Just Wing It!

1. Just Wing It! Presented by: Team 7 Douglas Vinci, Jarrod Begy, Paige Howard, Lin Yuan, & Yifu Gao Presented for: Mr. Gross & Mr. Ansley Prof. Keifer, Dr. Kiger, Prof. Martel, & Dr. Tucker

2. WING WAREHOUSE MENU Sampler……………………….…..……………………..…………………………....$2 Appetizer……………………..…..……………………..…………………………….$3 Salad…………………………………………………….…………..……………………$4 Drinks…………………………………………………………………..…….............$6 Franchise Competitor Comparison…………………….……………….$7 Local Competitor Comparison…………………………….………………$8 Entrée……………………………….…………………………………….……........$11 Zip Card………………..………………………………………………..…………$12 Lunch Delivery……………………………………………………….…………$16 Ohio Lottery KENO………………………………………………….………..$19 VIP Tees…………………………………………………………………….………$23 Ticket Back Sponsorship….…………….…………………………..……..$26 Dessert……………………………………….…………………………………..……$29 Leftovers………………………………….………………………………………..…$31 Bar and Restaurant Survey….………………………….……..………...$32 Side Items……………...………………………………………..…………….…$33 Bill……………………………………….……………………………….………………$34

3. Wing Warehouse is currently facing many challenges. These challenges are focused around local competition, location, longer than desired service time, very tight marketing budget, and restrictions on marketing to University of Akron Students. Recommendations have been made in order to combat these challenges. First, it is recommended that Wing Warehouse accept the Zip Card. Accepting the ZIP Card will have a total cost of implementation for the first year will be $290 + 5% of sales. Total cost for year two and following years will be $180 + 5% of sales. The primary benefits of the implementation will be the additional revenue from accepting the Zip Card. Also, this will allow for Wing Warehouse to advertise on campus. The Zip Card office will actually distribute the promotional items for Wing Warehouse. Then, it is recommended that Wing Warehouse begin delivering for lunch from 11:00am to 3:00pm. The total cost for this will be $146 per week, plus the flyers and menus that are distributed, which vary depending on how and where they are printed. Time will also be required, in order to distribute the flyers to the individual business in order to gain awareness. Over time, with gained popularity, lunch delivery should become profitable and bring in marginal profit as well as grow the customer base. Next, it is recommended that Wing Warehouse implement Ohio Lottery KENO. KENO is a guaranteed profit generator. It would be nearly impossible for Wing Warehouse to lose money with KENO. The KENO multi-play system actually has other Ohio Lottery games as well. The total cost for implementing KENO is a $25 application fee and the cost of obtaining a bond. The cost of the bond can range from $300 up to $2,000 depending on the standing of Wing Warehouse’s credit. Wing Warehouse keeps 5% of all sales, and never has to pay out more than $599. Bonuses are paid to Wing Warehouse for high cashes. If cash to sales ratio is 49.5% or greater Wing Warehouse receives an additional .5%. Then, it is recommended that Wing Warehouse sell custom T-Shirts. It is recommended that the first order be for 20 shirts. The total cost of the shirts is $130 ($6.50 each). Customers who purchase the shirts receive 5% off of their food order. If each person wears the shirt four times, and buys 12 wings, the cost of the discount would be $39. If the shirts are sold at a price of $9.99, the profit from the shirts would be $30.80. However, the total profit can be much higher, due to the advertising from the person wearing the shirt. It would also be a reasonable assumption that each person will also order drinks and possibly more food, as well as bringing friends. Finally, it is recommended that Wing Warehouse sponsor the ticket backs for the Akron Aeros 2012 season. It is recommended that Wing Warehouse provide a coupon for “buy 12 wings, get 6 free”. The coupon will appear on 250,000 tickets throughout the season. The coupon will not be valid on game days. Being conservative, a response rate of 1% would mean that 2,500 people would take advantage of the opportunity. It is also likely that that person will bring friends with them, increasing revenue and profits. The revenue from the wings alone is $24,375. The cost of the sponsorship is $7,500. The cost of 18 wings ($.21 each) for 2,500 customers is $9,450. Bringing total cost to $16,950. Profit will be $7,425 after considering the cost of wings and promotion expense. However, the actual profits will be much higher due to the order of drinks, profit from friends that accompany them to the restaurant, as well as potential customer loyalty and brand awareness increasing. Overall, it is believed that with the implementation of these recommendations, Wing Warehouse will be able to position themselves much more competitively. Returns on these recommendations cannot all be quantified. However, with the conservative estimations made, it can be assumed that Wing Warehouse will in fact see an increasingly positive return in both the short and long term future. Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill

