CCHG, Inc.

LaTanya White, MBA 1700 N. Monroe St, 11-171 Tallahassee, Fl 32303 www.71ProofLLC.com [email protected]

Concept Creative Hospitality Group, Inc. Business Plan

Executive Summary 3 Company Overview 6 Company Vision 6 Current Status 10 Company Strategy 11 Mission Statement, Goals and Objectives 13 Market Analysis 14 Competitive Environment 16 Operations 17 Marketing Strategy 17 Menu Production Strategy 23 Personnel and Administrative Strategies 23 Financial Strategy 25 Management 26 Key Personnel 26 Personnel Needs 28 Organizational Structure 28 Financial Analysis 29 Financial Assumptions 29 Statement of Cash Flows 30 Balance Sheet 30 Income Statement 30 Fund Usage Analysis 31 Risk Analysis 32 References 33 Financial Documents Appendix A Facility and Location Appendix B Menu Management Appendix C

Executive Summary Concept Cocktail Experience will fall under the Concept Creative Hospitality Group, Inc.

(CCHG) umbrella and is a lounge that will cater to the mature working professional

between the ages of 25-55 years old. Concept is a green social and business space

dedicated to sustainable hospitality; the establishment aims to meet the networking needs

of the working professional by providing an atmosphere that is conducive to both social

and professional interaction. The mission of the establishment is to Create One Night into

a Cocktail Experience that Proves Timeless; Concept will continually push the envelope

of what is accepted as superb service and will carve a niche for Tallahassee as a hotbed

for creative hospitality while consistently promoting and encouraging responsible alcohol

service and consumption in the community.

LaTanya White, the entrepreneur who has identified the need for such a venue, has

located the ideal location for the establishment. Currently owned by Commercial

Consultants Corporation of Tallahassee, Florida, the facility is located in the Downtown

Tallahassee cluster; it is a 15,000 square foot structure that is conveniently situated a

half-mile from the State Capitol Building; the proposed site for the city’s Center for

Performing Arts- a 3,000 seat facility and the designated site for Cascades Park. The

facility is located at 115 W. Bloxham Street, Tallahassee, FL 32301. The company is

asking for $1.1 Million for the building and adjacent property; it has been on the market

for 5 years.

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Concept Creative Hospitality Group will be a sustainable hospitality establishment that

will support and maintain green operating and will consist of a private meeting space, a

commercial restaurant and office and retail space available for lease. The private

meetings space will fill the community’s need for additional venues available for private

rental. Many of Tallahassee’s small business owners are interested in affordable office

space that would put them at the center of activity and the office spaces available at

CCHG will allow them to create a presence in the downtown area. Finally, the

commercial restaurant will be a vehicle used to create a daytime presence for the Group.

White’s current business venture, 71 Proof, will also fall under the CCHG umbrella and

will serve as the launching pad for the Cocktail Experience Lounge by leveraging the

business relationships of 71 Proof in the Group’s success. The Cocktail Experience

Lounge will be designed in a way that supports sustainable hospitality in its efforts to

obtain LEED Certification and will dispatch the 'bar fresh' method of beverage

development by employing the farm-to-table concept based on seasonal availability.

The Cocktail Experience patron is between the ages of 25-55 years old, holds a

professional career position and has obtained an advanced academic degree(s). They have

disposable discretionary incomes upwards of $15,000 annually and are very technically

inclined. Anticipated marketing efforts will include focus groups and various advertising

campaigns will be employed to enlist participants. Other marketing and promotional

activities will include the development of a social networking website associated with the

brand and the granting of exclusive, members-only status to loyal patrons.

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The National Restaurant Association (NRA) generates financial assumptions based on

empirical evidence and industry averages. Some of those assumptions have been used in

the development of the financial plan for the Concept Creative Hospitality Group in this

document. Total food sales for the first full calendar year of operation are estimated at

$1,157,058.24 with dinner sales from the Cocktail Experience Lounge accounting for

65% of those sales. Concept markets itself as an ultralounge with a focus on creative

hospitality and specializing in the development of signature cocktail recipes. As such,

beverage sales make up 51% of the $2,393,196 food and beverage sales estimate. A

desired food cost of 30% was determined with a beverage cost of 20%. Office inventory,

professional fees, pre-opening advertising costs, printing costs, uniform and

miscellaneous costs were also figures based on empirical data; along with a

recommended 20% contingency fund, the figures amount to the total startup cost,

including working capital for Year 0, of $2.7 Million.

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Company Overview

Company Vision The structure that houses the Cocktail Experience Lounge is a mixed-use building that

provides work/play space for the general public and live/work space for the principal

owner, LaTanya White. The identified structure is currently a 3-story building and, upon

completion of financing, transfer of ownership and renovations, will be LEED certified

and will embrace an operational stance of sustainable hospitality in order to support and

maintain green operating. In order to meet the requirements of sustainable hospitality, the

Florida Capital Chapter of the United States Green Building Council and Sustainable

Tallahassee will be used as resources. By using these organizations as sources for

networking and education, Concept will be the leader in Tallahassee’s hospitality

industry by promoting education, inter-cooperation, and endorsing policies for

environmentally responsible practices, construction methods, materials and

environments.

As Tallahassee is lacking in its offerings of meeting spaces and facilities available for

private rental, the basement floor of Concept will be designed to support the inherent

flexibility needed for such activities. The entry-level floor will be dedicated to the 1,500

square feet of space that will be available for monthly lease terms in addition to the

commercial restaurant, The Bloxham Bistro. Commercial kitchen equipment needed to

support the commercial restaurant activity for The Bistro, the catering needs of the

meeting space and any food orders from the lounge, will be housed on the basement floor

with the banquet facility.

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The Cocktail Experience Lounge is the lounge area that will cater to the mature

professional between the ages of 25-55 years old; it will be open to members of the

general public that are at least 25 years of age in proper attire 7 nights a week. Concept

aims to meet the networking needs of the working professional by providing an

atmosphere that is conducive to both social and professional interaction. Concept’s bill of

fare will offer a limited selection of appetizers and heavy hors d’oeuvres along with

specialty desserts and cocktails.

The lounge area will support social interaction with open, comfortable seating along with

booths that allow a slightly more intimate level of social activity. It will be replete with a

semi-exclusive For Tastemakers Only (FTO) room, 115- where FTO is the social

equivalent of VIP status. Concept is dimly lit with soft seating that includes poufs,

banquettes and couches. The interior design theme is modern-traditionalist with a neutral

color scheme highlighted with brightly colored accents. 115 is decorated with richer

colors that evoke an intimate feel without feeling cramped. The establishment will also be

fitted with a rooftop garden area that will further support social networking and will be

only one of two rooftop lounges in the area.

Restaurant Segmentation The menu highlight for the establishment will be the cocktail selections which will be

comprised of both custom developed recipes and traditional recipes. All mixed drink

recipes will be made with seasonally available produce and will be prepared a la minute,

when practical. That is, an order for the Orange Marmalade cocktail will be prepared with

orange juice freshly squeezed to order on nights with low volume. On subsequently

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busier evenings, all citrus juices will be freshly-squeezed as a part of the preparation for

that shift. Although food is served in the Cocktail Experience Lounge, the primary appeal

is for the social and professional networking atmosphere; therefore, the restaurant

segment for this operation is Event Dining. Also, the provision of a dining menu,

however limited, lends itself to support the responsible alcohol service tenet of the

establishment.

The Bloxham Bistro is a revenue extension of Concept Creative Hospitality Group and

will be a space dedicated to commercial restaurant activity. Of the ten new restaurant

segments in the commercial restaurant industry, The Bistro will be reminiscent of several

different styles, including Everyday Chic, Hang-Outs and Experience Dining and merges

the major aspects of each of these segments. The Bistro will be located on the entry floor

of the building will serve as the city’s designated establishment to relax, conduct

business, socialize and dine and will be replete with wireless internet capability,

functional yet comfortable seating and flat-panel televisions.

Operations, Atmosphere and Decor Concept will be dimly lit with soft seating that includes poufs, banquettes and couches.

The interior design theme is modern-traditionalist with a neutral color scheme

highlighted with brightly colored accents. Being an upscale lounge, bottle service

operations will be available and the accompanying décor and equipment will be on-hand

to allow for that service. These products are manufactured by Fry Fabrications, a

company based in Phoenix, Arizona. Additionally, as the Concept customer is technically

inclined and the use of cell phones and text messaging is at an all-time high, the Cocktail

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Experience Lounge will also have Tallahassee’s only cell phone booths on site. These

booths, called The Cell Zone and developed by Salemi Industries, have been specifically

designed to reduce noise from the surrounding environment. Their design is functional-

from their shape to the soundproofing materials used inside- allowing the Concept patron

to place and receive phone calls in the lounge.

The atmosphere of The Bloxham Bistro is bright, airy and well-lit and is conducive to a

relaxing daytime environment of socializing and productivity. It will be decorated so that

the guest is aware that he or she is not alone but the sounds of other attending guests will

not disturb their personal working environment. This will be achieved by an interior

design that is both functional and cozy; it will be an informal space that is warm and

inviting for both singles and couples. The Green Room will be designed with neutrality as

its core décor theme. The flooring, wall coverings and chairs will have minimalist

designs, that which is inherently flexible in an effort to allow the event or meeting

planner’s vision to become a reality. Round tables, 72” in diameter, will be the default

table style as they allow for more seating per square inch than the rectangular alternative.

The Rooftop Garden will be fitted with furniture that has been designed to weather

outdoor climates using responsibly-sourced materials and made from renewable

resources, where possible.

Total Seating Capacity The total seating capacity for Concept, including the rooftop garden area, is 354. The

Cocktail Experience Lounge area can accommodate 99 people seated and the projected

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square footage of the space is 3,465. The rental facility space will be able to

accommodate eight to ten 72” round tables, allowing for the seating of up to 150 persons.

Check Average and Hours of Operation Breakfast will be served at The Bloxham Bistro only on Friday, Saturday and Sunday

mornings from 1 am until 6 am. Sunday brunch will be available on selected special

occasions and will operate from 10am to 2pm on specified dates. The breakfast check

average is $8 with 2 anticipated turns for that daypart, where turns are defined as the

number of times a new customer is seated in the restaurant during a specific meal service.

The average check for a lunchtime meal at The Bistro is $12 and will be prepared only

during the hours of 11am to 4pm, operating for a total of 312 days per year. The number

of turns for the lunch meal is expected to be 4; lunch is available Monday through Friday

at The Bistro. The tapas menu check average is $20 and is only available in the Cocktail

Experience Lounge from 5pm to 1am Monday through Saturday. The average beverage

check is $10 with six turns projected; the preparation and service of these cocktails is

available 7 days a week from 5pm to 2am, in accordance with Tallahassee City

Ordinance.

Current Status At the time of this writing, plans for Concept Creative Hospitality Group have been

underway for 18 months- since July 21, 2007. October 2007 marks the date that Ms.

LaTanya White began pursuing her degree in Wine, Spirits and Beverage Management at

the Art Institute of Tampa; she will have satisfied all the course requirements- and will be

the program’s first graduate- in March 2009.

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White has identified experts in different areas related to the success of the business,

including those in the field of Event Marketing, Public Relations and Commercial Real

Estate and has tapped them to be a part of Concept’s success. Also, several investors have

been identified and will be among the first to have an opportunity to invest in the venture

beginning February 2009. White has set a soft opening date of Friday, November 27,

2009 as this date will allow for a 34 days of operations prior to the Grand Opening Event

to be held on Thursday, December 31, 2009. The Grand Opening event will be marketed

as Tallahassee’s Best New Year’s Eve Party and will include a special performance by

one of the music industry’s most popular artists. The ceremony will be held in the

Cocktail Experience Lounge at 6 o’clock in the evening and will be attended by local

celebrities, loyal supporters and industry experts who have been selectively invited to

attend. The program will open with a performance of Goapele’s neo-soul hit “Closer To

My Dreams” and a musical selection from Broadway’s Wicked The Musical, “Defying

Gravity.” The celebration event will be open to the public and performance tickets will be

available for sale to those 21 years of age and older.

