Marthas Cellar

Marthas

Evan Billek, Rachel

Buttery
Kenny Wade, Courtney Winegar

Marthas Vineyard, Massachusetts

Marthas Cellar

Table of Contents
Table of
Contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 2
Executive
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 3
Business Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 4
Industry & Competitor
Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
S
W
O
T
Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 8
Target Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 8
N
i
c
h
e
Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 9
Marketing & Sales Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 9
O
p
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Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 11
Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 13
Start-Up Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 14
I
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Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . .15
B
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Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 16

Marthas Cellar

Cash Flows Statement . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . .16
O
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Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 19
F
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Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 20
Works Cited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 21
Brochure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 21

Executive Summary
Introduction
Marthas Cellar strives to be the leading wine bar and lounge in Marthas Vineyard.
Our wine and fine hors doeuvres offer an elegant experience with a relaxing
atmosphere for our clientele. We offer products and services that appeal to our
customers and support their lavish lifestyle.
Company Description & Overview
Marthas Cellar was established in 2015 by Evan Billek, Rachel Buttery, Kenny Wade,
and Courtney Winegar. The four of us combined make up The Main Thirst Factory
Company. This business is an upscale, wine bar and lounge for the residents and
tourists of Marthas Vineyard area. Our business provides an entertaining and
educational environment for our guests through our atmosphere and classes taught by
our sommelier.
Product & Services Overview

Marthas Cellar

Marthas Cellar is designed with a relaxing, tasteful atmosphere where our customers
can enjoy a fine glass of wine. We offer a variety of wines from around the world
including local wines from Marthas Vineyard. Our wine selection ranges in price from
moderately to high-priced wines to suit the needs of a larger target market. We also
offer a menu consisting of hors doeuvres that pair well with our wine options.
All of our employees are highly trained by our on-staff, certified sommelier. They are
also trained to place high emphasis on excellent customer service and cater to our
customers. Aside from staff services we also provide wine education classes, wine
tastings, and pairing seminars.
Marketing Overview
The target market for Marthas Cellar is the middle to upper class, ages 35 and up,
wine-loving community of Marthas Vineyard. Since Marthas Vineyard is also a tourist
destination, we want to attract their business as well. Our core customers will be the
older generations who want to enjoy a great environment and a glass of fine wine.
We plan on promoting our business by partnering with local wineries, importing wines
from around the world, and sponsoring local events. We will also promote our business
through local radio and newspaper ads, fliers, and products with our logo printed on
them. We also offer a rewards card to our loyal customers to redeem free items after
a specific amount of points.
Operations Overview
Marthas Cellar is open Sunday thru Thursday from 3 p.m. to 11 p.m. and Friday and
Saturday from 3 p.m. to 12 a.m. We are a smaller establishment with max capacity of
50. We have bartenders, servers, cooks, a sommelier, managers, and an accountant on
staff.
Financial Overview
Among all four partners we can come up with $100,000. We are asking for a $50,000
bank loan for our remaining expenses. Based on our business model and objectives,
we believe we can be successful enough to break-even and repay our loan within one
year.
Conclusion
The four partners firmly believe that Marthas Cellar will be a profitable business. We
believe that how we manage our business and provide excellent products and services
will only make us more successful. Our marketing and operations plans will only
further our success. We believe Marthas Cellar will become a staple to the Vineyard
Haven area.

Business Description

Marthas Cellar

Marthas Cellar is a wine bar and lounge based solely on fine wine and sophistication.
Our establishment is located in Marthas Vineyard, Massachusetts because this
location is known for being an affluent summer colony. We will be open Monday
through Thursday between the hours of 3 pm and 11 pm and Friday through Saturday
from 3 pm to 12 am. The wine bar and lounge will start out as an individual
establishment, with the intent to have opportunities to expand more on the east
coast. Our building will be moderate in size with a max capacity of 50 people.
Our history is one of friendship and entrepreneurship. During a fine evening of
catching up with old friends in the Boston area, our four founders, Evan, Courtney,
Rachel and Kenny, came up with the idea that led us to the Marthas Cellar Wine Bar
and Lounge. Each of us had ordered a different wine to go with dinner and
subsequently wanted to try what the others had and just kept ordering wine after
wine, because some of the best ideas come from long nights with good wine and good
friends. The key motivation overall was to provide others with a great night just like
the one we had shared. Also, all of us being wine connoisseurs, we wanted to dive
into our passion and provide and/or introduce others to the wonderful world of wine.