4. Introduction Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill Wing Warehouse is a franchise restaurant that is located in the Akron Aeros stadium. It was recently re-opened by new owners John Gross and Jason Ansley. They two gentlemen saw great potential with this restaurant based on its location and its reputation of award winning wings. John and Jason have been trying to implement revisions to form it into a successful restaurant, but have found it difficult to grow their customer base and compete with local bars and restaurants. Team 7 has been informed on the difficulties with the restaurant and how market to potential customers. After being informed, there has been extensive research on how to assist Wing Warehouse into becoming a popular restaurant in downtown Akron. Team 7 has designed recommendations that will make Wing Warehouse one of the top competitor’s in downtown Akron. These recommendations have been based on research Team 7 has found throughout working with Wing Warehouse. By making a visit to Akron to see the restaurant highly benefited Team 7F to see what they are dealing with and to receive more information from the owners. The team had the opportunity to visit the competitors so they can benchmark them against Wing Warehouse as well as get an understanding for the environment and setting each competitor develops. Team 7 has also made phone calls and arranged meetings to gain information on recommendations. For example, the team called the Ohio Lottery office for information and gained even more insight on the implementation and benefits. Team 7 also surveyed University of Akron students to receive data on their night life and what attracts them to certain bars and restaurants around the downtown Akron area. Throughout the report, Wing Warehouse will be informed of five recommendations that will be the most beneficial and cost efficient for them. These include accepting the Zip Card, installing KENO, VIP Tees, delivery, and advertising on the back of Akron Aeros tickets. Using these marketing strategies will grow the customer base, as well increase customer satisfaction and loyalty. Wing Warehouse will receive an in-depth explanation of why these are the best options and how they will improve the business. Wing Warehouse will also gain knowledge on how to fully implement the recommendations as well as a cost analysis for each one. For a list of additional entrées that did not make up the primary recommendations, please refer to Leftovers – Side Items.

5. Key Challenges • Waiting Time • Tight Budget • Location • Marketing Restrictions

6. Key Challenges • Key Challenges Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill Wing Warehouse focuses a lot of time and effort to gain an edge on their competitors from a quality standpoint. This has helped them cook and perfect award winning wings. Unfortunately, due to the high quality and process to make the wings, customers often wait for a much longer desired period of time for their order. Rather than changing the wait time, there needs to be a better way for customers to pass time without focusing on the wait time. In order to capitalize on customers, there needs to be a way to keep them at the bar and restaurant for longer periods of time. The longer the customers are there, the more likely they are to purchase more food and drinks. Wing Warehouse does have a large selection of drinks and beer, yet they only have four on tap at any time. A minimal tap selection could impede on the amount of alcohol someone might buy, or how long they stay there. Therefore it is important to look for alternative ways to entice customers to stay longer at the bar. Location is one of the biggest challenges that Wing Warehouse faces. The campus is extremely large and there are areas that are a long walk from Wing Warehouse. Barley House, Wing Warehouse’s main competitor, is located right next door. This helps since they receive most customers when Barley House gets too full. However, Barley House is one of the main places everyone wants to go so if they are walking that far out most will decide to head there instead of Wing Warehouse. There are multiple bars on the other end of the street from Wing Warehouse. The main competitors there are Brubaker’s Pub, 69 Taps, The Lounge and Lux Nightclub. These bars are all relatively in the same vicinity of each other. Since there are many more options on this end of the street many potential Wing Warehouse customers will go there. In the off season there are clearly not as many customers coming into the restaurant. This makes it difficult to gain enough revenue to cover expenses, and certainly not enough to spend on effective marketing. Finding an inexpensive way to market to a lot of people can be extremely difficult. Currently Wing Warehouse is facing difficulty in marketing and attracting new customers. Wing Warehouse management is already busy with other employments and even education. Once the Akron Aeros’ season starts, business will become more hectic and there will be much less time to focus on marketing. Making time to distribute marketing and promotional items can be nearly impossible. Marketing to University of Akron students can be difficult and challenging, due to restrictions in place by the university. Finding a legal way to effectively market to these students is vital. Also, Wing Warehouse does not currently accept the Zip Card, which is the card that many students use to pay for food off campus.

