INTRODUCTION INTRODUCTION Michael Auger g � C0 ‐ founder / Managing Partner � Executive VP of Operations at GameWorks E i VP f O i G W k � 23 years of restaurant and entertainment experience � Opened 30 entertainment venues in US and abroad � Concept development for over 15 different restaurant / entertainment venues since starting TMG
TRIFECTA MANAGEMENT GROUP GROUP Trifecta Management Group (TMG) provides innovative concepts, efficient operations and value added solutions/systems to the restaurant and retail entertainment industries. TMG is built around two simple, yet focused, ideas: 1. to create, manage and grow compelling, customized d ll d restaurant and entertainment concepts tailored on the specific needs of the marketplace 2. to maximize profitability for stakeholders of retail concerns focusing on product enhancement, sales, management and operating efficiencies operating efficiencies
CUSTOM CONCEPTS CUSTOM CONCEPTS
CONSULTING CONSULTING
TMG’S CONCEPT DEVELOPMENT APPROACH DEVELOPMENT APPROACH (New and existing concepts) ( g p ) TMG Perspective � The success of every project is predicated upon having a The success of every project is predicated upon having a compelling restaurant and bar concept. Based upon the market, they may have a variety of entertainment options � All experiences within the venue must be executed at a high All experiences within the venue must be executed at a high level � Product must be right for the market � Pricing must be right for the market � Pricing must be right for the market � Market must have a need for the concept
SELECTING A MARKET / CONCEPT SELECTING A MARKET / CONCEPT � Understand the market demographics � Age and % breakdown � Income levels – must have over 90% of target with discretionary spending power spending power � Competition – identify you competitive sustainable advantage � Build to your audience plus + (aspirational audience) y p ( p ) � Create concept targeting your core user, not everyone in your marketplace � Exceed consumers expectation on the environment and quality � Exceed consumers expectation on the environment and quality � Fill a void that exists in the marketplace � Build a compelling experience � Build a compelling experience
DETERMINE BUSINESS LEVEL STRATEGY STRATEGY � Low cost leader model (Wal Mart) � Low prices / no frills � Middle model (Sears) � Moderate prices / some differentiation � Differentiating model (Nordstrom’s) � Quality is paramount / differentiation
BUILD THE BETTER MOUSE TRAP BUILD THE BETTER MOUSE TRAP There are only 160 FEC’s in the US y � What are you going to build? � We shape the industry Conceptual components – Combine the right elements • Food and Beverage � Full service restaurant � Full service restaurant � Fast casual • Bowling • Arcade d • Laser tag • Live entertainment • Sports viewing
BUILD THE BETTER MOUSE TRAP BUILD THE BETTER MOUSE TRAP Environment • Look and feel Audio / visual enhancement • • Female friendly Spatial relationships • Understand traffic flows • Create connected energy zones • Complimentary environments adjacencies Execution • Deliver upon the promise � The ability to execute is your only sustainable advantage over time
THE CORNER ALLEY
SHENANIGANZ
UPTOWN ALLEY
LATITUDE 30 3
MAXIMIZING REVENUES MAXIMIZING REVENUES FOCUS: How do you maximize top line sales? Revenue drivers (conceptual components) • ALL aspects of the experience must be competitive and need to stand alone alone � Product differentiation � What do your target customers want? • C Create repeatable experiences t t bl i � Select and package core products to increase frequency of visitation � Do not build a theme park experience – 1 time a year visit • Complete experience � Capture all discretionary entertainment AND dining dollars whenever possible
REVENUE STREAMS REVENUE STREAMS Transient • Cater to the available target audience with discretionary income d sc et o a y co e � Socially active adults � Families with children � Avoid the temptation to being everything to everyone � A id th t t ti t b i thi t • Women � 80% of dining decisions are made by the women of the � 80% of dining decisions are made by the women of the household � Consider this when making all menu, environmental and conceptual decisions conceptual decisions
