promotional activities as well as general marketing promotion activities) – $3,000• Operational cost for the first six months (salaries of employees and payment of utility bills) – $100,000• Website- $500• Miscellaneous – $3,000From the above analysis, we would need an estimate of $174,950 in order to successfully start-up and run our concession stand business successfully (Martins, 2019).
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