This is a proposal for a beer tasing room in San Luis Obispo created as a quarter-long entreprenuership project at Cal Poly.

1. MICROBREWS “For the curious” Chaz Daum Richard Herbert Annie Ljunggren Jessica Sisco

8. Microbrew Market Growth Year 1947-2006 Brewer’s Almanac 2007

20. San Luis Obispo Population U.S. Department of Commerce, U.S. Census Bureau. (2007). San Luis Obispo Population. http://factfinder.census.gov/servlet/ACSSAFFPeople?_sse=on&_submenuId=people_1&_ci_nbr=&qr_name=&ds_name=&reg=&_industry= Age Category Total Population (Percent Male (Percent) Female (Percent) Total 262,436 136,467 (52%) 125,969 (48%) 18-24 41,397 (16%) 23,098 (56%) 18,299 (44%) 25 and over 171,755 (65%) 87,170 (51%) 84,585 (49%) 25-34 33,098 (13%) 18,953 (57%) 14,145 (43%) 35-44 32,789 (12%) 17,235 (53%) 15,554 (47%) 45-64 68,086 (26%) 34,267 (50%) 33,819 (50%) 65 and over 37,782 (14%) 16,715 (44%) 21,067 (56%)

21. Education (Bachelor’s Degree or Higher) U.S. Department of Commerce, U.S. Census Bureau. (2007). San Luis Obispo Population. http://factfinder.census.gov/servlet/ACSSAFFPeople?_sse=on&_submenuId=people_1&_ci_nbr=&qr_name=&ds_name=&reg=&_industry=

40. Target vs Non-target Gender Demographics The target market contains more males than females, but both genders show interest in the business. Target Non-target (N=146) (N=254) Male 70% 62% Female 30% 39%

41. Our target market drinks several times a week significantly more than the rest of the population. Target Non-target (N=146) (N=254) Several Times a Week 56.2% 45.3% Once a Week 22.6% 24.8% Several Times a Month 5.8% 8.5% Once a Month 5.5% 11% Never 0% 0.4% Target vs Non-target Frequency of drinking alcohol

42. The majority of the people surveyed live in San Luis Obispo and about 15% live in the surrounding areas. Target Non-target (N=146) (N=254) SLO 85.6% 85.8% Morro Bay 3.4% 2.8% Pismo Beach 3.4% 2.8% Avila Beach 0% 0% Los Osos 2.7% 2.8% Other North County 2.7% 4.3% Other South County 2.1% 1.6% Target vs Non-target Where consumers live

43. Target vs Non-target Age range of consumers The main age range of the people surveyed are between the ages of 21-25. There are slightly more people in the targe group between 26-30. Target Non-target (N=143) (N=250) 21-35 73% 75% 26-30 15% 14% 31-35 4% 3% 36-40 1% 1% 41-45 2% 2% 46-50 3% 1% 51-55 2% 2% 55 and over 2% 1%

44. Both the target and non-target consumers drink alcoholic beverages in similar locations. Non-target consumers prefer to go to wineries more than target consumers. Target Non-target (N=143) (N=250) Bar or Pub 74% 72% Friend’s house 70% 65% Home 57% 56% Party 53% 55% Restaurant 39% 35% Wine Bar 3% 2% Winery 3% 6% Target vs Non-target Where consumers drink alcoholic beverages

45. Target vs Non-target Drink beer when drinking alcohol The Target rates draft and bottled beer and a wider selection of microbrews significantly more important than the non-target, otherwise both groups have similar preferences. Target Non-target (N=143) (N=250) All the time 42% 30% Most of the time 33% 33% Some of the time 18% 25% Rarely 6% 11% Never 1% 0%

46. Target vs Non-target Expected amenities The Target rates draft and bottled beer and a wider selection of microbrews significantly more important than the non-target, otherwise both groups have similar preferences. Target Non-target (N=143) (N=250) Draft and bottled beer 81% 70% Snack/Appetizer menu 64% 60% Large selection microbrews 44% 33% TV screens 49% 43% Waitress/Waiter service 36% 37% Pool table 32% 28% Live entertainment 26% 28% Full food menu 23% 23% Large wine list 13% 16% Video games 2% 4%

47. Target vs Non-target Weekly alcohol spending A greater portion of the target market spends over $30/week than the non-target market and a smaller portion of the target market spends less than $20 per week than the non-target market. Target Non-target (N=143) (N=250) Under $10 13% 21% $10-$20 29% 31% $20-$30 20% 17% $30-$40 18% 14% $40-$50 11% 8% Over $50 11% 9%

