K-ALE

​
Company Summary

Ever want to go out for drinks and food with friends but don’t want to completely sacrifice your
diet and all the hard work you put in at the gym? K-Ale is here for you! K-Ale will be an upscale full-
service bar and restaurant located in the neighborhood of Little Italy. As the name suggests, K-Ale will
be a fun restaurant/bar that features a variety of libations and appetizers with a healthy twist. The food
menu of K-Ale will be limited featuring an assortment of healthy appetizers and plates to share, with the
main focus being on the specialty cocktails and drinks. For example, K-Ale will offer drinks such as the
Antioxidant Mojito, as well as G and Tea (a playful twist on the classic Gin and Tonic featuring matcha
for added health benefits). K-Ale will also feature appetizers and shared plates such as local seasonal
vegetables with assorted dips, buffalo cauliflower, and offering a healthier alternative to other classic
dishes. The purpose of K-Ale is to provide trendy cocktails and appetizers with a focus on offering
healthier and lighter options than your standard bar food and drinks. K-Ale seeks to offer a good
alternative to health-conscious individuals looking for a night out with friends, family, or coworkers
without compromising their goals.

Mission Statement

K-Ale is a charming bar/restaurant that strives to provide customers with a variety of healthy,
nutrient-dense appetizers and cocktails with a twist on health. Through the usage of fresh and natural
ingredients, our customers will leave the establishment with a satiated appetite and peaceful mind. Every
cocktail and shareable dish is handcrafted with fresh, local ingredients to provide bursts of flavor in
every sip or bite. K-Ale is motivated and driven to provide exceptional customer service where we cater
and satisfy every need, while also providing deliciously health-conscious cuisine. Our core values are
always finding new ways to collaborate with our community and work together to protect our
community and environment. We are committed to always putting you, our community, and the
environment first. Whether it is someone’s first visit or 10th visit at K-Ale, our customers will always
receive consistent and outstanding meals and service. Visit K-Ale for the cuisine, stay for the service.

Executive Summary (KRDN 4.1)

The core startup team of K-Ale will consist of five individuals with complementing skills and
experience who are unified in a single mission of giving our customers the best possible experience
while profiting and expanding the business. Greta Parker will be the general manager, Elise Borelli will
be in charge of customer service and human resources, Jayden Montejano will be our marketing and
media expert, Pedro Guzman will be our project overseer, and Carsen Chakarian will oversee recipe
development and accounting. Our business will utilize a traditional hierarchical structure of command
that is depicted in a flow-chart latter on in this proposal.
K-Ale will be a bar and restaurant offering health conscious cocktails and appetizers. Our
establishment will offer a unique experience for our guests by offering cocktails that can be paired with
diet friendly appetizers. At K-Ale we will strive to offer a lighter, but still delicious alternative to
standard bar food and drinks. Our business will be located in the trendy neighborhood of Little Italy in
San Diego. The bar and restaurant will be approximately 2,500 square feet and will feature a main bar,
as well as tables and couches for additional customer seating.

​Market size and trends are increasing slightly within the next couple of years and K-Ale is on
target with up and coming trends that will project the business into success and steady income. Our
tactics of utilizing trends such as sustainability, healthy foods, and community involvement will gain
attraction from our target market of Millennials, Gen Z, and the working class. Little Italy is a common
area for these groups and will provide enough traction to lift our business off the ground and continue to
give us higher profits throughout our business’ lifespan.
One of the short-term goals of K-Ale will be to increase market share by 5% and to increase
customer satisfaction by 10% in the first year of operation. Additionally, a long-term goal of K-Ale will
be to open a second location within five years, and in doing so expand our demographic and customer
base. These goals will be met through our innovative marketing strategy that is outlined in this
proposal.
In both our menu items and our philosophy, K-Ale will seek to promote both the health of our
customers as well as our environment through utilizing sustainable bar practices. One of the goals of our
establishment will be to improve the health of our customers by providing a sociable environment for
them to relax with friends. We will also strive to offer lower-fat and lower-calorie appetizer options than
traditional bars. K-Ale will also make a point of sourcing certain ingredients for our menu through local
farmers and suppliers. By doing so, our business will strive to support our local businesses and make our
establishment a greener friendly business by reducing our food miles. K-Ale will also utilize various
green friendly bar practices including low flow faucets and electric hand dryers in order to reduce our
environmental impact.
Overall, K-ale will be a sound investment that will capitalize on emerging food service industry
trends in order to appeal to our continually expanding target market. The future is becoming more
sustainable and ecologically friendly, and K-Ale is the embodiment of what food establishments should
be. Customers want local products, more community involvement, and they want to feel that their
dollars are making a difference. Customers want what we offer, and K-Ale offers human connection,
community support, and mind-blowing flavors through our dishes. We are more than a simple food
service establishment; we are a future partner to the Little Italy community in environmental
conservation.

