Amiel Bailey

Franklin, KY (USA)
Role(s):
Founder/Owner/Principal

Kowboy's Bar BQ

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Location: Franklin
Industry: Food Service/Restaurant
Year Founded: 2007
Number Employees: 1-10 people
Business Stage: Growth (not profitable)
Entity Type: Sole Proprietorship
Description: Company Description Kowboy Lee’s,Inc., a Kentucky Based company , will operate Kowboy’s Bar-B-Que, a single unit, medium sized restaurant serving healthy , contemporary style Bar-B-Que. The restaurant will be located at Exit 6, Scottsville Road in Franklin, Kentucky. Mission Statement The company's goal is that of a multi-faceted success. Our first responsibility is to the financial well-being of the restaurant. We will meet this goal while trying to consider; 1) the effect of our products on the health and well being of our customers (and staff). 2) The high quality of attitude, fairness, understanding, and generosity between management, staff, customers, and vendors. Awareness of all these factors and the responsible actions that result will give our efforts a sense of purpose and meaning beyond our basic financial goals. Development & Status The company was founded by Kowboy Lee and is a subchapter C corporation. Kowboy Lee is the President and his wife Lydia Darlene the vice president. There are a total of 10,000 shares of common stock issued. Darlene and Lee each own 3,000 and the remainder are retained by the company for future distribution. In addition they have loaned the company $100,000 of their own money for research and startup costs. A suitable site for the first restaurant was found last month and lease negotiations are (URL removed) location will be on highway 100 at exit 6 and close to a dense population of the target market. When the lease is signed there will be three months of free rent for construction and in that time the balance of the start-up funds must be raised. With that phase completed, Kowboy’s Restaurant can then open and the operations phase of the project can begin. Future Plans The business is meeting its projections by month four. Our five year goal is to have the restaurant with an annual profit of between $500,000 and $1,000,000. Industry Analysis Although the restaurant industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Trends are very important and Kowboy’s is well positioned for the current interest in Bar-B-Que foods at moderate prices. The Restaurant Industry Today The food service business is the third largest industry in the country. It accounts for over $240 billion annually in sales. The independent restaurant accounts for 15% of that total. The average American spends 15% of his/her income on meals away from home. This number has been increasing for the past seven years. In the past five years the restaurant industry has out-performed the national GNP by 40%. The reasons given by the Folkney Report (November 1994) are 1) lifestyle changes, 2) economic climate, and 3) increase of product variety. Future Trends & Strategic Opportunities The predicated growth trend is very positive both in short and long-term projections. As modern living creates more demands, people will be compelled to eat more meals away from home. In 1988 The National Restaurant Association released the Foodservice Industry 2000 report that forecasted how the industry might look in the year 2000. Some highlights from the panel's findings: •"Consumers will spend a greater proportion of their food dollar away from home. •Independent operators and entrepreneurs will be the main source of new restaurant concepts. •Nutritional concerns will be critical at all types of foodservice operations, and food flavors will be important. •Environmental concerns will receive increased attention." Products & Related Services Kowboy’s Bar-B-Que Restaurant will be offering a menu of food and beverages with a distinctive image. There will be three ways to purchase these products; at the restaurant, take-out from the restaurant, and limited delivery to home or office. (catering) The Menu The menu (see appendices) is moderate sized, and moderate-low priced offering a collection of ethnic and American items with a common theme -- healthy Bar-B-Que (natural ingredients), flavorful, and familiar. Our goal is to create the image of satisfying and still nutritious food. There has been an increased awareness of nutritional and health concerns in recent years and a growing market of people who now eat this style of cooking regularly. Production Food production and assembly will take place in the kitchen of the restaurant. Fresh vegetables, meat and dairy products will be used to create most of the dishes from scratch. The cooks will exercise strict standards of sanitation, quality production, and presentation or packaging over the kitchen and service staff. Service There will be two ways a customer can purchase food. They may order from the cashier and sit down at one of the 124 seats in the dining room. A separate take-out counter will service those who wish to pick up their food. Most take-out food will be prepared to order with orders coming from the telephone. An evening option in the future may include ordering from a menu with full service wait staff. Future Opportunities There is a market segment that prefers to eat this type of cooking at home although they do not have the time to cook. There are already caterers and even mail order companies that provide individuals and families with up to a month's supply of pre-prepared meals. This opportunity will be researched and developed on a trial basis. If successful, it could become a major new source of income without creating the need for additional staff or production space. The Target Market The market for Kowboy’s Bar-B-Que products covers four primary groups of people. There are two factories and a warehousing operation as well as several truck stops, and there several other business in the area, Motels and so forth.1) local workers from businesses in area. 2) Truck drivers. 