7. Benchmarking Franchise & Local competitors • Franchise Competitor Comparison • Survey Statistics • Local Competitor Comparison

8. Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill Franchise Comparison • Franchise Comparison Price Comparison

9. Survey Statistics Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill A survey was conducted on the University of Akron campus to determine exactly what attracts students to restaurants and bars. The following data was calculated. Restaurant Bar

10. Competitive Benchmark Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill

11. Competitive Benchmark Continued Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill

12. Recommendations • Zip Card • Deliver during Lunch • Ohio Lottery KENO • VIP T-Shirts • Akron Aeros Ticket Back Promotion

13. Zip Card - Overview • Zip Card - Overview Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill It is recommended that Wing Warehouse accept the Zip Card. The Zip Card is the official University of Akron student identification card. At the University of Akron, rather than having a designated number of meals, students are given a set amount of money to spend each week. This amount varies depending on the selected meal plan. A typical amount is $90 per week. This money can be used on campus in the dining halls and selected merchants, as well as off campus at accepting locations with a process similar to that of accepting a debit or credit card. According to our survey, it shows that accepting the Zip Card has the potential to increase revenue, and ultimately see a gain in profits. With more than 29,000 students, the University of Akron is a very attractive market. Sources: University of Akron – Business Opportunities University of Akron – About UA Bar and Restaurant Survey

14. Zip Card - Overview Continued • Zip Card – Overview Continued Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill A major benefit to becoming a Zip Card merchant is the marketing opportunities that exist. Wing Warehouse has had difficulty marketing directly to students with promotional items due to campus policies. However, all Zip Card merchants are permitted to provide students with promotional items on campus. What will truly decrease marketing expenses, is that the Zip Card office will actually distribute the promotional items such as flyers, coupons, handouts, or even T-Shirts and other items for Wing Warehouse, free of charge. The only cost would be the actual items to be distributed. These items can be distributed to students, faculty, and staff which can be a diverse target market. This is very important, since Mr. Gross, Mr. Ansley, and Ms. Lau are very busy with the management of the restaurant, working other jobs, as well as being part-time students. Therefore, it would be difficult to actually go and distribute flyers around campus, even with permission. There are limitations on these items, such as no mentioning of alcohol or drink specials. Sample designs for these flyers and promotional items have been provided. Source: University of Akron – Merchant Contract

15. Zip Card – Cost Analysis • Zip Card – Cost Analysis Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill There are costs associated with implementing the acceptance of the Zip Card . There is a one-time $200 installation fee. A monthly fee of $15 is required for the Zip Card reader. The first six months of use are free for the card reader. As with other cards, the University of Akron takes a percentage of revenues each time a Zip Card is used. The fee for the Zip Card is 5% with the plan we are recommending. Installation requires an accessible phone line for the operation of the card reader. So, total fees for the first year of implementation will be : $200 (Installation) + $90 (6 months free card reader, 6 months at $15/month) + 5% fees = $290 + fees. Total fees and expenses for year two: $180 (12 mos. for card reader at $15/mo.) + 5% fees = $180 + fees. Reduction in Cost of $110 from Year 1 to Year 2! Source: University of Akron – Merchant Contract

16. Zip Card – Implementation • Zip Card - Implementation Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill To implement this, contact the Zip Card office. The office will ask you to complete the merchant contract. A copy of the merchant contract will be attached as an unbound copy for use at Wing Warehouse’s discretion. The package that we recommend is the Basic Access with Monthly Reimbursement. Once the contract is filled out, sign and submit via fax or in person at the address listed below. It should be noted that there are other levels of membership with other benefits. Some of the benefits include virtual marketing on the University of Akron Zip Card Office website, and campus television. As the level of membership and/or frequency of reimbursement payments increase, so does the percentage of sales paid to the University of Akon, up to 11%. Once the contract is received it will be reviewed. The University of Akron has the right to decline any contract or decline to be associated with any company. However, declination is a rare occurrence. Once the contract is approved, the Zip Card office will call the listed contact person for Wing Warehouse and set-up an installation time. The technician will install the card reader. It is important that the phone line be available and active before the technician arrives for installation. Once the card reader is installed, Wing Warehouse will be ready to accept the Zip Card. Once a customer uses their Zip Card, the revenue goes directly to the University of Akron. Then, each month a payment will be made to Wing Warehouse in the form of a check minus 5%. The 5% is the fee charged for permitting the use of the card. This is similar to how other debit and credit card providers function. In addition to the 5% being subtracted from the payment made to Wing Warehouse, the $15 monthly fee will be automatically subtracted as well. This will save Wing Warehouse time from not having to actually submit a payment to the University of Akron . 302 Buchtel Common. Akron, OH 44325 Phone: (330)-972-7111 Fax: (330)-972-8420 Source: University of Akron – Merchant Contract For a copy of the merchant, please see attached document.

