1. A one-of-a-kind karaoke bar located on the Main Line
Maggie Dobesh, Steph Cheung,
Blake Bellucci, Christine Lafferty
Hi everyone. I’m Christine, and this is Maggie, Steph, and Blake. We would like to introduce to you the idea of Stand Up!, a one-of-a-kind karaoke bar on the Main Line.

2. Mission Statement & Strategy
“We seek to bring a unique karaoke experience to the Main Line to be enjoyed by those of all ages. We strive to ensure that our guests receive extraordinary and timely service in clean, comfortable premises. Accordingly, our goal is to ensure that all guests and staff are treated with the respect and dignity they deserve. By maintaining these objectives, we will be assured of a fair profit that will allow us to contribute to the community we serve.”
Fun and unique karaoke bar
Flexible premises
Large variety of food and drink offerings
Stand Up! is a karaoke bar to be enjoyed by families and students alike. It will have a large, open main seating area complete with bar and large karaoke stages. Additionally, it will have smaller rooms upstairs to be utilized by private parties. Our specialty will be drinks, but we will provide food by outsourcing from local restaurants through Seamless.com.
The mission statement of Stand Up! is (Read mission statement)

3. Market Analysis
Main Line
Montgomery County
Bryn Mawr

4. Target Market

5. Demographics Population Age Bryn Mawr Median Income
2010 Bryn Mawr Population %
Montgomery County Median Income
2010 Montgomery County Population %
< 25
$8,333 (Very Low)
53.10%
$32,960 (Near Average)
30.70%
$41,932 (Low)
22.50%
$83,947 (Very High)
$70,223 (High)
15.80%
$94,092 (Very High)
> 64
$54,250 (Very High)
10.70%
$43,088 (Very High)
Total
$ ,799.00
$ ,874.00

6. Environmental Scanning
Competitor: Main Line Karaoke
The only “destination” karaoke bar
Opportunities on the Main Line
Z z z. . .
Karaoke is an underserved segment on the Main Line. We have identified Stand Up!’’s only competition to be Main Line Karaoke. However, Main Line Karaoke describes itself as a “full-service DJ,” so the fact that it is not a “destination” where customers can spend time leaves us as the only karaoke bar around.
We will also be competing against other local bars, such as Kelly’s and The Grog.

7. Core Competencies & Core Processes
Facilities
Systems & technology
Core Competencies
Supplier relationship
Order fulfillment
Customer relationship
Core Processes
Our core competencies and processes are important components of our business.
Core competencies include facilities, which, as I said, are flexible to accommodate walk-ins and parties of varying sizes.
Systems & technology refers to our ordering system, which is in the form of iPad-like tablet computers. There will be one located at each booth and in each private party room to facilitate ordering drinks from our bar, placing food orders through Seamless.com, choosing karaoke songs, and entering the karaoke queue.
Core processes include supplier relationship, which we plan on establishing early with both our drink suppliers (Costco) and our food suppliers through Seamless.com (local food establishments)
Order fulfillment is our ability to fill orders quickly through our Point of Sales tablet system.
Our business involves a high-level of customer interaction, so we plan to train our employees to be as friendly, helpful, and flexible as possible.

8. SWOT Analysis Strengths Weaknesses Threats Opportunities
Plenty of Universities
New Innovative Idea
Draw for all ages
Weaknesses
New unknown company
Maybe people don’t like karaoke
Threats
Mainline Karaoke
Other more established bars promotions taking our customer base
Opportunities
Creating weekly events catered to various demographics
Being a draw for regulars and special events

9. Non-alcoholic beverages
Product Offerings
Mixed drinks
Non-alcoholic beverages
Beer
Wine
At Stand Uwill have a full-service bar with a wide selection of beer, wine, mixed drinks, and non-alcoholic beverages. With the purchase of a drink, we will offer complimentary popcorn and peanuts.
With regards to services, Stand Up! will provide all aspects of a karaoke experience that is unique to the Main Line. We plan to have contracts with multiple restaurants in the surrounding area through Seamless.com and offer customers the ability to order from these locations and have their meals delivered right to their booths.