3) Towns people. People going to town to eat. People coming from town to eat. 4) Tourists. This restaurant will sit across the street from the entrance to Garvin’s (camping world style) operation at exit 6 of I-65 interstate. Market Location & Customers The customer base will come from 4 major segments; • Local population – A good Bar-B-Que is universally loved • Tourism –I-65 has a lot of traffic. • Local businesses – day shift and second shift workers lunches • Truckers- Truckers will flock to this business The food concept and product image of Kowboy’s will attract 4 different customer profiles; • The Worker – day shift or second shift local business people • The health conscious person of any age or sex -- instead of fast food experiences or packing it from home. • Curious and open-minded -- "if you try it, you will like it." Through publicity, and word-of-mouth, people will seek out a new experience and learn that Bar-B-Que can be tasty, fun, convenient, and inexpensive. • The Tourist – they come south, they go north, they stop, get gas for the car and food for the body Perhaps (nourishment for the soul) Good-GOD-Que. Market Trends & The Future The population and demographics of Franklin have remained steady for the last 25 years. Tourism has increased 24% over the last 3 years and is predicted to keep growing. The Competition There is no competition to this restaurant. There are only fast food Franchises at three truck stops and convience store cokes and such. There are no sit down style restaurants at exit 6. Kowboy’s will have almost complete market dominance at this location. Competitor's Profile Truck stop Chester Fried Chicken Truck stop Subway Truck stop Wendy’s Competitive Strategy There are three major ways in which we will create an advantage over our competitors; • product identity, quality, and novelty • high employee motivation and good sales attitude • Innovative and aggressive service options. Kowboy’s will be the only restaurant among all the competition which focuses the entire menu on Bar-B-Que cooking. The target market will perceive Kowboy’s Bar-B-Que as the destination location. Once they have tried the restaurant, their experience will be reinforced by friendly, efficient, knowledgeable service. Return and repeat business will be facilitated by accessible take-out and delivery options Marketing Plan & Sales Strategy Market Penetration Entry into the market should not be a problem. The store has high visibility with heavy traffic all day long. The local residents always support new restaurants and the tourists do not have fixed preferences. Marketing Strategy Focusing on the unique aspect of the product theme (Bar-B-Que, tasty foods) a mix of marketing vehicles will be created to convey our presence, our image, and our message. • Print media -- local newspapers, magazines ,etc. • Broadcast media -- local programming and special interest shows • Hotel guides Chamber of Commerce brochures • Direct mail -- subscriber lists, offices for delivery • Misc. -- yellow pages, charity events The marketing effort will be split into 3 phases; 1) Opening -- 2) Ongoing – 3) Point of sale -- A well-trained staff can increase the average check as well as enhancing the customer's overall experience. Word-of-mouth referral is very important in building a customer base. Future plans and Strategic Opportunities Catering to factories (even outside of our local area) may become a large part of gross sales. At that point an employee would be hired to directly market our products for daily delivery or catered functions. Operations Facilities & Offices The restaurant will be built to Kowboy’s Blueprints. Licenses and codes' issues are all in order. New equipment and dining room furnishings will be purchased and installed by the general contractor. Offices of the corporation are presently at Kowboy Lee’s home but will be moved to the restaurant after opening. Hours of Operation The restaurant will be open for lunch and dinner 5 days a week Tue -Sat. Service will begin at 10:30 AM and end at 8:00 PM. Weekends till 11:00 pm. The restaurant will be closed Christmas, Thanksgiving, and the Fourth of July. Employee Training & Education Employees will be trained not only in their specific operational duties but in the philosophy and applications of our concept. They will receive extensive information from the Owner and be kept informed of the latest information on Bar-B-Que. Systems & Controls A big emphasis is being placed on extensive research into the quality and integrity of our products. They will constantly be tested for our own high standards of freshness and purity. Food costs and inventory control will be handled by our staff and checked daily. Food Production Most food will be prepared on the premises. The kitchen will be designed for high standards of sanitary efficiency and cleaned daily. Food will be made mostly to order and stored in large coolers. Delivery & Catering Food for delivery may be similar to take-out (prepared to order) or it may be prepared earlier and stocked. Catering will be treated as deliveries. Management & Organization Key Employees & Principals Lee Leach, President. Darlene Leach, vice President. Lee’s management style is innovative and in keeping with the corporate style outlined in the mission statement. Compensation & Incentives Kowboy’s will offer competitive wages and salaries to all employees with benefit packages available to key personnel only. Consultants & Professional Support Resources At the present, no outside consults have been retained, Management Structure & Style Lee Leach will be the President and Chief Operating Officer. Darlene will be the general manager and chief chef and will report to him. Any assistant manager or chef will report to the general manager, and all other employees will be subordinate to them. Ownership Lee Leach and the stockholders will retain ownership with the possibility of offering stock to key employees if deemed appropriate. Goals Kowboy’s is an innovative concept that targets a new, growing market. We assume that the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality, consistency and security (safety of food) that will make us the leader of a new style of dining. Strategies Our marketing efforts will be concentrated on lunches and take-out, the areas of most promising growth. As the market changes, new products may be added to maintain sales. Milestones After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at the end of year 1, we will look to expand to a second unit if there is an opportunity to. Risk Evaluation With any new venture, there is risk involved. The success of our project hinges on the strength and acceptance of a fairly new market. Exit Plan Ideally, Kowboy’s will grow to a multi million dollar business. At that time, we will entertain the possibility of a buy-out by a larger restaurant concern or actively seek to sell to a new owner.