||RM300,001 to RM600,000
||Open a Gothic-themed bar and grill in a strategic area in KL/PJ which serves lunch and dinner and it’s basically Western cuisine with a slight diner concept where it functions as a diner from lunch till the evening with high seats on the bar area and then it becomes a bar at night.
The place will be named “Fangren Bar & Grill” to be catchy and the interior design will look like a western cowboy like diner/bar with mostly wooden tables and appliances. The food menu will be prepared by my and will be extremely unique and have great American cuisines such as ‘spicy buffalo wings’ and special deluxe burgers. The drinks will be extremely unique some of it are created to look like the patrons are drinking blood.
We will hire only waitresses to take the orders and deliver the food and these girls would wear a tight white t-shirt with black shorts and and fish net stockings to give a Gothic vampiric look which is classy and sexy.
The atmosphere will be dark and gloomy with halogen lights around the bar to make it look creepy and uniquely romantic at the same time. We will have rock and hip hop music and there will be a small stage at the most strategic part of the bar where patrons can dance when the bar starts to become crowded at night.
There will also be a pool table a corner of the bar for patrons who like that and it encourages participation by the customers.
||The market for this concept is very big and it is like killing two birds with one stone. First, you can exploit the popularity of vampire media in the world today to lure people to come into this establishment. Many young people in Malaysia, especially in the city have seen vampire-themed movies and series in the past few years – to name a few we had True Blood in 2008-2014 and now we have The Vampire Diaries and The Originals which are really huge vampire TV series, not to mention the wide variety of vampire movies (Underworld series, Dracula..) and novels that are out to the public. Hence, marketing-wise the message is already out there, this is just filling up the gap in a market that does no exist in Malaysia yet because no one dared explore this. If Hello Kitty cafes can be so successful and people are willing to spend so much eating overpriced cakes in colorful, bright cutesy looking places, why wouldn’t they spend more to explore their darker side?
Second, our opportunity comes from the Western concept we can provide to patrons. In Malaysia, to eat the best and most authentic Western food, most people flock to TGI Fridays, Chillis or Morganfields. We can provide the same experience in an even more unique way. Imagine having a burger called “Trumburger” or a red-colored vodka strawberry drink called “Human Blood”, we are able to give patrons the same Western products with an even more creative presentation.
Plus, buffalo wings with ranch is not huge in Malaysia yet, we can offer wings night here and start to expand this segment into Malaysian city folks.
|Revenue / Business Model
||Fixed costs would be a primary concern here as we are going to incur costs for rent, salaries, overhead expenses and variable costs are the products and materials used to make our food/drinks, renovations and the furniture, appliances and decorations around the establishment. Large initial investment needed for the cookware to make our products.
Say we spend RM200k initially to set it up and then every month capital expenses (F+V costs) come to about RM230k, we have RM230k expenditure in the first month already . The first target is to breakeven the RM30k we spend every month to maintain the place – only after breaking even can we recoup the initial RM200k spent and the target I give is within 6 months. So some bleeding is expected initially but if we are able to keep initial customers and further grow our customer base – the target is attainable.
For a general market size target we first assume we have 12 tables in this establishment, which is corner shoplot and it can seat about 60 customers, then we can also seat about 20-30 customers in our bar area. At full capacity we can seat close to 100 people at any time. Assume at peak days (Saturday, Sunday and public holidays – we get 400 customers for the entire day and average spend is RM150- that is RM6,000 a day. For non-peak days assume it is 1/3 of that – RM2,000. One month projection comes to about 20 non peak days = RM40,000, 10 Peak days – RM60,000 – This is assuming maximum capacity at most times which is not viable but there you can see the potential to make money. Give it a 50% discount we break even already.
To minimize cost, management (me) would also be hosts at peak hours and double roles as bartender and entertainer so we don’t have to hire too many staffs. And for our female staffs, we hire local college girls so that we don’t have to pay too much wages (same strategy as BurgerLab), for some of the staffs we can hire English-speaking freelance Viet/Thai girls who in my experience, can be easily procured.
||Operational and Financial Manager – Nicholas Jack
-Graduated with first class honors from Pennsylvania State University, USA with one year experience in corporate finance and two years experience in investor relations. Creative, energetic and keen to be a business owner and very fond of the American culture.
-Would be responsible for the entire menu creation, design of the bar and concept, hiring of staffs, promotion/marketing (some marketing ideas include collaboration with Dan Khoo, popular social media YouTuber – mutual friend of mine to promote it on social media, liase with Hitz FM and the media such as The Star – contacts which I have from my Investor Relations job to help promote it, also have a FB page and Youtube account to showcase our restaurant and get friends who are able to make professional web pages to create our web page with the lowest cost under my supervision and finally hold promotional events around malls to handout flyers to viralize our restaurant)-Would hire another manager in F&B to help out with the operations to leverage on his/her experience for the first 6 months and then fire the person when I already obtained the experience to run the place myself fully.
||-If funding allocated, I project that we only need 2-3 months to get the place running. Market and location area have already been studied and I have identified which area is feasible to target our customers (primarily we are going for patrons between 18-40)
-Profit target : Achieve break even within 6 months. 10% EBIT margin after one year at least.
||RM600k funding required roughly from a basic financial model.
RM250k – to set up the business
RM300k- To sustain the business for first 6 months until profits start surpassing the target required
RM50k – Keep as cash for emergency uses
|% Equity Allocation
||25% from year 2 onwards
|Risks and Mitigation
||Some risks are younger Malaysian consumers do not buy into the Western vampire themed concept and do not become loyal customers to the place.
Another risk would be another competitor trying to open a similar type of establishment to copy our idea.
Not enough female patrons visit the place, rendering it to be boring as if we get too many male patrons as the ratio would be unbalanced.
||After close to 5 years once you have gotten back all your initial investment you can choose to sell the organization to another investor, potentially a Western investor who would be very keen to own such sort of establishments.