Skyline Chili at CWRU

1
Skyline Chili at CWRU

• JP Coakley
• Dan Meismer
• Josh Rekula
• Mark Renfrew

2
Introduction

• Late night diner on the CWRU campus
• Franchise Skyline Chili
• Agenda

3
Agenda

• Objective
• Methods
• Corporate Overview
• Local Area
• Financing
• Forecasts of Returns
• Conclusions

4
Objective

• Exploit the lack of late night dining
• Offer a competitive daytime establishment
• Long term and low risk investment

5
Research Methods

• Surveys
• Information from Corporate office
• Interviews business owners
• Visits to Skyline units

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Corporate Overview

• Popular Cincinnati chili chain
• The Menu
• Simplicity

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The 5-Way
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Statistics

• Units 114
• System-wide Sales 104 Million
• Average Unit Volume 875,000
• Average check 6.50

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Local Area

• Location
• Population
• Businesses

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Financial Information

• Expenses
• Startup
• Operational
• Sales
• Revenue
• Advertising

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Startup Expenses

• Franchise Fee
• Area Development Fee
• Equipment Cost and Remodeling
• Total 225,000

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Startup Costs
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Operational Expenses

• Salary
• Tax
• Lease, Utilities, Insurance
• Food Materials
• Royalties
• Advertising
• Total 702,000 / Year

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Operational Costs
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Sales

• Average Unit Revenue is 870,000 / Year
• Estimated Average Profit 168,000 / Year
• Demographics
• Advertising

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Forecasts

• Profit stream
• Returns on Investment
• Future outlook

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Profit Forecast
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Forecasts

• Profit stream
• Returns on Investment
• 400,000 initial investment
• Net profit 515,000 in 5 years
• Future outlook
• Solid profits after initial costs are paid
• Guaranteed demand due to location

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Conclusions

• The business will begin to profit in 2 years
• Stable, low-risk investment
• High returns

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Questions