48. Target vs Non-target Type of beer consumers drink Customers in the target market prefer more Imported and specialty beers than the non-target, but both groups have similar ranked preferences for the beers they consumer. Target Non-target (N=143) (N=250) Imported beers 83% 74% Specialty beers 83% 66% Light beers 75% 74% Domestic Microbrews 73% 53% American lagers 59% 47% Imported microbrews 51% 37% Malt Liquor 22% 16%

49. Target vs Non-target Attributes of beer to purchase The target market and non-target market both have similar rankings of important attibutes in purchasing beer. It is more important for target consumers that it is available on draft, and the calories in the beer are less important to the target consumer. Target Non-target (N=143) (N=250) Taste 96% 91% Low Price 48% 48% Available on draft 46% 35% Available in groceries and bars 42% 39% Brand Reputation 34% 34% % alcohol 27% 22% Imported 15% 15% Exclusive image 15% 10% Calories 12% 17% Limited production 12% 9%

50. Agree Completely 41.4% 27.9% Agree Somewhat 52.4% 51.0% Disagree Somewhat 4.1% 15.9% Disagree Completely 2.1% 5.2% Target Non Target (N=145) (N=251) Target vs Non-target Worth extra money for hand crafted brew The target market believe hand crafted brews are worth the extra money more than the non-target.

51. Target vs Non-target Interest in SLO Microbrews Our target market is more likely to use our service over the non-target market. Target Non-target (N=146) (N=254) Certain will use 37% 21% Almost certain will use 40% 20% Very probable will use 28% 16% Probably will use 13% Good possibility will use 11% Fairly good possibility will use 4% Fair possibility will use 0% Some possibility will use 5% Slight possibility will use 4% Very slight possibility will use 5% No chance will use 0%

52. Target vs Non-target Reasons for attending SLO Microbrews Our target market and non target market have similar views of why they would attend our business. Target Non-target (N=146) (N=254) Go with a group of friends 63% 60% Take a date to it 4% 5% Go with friends like a bar at night 20% 16% Dinner experience 3% 4% Special occasion place 10% 17%

53. Target vs Non-target Prospected visits in three-month period Our target market would come more times in a month than our non-target market customers. Target Non-target (N=146) (N=253) One to two times 40% 56% Three to four times 35% 26% Five to six times 22% 13% Seven to nine times 2% 1% More than nine times 1% 1% I would never use it 0% 3%

54. Surveyed points of interest “ A local and easy way to taste beers you wouldn’t get at a bar” “ A cool way to try new beers and support local brewers” “ A good alternative to wine tasting” “ I like to drink beer” “ Learn about new beers... Try rare beers” “ Sounds like fun”

56. Hourly Forecast Optimistic 15 customers/hour $15/customer Open 8 hours 15*15*8= $1,800/day $50,400/month $604,800 Likely 8 customers/hour $10/customer Open 8 hours 8*10*8= $1,152/day $32,256/month $387,072/year Pessimistic 5 customers/hour $5/customer Open 8 hours 5*10*8= $400/day $11,200 $134,400 Assumptions: Hours of operation: 1pm-9pm Estimated 28 days/month

66. Bibliography Continued U.S. Department of Commerce, U.S. Census Bureau. (2007). San Luis Obispo Population. http://factfinder.census.gov/servlet/ACSSAFFPeople?_sse=on&_submenuId=people_1&_ci_nbr=&qr_name=&ds_name=&reg=&_industry= Bureau of Economic Analysis. Regional Economic Accounts, Chart CA1-3, April 2008. http://www.bea.gov/regional/reis/drill.cfm Bureau of Economic Analysis. Regional Economic Accounts, GDM by metropolitan area, 2008. http://www.bea.gov/regional/gdpmetro/action.cfm The World Fact book. US Central Intelligence Agency, October 2008. https://www.cia.gov/library/publications/the-world-factbook/print/us.html Department of Alcoholic Beverage Control. http://www.abc.ca.gov/Permits/Priority_Summary%2014Oct08.pdf 2008 San Luis Obispo Priority drawing notice. http://www.abc.ca.gov/Permits/2008_Priority/2008%20San%20Luis%20Obispo%20Drawing%20Notice.pdf SLO Chamber of commerce. http://www.slocity.org/finance/businesstax/businesstaxintroduction.asp#How%20much%20is%20the%20license