Buy essay on Sh-Boom’s a Limited Liability Company registered in New York

Company Summary
Sh-Boom’s will be a Limited Liability Company registered in New York and headquartered in Massena. The Company will be owned by Gary J. Pelkey and Barbara Fenton.

Mission Statement
The mission of the company will be to deliver the best food at the best price with the highest level of service, all offered within one nostalgic atmosphere. This is Sh-Boom’s core value and the heart of Sh-Boom’s business model.

Vision Statement
Sh-Boom’s vision is to become the most highly praised and visited restaurant/night club in Northern New York by the year 2015 (Year 5), being recognized for its great food, entertainment, and services and as a restaurant that uses the best ingredients possible, taking pride in its preparation and letting every customer know that he or she is appreciated.

Objectives
• To establish Sh-Boom’s Restaurant and Night Club as a hotspot for family fun and nostalgic nights
• To provide patrons with mouth-watering food options, a vast array of beverages, and a festive atmosphere
• To become one of the most beloved restaurants in the greater Massena area and Northern New York, recognized for amazing food, services, and entertainment.
• Keeping food costs at less than 35% revenue.
• Keeping employee labor cost between 37% – 39%.

Keys to Success
• Unique, Innovative & Contemporary: The creation of a unique 50’s and 60’s theme Restaurant and Nightclub atmosphere will differentiate Sh-Booms from its competitors. The restaurant will differ from its major rivals due to its original design and interior. Sh-Booms will offer a great dining experience in a nostalgic atmosphere.
• The provision of a pervasive product identity, high-quality food and service, a novelty factor, and a good attitude
• High employee motivation will help to provide customers with friendly, efficient, knowledgeable services each visit letting all customers know they are appreciated
• Carrying out an all-inclusive promotional campaign
• Learning from the strengths and weaknesses of similar businesses
• Using the best ingredients possible and taking pride in the preparation of dishes

Industry Analysis

Restaurant Industry
According to the National Restaurant Association (NRA), restaurant revenues are growing continuously over time and have become a crucial part of the fabric of American culture. In 1955, restaurants only captured 25% of Americans’ food expenditure. By 2011, this had grown to 49%. Consider the following statistics:

» Restaurant-industry sales are projected to total $604 billion in 2011 and equal 4% of the U.S. GDP.
» Restaurant industry daily sales in 2011 are $1.7 billion.
» The economic contribution of the restaurant industry is expected to be about $1.7 trillion in 2011.
» Average unit sales in 2008 were $862,000 at full service restaurants and $737,000 at quick service restaurants.
» Thirty-seven percent of adults admit that they dine out on the regular basis in their day-to-day life.

The NRA, which defines the restaurant industry as a combination of eating places, bars, managed services, lodging place restaurants, and retail, vending, recreation, and mobile services, provides the following breakdown of industry revenues.

Industry Sales Projection by Category, 2011
Category 2001 Sales
(Bil. USD)
Commercial 550.8
Eating places 404.5
Bars and taverns 18.3
Managed services 42.1
Lodging place restaurants 28.7
Retail, vending, recreation, mobile 57.2
Other 53.4

According to First Research, there are approximately 480,000 restaurants nationwide generating about $375 billion in revenue each year, a slightly lower estimate of the industry than the NRA but one that is more historical than predictive. Restaurants are classified as a medium-growth industry, with a 5% annual compounded growth rate from 2010 to 2015. Demand is tied to consumer demographics, discretionary spending, and local tastes. Alcohol is an important revenue stream for this industry, especially for full-service and high-end restaurants.

Bar and Nightclub Industry
The bar and nightclub industry is smaller, at $18 billion per year and on par with the NRA’s predictions. The industry comprises about 45,000 businesses throughout the United States. This highly fragmented industry is dominated by smaller players. The greatest drivers for business are personal income and entertainment needs revolving around local areas. Beer and distilled spirits (or hard liquor) claims the greatest share of sales, at 35% and 30%, respectively, with food and non-alcoholic beverages following up at 20% and wine at 7%. Profitability depends on the ability of businesses to create loyal clientele and to drive new traffic to the establishment. Smaller businesses compete successfully with larger companies by offering unique products and services, which will one of Sh-Boom’s most salient advantages.