Company Description (KRDN 4.4)

Team Organization

Our startup team at K-Ale is comprised of five determined, and hard-working individuals. Greta
Parker will be who our manager and assistant managers directly report to. She has extensive experience
with management, and with this has managed many employees, delegated and assigned them tasks, and
made sure her team accomplishes their personal and company goals. She will also be handling and
delegating the weekly inventory for K-Ale and facilitating the weekly food and beverage orders through
our suppliers (Southern Glazers, Ingardia, Reliant). Since Greta has experience with this, she is able to
build strong relationships with suppliers which will come in handy since our business will depend on
them being punctual and consistent. She also has great organization skills because of this and is able to
keep the payment information and invoices organized which is important for accounting and financials
for the whole restaurant.
Elise Borelli is our customer service and HR expert. She spent about 7 years working for a
highly successful Marriott in San Diego and served thousands of customers in a fast-paced high-stress
hotel environment. Due to this, she has a strong ability to anticipate customer needs and knows how to
keep them coming back. Elise will be in charge of training our servers, bartenders, hosts, and bussers as
they will be interacting firsthand with our customers and must display very high levels of customer
service. Another area of the business that she will oversee is Human Resources. She was part of the
hiring, firing, and employee appraisal processes at the Marriott and has demonstrated to us that she is
qualified and more than willing to take on this role at K-Ale.
Jayden Montejano will be our marketing and media liaison. She has worked at a very successful
marketing agency in the San Diego area and learned many valuable skills that the rest of the team
admires her for! One of her most impressive skills is that she is able to observe and find current trends in
the market, capitalize on them, and incorporate them into our business in a way that meets our
establishments goals. This is extremely valuable since we are located in a very “trend focused” location
in San Diego. Another one of her great traits is her ability to make connections and establish
relationships with fellow organizations in order to build rapport and be of use to each other. This is
important especially at our location since India street is such a tight-knit and close community that
respects and supports one another, which we will need when entering as a new business. Her final
greatest attribute is her social media marketing presence which will also be a difference maker for us
since we are a new business. We will need as much exposure and promoting as possible and Jayden will
be able to deliver that for us. Jayden will be working closely with Carsen in the sense of food and drink
trends as well as food and drink photography and promotion of the menu items on social media.
Pedro Guzman is going to be our “overhead” observing and overseeing all aspects of K-
Ale. Pedro has a strong leadership background with his three-year managerial experience overseeing a
large dental clinic comprised of 80 employees in the US Military. Due to this, he has experience
handling multiple aspects of a business and juggling many tasks and problems at once. He is the
backbone of K-Ale and can solve every and any problem that is thrown at him. He is extremely well-
liked by everyone he meets and remains calm in stressful situations. One of his specific duties will be to
contract with a security company to get two bouncers for K-Ale on Friday, Saturday, and Sunday nights.
He will be working closely with Elise in hiring and HR due to his overwhelmingly good people and
communication skills.
Finally, our fifth and final member of our team, Carsen Chakarian, is our food and beverage
expert and is in charge of all things cooking. Carsen worked as a recipe developer for many years under
a company in San Diego, and is now excited to be her own boss and create and develop her own
recipes. . She will be working closely with our cooks and bartenders making sure they follow the recipes
that she has made exactly as they are written. This will ensure proper procurement and reduce food
waste/use which will be extremely helpful for Greta when putting in our weekly food order. Carsen
specializes in making a normal dish “healthy” which is exactly what we’re all about here at K-Ale and
she has been instrumental in the creation and development of our menu. A real wizard with creations,
Carsen is capable of turning your average-joe dish into the star of the night; her knowledge of pairing
unique ingredients and creating flavorful dishes is unparalleled Without her knowledge and skills, we
would be completely lost in the kitchen and behind the bar. Carsen is also fortunate enough to have two
parents who are Certified Public Accountants who will be assisting her in the accounting and financials
of the restaurant.
At K-ale, we are looking to hire people who share the same passion that we all do for healthy
living, innovative thinking, and trendy fun. Employees must be able to be familiar with our menu and
mission statement, as well as convey and promote our goal of “a new way to dine and drink” to the
customers every day. Displaying an eagerness to learn is very important as well, and demonstrating
excellent customer service is a must. Overall, we want to hire employees who are flexible, willing to
help out in any way they can, and are planning on staying with us for a long time!
Organizational Structure

​
K-Ale will be adopting a traditional organizational structure with hierarchical system, with
power flowing vertically and upward. Employees will be departmentalized and specialized to their
position. The way we will implement this structure is demonstrated in the flowchart below. We will
have our owners at the top (us), then below us will be our selected manager. Below our manager will be
the assistant managers in which there will be two of. This was decided to cover the shifts on the days
that the manager was not scheduled for. We wanted to make sure that there was always someone around
who our employees could turn to with questions and they would always have the answer or at least have
a solution to the problem if the owners are not available. Next is our Head cooks and Head servers
which act as a leader and boss within the cooks and servers. There will be a PM on and an AM one for
each. The “Heads” are the experts in their department and are in charge of making sure all other
employees within it know the correct way to do their job. Underneath them at the final level is the rest
of the servers and cooks, as well as the bartenders, hosts, and bussers who will also be helping with
washing the dishes. The bouncers were not featured in the flowchart since they are contracted out
through a different company. Everyone should ideally report to the employee in the position right above
theirs on the flowchart.

Corporate Culture

Our corporate culture at K-Ale will be inviting, friendly, family-oriented, and fun! We want our
employees to feel right at home when they are working alongside us as we have all become so close
throughout this planning process. We plan to do frequent workplace events such as holiday parties,
group trainings, and possibly even crawl the streets of Downtown and Little Italy once we are off the
clock! When staff are comfortable with each other, the flow of the business is better and the efficiency
increases, because we are working together as a team and that is what we are trying to accomplish. We
want our employees to feel like they can be open and honest with us about anything going on in their
lives, especially if it requires them to need special accommodations. Last but not least we want our
employees to have fun while working because that makes them want to stay for the long haul which is
what we want as owners in order to have a low turnover rate.

