MAGGIE’S BULLDOG BREWING AND RESTAURANT 2009 BUSINESS EXPANSION PROJECT Sean Beard CRTV 302 Drexel University

Project Goals Expand restaurant chain to at least 5 new locations Expand brewery operations to distribute beer on a regional level Maintain quality standards for both restaurant and brewery Establish cost efficient practices to keep expansion costs as low as possible Establish standard practices that will achieve consistency throughout all areas of operation

S TAKEHOLDERS Project Stakeholders Kristen-majority owner of Maggie’s Bulldog Brewery Brian and Jennifer-investors with 20% stake in business Sean-head brewer for Maggie’s Employees-currently 20 employed between the two existing locations Community Families

W HY E XPANSION ? Why Expansion? Maggie’s Bulldog Brewery and Restaurant currently operates out of two locations in a geographically centered area. Given the current economic situation it may seem the timing is not right, but expansion will capitalize on the growing craft beer market. Expansion will allow: Expanded income potential Facilities to distribute their beer into a larger geographic area Larger recognition for their brands

W HY E XPANSION ? Why Expansion? The craft brewing industry produced nearly 8.6 million barrels of craft beer in the U.S. in The fastest growing sector craft brewing sector continues to be microbreweries, showing customer support for local breweries. The craft brewing sales share as of December '08 is 4% by volume and 6.3% by dollars. Total U.S. craft brewing industry annual dollar volume is $6.3 billion. 1

P ROJECT C HALLENGES AND I DEAS Main Challenges Facing Project Establishing differentiation from local competitors Creating infrastructure(facilities) for project Cost Strategies to overcome challenges What do you know?: Work with the owner, Kristen, to find out what her strengths and weaknesses are. Clear focus on goals: Make sure the owner is clear about the goals she has and if they are truly achievable. Analyze past success and failures: What has and hasn’t worked in the past. Do not make the same mistakes twice! What if?: What if the project is not successful? What if the project is wildly successful? Creative Ideas for Business Expansion Researching historical records to find styles of beer that are unique to the area. This could help in finding beers that could be produced that are different then any the competition is currently producing. Finding cost effective alternatives to/for opening new brewery. Contract brewing offers the opportunity to have beer brewed by larger brewing company which means no new facility is required for production. Looking for sources of used brewing equipment. As breweries expand they will tend to outgrow their brewing equipment. This gives Maggie’s the opportunity to save money versus buying new brewing equipment. Hiring an engineering firm like ICC Inc. to help design an installation which will suit the needs of the expanded business. Finding unique avenues for new storefronts. Market research is needed to find which areas would be most effective for new storefronts, emphasis needs to be on being able to bring daily traffic into new restaurants. Allowing employees and stakeholders the ability to have input in the expansion process. Brainstorming sessions with employees could be used to find ideas and best practices that can help the expansion be more successful. This can also help to identify practices that can keep costs down. Finding support in the communities where expansion is targeted. Working with local chambers of commerce to find which area would best support expansion of business.

E VALUATION P LAN Evaluating Project Success How will we measure success for Maggie’s? Did we hit the critical goals for the project? 1.Expansion to 5 new restaurants 2.Securing facilities/means to expand distribution of packaged beer 3.Cost efficiencies- Were we able to achieve goals while keeping costs down? 4.Quality-Is Maggie’s able to keep the quality that it has been known for while expanding? 5.Finally, were we creative? What has Maggie’s done to differentiate itself as a brewery/restaurant?

R EFERENCE Reference Brewers Association. (2/23/09). Craft brewing statistics. Higgins, J. M. (2006). 101 creative problem solving techniques (First Edition ed.). Winter Park, Florida: New Management Publishing Company, Inc. ICC Inc. ICC inc.

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