This feasibility study analyzes the potential for opening a Brass Tap Beer Bar franchise in La Crosse, WI. The craft beer industry is growing, but the La Crosse market is not well-aligned with the target demographic of 21-34 year olds earning $75,000-$149,999 annually. The average age in La Crosse is 39 years old and average household income is $60,733. Financial projections estimate losses over the first six years. While two locations were considered, neither fully matched the target criteria. The study does not recommend investing in this franchise in La Crosse due to the market incompatibility and projected financial losses.

1. FEASABILITY STUDY
PREPARED FOR:
Diana Tempski
Maggie McDermott
Nicole Gullekson
PREPARED BY:
JODA Associates
Oliver McBride
Drew Keeley
Ashley Johnson
Jenna Stole
November 6, 2015
1

2. THEBRASSTAPBEERBAR
SUBJECT: The Brass Tap Beer Bar Feasibility Study
TO: Potential Investors NG, MM, DT
FROM: JODAAssociates JS, AJ, OM, DK
DATE: November 6th, 2015
___________________________________________________________________________
The attached report, requested by potential investors, describes the profitability of opening a
Brass Tap Beer Bar franchise in the La Crosse, WI area. We believe the results of this study
will be useful when deciding whether or not this franchise is a wise investment opportunity.
This study based the feasibility of this venture off of four key criteria:
1. If there is a demand for craft beer in the La Crosse area
2. If a suitable location is present in the area
3. Whether or not the franchise would be able to maintain profitability
4. The ability to differentiate from the competition
Secondary research sources include industry databases, demographic databases, government
records, books and online resources. The results, discussed thoroughly in the report as well as
in a formal presentation, indicate there is little evidence of a target market in the area.
Significant losses were forecasted during the first 6 years of operations, deeming this
investment unfeasible.
We would be pleased to answer any questions you may have regarding the results and the
report as a whole following our presentation, or anytime at your convenience. Our firm
thanks you for the opportunity to prepare this comprehensive report, and we hope you find it
helpful in your future investments.
2

3. THEBRASSTAPBEERBAR
EXECUTIVE SUMMARY
The purpose of this feasibility study is to give an educated recommendation on the proposed investment
of opening a Brass Tap Beer Bar franchise in the La Crosse area. Extensive analysis of the macro
environment surrounding the craft beer industry, the local market, and forecasted financial statements
determined this investment would likely not generate sufficient returns and thus is deemed unfeasible.
A detailed analysis determined that the key criteria for success in the craft beer industry include:
- evidence of demand for craft beer - maintaining profitability
- choosing a suitable location - differentiating from the competition
Overall, the alcohol and beer industry is stagnant. In order to find success in this industry, competitors
must differentiate themselves through development of a niche market. Craft beer is the niche market in
which Brass Tap Beer Bar’s find their success. By the end of 2015, the craft beer industry is expected to
see a 13.5% increase in annual revenues from the previous year. The target market for craft beer is
identified as 21 to 34 year olds making $75,000 - $149,999 per year.
The La Crosse Market was examined in depth to determine if had the market characteristics to sustain a
Brass Tap Beer Bar. According to Local Market Research Analyst the mean age is 39.2 years, with
18.9% of the total population falling into the 21 to 34 year old range. This number could be significantly
skewed due to the three colleges in the area that are primarily not accounted for due to student’s lack of
permanent residences. Of the local population, 24.02% reported drinking craft or micro-brewed beer in
2014. The average household income in the La Crosse area as a whole is $60,733, which is significantly
lower than the low end of the target range.
Two locations were evaluated as possibilities for a Brass Tap Bar in the La Crosse area: downtown La
Crosse and Valley View Mall. These two areas were analyzed based off of three main criteria:
- Average annual daily traffic (AADT) between 20,000-25,000
- Local demographics matching target market
- Low saturation with few competitors
125 4th St. S, La Crosse, WI 3800 State Road 16, La Crosse,
WI
AADT 12,000 Cars AADT 25,000 cars
Mean age of 39.2 Mean age of 39.2 years
Median income of $40,457 Median income of $55,982
High saturation and competition Low saturation and competition
Neither location directly matched the target market, however the Valley View Mall location was
deemed more desirable because it better matched the location criteria with higher traffic counts, lower
saturation, and higher income.
Start up costs for the venture were calculated to be $751,000. Half of these costs would be financed
through personal inheritance, while the other half would be taken out via a small
3

4. THEBRASSTAPBEERBAR
business loan with an interest rate of 6% and a life of seven years. Pro forma financial statements
were generated for the first seven years of operations based off of three estimated sales scenarios:
low, medium and high.
Expected
Total Cash
FLows
Payback
Period
Net Present
Value
Low Scenario -$602,998.23 Unrecoverable -$653,739.15
Medium
Scenario
$229,521.09 5.75 Years $11,426.08
High Scenario $1,202,420.80 3.15 Years $778,978.93
Financially, the low scenario is clearly unfeasible, however the medium and high scenarios are projected
to generate a sufficient profit. Based on the analysis of the La Crosse market, it would be difficult to
consistently obtain a medium to high sales level. Therefore, a low to medium sales projection is to be
expected.
Social media would be the most effective marketing channel given the younger target market for a Brass
Tap Bar. The use of social media has the potential to significantly increase brand awareness within the
La Crosse area. Women are underrepresented in the craft beer industry and exemplify an opportunity to
increase sales through more gender-neutral marketing efforts. The Brass Tap reward program, Brew
Crew, is an effective way to bring customers back in as well as encourage customers to try a variety of
items they otherwise might not choose.
If one was to follow through with this investment, the franchise would have to focus heavily on
differentiation through: hiring qualified staff, implementing a strong development program, creating an
innovative menu and providing a lively atmosphere. These factors would aid in developing brand equity
and loyalty.
Through analysis of the craft beer industry and identification of the target market, it has been
determined that the La Crosse area does not fit the requirements necessary for profitable operations.
Although there is evidence of an increasing market for craft beer, the demographics of the area do not
align with the ideal Brass Tap target market. These incompatible demographics would prevent the
franchise from maintaining profitability and being able to choose a wise location. The business would
likely operate at the low sales scenario, thus the project would return losses six out of the seven
projected years. Recovery of the initial investment would take significantly longer than the life of the
project.
It is not recommended to invest in the Brass Tap Beer Bar franchise in the La Crosse area. However if
this project was pursued, substantial differentiation would be necessary in order to operate somewhere
in the medium to high sales scenarios. It is suggested to open it at the Valley View Mall location as it
more closely aligns with the ideal requirements for a Brass Tap franchise. Extensive time and money
would be required to focus on differentiation through: specific marketing strategies, hiring qualified
staff, implementing extensive development programs, providing local entertainment and having an
innovative menu.
4