Company Strategy Revenue diversification is the Group’s primary operating strategy by exploiting all

available options for revenue per square foot. Six revenue streams will be deployed in

order to accomplish this strategy- advertising sales, space leasing, rental bookings, FTO

Membership sales, food sales and beverage sales, in order of contribution margin. The

retail and office space being leased along with the membership fees generated will be

structured in a way that absorbs approximately 10% of the business’ overhead expenses.

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The sale of advertising space is expected to generate an additional $1,000 based on the

space available in the establishment. Annual revenue to be generated from leasing

activities will be upwards $60,000, as 1,500 square feet of space will be made available

to for leasing. Ten office space units, at 10 by 10 square feet each, will be rented out at

$500 per month and retail space. The remaining 500 square feet of space will be

dedicated for retail space.

The banquet facilities will be a total of 3,500 square feet and will be designed in a way

that allows for the space to be sectioned into smaller rooms when a more intimate space

is required for a specific meeting or event. Venues comparable in size have rental fees of

upwards of $2,000 per day; Concept aims to secure bookings for The Green Room on 50

separate occasions during the first full year of operations generating an additional

$100,000 for operational Year 1. Subsequent years of operation will reflect booking rates

of 50%, 75% and 95%. “For Tastemakers Only” is the designation that will be conferred

upon those seek to acquire the exclusive membership privileges at Concept. Membership

will be capped at 500 designations and, at a monthly membership fee of $50 per member,

is expected to generate and additional $294,000 including an anticipated attrition rate of

2% per annum.

Revenue generated from the commercial restaurant will be captured by a menu

engineering and management strategy that encompasses a food cost of 30% and a

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beverage cost of 20%, contributing $2.7 million to the projected $3.1 million in total

revenue for 2010.

Mission Statement, Goals and Objectives In The Art of the Start, author Guy Kawaski provides keen direction on the development

of a company’s positioning statement. Completion of the related exercises helped form

the mission statement of Concept into “Create One Night into a Cocktail Experience that

Proves itself Timeless.” Concept will continually push the envelope of what is accepted

as superb service and will carve a niche for Tallahassee as a hotbed for creative

hospitality while consistently promoting and encouraging responsible alcohol service and

consumption. As Concept aims to meet the networking needs of the young professional

by providing an atmosphere that is conducive to both social and professional interaction,

the businesses objectives include capturing 1% of Tallahassee’s hospitality market share

in the first year of operation as these needs are being met. Annual growth measurements

are projected at 5% per annum thereafter.

The strategy to be employed in the Cocktail Experience Lounge will be to ensure success

of the operation will be highly interactive, involving both internal and external customer

feedback. The use of the social networking website developed for the Cocktail

Experience Lounge will be integral to creating the type of environment that the target

market has expressed a need for. Focus groups will be marketed to such organizations as

Connect Florida, Network of Young Professionals, the Greater Tallahassee Chamber of

Commerce and the Florida A&M University Alumni Association.

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Market Analysis The distilled spirits industry is a major contributor to the nation’s economy generating

around $100 billion in U.S. economic activity annually. More than 1.2 million people are

employed in the United States in the production, distribution and the sale of distilled

spirits. According to the 2006 Consumer Buying Power data for Florida as provided by

Claritas Incorporated, residents and visitors spent $1.32 Billion dollars on the purchase

and consumption of alcoholic beverages. The American Community Survey for that same

year shows that the number of occupied housing units in Leon County as 108,402. With

the average household expenditure for the same time frame and category amounting to

upwards of $1,200, this creates an addressable market for Concept of $130,082,400.

The bar catering services that will be offered by Concept’s sister company, 71 Proof will

target customers through strategic partnerships with event planners, wedding consultants,

venue managers and specialty rental companies. At the time of this writing, 71 Proof has

been operating as Florida’s premier bar catering service for just under two years and is

itself a successful business operation. The company will continue to provide bar catering

services at off-premise locations; this operation will use the inventory and licensing

privileges of Concept in order to enhance its service offerings.

Market Segments Concept’s market segments will consist of entertainers, meeting planners, event

promoters and general patrons. Each of these segments will help determine the marketing

messages with their involvement in Concept’s focus groups. The objective of the focus

groups will be to get feedback from the target market in the development of segment-

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specific marketing messages. These activities will also serve to simultaneously establish a

loyal following among those considered to have some influence in the local community.

The Cocktail Experience Customer The Cocktail Experience patron is between the ages of 25-55 years old, holds a

professional career position and has obtained an advanced academic degree(s). They have

disposable discretionary incomes upwards of $15,000 annually and are very technically

inclined. This customer views herself as being a trendsetter and takes pleasure in

introducing her peer group to new ideas. This customer also values a high level of service

and makes no qualms about the associated cost of such service. The focus group

marketing tool will attract this trendsetting participant and will include college-aged

volunteers between the ages of 21-24, young professionals between the ages of 25-44 and

seasoned professionals 45 years of age and older.

The Rental Facility Customer In order to consistently generate revenue from the operation of the rental space that is

available at Concept, the customers to be targeted will be channeled through the strategic

partnerships with organizations that include the Tallahassee Association of Wedding

Professionals, Tallahassee Society of Association Executives and other similarly-oriented

groups. These constituents are important because their clients will become the end-users

of the space; this includes brides-to-be, Certified Meeting Planners and event promoters.

This customer has become weary of the over-use of the private venue options that are

currently available and is excited about a new social venue in Tallahassee’s hospitality

climate.

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The Bloxham Bistro Customer This customer is both health-conscious and environmentally aware of how his or her

decisions today impact the options that will be available for future generations. Keenly

aware of his carbon footprint, this customer aims to implement practices and support

operations that source their products by using socially responsible methods. A frequent

shopper at New Leaf Market, The Fresh Market and the open air market held in

downtown Tallahassee every Saturday from March to November, this customer is ready

to be met with the convenience of eating organically grown foods prepared outside of the

home environment.

Competitive Environment Using Clow’s direction in his text, The IMC Plan Pro Handbook, to conduct the

competitive analysis for Concept it was determined that while there are over 100 bars and

clubs that operate in Tallahassee, less than 20% of these establishments will be viable

competitors for the venue. Tallahassee, with its two major universities and large

community college, has an extremely transient population and most of these hospitality

establishments cater to the students that comprise 30% of the city’s resident data. Venues

that consistently target Concept’s customer and that are most popular among the segment

are listed below:

- 101 Mint Lounge - 2 Chez - Café Cabernet: Wednesday and Thursday nights - Clyde’s and Costello’s: Friday nights - The Moon - Paradigm: Friday nights - Tantra - Top Flight Club: Wednesday and Friday nights

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This analysis reveals Saturday night as the greatest opportunity for the Cocktail

Experience Lounge to forge ahead of the competition using product placement

differentiation. Wednesdays begin the weekend for many of these venues, and, unless

they also operate as a dining establishment, they often are not open for operation on

Sunday through Tuesday nights. In efforts to establish Concept’s brand of creative

hospitality, Sunday, Monday and Tuesday nights will be marketed as invite-only

engagements by local celebrities, including well-connected political officials, decision-

makers and influencers in the area. Concept will also differentiate itself by being

operational 6 days a week, Monday through Saturday.

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Operations

Marketing Strategy Concept Cocktail Experience will market itself as Tallahassee’s premier creative

hospitality establishment, one that provides an atmosphere that caters to the mature

professional by offering a level of service that is currently non-existent in the city. This

product differentiation will be easily identified using carefully crafted marketing

messages. Concept’s marketing strategy is to deploy full sensory branding; that is, each

of the five senses will be engaged at the Cocktail Experience Lounge. Sight and touch

will be engaged with the décor and design of the establishment; the food and beverage

menu options will be associated with the guests’ sense of taste. Opportunities to socialize

with peers and enjoy live musical performances are linked to the hearing sense and scent

marketing will be employed to fully engage the Concept customer by creating emotional

connections with the brand. ScentAir, a scent marketing solutions firm based in

Charlotte, North Carolina and a leader in the industry, will be retained to pinpoint which

scents will create the strongest emotional tie to the establishment.

Advertising The advertising campaign for Concept will begin six months prior to the grand opening

of the Cocktail Experience Lounge. Teaser radio advertisements will be heard on 97.9

Smooth Jazz, 96.1 Jamz and Star 98.9 during the afternoon drive time between 3 o’clock

and 7 o’clock pm and evenings from 7 pm to midnight. To employ the use of television

ads, marketing executives from Comcast Cable network will be consulted to learn about

the channels and segment times that the Concept patron is most exposed to.

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Print advertisements will consist of newspaper ads in the Tallahassee Democrat and

billboard ads placed strategically within city limits in areas where the Concept patron

frequents. Teaser ads will commence approximately 6 months before the Grand Opening

of December 31, 2009; these will be on the billboards located at the intersections of

Thomasville Road and Market Square Boulevard and South Monroe and Tennessee

streets. Subsequent advertisements will be placed on billboard near the Tallahassee

Regional Airport for visitors and tourists to the City. Advertisement placements will also

be employed in cities throughout the state where young professionals have a strong

presence and association with the city of Tallahassee- either as alumnus of Florida A&M

University or Florida State University. Jacksonville, Orlando and Tampa are at the top of

this list with South Florida’s cities like Miami/Ft. Lauderdale and the Palm Beaches

receiving minimal attention due to the geographical distance from Tallahassee.

Promotion There are several promotional efforts that will be put in place with a targeted focus being

the establishment serving as the host for various industry and organizational meetings.

These groups will have an opportunity to secure the use of the facility’s rental space for

one (1) meeting, event or private function with the rental fee waived with a discounted

food and beverage minimum of $250. Subsequent rentals that do not meet a $500 food

and beverage minimum or that use the services of third-party food caterers will be subject

to the standard rental fee of $1,500 for a 24-hour period.

There will be special events scheduled during seasonal lows that will make use of the

Cocktail Experience Lounge and The Green Room. The use of the Cocktail Experience

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Lounge will be limited in order to preserve the air of exclusivity of the lounge; many of

the promotional activities that will be hosted by Concept will take place in the rental

facility space to limit over-use of the lounge.

As Concept will be Tallahassee’s premier hospitality venue, it will be of the utmost

importance to create an air of exclusivity. This will be accomplished by conferring the

“FTO status” upon selected patrons. FTO status can also be earned by the general public

through documented demonstration of their loyalty to the establishment and by

purchasing the designation.

As Mondays and Tuesdays are typically the slower days for business, they will be

designated as ‘reveal’ nights. The FTO: Cocktail Reveal will be the night that a new

specialty cocktail recipe will debut at the Cocktail Experience Lounge and will be

available as cocktail flights, or samples. It will be marketed as an invitation-only event

“for tastemakers only.” In order to begin to achieve the FTO designation, customers will

have to sign up on the Concept social networking website and create a profile. This

profile will capture customer data on demographics, drink preferences, food preferences

and will allow the customer to provide feedback to management. The customers will be

tracked to as much detail as possible, including how often they visit the establishment, on

what specific occasions and the duration of their visit; members with the most data

collected will receive the FTO designation and will become eligible to gain access to the

most exclusive events at the establishment.

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Marketing Tools- Focus Group Simulations In order to attract the first crop of loyal patrons, those that consider themselves

trendsetters and influencers, advertisements will be placed in different online and print

vehicles including Facebook.com, Myspace.com, The FAMUan, FSView, Tallahassee

Magazine and The Limelight (a Tallahassee Democrat publication). Ms. White is a

member of Connect Florida, Access Tallahassee, the Greater Tallahassee Chamber of

Commerce, Network of Young Professionals and the Tallahassee Association of

Wedding Professionals; her membership allows her access the member databases of these

associations and they will be used to employ grassroots level marketing activities.

