0 L UCKY S TRIKE ORIGINA L S EXPANSION INTO BA T Co's MARKETS Prepared By: Peter Crossing & John Lee For: BAT Co. Date: April 1994 BATCo document for Legal Services : Health Canada 21 October 1999 INDEX/CONTENTS 1 . The Brief 2.Project Tearn Surnmarv 3.' Report on Visit to Berlin 4. The Existing Operation 5, The Way Ahead 6. The Lucky Strike Concept Briefing Document 7. Hospitality Europe 8. Country and City Expansion Listing 9. Possible Major Company Partner's 10. Menu of Pecple Actions 0' k- BATCo document for Legal Services : Health Canada 21 October 1999 CONFIDENTIAL LUCKY STRIKE ORIGINALS Expansion Into BATCo's Markets The Brief BAT Co. wish to advertise !-e brand to tne target audience without criticism. This exercise is a:--L,,t 'Marketing the Brand' not diversification into retail catering. The instruction is to visit the ".7st operation, located in Berlin, to - understand the conc-:-::: - discuss the performa,.:-= of the operation with BATCF and their pariners Lucky Peo , pie - produce a report and ::.-.-posal recommending the way ahead. The requirernent is ta comp'=-%-- the recommendation and report to BAT Co., so that: - partners can be founZ - expansion in Germar,-.; will be handled by BATCF who have already found an expe ; - , enced partner in Hamburg who can set up a quality operation rm~cr, cheaper. Other European countries are the responsibility of Et 71 Co. - the oPerating compar-.:=-s will need to buy into the expansion plans as '~,,e central i.e. Mii!cank manaced budget will be tiny. The OpCcs Will need to fL7'-4 the setting up and exploitation costs. - a proji-ect nrianaaemen, service car be provided. It must be remembered tha- ::~is is not the areatest or most important priority to SA7 , SO We Must c.-eate a vehicle, which is simple to unders' kand. simple to achie-.e and which meets the BAT objectives in the shor. medium and lonc :=-rm. The Background BAT Cc. wishes to be able '-- market and advertise the name and brand of Luckv, Strike cigarettes. 7; ~--e LSO is an pre-emptive measure in advance cf fuLure advertisl:.--, restrictions. A total ban is expected within 3 years. C", BATCo document for Legal Services : Health Canada 21 October 1999 The main target group, is 18-24 years old with a secondary tarce~ to 30, middle to higner education and income. Scene people, trend setlers. opinion formers. E " 63?"NT Co. sees the function of cafe, bar, music club and shop as a 'total' : package of success. I he emphasis in or quality and American oHginals i.e. food. atmosphere. service and goods. These aspects are seen as paramount in correctly presenting the positioning and in suppor,,ing the brand. I o complete a feasibility study, detailing and considerations for BAT Co. to achieve their main objective. Areas to be covered would be: Report on the trip to Berlin - i.e. develop options and considerations for -AT Co. to acil-iieve their main objective. Areas to be covered would be; Recommendation for roll-out countries such as France and Spain, at a late~ date. Note: A French partner has been found by SEITA but legal agreements between SEITA and BAT Co. needs to be concluded firs', ii. Who do we go with ?--i.e. a partner via the Brewers? iii. How car we achieve our obiectives IV. What iS the time frame? V. SVV07 analysis by country "i. Whiat Is the menu of people actions vii. A budget costing including exploitation in line with the different market norms. viii. To obtain all facts and figures of the existing foodifliquor/music and shop operation. The Project Team Fleter Crossing ichn Lee BATCo document for Legal Services: Health Canada 21 October 1999 PROJECT TEAM SUMMARY T'---- :,1p tc ~Eemn and visit to the Lucky Strike Originais. was an in`::rmative and uselul exercise. The S3ATCF people and their partners L:c.