10. With complimentary….
Peanuts!
Popcorn!

11. Service Offerings
A karaoke experience that is unique to the Main Line!
Contracts with various restaurants through Seamless.com

12. Layout of Main Floor
At Stand Up!, there will be multiple private rooms on the upper level that will be open by way of reservation to parties of all sizes. Each party room will feature seating for party guests, a stage, costume boxes, and tablets which, will facilitate the ordering process and control of the karaoke music.
On the lower level, there will be two large stages that can be utilized for group karaoke performances or duets. Each stage at Stand Up! comes equipped with state-of-the-art projection screens for lyrics, as well as the highest quality speakers and microphones. On the lower level, there will be a full-service bar surrounded by booths for customers to sit with family and friends. Each booth includes a tablet which will allow the customers to do a number of things: pick songs, view the queue of performers, and place food orders through the menus listed on Seamless.com and drink orders. The drink orders will be sent directly to the bartenders, who will make the drinks and hand them off to the servers, who will in turn deliver the drinks directly to the customers.

13. Operations Strategy Structure of Process Customer Involvement
Resource Flexibility
Capital Intensity
Structure of Process
The process at our establishment is structured as a front-office process. Stand Up! will be considered a process with high customer contact in which the service provider interacts directly with the customer. Our bartenders, servers, and MCs will be present to assist with and facilitate the karaoke experience in addition to helping with the process of ordering food and drinks.
Customer Involvement
Our process is designed to support customer input and customization. The customers have the ability to choose when they want to order drinks, participate in karaoke, and place meal orders. There are countless drink and song options to enjoy in addition to a wide variety of food options. Thus, our patrons have the freedom of designing their own karaoke experience.
Resource Flexibility
The workforce contains both highly-trained bartenders and a flexible workforce. The servers, hostesses, and MCs all have the ability to perform functions to expedite and better the karaoke experience. On any given night, hostesses can aid with and help explain the use of the tablet. Servers are responsible for assisting with food and drink orders, and MCs can help with any karaoke-related issues. On particularly busy nights, this flexibility will prevent any obstacles from interfering with our patrons’ ability to enjoy their karaoke experience.  
Capital Intensity
While there will be a capital outlay for the specialty and fixed equipment, the overall capital intensity ratio will remain reasonably on the lower end, with our focus being on skilled labor. Our bartenders, MCs, hostesses, and servers, who help and take care of our customers, are the ones who really add value to the experience. The process will not be automated; instead, it will be adapted to the wants and needs of each individual customer. This flexibility will allow for greater individual attention to each patron, which we believe will offer, in turn, a unique and high-quality experience.

14. Supply Chain Model Responsive & Flexible Supply Chain - Drinks
Customize drinks
Utilize top-notch ingredients
Keep drink menu fresh
Quality of Suppliers
Fresh Fruit
Service Oriented - Karaoke
DJ sound system
Projection screen with lyrics
Microphones
Song selection software

15. Quality Strategy: TQM
Aligning with characteristics of outputs and customer expectations
Dependency on
Personnel
Karaoke Equipment
We formulated our quality strategy by satisfying the characteristics of our output needs and customers’ expectations. We identified the following as the most important customer expectations: customer service, customizable experience, reliable tech
We identified TQM as our main quality strategy. Customer satisfaction is at the core of this stretegy which is important for us because we are selling an experience.
Personnel and karaoke technology is the backbone of our success, so the ability to have continuous improvement impacting our employees directly will ensure that we have sustainable success.

16. Quality Control
Quality of Inputs
Inspection and testing of each tablet/software purchase
Prescreen vendors
Quality of Products
Technologically trained staff
Statistical process control: performance measurement
Quality of Inputs
The core product that Stand Up! will provide is a customizable karaoke experience. Thus, we plan to ensure an appropriate quality level by incorporating two main strategies involving acceptance sampling to ensure that all of our suppliers have reputations for excellence.
The inspection and testing of each tablet and software purchased will minimize our risk of delaying the offering of our services. Our acceptable quality will be a zero percent tolerance for any defects in our technological products since that is our core product .
Lastly, since we will be offering food through other nearby vendors, we will conduct thorough research on the reviews of each restaurant, placing an emphasis on delivery time and quality of food.
Quality of Products
From a prevention perspective, we can ensure an appropriate quality level in our products by make sure our software has a supportive staff available to intervene in case of problems. Thus, our staff trainings will be dedicated to software training with hands on scenario experiments.
In conjunction with our use of Total Quality Management, we will use statistical process control to ensure that our current process is adequately fulfilling our customers’ wants and needs. In the initial 2 months of business, we will offer a promotion to take a $1 off feedback. Our employees will be part of this performance measurement by keeping a running database of extra requests, turnover time, and frequent questions asked from clients.