For our customers, we want them to feel similar to our employees, and as if they are walking into
a room full of all of their closest friends. We will accomplish this by welcoming them as soon as they
walk through the door, conversing and asking about their day, and doing our best to recognize and
acknowledge our “regulars” when we develop them. We want our customers to feel comfortable and
feel like they are being noticed in an effort to keep them coming back, and maybe bring their own
friends or family to establish this close environment. Above all, we want our customers to enjoy
themselves and have fun as well, so if the employees can foster and fun and friendly work environment,
then it will reflect onto the customers.

Business Structure

​We decided that the best business structure for us would be a Limited Liability Company (LLC)
due to the fact that we have five owners. This way, we are all able to have equal ownership and be at the
same level as each other. It also protects our own personal money if anything undesirable should
happen. Only the money and assets that are specifically stated under the LLC description are what can
be touched if we experience any trouble. It also allows us to file our own separate taxes as “self-
employed” which we thought was best since there are five of us.

Organizational Chart of Staff

Products and Services

At K-Ale, we will be serving delicious American-style classics, with influences from other
cuisines such as Greek (Hummus and Pita), and Hispanic (Chips with Salsa and Guac), all with our
healthy K-Ale twist. Our menu will feature ten “Small Bites” which are appetizer-size dishes that are
able to serve as a meal for one or a shareable for two or more! We encourage our patrons to sip on an
alcoholic beverage while snacking on our food, and have eight craft cocktail options, as well as local
beers, kombuchas, and red and white wines.

All of our menu items have our signature K-Ale twist which gives them a slightly healthier edge
than its typical restaurant counterpart. For example, our “K-ALE and Artichoke Dip” is a play on the
classic Spinach Artichoke Dip, just with a couple upgrades. First, we opted for Kale instead of Spinach
to boost the nutrients and fit more with our restaurant theme. Second, the calories and fat-content have
been lowered by using reduced-fat cream cheese, as well as skim milk. Lastly, we swapped swiss
cheese for the more common mozzarella, but kept the parmesan so it still has that classic flavor, but with
a bit more depth.

​Another one of our concrete philosophies that we created when designing our menu and deciding
what to serve was that we wanted to use the most fresh, natural, and local ingredients possible. This was
decided in an effort to help keep transportation costs low as well as support our fellow small local
businesses in the greater San Diego area. For example, two of our alcohol distributors are local San
Diego businesses and one happens to be located on India street a couple blocks down from where K-Ale
would stand. This is Ballast Point Brewing (BPB), and we will carry four of their signature beers at our
restaurant. BPB does have a delivery service since their brewing headquarters is more inland than Little
Italy so it is an option for them to deliver to us, but we are also able to go pick up directly from them, it
will just depend on the demand, how busy we are, and who we have available. The other local
distributor is JuneShine Kombucha which likely operate in the same fashion as our relationship with
Ballast Point. All other spirits, wines, beers, and liquors will be purchased and delivered via “Southern
Glazer’s Wine and Spirits of California” from a local warehouse in Scripps Ranch, San Diego.

​As for our food, non-perishables such as canned goods, and commercial products such as bottled
sauces and ingredients, as well as spices, and meats will be delivered via a restaurant delivery service.
Fresh items such as produce, as well as some packaged items like pita bread, french bread, and some
cheeses, will be attempted to be first purchased at the local Little Italy farmer’s market on Saturday
mornings, and if we are unable to find something, then it will likely go on the regular delivery list.
Figure 1:

Menu Buffalo Bruschetta Brussel K-Ale and Chips with Hummus +

Item Cauliflower Sprouts + Artichoke Salsa and Pita Bread
Bacon Dip Guac
Menu $6.50 $9.00 $4.50 $9.00 $8.00 $6.00
Price
Cost per $1.93 $2.86 $1.40 $2.86 $2.49 $0.81
Serving
Source Farmer’s Farmer’s Farmer’s Farmer’s Farmer’s Farmer’s
market, market, market, market, market, market,
Ingardia, Ingardia, Ingardia, Ingardia, Ingardia, Ingardia,
Reliant Reliant Reliant Reliant Reliant Reliant
Gross $4.57 $6.14 $3.10 $6.14 $5.51 $5.19
Profit