~,i ~~ec.ole .vere extremely friendly and most helpful, both in givi2g t~z_:r :ime and sutjective vie,,vs of the first LSO :~-.e his -.op, e ration will undcubtedly be hugely successful over tim.e. t11--te -ro,ie--*. team do not believe that the first LSO, is the pre-i- venic!e with to expand ac,-oss E-_~rcple. The concept is not s -_ t, c: to brand or indeed "sell". to possible partners. It !-neet ff,,e r7-,a;~n target age croup. or have the flexibility and appea'. ful. It is unli,~e)y tl~,a7 :2 fc- -ne ocera'on to be replicated and be successi - - pla,,lzr -,,.ould acree to go with the current proposition. This a7er is I :.-a in :n e report and rec--mmendations for the fUtLre, have - Co. should give strong consideration to developing -;ith I.r. e E-A L a pariner. one who is capable of funding and r-nanaging a grouc of cL:rle~s. ac.,oss one or more countries. The alternative of choosinc ir,-.4ividuali enzrepreneurs, which whilst it does have certain appeal. wii! :--r E/1 t. be much slower and become re-, ire cra~ IJ Co. involvement llr_agrnenzed. as each individual does his or her own variation. -__-r,-.~_-ina:,:n of music clui_-. shop with mailing facility, the Raymc7d ---uran, and bar, is new and hence ex,-:':," -~,u;-,--azion plus a rest-- 1.v;i! be 7nany groups who could operate the food and liquor ;sinesses. --: 47 Co. will want to be centrally involved in the sho , C me.-cm.andise. 7ne area for concern wii! be the music club. where "'Jil be necSssar-.. -.c agree strict minimiurn operating criter~ia. with the It may .~.,ell be that some form ol central booking acenc,,; t_ ove rnfus.;c-;_::~s. is the best way fcr,varc. S - z t t , , -r ject lo h:-:- -.ious legal restrictions and !imitations of each cou,--,:-.;. ~i-- *z=-, '-elieve that the de~ails contained within this repor-. can -,~:7 ~ne tas;s a-ld first step. in, achievinc Lhe TMD objectives. for _~,~,7 it) Cz BATCo document for Legal Services : Health Canada.21 October 1999 REPORT ON THE VISIT TO BERLIN Backwound Peter Cir-cssin.,; and John Le-e- of 1-33SE DcrIand visited Berlin betveen t1he 141Lh-16t7, ;'siting the -SO site and completing meetings wit,t Liz O'Cailac~--:-l U1 K E' -A - C c - Legal Hendrik vcn 7*-=~yjl- B A T C FF Legal A - F Volker Pee;h BrJI-F Brand %Ianager Klaus Rcbier L S 0 Partner Klaus Spies~.---cer LSO Partner It was clearly e ;ident tl~a'~ the oriGinal concept and propcs:.4;;,:,r, ha- ,een, aiter=.j and, refine-J. since opening last surnmer. The financia: -_:.-,-angernent of the pa:-~-,e,ship between LSP and EAT CF is gerier_-_~s -SP and therefore does not dernand them to be as as other '1~;ture parners will need and want 'to financia:ly a-..-.,: -e t The curient conflicts with our understanding of the style and target a!--dience. pricr to the visik. The 163erlin LSO operation is ty;~icall,y 'an entr-=Pre.-_~;r;;aI first". Eecause of 'ine financial structure and marketing succori. couple.--- with the anticipated development of 'he surroundinc; areas and most importantly the involvement of Kiaus Rcibler and Kla:-,s SPle-s-berger this project will at some future time, become -ui. Howeier, I cr huaely s-.;cc=-ssl WhiiSt the operation may well be right the Ber'j-, !cc---:or,. the present o.ceraticn is not robust enough in its thinking. s7vie ::r packaging to be ready to offer to other partners in ot,her countries. T- S aS.cemct wik need tc te d'iscussed and addressed in due course. The Site The site :-- beinc !ocated a-. tklne heart of Old Berlin, ber,%,eer Fried ric ~,stras_:._= and muse-~;m