Case Study
Matt's Pool Hall and Bar is open 4pm to lam seven days a week
It has 5 Pool Tables and room for another 50-60 patrons
It hosts Pool Leagues Monday, Tuesday, Wednesday and Thursday evenings
Each League (evening) has 10 teams of 6 players each, and the games generally go from 7pm to midnight
The cost to play Pool is $2 per game (generally generating $60 per table per night)
Menu prices are
Beer/Wine $5
Water/Soft Drinks $2
Cocktails $10
Burgers $10
Pizza $10
Fries $5
Average check per Pool Patron is approximately $35 ($15 in Food and $20 in Beverage)
Average Revenue per evening---
|
Night
|
Bar
|
Food
|
|
Sunday
|
$500
|
$700
|
|
Monday
|
$1500
|
$1700
|
|
Tuesday
|
$1600
|
$1800
|
|
Wednesday
|
$1600
|
$1800
|
|
Thursday
|
$1700
|
$1900
|
|
Friday
|
$2000
|
$2000
|
|
Saturday
|
$2000
|
$2000
|
Food Cost runs 28.5% Beverage Cost runs 21.5% Labor Cost runs 20%
Matt's Pool Hall and Bar has been approached to host a Regional Pool Tournament for the weekend of November 11 & 12 (Saturday and Sunday) with 3 rounds of play (9am, 2pm & 7pm). Though this may sound like a no-brainer, the Regional Tournament Chairperson wants to charge Matt $1500 for the opportunity to host said event.
Assignment- Do an analysis of said opportunity and provide detail about what strategies Matt would need to embrace in order to maximize this event, including menus, pricing, etc. Your overview should be 3-4 pages of explanation with charts/tables, a P&L, etc. And....be prepared to present your findings or recommendations to the class in a 3--4 minute presentation. Remember to consider all the key steps in a 'Business Plan'.