College Station Sports Bar and Grill

1. College Station Sports Bar and Grill By: David Bufton, Kelly Millar, Matt Judd, and Quadriyyah Jimmerson

2. Executive Summary • College Station Sports Bar and Grill will establish a successful presence in the food and beverage service industry. The location in suburban Alpharetta, GA will gross in excess of $1 million in sales in its first year of operation, ending 2006. First year operations will produce a net profit of $309,538. This will be generated from an investment of $495,000 in initial capital. • Expansion plans are already underway. Owner funding and internally generated cash flow will enable additional stores to open. The sales figures and projections presented here are based upon an additional four store locations at the most premium sites available in suburban market areas. • This plan will result in sales revenues growing to $3.4 million by 2008 and generating net income in excess of $800,000. • Management has recognized the rapid growth potential made possible by the quick success and fast return-on-investment from the first location. Payback of total invested capital on the first location will be realized.

3. Objectives • Keep food costs under 32% of revenue • Keep beverage costs under 21 % of revenue • Exceed $1,000,000 in sales during the first year of operation and $2,000,000 in sales per store each year following our initial period. • Open two locations within three years, the second of which will open at the end of year two. • Be the first choice for college alumni meetings, events, and other special functions

4. Mission • College Station Sports Bar and Grill strives to be the best entertaining sports bar in all areas by providing food, drinks, and fun for all sports fanatics. We will provide plenty of high definition televisions to show all the games playing on any given day. We aim to keep all customers satisfied with clear surround sound speakers and a channel menu at each table so that the customers only hear the game they are interested in. We will serve the best tasting menu items at the most affordable price, and daily drink specials. College Station will be a great leisure experience for both family and singles to enjoy. We will provide an ambiance of games; including sports trivia and competitions which will allow us to give back to our customers in a fun, competitive way. College Station will be the first choice for college alumni meetings, events, and other special functions. We will strive to be the employer of choice by taking an active interest in the careers of our employees. We will be active members of the communities we serve and strive to make a difference through community service.

5. Competition • There are a total of three main competitors located in the Alpharetta & Roswell area. They are: • Mazzy’s Sports Bar & Grill, located at 10729 Alpharetta Hwy, Roswell, GA 30076 • Jeffrey’s Sports Bar & Grill, located at 11585 Jones Bridge Rd, Alpharetta, GA 30022 • Startime Sports Bar, located at 608 Holcomb Bridge Rd, Roswell, GA 30076

6. Flagship Location • The flagship location resides at 1570 Holcomb Bridge Road in the Holcomb Woods Village shopping center. The 6,950 square foot location will be leased for five years.

7. Company Summary • Key Elements • College based themes • Distinctive design features • High profile locations • Major sporting events • Retail Merchandising • Quality food & alcoholic beverages • Quality service

8. Company Information • Company History • College Station Sports Bar & Grill was founded in 2005 • Company Locations & Facilities • Company units size = 6000 to 9000 sq ft • Units seat 225 to 400 persons • Unit Locations: Alpharetta, GA & Chattanooga, TN

9. Market Segmentation Source:The US Census Bureau - 2000 Census, Atlanta Regional Commission, and the City of Alpharetta Department of Community Development.

10. Strategy & Implementation Summary • Our strategy is based on serving our niche markets well. The sports enthusiast, the local night crowd, as well as families dining out can all enjoy the College Station Sports Bar & Grill experience.

11. Marketing Strategy • A combination of local media and event marketing will be utilized at each location as well as on the college campuses. • Pricing Strategy • Promotion Strategy • Marketing Program

12. Sales Strategy • The sales strategy is to build and open new locations on schedule in order to increase revenue. • Goal is $2 to $3 million in annual sales per unit

13. Management team Quadriyyah Jimmerson Director and founder: Retail Area. Education: Kennesaw State University Undergrad Accounting and English Professional Experience: Manager of McDonalds Matt Judd Director and founder: Sales and Marketing Education: Kennesaw State University Professional Experience: Racetrac Accountant Kelly Millar Controller and Founder Education: Kennesaw State University Undergrad in Accounting Professional Experience: HA&W external auditor 1 year David Bufton Education: Kennesaw State University Director and Founder: Store Operations 10 Years experience in printing and publishing Management experience from the U.S. Air Force Current organization stands at four founders overseeing the direction and operations of the College Station sports bar and grill. Their salaries are included in the projections. Future organizational structure will include general managers at each location, and directors over the areas that the founders currently manage. This will allow the founders to focus on the executive level of management and will provide supervisory level between executive and store management. Operations of individual stores will be the responsibility of the general manager. Organizational Structure