is~and. tetween the Humboldt 'Un;'Versit" and Aiexande-z!atz. The _=~ail units are situated in several arches. under a -aiilwa-, , line. These archesovere formedy used as bunkers, during World ';,ar Two and latterly as ar, arsenal. Separate storage facilities --- tdhe -ear of the cremises occupy space previously used as a prison. Trams ncvv , e giiarly pass :,y the LSO operation and there are some street ca-joancnc opportumties. Hcv,,ever, as the location is _10L on a Hiah Street c- -_~,usy thoroughfare. there is not a high traffic, or pedestrian flow. pas- the zremisas, Similarly. whil-st the area will become a floca; t point cf ~_nte-a!nrnent in L*7o_= future. it i~_ currently a little like Covent Garder, .- th;-~ -,:e 7 0 s. Y.Ieie *Ihe ~~oci~ Oarden was developed -he-=--; of othe- *zurs-. ~~rd retail c_-nsume~ ac.iifies. So. with few offices or BATCo document for Legal Services : Health Canada 21 October 1999 shops ~%eam~_v, there is liltle da vtime taze. The operation currently stands 1~asecl on `ts abflity Lo ac' as a venue. The Operation Finisihes ;a- *,,,,,e LSO are hich and therefDre expensive. This whole area needs *,c ~--e evaluated and reviewed. as ',~,is c ' peration has not really been se-uc as an experiment for a Eurc.pean cll-out. Centralisation of manv aSzPec!~-. such as s,,ratecies. szancarls. zrocedures. manuals etc. will neec zc 'ce developed. These will not only aid communication both internaI,y arc externally but will alsc COStS significantly on most areas. P;-i._~;!arly design. furniture am' finishes. If the ecs of the operation COnlinue to be seem, as of equa: impor.a.7-ilce. tnen the lay-out. enhancirg, custcmer and employee flow. "T Co. objectives, the will ne=---z: ;c b:z reviewed4. In orde.~ to ac:~eve -nn priorir,.i *~a`~-g order should rea-: 1 . 7-e 'A~sic Club 2. iY_:,:; 0rder Data Base and Shc 3. Scec:ai Events and T he Raymcnai Lov,~,i Foundation 4. 7-e ::~.~od and Drink Operaticr From thee :;a:-,rer viewpoint. assuming a national operator as opposedlo a one-c-'~ then the firs', priority is the food and drink operaticn. IMarrying these different needs and requirements should not be difficu!'. P;mviding the key objectives are never forgotten. t re The of space utilisaLicr, .vill be ver; important in the fULU and sc; of say 10,000sq lit or so ME be needed. For exampie, ~'7. --rderto be really successluL the riusic club needs to accommcza:ebe~,veen 400 and 500 peoole. T he food and liquor retail will re~;-_-:r& an area of approximately 4.000, sq. -.'(. The tjhir" SO partner, Michael B;ack. has proved to be a weak link. The or;,g7,a!* menu ideas of Cajun and Southern style cooking have not lasted. Thekitchen areaz. stores and seniice line are poor, not allowing a flow tc- -,"=- operacion. Service speec; from the kitchen, was not as fast as it si-touic :;e. The menu content Is confuserd. of Poor se!ecticn and not we!': cres-ented. The eatina exoerierce d--es not take the customers on a 1cur-_e-,. and was not memorable. The styie of the reStaurant is classy --=::ks total chiarisma. Staf, ser,6ce is OK but not as sharp or profess._-r~a -as it should be. Boctri seating for up to eight people, mate good standards. diffiCUIL lor 'he stat"I. CUStC'77-_=~_Z -~ the Restaurant and Ear. do not -seem to meet the tarcet audiencz r any way. Certainly 'he ace profilewas more 35 to 50- Sturde~,,_s --:.Id not affcrd to eat m 'he restaurant. Apart from Friday and BATCo document for Legal Services : Health Canada 21 October 1999 Saturca.. evenings and Sunda-,, day-tirne, the opera:';on is quie-,. LSP have re_--~tly introd'-ced ai;' day opening but at presenr busi-.7ess is very slow a:7~: -ney will ur7doubtedfly be losing money. It is difficult +.