At the start of Marthas Cellar, all partners have received degrees in hospitality, as
well as certifications such as ServSafe and Hospitality Accounting. Rachel also has a
degree in culinary arts, as well as experience in restaurants. This makes her the
perfect kitchen manager. Evan is the strongest in our group with finances and
accounting practices. He has a lot of managerial experience in restaurants and
country clubs. This makes him the perfect accountant. Courtney also has a degree in
event management, as well as a lot of experience in event planning. This makes her
the perfect event planner. Kenny has a lot of experience in managing bars and bar
services, which gives him a defined knowledge of bar operations. This makes him the
perfect bar manager. Collectively, we are Marthas Cellars general managers.
Our wine menu will be constantly changing based on prices, availability, and
seasonality. We plan to have at least 20 different wines in rotation at any given time.
Our wines will be ranging in price from moderately-priced to high-end priced.
Our food menu will be consisting of hors doeuvres that have been hand selected by
our chef and sommelier to pair nicely with our current selection of wines. This means
that our food menu is also on rotation based on the types of wine we have in stock.
Our servers are well-trained to assist guests in food pairings.
Our business was established to give the public a wide variety of services. One our
services includes our certified sommelier providing wine tastings to the general public
at least one a month. The sommelier will also be giving classes about what wines pair
well with what foods and wine education classes. We will also allow our space to be
rented out for private parties and events.

Marthas Cellar

Our mission statement is to provide world-class wine and hors doeuvres to create the
highest quality social and educational experiences to the residents and tourists of
Marthas Vineyard, MA.
Our vision statement is to enhance peoples knowledge and enjoyment of wine.
Our values and goals are education, quality, and service. We strive to educate the
customers through wine tasting and pairing seminars. We believe the more our
customers know about our selected wines and food, the higher their satisfaction will
be with our products and pairings. We focus on high quality wines ranging from
moderate to high prices to accommodate the various interests of our diverse
customers. The food we offer will be chosen and purchased with care to ensure high
quality taste and freshness that will enhance/complement our selected wines. We
place high emphasis on training our employees. All employees will be trained by our
excellent, certified sommelier.
We feel a strong need to give back to our community and hold ourselves responsible
for what is going on around us. We pledge to always use fresh, local ingredients in any
food that comes out of our kitchen, using the delicious local seafood whenever
possible and highlight local wines. We plan on being as eco-friendly as possible as
well. Due to our ever-changing wine list and food pairings we would utilize iPad
menus instead of printing off paper menus. We will also be utilizing a large
chalkboard to display food options for that day. Lastly our wine bottles will be
recycled along with any other items deemed recyclable.
Business Objectives
Marthas Cellar wants to maintain a profit. We will make sure that our revenue stays a
head of our costs. We will measure our success by comparing our profits to our costs
at the end of the periods and keeping a firm grasp on our bookkeeping.
Marthas Cellar wants to be a productive business. We will make sure our staff is
trained properly on procedures, equipment use, and the use of our facility. We will
provide any and all resources our employees need to stay productive. We will measure
our success by comparing our actual results to our expected results. We will also
periodically check in with employees through employee reviews and staff trainings.
We wish to keep a positive and upbeat environment with our staff to maintain a high
retention rate.
Marthas Cellar wants to have excellent customer service. We want to keep our
customers and retain repeat revenue. We want our customers to be happy and
satisfied by their experience from the minute they walk in the door and long after
they leave. We plan to teach our entire staff excellent customer service skills and
create an environment that goes above and beyond for our customers. We will
measure our success by customer reviews, online comments, and physical interaction