14. Financial Highlights

15. Start Up Expenses

16. Sales Forecast Sales Forecast For the Year Ended 2006 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales Food $49,812 $52,254 $57,593 $61,953 $68,681 $77,592 $78,243 $80,060 $84,735 $88,537 $91,486 $94,122 Drinks $40,755 $42,666 $47,025 $50,586 $56,079 $63,355 $63,886 $65,370 $69,187 $72,292 $74,700 $76,852 Retail $0 $959 $1,057 $1,137 $1,260 $1,424 $1,436 $1,469 $1,555 $1,625 $1,679 $1,727 Other Total Sales $90,567 $95,879 $105,675 $113,676 $126,021 $142,370 $143,565 $146,899 $155,477 $162,453 $167,865 $172,700 Direct Cost of Sales Food $15,940 $16,721 $18,430 $19,825 $21,978 $24,829 $25,038 $25,619 $27,115 $28,332 $29,276 $30,119 Drinks $13,042 $13,653 $15,048 $16,187 $17,945 $20,273 $20,444 $20,918 $22,140 $23,133 $23,904 $24,592 Retail $0 $307 $338 $364 $403 $456 $459 $470 $498 $520 $537 $553 Other Subtotal Direct Cost of Sales $28,981 $30,681 $33,816 $36,376 $40,327 $45,558 $45,941 $47,008 $49,753 $51,985 $53,717 $55,264

17. Projected Profit and Loss 2006 2007 2008 Sales $1,623,147 $1,995,022 $3,453,468 Cost of Goods Sold $519,407 $648,382 $1,146,551 Gross Margin $1,103,740 $1,346,640 $2,306,917 Gross Margin % 68.00% 67.50% 66.80% Expenses: Payroll $373,320 $402,140 $785,320 Consulting Fees $100,000 $100,000 $100,000 Sales and Marketing $57,500 $52,000 $95,000 Depreciation $20,700 $20,700 $41,400 Utilities $27,600 $31,567 $61,450 Insurance $36,000 $36,000 $65,000 Rent $83,400 $83,400 $172,500 Payroll Taxes $42,000 $45,000 $82,000 License $10,425 $10,425 $21,000 Total Operating Expenses $750,945 $781,232 $1,423,670 Profit Before Income and Taxes $352,795 $565,408 $883,247 Interest Expense $43,257 $40,245 $36,967 Net Profit $309,538 $525,163 $846,280 Net Profit/Sales 19.07% 26.32% 24.51%

18. Projected Cash Flows 2006 2007 2008 Beginning Cash and Cash Equivalents $0 $626,704 $1,098,608 Cash Flow from Operating Activities: Net Income $309,538 $525,163 $846,280 Adjustments for Non Cash Items: Depreciation $20,700 $20,700 $41,400 Changes in Assets and Liabilities Inventory $10,394 $2,244 $3,560 Accounts Receivable $0 $0 $0 Accounts Payable $5,600 $3,525 $9,160 Net Cash from Operations $325,444 $547,144 $893,280 Cash Flow from Investing Activities: Additions to PP & E $118,500 $0 $88,500 Net Cash provided by Investing Activities: $118,500 $0 $88,500 Cash Flow from Financing Activities: Proceeds from Long Term Debt $495,000 Repayments of Long Term Debt ($75,240) ($75,240) ($75,240) Net Cash Provided by Financing Activities: $419,760 ($75,240) ($75,240) Net Increase/Decrease in Cash $626,704 $471,904 $729,540 Ending Cash and Cash Equivalents $626,704 $1,098,608 $1,828,147

19. Variable Cost $0.33 per unit Fixed Cost $69,000.00 Expected Sales 135,000 units Price $1.00 per unit Total Revenue $135,000.00 (Avg. Monthly) Total Variable Costs $44,550.00 Profit $21,450.00 (Avg. Monthly) Breakeven Analysis We will breakeven at $102,985 dollars of sales

20. Rent or Buy?

21. Rent or Buy?

22. Key Ratios