Operating Plan

K-Ale will be located in the heart of Little Italy San Diego. It will preferably be anywhere on the
1600 - 1900 block on India street, with a sample address of 1917 India street, San Diego, CA, 92101.
Our facility will be approximately 2,500 square feet and will be able to seat 60 patrons but has the
capacity to hold 150 people including staff.
After speaking to multiple similar restaurants in the area, Kettner Exchange and Nolita Hall, we
concluded that the average cost of rent per square foot is about $4. Since our facility is 2,500 square
feet, it will cost approximately $10,000 a month. That will round out to about $120,000 dollars total in
rent for an entire calendar year.
According to SDG&E, it costs about $1.60 per square foot for gas and electric. That would put
us at about $4,000 a month and $48,000 a year, just for gas and electricity. The City of San Diego
Water, explains that the base water fee per month is based on the type of meter at the establishment. In
our case, we will need a two-inch meter which $78.72. We will then be billed an additional $6.208 per
HCF (748.05 gallons). In Flusberg’s article in PowerHouse Dynamics, a typical sit-down restaurant uses
anywhere from 3,000 to 7,000 gallons a day, with an average of 5,800 gallons per day. Using that
average, our monthly water bill would be about $1,474.35 per month, and approximately $17,692.18 a
year. The local phone/internet bundle will be $150 a month and $1,800 a year. Adding the gas, electric,
water, and phone/internet bundle, it will be approximately $5,624.35 total a month for utilities, and
$67,492.20 per year for utilities. The grand total of rent plus utilities will be about $15,624.35 a month,
and $187,492.20 a year. The table provided below elaborates on price breakdown of equipment, cost,
model type, energy requirements, and purchasing source.
Another expense to note is the holding of a liquor license. In California, the California
Department of Alcoholic Beverage Control states that a liquor license for a full-service bar at a
restaurant is about $100,000 to purchase and must be renewed every 12 months. The renewal fee can be
anywhere from the original price to a little less so depending on that, the liquor license could add about
$100,000 to our expenses per year.
Below is an outline of some of our larger and more expensive equipment that will be a user of
our utilities. It shows what the equipment/model is, how much it costs (to buy), the energy requirements
(in British Thermal Units), and where the equipment was purchased.

Figure 2:

Equipment Model Type Cost Energy Purchasing Source

 Requirements

Walk-In Cooler Kolpak QS7-088-CT 8' $7,659 5,000 BTU/h Webstaurantstore

x 8' x 7' 6"

Two Section Dual Beverage-Air $6,096.30 4,703 BTU/hr Webstaurantstore

Temp. Reach-In HBRF49-1-B 52"
Refrigerator/ Freezer Horizon Series
10 Burner Stove with Garland G60-10RR $5,594 406,000 Webstaurantstore
Two Standard Ovens BTU/hr
Kegerator/ Dispenser Avantco UDD-4-HC $2,249 1,705 BTU/hr Webstaurantstore
with 2 Tap Towers
Undercounter Ice Scotsman CU50GA- $1,630.34 1,965 BTU/hr Webstaurantstore
Maker 1A - Gravity Drain
with Cord 14.9 x 22 x
34.4”

Staff Chart and Notes

The last portion of the operating plan is the Staff hours chart which outlines the shift-times for all
employees. This is meant to serve as a guide, it’s possible that on slower days, some employees will get
sent home earlier than scheduled, and it’s possible that on some busier days, employees may be asked to
stay. It is expected that any staff member working 6 hours or less will not be taking an unpaid 30-
minute lunch break (although they could have the option if they would like). Instead they will receive
two paid 10-minute breaks. Any other employee working more than 6 hours is expected to take an
unpaid 30-minute lunch break as well as two paid 10-minute breaks. All hours per week are an estimate
and are subject to change if necessary.