Marthas Cellar

with the customers. Any customer complaints will be fixed and put under review by
the entire staff.
Marthas Cellar eventually wants to expand their market share to other parts of the
east coast. We would like to grow our company into a profitable wine bar and lounge
chain. Once our business is up and running we will increase our revenue by attracting
more customers to buy our products. We will measure our success by determining how
desirable our store and products are.
Marthas Cellar wants to create strong brand loyalty with our customer base. We will
use advertising, quality of wine and food, and customer service skills to build our
brand loyalty. We will eventually try to create a loyalty program such as a reward
card. We will measure our success by calculating our customer base.

Industry and Competitor Analysis

Analysis of the Industry
There are 166 restaurants in Marthas Vineyard. These restaurants each provide a
varying degree of wine and food service. Of these 166 restaurants, 9 restaurants/bars
will be our main competition. These 9 restaurants/bars are well-known in the area for
their bar and nightlife scene. All 9 of our main competitors are located in the
Edgartown or Oak Bluffs areas. In order to not saturate the market, we will be
locating in Vineyard Haven, which gives us a competitive advantage. Marthas
Vineyard restaurant and bar industry is in the maturity stage of the growth cycle.
There are many bars and restaurants for the people of the area to choose from. We
will stand out from our competition because we are not offering just an
entertainment experience, we are also offering an esthetic and educational
experience. There are 4 Es in the hospitality industry: educational, entertainment,
esthetic, and escapist. We are utilizing 3 of the 4 Es in our business: educational,
entertainment, and esthetic.
Our main competitor is Letoile, which is a French seasonal cuisine restaurant and bar.
They, like us, offer a rotating schedule of wines and hors deouvres. We will stand out
from them because we offer more services. They do not offer the educational classes
that we do. They are operating under 2 Es (entertainment, esthetic), while we are
operating under 3. We will attract more customers because we are located in a niche
market, our bar hours are longer, and we have a sommelier-trained staff. We are also
set apart from our competition because we are open year-round.
Our 2nd main competitor is Offshore Ale Company, which is a brewery and restaurant.
They brew 6 different beers, as well as provide other unique craft beers. They provide
traditional American cuisine. They are able to provide weekly tours to their guests
because they brew the beer on-site. We will stand out from them because we provide
an upscale, refined experience while Offshore provides a casual, laidback experience.

Marthas Cellar

We also stand out from them because we offer different products and services, such
as wine, hors deouvres, and education classes.
One major trend in the Marthas Vineyard area is that we are locating in a town that
has recently in 2010 allowed the selling of wine and beer. We are breaking into this
trend by being the first to locate in Vineyard Haven. Another major trend, on a larger
scale, is that the popularity of wine bars is growing tremendously. There are now
around 80 million Americans drinking wine at least once a month. (Wine Industry
News, 2011) This is a 9% increase since 2009. Another trend, specifically in the wine
industry, is the popularity of Portuguese wines. We are planning to break into this
trend by featuring Portuguese wines at the start of our business. (Lenart, 2015)
SWOT Analysis
Marthas Cellar has several strengths in our business. We offer a variety of wines from
moderate to high prices to appeal to all price ranges of our clientele. The lounge
aspect of our facility provides a relaxing atmosphere for our guests to socialize and
enjoy our wine and hors deouvres. Our competitors do not offer wine pairing
seminars to provide educational experiences to their guests. We offer rewards
programs to customers for added value of our products and added importance to our
customers.
A major weakness our business has is that we currently only have one location. This
can make it difficult for our clientele to find our location, as well as having adequate
parking space. Another weakness we have is that Marthas Vineyard has higher
property taxes.
The biggest opportunity is that we have opportunities to grow our business in the near
future. This can include moving our current location to a large facility or even to
expand to other locations along the east coast. Another opportunity we have is that
we are able to change the wine we purchase and sell based on what is popular. This
will give our customers a variety of wines to keep them interested and experienced.
One threat we
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Marthas Cellar

fluctuation in the price and quality of wine.