-- make nicit time operations Y,,crk throuc.7clit the day an: *.ris site is -;c excenon. The whole opera~= is star~.,;ng to lose focus a:---' direction. in so far as a new national par-.;----r is ccncerned. If SAT C-_ are going Ic iinvite sa-v 'A'hitbread, to exparc as a p_.-ner, then Whitbr=--:.: will wan-, !-- see a mcre proressional and oppor..L-.7.,,. in order icr thern to invest say Elm to 2".5m per in additior -c high Freehold or le-asehold costs. Certainly they ,~Culd want a mucr cher [eve: cf, food and liquor sales together with a di;, _-re, L sales r-., x :o the eq!.:;1,ed 700~ li-uor and 30% food a'tms of LSP. i he rm~-z : club is nc: beinc max;mised and this is a -urther a rs-= of oppor par . Lic-j:a.-;y once critical mass across E:_r--pe, has ~--een achieve-z. However. ir must be- understood that this *s a highiv specialist area. Y.~-iz7 must Ute -operate-d centrally by a persor -.,iho it mus;loally educa-=---. v,,ell connec-ed and ,-,,ho has a feeling for :-1e oper-azu:Cn. Real -uld be ac'~,ieved by organising big names rom the US and succezS z. Englan--4 'or tours on a c;lrcu;L cf venues. These woL:--' run acmsS countries. using bott, LSO venues together with corcarl halls. This style of arrangement would achieve huge status and advantages fcr BzAT Co. This COL.C ,ecome a unique and cult opportunity fcr 37-AT Co. additicr,a: rnedia and rnerchandising opportunities. The on-s'-.ee shop and maii orde, data base is curren-:~ , i quite Profile. but a area of. pc-ential for EAT Go. Whilst the zolitics a-S importa-:. -:,n on-site shop luncion. which earns re-.=-nue and ;,oducas a profi?,. S a valid oQcortunit~. 7-Iis can then be linke.-J with the music ciub. and th e Paymc. nd Loe-wy foundation. `e right ~.,.cduc: quality is .,,a!. as It the range and style of goods for sale. if trie f_ood and liquor cc=--ation v.,ere a lift;e more like a TGIF/P!ane: Hoflywocra -,ard 0 Rock Ca-*=- stile c'o.ceration. th 9 n the shop could t-= -nore pr=_--tive and Lhe audie,:~e cate.-ed 'or. more directly. il -, BATCo document for Legal Services : Health Canada 21 October 1999 THE EXISTING OPERATION T bar andmusic clut commenced trading ir, ~.na '1-03. i ~-,e restaurant, iihe shop, mailing list and catalogue sales SLarted in Janua-y It , A present, I do not believe that the sihop contributes any ~ave t,"erefore ignored this "leg of the business", in the financia:' -, oce'. The shop, mailing list and catalogue sales area has the poten'l':;-. to ---eCome a highly profitable area of operation. in the future. The LSC are-n criginally designated for shop use. wii! now be used to fe~:-,~.re exhibitions, WiLh the shop contained within a small area cf -ne ~rai- entranc-n ~obby. 7, ing be!cv; its potential. Mid--.-.zzk music is : ne music club is also operat quite var'lable, with often no music or e.'ITertainment availa~--.e. ~,Vhen live bands are used. the existing room size- is on the small sic=-. accom,noclating a maximum of 250 people, all standing a~-: qu-te tightly packedin. There are a total of five concerts booked for the month of A.; rii. it is Only by featuring regular bands that theme evenings can be d The music club operates regularly on F,riclay and Saturday eve-ings. off ering live music, say a singer accompanied by a pianist, from 8--7- jun*il 11 pm, followed by a DJ (often Klaus Spiesberger) and disco opera:~ior., with Nm ited clancina until late. The live music is broadcast thrc-chout the restaurant and bar area. to acquaint diners with the off eft.-: ard' to try to persuade them. to join *the party. Diners may enter the rrm~s:c ciublfree of charge. non-diners pay 1ODM i.