Staff Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Manager 10am - 10am - 10am - 10am - 10am -
(40 hrs per week) 6pm 6pm 6pm 6pm 6pm
AM Assistant 11am- 11am-7pm 12pm - 12pm - 12pm -
Manager (40 hrs 7pm 8pm 8pm 8pm
per week)
PM Assistand 2pm- 2pm- 6pm- 6pm- 6pm-
Manager (40 hrs 10pm 10pm 2am 2am 2am
per week)
Head AM Server 9:30am - 9:30am - 9:30am - 9:30am - 9:30am -
(30 hrs per week) 5:30pm 5:30pm 5:30pm 5:30pm 5:30pm
AM Server 1 (30 10:30 am 10:30 am 10:30 am - 10:30 am 10:30 am
hrs per week) - 4:30pm - 4:30pm 4:30pm - 4:30pm - 4:30pm
AM Server 2 (30 10:45 am 10:45 am - 10:45 am 10:30am 10:30am
hrs per week) - 4:45pm 4:45pm - 4:45pm - 4pm - 4pm
AM Server 3 (30 10:45 am 10:45 am 11am - 11am - 11am -
hrs per week) - 4:45pm - 4:45pm 5pm 5pm 5pm
AM Server 10am - 10am -
Weekends (12 hrs 4pm 4pm
per week)
Mid-shift Server 2pm- 2pm- 8pm 2pm- 2pm- 2pm-
(30 hrs per week) 8pm 8pm 8pm 8pm
AM Bartender 1 10:30 am 10:30 am 10:30 am - 10:30 am 10:30 am
(30 hrs per week) - 4:30pm - 4:30pm 4:30pm - 4:30pm - 4:30pm
AM Bartender 2 10:45 am 10:45 am 10:45 am 10:30 am 10:30 am
(30 hrs per week) - 4:45pm - 4:45pm - 4:45pm - 4:30pm - 4:30pm
AM Bartender 3 10:45 am 10:45 am - 10:45 am 10:45 am 10:45 am
(30 hrs per week) - 4:45pm 4:45pm - 4:45pm - 4:45pm - 4:45pm
AM Bartender 10am - 10am -
Weekends (12 hrs 4pm 4pm
per week)
Mid-shift 2pm- 2pm- 2pm- 2pm-
bartender (24 hrs 8pm 8pm 8pm 8pm
per week)
Busser/dishwasher 11am - 11am - 11am - 11am - 11am -
(36 hrs per week) 5pm 5pm 7pm 7pm 7pm
Busser/dishwasher 11am - 11am - 11am - 7 11am - 11am -
(36 hrs per week) 5pm 5pm pm 7pm 7pm
Busser/dishwasher 4:30pm- 4:30pm- 6pm- 6pm- 6pm-
(36 hrs per week) 10:30 pm 10:30 pm 2:30am 2:30am 2:30am
Busser/dishwasher 4:30pm- 4:30pm 6pm- 6pm- 6pm-
(36 hrs per week) 10:30 pm -10:30 2:30am 2:30am 2:30am
pm
Head AM Cook 1 9:30am - 9:30am - 9:30am - 9:30am - 9:30am -
(40 hrs per week) 6pm 6pm 6pm 6pm 6pm
AM Cook 2 (40 9:30am - 9:30am - 9:30am - 9:30am - 9:30am -
hrs per week) 6pm 6pm 6pm 6pm 6pm
AM Cook 3 (32 9:30am - 9:30am - 9:30am - 9:30am -
hrs per week) 6pm 6pm 6pm 6pm
AM Cook 4 (32 9:30am - 9:30am - 9:30am - 9:30am -
hrs per week) 6pm 6pm 6pm 6pm
AM Cook 9:30am - 9:30am - 9:30am -
Weekends (24 hrs 6pm 6pm 6pm
per week)
Head PM Server 4:30pm- 4:30pm- 4:30pm- 4:30pm- 4:30pm-
(30 hrs per week) 10:30 pm 10:30 pm 10:30 pm 10:30 pm 10:30 pm
PM Server 1 (27.5 5pm- 5pm- 5pm- 5pm- 5pm-
hrs per week) 10:30pm 10:30pm 10:30pm 10:30pm 10:30pm
PM Server 2 (27.5 5pm- 5pm- 5pm- 5pm- 5pm-
hrs per week) 10:30pm 10:30pm 10:30pm 10:30pm 10:30pm
PM Server 3 (30 4:45 pm 4:45 pm 4:45 pm 4:45 pm 4:45 pm
hrs per week) - 11pm - 11pm - 11pm - 11pm - 11pm
PM Server 4pm- 4pm-
Weekends (12 hrs 10pm 10pm
per week)
PM Bartender 1 4:30pm- 4:30pm- 4:30pm- 4:30pm- 4pm-
(34 hrs per week) 10:30pm 10:30pm 10:30pm 10:30pm 12am
PM Bartender 2 5pm - 5pm - 6pm-2am 6pm-2am 6pm-2am
(36 hrs per week) 10:30 pm 10:30 pm
PM Bartender 3 5pm - 5pm - 6pm-2am 6pm-2am 6pm-2am
(36 hrs per week) 10:30 pm 10:30 pm
PM Bartender 9pm-3am 9pm-3am
Weekends (12 hrs
per week)
PM Bartender 9pm-3am 9pm-3am 9pm-3am 9pm-3am
Weekends (24 hrs
per week)
Head PM Cook 1 5:30pm - 5:30pm - 5:30pm - 5:30pm - 5:30pm -
(27.5 hrs per 11pm 11pm 11pm 11pm 11pm
week)
PM Cook 2 (27.5 5:30pm - 5:30pm - 5:30pm - 5:30pm - 5:30pm -
hrs per week) 11pm 11pm 11pm 11pm 11pm
PM Cook 3 (20 6pm- 6pm- 6pm-11pm 6pm-
hrs per week) 11pm 11pm 11pm
PM Cook 4 (20 6pm- 6pm- 6pm-11pm 6pm-
hrs per week) 11pm 11pm 11pm
PM Cook 5:45- 5:45- 5:45-
Weekends (15.75 11pm 11pm 11pm
hrs per week)
 AM Host (24 hrs 10:45am- 10:45am- 10:45am- 10:45am-
per week) 4:45pm 4:45pm 4:45pm 4:45pm
AM Host 10:45am- 10:45am- 10:45am-
Weekends (18 hrs 4:45pm 4:45pm 4:45pm
per week)
PM Host (24 hrs 4:30pm- 4:30pm- 4:30pm- 4:30pm-
per week) 10:30pm 10:30pm 10:30pm 10:30pm
PM Host 4:30pm- 4:30pm- 4:30pm-
Weekends (18 hrs 10:30pm 10:30pm 10:30pm
per week)