Target Market & Customer Demographics

Our core customers are going to be males and females that are wine enthusiasts. We
are specifically targeting upper-middle class couples between 35-65 years old.
Although everyone is welcome, we are not targeting families or elderly people. 53.7%
of households in Marthas Vineyard are households without children. (Figure 1) We are
targeting singles or couples. 47.6% of residents of Marthas Vineyard are married.
(Figure 2) Most of our customers will be working class individuals with an average
income of $100,000 per household, which allows them to have a higher disposable
income. The average income per household of residents of Marthas Vineyard is $116,
000. (Figure 3) (Point2 Homes, 2014)
Figure 1:

Figure 2:

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10

Figure 3:

Niche Market
As previously stated, we are a part of the wine bar and lounge market. We are the
only wine bar and lounge in the Vineyard Haven area, in large part due to the fact
that beer and wine were not allowed to be sold there until 2010. We cater specifically
to couples of higher income levels. We also have put a strong emphasis on education
our customers. These characteristics make up our niche market.

Marketing and Sales Plan

Marketing Strategy
Our business is comprised of 3 experiential strategies: education, esthetic, and
entertainment. Marthas Cellar provides an educational experience by teaching our
customers about wine, wine pairings, and wine tastings. We also educate our
customers by having a well-educated staff who can walk them through our menus.
Marthas Cellar provides an esthetic experience by creating a relaxing, calm
environment for customers to relax in while they enjoy their wine and food. The
warm dcor, the soothing music, and the wine options all contribute to the esthetics
of Marthas Cellar. The location is also set in a prime environment that adds to our
esthetic feel. Marthas Cellar provides an entertainment experience by enticing all
five senses. The aroma and tastes of wine and food, the peaceful music and the
soothing ambiance of the room speak to all five senses.

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11

Marthas Cellar is developing a brand image by putting our logo on all of our property,
our signage, and our promotional items. Our logo is our store name in wine red with a
watermark of a wine glass to appeal to the esthetic sense of our bar and lounge. Our
logo is designed to be simple and modest to go along with our bar and lounge theme
of relaxation. Our website, bar front, promotional items, and inside signage are all
uniform in appearance to strongly present our brand image.
We plan to promote our bar and lounge by partnering with a local farmers market.
We will have a booth at the farmers market and will purchase a lot of our fresh
ingredients from there. We will also be putting fliers up at local businesses and
allowing the use of our in-store bulletin board. We will promote our business through
local newspaper ads. We will be offering rewards cards as a loyalty program to our
customers. There is no charge to sign up for our loyalty program. A certain amount of
money spent will go towards points on the rewards cards. The points can be redeemed
in the form of discounts on our products, free glasses of wine, or free admission to
wine tastings.
Marthas Cellar will evaluate the effectiveness of our experiential strategies by
keeping up-to-date on current wine and food trends. We will get this information from
prominent organizations like the National Restaurant Association, American Institute
of Wine and Food, United States Sommelier Association, and the American Wine
Society. We will monitor our educational, esthetic, and entertainment offerings by
having our customers fill out surveys, comment cards, and having our staff inquire
about the customers experiences.
Marthas Cellar will evaluate our branding strategy by examining the fluctuation of
sales in response to putting our promotional items around the community.
Marthas Cellar will evaluate our promotional advertising strategies by keeping track
of the number of comment cards and reward card points used in a designated period
of time. Our survey will have questions about how and where customers heard about
us. Based on this information we will evaluate our strategies and make the desired
changed to increase the effectiveness of our promotional advertising.
We have a $5000 budget designated for marketing and advertising. We plan on
spending $4000 designing an interactive website. Our loyalty programs initial costs is
$600 and a $40 recurring cost for maintenance and updates. We have a monthly
recurring cost of $188 to advertise our business in the Marthas Vineyard Times. We
will be spending approximately $100 a month for local flyers or other promotional
advertising techniques. Our start-up budget for marketing and advertising is a lot
higher than our monthly budget for marketing. Our website and loyalty program are
one-time payments. We will have smaller recurring payments for our loyalty program
maintenance, promotional advertising and newspaper ad. (Figure 4)The four general
managers are in charge of the marketing and sales for Marthas Cellar.