5. THEBRASSTAPBEERBAR
TABLE OF CONTENTS
Cover page……………………………………………………………………………………....1
Transmittal Document………………………………………………………………………….2
Executive Summary………………………………………………………………………….…3
Table of Contents…………………………………………………………………………….…5
Purpose of Report……………………………………………………………………………....6
Industry Analyses….………………………………………………………….……………...…6
Company Introduction……………………………………………………….……………...…8
Local Market Analysis……….…………………………………………………………………8
Location Selection……………………………………………………………...……………....10
Financial Projections………………………………………………………………………......12
Company Specific Strategies……………………………………………………..…………...13
Recommendations…………………………………………………………………………......17
References……………………………………………………………………..……………….18
Appendices……………..…………………………………………………………………...….20
Appendix A - Traffic Counts………………………..…………………...…..20
Appendix B – Notes & Assumptions …………………………………..……21
Appendix C- Start Up Expenses.…………………………….……………...22
Appendix D- Start Up Balance Sheet…………………………………….... 23
Appendix E- Statements of Cash Flow……………………………………. 24
Appendix F- Income Statements………………………………………..…. 26
5

6. THEBRASSTAPBEERBAR
PURPOSE
The purpose of this feasibility study is to give an educated
recommendation on the proposed investment of opening a
Brass Tap Beer Bar franchise in the La Crosse area. This
report will forecast whether or not this investment would be
profitable within the first seven years of operations. A
detailed analysis surrounding the industry determined that the
key criteria to success include: a local demand for craft beer,
choosing an ideal location, maintaining profitability and the
ability to differentiate from competition.
The study will first highlight the macro environment
surrounding the alcohol and beer industry as a whole in
the United States, as well as focus in on the niche of the
craft beer industry. Secondly, an analysis of the
Wisconsin market and specifically the La Crosse market
will determine if the demand for craft beer exists. These
first two analyses will help determine where, if any,
would be the most suitable location along with foot traffic
counts, demographic makeup and market saturation.
Thirdly, a review of forecasted financial statements and a
break even analysis for three separate sales scenarios will
ultimately determine if the business would be able to
maintain profitability. The business model specific to
Brass Tap will be investigated and analyzed along with
the industry information to show how The Brass Tap can
most effectively differentiate itself from competition.
Finally, all of these elements will be analyzed in
relationship to one another in order to determine the
feasibility of this investment
INDUSTRYANALYSIS
U.S. Beer Industry
As a whole, the beer industry in North
America has been deemed stagnant as a result
of a weak market growth rate; growth has
been increasing at a decreasing rate. Through
the year 2019, it is expected have a 1.3%
annual increase (“United States- Beer,”
2015). Over the forecast period 2014-2019,
this decline is expected to continue due to the
healthy lifestyle trend. The health conscious
have been consistently limiting their alcohol
consumption, meaning the competition
within the market must focus on
differentiation by developing a niche in the
vast industry (“America’s Food,” 2015).
Retrieved from Marketline Advantage
Criteria
For
Success
Maintains
profitability
Local
demand
for craft
beer
Ideal
location
Ability to
differentiate
from
competition
6

7. THEBRASSTAPBEERBAR
U.S Craft Beer Industry
The niche of the craft beer industry holds
many opportunities for those willing to
adapt to the constantly evolving social
trends of the market. According to ABI,
the craft beer market is here to stay, and
predicted to expand through the year of
2019 (“America’s Food,” 2015). In 2015
alone, the craft beer industry is expected
to grow to a five billion dollar industry,
increasing industry revenue by 13.5%
from the previous year (“Craft Beer
Production,” 2015).
This shows a very optimistic economic outlook for this segment of the beer industry, which will provide
opportunities for businesses if they implement a solid foundational strategy contingent on adapting to the
local market. “There's plenty of room to create new converts, and educating people about beer is a key part
of the franchise concepts,” (Daley, 2013).
Applying the information in the paragraph above, the craft beer market provides a niche within the alcohol
industry that allows for differentiation in product and service.
ABI’s Drink Insight (2015) report states that the millennial generation is responsible for reshaping the
consumption patterns in the craft beer industry. The millennial generation is defined as people born
between the years 1981-2000 (Gullekson, 2015), which matches ABI Inform Complete’s definition of the
target market for the craft beer industry as 21-34 year olds. Millennials put heavy emphasis on local
sourcing, nutrition and sustainability (“Restaurant Industry,” 2015). They place a greater importance on
high quality ingredients, local beers, greater variety of beer, as well as lower consumption of beer
(“America’s Food,” 2015). This provides an opportunity for investors in the craft beer industry to
capitalize on.
The vast majority of people drinking “super premium beers” such as Samuel Adams, Shock Top, Sierra
Nevada, and Blue Moon fall in the household income range of $75,000-149,999. For all of these different
brands, the 21-34 year old demographic accounted for over 40% of the population drinking this type of
beer (Mediamark Reporter, 2014). This information clearly defines the target market for craft beer as 21-34
year olds falling in the household income range of $75,000-$149,999
a key driver for growth (“America’s Food,” 2015).
Finally, women have long been alienated
through marketing of the craft beer industry.
Specifically, women ages 21-34 make up
only 10 percent of the craft beer drinking
population. However, these women account
for 15 percent of total craft beer sales
(“America’s Food,” 2015). Based on this
statistic, women are underrepresented in the
beer industry. There are few women who
drink craft beer, but the ones that do drink a
substantial amount. As a result, women can
be seen as an untapped market for beer, and
ultimately a key driver for growth
(“America’s Food,” 2015).
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8. THEBRASSTAPBEERBAR
COMPANY INTRODUCTION
The first Brass Tap Beer Bar was opened in 2008 in Wesley Chapel, Florida. To date, there are
35 franchised locations, the majority of which are based in Florida. The company’s mission is to:
“To create a premium beer experience for the world,” (Franchising Overview). Franchising craft
beer is becoming an increasingly popular business model (Daley, 2013). The Brass Tap puts
high expectations on management to provide a specific culture and experience; it places its focus
on providing an excellent and diverse selection of craft beer, as well as local entertainment, to its
patrons (Franchising Overview).The average Brass Tap Beer Bar has 60-80 craft beers on tap and
300 local and imported bottled beers. The company also offers a full menu of bar food items to
complement their craft beer selections, as well as a selection of high quality cigars, fine wine, and
liquor options. In accordance to the increasing popularity and demand for craft beer, specifically
in the Midwest, the Brass Tap has expanded its market presence by creating locations in
Greenfield, Wisconsin, as well as Ohio and Illinois (Locations).
LOCAL MARKET ANALYSIS
Wisconsin Market
Looking at the Wisconsin market as a whole, the overall population growth does not show extreme
potential. Over the past decade, growth has been increasing at a decreasing rate. Between the years
2010 and 2014 population increased 1.25% and the projected growth between 2014 and 2019 is 1.54%
(Market Profile Reports, 2014). According to Inwisconsin.com, a website aimed to help investors start,
relocate and grow their businesses, Wisconsin currently has a business friendly climate: the right
location is easy to find, the tax climate is business friendly, and the workforce is skilled and ready.
More specifically, the 7 Rivers Alliance, which includes the La Crosse area, has a business climate that
has never been stronger, with a historically low unemployment rate, multiple institutions of higher
learning, and a geographically centered location (7 Rivers Alliance). Despite the low population
growth, this information suggests that the Wisconsin market currently has a relatively sustainable
business climate, which is favorable for potential business investments.
8