Health Repercussions & Analysis

K-Ale will seek to improve the health and mental well-being of our target market through our
presence in a variety of ways. One impact we seek to have on our target market is to improve their
mental health by providing a relaxing environment for our customers to meet up with friends as well as
make new ones. Lack of social relationships and isolation has been linked to depression as well as
elevated stress levels (1). At K-Ale we will strive to promote a friendly and stress-free environment in
which our patrons will be able to relax and enjoy time with family or friends.
Research on the connection between social relationships and longevity has shown that
friendships play a key role in health, and can have effects on not only mental but physiological health as
well (2). In particular, a 20-year study performed on the subject showed that social relationships can
have positive impacts on many markers of physical health such as BMI, C-reactive protein, blood
pressure, and waist circumference. The study also showed that a lack of social relationships has been
linked to increased risks for hypertension and inflammation (2). By providing a fun and inviting
atmosphere for customers to meet up with friends, K-Ale will seek to positively impact the health of our
customers through the promotion of social connections and the subsequent health benefits that
accompany them.
K-Ale will also help encourage our customers to form relationships and establish friendships
through promotional specials and events we will offer. For example, our “work buddies” happy hour will
provide two for one promotional pricing on select drinks for bringing a coworker in. Due to the close
proximity of our business to Downtown San Diego specials like this will not only draw customers in, but
also promote the wellbeing and happiness of our customers through the formation of new friendships. K-
Ale will also host various community events and holiday parties throughout the year to further promote
the wellbeing of our patrons through socialization.
K-ale will also strive to offer healthier food and drink options than your traditional bar and
restaurant. Restaurant and bar food in particular are notorious for being rich, high in caloric content as
well as generous in portion size. A particular study analyzing the health risks of eating out showed the
consequences that large portion sizes can have on the environment as well as health. The study showed
that excessively large portion sizes are not only detrimental to health (causing customers to consume
more than necessary) but also result in waste and unnecessarily increase greenhouse emissions (3).
In order to combat this trend in restaurants K-Ale’s menu will feature a variety of lighter fare
appetizers as well as small plates to share. K-Ale will strive to offer lower calorie, and lower fat
alternatives to traditional bar appetizers. For example, K-Ale’s menu will feature items such as buffalo
cauliflower, offering customers a lower calorie option than traditional buffalo wings. With the frequency
of the population eating out continuing to grow, it is important for restaurants to make considerations for
their customers’ health and wellbeing when planning their menu (4). At K-Ale we will prioritize the
health and well-being of our customers by offering health conscious small plates of food and appetizers.
In general, bars and restaurants are known to have a large environmental footprint. In order to
help reduce our environmental impact K-Ale will seek to implement sustainable bar and restaurant
practices in order to make our establishment a greener friendly business and lessen our carbon footprint
(5). One practice that we will utilize to help reduce our environmental impact is minimizing our food
miles by sourcing some of our products from local farms and suppliers. Specifically, a few menu items
that will be sourced from San Diego farms/suppliers will include our Seasonal Crudite and Juneshine
Hard Kombucha. By sourcing certain items from local suppliers, we will help reduce the transportation
and fuel resources that are needed to bring food and beverages to our restaurant thus reducing our
carbon footprint.
K-Ale will also seek to reduce plastic and garbage waste by adopting practices aimed at
decreasing our consumption of such products. One practice we will implement is offering cocktail
napkins as well as paper straws with our drinks only upon request in order to cut back on their general
usage in the bar. Our establishment will also utilize electric hand dryers as opposed to paper towels in
our public bathrooms. This will eliminate the usage of paper towels in our restrooms, which will in turn
reduce costs as well as paper waste. Furthermore, our business will be mindful of recycling plastics and
glass in an effort to make our establishment a more sustainable business.
K-Ale will also utilize various technological advances in order to help reduce our impact on the
environment. One area that bars are known for causing excess waste in particular is water usage (6). In
order to help reduce our water usage K-Ale will install low flow sink faucets in our bar as well as our
bathrooms. This will not only help minimize water loss, but also help reduce utility costs associated with
water usage. Additionally, in our kitchens K-Ale will strive to exclusively utilize energy star certified
equipment in order to cut back on our overall energy consumption. Although we cannot completely
negate the effect on the environment that our establishment will have, K-Ale will actively attempt to
make environmentally conscious decisions in our facility planning and consumption of disposable
products.

The Market

Market Size and Trends

The bar industry is at a steady incline and is projected to increase slightly within the next couple
of years due to economic growth and income increases (7). People are earning more every year and are
using extra income to go out to a bar or restaurant. Not only are people wanting to spend more as they
earn more but trends are leaning in the direction of foods that can improve health, are inclusive of fad
diets, gluten sensitivity, vegetarian/vegan diets, and/or using local products for dishes and cocktails (8).
Competing businesses are not only in the Little Italy location but around different areas of San Diego;
restaurants such as True Foods, Herb and Wood, and Nolita Hill are our biggest competitors as they
provide similar atmospheres and trendy foods. Organizations such as the previously listed have been
established in San Diego and garnered a loyal customer base which will be a challenge to overcome as a
newly established business.

Target Market
Millennials, Gen Z, and the working class (which also encompasses Millennials) are K-Ale’s
target market in order to establish success within our business. K-Ale is established in Little Italy, which
is not only a hotspot for travelers looking for gems to find, or for locals to find the next “hotspot” but
also to provide a regular lunch meal for the working class that need a quick and healthy lunch break.
While most working-class people are not able to leave Little Italy due to traffic, time constraints, and/or
parking limitations, the idea is to provide light meals and drinks so customers can fuel their bodies with
nutrient-filled foods, and make it back to work in a timely manner. Not only does K-Ale benefit from
being the average worker’s lunch spot, but our happy hour menu provides deals for our tasty cocktails
that are lighter in calories. Happy hour is conveniently placed during the hours when workers are
finishing up their work day around 4-6PM. Dropping prices conveniently while customers are finishing
work will encourage them to visit our establishment before they head home. Aside from the working
class, K-Ale will gather business from the two younger generations. Currently, Millennials make up a
majority of the working class as well, but not entirely. By garnering business from Millennials and the
following generation, Gen Z, we can enhance our success and income. Specific marketing strategies will
be made towards these groups as they tend to have a more health-conscious approach to eating out as
well as spending their money on products that they feel make a difference in outside organizations (9) or
use recyclable materials that are not harmful to the environment (10). Examples showing which
generations are willing to pay more for sustainability and also the generations that are influenced to buy
food because of a restaurant’s sustainability are provided below.