17. Lunch Delivery - Overview • Lunch Delivery - Overview Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill It is recommended that Wing Warehouse begins to deliver during lunch hours. It will be beneficial for them deliver since because they will be able to satisfy more customers and at a different time. A delivery time from 11:00a.m.-3:00p.m. is recommended to increase the lunch crowd. This time is encouraged because that is the typical lunch time for businesses and for the beginning processes of delivery businesses will be our target market. Businesses are the optimal target market because they include a lot of people in the same location and typically work Monday- Friday 9:00a.m.-5:00p.m., so they will need a lunch break. What will attract business men and women is giving them an option to get lunch without having to leave the office. It will save them a lot of time and allow them to continue to work. The most beneficial option for Wing Warehouse will be advertising delivery to local businesses. Wing Warehouse will market towards them by individually going to businesses around the area and giving them flyers. Appropriate businesses would be PNC Bank, Akron Civic Theatre office, and Greater Akron Chamber or others like them. Even though some of the businesses are small, they will still be beneficial because you can create more loyal customers.

18. Lunch Delivery – Cost Analysis • Lunch Delivery – Cost Analysis Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill In order to deliver lunch, a driver is obviously needed. The minimum for tipped delivery persons is below the normal minimum wage. However, it is recommended that the driver is paid the traditional state minimum wage of $7.30 per hour. This is due to the increasing price of gas, and due to the fact that the drive will be using their own car and insurance. There will also be the cost of time used to distribute flyers, as well as the cost of the flyers themselves which can vary depending on how and where they are printed. Cost: $7.30 (Wages) X 4 (hours of delivery) = $29.20 (Per Day) Cost: $29.20 (Daily Wages) X 5 (Weekdays) = $146.00 (Per Week) It is understood that the total wage costs will vary with different taxation and other employee expenses. The return on this is not easily forecasted. However, as the delivery program gains popularity, it is expected that the delivery will become profitable. With proper implementation, this could be a valuable source of marginal revenue and profit.

19. Lunch Delivery – Implementation • Lunch Delivery - Implementation Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill To implement delivery, Wing Warehouse will have to find a reliable driver. This will be Wing Warehouse’s hardest task because they will have to be loyal, honest, and efficient. To make sure the driver has all these qualities, the ideal situation would be hiring someone that is already working for Wing Warehouse. The potential driver will have to know their way around Akron and addresses. Once there is a potential driver, Wing Warehouse will need to make sure that they have car insurance and they contact their insurance company and let them know that they are delivering for a restaurant. Most insurance companies will make you upgrade your coverage because they believe delivery is more risk, however this would be no cost towards Wing Warehouse because it is the drivers individual coverage. Once a driver has been found, Wing Warehouse will need to implement an information system at the restaurant. There will need to be training of existing employees at the restaurant to take the orders over the telephone, give the order to the kitchen, and inform the cooks that the order is for delivery. Once the order is complete, the driver needs to be notified of the address and order. Once the driver arrives at the destination, it is his or her job to collect the money, and give the customer their order. This requires that the driver have excellent customer service skills. With their order, customers will receive a copy of Wing Warehouses menu that is attached to the receipt. If the customer chooses to pay for their order with a credit card, they will give the employee who answered the phone their card number and the driver will then bring the receipt and copy to the destination for them to sign. Customers will be able to tip the drivers on the receipt they have signed. Drivers will have to wait to receive their tip once they bring the signed receipt back to the restaurant. If the customers pay with cash, it is the drivers responsibility to have change and they can receive their tips right away. To begin implementing delivery and make it a positive asset, Wing Warehouse will have to highly advertise it. Wing Warehouse employees and/or owners will have to individually go around all of the businesses and give them flyers. This will be time consuming, but beneficial if to Wing Warehouse if employees carefully hand out flyers to individuals within the office and are personable. The best time to go to the businesses will be during lunch hours when they are on break and will not be disturbed.