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12

Figure 4:
Marketing and Advertising Start Up Budget
Website Design
Loyalty Card Program

$4,000
$600
$40/mth

Newspaper Ad

$188/mth

Local Flyers/Other Promotional

Activities

$100/mth

Total Cost
Total Monthly Costs

$4,888
$328

Media
A major marketing trend that has come about in the past few years is the use of social
media. Facebook and Twitter are the most major sources of social media marketing,
along with LinkedIn and Instagram. Marthas Cellar plans to create Facebook and
Twitter accounts at the start of the business for free marketing. We will utilize these
by promoting our store, making special announcements, and engaging our public. We
will create a LinkedIn with our business information after the bar and lounge is up and
hopefully successful. We will also have an Instagram account for our customers to
view pictures of our establishment, wines, and foods.
Another major marketing trend is the integration of electronic devices. Companies
are increasingly integrating electronic devices into their stores. More consumers are
continuing to buy smart phones and tablets, and these devices will only increase in
their abilities and applications. (Temkin, 2014) At the start of our business, Marthas
Cellar will have tablets in-store for customer and staff use. We will allow our
customers to use the tablets as menus and our staff to use the tablets for orders to
ensure our green-initiative policy.
We will also always maintain an updated website. Our website is an informational tool
for our public with our business information such as hours of operation, business
description, and contact information. Our guests can sign up for our educational
classes online. They can also view an updated list of our rotating wine schedule.

Operational Plan
Our business is considered a partnership between Evan Billek, Rachel Buttery,
Courtney Winegar, and Kenny Wade. Each of the partners contributes into all aspects

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13

of our business, which includes the money, property, and labor. Each of the partners
also shares in the businesss profits and losses. All 4 partners are involved in the
decision-making processes. (SBA, 2015)
All four business partners are considered general managers of the business and will all
be on site often. Rachel Buttery is the kitchen manager and will oversee all things in
the kitchen area which includes 2 full-time cooks. Evan Billek is the financial manager
and will oversee all things finance. Courtney Winegar is the events manager and will
oversee all of the event planning and education classes. Our sommelier is on retainer
for our events and employee training. Kenny Wade is the front-of-house manager and
will oversee five part-time staff members that will serve the wine and food.
All four business partners are in various levels of salary positions. Our five servers are
our highest-paid positions under the general managers because they have more
responsibilities than back-of-house. They are in charge of pouring and serving the
wine and food, as well as being highly educated in the wines. They are compensated
on an hourly rate, plus tips. Our two full-time cooks are paid hourly. They are in
charge of food preparation and presentation. Our sommelier is on retainer and will be
compensated per event.
We plan on hiring locally, but we will only hire 21 year olds or older so that all of our
staff may pour and server our wines legally in the state of Massachusetts. Because we
are all hospitality students, we plan on offering an internship for the summer during
our busier times. We plan on recruiting locally and with online ads and social media.
We prefer on hiring employees who are well-versed in wine and customer service, but
this is not a requirement.
The kitchen will contain a flat-top grill, oven, stove top, deep fryer, and dishwasher.
We will have an industrial size cooler and freezer. The back-of-house will be counter
area as well as all cooking utensils needed. The bar will contain a cooler system for
our white wines and wall racks for our red wines. We will also have a behind-the-bar
glassware dish washer. Our bar will contain all of our tableware which includes all
white and red wine glasses and champagne flutes, etc. Our front-of-house lounge area
includes tables, chairs, couches, coffee tables, lighting, etc.
Marthas Cellar will implement several policies and procedures. We will make sure all
staff is trained to check all proper forms of identification and only allowing 21+ to
enter our establishment. We will implement a No proof, no service policy. We will
train our staff to look at all IDs no matter how old the person may look. Our staff will
be trained on how to identify fake forms of identification as well as how to confiscate
fake forms. Only acceptable forms of identification will be permitted. They will also
be trained on how to refuse service to visibly intoxicated guests. All staff will follow
all procedures related to the state, county, and municipal laws. Failure to follow any
policies will result in a verbal warning followed by suspension or termination.
(Services, 2015)