9. Criteria
For
Success
Maintains
profitability
Local
demand
for craft
beer
Ideal
location
Ability to
differentiate
from
competition
THEBRASSTAPBEERBAR
La Crosse Area Market
The target age demographic of 21-34 year olds
accounts for 18.9% of the total La Crosse area
population. The area has a median age of 38
years old and an average age of 39.2, which is
higher than ideal for the craft beer industry
(Market Profile Reports, 2014). The median
household income in the La Crosse area is
$48,745 and the average income is $60,733
(Market Profile Reports, 2014). The La Crosse
area market has a relatively lower income than
ideal which could have a negative outcome for a
potential Brass Tap Beer Bar which primary
business is regarding craft beer.
TARGET MARKET
• Household Income: $70,000-149,000
• Age: 21-34
LA CROSSE MARKET
• Ave Household Income: $60,633
• Ave Age: 39 years
As of 2014, only 24.02% of the La Crosse area population reported drinking micro brewed beer,
compared to the 52.18% that reported drinking light beer and 39.93% that reported drinking
domestic regular beer (Market Profile Reports, 2014). Only residents with a permanent address
are represented in these numbers, which excludes the majority of students who rent; these
students account for a significant portion of the La Crosse population. The La Crosse area has
three large campuses, University of Wisconsin - La Crosse, Virterbo, and Western Technical
College, which total approximately 18,296 students (“Fast Facts, Enrollment Statistics,
Enrollment,” 2015). The lack of these students in the statistical data has the potential to make it
relatively skewed.
A notable percent of the La Crosse area population falls into the target age demographic.
However, the local demand for light and domestic regular beer is substantially higher than that
of micro brewed beer. James Walker, Brass Tap’s Chief Development Officer states, “at The
Brass Tap, we certainly appeal to die-hard craft aficionados and beer geeks, but our service
team can take someone who is a Bud drinker and educate them, basically selling them on much
higher-quality beers over time. If a light-beer drinker comes here in early January and asks for
recommendations, we'll teach them, and a year later they'll be drinking darker, heavier, more
unique beers than they ever thought they would,”(Daley, 2013). This shows the demand for
craft beer in the area may not currently be very significant, however there is room for
substantial growth in the sector. The franchise must focus on education, for both their staff and
customers, in order to obtain a substantial competitive advantage.
9

10. THEBRASSTAPBEERBAR
LOCATION CHOICE
In order to operate in the most effective manner possible, it is crucial to select the right location.
According to an article presented by Entrepreneur Media, How to Start a Bar/Club, the most important
information regarding site selection are:
1. Average annual daily traffic (AADT) between 20,000-25,000 cars
2. Local demographics matching target market
3. Low saturation with few competitors
Average traffic counts were estimated using established Brass Tap locations in the Midwest and the
Department of Transportation’s interactive traffic map (Appendix A). With these criteria in mind, two
locations in the La Crosse area were evaluated in order to determine the best fit for a Brass Tap bar:
Downtown La Crosse and Valley View Mall in Onalaska.
Downtown La Crosse
The first location was 125 S 4th St, La
Crosse WI. This is the old address for
a Rocky Rococo’s pizza restaurant,
which has since relocated to a
different part of La Crosse. This
location is in downtown La Crosse,
and according to the Wisconsin DOT,
about 12,000 people drive by the
building each day. This number is
slightly less than than ideal for
opening a Brass Tap Beer Bar.
According to the most recent data from the US
Census Bureau, the median household income in
La Crosse is $40,457, which is significantly lower
than the target market income. The competition in
this area is intense, as 3rd St in La Crosse has
gained a reputation as being “the bar” street. Just
across the street from this location is a similar beer
bar named Bodega Brew Pub, and down the street
are several more bars varying in style. Although
there are several competitors in this seemingly
small geographical location, this can be seen as an
opportunity because the target market will already
be present. If everyone already knows that 3rd
street is the place to go for drinks, less time and
money would be spent bringing people in and
more could spent on differentiating themselves
from the intense competition that exists. After
evaluating the La Crosse location, it does not meet
any of the specified criteria for success.
AADT (20,000- 25,000 cars)
Matching local demographics
Low saturation/competition
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11. THEBRASSTAPBEERBAR
Valley View Mall
The second location examined was in the Valley
View Mall, 3800 State Road 16, Onalaska WI.
According to the Wisconsin DOT, approximately
25,000 people drive by the valley view mall each
day. Historically, Brass Tap bars have found success
in shopping mall locations because of the high foot
traffic, which is a positive element of the Valley
View Mall location (Locations). According to the
most recent data from the US Census Bureau, the
median household income in Onalaska is $55,982
(United States Census Bureau, 2009-2013). This is
closer to the target demographic than the Downtown
location, but not by a substantial amount. The
competition in this geographic location is fairly low,
being much less saturated than downtown La
Crosse.
AADT (20,000- 25,000 cars)
Matching local demographics
Low saturation/competition
Since this area is not as heavily saturated or known as a hot spot to grab a drink, it offers the opportunity
to draw in many of the Onalaska residents who drink, but would prefer to drink closer to home. This
location has sufficient daily traffic, higher household income than downtown La Crosse, and less
saturation and competition. Ultimately, it is the best location to implement a Brass Tap Beer Bar, but still
lacks presence of important demographics.
Criteria
For
Success
Maintains
profitability
Local
demand
for craft
beer
Ideal
location
Ability to
differentiate
from
competition
11