REVENUE STREAMS REVENUE STREAMS Event ‐ Contracted • Corporate • SMERF (social, military, educational, recreational, fraternal) • • Social (birthday parties bar mitzvah's etc ) Social (birthday parties, bar mitzvah s etc…) Day parts Build a model where you can drive traffic in all day parts • Lunch • Happy Hour ppy • Dinner • Late night
REVENUE STREAMS EVENTS REVENUE STREAMS ‐ EVENTS
REVENUE STREAMS PROMOTIONS REVENUE STREAMS ‐ PROMOTIONS
REVENUE STREAMS –TARGET AUDIENCE
WHY FOOD & BEVERAGE? WHY FOOD & BEVERAGE? • Provides another reason for guests to visit your venue and something they already do several times a week l d d l ti k When done correctly, it improves appeal for ancillary revenues ‐ corporate • events and other F&B dependent or complimentary functions such as live events and other F&B dependent or complimentary functions such as live music. • The weekend entertainment user is dining out already, so capture The weekend entertainment user is dining out already, so capture discretionary entertainment and dining dollar • Extends the average length of stay • Expands earning potential to weekday lunch, happy hour and late night day parts • Improves concept appeal for developers
RESTAURANT INDUSTRY RESTAURANT INDUSTRY The past 50 years p 5 y • Special occasions • Primarily independent ownership • High end or low end models High end or low end models • Marginal quality US Restaurant industry today S i d d • 906,000 restaurants • $604 billion in revenues / 4% of GDP • 10% of the US workforce – 12.8 million employees • Positive sales growth in 2011 – 3.6%
RESTAURANT INDUSTRY RESTAURANT INDUSTRY � Average person dining out 2 ‐ 3 times a week � Average active adult dining out 4 ‐ 5 times a week � Cost of dining continues to drop while quality continues to rise � It is estimated that in the next 3 ‐ 5 years, it will be less expensive to dine out verses eating at home ti t h � Groceries cost are rising at 6% annually, a rate of 2.5 times that of meals in a restaurant
RESTAURANT INDUSTRY RESTAURANT INDUSTRY Complicated Business Model p � Extremely competitive � # 1 failure rate of any new business in US � # 1 failure rate of any new business in US � Complicated operation � Real time manufacturing of a custom product � Real time manufacturing of a custom product � Real time customer service � Vast majority of work force are transient in nature � Everyone is a food expert � Every person has their own preferences on what flavors they like and don’t like
BOWLING BASED BUSINESS MODELS TRADITIONAL BOUTIQUE L.B.E. HYBRID
TMG ENTERTAINMENT VENUES FINANCIAL MODELS FINANCIAL MODELS
CREATING A SUCCESSFUL F&B EXPERIENCE EXPERIENCE Think about your favorite restaurant and what makes it your y y favorite? � Dining is a very personal choice � Understand what resonates with your target audience Understand what resonates with your target audience � Menu items, flavor profiles, price points and theme are all critical decisions when creating a restaurant concept � Pricing is critical and must not exceed core audience discretionary spending capabilities � Target casual dining price points $8 ‐ 14 core menu pricing � Highly competitive so don’t take it for granted…it is not a build it and they will come. � All t � All too often, F&B in entertainment venues are after thoughts and ft F&B i t t i t ft th ht d operated as such
CREATING A SUCCESSFUL F&B EXPERIENCE EXPERIENCE Commit to being in the food and beverage business � Entertainment venues have to break an established paradigm of poor food quality � Great food and service is now the basic standard in the restaurant industry and a must for entry. � If you don't have a compelling and competitive F&B product, don't y p g p p , be in the business � COGS target 29 ‐ 31% � A strong value perception is important...balance between portion, quality and price � Labor target 29 ‐ 31% Labor target 29 31% � Labor intensive business, so understand the investment upfront
CREATING A SUCCESSFUL F&B EXPERIENCE EXPERIENCE Theater of the Senses � Ensure the environment and food stimulates all 5 senses � Exposition style kitchens, proper lighting, finishes etc….all contribute to a dining experience � Comfortable and cool bar environments � Understand how lighting music and video caters to your Understand how lighting, music and video caters to your audience � Done correctly this will assist in creating unique environments based upon day part
RESTAURANTS
TRA ADITIO ONAL L CEN TER SNA ACK B BAR S SEATI NG
RESTAURANTS
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