Finally, printed flyers and postcards will be distributed to such establishments as the

retail locations of ABC Fine Wine and Spirits, the Liquor Loft and other hospitality

venues in the area.

Individuals that respond to these advertisements will become members of Concept’s

focus groups who will complete surveys based on their market segmentation - either as a

patron, a performer, a planner, or a promoter. Upon completing questionnaires regarding

their social and nightlife preferences, these participants will undergo a basic simulation of

the Concept Cocktail Experience, complete with décor and a la minute bar service.

Participants in the Concept focus group will automatically gain the FTO designation.

The focus group simulations will begin forming on November 1, 2009 and will take place

a total of 4 times prior to the grand opening of the Cocktail Experience Lounge; each

simulation will engage a different Concept market segment and will be limited to 25

members per group. Subsequent dates are November 15th and December 1st. The

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December 15th installment will bring the all the market-segmented focus groups together

and will allow them to create their own full simulation of the Concept Cocktail

Experience; they should be approximately 200 in number, as each group member will be

allowed to bring one guest with them.

The simulation dates fall on non-standard social nights (Sundays and Tuesdays) and are

ideal as they do not impose on standing social obligations of the participants and exposes

them to the upcoming social activity option that Concept will provide on these slower,

non-traditional nights. This will also allow the staff to prepare for the highly anticipated

grand opening date of December 31, 2009 and will extend management the opportunity

to review the layout of the décor and design and make any feasible alterations.

Menu tastings will be conducted at these focus groups, with samples provided from each

seasonal food menu and cocktail menu throughout the series. The associated costs to

carry out these focus groups, including food and beverage costs, staff wages, executive

salaries, printing, promotional giveaways and utilities are earmarked in the

establishment’s “Pre-opening Training Costs”, “Salaries Prior to Opening” and “Pre-

opening Advertising Costs” in the Start-Up Cost Analysis of the financial plan. Along

with FTO designation, participants will receive a promotional 2009-2010 calendar that

marks important Concept dates including the Grand Opening celebration, Cocktail

Reveal dates, other special events and the 1-year anniversary of the establishment.

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Menu Production Strategy Concept is Tallahassee’s only creative hospitality establishment. Creative hospitality is

the development of food and beverage menu items that are unique in style, design and

manufacture using the farm-to-table theory of base ingredients in the creation of signature

items. The menu is seasonal and cyclical, debuting at the beginning of a 3-month period

and removed at the start of a new quarter. Concept will have a limited bill of fare that

consists mainly of mezze, tapas, heavy hors d’ouevres and entree-sized salads along with

specialty desserts and signature cocktails. The Bistro’s menu will be a little more robust,

offering sandwiches, soups and salads with both meat and vegetarian bases.

The menu highlight for the establishment will be the cocktail selections which will be

comprised of both custom developed recipes and traditional recipes. All mixed drink

recipes will be made with seasonally available produce and will be prepared a la minute,

when practical. The FTO: Cocktail Reveal will be the night that new specialty cocktail

recipes will debut at the Cocktail Experience Lounge and will be available as cocktail

flights, or samples.

Personnel and Administrative Strategies In keeping with the establishment’s position on sustainable hospitality and green business

practices, much of Concept’s administrative activities will be automated, thereby

reducing the use of paper. This will include the production and distribution of employee

and operations manuals and employee scheduling; all of which will be available online

and can be printed when necessary. Revention Point of Sale System is the front-runner in

the comparison-shopping activities for inventory reconciliation and order taking; this

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system also has applications to monitor food and beverage cost controls, employee

scheduling and labor costs.

Employee training will occur consistently on a quarterly basis for several reasons. As

previously mentioned, the menu items at Concept will change quarterly and training

sessions will coincide with these seasonal debuts to acquaint the staff with the marketing

messages and sales goals for that 3-month period. Additionally, in order to maintain the

Responsible Vendor Qualification through the State of Florida’s Alcoholic Beverages and

Tobacco Division, quarterly training on responsible server training must occur. These

refresher courses will also be timed around the seasonal menu training.

Employee empowerment and ownership is the core element of Concept’s success. Every

staff member will be granted the power and authority to address and handle customer

issues without the involvement of management unless absolutely necessary. Additionally,

in efforts to secure buy-in from the staff on the importance of maintaining low

operational expenses, employees will be privy to the financial impact that their actions

and decisions have on the bottom-line success of the establishment. In efforts to reduce

the potential for employee theft, each staff member will be granted a monthly tab from

which all employee meals and beverages will be deducted. A final figure for the tab

amount has not yet been determined but a cost-benefit analysis will be considered prior to

implementing this strategy.

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Financial Strategy Maintaining low operational costs, including food, beverage and labor costs, is the core

financial strategy for Concept Creative Hospitality Group, Inc.. All employee activities

will be conducted in the most efficient manner possible, enhancing employee

productivity, boosting employee morale and, in turn, increasing food and beverage sales

for the Group.

The hospitality industry generates more waste than almost any other economic industry in

the United States and the majority of that cost is often to the disposal techniques of

hospitality operators. One measure of green operating is the practice of recycling

materials and composting food waste. These activities decrease the number of pulls

necessary for carting waste away from the premises and their associated costs. Concept

will implement these types of systems as cost-saving and environmentally-friendly

measures. While Concept takes the stance of green hospitality and will offer organic food

items on its menu, the targeted food cost will remain 30%- despite the associated

premium cost of offering food and beverage that meets these rigorous standards. Menu

prices will reflect this target percentage. Higher beverage yields should easily lend

themselves to the bar and beverage staff of Concept maintaining a beverage cost of 20%

across all contributors- beer, wine, spirits and non-alcoholic beverages.

Strategies employed as secondary revenue generators will stem from rental bookings,

FTO memberships and selling advertising space on The Cell Zone phone booths, the

social networking site for Concept and the flat-panel televisions located throughout the

venue. Fees from rental bookings should generate $75,000 in the first full calendar year

25

of operation. FTO memberships are tentatively set at $125 annually with a target member

rate of 200 for the 2010 operating year. The pricing strategy for ad space will be

determined upon reviewing the specifications of each vehicle and determining the proper

reach and frequency data for potential advertisers.

26

Management

Key Personnel LaTanya White is the principal owner and operator of Concept Creative Hospitality

Group. She will complete her Associate’s degree in Wine, Spirits and Beverage

Management from the Art Institute of Tampa in March 2009. Ms White is also the owner

and Master Mixologist of 71 Proof, a company that staffs professionally trained

bartenders at private social functions. She received her training in Bartending and

Mixology from American Bartending School located in Tampa, Florida in July 2006.

White was conferred her Master of Business Administration degree from Florida A&M

University in 2003 with high honors.

White consistently demonstrates her commitment to responsible alcohol service and

consumption through her participation in the Florida’s Responsible Vendor Program, the

Tallahassee Chapter of the Florida Restaurant and Lodging Association and Tallahassee

Concerned Vendors. She was also tapped to be an Advisory Council member for the

Hospitality and Beverage Institute.

Other key personnel that have been identified as experts in their field have committed to

the success of the project. Ms. Keisha Pickett of Pickett Public Relations Group in

Tampa, Florida currently works with White for the public relations services she requires

to build the 71 Proof brand. Mikal J. Caldwell, CEO of Kingdom Consulting Group, will

be responsible for developing the brand identity for Concept Creative Hospitality Group

and will be advising White on her media campaign option. Both the Operations Manager,

27

Ms. Jada Phelps, MBA, and the Food Operations and Catering Manager, Ms. Stephanie

Lambert have worked closely with White in academic settings. Finally, White and one

Mallory Coats have worked together for various special events over the course of two

years. Coats has experience in Event Promotions and Marketing and has referred White

for several events where her bar catering services have been retained.

Personnel Needs In order to effectively face the peaks and valleys of customer demand, Miller et al advises

the implementation of split-scheduling, a technique that matches individual employee

work shifts with those inherent changes in volume. All employees will be cross-trained

and will become acquainted with the job requirements of their fellow co-workers,

developing in them a sense of appreciation for the inherent demands that the other

positions face. This strategy will also allow for easier split-shift scheduling and relying

upon existing employees to fill any scheduling gaps.

Organizational Structure Under the advice of a Certified Public Accountant, each business entity will have

separate TINs but will be a service mark of Concept Creative Hospitality Group,

Incorporated in order to protect the assets generated from each revenue stream. LaTanya

White will be the principal owner and operator of CCHG, Inc., maintaining at least 51%

ownership of all shares issued. A mastermind team will be made up of experts in the

fields of beverage alcohol law, finance, accounting and sustainability among other

interests. All operational leaders will present their thoughts and ideas to Ms. White prior

to real-time execution and after feedback from the Board of Advisors; shareholders

meetings will be scheduled for quarterly updates.

28

Financial Analysis

Financial Assumptions The National Restaurant Association (NRA) generates financial assumptions based on

empirical evidence and industry averages. These assumptions have been used in the

development of the financial plan for Concept Creative Hospitality Group, Inc., which

includes the Start-Up Cost Analysis, Statement of Cash Flows, Income Statements,

Balance Sheet and Fund Usage Analysis; each of these financial documents are available

in the Appendix to this document. The financial statements that have been prepared are

properly aligned with the marketing and operating strategies set forth by Ms. White. They

reflect data from the months of July 2009 through December 2009 (Year 0), as expenses

will be incurred for those months since the first day of operation is November 27, 2009.

The year 2010 marks the first full calendar and fiscal year of operation.

The NRA estimates that, on average, a hospitality venue will only operate at about 67%

of its seating capacity; this factor helps generate the estimates for food and beverage sales

based on the number of seats, average meal price, number of turns per meal segment and

number of days the establishment operates. Startup costs are a function of the total sales

figures and are impacted by various costs based on square footage. The $750,000

construction costs, $450,000 in décor costs and mortgage deposits of $275,000 are each

dependent upon the total square footage of the establishment. Square footage is

calculated by determining the number of seats needed per seating style. Office inventory,

professional fees, pre-opening advertising costs, printing costs, uniform and

miscellaneous costs were figures based on empirical data; the figures were given and add

to the total startup costs of $2.69 million.

29

Statement of Cash Flows The months of July through December 2009 reflects the near non-existing operating

activities for the establishment. Financing activities for that same period show the most

impact as the loan amount was awarded in the early part of the year. These finances went

towards the investment activities used to secure the building, land and equipment for

Concept. Upon achieving positive income gain in December 2009, the net income

amount is categorized into short-term investment activities, working capital and retained

earnings. The net cash flow for 2009 is $689,486.87. Figures of Years 2 and 3 reflect the

decrease in financing activities as any further capital needed for growth will come from

retained earnings and working capital for Concept.

Balance Sheet The balance sheet for Concept Creative Hospitality Group, Inc. demonstrates that the

establishment’s major liquidity lies in the food and beverage inventory kept on hand. In

2010, the $674,521.09 of inventory accounts for over 60% of Concept’s current assets.

This is important to note in the daily operations of the establishment in order to ensure

that the proper number of inventory turns are conducted for the most efficient revenue

generators. Of the total assets, the fixed building and land assets account for just under

half of the total fixed assets contribution. Long-term notes payable account for all of the

establishment’s long term liabilities reflecting the loan amount granted by private

investors.

Income Statement Maintaining a 30% food cost and a 20% beverage cost brings the total cost of sales to

$901,541.93, generating $2.12 million gross profit on these sales with a margin of

70.36% in Year 1. Total operating expenses, including payroll at 25%, employee benefits

30

at 5% and credit card fees at 2.5%- where each is determined as a function of total sales-

amounted to $1,917,836.09. Income taxes payable, at 4% of the Earned Income Before

Taxes (EIBT) of $507,566.51, totaled $145,216.16 leaving a net income amount of

$362,350.36 for the first full operating year. Quarterly income statement projections for

2011 and 2012 demonstrate the anticipated peaks and valleys to be faced throughout the

year. Quarters 1 and 4 will have the highest contribution to annual income at a projected

rate of 27%. This is expected to a function of the influx of occupants in the City during

legislative session and the holiday season, respectively. The third operating quarter of

each year will have the lowest contribution due to summer travel by many of the City’s

residents.