12. THEBRASSTAPBEERBAR
FINANCIAL PROJECTIONS
All pro-forma financial statements can be in Appendices B- F. A summary of the major implications of
the financial statements is presented below.
After conducting extensive research it was found that the cost to start-up a Brass Tap bar would be
$751,000.00. This number includes a variety of initial costs to be expected upon opening a Brass Tap
Beer Bar, detailed in the Franchise Disclosure Document given to all potential franchisees. It was
projected that fifty percent of this cost would be covered by paid in owner capital, with the other fifty
percent being allocated to a business loan with a life of seven years and total principal balance of
$375,500.00, assuming a 6% interest rate.
Profitability was forecasted using three estimated sales volumes, low, medium and high, to determine
profitability over seven years. Cost of goods sold and other operating expenses were estimated from a
variety of sources, as explained in the notes and assumptions section of each financial statement. All
levels of sales were adjusted each year for inflation, as well as the increasing popularity of craft beer, in
order to reflect slightly increasing sales over the period of seven years.
Expected
Total Cash
FLows
Payback
Period
Net Present
Value
Low Scenario -$602,998.23 Unrecoverable -$653,739.15
Medium
Scenario
$229,521.09 5.75 Years $11,426.08
High Scenario $1,202,420.80 3.15 Years $778,978.93
Low Scenario
The first scenario studied was a low sales volume, based on an average of 275 daily customers
spending an average of $10, came to a yearly sales total of $1,003,750. The low scenario would
generate losses six out of the seven projected years. The net present value for this scenario was
calculated to be -$653,739.15. The payback period for this low sales volume was found to be
unfeasible as it would be impossible to recover the initial investment over the seven year period for
which this study was based around. Total expected net cash flows from this scenario were -
$602,998.23
Medium Scenario
The second scenario examined was a medium sales volume, based on an average of 338 daily
customers spending an average of $15, which produced total revenue of $1,850,550. This scenario is
projected to generate positive net income in each of the seven years of operations. The net present
value is calculated to be $11,426.08. The payback period is calculated as 5.75 years. The initial funds
used to finance this project would be recovered late in the sixth year, and profits would ensue the
following years. Total expected net cash flows from this scenario were $229,521.09.
12

13. THEBRASSTAPBEERBAR
COMPANY SPECIFIC STRATEGIES
High Scenario
The third and final scenario investigated was a high sales volume, based on an average of 400 daily
customers spending an average of $20, which produced total sales of $2,920,000. This scenario is
projected to generate significant net income in each of the seven years of operations. The net present
value is calculated to be $778,978.93. The payback period is calculated to be 3.15 years. The initial
funds required to finance this project would be recovered early in the fourth year, and profits would
ensue the following years. Total expected net cash flows from this scenario were $1,202,420.8.
Criteria
For
Success
Maintains
profitability
Local
demand
for craft
beer
Ideal
location
Ability to
differentiate
from
competition
At the low sales scenario, this
investment would not be financially
feasible; however the medium and
high scenarios have the potential to
be. When taking into account the
target market for craft beer and the
lack of those demographics the La
Crosse area has, operating between
the medium and high sales scenario
does not seem viable. Thus, this
investment is deemed unfeasible
overall. If the project was to be
pursued, franchisees would have to
focus on implementing effective
strategies regarding marketing,
hierarchical structure, hiring and
program development, and the
products and services offered.
Marketing
In order to have the highest potential to reach the
medium to high sales numbers, Brass Tap Beer
Bar must get its name out to the La Crosse
community. Given the relatively younger target
market, the most effective outlet would be social
media. This will target millennials due to the fact
that they are the most tech savvy generation
(Lamb, Hair, & McDaniel, 2015, p.55). The
Greenfield location has a Facebook page that
promotes events, giveaways, and specials the bar
has to offer (“The Brass Tap- Greenfield,” 2015).
Using this method along with other outlets, such as
Twitter and Instagram, has the potential to
generate awareness of the brand, and word of
mouth with our target audience.
13

14. THEBRASSTAPBEERBAR
As stated in the craft beer industry analysis, women are currently an untapped market for craft beer.
Women make up 49.96% of the total La Crosse area population, and women between 21-34 years old
make up 9.18% (Market Profile Reports, 2014). Using a marketing strategy that is gender neutral, or even
catered more towards women could get this part of the population more interested in craft beer, thus
increasing sales.
Lastly, The Brass Tap has a company-wide
reward program, Brew Crew, which is used to
obtain repeat customers. For $15, members
receive points every time they try a new beer.
With the points, members can get merchandise
along with rewards cards. This program not
only brings people back into the bar, it is also
an incentive for customers to try a beer they
would not otherwise. When looking at the La
Crosse market, it will be essential to attempt to
alter people’s beer preferences from
mainstream, light beer into craft beer. The
Brew Crew program is designed in part for this
reason.
Hierarchical Structure
It is also important to structure the
organization so employees' skills are used
efficiently and effectively. According to the
FDD Exchange (2014), there are three
operational managers needed when beginning
operations. Additionally, there will be
bartenders, servers, and cooks. For simplicity,
the organizational structure should be
departmentalized; there should be one manager
in charge of each department. The franchise
owner will be on the top level, followed by the
three operational managers (FDDExchange,
2014). The cooks, bartenders, and servers will
follow below in their respective departments.
Having all of the cooks, bartenders, and
servers on the same level, as well as having
three, rather than one, head managers will
promote decentralization in the organization.
This is desirable because it will promote
problem solving, critical thinking, and
ultimately lead to a more flexible and
responsive organization (Robbins & Judge,
2015, p. 437).
Franchise
Owner
Kitchen
Manager
Cooks
Server
Manager
Servers
Bar
Manager
Bartenders
14

