Company Goals and Objectives
Da Spot Cannabis & Hookah Lounge can reasonably accomplish a safe, mature, secure, and comfortable happy hour accommodation for any adult that would like to partake in the recreational use of cannabis, hookah, alcohol, and food. We are looking for a $300,000 investment and give a 20% stake in the company that can triple the investment by the end of the businesses first year. The requested amount will cover location cost, employee hiring (including benefits), remodeling, advertising, inventory, lounge setup (internet, cable, registers applications and payroll) and anything else needed. This will allow us to get a jump start and get everything done and ready for grand opening within 4 to 6 months of investment.
(We are open to investor purchasing stand alone location as well)
The Target market is the working class mature adults that are 30 and above that enjoy smoking cannabis, and smoking hookah. Working class adults that also enjoy listening to live music, eating good food, and that enjoy a relaxing atmosphere. We are targeting the working class market because we know that all adults need a break after work and we are offering them an environment that they are free to utilize recreational cannabis without having to be home. At present we are targeting our local market only. Eventually we will target our regional market, and soon after, we will target our national market.
Due to the nature of our Lounge, it will be the first of its kind in the state of Virginia, we feel that we do not need to charge more, and that our prices are on par with the other surrounding food establishments. Alcohol and beer will range between $40.00 and $100.00 per bottle or case for well-known craft beers, well, and top shelf drinks. With about 30 different liquors on hand, and 10 or more different craft beers on hand, our overall alcohol product cost will range between $5,000 and $10,000.00 per month. With our wide range of delicious food from our menu , we are using $55,000.00 to $60,000 for our starting inventory, with an estimated monthly replenishment cost of $100,000.00(based on consistent business). Our estimated profit margin is 70% of $336,000.00 which equates to $236,000.00 after employee pay, monthly inventory, and monthly bills. This estimate is based off the lounge being at half capacity (60 patrons) at $40.00 per tab, 7 hours a day, 5 days a week. This bill amount does not include a hookah purchase and is based off of 2 drinks and a meal per patron. Forecast amount includes daily attractions including but not limited to "Karaoke Wednesday's" or "Smoke and Paint Fridays" but does not include any special events that can be hosted at the Lounge on Saturday and Sunday.
We are planning to secure an established location within 30 days of funding. Once location is secured, we will begin renovation in hopes of completion within 2 months, to include all furniture and appliances, painting and additional equipment necessary for the lounge to function. The last month and half after renovation is complete, we will be conducting interviews and establishing state required training for all required employees to prepare for opening. We will hire 19 new employees including a total of 3 bartenders, 6 wait staff, 1 host, 2 managers, 1 head chef, and 6 kitchen staff (a prep cook, fry cook, line cook, 2 table bussers and a dish washer). The goal is to be fully operational by September 2022.
We are currently not interested in market share. In the next 12 months, our goal is to accomplish the ability to stay at capacity every hour for the duration of 4pm-11pm Monday-Friday, and to also continue to maintain and grow our customer base. Once the Virginia cannabis retail laws are sorted, we will be looking into obtaining a cannabis license so that we will be able to be a legalized cannabis distributor as well as an edible restaurant.
We would also like to have at least 3 additional Da Spot Cannabis & Hookah Lounge franchises in a correlating major city in the United States. Currently we are looking to put a franchise in Los Angeles, California, and in Chicago Illinois.
Due to the environment that we provide (cannabis smoking indoors) there are currently no other competitors on the market that provide the variety of things we provide like, cannabis smoking, hookah, food, drinks, and live entertainment all in one centralized location.
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