Saskatoon Brew Pub Clint Alberts Tracey Helgeson Elan Jalbert Jennifer Thomas

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Introduction  Guy Keeler is a crop consultant in Saskatoon.  Location  51 st Street  Small Restaurant  Snack foods and a few simple meals

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Organizational Structure Board of Directors Internal (5), External (2) President (1) Facility Manager (1) Kitchen Manager (1) Servers (5) Cooks (2) Head Bartender (1) Bartenders (8) Office Clerk (1) Brew Master (1)

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan An Average Business Week  Open the business Monday- Saturday at eleven o’clock in the afternoon.  Closing is a two o’clock in the morning.  Sunday will be open eleven o’clock in the afternoon until twelve midnight.  Brewing once a week when needed.

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Competition  Other brew pubs  Maguires, The Fox and Hounds, The Hose and Hydrant, Whiskey Jacks  Little competition in area of setup  Lots of indirect competition  Night clubs, other drinking establishments

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan The Market  213, 607 current population of Saskatoon  159,140 between 18 and 65  $53,000 average household expenditure  $ spent on alcohol and tobacco yearly  Approx. 83 liters consumed yearly per Canadian; 79% of which is beer

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Segmentation Name of SegmentIndustrial Workers Young Professionals Middle AgeOldies Age range Needs and benefits- convenient - low price - high quality - nice atmosphere - high quality -relaxing atmosphere Geographics - work in the industrial area - all areas- residential areas - small residential areas Socioeconomics -lower – middle class -middle class Psychographics- socialising - work- hard, play – hard attitude - family orientated - traditional - brand loyal Demographics - some disposable income -single - some disposable income - family - disposable income - conservative Usage- medium-high - medium Beer purchased - in-house ales if competitively priced - well known brand

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Selling and Advertising  Discount days  Handing out coupons  To industrial workers  Visiting businesses in the area  Target workers in the Industrial Area  Put flyers up  Coupons on the back of tickets at SaskPlace  Some Advertising on radio

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Capital Budget CategoryAmount Building (lease & furnishings) $64,475 Equipment (brewing & restaurant $150,685 Working Capital $42,840 Total$258,000

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Financing Budget Financing Source Amount Long Term Debt $80,000 General Partners $90,000 Limited Partners $88,000 Total$258,000

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan The Brewing Process Grain Mill Hot LiquorMash TunKettle Filter Fermenter Bright Beer Tank Serving Tank

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Sensitivity Analysis Summary (170 Customers) Net Income $910$24,909$39,080 End of Year Cash $100,831$101,766$109,849 Dividends Paid $0$50,831$51,766 (149 Customers) Net Income ($66,067)($30,197)($11,307) End of Year Cash $33,685$30,401$39,859 Dividends Paid $0$0$0

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Cost of Production Cost of Production per Pint and Ounce of House Draft 2004 Direct Materials $8,082 Direct Labour $59,835 Total Direct Costs $67,917 Cost per Pint $3.66 Selling Price $4.00 Cost per Ounce $0.23 Selling Price $0.25

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Conclusion  This brew pub has a good chance of being successful  Key factors controlling this  the amount of clientele each day  hiring quality staff  brewing a good beer

Saskatoon Brew Pub, Guy Keeler Comm College of Commerce, University of Saskatchewan Questions/Comments