Figure 1:
 Figure 2:

Competitive Analysis

Name Trend/niche Locatio Hours Products Price How they Areas to

n excel improve
True Relaxed, Fashion M-Thur- Alcohol, salads, Bowls;15$ Relaxed and Mitigate kids
foods health valley 11am-9pm bowls, burgers Sandwiche welcoming menus since
kitchen conscious Fri-11am- and sandwiches, s 13-17$ ambiance, alcohol is
fare. 10pm seasonally fresh reasonable being served.
Sat-10am- dishes prices, healthy More of an
10pm alternatives, adult
Sun 10am- fresh establishment
 9pm ingredients. .

Herb and Family/kid 2210 M-Thr-4:30- Refreshing Cocktails Provide a More

wood friendly kettner 10pm cocktails, 14-18$ comfortable reasonable
atmosphere blvd, F-Sat-4:30- vegetable plates, Vegetable seating style, prices. More
little 11pm seafood, coffee, plates 13- earthy tones consistent
Italy Sun 10am- small plates 17$ to draw in hours of
2pm;5pm- Small customers, operation
9pm. plates 12- informal
20$ lounge area.

Nolita Upscale 2305 M-Tu 4- Elegant Sandwiche Ambiance is Open earlier

hall bar/restaurant India st, 11pm, cocktails, crisps s 12-14$ phenomenal, during the
, earthy tones, little Wed/Thur/Su
salad, wood Salads 14- using high week.
elegant style italy n 11am- fired pizzas, 16$ quality and Hire more
11pm Fri-Sat
high Pizza 12- local staff to
11am- quality/uncomm 18$ ingredients decrease
midnighton ingredient cocktails wait time
sandwiches 11-15$
Craft & Upscale, 675 W. M-Th-4pm- Wood fired Woodfired Outdoor/indo Provide
commerce taxidermy Beech 12am vegetables/meats food 10- or seating, comfortable
theme. st. Fri-3pm-1am , beer &wine 16$ offer low seating,
Sat 10am- Beer 7$ calorie possibly not
1am, Sun appetizers, have
10am-12am diverse menu. taxidermy
Small share because it
plates. can be
uncomfortabl
e for people.

SWOT Analysis
Herb and Wood
Strength Weakness Opportunity Threat

• Elegant ambiance • Pricey • High exposure • Competitors

• Healthy alternatives • Traffic due to • Loyal customers offering lower
• Happy hour location • Single location/tourist prices
• Lounging area • Opening late attraction • Competitors nearby
• Refreshing during the that open early
weekday during the week
cocktails
• Dessert menu • Competitors that
offer a variety of
a menu

Craft and Commerce

Strengths Weakness Opportunity Threat

• Ambiance • Taxidermy on the • Single location/tourist • Competitor prices

• Great cocktails walls attraction • Customers growing
• Fast service • Awkward hours • Appeal to trends weary of their
• Delivery service • Pricey establishment

Marketing Strategy
Our marketing strategies include using trends to our advantage. As previously stated, trends are
shifting towards locally sourced products, being a sustainable business, and also pairing up with local
organizations that benefit the community; we plan on approaching each of these areas in different ways
to market our business. K-Ale prides itself on using locally sourced products and emphasizing the “farm
to table” presence. To showcase our locally sourced products, utilizing social media (i.e Instagram) will
be a key factor. Once a month we will share a “farm to table” story that features a local supplier we
receive produce from. The story will discuss how they grow the vibrant and healthy vegetables that
appear on the customer’s plates and the effort and care that goes into each product. Instagram is a
powerful influencer and many people today look up restaurants to view ideas of what they will be eating
if they were to dine at their establishment. People “eat with their eyes” and it is only natural that we
continue to flood our Instagram page with different posts about our dishes, cocktails, and local suppliers.
Instagram will also play a vital role in a marketing tactic that more and more restaurants are utilizing
collaborating with Instagram “Foodies”. The plan is to collaborate with local or Instagram-known
foodies that will trade a free meal or gift card in exchange for a review of our restaurant and food on
their platform. Exposure on an influential Instagram page will also help grow our business as people
want to go where people they trust visit.
Since being sustainable is a priority for us, we plan to pair up with the local organization,
Feeding San Diego, to build community trust and presence. By providing Feeding San Diego with any
produce that we did not use we are reducing our waste and also providing food for the community. Once
a month K-Ale will donate 10% of income earned that day to Feeding San Diego and also provide a free
drink voucher to those who volunteer at the organization. By partnering up with Feeding San Diego, K-
Ale can help combat food waste in the community as 40% of food goes directly to waste (11). People
enjoy eating at a restaurant they feel make a difference in their community as mentioned previously.