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14

Financial Plan
Start-Up Costs
Opening a restaurant always requires a lot of start-up costs that are required for any
business. Marthas Cellar has multiple start-up costs necessary prior to the start date
of our business. Some major costs include buying furniture and equipment, and our
building rental. We got lucky with the site selection for our restaurant because it was
previously a storefront and is located in a high-traffic area in Vineyard Haven. We will
be putting a lot of our money into renovations for a kitchen. We will also being paying
a monthly rent and utilities for our site. We decided to rent instead of building or
buying for many reasons, one being that land purchasing costs are very high in
Marthas Vineyard. Labor cost will be an initial and ongoing cost. Another major cost is
stocking our inventory with food and beverages, and additional supplies. Food and
beverage costs are our most fluctuating variable because the costs change with the
economy. Along with the initial costs for food and wine we will be buying dcor,
tableware, office supplies, and other general needs. We will need to purchase
insurance, permits, and licenses for our business. We do not need to hire an
accountant because Evan Billek, one of the general partners, is our accountant.
Another major start-up cost we have is marketing which includes signage, fliers,
business cards, table, and a website. (Table 1)
Sources of Funds
Marthas Cellars start-up source funds comes from the partners combined savings,
plus a $50,000 bank loan. The partners each have put in 25% of our initial funds. We
are asking for a $50,000 bank loan to cover the rest of our expenses.
Income Statement
Our income statement (Table 2) shows an example of our expenses versus the revenue
expected in Marthas Cellars first year. We calculated our revenue by estimating that
we would have approximately 59 transactions on average per day, with an average of
1778 per month.
Break-Even Analysis
Our break-even analysis (Table 3) shows that our break-even point for a month is
$25,649, which is 680 transactions in a month. Our business will make enough revenue
to break-even. In order for our business to reach the break-even point we need 59
transactions daily and 414 weekly. Our average transaction is $37.72 because we
expect most couples to purchase a moderately-priced glass of wine in the $13-14
range plus a food item for $8-9 plus tax.

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15

Cash-Flow Statement
Marthas Cellars cash flow statement (Table 4) shows the working capital during year
one. Our cash flow statement explains how much cash we have on hand.

Table 1: Start-Up Costs

Marthas Cellar Start Up Costs

Building Rent

$1,700/mth

Building Renovations

$15,000

Furniture and Decorations (Tables, Chairs,

Bar Stools, etc.)

$10,000

Glassware and Bar Tools

$300

Kitchen Equipment (Fryer, Flat Top, Grill,

Cooler, etc.)

$35,000

Liquor Licenses and Permits

$350

Wine Inventory

$35,000/mth

Food Inventory

$10,000

Wages/Salaries

$7,000/mth

Marketing/Advertising

$5,000

POS System

$11,000

Utilities

$1,000/mth

Security System

$2,000

Wine Storage System

$17,000

Total Start Up Costs

$150,350

Marketing and Advertising Start Up Budget

Website Design

$4,000

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16

Loyalty Card Program

$600
$40/mth

Newspaper Ad

$188/mth

Local Flyers/Other Promotional Activities

$100/mth

Total Cost
Total Monthly Costs

$4,888
$328

Table 2: Income Statement

Project Income Statement
Period Ending

Year 1

Sales

478,548

Cost of Sales

161,208

Gross Margin

317,339
66%

Operating Expense
Salaries

14,300

Benefits and Employer Deductions

14,300

Rent

1,700

Common Expense

900

Taxes

6,600

Utilities

1,000

Repair and Maintenance Equipment

600

Phone

720

Security System and Maintenance

2,000

Business Licenses

2,500

Liquor Licenses

350

Cleaners and Chemicals

1,550

Legal and Accounting Fees

2,200

Loyalty Card Maintenance

60

Advertising

500

Loyalty Cards

600

Marthas Cellar

17

Project Income Statement

Period Ending

Year 1

Website

4,000

Total Operating Expenses

215,088
44%

Operating Profit (PBIT)

