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Modelled on a complete business plan of a bar in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
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This template includes a complete business plan, with a financial forecast and the following sections:
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Gina Cocktail Bar will be a cocktail bar located on rue Ecuyère in Caen.
The bar will have a menu of 150 cocktails with and without alcohol, as well as bar snacks to accompany the drinks. Such snacks will include cocktail sausages, olives, crisps and peanuts.
Once renovated, the bar will have a seating capacity of 16 and a heated outdoor terrace with a seating capacity of 25.
One of the liveliest streets in Caen, Rue Ecuyère is famous for its wide range of bars, therefore benefiting from an extensive catchment area.
Gina Cocktail Bar will be a limited company. It will be managed by Ms. Gina T, a cocktail enthusiast who acquired an in-depth knowledge of the industry during her 10-year career as a bartender.
French Market
According to a 2013 report by INSEE, sales in the French bar market reached €6.6bn in 2013, a 4.4% decrease compared to 2012.
The sector, which includes 42,232 companies, has faced challenges for several years.
At the opposite end of the spectrum, cocktail bars are on the upswing. While other types of pubs are closing down, cocktail bars are increasingly popping up within France.
Benefiting from an aspirational and trendy image, cocktail bars attract a wide target market. Young people, notably young professionals, are the number one consumers of cocktails within France.
The average price of an alcoholic cocktail is €8.40, whilst non-alcoholic cocktails tend to cost around €6.20.
Local Market
In 2012, the city of Caen had a population of 111,342, with the urban area of Caen la Mer including 242,182, enabling the bar to benefit from a large pool of potential customers nearby.
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With over fifty bars in the city centre, Caen has an established nightlife culture. Most of the bars are situated around rue Ecuyère, the port, rue Saint Pierre, and place Saint Sauveur.
Target Market
We have identified two types of potential customers:
Competition
There are already 10 bars, as well as 2 brasserie bars, on Ecuyère street.
Although they're in direct competition, the close concentration of bars brings an attractive and lively atmosphere that makes rue Ecuyère the epicentre of Caennaise nightlife.
Although some already offer a limited number of cocktails, most of the nearby places are traditional bars. As a result, the radically different atmosphere and menu (of over 150 cocktails) that Gina Cocktail Bar offers should allow us to set ourselves apart from the street's existing bars, consequently enabling us to develop loyal and regular customers.
We expect to achieve a turnover of €324,094 in the first year, and €360,893 in years 2 and 3.
We anticipate the business will be profitable at the operational level from year 1, however due to the high level of D&A we will record a loss of €-3,397in year 1.
Based on the current plan, EBITDA should represent €6,437 (or 1.99% of sales) in year 1, and we believe that better bar occupancy in subsequent years will allow us to achieve an EBITDA of €28,172 (margin of 7.81% of sales) in years 2 and 3.
The business should be sufficiently capitalized to allow us to honor our loan repayments while maintaining sufficient liquidity to meet any unforeseen events, whilst investing regularly to maintain the bar's standing.
The objective of this business plan is to obtain a bank loan of €52,750 to finance part of the renovation work and the purchase of equipment needed to open the bar.
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If you would like to open your own bar, have a look at our guide.
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Want to open a bar? Check out this guide on how to do the financial projections
Not 100% sure on how to proceed? Read our guide to carry out market research for a bar.