15. THEBRASSTAPBEERBAR
Hiring Qualified Staff
Having a well-qualified staff is a necessity for running a business in the hospitality industry. In order to
achieve this, it is important to asses whether or not the La Crosse area possesses people seeking jobs with
the necessary skills and education levels. La Crosse currently has an unemployment rate of 3.0% which is
a smaller than 4.3% average unemployment rate in Wisconsin, and, 5% percent unemployment rate in the
United States as a whole (Bureau of Labor Statistics, 2015). This number is very desirable due to the fact
that LaCrosse’s unemployment rate is on the low end of the nation shows that there is evidence of a
potential pool of applicants to be hired, but also a low enough rate to encourage people to eat out in the
volatile restaurant industry. Onet OnLine (2015) lists that only 28% of food service management positions
require a high school diploma, and 14% require at least some college but no degree. A high school diploma
or GED is required by only 36% of employers in the bartending area, but 50% percent for wait staff (Onet
Online, 2015).
When comparing these statistics to the education levels obtained by citizens in La Crosse, 5.77% of the
population have some high school education but no diploma, 35.72% of the population have a high school
diploma or equivalent, and 20.22% have taken some college courses but have not obtained a degree
(Market Profile Reports, 2014). This shows that La Crosse has a pool of qualified applicants in the realms
of education, however it is uncertain if there are people with significant job experience available. This
makes it increasingly important to hire candidates primarily based on interaction in interviews. Structured
interview questions are necessary to avoid interviewer bias and make accurate comparisons between
applicants. Work sample tests and critical thinking questions would be very beneficial. (Robbins & Judge,
2015, p. 503-504). This will help ensure each employee is a good fit
Program Development
Taking the time to mentor and train
employees increases their loyalty, which
directly relates to increased productivity
(Lipman, 2013). When training new hires,
there needs to be time taken to understand
each individual. This will lead to better
recognition of each employee’s skills and
needs, and how employees can be helped
to fill these gaps (Lipman, 2013). Training
can also be used as a way to differentiate
the organization from the competition.
More specifically, staff hired at The Brass Tap needs to be knowledgeable about craft beer in order to
convert mainstream beer drinkers, such as Bud and Miller, to higher quality beer-drinkers through
educated recommendations. Other craft beer franchises such as Craft Beer Cellar require franchisees to
become certified as cicerones. According to the Cicerone Organization, “The Cicerone Certification
Program certifies and educates beer professionals in order to elevate the beer experience for consumers”
(The Cicerone Certification Program). The Brass Tap in La Crosse should require this training for its
operational managers since there is such a large population that prefers more mainstream beer. With this
same philosophy in mind, the Brass Tap can follow the lead of Craft Beer Cellar and offer customer
classes on beer tasting and styles (Daley, 2013). This will not only aid in converting beer drinkers to
higher quality beer that the Brass Tap provides, but also in creating a more personable experience that
generates a positive reputation increasing brand loyalty and equity.
15

16. THEBRASSTAPBEERBAR
Products and Services
The Brass Tap should place emphasis on creating an upbeat, yet casual environment through local live
entertainment (Brass Tap Craft Beer Bar). According to other successful craft beer bars, such as World of
Beer, providing live local entertainment can be used as a stepping stone for young local talent (Daley, 2015).
This shows the organization is involved on a personal level with the local community by giving a way for
artists to showcase their talent in a tough industry.
Sports are also a highlighted element in the Brass
Tap’s culture. HDTVs are provided to watch the latest
sport action. This is a wise decision on Brass Tap’s
part due to the positive correlation between the
consumption of beer and sports (Jones, Phillipson, &
Lynch, 2006). The faculty of science, medicine and
health at University of Wollongong stated that,
“Alcohol and sports have been argued to be closely
associated in many countries, including the US where
the alcohol industry spent more than $540 million on
advertising in sports programs,” (Jones, Phillipson, &
Lynch, 2006). Due to the large following the Green
Bay Packers have in the state, it seems logical to
implement a sports element.
The Brass Tap should also satisfy it’s guests with a menu that is
upscale, but is also limited in food options (Franchising
Overview, 2015). This strategy is implemented in hopes to cut
operational costs, as well as keep the spotlight on the beer
(Daley, 2015). Food options do have some variability, including
items such baked pretzels, paninis, burgers, and pizzas, however
the franchise should put more emphasis on food quality. World
of Beer is in the process of this by including items such as beer-
battered shrimp, beer bread, and other beer inspired creations
(Daley, 2013). By implementing high ingredients in the Brass
Tap’s food items, their menu will be more in line with the
millennial health trend.
One trend The Brass Tap has successfully implemented and
should continue is craft cocktails, which combine both liquor
and beer (Daley, 2015). One example of this on Brass Tap’s
menu is Miss April, which mixes Ketel One, lime juice,
cranberry, and blueberry wheat beer. Adapting to these specific
trends is important because it diversifies what seems to be a
simple menu, making the menu Brass Tap offers more desirable.
This could ultimately bring in more customers and increase
sales.
16

17. THEBRASSTAPBEERBAR
RECOMENDATIONS
Through analysis of the craft beer industry and identification of the target market, it has been
determined that the La Crosse area does not fit the requirements necessary for profitable operations.
Although there is evidence of an increasing market for craft beer, the demographics of the area do not
align with the ideal Brass Tap target market. These incompatible demographics would prevent the
franchise from maintaining profitability and being able to choose a wise location. The business would
likely operate at the low sales scenario, thus the project would return losses six out of the seven
projected years. Recovery of the initial investment would take significantly longer than the life of the
project.
It is not recommended to invest in the Brass Tap Beer Bar franchise in the La Crosse area. However if
this project was pursued, it is suggested to open it at the Valley View Mall location as it more closely
aligns with the ideal requirements for a Brass Tap franchise. Substantial differentiation would be
necessary in order to operate somewhere in the medium to high sales scenarios through: specific
marketing strategies, hiring qualified staff, implementing extensive development programs, providing
unique products and services.
17