102,251
22%

Interest

3,847

Depreciation

3,400

Profit before Tax

95,004

Provision for Income Tax

34,170

Profit after Tax

60,834
13%

Table 3: Break-Even Analysis

Breakeven Analysis
Selling Price

$37.72

average per meal

Direct Costs

$10.01

average per meal

Fixed Costs

$18,840

per month at beginning of second year

Break Even Point

680

meals per month

Normal Rate

1,778

meals per month at beginning of second

year

Meals per Month

$/month Fixed
Cost

$/month Total Cost

$/month Revenue

$/month Profit

$18,840

18,840

(18,840)

340

$18,840

22,243

12,825

(9,418)

680

$18,840

25,649

25,649

1,434

$18,840

33,196

54,090

20,894

1,912

$18,840

37,982

72,120

34,138

Table 4: Cash Flow Statement

Marthas Cellar

18

May-15

June-15

July-15

Aug-15

Sep-15

(7,420)

(9,763)

10,944

631

635

Depreciation

283

283

283

283

283

Change in
Accounts
Payable

Inc (Dec)
Other
Liabilities

Operating Line
(repayment)

35,000

(5,000)

(5,000)

Term Loan
(repayment)

50,000

(500)

(500)

(500)

(500)

65,283

(217)

(5,217)

(5,217)

(217)

Change in
Accounts Rec

Change in
Inventory

(1,430)

(1,993)

(1,252)

Inc (Dec) in
Other ST
Assets

Capital
Expenditures

34,000

Dividends

Subtotal

34,000

(1,430)

(1,993)

(1,252)

Net Cash
Flow

23,863

(8,550)

7,720

3,333

418

27,313

18,763

26,484

23,151

23,569

Profit After
Tax
Plus:

Equity Input

15,000

Subtotal
Less:

Cash Balance

3,450

Mininum Cash
Balance

$18,763

Occurs in
Month

Nov-01

Oct-15

Nov-15

Dec-15

7,203

7,233

*May-Dec
3,333

Marthas Cellar

19

Oct-15

Nov-15

Dec-15

283

283

283

(5,000)

(5,000)

(5,000)

(500)

(500)

(500)

(5,217)

(5,217)

(5,217)

538

714

538

714

2,421

1,273

2,016

21,147

22,420

24,436

Marthas Cellar

20

Staff Organizational Chart

Business Partners

Rachel Butter,
Kitchen Manager

Evan Billek,
Financial Manager

2 Part-Time Cooks

Marthas Cellar Floor Plan

Courtney Winegar,
Events Manager

Sommelier

Kenny Wade,
Front-of-House
Manager

5 Part-Time
Servers

Marthas Cellar

Works Cited

21

Marthas Cellar

22

Lenart, J. (2015, January 13). Top Somms Predict The Hot Wine Trends Of 2015.
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top_somms_predict_the_hot_wine_tren.php
Point2 Homes. (2014, January 1). Retrieved April 7, 2015, from http://
www.point2homes.com/US/Neighborhood/MA/Martha27s-Vineyard-Demographics.html
Small Business Administration. (2015, January 1). Partnership. Retrieved April 9, 2015,
from https://www.sba.gov/content/partnership
Temkin, B. (2014, Jan 08) 14 Customer Experience Trends for Marketers in 2014.
Direct Marketing News. Retrieved from http://www.dmnews.com/14-customerexperiencetrends-for-marketers-in-2014/article/328535/
Wine Industry News. (2011, February 23). Retrieved April 7, 2015, from http://
www.winebusiness.com/news/?go=getArticle&dataid=84438