» U.S. consumer spending on services, an indicator of recreational activities like bars and nightclubs, rose 1.3% in November 2010 compared to the same month in 2009.
» U.S. tourism spending for food services and drinking places, an indicator for bars and nightclub revenues, increased 3.9% in the third quarter of 2010 compared to the same period in 2009.

First Research Industry Growth Rating – Bars and Nightclubs
› Demand: Depends on consumer income
› Need: To attract traffic and develop loyal clientele
› Risk: Competition from alternative venues and greater regulation

Drinking Places Demand Growth Evens

Location Analysis
Sh-Boom’s will be located on Route 37 in Massena, New York, and will extend its influence to the ZIP codes of 13662, 13676, 13669, 13617, and 12953, as well as parts of Ontario, Canada. The following table analyzes the populations living within these aforementioned ZIP codes. This information is provided by Esri, a market research firm.

ZIP Codes 13662, 13676, 13669, 13617, and 12953– Demographic Report
13662
(Massena) 13676
(Potsdam) 13669
(Ogdensburg) 13617
(Canton) 12953
(Malone)

2010 Total Population 16,241 14,755 16,760 10,798 15,793
2015 Total Population 15,940 14,614 16,400 10,711 15,671
2010 – 2015 Annual Rate -0.37% -0.19% -0.43% -0.16% -0.15%

2010 Households 6,962 5,393 5,939 3,452 4,573
2010 Average Household Size 2.27 2.24 2.36 2.35 2.35
2010 Families 4,429 3,011 3,825 2,180 2,923
2010 Average Family Size 2.80 2.84 2.87 2.92 2.89

2010 Households by Income
Household Income Base 6,962 5,393 5,939 3,452 4,573
< $15,000 16.4% 20.6% 16.5% 10.0% 13.6%
$15,000 – $24,999 12.6% 11.8% 14.2% 11.0% 16.0%
$25,000 – $34,999 11.8% 11.6% 13.5% 12.5% 21.1%
$35,000 – $49,999 16.3% 16.4% 15.9% 16.9% 11.4%
$50,000 – $74,999 24.2% 21.8% 22.8% 27.1% 23.6%
$75,000 – $99,999 9.8% 8.1% 8.9% 9.9% 6.9%
$100,000 – $149,999 6.7% 7.3% 5.6% 10.6% 4.6%
$150,000 – $199,999 1.1% 1.4% 1.1% 1.0% 1.6%
$200,000 + 1.0% 1.0% 1.4% 1.0% 1.2%
Average Household Income $51,389 $49,110 $49,523 $57,439 $48,315

2010 Population by Age
Total 16,241 14,755 16,760 10,798 15,793
0 – 4 5.8% 4.6% 5.0% 4.2% 3.8%
5 – 9 5.8% 4.8% 4.9% 4.0% 3.7%
10 – 14 5.8% 4.9% 4.9% 4.4% 3.8%
15 – 19 6.0% 13.3% 5.9% 15.4% 4.9%
20 – 24 5.8% 19.5% 7.5% 16.4% 8.8%
25 – 34 11.5% 10.6% 15.3% 10.7% 20.4%
35 – 44 12.0% 9.5% 15.1% 9.2% 17.6%
45 – 54 15.8% 11.8% 14.8% 12.1% 13.7%
55 – 64 14.1% 9.8% 12.0% 10.7% 10.1%
65 – 74 8.2% 5.6% 7.0% 6.8% 6.2%
75 – 84 6.5% 3.7% 4.8% 4.0% 4.5%
85+ 2.9% 1.9% 2.7% 2.3% 2.4%
18+ 78.8% 82.7% 81.4% 85.0% 85.8%

2010 Population 15+ by Marital Status
Total 13,424 12,647 14,271 9,441 14,005
Never Married 26.5% 48.4% 35.6% 38.6% 41.0%
Married 56.0% 39.7% 46.8% 48.7% 45.3%
Widowed 7.9% 5.7% 7.3% 6.1% 6.2%
Divorced 9.6% 6.2% 10.3% 6.6% 7.5%