Fund Usage Analysis The source of funds for Concept Creative Hospitality Group will be attained through

private investors and government grants. Such institutions as the U.S. Small Business

Administration, the Florida Black Business Investment Board and various Economic

Development Council programs will be sought to secure federal, state and local

government grant funding. The application of funds have been earmarked for

construction and décor costs, restaurant equipment and other associated opening costs in

addition to the loan repayment amount. The complete financial plan, including all startup

figures, the application of funds, break even and depreciation analysis along with the

profit and loss statement is in the Appendix of this document.

31

Risk Analysis Risk analysis for Concept Creative Hospitality Group, Inc. has shown that there are

several weaknesses in the business concept and threats to the potential success of the

brand. The plan to address the issues presented is currently underway. Participation in

industry events and workshops, along with publicity for 71 Proof will be used to add

more credibility to the management of that brand. The relationships that 71 Proof

currently has with the general public will be used as leverage when debuting the Concept

Creative Hospitality Group, Inc. brand to the public.

Strengths • Principal owner has a superb working knowledge of the hospitality industry • Principal owner has developed a strong network of resources, key contacts and

decision-makers across various industries • Well-respected member of Florida’s business climate • Committed to advancing the hospitality industry in Tallahassee based on

professionalism and responsibility

Weaknesses • Majority of principal owner’s experience is academic, still gaining applied experience • The Concept brand is foreign to the majority of the target market base • Location of venue may not be in the area that the target market frequents • City has a high transient student population that is not the Concept customer

Opportunities • The creation of a specialized niche of hospitality coined creative hospitality • Focus on specialized beverage menus where the bill of fare compliments the drinks • Fulfill the unmet need of the social networking target demographic Consumers of

beverage alcohol are expanding their knowledge base of the spirits industry in record numbers

Threats • Older, more established hospitality venues and establishments • Possibility of the target demographic not being receptive to creative hospitality • Average success rate of hospitality establishments (often due to poor marketing and

promotional efforts, poor cost controls and lack of working capital) • Possibility of not being able to secure the ideal location

32

References Brown, R., Miron, A., (2006). The Professional Bar and Beverage Manager’s Handbook. Florida: Atlantic Publishing Clow, K., Baack, D., (2007). The IMC Plan Pro Handbook. New Jersey: Prentice Hall Kawaski, G., (2004).The Art of the Start. New York: Penguin Group Miller, J., Dopson, L., Hayes, D., (2005). Food and Beverage Cost Control, New Jersey: John Wiley and Sons, Inc. Sullivan, R., The Small Business Start-Up Guide, 3rd Edition, Information International www.salemiindustries.com, The Cell Zone Product Overview, date retrieved November 17, 2008 www.quickmba.com, SWOT Analysis, date retrieved March 5, 2008

33

Appendix A: Financial Documents

Day Part NRA Factor Turns Seats Avg. Ck Breakfast 0.667 2 35 8.00$ Lunch 0.667 4 35 12.00$ Dinner 0.667 3 60 20.00$

Bar and Beverage 0.667 6 99 10.00$

Facilities Layout Analysis

Room Style Seating Number of Seats

Cocktail Experience Lounge Informal 99The Bloxham Bistro Casual 35The Green Room Formal 150 Total Square FootageRooftop Garden Informal 20

15,000Mortgage Per Square Foot 73.33$ Asking Price 1,100,000.00$

Item Amount Life Annual DepreciationLeasehold 1,200,000.00$ 15 80,000.00$ Restaurant Equipment 75,000.00$ 10 7,500.00$ Office Equipment 8,500.00$ 3 2,833.33$

Total 90,333.33$

2009 Sales 2010 Sales Cost Percent 2009 Item Cost 2010 Item CostFood Items 117,658.80$ 1,284,321.84$ 30% 35,297.64$ 385,296.55$ Beverage Items 138,669.30$ 1,446,122.70$ 20% 27,733.86$ 289,224.54$

Total 256,328.10$ 2,730,444.54$ 63,031.50$ 674,521.09$

Primary Revenue 2009 Days Open 2009 Revenue 2010 Days Open 2010 Revenue

Breakfast Food Sales 0 -$ 156 58,269.12$ Lunch Food Sales 30 33,616.80$ 312 349,614.72$ Dinner Food Sales 35 84,042.00$ 365 876,438.00$

Total Food Sales 117,658.80$ 1,284,321.84$

Bar Sales 35 138,669.30$ 365 1,446,122.70$ Total Beverage Sales 138,669.30$ 1,446,122.70$

Secondary Revenue Rental Bookings -$ 100,000.00$ FTO Memberships 24,500.00$ 294,000.00$ Retail and Office Space Leasing 5,000.00$ 60,000.00$ Ad Space 1,000.00$ 2,500.00$

Total Sales 286,828.10$ 3,186,944.54$

Construction Costs 750,000.00$ Assumed expense of $50 per square footDécor Costs 450,000.00$ Assumed expense of $30 per square footRestaurant Equipment 75,000.00$ Based on industry assumptionsOffice Equipment 8,500.00$ Based on industry assumptionsFood and Beverage Inventory 56,210.09$ As a function of 2010 salesLicenses and permits 250,000.00$ Based on data from FAMU SBDCMortgage deposits 275,000.00$ As a function of total square footageUtility deposits 31,869.45$ As a function of 2010 salesInsurance deposits 111,543.06$ As a function of 2010 salesAccounting fees 5,000.00$ Industry average based on empirical dataLegal fees 5,000.00$ Industry average based on empirical dataPre-Opening Advertising costs 40,000.00$ Industry average based on empirical dataSalaries prior to opening 66,394.68$ One month's figures; a function of 2010 salesPre- opening training cost $ 61,287.40 Two pay periods; a function of 2010 salesPrinting costs 7,500.00$ Industry average based on empirical dataUniforms 10,000.00$ Industry average based on empirical dataMiscellaneous costs 40,000.00$ Including professional education and memberships

Subtotal 2,243,304.67$ Contingency fund 448,660.93$ Industry average based on empirical dataTotal Start-up Costs 2,691,965.60$

Start Up Cost Analysis

Assumptive Notes

(Based on a full operational year)

Sales Projection Analysis

Depreciation Analysis

Inventory Cost Analysis

National Restaurant Association Empirical Factors

-------------------------------------------------------

Concept Cocktail Experience

Appendix A- 1.0 Financial Assumptions

Concept Creative Hospitality GroupStatement of Cash Flows 2009For The Period Ending Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Total

Operating ActivitiesNet Income (40,318.86)$ (40,318.86)$ (43,318.86)$ (43,318.86)$ (36,951.59)$ 22,484.59$ (181,742.44)$ Accounts Payables -$ -$ -$ -$ 9,454.73$ 53,576.78$ 63,031.50$ Working Capital -$ -$ -$ -$ -$ -$ -$ Operating Activities Net Flow (40,318.86)$ (40,318.86)$ (43,318.86)$ (43,318.86)$ (27,496.86)$ 76,061.36$ (118,710.94)$

Investing ActivitiesPurchase of Building and Land (125,000.00)$ (125,000.00)$ (125,000.00)$ (125,000.00)$ (125,000.00)$ (125,000.00)$ (750,000.00)$ Purchase of Equipment (12,500.00)$ (12,500.00)$ (12,500.00)$ (12,500.00)$ (12,500.00)$ (12,500.00)$ (75,000.00)$ Investment Vehicles -$ -$ -$ -$ -$ -$ -$ Investing Activities Net Flow (137,500.00)$ (137,500.00)$ (137,500.00)$ (137,500.00)$ (137,500.00)$ (137,500.00)$ (825,000.00)$

Financing ActivitiesLong Term Loan Payments (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (116,579.83)$ Loan Award 942,187.96$ -$ -$ -$ -$ -$ 942,187.96$ Financing Activities Net Flow 922,757.99$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ 825,608.13$

Net Cash Flow 744,939.13$ (197,248.83)$ (200,248.83)$ (200,248.83)$ (184,426.83)$ (80,868.61)$ (118,102.81)$

Concept Creative Hospitality GroupStatement of Cash FlowsFor The Period Ending Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10

Operating ActivitiesNet Income 42,375.84$ 42,375.84$ 19,197.41$ 19,197.41$ 19,197.41$ 24,269.54$ Accounts Payables 80,942.53$ 80,942.53$ 47,216.48$ 47,216.48$ 47,216.48$ 40,471.27$ Working Capital 9,765.66$ 9,765.66$ 9,765.66$ 9,765.66$ 9,765.66$ 9,765.66$ Operating Activities Net Flow 133,084.04$ 133,084.04$ 76,179.55$ 76,179.55$ 76,179.55$ 74,506.47$

Investing ActivitiesPurchase of Building and Land -$ -$ -$ -$ -$ -$ Purchase of Equipment -$ -$ -$ -$ -$ -$ Investment Vehicles 8,475.17$ 8,475.17$ 3,839.48$ 3,839.48$ 3,839.48$ 4,853.91$ Investing Activities Net Flow 8,475.17$ 8,475.17$ 3,839.48$ 3,839.48$ 3,839.48$ 4,853.91$

Financing ActivitiesLong Term Loan Payments (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ Loan Award -$ -$ -$ -$ -$ -$ Financing Activities Net Flow (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$

Net Cash Flow 122,129.24$ 122,129.24$ 60,589.06$ 60,589.06$ 60,589.06$ 59,930.40$

Appendix A- 2.0 Statement of Cash Flows

Concept Creative Hospitality GroupStatement of Cash FlowsFor The Period Ending Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 2010 Total

Operating ActivitiesNet Income 24,269.54$ 24,269.54$ 31,995.68$ 39,721.83$ 33,104.47$ 42,375.84$ 362,350.36$ Accounts Payables 40,471.27$ 40,471.27$ 47,216.48$ 53,961.69$ 67,452.11$ 80,942.53$ 674,521.09$ Working Capital 9,765.66$ 9,765.66$ 9,765.66$ 9,765.66$ 9,765.66$ 9,765.66$ 117,187.96$ Operating Activities Net Flow 74,506.47$ 74,506.47$ 88,977.82$ 103,449.18$ 110,322.24$ 133,084.04$ 1,154,059.41$

Investing ActivitiesPurchase of Building and Land -$ -$ -$ -$ -$ -$ -$ Purchase of Equipment -$ -$ -$ -$ -$ -$ -$ Investment Vehicles 4,853.91$ 4,853.91$ 6,399.14$ 7,944.37$ 6,620.89$ 8,475.17$ 72,470.07$ Investing Activities Net Flow 4,853.91$ 4,853.91$ 6,399.14$ 7,944.37$ 6,620.89$ 8,475.17$ 72,470.07$

Financing ActivitiesLong Term Loan Payments (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (233,159.67)$ Loan Award -$ -$ -$ -$ -$ -$ -$ Financing Activities Net Flow (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (19,429.97)$ (233,159.67)$

Net Cash Flow 59,930.40$ 59,930.40$ 75,946.99$ 91,963.57$ 97,513.17$ 122,129.24$ 993,369.81$

Concept Creative Hospitality GroupStatement of Cash FlowsFor The Period Ending Q1 2011 Q2 2011 Q3 2011 Q4 2011 2011 Total

Operating ActivitiesNet Income 64,522.65$ 59,743.19$ 50,184.28$ 64,522.65$ 238,972.78$ Accounts Payables 191,226.73$ 177,061.79$ 148,731.90$ 191,226.73$ 708,247.15$ Working Capital 25,809.06$ 23,897.28$ 20,073.71$ 25,809.06$ 95,589.11$ Operating Activities Net Flow 281,558.44$ 260,702.26$ 218,989.90$ 281,558.44$ 1,042,809.04$