17. Forecasting Customer Demand
Lack of historical data → Judgement forecast
Since we lack sufficient historical data about this industry, we have utilized our judgment forecasting.
Taking the total number of seats available, we forecasted that a range of 35%-60% number of utilized

18. Forecasting Product Demand
First floor (main bar area):
80 people maximum
Second floor (4 private party rooms):
2 rooms for 5-20 people
2 rooms for people
Given that our business model calls for a 1 drink minimum per seat, we can estimate the number of drinks based on our projected of customers we will serve.

19. Future Forecasting Techniques
Historical data
Four methods: 3-week moving average, 3-week weighted average, exponential smoothing, and trend projection with regression
Moving forward, key focus on trend projection
. When concrete demand data is gathered, demand moving forward can be based on historical data.
Once our business is running, we will estimate demand of customers and amount of products sold by using four methods, 3-week moving average, 3-week weighted average, exponential smoothing, and trend projection with regression, and choose the one with the least error.
. We have particular interests in both exponential smoothing and trend projection with regression. Exponential smoothing calculates the average of a time series by giving recent demands more weight than earlier demands. This is invaluable information to us, as our business should see a sharp demand slope in the beginning few months. After that, trend projection will be more relevant because it measures a systematic increase or decrease in the average of the series over time.

20. Management of Potential Queues
Private room reservations
Open main bar area
One drink minimum
Food delivery
First-in-first-out discipline
We realize that queues are inevitable in any establishment, so we plan to do our best to manage them.
We will offer our private rooms through reservations only. Therefore, there will be no wait for these rooms.
Our main bar area will be a large open area in which customers can sit in booths, or, if there are no booths available, stand throughout the bar area.
We plan to have more waitstaff on hand during weekends.
Instead of a cover charge, we will have a one-drink minimum. This will prevent people from coming in and just standing around without contributing to our profits.
Our food delivery will be handled through our outside vendors, who will each have their own queue management systems in place. We will have staff in charge of handling food orders in order to prevent hold-ups.
Our bar orders will be handled in the order in which they are placed. We will have bartenders serving specifically those standing at the bar and others to handle orders coming through the tablet computers.

21. Costs & Expenses: Start-Up
Expenditure
Cost
Construction & customization
$100,000
Equipment and furniture
$450,000
Point of Sale system
$15,000
Initial advertising
$44,000
License
$8,103
Operating inventory & supplies
$25,000
First month’s rent & security deposit
$10,120
Total
$452,223
- We plan to incur the following start-up costs, including construction, equipment, advertising, rent, and supplies, to total just over $450,000.

22. Costs & Expenses: Annual Fixed
Expenditure
Cost
Managers’ salaries
$80,000
Utilities
$10,029
Property tax
$3,000
Insurance
$7,000
License
$222
Legal & accounting
$11,000
Annual rent
$60,720
BMI & ASCAP Music Licenses
$2,000
Total
$171,971
- We anticipate a variety of annual fixed costs, including managers’ salaries, taxes, and music licenses, to total just under $175,000.

23. Costs & Expenses: Variable
Expenditure
Percent of Sales
Annual variable cost
30%
Cost of goods sold (drinks)
50%
Credit card charges 2%
- We anticipate some costs and expenses to vary directly with sales. These costs include annual variable costs, costs of goods sold (represented by number of drinks sold), and credit card charges.

24. Costs & Expenses: Additional
Depreciation
Maintenance & replacement costs
Interest
Waste
- Other costs that we expect to incur include depreciation, maintenance and replacement, interest on the loan that we will take out initially, and waste.

25. Thank You
- Other costs that we expect to incur include depreciation, maintenance and replacement, interest on the loan that we will take out initially, and waste.