18. THEBRASSTAPBEERBAR
REFRENCES
ABI/INFORM Complete. (2015). America’s Food and Drink Insight - November 2015. Retrieved
from http://search.proquest.com/abicomplete/docview/
1718230942/522D9DC4C5EC4EA8PQ/34?accountid=9435
Arduser, Lora. (2003) Restaurant Site Location: Finding, Negotiating & Securing the Best
Food Service Site for Maximum Profit. Ocala, FL: Atlantic Pub. Group.
Brass Tap FDD. (2014) The FDD Exchange: A Resource of the Educated Franchisee. Retrieved from
http://fddexchange.com/view-fdd-docs/the-brass-tap/the-brass-tap-fdd/
Bureau of Labor Statistics. (2015). Local Area Unemployment Statistics. Retrieved from
http://www.bls.gov/lau/
Bureau of Labor Statistics. (2015). Economy at a Glance. Retrieved from
http://www.bls.gov/eag/eag.wi_lacrosse_msa.htm
Bureau of Labor Statistics. (2015). Databases, Tables, and Calculators. Retrieved from
http://data.bls.gov/timeseries/LNS14000000
Craft Beer Production in the US. (2015). Retrieved from
http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?en
Daley, J. (September 2013). Turning On the Taps. Entrepreneur, 41(9), 92-99. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer? sid=d72b8d30-6a3e-415d-
8c52-5ad1c8939727%40sessionmgr114&vid=6&hid=124
Entrepreneur Media. (2015). How to Start a Bar/Club. Entrepreneur. Retrieved from
http://www.entrepreneur.com/article/41460
Enrollment Statistics. (2015). Viterbo University. Retrieved from
http://www.viterbo.edu/registrar/basic-statistics
Enrollment. (2011). Western Technical College. Retrieved from
https://www.google.com/#q=western+tech+la+crosse+student+population
Fast Facts. (2015). University of Wisconsin- La Crosse. Retrieved from
https://www.uwlax.edu/Admissions/Fast-facts/
Franchising Overview. The Brass Tap Craft Beer Bar. Retrieved from
http://brasstapbeerbar.com/franchise-overview.aspx
Gullekson, N. (2015). Diversity Lecture. Retrieved from
https://uwlax.courses.wisconsin.edu/d2l/le/content/2925867/view
Content/18308816/View
Jones, S., Phillipson, L., & Lynch, M. (2006). Alcohol and sport: can we have one without the
other?. Retrieved from http://ro.uow.edu.au/cgi/viewcontent.cgi?
article=1081&context=hbspapers 18

19. THEBRASSTAPBEERBAR
Jorgensen, Amy S. (2003) Restaurant Marketing and Advertising. Ocala, FL: Atlantic
Pub. Group.
Lamb, C., Hair, J., & McDaniel, C. (2015). Principles of Marketing. Boston, MA: Cengage Learning.
Licenses & Permits. (2015). City of La Crosse. Retrieved from
https://www.cityoflacrosse.org/index.aspx?NID=432
Lipman, V. (2013). Why Employee Development Is Important, Neglected And Can Cost You
Talent. Retrieved from http://www.forbes.com/sites/victorlipman/2013/01/29/why-
development-planning-is-important-neglected-and-can-cost-you-young-talent/
Locations. The Brass Tap Craft Beer Bar. Retrieved from
http://brasstapbeerbar.com/locations.aspx
Mediamark Reporter. (2014). Retrieved from http://mriplus.com/accounts/home.aspx
Market Profiles Reports. (2014). Local Market Audience Analysis. Retrieved from
http://www.claritas.com/SRDS/home?
user_id=1446674523100373834&auth_token=Ph65oGYgs4FeJQUXM
1cCabN7AjM%3D#
National Restaurant Association. (2015). 2015 Restaurant Industry Forecast. Retrieved
from http://www.restaurant.org/Downloads/PDFs/News- Research/research/
ForecastExecSummary2015-FINAL.pdf
OnetOnLine. (2015). Summary Report: Bartenders. Retrieved from
http://www.onetonline.org/link/summary/35-3011.00
Onet OnLine. (2015). Summary Report: Food Service Managers. Retrieved from
http://www.onetonline.org/link/summary/11-9051.00
OnetOnline. (2015). Summary Report: Waiters and Waitresses. Retrieved from
http://www.onetonline.org/link/summary/35-3031.00
Robbins, S., & Judge, T. (2015). Organizational Behavior (16th ed). Upper Saddle River, NJ:
Pearson Education, Inc.
The Brass Tap- Greenfield. (2015). Retrieved from
https://www.facebook.com/BrassTapGreenfield/?fref=ts).
United States Census Bureau. (2009-2013). Onalaska, Wisconsin (Data File). Retrieved from
http://quickfacts.census.gov/qfd/states/55/5559925.html
United States- Beer. (2015). Retrieved from
http://advantage.marketline.com/Product?pid=MLIP1602-0024
Wisconsin Department of Transportation. (2015). [Interactive map of average annual daily traffic counts].
State of Wisconsin Department of Transportation. Retrieved from
https://trust.dot.state.wi.us/roadrunner/
7 Rivers Alliance. In Wisconsin. Retrieved from
http://inwisconsin.com/select-wisconsin/regions/7-rivers-alliance/
19

20. THEBRASSTAPBEERBAR
APPENDIX
Appendix A: AADT COUNTS
Downtown La Crosse
Valley View Mall, Onalaska
20

21. THEBRASSTAPBEERBAR
APPENDIX B: FINANCIAL STATEMENT’S NOTES AND ASSUMPTIONS
START UP EXPENSES INCOME STATEMENT
Startup Expenses Retrieved From
Franchise Disclosure Document:
Initial Franchise Fee,
Leasehold Improvements
Equipment/Fixtures
Licenses/Permits
Beginning Inventory
TIPS Certification
Initial Operating Manager Training
Working Capital
Grand Opening Marketing
Professional Services: Accounting / Legal
Insurance
Expenses Retrieved From Franchise
Disclosure Document:
Advertising Expenses
FSC (Brass Tap parent company) Fees
POS Maintenance
Accounting Fees
Miscellaneous costs are equal to 10%
of total operating costs (How to Start
a Bar/Club)
Miscellaneous expenses are equal to 10%
of total operating expenses (How to Start
a Bar/Club)
Real Estate estimate obtained from
project charge
Utilities come from a quote given by Xcel
energy in La Crosse
Telephone utilities come from quote
given by Charter Communications in La
Crosse
Licensing fees were obtained from City
of La Crosse
Straight line method used for depreciation
& amortization
Assumed a 40% income tax rate
Assumed 5% Sales increase each year
21

22. THEBRASSTAPBEERBAR
APPENDIX C: START UP EXPENSES
Start Up Expenses
Initial Franchise Fee $35,000.00
Real Estate $16,800.00
Leasehold Improvements $242,500.00
Equipment/Fixtures $92,500.00
Licenses /Permits $2,500.00
Beginning Inventory $27,500.00
TIPS Certification $900.00
Initial Op Manager Training $3,000.00
Working Capital (Cash on Hand) $250,000.00
Grand Opening Marketing $3,000.00
Professional Services $4,000.00
Insurance $5,000.00
Miscellaneous $68,270.00
Total Required Funds $750,970.00
22