Investing ActivitiesPurchase of Building and Land -$ -$ -$ -$ -$ Purchase of Equipment -$ -$ -$ -$ -$ Investment Vehicles 12,904.53$ 11,948.64$ 10,036.86$ 12,904.53$ 47,794.56$ Investing Activities Net Flow 12,904.53$ 11,948.64$ 10,036.86$ 12,904.53$ 47,794.56$

Financing ActivitiesLong Term Loan PaymentsLoan Award -$ -$ -$ -$ -$ Financing Activities Net Flow -$ -$ -$ -$ -$

Net Cash Flow 294,462.97$ 272,650.90$ 229,026.75$ 294,462.97$ 1,090,603.59$

Concept Creative Hospitality GroupStatement of Cash FlowsFor The Period Ending Q1 2012 Q2 2012 Q3 2012 Q4 2012 2012 Total

Operating ActivitiesNet Income 88,070.85$ 75,023.32$ 75,023.32$ 88,070.85$ 326,188.33$ Accounts Payables 200,788.07$ 171,041.69$ 171,041.69$ 200,788.07$ 743,659.50$ Working Capital 35,228.34$ 30,009.33$ 30,009.33$ 35,228.34$ 130,475.33$ Operating Activities Net Flow 324,087.26$ 276,074.33$ 276,074.33$ 324,087.26$ 1,200,323.17$

Investing ActivitiesPurchase of Building and Land -$ -$ -$ -$ -$ Purchase of Equipment -$ -$ -$ -$ -$ Investment Vehicles 17,614.17$ 15,004.66$ 15,004.66$ 17,614.17$ 65,237.67$ Investing Activities Net Flow 17,614.17$ 15,004.66$ 15,004.66$ 17,614.17$ 65,237.67$

Financing ActivitiesLong Term Loan PaymentsLoan Award -$ -$ -$ -$ -$ Financing Activities Net Flow -$ -$ -$ -$ -$

Net Cash Flow 341,701.43$ 291,078.99$ 291,078.99$ 341,701.43$ 1,265,560.83$

Appendix A- 2.0 Statement of Cash Flows

Concept Creative Hospitality GroupPro Forma Income StatementFor the Month Ending Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Year End Total

SalesFood Sales $0.00 $0.00 $0.00 $0.00 17,648.82$ 100,009.98$ 117,658.80$ Beverage Sales $0.00 $0.00 $0.00 $0.00 20,800.40$ 117,868.91$ 138,669.30$ Monthly Contribution to Sales 0% 0% 0% 0% 15% 85% 100.00%Rental Bookings $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 -$ Monthly Contribution to Sales 0% 0% 0% 0% 0% 0% -$ FTO Membership Sales $0.00 $0.00 $0.00 $0.00 3,675.00$ 20,825.00$ 24,500.00$ Ad Space $0.00 $0.00 $0.00 $0.00 150.00$ 850.00$ 1,000.00$ Monthly Contribution to Sales 0% 0% 0% 0% 15% 85% 100.00%Total Sales $0.00 $0.00 $0.00 $0.00 42,274.22$ 239,553.89$ 281,828.10$

Cost of SalesFood Cost $0.00 $0.00 $0.00 $0.00 5,294.65$ 30,002.99$ 35,297.64$ Beverage Cost $0.00 $0.00 $0.00 $0.00 4,160.08$ 23,573.78$ 27,733.86$ Sales Tax Payable $0.00 $0.00 $0.00 $0.00 3,170.57$ 17,966.54$ 21,137.11$ Total Cost of Sales $0.00 $0.00 $0.00 $0.00 12,625.29$ 71,543.32$ 84,168.61$

Gross Profit on Sales $0.00 $0.00 $0.00 $0.00 29,648.92$ 168,010.57$ 197,659.49$ Gross Profit Margin 0.00% 0.00% 0.00% 0.00% 70.13% 70.13% 70.13%

Operating ExpensesPayroll Costs -$ -$ -$ -$ 10,568.55$ 59,888.47$ 70,457.03$ Employee Benefits -$ -$ -$ -$ 2,113.71$ 11,977.69$ 14,091.41$ Notes Payable 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 116,579.83$ Utilities -$ -$ -$ -$ 1,690.97$ 9,582.16$ 11,273.12$ Telephone 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 2,500.00$ Linens -$ -$ -$ -$ 250.00$ 250.00$ 500.00$ Carting and Disposal Fees -$ -$ -$ -$ 833.33$ 833.33$ 1,666.67$ Professional Fees 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 6,000.00$ Paper Costs 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 2,500.00$ China and Glass -$ -$ -$ -$ 3,000.00$ 2,000.00$ 5,000.00$ Repairs and Maintenance -$ -$ -$ -$ 1,000.00$ 1,000.00$ 2,000.00$ Insurance -$ -$ -$ -$ 1,268.23$ 7,186.62$ 8,454.84$ Cleaning Supplies -$ -$ -$ -$ 500.00$ 500.00$ 1,000.00$ Depreciation Expense 15,055.56$ 15,055.56$ 15,055.56$ 15,055.56$ 15,055.56$ 15,055.56$ 90,333.33$ Marketing 4,000.00$ 4,000.00$ 7,000.00$ 7,000.00$ 8,000.00$ 10,000.00$ 40,000.00$ Credit Card Fees -$ -$ -$ -$ 1,056.86$ 5,988.85$ 7,045.70$

Total Operating Expenses 40,318.86$ 40,318.86$ 43,318.86$ 43,318.86$ 66,600.51$ 145,525.98$ 379,401.93$

Earned Income Before Taxes ($40,318.86) ($40,318.86) ($43,318.86) ($43,318.86) ($36,951.59) $22,484.59 (181,742.44)$ Income Tax PayableNet Income ($40,318.86) ($40,318.86) ($43,318.86) ($43,318.86) ($36,951.59) $22,484.59 (181,742.44)$

Appendix A: 3.0 Income Statementhly- Monthly

Concept Creative Hospitality GroupPro Forma Income StatementFor the Month Ending

SalesFood SalesBeverage SalesMonthly Contribution to SalesRental BookingsMonthly Contribution to SalesFTO Membership SalesAd SpaceMonthly Contribution to SalesTotal Sales

Cost of SalesFood CostBeverage CostSales Tax PayableTotal Cost of Sales

Gross Profit on SalesGross Profit Margin

Operating ExpensesPayroll CostsEmployee BenefitsNotes PayableUtilitiesTelephoneLinensCarting and Disposal FeesProfessional FeesPaper CostsChina and GlassRepairs and MaintenanceInsuranceCleaning SuppliesDepreciation ExpenseMarketingCredit Card Fees

Total Operating Expenses

Earned Income Before TaxesIncome Tax PayableNet Income

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10

154,118.62$ 154,118.62$ 89,902.53$ 89,902.53$ 89,902.53$ 77,059.31$ 173,534.72$ 173,534.72$ 101,228.59$ 101,228.59$ 101,228.59$ 86,767.36$

12% 12% 7% 7% 7% 6%5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 10,000.00$ 20,000.00$

5% 5% 5% 5% 10% 20%24,500.00$ 24,500.00$ 24,500.00$ 24,500.00$ 24,500.00$ 24,500.00$

208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 8.3333% 8.3333% 8.3333% 8.3333% 8.3333% 8.3333%

352,361.68$ 352,361.68$ 215,839.45$ 215,839.45$ 215,839.45$ 188,535.01$

46,235.59$ 46,235.59$ 26,970.76$ 26,970.76$ 26,970.76$ 23,117.79$ 34,706.94$ 34,706.94$ 20,245.72$ 20,245.72$ 20,245.72$ 17,353.47$ 26,427.13$ 26,427.13$ 16,187.96$ 16,187.96$ 16,187.96$ 14,140.13$

107,369.66$ 107,369.66$ 63,404.44$ 63,404.44$ 63,404.44$ 54,611.39$

244,992.02$ 244,992.02$ 152,435.02$ 152,435.02$ 152,435.02$ 133,923.61$ 69.53% 69.53% 70.62% 70.62% 70.62% 71.03%

88,090.42$ 88,090.42$ 53,959.86$ 53,959.86$ 53,959.86$ 47,133.75$ 17,618.08$ 17,618.08$ 10,791.97$ 10,791.97$ 10,791.97$ 9,426.75$ 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 14,094.47$ 14,094.47$ 8,633.58$ 8,633.58$ 8,633.58$ 7,541.40$

208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 250.00$ 250.00$ 250.00$ 250.00$ 250.00$ 250.00$ 833.33$ 833.33$ 833.33$ 833.33$ 833.33$ 833.33$

1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ 100.00$

1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 10,570.85$ 10,570.85$ 6,475.18$ 6,475.18$ 6,475.18$ 5,656.05$

666.67$ 666.67$ 666.67$ 666.67$ 666.67$ 666.67$ 7,527.78$ 7,527.78$ 7,527.78$ 7,527.78$ 7,527.78$ 7,527.78$ 3,750.00$ 3,750.00$ 3,750.00$ 3,750.00$ 3,750.00$ 3,750.00$ 8,809.04$ 8,809.04$ 5,395.99$ 5,395.99$ 5,395.99$ 4,713.38$

174,365.61$ 174,365.61$ 120,439.33$ 120,439.33$ 120,439.33$ 109,654.08$

$70,626.41 $70,626.41 $31,995.68 $31,995.68 $31,995.68 $24,269.5428,250.56$ 28,250.56$ 12,798.27$ 12,798.27$ 12,798.27$

$42,375.84 $42,375.84 $19,197.41 $19,197.41 $19,197.41 $24,269.54


Concept Creative Hospitality GroupPro Forma Income StatementFor the Month Ending

SalesFood SalesBeverage SalesMonthly Contribution to SalesRental BookingsMonthly Contribution to SalesFTO Membership SalesAd SpaceMonthly Contribution to SalesTotal Sales

Cost of SalesFood CostBeverage CostSales Tax PayableTotal Cost of Sales





Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Year End Total

77,059.31$ 77,059.31$ 89,902.53$ 102,745.75$ 128,432.18$ 154,118.62$ 1,284,321.84$ 86,767.36$ 86,767.36$ 101,228.59$ 115,689.82$ 144,612.27$ 173,534.72$ 1,446,122.70$

6% 6% 7% 8% 10% 12% 100.00%10,000.00$ 5,000.00$ 5,000.00$ 20,000.00$ 5,000.00$ 5,000.00$ 100,000.00$

10% 5% 5% 20% 5% 5% 100.00%24,500.00$ 24,500.00$ 24,500.00$ 24,500.00$ 24,500.00$ 24,500.00$ 25,000.00$

208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 2,500.00$ 8.3333% 8.3333% 8.3333% 8.3333% 8.3333% 8.3333% 100.00%

188,535.01$ 188,535.01$ 215,839.45$ 243,143.90$ 297,752.79$ 352,361.68$ 3,026,944.54$

23,117.79$ 23,117.79$ 26,970.76$ 30,823.72$ 38,529.66$ 46,235.59$ 385,296.55$ 17,353.47$ 17,353.47$ 20,245.72$ 23,137.96$ 28,922.45$ 34,706.94$ 289,224.54$ 14,140.13$ 14,140.13$ 16,187.96$ 18,235.79$ 22,331.46$ 26,427.13$ 227,020.84$ 54,611.39$ 54,611.39$ 63,404.44$ 72,197.48$ 89,783.57$ 107,369.66$ 901,541.93$

133,923.61$ 133,923.61$ 152,435.02$ 170,946.42$ 207,969.22$ 244,992.02$ 2,125,402.61$ 71.03% 71.03% 70.62% 70.31% 69.85% 69.53% 70.36%

47,133.75$ 47,133.75$ 53,959.86$ 60,785.97$ 74,438.20$ 88,090.42$ 756,736.14$ 9,426.75$ 9,426.75$ 10,791.97$ 12,157.19$ 14,887.64$ 17,618.08$ 151,347.23$