=-. E4 entry fee from 1 11.= Charges fcr mid-~-,,eek concerts vary accorciinc tc the artist is who a.- Overall it would appear that the music club struggles to b---k e,,en and only produces profit through the bar and liquor sales. The-s-e sa;--s are included within the total liquor figure. indicated in the financial model. The liquor mix in the music club bar is 70% to 80% beer, tC 30% wine and soft drinks. The bar counter and area are ex1rer-eiv s7nall, so it is necessary to offer table service. ir, an attempt to clev=_:':~2 sa!es. e main restaurant. has capacity or 140 diners. althou& is jnlikely tr~at more than 100 people are sented at one time , The iCa- ar---:;-: is small. but apparently large enough. The whole area exuc-eS a,- expensive, unque and quality feei. It is quite structured --z not c.mmickv in any wav. Sunday to Ti-,Lrs.J,-y evenings arc- zu e:. with the BATCo document for Legal Services: Health Canada 21 October 1999 -Utlet really coming alive on Fridays and SaLurdays. v.,ith severa. !able ,-_~rns and customersneeding to book a table in advance. W11-an '-serving a table, customers are advised cf the time the table e.'i! be available and Lold that they may occupy the table for a maxirnr_r-~ of two .ours. -lea market. which extends past the museum and within sic.-'- LSO, t :.-aws large weekend crowds of shoppers and bargain hunters. the area. Many of these pecple use LSO throughout the daytime. ~-,e averace restaurant sales between 1 Oam and 6.-m on a Saiurc_rv. are .5000M to 2,50ODM, with a record of 4,000DM. LSP have re~:entlv 7,-roduced all day opening, offering less expensive food and licl~--r, but present business is slow and they will undou.-t ,edly be losing -noney. 7' .,-iere;s a licence to seat 150 , oeo , cle extemai';v. when the wea--.=_- is n n -ortunities and,- se the avourable. This will ciearly e ha ce sales op, I -.-- U.- -j-it profile. However, it is likely that when the outside seating s =vailable. customers will want to pose and therefore be reluc*a-- *-- use --a internal area. Z~r I u ie financial model is my own estirnate as neither Klaus Rob,;;-.- Ka s '~oiesberger either knew the details or wanted to dis-close the=. My LimaLe of 300,OOODM of sales each month. takes into accou:7- tne -.,ower winter months of January, February and March, when _~nderstand that sales have been around 220,000DIVI per mor.:- aand z.-iticipates hi(:her sales in June, July and August. I would be -~,sz z-rprised if the actual ficures o er 'ed m - v a year exceec y estima-a -4 3.6m M. Simply for arithmetical ease, ! have assumed an exchance -ate of -.:zDM to El sterfina. =~nally, if the ficures given to me were gross i.e. they includec-4 V.-'.7 then ..7;:s will reduce the sales and hence profits acccrdingly. 0 U.- BATCo document for Legal Services : Health Canada 21 October 1999 FINANCIAL MODEL The _mpticn is for the calendar year 1994. Sales Sales Wx Foc-- 300,,o E432.00C 700-o 100% ota 4 G ro s-:-- =-Ofit GR% Fooc 65`1,~ 1 E280.800 L i C ,, -_ - !I 750,o E 7 5 6. 0 C,,'-' Tota~ F-7ofit 720c LESS Labc:-- 329o Utilities e. electmity 3% (E43.200) _a n d -_ Z 5 c 100 -csts /,0 Cont. utens 5 znone. repa;--- ::=. transport sunc-=--:: Total _-:--roflaccle 45~c Cos-.,-z Cont7::'-=ble Profit 271,~c E 10 Less -a-is/lice-nces 4 1 etc- C)ec7-=-- -:-:on 40~,o Tota'! =__~z-aziislm7mem 81% 1-_.200~, cosicz Repai.- ;~ree Profit . 1_ 18.60c j E267,841C 11 1 10/ (2., Less -ezairs . /0 1 Anr.,--:- _--n . 10.40c i (F- I -=; o' 0 c --, .. ;1 repa% Retair-e-z' Profit 7.20,,, E 10 3. _- C 0! befcr= BATCo,document for Legal Services : Health Canada 21 October 1999 THE WAY AHEAD There =- se.s.