23. THEBRASSTAPBEERBAR
APPENDIX D: START UP BALANCE SHEET
January 1, 2016
Assets Column1
Current Assets
Cash $250,000.00
Beginning Inventory $27,500.00
Prepaid Insurance $5,000.00
Other Assets $32,663.00
Supplies $10,037.00
Total Current $325,200.00
Fixed Assets
Real Estate - Building $16,800.00
Leasehold Improvements $242,500.00
Equipment/Fixtures $92,500.00
Total Fixed Assets $351,800.00
Intangibles
Franchise Rights $35,000.00
Licenses $4,000.00
Goodwill $35,000.00
Total Intangibles $74,000.00
Total Assets $751,000.00
Liabilities & Owner's Equity
Long-Term Liabilities
Long-Term Debt $375,500.00
Total Long-Term Liabilities $375,500.00
Total Liabilities $375,500.00
Owner Equity
Owner Invested Equity $375,500.00
Total Equity $375,500.00
Total Liabilities & Equity $751,000.00
23

24. THEBRASSTAPBEERBAR
APPENDIX E: STATEMENT OF CASH FLOWS
LOW
SCENARIO
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Beg. Cash Balance $250,000.00 $223,693.75 $214,462.15 $218,488.47 $237,939.49 $273,707.19 $326,731.43
Net Income -$84,734.39 -$67,659.74 -$54,401.82 -$38,977.12 -$22,660.44 -$5,403.90 $12,842.20
Depreciation
Expense
$47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14
Amortization
Expense
$10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00
Net Change in
Cash Flows
-$26,306.25 -$9,231.60 $4,026.32 $19,451.02 $35,767.70 $53,024.24 $71,270.34
End Cash
Balance
$223,693.75 $214,462.15 $218,488.47 $237,939.49 $273,707.19 $326,731.43 $398,001.77
MED SCENARIO Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Beg. Cash Balance $250,000.00 $223,693.75 $214,462.15 $218,488.47 $237,939.49 $273,707.19 $326,731.43
Net Income -$84,734.39 -$67,659.74 -$54,401.82 -$38,977.12 -$22,660.44 -$5,403.90 $12,842.20
Depreciation
Expense
$47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14
Amortization
Expense
$10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00
Net Change in Cash
Flows
-$26,306.25 -$9,231.60 $4,026.32 $19,451.02 $35,767.70 $53,024.24 $71,270.34
End Cash Balance $223,693.75 $214,462.15 $218,488.47 $237,939.49 $273,707.19 $326,731.43 $398,001.77
24

25. THEBRASSTAPBEERBAR
HIGH
SCENARIO
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Beg. Cash Balance $250,000.00 $344,711.47 $456,106.00 $580,964.99 $720,032.40 $874,091.10 $1,043,965.06
Net Income $36,283.33 $52,966.39 $66,430.85 $80,639.27 $95,630.56 $111,445.82 $128,127.89
Depreciation
Expense
$47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14
Amortiation
Expense
$10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00
Net Change in Cash
Flows
$94,711.47 $111,394.53 $124,858.99 $139,067.41 $154,058.70 $169,873.96 $186,556.03
End Cash Balance $344,711.47 $456,106.00 $580,964.99 $720,032.40 $874,091.10 $1,043,965.06 $1,230,521.09
25

26. THEBRASSTAPBEERBAR
APPENDIX F: INCOME STATEMENTS
LOW
SCENARIO
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue
Sales
$1,003,750.0
0 $1,053,937.50
$1,106,634.3
8
$1,161,966.0
9
$1,220,064.4
0
$1,281,067.6
2
$1,345,121.0
0
Total
Revenue
$1,003,750.0
0 $1,053,937.50
$1,106,634.3
8
$1,161,966.0
9
$1,220,064.4
0
$1,281,067.6
2
$1,345,121.0
0
Cost of
Goods Sold
Cost of
Raw Materials $301,125.00 $316,181.25 $331,990.31 $348,589.83 $366,019.32 $384,320.29 $403,536.30
Total
Cost of Goods
Sold $301,125.00 $316,181.25 $331,990.31 $348,589.83 $366,019.32 $384,320.29 $403,536.30
Gross
Margin $702,625.00 $737,756.25 $774,644.06 $813,376.27 $854,045.08 $896,747.33 $941,584.70
Operating
Expenses
Rent $206,928.00 $208,997.28 $211,087.25 $213,198.13 $215,330.11 $217,483.41 $219,658.24
Payroll $301,125.00 $316,181.25 $331,990.31 $348,589.83 $366,019.32 $384,320.29 $403,536.30
Supplies $10,037.50 $10,539.38 $11,066.34 $11,619.66 $12,200.64 $12,810.68 $13,451.21
FSC
Royalty $40,150.00 $42,157.50 $44,265.38 $46,478.64 $48,802.58 $51,242.70 $53,804.84
FSC
Advertising $15,056.25 $15,809.06 $16,599.52 $17,429.49 $18,300.97 $19,216.01 $20,176.81
Local
Advertising $28,093.75 $26,348.44 $27,665.86 $29,049.15 $30,501.61 $32,026.69 $33,628.02
Accounting $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00
POS
Maintenance $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Utilities $6,880.00 $6,880.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00
Licensing/Perm
it Renewal $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00
Insurance $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00
Entertainment $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
Miscellaneous $54,641.75 $56,800.94 $59,503.08 $62,214.34 $65,061.16 $68,050.31 $71,188.93
Total
Operating
Expenses $707,612.25 $728,413.85 $754,957.74 $781,359.24 $808,996.38 $837,930.09 $868,224.36
EBITDA ($4,987.25) $9,342.41 $19,686.32 $32,017.02 $45,048.70 $58,817.24 $73,360.34
Accumulated
Depreciation $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14
Amortization $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00
EBIT ($63,415.39) ($49,085.74) ($38,741.82) ($26,411.12) ($13,379.44) $389.10 $14,932.20
Interest
Expense $21,319.00 $18,574.00 $15,660.00 $12,566.00 $9,281.00 $5,793.00 $2,090.00
EBT ($84,734.39) ($67,659.74) ($54,401.82) ($38,977.12) ($22,660.44) ($5,403.90) $12,842.20
Taxes $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Net
Income ($84,734.39) ($67,659.74) ($54,401.82) ($38,977.12) ($22,660.44) ($5,403.90) $12,842.20
26