19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 19,429.97$ 233,159.67$ 7,541.40$ 7,541.40$ 8,633.58$ 9,725.76$ 11,910.11$ 14,094.47$ 121,077.78$

208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 208.33$ 2,500.00$ 250.00$ 250.00$ 250.00$ 250.00$ 250.00$ 250.00$ 3,000.00$ 833.33$ 833.33$ 833.33$ 833.33$ 833.33$ 833.33$ 10,000.00$

1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 12,000.00$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 416.67$ 5,000.00$ 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ 1,200.00$

1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 1,000.00$ 12,000.00$ 5,656.05$ 5,656.05$ 6,475.18$ 7,294.32$ 8,932.58$ 10,570.85$ 90,808.34$

666.67$ 666.67$ 666.67$ 666.67$ 666.67$ 666.67$ 8,000.00$ 7,527.78$ 7,527.78$ 7,527.78$ 7,527.78$ 7,527.78$ 7,527.78$ 90,333.33$ 3,750.00$ 3,750.00$ 3,750.00$ 3,750.00$ 3,750.00$ 3,750.00$ 45,000.00$ 4,713.38$ 4,713.38$ 5,395.99$ 6,078.60$ 7,443.82$ 8,809.04$ 75,673.61$

109,654.08$ 109,654.08$ 120,439.33$ 131,224.59$ 152,795.10$ 174,365.61$ 1,617,836.09$

$24,269.54 $24,269.54 $31,995.68 $39,721.83 55,174.12$ 70,626.41$ 507,566.51$ 22,069.65$ 28,250.56$ 145,216.16$

$24,269.54 $24,269.54 $31,995.68 $39,721.83 33,104.47$ 42,375.84$ 362,350.36$


Concept Creative Hospitality GroupPro Forma Income StatementFor the Quarter Ending 2010 Total Q1 2011 Q2 2011 Q3 2011 Q4 2011 2011 Total

5.00% 27.00% 25.00% 21.00% 27.00% 100.00%Annual F&B Sales

GrowthContribution to

Total SalesContribution to

Total SalesContribution to Total

SalesContribution to

Total SalesContribution to Total

SalesSalesFood Sales 1,284,321.84$ 364,105.24$ 337,134.48$ 283,192.97$ 364,105.24$ 1,348,537.93$ Beverage Sales 1,446,122.70$ 409,975.79$ 379,607.21$ 318,870.06$ 409,975.79$ 1,518,428.84$ Rental Bookings 100,000.00$ 31,590.00$ 29,250.00$ 24,570.00$ 31,590.00$ 117,000.00$ FTO Membership Sales 25,000.00$ 11,812.50$ 10,937.50$ 9,187.50$ 11,812.50$ 43,750.00$ Ad Space 2,500.00$ 1,350.00$ 1,250.00$ 1,050.00$ 1,350.00$ 5,000.00$ Total Sales 3,026,944.54$ 818,833.53$ 758,179.19$ 636,870.52$ 818,833.53$ 3,032,716.77$

Cost of SalesFood Cost 385,296.55$ 109,231.57$ 101,140.34$ 84,957.89$ 109,231.57$ 404,561.38$ Beverage Cost 289,224.54$ 81,995.16$ 75,921.44$ 63,774.01$ 81,995.16$ 303,685.77$ Sales Taxes Payable 227,020.84$ 61,412.51$ 56,863.44$ 47,765.29$ 61,412.51$ 227,453.76$ Total Cost of Sales 901,541.93$ 252,639.24$ 233,925.23$ 196,497.19$ 252,639.24$ 935,700.90$

Gross Profit on Sales 2,125,402.61$ 566,194.28$ 524,253.97$ 440,373.33$ 566,194.28$ 2,097,015.86$ Gross Profit Margin 70.36% 18.67% 17.29% 14.52% 18.67% 69.15%

Operating ExpensesPayroll Costs 756,736.14$ 204,708.38$ 189,544.80$ 159,217.63$ 204,708.38$ 758,179.19$ Employee Benefits 151,347.23$ 40,941.68$ 37,908.96$ 31,843.53$ 40,941.68$ 151,635.84$ Notes Payable 233,159.67$ 64,606.33$ 59,820.68$ 50,249.37$ 64,606.33$ 239,282.70$ Utilities 121,077.78$ 32,753.34$ 30,327.17$ 25,474.82$ 32,753.34$ 121,308.67$ Telephone 2,500.00$ 708.75$ 656.25$ 551.25$ 708.75$ 2,625.00$ Linens 3,000.00$ 850.50$ 787.50$ 661.50$ 850.50$ 3,150.00$ Carting and Disposal Fees 10,000.00$ 2,835.00$ 2,625.00$ 2,205.00$ 2,835.00$ 10,500.00$ Professional Fees 12,000.00$ 3,402.00$ 3,150.00$ 2,646.00$ 3,402.00$ 12,600.00$ Paper Costs 5,000.00$ 1,417.50$ 1,312.50$ 1,102.50$ 1,417.50$ 5,250.00$ China and Glass 1,200.00$ 340.20$ 315.00$ 264.60$ 340.20$ 1,260.00$ Repairs and Maintenance 12,000.00$ 3,402.00$ 3,150.00$ 2,646.00$ 3,402.00$ 12,600.00$ Insurance 90,808.34$ 24,565.01$ 22,745.38$ 19,106.12$ 24,565.01$ 90,981.50$ Cleaning Supplies 8,000.00$ 2,268.00$ 2,100.00$ 1,764.00$ 2,268.00$ 8,400.00$ Depreciation Expense 90,333.33$ 24,390.00$ 22,583.33$ 18,970.00$ 24,390.00$ 90,333.33$ Marketing 45,000.00$ 12,757.50$ 11,812.50$ 9,922.50$ 12,757.50$ 47,250.00$ Credit Card Fees 75,673.61$ 20,470.84$ 18,954.48$ 15,921.76$ 20,470.84$ 75,817.92$

Total Operating Expenses 1,617,836.09$ 458,656.53$ 424,681.97$ 356,732.86$ 458,656.53$ 1,698,727.90$

Earned Income Before Taxes 507,566.51$ 107,537.75$ 99,571.99$ 83,640.47$ 107,537.75$ 398,287.96$ Income Tax Payable 145,216.16$ 43,015.10$ 39,828.80$ 33,456.19$ 43,015.10$ 159,315.19$ Net Income 362,350.36$ 64,522.65$ 59,743.19$ 50,184.28$ 64,522.65$ 238,972.78$

Appendix A: 4.0 Income Statement- Quarterly

Concept Creative Hospitality GroupPro Forma Income StatementFor the Quarter Ending

SalesFood SalesBeverage SalesRental BookingsFTO Membership SalesAd SpaceTotal Sales

Cost of SalesFood CostBeverage CostSales Taxes PayableTotal Cost of Sales





Q1 2012 Q2 2012 Q3 2012 Q4 2012 2012 Total 27.00% 23.00% 23.00% 27.00% 100.00%

Contribution to Total Sales





382,310.50$ 325,671.91$ 325,671.91$ 382,310.50$ 1,415,964.83$ 430,474.57$ 366,700.56$ 366,700.56$ 430,474.57$ 1,594,350.28$

47,385.00$ 40,365.00$ 40,365.00$ 47,385.00$ 175,500.00$ 16,875.00$ 14,375.00$ 14,375.00$ 16,875.00$ 62,500.00$

2,025.00$ 1,725.00$ 1,725.00$ 2,025.00$ 7,500.00$ 879,070.08$ 748,837.47$ 748,837.47$ 879,070.08$ 3,255,815.11$

114,693.15$ 97,701.57$ 97,701.57$ 114,693.15$ 424,789.45$ 86,094.91$ 73,340.11$ 73,340.11$ 86,094.91$ 318,870.06$ 65,930.26$ 56,162.81$ 56,162.81$ 65,930.26$ 244,186.13$

266,718.32$ 227,204.50$ 227,204.50$ 266,718.32$ 987,845.64$

612,351.76$ 521,632.98$ 521,632.98$ 612,351.76$ 2,267,969.47$ 18.81% 16.02% 16.02% 18.81% 69.66%

219,767.52$ 187,209.37$ 187,209.37$ 219,767.52$ 813,953.78$ 43,953.50$ 37,441.87$ 37,441.87$ 43,953.50$ 162,790.76$ 64,606.33$ 55,035.02$ 55,035.02$ 64,606.33$ 239,282.70$ 35,162.80$ 29,953.50$ 29,953.50$ 35,162.80$ 130,232.60$

744.19$ 633.94$ 633.94$ 744.19$ 2,756.25$ 850.50$ 724.50$ 724.50$ 850.50$ 3,150.00$

2,976.75$ 2,535.75$ 2,535.75$ 2,976.75$ 11,025.00$ 3,572.10$ 3,042.90$ 3,042.90$ 3,572.10$ 13,230.00$ 1,488.38$ 1,267.88$ 1,267.88$ 1,488.38$ 5,512.50$

357.21$ 304.29$ 304.29$ 357.21$ 1,323.00$ 3,572.10$ 3,042.90$ 3,042.90$ 3,572.10$ 13,230.00$

26,372.10$ 22,465.12$ 22,465.12$ 26,372.10$ 97,674.45$ 2,381.40$ 2,028.60$ 2,028.60$ 2,381.40$ 8,820.00$

24,390.00$ 20,776.67$ 20,776.67$ 24,390.00$ 90,333.33$ 13,395.38$ 11,410.88$ 11,410.88$ 13,395.38$ 49,612.50$ 21,976.75$ 18,720.94$ 18,720.94$ 21,976.75$ 81,395.38$

465,567.01$ 396,594.12$ 396,594.12$ 465,567.01$ 1,724,322.25$

146,784.75$ 125,038.86$ 125,038.86$ 146,784.75$ 543,647.22$ 58,713.90$ 50,015.54$ 50,015.54$ 58,713.90$ 217,458.89$ 88,070.85$ 75,023.32$ 75,023.32$ 88,070.85$ 326,188.33$

Appendix A: 4.0 Income Statement- Quarterly

Concept Creative Hospitality GroupBalance Sheet as of December 31 2010 2011 2012

AssetsCurrent Assets:Cash 362,350.36$ 238,972.78$ 326,188.33$ Food and Beverage Inventory 674,521.09$ 708,247.15$ 743,659.50$ Prepaid Insurance Expense 90,808.34$ 90,981.50$ 97,674.45$ Accumlated Depreciation Expense 90,333.33$ 180,666.67$ 271,000.00$

Total Current Assets 1,218,013.12$ 1,218,868.09$ 1,438,522.29$ Fixed Assets:Building and Land 1,100,000.00$ 1,100,000.00$ 1,100,000.00$ Furniture and Fixtures 450,000.00$ 450,000.00$ 450,000.00$ Less: Accumulated Depreciation 80,000.00$ 160,000.00$ 240,000.00$

Equipment 83,500.00$ 83,500.00$ 83,500.00$ Less: Accumulated Depreciation 10,333.33$ 20,666.67$ 31,000.00$

Total Fixed Assets 1,543,166.67$ 1,452,833.33$ 1,362,500.00$

Total Assets 2,761,179.78$ 2,671,701.43$ 2,801,022.29$

Liabilities and EquityCurrent Liabilities:Accounts Payable 80,942.53$ 63,742.24$ 66,929.36$ Sales Taxes Payable 26,427.13$ 20,470.84$ 21,976.75$ Accrued Wages Payable 44,045.21$ 68,236.13$ 73,255.84$ Short-Term Notes Payable 233,159.67$ 239,282.70$ 239,282.70$