-al optiors open *,c BAT Co. to achieve its TMD objec-:.-_s via aan L&O type conc=-:L: e--.-.preneu7;ai opera:~rs Via :-7 majc- Eurc_-ear%. based c:rnpany An brandec. compa7, operaticn. e;y It mus: ze rer--=rnbere,-i ~,~-ant a ma-aged branded operation is nii~lk , Lo reprcd-::-= t~e --nadulter-a-ed flair. fee! or passion that LSO has achie~.--_~:. a managed --,anded operation should be mcre -,ich proNie a:7d Pr7_-'essicna:' ir, every including employee training a~id . It mav -&e;l be *.7,at EA%T Co. chocs-es a mixture of options. Hov~evee. the currer-;7 czncept an_J operaticr, is not robust enough to 'sel!' tc a major =e-ratc- and i-, does not ac~-:ieve the ideal target rinarke-. Exparz-'---n of a Lucky Strike Cafe or Lucky StHke Diner and Sar via major c:era,:_--. either by countr~or across Europe, would a&,ieve a fast. qualir,~ roll out. On the one hand, this would dive 'he maJor!-:=ra:c, a good chance to ~.,ecome established and quick.',.,- 7-cve..-:o a profittabie situa!ion. As lar as BAT Co. is concz--ne,-4. -:-:z key ob;-,ives would be quickly and efficientiv estat!~S-.ed. t.--~eby ac":ieving a 7AD capable of challengirg Nlaftcrc and Ca-ei. Fast ex:ansic- vill maximmise the music clut. and shop/mail or--=-:- business an--' ::,.,e a ce7zer piatfo-r tc develop the Raymond Loev'~.i' Found-:::'on. I believe thaz :,-e dininq ex.perieric,= should be informal and tha: this s centrai the =_-~.:,,erience and brand positioning. We are creating destina: ~Dn ve - --es. witin ar, ernPh-=sis on leading edge menu conten-.. We wa~: to ;,-.-:vate. tc be leaders. not followers. We will set uc fu;1 compe~:-:~.,-e rr_-7itoring Lc maintair brand standards, using cus~omer feedLac~. and -yst ce ., ery diner eler-.=_,~ts. We will require a baian.e.-d marke---g. aE::--_ach. in --rder to t.-;na ;;n lots of people, who ar- gr e e z ea d e d c,~ cr c e s s i c - a ~ p eo p i e. i r. a fii r s t c! a s s envi rc r -- e n' . BATCo document for Legal Services : Health Canada 21 October 1999 A well t,-::ught throuch man-power plan and Human Resource strategy needs -: be established. to achieve a caring image. Standardisation of training. -7,anuals. manpower development and audit. disciplina:- ,, and grievarc-e procedures. incentives and appraisals will ensure tha* the partner -e-c-ruits the right/best people, each of whom will be goa! orienta:e :. being an achiever and do'er. We mu-zz: establish brand values which do not rely on boom, bus.- or fad econorr-es. We must develop vaiues which are long term benefits and which the competition have difficulty in emulating. We must establish a culture '7~ L seeks to achieve success in all its activities. We need to deve!cp -= 'perc eived' sense of security like St Michael or Sainstury, i.e. guararzes-1-4 quality, value for money and faith in our own label. Other sz--,ic-ns provided f or the partner could include: a ATL STL advetisino and marketinc. o A c_---dination service via the F-European Project Manager. o Cent,---:: standards. strategies, procedures. reporting, accounting, branc ,alues, a culture, locational policy, menu development. band book:-2 arrangements, shop merchandise(N.B. profit for BA i Co.), ope~7;7- training help, design agency and project development team, furni---.-;-= and bric-a-brac, employee unifcrms (LS colours and logo's), mem~ :zvers and all promotional cards. 0 il.