​K-Ale is designed to be not only sustainable but efficient as well in our service. This means
finding new ways to make our services fast to help customers get in and served quickly as well as
leaving quickly. We understand that not every customer is here to take time in eating, but rather is here
to have a quick lunch break or cocktail and head back to work. How K-Ale can make this happen is
utilizing technology, like iPads, to close checks out quickly. Waiters/waitresses spend a good portion of
time closing checks out for customers as they have to ask if the customer is ready to pay, leave the table
and visit their kiosk to print a receipt, revisit the table with receipt and grab their form of payment, leave
the table again and enter the payment at their kiosk, followed by returning to the table to complete the
transaction. By providing iPads with a kiosk app on it, our staff will be able to perform all of these tasks
in one motion by taking their payment at the table, eliminating unnecessary time traveling back and
forth between the table and the traditional kiosk. This process enhances activity and efficiency while
also providing fast and exceptional customer service. Because our staff will be quicker and more
efficient, customer satisfaction will increase. With customers having increased satisfaction, they will
also market for us by word of mouth which is one of the most influential marketing strategies there are.

Goals, Risks & Strategies

Short-term Goals

This year K-Ale strives to increase market share by 5% as well as increase customer satisfaction
by 10%. One-way K-Ale will achieve this goal is by purposefully marketing to our desired demographic
via social media and by building a strong community of raving fans. In an attempt to mitigate potential
barriers in our marketing campaigns, the K-Ale management staff will meet monthly in order to
strategize new marketing tactics, keep up with the latest trends, holidays and competitor marketing.
Another way K-Ale expects to achieve its 5% and 10% customer satisfaction increases by the
end of the year is by properly training staff to anticipate customer needs and increase customer
satisfaction. K-Ale understands that in order to generate customer satisfaction we must ensure employee
satisfaction thus, K-Ale management is responsible for performing bi-monthly employee satisfaction
surveys, ensuring all employees receive their 10min and 30min breaks as well as ensuring proper
staffing to safeguard an enjoyable workplace for all employees. On top of the day to day employee
satisfaction K-Ale will also have bi-yearly employee outings which will focus on team building and
positive relationships among staff.

Long-term Goals

​ K-Ale strives to be a food & beverage industry leader in San Diego with longer-term goals of
expanding into 1 new demographic and increase overall net profit by 10% within the next 5 years. In
order to achieve these goals, K-Ale will be proactive in ensuring short-term goals are met as well as
striving for the 10% increase in overall net profit. The increase in profit will allow K-Ale to save some
of the necessary capital need to open doors in a location.
​In order to assist in the 10% overall net income, K-Ale will strive to improve procurement
costing by performing make or buy analysis’s quarterly to ensure purchasing and inventory match
customer needs. When performing this analysis K-Ale will also evaluate supplier costing vs buying
local, determine the effects of pilferage, reevaluate menu costing as well as menu engineering and
strategize ways to improve labor costs. With these quarterly analysis K-Ale is confident that our long-
term goals will be attainable.

Financial Assumptions (KDRN 4.2)

Estimated Budget

Start Up Costs

Heavy Kitchen/Dining Equipment $24,511.20

Rent For /per year $120,000

Liquor License $100,000

Utilities /per year $67,492.20

Employee Salary Totals - Includes Salaried Manager & Hourly Staff $638,380

Food/Beverage Cost /per year $1,074,496.28

Supplies (non-food) $12,000

10% For Unexpected Costs $203,688

Total for Startup and 1 year of Operation $2,240,567

A summary of the startup costs for K-Ale to open (including the costs for one year of operation)
is depicted in the chart above. The total equipment needed in the kitchen and bar was totaled and the
sum came out to $24,511.20. Rent per year was based on the average for similar establishments in the
area and came out to $4 per square foot for a 2500sq/ft facility totaling $120,000 a year. The liquor
license expense needed for operation was approximated at $100,000 and will be renewed yearly for a
variable fee. The approximated utilities for one year (including electricity/gas, water, trash, and
internet/phone bundle) came out to $67,492.20. Employee salaries including a salaried manager at $50k
a year, two assistant managers at $16/hr, as well as hourly staff at minimum wage plus tips came out to a
total of $638,380. Employee salary cost totals were approximated based on the restaurant being open for
52 weeks a year. Total employees staffed each day could vary based on customer volume, weekends,
holidays, and slow days. Food and beverage costs for one year of operation were totaled at
$1,074,496.28 (based on 60% of sales coming from alcohol and 40% of sales coming from food).
Additionally, a budget of $12,000 a year was allotted for non-food supplies.
Some of the expenses listed on this chart are variable depending on how busy the establishment
will be. However, a rise in variable expenses such as food/beverages will also include a rise in the
overall profits of K-Ale. After all expenses were totaled a 10% buffer of $203,688 was added to account
for any unexpected expenses that may occur in the startup and operation of this establishment. The total
investment required for the establishment of K-Ale and one year of operation will be $2,240,567.
Due to the high dollar amount needed for startup and one year of operation, we will be seeking to
secure a Small Business Association 504 Loan for 1 million dollars. We have decided on a 504 Small
Business Loan due to their fixed interest rate as well as the high capital limit. This fixed loan rate will
allow K-Ale an opportunity to better forecast monthly and yearly budgeting needs. Additionally, we are
hoping to finalize another 1million dollar of needed capital from a sole investor or investment group
with restaurant experience and a 5% stake in K-Ale. We hope this investor partnership will allow K-Ale
to grow as a company and achieve our 5-year goal of expanding our reach to a new city and
demographic. Lastly, each of the five founders of K-Ale will contribute a personal investment of
$50,000 to the startup of the business, for a total additional $250,000 in start-up capital. We hope our
own personal investment will help cover any additional expenses as well as contribute to an equal stake
in the success of our company.

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