Total Current Liabilities 384,574.53$ 391,731.91$ 401,444.65$

Long-Term Liabilities:Long-Term Notes Payable

Total Long-Term Liabilities 1,749,777.58$ 1,769,540.41$ 1,783,809.32$

Total Liabilities 2,134,352.11$ 2,161,272.32$ 2,185,253.97$

Shareholder's EquityCommon Stock 501,462.14$ 336,076.62$ 348,081.32$ Retained Earnings 125,365.53$ 174,352.49$ 267,687.00$ Total Shareholder's Equity 626,827.67$ 510,429.11$ 615,768.32$

Liabilities + Equity 2,761,179.78$ 2,671,701.43$ 2,801,022.29$

Appendix A: 5.0 Balance Sheet

2010

Private Investors 942,187.96$ Government Grants 1,749,777.64$ Total StartUp 2,691,965.60$ Profit After Taxes 362,350.36$ Depreciation 90,333.33$ Total Funds Provided 3,144,649.29$

Construction Costs 750,000.00$ Décor Costs 450,000.00$ Restaurant Equipment 75,000.00$ Office Equipment 8,500.00$ Décor 450,000.00$ Opening Costs 1,652,255.51$ Inventory for 1 month 56,210.09$ Loan Repayment 50,489.00$ Funds Expended 2,742,454.60$ Working Capital 402,194.69$

Total F&B Sales 3,026,944.54$

Cost of Sales Fixed VariableFood 385,296.55$ Beverage 289,224.54$ Total Cost of Sales 674,521.09$

Operating ExpensesPAYROLL COST 756,736.14$ 756,736.14$ EMPLOYEE BENEFITS 151,347.23$ 151,347.23$ NOTES PAYABLE 233,159.67$ 233,159.67$ UTILITIES 121,077.78$ 121,077.78$ TELEPHONE 2,500.00$ 2,500.00$ LINEN 3,000.00$ 3,000.00$ CARTING 10,000.00$ 10,000.00$ PROFESSIONAL FEES 12,000.00$ 12,000.00$ PAPER COSTS 5,000.00$ 5,000.00$ CHINA AND GLASS 1,200.00$ 1,200.00$ REPAIRS AND MANTENANCE 12,000.00$ 12,000.00$ INSURANCE 90,808.34$ 90,808.34$ CLEANING SUPPLES 8,000.00$ 8,000.00$ DEPRECIATION EXPENSE 90,333.33$ 90,333.33$ MARKETING 45,000.00$ 45,000.00$ CREDIT CARD FEES 75,673.61$ 75,673.61$


Total Fixed Costs

Total Variable Costs

1,617,836.09$ 861,099.96$ 756,736.14$

Variable Rate 22.28%Contribution Rate 77.72%Break Even Amount 1,108,007.07$

Concept Creative Hospitality Group

Concept Creative Hospitality GroupBreak-Even Analysis

First Full Fiscal Year- 2010

Source of Funds

Application of Funds

Fund Usage Analysis

Appendix A: 6.0 Fund Usage Analysis

Appendix B: Facility and Location

1 115 W Bloxham St

This copyrighted report contains research licensed to Commercial Consultants Corporation - 450494. 1/15/2009

Page 1

Location:

Stories:

Total Avail:

Status:

Developer:Management:

Recorded Owner: T2K Fregly--

3

Built 1973

Downtown Tallahassee ClusterDowntown Tallahassee SubmarketLeon CountyTallahassee, FL 32301

15,000 SF

Building Type: Class C Office

% Leased: 0%

RBA: 15,000 SFTypical Floor: 5,000 SF

21-36-30-000-034.0Parcel Number:

Floor OccupancyRent/SF/Yr + Svs TermBldg ContigFloor ContigSF Avail Type

5,000 Vacant$8.00/nnn5,000 15,000 3-5 yrsE 1st Direct

5,000 Vacant$8.00/nnn5,000 15,000 NegotiableE 2nd Direct

5,000 Vacant$8.00/nnn5,000 15,000 NegotiableE 3rd Direct

115 W Bloxham St

This copyrighted report contains research licensed to Commercial Consultants Corporation - 450494.1/15/2009

Page 2

$8.00

0%

15,000 SF

5,000 SF

15,000 SF

C

Class C Office

Rent/SF/Yr:

% Leased:

Total Available:

Typical Floor:

RBA:

Class:

Building Type:

2008 Annual Spending (in Thousands)

1 Mile 3 Mile 5 Mile

Total Specified Consumer Spending $161,425 $1,367,670 $2,463,568

Total Apparel $17,773 $132,456 $237,984

Women's Apparel 6,676 41,026 70,417

Men's Apparel 4,047 27,445 47,830

Girl's Apparel 413 6,286 12,557

Boy's Apparel 356 5,211 10,305

Infant Apparel 220 2,746 5,333

Footwear (excl. Infants) 2,150 14,759 25,866

Other Apparel Prod/Services 3,912 34,984 65,676

Total Entertainment $18,168 $137,932 $260,589

Sports and Recreation 3,766 29,173 58,851

TV, Radio and Sound Equipment 8,756 61,889 109,809

Reading Materials 1,749 13,799 25,778

Travel 3,818 32,125 64,265

Photographic Equipment 80 947 1,886

Total Food At Home $8,908 $102,033 $185,343

Cereal Products 770 8,355 14,908

Bread & Bakery Products 1,164 13,474 24,948

Fish and Seafood 433 4,893 8,822

Meats (All) 3,238 37,605 67,023

Dairy Products 1,502 16,774 31,236

Fruits and Vegetables 1,801 20,932 38,405

Total Food Away From Home $15,647 $132,766 $237,408

Breakfast and Brunch 1,618 14,064 25,086

Dinner 5,055 45,565 83,210

Lunch 5,435 46,731 83,212

Snacks and Non Alcoholic Bev 3,366 24,386 42,054

Catered Affairs 173 2,020 3,846

Consumer Spending Report

115 W Bloxham St, Tallahassee, FL 32301


Page 3

Consumer Spending Report


Annual Spending (in Thousands) 1 Mile 3 Mile 5 Mile

Total Alcoholic Beverages $6,124 $46,121 $81,991

Alcoholic Bev. at Home 4,260 31,129 54,805

Alcoholic Bev. away from Home 1,864 14,993 27,186

Total Furniture/Appliances $4,754 $50,911 $101,579

Bedroom Furniture 506 5,627 10,769

Living Room Furniture 678 7,832 15,572

Other Living & Family Room Furniture

189 1,969 3,922

Other Furniture 534 5,490 10,619

Major Appliances 654 7,449 14,661

Small Appliances 1,243 11,878 24,470

Misc Household Equipment 949 10,666 21,565

Total Transportation/Maint. $48,634 $524,036 $946,706

New Autos/Trucks/Vans 7,398 82,819 154,868

Used Vehicles 6,717 68,186 116,529

Boats and Outboard Motor, Etc. 726 3,818 7,309

Gasoline 6,147 73,230 132,418

Diesel Fuel 21 370 716

Automotive Maintenance/Repair 5,947 60,584 110,109

Transportation 21,678 235,028 424,757

Total Health Care $10,381 $113,323 $214,268

Medical Services 4,305 48,032 92,717

Prescription Drugs 5,773 62,099 115,172

Medical Supplies 304 3,192 6,379

Total Education/Day Care $58,509 $215,429 $314,732

Education 29,193 106,286 153,991

Room and Board 3,453 6,644 8,011

Tuition/School Supplies 25,740 99,642 145,980

Day Care, Nursery & Preschool 123 2,858 6,750


Page 4

$8.00

0%

15,000 SF

5,000 SF

15,000 SF

C

Class C Office

Rent/SF/Yr:

% Leased:

Total Available:

Typical Floor:

RBA:

Class:

Building Type:

Business Employment by Type # of Businesses # Employees #Emp/Bus

Total Businesses 1,744 46,075 26

Total Retail 188 2,628 14

Home Improvement Stores 8 81 10

General Merchandise Stores 3 36 12

Food Stores 11 113 10

Auto Dealers and Gas Stations 18 97 5

Apparel and Accessory Stores 16 71 4

Furniture and Home Furnishings 14 92 7

Eating and Drinking Places 80 1,741 22

Miscellaneous Retail Stores 38 397 10

Finance-Insurance-Real Estate 134 927 7

Banks, Saving and Lending Inst. 27 259 10

Security Brokers and Investments 10 119 12

Insurance Carriers and Agencies 36 171 5

Real Estate-Trust-Holding Co. 61 378 6

Services 835 13,415 16

Hotels and Lodging 9 336 37

Personal Services 59 271 5

Business Services 77 644 8

Motion Picture and Amusement 16 1,037 65

Health Services 28 548 20

Legal Services 151 1,804 12

Educational Services 27 4,377 162

Social Services 208 2,518 12

Other Services 260 1,880 7

Agriculture/Mining 3 22 7

Construction 46 805 18

Manufacturing 46 475 10

Transportation, Comm./Pub Util. 31 556 18

Wholesale Trade 24 254 11

Government 437 26,993 62

Daytime Population 46,075

Daytime Population/Business 26

Residential Population 10,792

Residential Population/Business 6

Daytime Employment Report 1 Mile Radius



Page 5

$8.00

0%

15,000 SF

5,000 SF

15,000 SF

C

Class C Office

Rent/SF/Yr:

% Leased:

Total Available:

Typical Floor:

RBA:

Class:

Building Type:

Radius 1 Mile 3 Mile 5 Mile

Population

2013 Projection 10,907 89,724 156,386

2008 Estimate 10,792 86,908 149,732

2000 Census 11,088 83,952 140,195

Growth 2008 - 2013 1.07% 3.24% 4.44%

Growth 2000 - 2008 -2.67% 3.52% 6.80%

2008 Population by Hispanic Origin 584 4,606 7,429

2008 Population By Race 10,792 86,908 149,732

White 5,628 52.15% 42,621 49.04% 79,479 53.08%

Black or African American 4,638 42.98% 38,369 44.15% 60,422 40.35%

American Indian and Alaska Native 32 0.30% 229 0.26% 414 0.28%

Asian 207 1.92% 2,691 3.10% 4,264 2.85%

Native Hawaiian and Pacific Islander 7 0.06% 70 0.08% 102 0.07%

Other Race 89 0.82% 1,151 1.32% 1,785 1.19%

Two or More Races 190 1.76% 1,778 2.05% 3,265 2.18%

Households

2013 Projection 4,317 42,726 73,712

2008 Estimate 3,960 39,748 67,905

2000 Census 3,389 35,735 59,304

Growth 2008 - 2013 9.02% 7.49% 8.55%

Growth 2000 - 2008 16.82% 11.23% 14.50%

Owner Occupied 794 20.05% 13,088 32.93% 27,807 40.95%

Renter Occupied 3,166 79.95% 26,660 67.07% 40,098 59.05%

2008 Households by HH Income 3,960 39,748 67,905

Income Less Than $15,000 1,807 45.63% 13,485 33.93% 18,192 26.79%

Income: $15,000 - $24,999 538 13.59% 6,362 16.01% 10,340 15.23%

Income: $25,000 - $34,999 473 11.94% 5,353 13.47% 9,048 13.32%

Income: $35,000 - $49,999 491 12.40% 5,332 13.41% 10,073 14.83%

Income: $50,000 - $74,999 333 8.41% 4,718 11.87% 10,123 14.91%

Income: $75,000 - $99,999 118 2.98% 2,134 5.37% 4,805 7.08%

Income: $100,000 - $149,999 124 3.13% 1,553 3.91% 3,395 5.00%

Income: $150,000 - $249,999 62 1.57% 547 1.38% 1,246 1.83%

Income: $250,000 - $499,999 13 0.33% 181 0.46% 474 0.70%

Income: $500,000 or more 1 0.03% 83 0.21% 209 0.31%

2008 Avg Household Income $30,334 $37,368 $44,398

2008 Med Household Income $18,216 $25,050 $30,991

2008 Per Capita Income $12,338 $17,382 $20,620

Demographic Summary Report



Page 6

$8.00

0%

15,000 SF

5,000 SF

15,000 SF

C

Class C Office

Rent/SF/Yr:

% Leased:

Total Available:

Typical Floor:

RBA:

Class:

Building Type:

Description 2000 Census 2008 Estimate 2013 ProjectionPopulation 11,088 10,792 10,907

Age 0 - 4 223 2.01% 272 2.52% 286 2.62%

Age 5 - 9 171 1.54% 245 2.27% 281 2.58%

Age 10 - 14 165 1.49% 209 1.94% 255 2.34%

Age 15 - 17 118 1.06% 77 0.71% 72 0.66%

Age 18 - 20 5,232 47.19% 4,189 38.82% 3,904 35.79%

Age 21 - 24 1,985 17.90% 1,775 16.45% 1,525 13.98%

Age 25 - 34 1,148 10.35% 1,389 12.87% 1,534 14.06%

Age 35 - 44 672 6.06% 864 8.01% 1,082 9.92%

Age 45 - 49 296 2.67% 346 3.21% 370 3.39%

Age 50 - 54 247 2.23% 327 3.03% 336 3.08%

Age 55 - 59 138 1.24% 307 2.84% 321 2.94%

Age 60 - 64 136 1.23% 231 2.14% 314 2.88%

Age 65 - 74 223 2.01% 254 2.35% 333 3.05%

Age 75 - 84 223 2.01% 190 1.76% 175 1.60%

Age 85 and over 111 1.00% 116 1.07% 120 1.10%

Age 16 and over 10,503 94.72% 10,049 93.12% 10,071 92.34%

Age 18 and over 10,411 93.89% 9,989 92.56% 10,014 91.81%

Age 21 and over 5,179 46.71% 5,799 53.73% 6,110 56.02%

Age 65 and over 557 5.02% 559 5.18% 628 5.76%

Median Age 21 22 23

Average Age 27 29 30

Population By Race 11,088 10,792 10,907

White 5,983 53.96% 5,628 52.15% 5,621 51.54%

Black or African American 4,657 42.00% 4,638 42.98% 4,708 43.16%

American Indian and Alaska Native 29 0.26% 32 0.30% 32 0.29%

Asian 165 1.49% 207 1.92% 230 2.11%

Native Hawaiian and Pacific Islander 5 0.05% 7 0.06% 7 0.06%

Other Race 91 0.82% 89 0.82% 95 0.87%

Two or More Races 159 1.43% 190 1.76% 215 1.97%

Demographic Trend Report 1 Mile Radius



Page 7

Demographic Trend Report 1 Mile Radius


Description 2000 Census 2008 Estimate 2013 ProjectionPopulation by Race (Hispanic or Latino)

513 584 645

White 341 66.47% 398 68.15% 448 69.46%

Black or African American 54 10.53% 62 10.62% 68 10.54%

American Indian & Alaska Native 3 0.58% 4 0.68% 3 0.47%

Asian 5 0.97% 9 1.54% 8 1.24%

Native Hawaiian & Pacific Islander 0 0.00% 0 0.00% 0 0.00%

Other Race 73 14.23% 72 12.33% 75 11.63%

Two or More Races 37 7.21% 39 6.68% 43 6.67%

Household by Household Income 3,281 3,960 4,318

Income Less than $15,000 1,623 49.47% 1,807 45.63% 1,889 43.75%

Income $15,000 - $24,999 475 14.48% 538 13.59% 586 13.57%

Income $25,000 - $34,999 453 13.81% 473 11.94% 463 10.72%

Income $35,000 - $49,999 298 9.08% 491 12.40% 574 13.29%

Income $50,000 - $74,999 235 7.16% 333 8.41% 398 9.22%

Income $75,000 - $99,999 97 2.96% 118 2.98% 153 3.54%

Income $100,000 - $149,999 51 1.55% 124 3.13% 157 3.64%

Income $150,000 - $249,999 42 1.28% 62 1.57% 77 1.78%

Income $250,000 - $499,999 7 0.21% 13 0.33% 18 0.42%

Income $500,000 or more 0 0.00% 1 0.03% 3 0.07%

Average Household Income $25,894 $30,334 $32,952

Median Household Income $15,368 $18,216 $19,608

Per Capita Income $9,024 $12,338 $14,179

Households by Age of Householder 3,389 3,962 4,317

Householder Under 25 Years 1,204 35.53% 1,113 28.09% 1,001 23.19%

Householder 25 - 34 Years 766 22.60% 962 24.28% 1,089 25.23%

Householder 35 - 44 Years 427 12.60% 580 14.64% 741 17.16%








Householder 85 Years and over 97 2.86% 108 2.73% 110 2.55%

Median Age of Householder 31.40 34.00 35.90


Page 8

Appendix C: Menu Management

ITEM:Total Recipe Cost 113.44$ Food Cost % 30.00%NO. OF PORTIONS: 15 Selling Price 378.15$ $25.21PORTION COST: 7.56$ Menu Price 15.00$ 50%

INGREDIENT QUANTITY UNIT UNIT Yield TOTAL COSTPRICE

Beef Tenderloin 4.50 Pounds $10.50 80% 59.06$ Salt 0.15 Teaspoon $0.15 99% 0.02$ Pepper 0.15 Teaspoon $0.01 99% 0.00$ Vegetable Oil 0.15 Teaspoon $0.63 99% 0.10$ Pate de foie gras 8.00 Ounce $2.06 99% 16.65$ Truffle Peelings 1.00 Ounce $5.00 99% 5.05$ Puff Pastry 2.00 Pounds $3.05 99% 6.16$ Eggs 1.00 Whole $1.12 99% 1.13$ Milk 1.00 Ounce $0.02 99% 0.02$ Madeira Sauce 20.00 Fl Ounces $1.25 99% 25.25$

TOTAL COST 113.44$

Recipe Cost Card

Beef Wellington (5 ounce serving)

Recipe Cost Card



Sea Scallops 8.00 Ounces $0.31 90% 2.76$ Shrimp 8.00 Ounces $0.38 95% 3.20$ Squid 8.00 Ounces $0.50 95% 4.21$ Mussels 2.00 Pounds $0.12 95% 0.25$ White Wine 2.00 Fl. Ounces $0.10 99% 0.20$ Virgin Olive Oil 6.00 Fl. Ounces $0.15 99% 0.91$ Lemon Juice 2.00 Tablespoons $0.07 99% 0.14$ Flat leaf parsley 4.00 Tablespoons $0.10 99% 0.40$ Salt 0.15 Teaspoon $0.15 99% 0.02$ Pepper 0.15 Teaspoon $0.01 99% 0.00$ Fennel, sliced thin 4.00 Ounces $0.32 99% 1.29$ Celery, julienne cut 4.00 Ounces $0.10 80% 0.50$ Carrots, julienne cut 4.00 Ounces $0.02 90% 0.09$ Garlic Cloves, chopped 0.50 Ounces $0.01 95% 0.01$ Green Olives, pitted 4.00 Ounces $0.12 99% 0.48$ Red Pepper Flakes 0.15 Teaspoon $0.01 99% 0.00$ Court Bouillon 1.00 Quart $1.00 99% 1.01$

TOTAL COST 15.48$

Insalata Di Mare (9 ounce serving)

ec pe Cos Ca d

Appendix C: 2.0 Sampled Food Recipe Costs

ITEM:Total Recipe Cost 27.13$ Food Cost % 30.00%NO. OF PORTIONS: 5 Selling Price 90.42$ 18.08PORTION COST: 5.43$ Menu Price 12.00$ 45%


Sparerib racks 9.00 Pounds $2.50 85% 26.47$ Garlic cloves 2.00 Whole $0.04 99% 0.08$ Tomato Ketchup 1.00 Fl. Ounce $0.07 99% 0.07$ Soy sauce 1.00 Fl. Ounce $0.06 99% 0.06$ Hoisin sauce 1.00 Fl. Ounce $0.00 99% -$ Red Wine 1.00 Fl. Ounce $0.14 99% 0.14$ Fresh ginger 1.00 Tablespoon $0.22 95% 0.23$ Honey 1.00 Tablespoon $0.07 99% 0.07$

TOTAL COST 27.13$

Recipe Cost Card

Chinese BBQ Spareribs (5 ounce serving- 5 ribs)

Recipe Cost Card



Chicken Tenderloins 4.50 Pounds $1.54 80% 8.66$ Flour 8.00 Ounces $0.10 99% 0.81$ Chilli Powder 3.00 Tablespoon $0.15 99% 0.02$ Paprika 3.00 Tablespoon $0.13 99% 0.39$ Granulated garlic 2.00 Tablespoon $0.16 99% 0.32$ Black pepper 2.00 Teaspoon $0.01 99% 0.02$ Cayenne pepper 1.00 Tablespoon $0.16 99% 0.16$ Dried thyme 1.00 Tablespoon $0.23 99% 0.23$ Dried oregano 1.00 Tablespoon $0.21 99% 0.21$ Salt 3.00 Tablespoon $0.15 99% 0.45$ Eggs 4.00 Whole $1.12 99% 4.53$ Milk 4.00 Tablespoon $0.01 99% 0.04$ Bread crumbs 0.50 Ounces $0.03 99% 0.02$ BBQ Sauce 8.00 Fl. Ounces $0.07 99% 0.57$ Chipotle peppers 1.00 Tablespoon $0.22 99% 0.22$ Honey 1.00 Ounces $0.07 99% 0.07$

TOTAL COST 16.73$

Recipe Cost Card

Spicy Fried Chicken Tenders w/Chipotle Dipping Sauce

Appendix C: 2.0 Sampled Food Recipe Costs

Item Number SB6 Active Item YesItem Description Lilly Rush Revenue Group BarLocation Bar Salable YesGL Acct Number 1206-1112-0102 Tracking DailySize 1 Serving Recipe Group Beverage

Ingredient Item Number Ingredient Item Description # of Units Recipe Unit Description

Unit Cost Total Cost Percentage Cost

SB6Sp Three Olives Vodka 1.50 Fluid Ounce $0.71 $1.07 65.74%SB6Mi1 Monin Elderflower Syrup 0.75 Fluid Ounce $0.30 $0.23 13.89%SB6Mo2 Ciao Prosecco 0.75 Fluid Ounce $0.44 $0.33 20.37%

Total $1.45 $1.62 100.00%

Concept Creative Hospitality GroupBeverage Purchasing

Potential Recipe Cost $1.62Menu Price $8.00Potential Recipe % 20.25%Targe Cost % 25.00%Target Menu Price $6.48Q Factor $0.65Sales Tax $0.50Total Targeted Menu Price $7.63

Appendix C: 3.0 Sampled Beverage Recipe Costs

Item Number SB8 Active Item YesItem Description Orange Marmalade Revenue Group BarLocation Bar Salable YesGL Acct Number 1206-1112-0102 Tracking DailySize 1 Serving Recipe Group Beverage

Ingredient Item Number Ingredient Item Description # of Units Recipe Unit Description

Unit Cost Total Cost Percentage Cost

SB8Sp Three Olives Vodka 1.50 Fluid Ounce $0.71 $1.07 54.23%SB8Mo Cointreau 0.75 Fluid Ounce $1.18 $0.89 45.07%SB8Mi Orange Juice 3.00 Fluid Ounce $0.00 $0.01 0.38%SB8Gar Orange Slice 0.13 Count $0.05 $0.01 0.32%

Concept Creative Hospitality GroupBeverage Purchasing

Total $1.94 $1.96 100.00%

Potential Recipe Cost $1.96Menu Price $8.00Potential Recipe % 24.55%Targe Cost % 25.00%Target Menu Price $7.86Q Factor $0.79Sales Tax $0.60Total Targeted Menu Price $9.25

Appendix C: 3.0 Sampled Beverage Recipe Costs

CCHG, Inc.

Business

financial strategy

financial analysis

business space

table concept

timeless concept

concept markets

cocktail experience

financial assumptions