- C'l- BATCo document for Legal Services : Health Canada 21 October 1999 THE LUCKY STRIKE CONCEPT LSO is a retail entertainment operation, offening an informal comfortabie atmosphere to eat, drink and listen to music in. It is slightly 'trendy' in its appeal, a cross between an all day restaurant and bar operation, a music club and a cultural centre. The first LSO was opened in Berlin in June 1993. The concept which appeals to a *Wget group of 18-45 years, middle to higher educated and higher income adults, 'scer)e people', opinion leaders irorn students throuc~i to business persons and aspiring consumers. The Lucky ctrike Cate and Bar briefing document 0 1. Mission Statement The SA. T Co. mission is to provide a communication vehicle which will build Qiobal awareness of LSF and to outperform Worldwide. The key measure of BAT Co.'s success is to become the leading US international flavour cigarette. 2. Business Objective The business obiective for each LSCS is to gradually build sales to a maximum level and sustain this level via quality ser,,ice, good food and. music. 3. Marketing Objective The m2rketina objective is two fold: i o suppor-~ and enhance the image and build a re.putation ,or the out;et so that the business objective can be achieved. o provide a communication vehicle for the Lucky St~-Jke ',rand in the future. The vehicle must be consistent with the ~~rand imace. and to build aiobal awareness for LSF as a cenuine American original. U BATCo document for Legal Services : Health Canada 21 October 1999 4. Target Market The affflus- 20-40 year ace bracket within the soc;c-economic , A . :Z. i ", pal-, J Ive!y at couples, bracke, A - C1. Aime icularly but not excius; slngiesi*c:rc-.,ps. business organisations and famiHes. 0-25 year- ~s 3,0'0 of trade 25--40 ye-.-- is 60~0 of trade 40-and at:ve is 1010 of trade Gender d;,.,:s;:on Male 50'o Female 50% i he profile 5ke!y to be: :a Young sin.-es. who co out 3-4 times each week. tc. eat, to drink and to en,:-," music. Z Olde., pec:.=- show eat out once a week to once a month. 12 Aspiring young people wfth a reasonably high disposable income, currently E.C1, but likely to move up. Q People wh: require a'fuelling'stop at lunch times. z Trendy peccie who are conscious of where they are seen and what they t.-;ear. 5. Lifestyle It is impor,-;z:-,t to the success of any LSCB that it aLL-,aCtS the right type of peccle. People can'make or break'the concept. It we are to describe our ideal aueSt. it would be something-,like 'Lhis; affluent, a~t~.-active, furi loving, relaxed, young at hear, individuals, who regula-'y eat out and are prepared to enjoy, participate and experimer-. as par-, of the LSCB concept. 1 6. Physical Elements The LSCE jnits are likely to be redevelopments of existing sites, providing fc-ir key elernents: A A rr.--,..sic club Sh=' and M2ii order data base BATCo document for Legal Services : Health Canada 21 October 1999 The Raymcnc: -:)ewy Founclation./special events ar-=-= A reskauran, ar:: 'oar. Car parking either or. sz;te or nearby must be provided. Ea:i unit will have an integrate-- tzar and reStaurant area; 'greeting ~-.ail'or area manned by frierc'y hostesses. a music club and one`~-,rther area for exhibitions. -;-.e total experience is quality, inforrrality, theatre and leadingg e::ge opinion setting. The staff will be -,.,oung, extrovert individuals enjoy mixing with people and importantly. enjcy %vc-mg as part of a team. 7. Emotional Elements The emotional el=-.-ne-- of LSCB cannot be understated. concept wiil rely on ',.-e successful implementation and unders*,anding ol ~he e-notional aspect of the experience c; drinking, eating. and culture. encountered by the LSCB will be a pla-ce --- meet new people, to join friends, tz: start a relationship. to be 'he family, to celebrate or just relax and unwind. LSC6 is for any time. I lam to 2am, seven days a -.veek, for anything: morning =ff ee, brunch, lunch, a drink and a -snack, to meet friends ater -.