2010 Employed Population 16+ by Job
Total 6,730 6,039 6,164 4,648 5,151
White Collar 51.4% 59.5% 53.6% 63.9% 57.1%
Management/Business/Financial 9.7% 7.4% 9.7% 12.3% 9.7%
Professional 18.8% 30.7% 23.3% 33.2% 24.0%
Sales 11.9% 9.8% 9.0% 6.1% 11.7%
Administrative Support 11.0% 11.5% 11.6% 12.3% 11.7%
Services 25.0% 26.1% 28.5% 18.9% 23.2%
Blue Collar 23.6% 14.4% 17.8% 17.2% 19.8%
Farming/Forestry/Fishing 0.1% 0.6% 1.1% 0.8% 0.9%
Construction/Extraction 5.0% 4.4% 4.1% 4.3% 6.1%
Installation/Maintenance/Repair 4.4% 2.4% 3.1% 3.6% 2.2%
Production 6.5% 3.1% 4.4% 3.5% 4.9%
Transportation/Material Moving 7.5% 3.9% 5.1% 5.0% 5.6%

2010 Educational Attainment (Age 25+)
Total 11,511 7,802 12,012 6,016 11,846
Less than 9th Grade 5.1% 3.8% 8.2% 4.4% 14.5%
9th – 12th Grade, No Diploma 6.5% 4.9% 13.3% 5.1% 20.6%
High School Graduate 43.1% 31.2% 37.1% 28.1% 31.4%
Some College, No Degree 15.0% 12.3% 14.3% 12.5% 10.8%
Associate Degree 10.0% 11.2% 11.6% 14.6% 9.2%
Bachelor’s Degree 12.2% 15.4% 8.1% 14.9% 7.1%
Graduate/Professional Degree 8.2% 21.1% 7.5% 20.4% 6.4%

2010 Consumer Spending

Food Away From Home: Total $ $16,593,204 $12,698,132 $13,668,888 $9,231,596 $10,217,599
Average Spent $2,383.40 $2,354.56 $2,301.55 $2,674.27 $2,234.33

The eating and drinking places industries are analyzed in the following tables on a national, state, and local level using information from Dun & Bradstreet. Note that different research firms use different methods to collect and quantify data, so D&B numbers will not match those of First Research (or of any other database). Having multiple views of an industry helps to draw a more well-rounded view of a market. D&B in particular provides drilled-down views of local areas and relevant industry subsets, both advantages over First Research’s insights.

Industry: Eating Places (SIC 5812)
Estimated number of U.S. establishments: 501,292
Number of people employed in this industry: 6,506,462
Total annual sales in this industry: $252.923 billion
Average number of employees per establishment: 17
Average sales per establishment (unknown values are excluded from the average): $900,000
Market Analysis by State and Metro
State/Metro #
Businesses %
Total Total
Employees Total
Sales Average
Employees Average
Sales
New York 34,206 6.8 326,222 $10.836 B 13 $500,000
Market Analysis by Subset
Subset #
Businesses %
Total Total
Employees Total
Sales Average
Employees Average
Sales
American food 12,528 2.5% 303,112 $7.415 B 12,528 $800,000
Indep. family restaurants 6,415 1.3% 135,231 $3.823 B 22 $700,000

Industry: Drinking Places (SIC 5813)
Estimated number of U.S. establishments: 59,074
Number of people employed in this industry: 415,183
Total annual sales in this industry: $15.965 billion
Average number of employees per establishment: 7
Average sales per establishment (unknown values are excluded from the average): $300,000
Market Analysis by State and Metro
State/Metro #
Businesses %
Total Total
Employees Total
Sales Average
Employees Average
Sales
New York 3,846 6.5% 22,553 $891.5 M 6 $200,000
Market Analysis by Subset
Drinking places 11,988 20.3% 80,003 $4.201 B 7 $400,000
Bars and lounges 3,720 6.3% 26,875 $890.5 M 7 $200,000
Bar (drinking places) 12,063 20.4% 92,244 $3.211 B 8 $300,000
Cocktail lounge 6,930 11.7% 46,759 $1.620 B 7 $200,000
Night clubs 4,443 7.5% 49,878 $1.833 B 11 $400,000