27. THEBRASSTAPBEERBAR
MED
SCENARIO
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue
Sales $1,850,550.00 $1,943,077.50 $2,040,231.38 $2,142,242.94 $2,249,355.09 $2,361,822.85 $2,479,913.99
Total Revenue $1,850,550.00 $1,943,077.50 $2,040,231.38 $2,142,242.94 $2,249,355.09 $2,361,822.85 $2,479,913.99
Cost of Goods
Sold
Cost of Food /
Raw Materials $582,923.25 $612,069.41 $642,672.88 $674,806.53 $708,546.85 $743,974.20 $781,172.91
Total Cost of
Goods Sold $582,923.25 $612,069.41 $642,672.88 $674,806.53 $708,546.85 $743,974.20 $781,172.91
Gross Margin $1,267,626.75 $1,331,008.09 $1,397,558.49 $1,467,436.42 $1,540,808.24 $1,617,848.65 $1,698,741.08
Operating
Expenses
Rent $206,928.00 $208,997.28 $211,087.25 $213,198.13 $215,330.11 $217,483.41 $219,658.24
Payroll $573,670.50 $602,354.03 $632,471.73 $664,095.31 $697,300.08 $732,165.08 $768,773.34
Supplies $37,011.00 $38,861.55 $40,804.63 $42,844.86 $44,987.10 $47,236.46 $49,598.28
FSC Royalty $74,022.00 $77,723.10 $81,609.26 $85,689.72 $89,974.20 $94,472.91 $99,196.56
FSC
Advertising $27,758.25 $29,146.16 $30,603.47 $32,133.64 $33,740.33 $35,427.34 $37,198.71
Local
Advertising $46,263.75 $48,576.94 $51,005.78 $53,556.07 $56,233.88 $59,045.57 $61,997.85
Accounting $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00
POS
Maintenance $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Utilities $8,080.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00
Licensing/Permit
Renewal $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00
Insurance $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00
Entertainment $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
Miscellaneous $108,973.90 $107,289.57 $112,390.15 $117,745.76 $123,369.14 $129,273.70 $135,473.48
Total Operating
Expenses $1,127,407.40 $1,165,728.63 $1,212,752.27 $1,262,043.49 $1,313,714.83 $1,367,884.47 $1,424,676.46
EBITDA $140,219.35 $165,279.46 $184,806.23 $205,392.92 $227,093.40 $249,964.17 $274,064.62
Accumulated
Depreciation $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14
Amortization $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00
EBIT $81,791.21 $106,851.32 $126,378.09 $146,964.78 $168,665.26 $191,536.03 $215,636.48
Interest
Expense $21,319.00 $18,574.00 $15,660.00 $12,566.00 $9,281.00 $5,793.00 $2,090.00
EBT $60,472.21 $88,277.32 $110,718.09 $134,398.78 $159,384.26 $185,743.03 $213,546.48
Taxes $24,188.88 $35,310.93 $44,287.23 $53,759.51 $63,753.71 $74,297.21 $85,418.59
Net Income $36,283.33 $52,966.39 $66,430.85 $80,639.27 $95,630.56 $111,445.82 $128,127.89
27

28. THEBRASSTAPBEERBAR
HIGH
SCENARIO Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue
Sales $2,920,000.00 $3,066,000.00 $3,219,300.00 $3,380,265.00 $3,549,278.25 $3,726,742.16 $3,913,079.27
Total Revenue $2,920,000.00 $3,066,000.00 $3,219,300.00 $3,380,265.00 $3,549,278.25 $3,726,742.16 $3,913,079.27
Cost of Goods
Sold
Cost of Food
/ Raw Materials $1,007,400.00 $1,057,770.00 $1,110,658.50 $1,166,191.43 $1,224,501.00 $1,285,726.05 $1,350,012.35
Total Cost of
Goods Sold $1,007,400.00 $1,057,770.00 $1,110,658.50 $1,166,191.43 $1,224,501.00 $1,285,726.05 $1,350,012.35
Gross Margin $1,912,600.00 $2,008,230.00 $2,108,641.50 $2,214,073.58 $2,324,777.25 $2,441,016.12 $2,563,066.92
Operating
Expenses
Rent $206,928.00 $208,997.28 $211,066.56 $213,177.23 $215,287.89 $217,440.77 $219,593.65
Payroll $817,600.00 $858,480.00 $901,404.00 $946,474.20 $993,797.91 $1,043,487.81 $1,095,662.20
Supplies $87,600.00 $91,980.00 $96,579.00 $101,407.95 $106,478.35 $111,802.26 $117,392.38
FSC Royalty $116,800.00 $122,640.00 $128,772.00 $135,210.60 $141,971.13 $149,069.69 $156,523.17
FSC
Advertising $43,800.00 $45,990.00 $48,289.50 $50,703.98 $53,239.17 $55,901.13 $58,696.19
Local
Advertising $73,000.00 $76,650.00 $80,482.50 $84,506.63 $88,731.96 $93,168.55 $97,826.98
Accounting $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00
POS
Maintenance $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00
Utilities $8,080.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00 $8,080.00
Licensing/Permi
t Renewal $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00 $1,200.00
Insurance $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00
Entertainment $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
Miscellaneous $170,485.90 $176,974.00 $185,558.80 $194,572.80 $204,037.60 $213,975.60 $224,410.40
Total
Operating
Expenses $1,568,993.90 $1,634,491.28 $1,704,932.36 $1,778,833.38 $1,856,324.01 $1,937,625.81 $2,022,884.96
EBITDA $343,606.10 $373,738.72 $403,709.14 $435,240.20 $468,453.25 $503,390.30 $540,181.96
Accumulated
Depreciation $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14 $47,857.14
Amortization $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00 $10,571.00
EBIT $285,177.96 $315,310.58 $345,281.00 $376,812.06 $410,025.11 $444,962.16 $481,753.82
Interest
Expense $21,319.00 $18,574.00 $15,660.00 $12,566.00 $9,281.00 $5,793.00 $2,090.00
EBT $263,858.96 $296,736.58 $329,621.00 $364,246.06 $400,744.11 $439,169.16 $479,663.82
Taxes $105,543.58 $118,694.63 $131,848.40 $145,698.42 $160,297.64 $175,667.67 $191,865.53
Net Income $158,315.38 $178,041.95 $197,772.60 $218,547.64 $240,446.46 $263,501.50 $287,798.29
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