-.,crk for a drink, early evening dinner, a late supper, or to lister. to good bands, enjoy live music, to dance or to view an exhibition. will be ever changing, new ideas innovative entertainment, extensive choice, new experienc-es. 8. Corporate Identity The '"SOB brand iccz -viil be the red ciro!e mark with worc:,-.g. 9. Location Requirements High Stree?. t,.:sy thoroughfare or edge of town. Close to offic-e-z. shopping centre and recognised fo::=-': points of entertainment. Town,'city with, aminimurn resident population of 50C.000. Hich traffic ar.%' pedestrian Now, of a consistent pat,~-77, throughout the-,.-.-eek. Nearby car pa,-wing. Po,-ujabon Residential. ycung 18-35 r7~aies and females Working. office. professic7~--., shop workers. illl~ -1Z BATCo document for Legal Services : Health Canada 21 October 1999 Educational, close proximity tc a University. 10. Site Requirements Totai iloor area of 110,000 sq. ft. Minimum around '11cor area of 4,000 sq. ft. Cus,,omer eating and drinking area 4.000 sq. ft. Custcmer music and dancing area 3,000 sq. ft. Customer cultural area 1,000 sq. ft. Cover capacity in ihe restaurant 140 dining seats. Music club capacir, 400 j -500 people. Lock up premises are acceptable. Late c!ub licence zc 2arn required, Hiahlv visible frontage, ideally incorporating a forecourL. Minimum frontage 50ft, return firontace an advantace. An ex;sting licence is not essential but desirable. Exis-ing reStaurar-,T -r supermarket premises or new retail units considered- Freehold or Lease~-old. 11. Product Detail The menu will have an authentic American feel, includinc Mexican and veaerarian dishes. Cock-,ails and drinks - an extensive rance of cocktails. premium bottled beers and wine list will be available. To encourage a party atmosphere, pitchers of cocktails or draucnt beer could be made available. Overai! sales mix. 5:-~ao liquor and 401"a food. The music club will operate every evening. either With a DJ or live bands or a combination of both 12. Quality Ouality at all times is the 'KeY to success for the unit. Service, food. liquor. music and exhibitions should have equal priority, when setting standards. It is important to the overall success of LSCB that standards are high, especially when considering the marketing imput. The 'PR" is only as clod as the product. BATCo, document for Legal Services : Health Canada 21 October 1999 13. Added Value When approaching the LSOB c--r-::ept from a 'selling' viewpoi n!.. a consideration is the added vai,-= of the experience; the fun element, an intangible, but highi-Y.ucrative if handled well. The very atmosphere created in the -ar, the restaurant, the music club, can give the concept an e,-::=- over competitors, especially if it is marketed advantageously. 0 0 BATCo document for Legal Services : Health Canada 21 October 1999 HOSPITALITY EUROPE Inevitatn-, ' ~- the recession, coupled with changi~.c demographic patterns, will open Lip opportunities for decision maker--. in this sector. Value for money. cuality operations. offering either a ccmplete entertainment's package or something new, will be very successful. Many American style franchise operations can now be enjoyec and the market is ready for mcre'.nnovation and style. Set price menu's are currently popular again as well as full choice wide ranging r-,enu's. The marketing of retaii hospizzality outlets will become increasingly important. Lower disposable inc= es plus a higher propor-Ocin, of "en famille" dining, have prioftsed informality and value for money. Lower spend, less expensive outlets will continue to inc,-ease their man