20. Ohio Lottery KENO - Overview • Ohio Lottery KENO - Overview Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill It is recommended that Wing Warehouse bring KENO, an Ohio Lottery game, to their restaurant. There are many benefits to having KENO at a bar and restaurant. First, it is a fun and interactive game that people can play individually, but people often play in groups. KENO helps to pass time, and can become a fun and exciting game that the customers do not want to stop playing. This can be very useful for passing time while customers wait for their food. Also, customers will be in Wing Warehouse for longer periods of time while playing the game. Having the customers there for longer periods of time means that they are more likely to order more food, and much more likely to order another drink. This is all additional and incremental revenue for the business. Mr. Gross expressed a concern for tips for waitresses, since they are paid servers’ wages. Well, with KENO it is very common for a customer to share their winnings with the waitress as a tip. This will help to keep employee expenses down by reducing the additional salary paid to waitresses that haven’t reached the minimum wage threshold. Also, if KENO is found to be very successful, Wing Warehouse will have the option to add other Ohio Lottery games, such as instant scratch-off tickets. The equipment will be the multi-play station, a ticket checker, terminal and ticket printer, flat screen monitor, and bet slips. The multi-play station has much more than just KENO. In fact, customers can easily select which game they want to play. The choices are: KENO, Pick 3, Pick 4, Mega Millions, Ten-Oh!, Rolling Cash, EZ Play, and Classic Lotto.

21. Ohio Lottery KENO – Cost Analysis • Ohio Lottery KENO – Cost Analysis Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill All equipment mentioned is installed at no expense to Wing Warehouse. Also, training will be provided to Wing Warehouse free of charge as well. The training will take place at the regional office in Canton. The training sessions can be for up to six people for adequate training time and attention. This would allow for Mr. Gross, Mr. Ansley, Ms. Lau, as well as three other employees to receive direct training. In addition to the free equipment and training, Ohio Lottery will help to promote Wing Warehouse, as well as KENO events. This will include Ohio Lottery promotional items to get the word out that Wing Warehouse has KENO. Promotional items include banners, signs, stickers for bathroom mirrors, bathroom posters, napkins, “how to play” caddy stickers, and coasters. If a player cashes for more than $599, a form is provided to the customer. The player will get their winnings from Ohio Lottery, and Wing Warehouse will not be paying the cash. In fact, for every player that does need to fill out a form, Wing Warehouse gets an additional $5 from Ohio Lottery. Also, if cash to sales ratio is 49.5% or greater, Wing Warehouse receives an additional .5%. Wing Warehouse will be able to keep 5.5% of all sales through all Ohio Lottery games. The costs involved are minimal. There is a one-time $25 application fee when an application is submitted to the Regional Lottery office. The largest expense will be for a bond. The cost of the bond varies, and depends on the credit score of those applying. The higher the credit score, the lower the cost. The opposite is true, that the lower the credit score, the higher the cost of the bond. The cost of the bond can be as low as $300 for exceptional credit, and up to just over $2,000 for poor credit. If the credit is terrible though, there is a possibility that the bond may not be awarded. Cost: $25 (Application Fee) + $300 (Bond * May be Higher) = $325 Revenue: 5.5% of all Sales, Revenue Will Exceed Expenses Profit: Depends On Sales Source: Ohio Lottery – KENO Resources

22. Ohio Lottery KENO – Implementation • Ohio Lottery KENO - Implementation Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill To implement this recommendation, Wing Warehouse first needs to complete an application. The application can be obtained online. If Wing Warehouse contacts the regional sales office at the phone number and address provided below, the sales representative will actually come to Wing Warehouse and help to fill out the application properly. Once the application is completed and submitted, the next step would be to pass a background conducted by Ohio Lottery. The background check will be conducted on all people with ownership of Wing Warehouse. After having passed the background check, the next step would be to begin the process of obtained a bond. Searching for a bond issuer may be difficult. However, the Ohio Lottery office has a list of about ten different issuers. These issuers have a reputation with Ohio Lottery and are the bond sources for most of their lottery merchants. The bond process is the most time consuming portion of the application. After the bond is obtained, the next step would hopefully be approval by the Ohio Lottery office. Region 7Akron Office5926 Mayfair RoadNorth Canton, Ohio 447201-800-589-6467 Ask for Jeff Derlik Source: Ohio Lottery

23. Ohio Lottery KENO – Implementation • Ohio Lottery KENO - Implementation Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill Once there is approval, Wing Warehouse will be provided with training, free of charge. As mentioned, the training can involve up to six people comfortably with enough hands on experience to be properly trained. After training is completed, the multi-play machine will be installed. Once the game is installed, Wing Warehouse needs to notify their business insurance provider of the installed machine so that it is covered in the event of an accident resulting in damage to the machine. Next, Wing Warehouse will be responsible for training any employees that were not able to attend the training sessions. The more knowledgeable the employees, the better they will be to help customers, and the more likely they will be to play the games. Finally, a KENO party may be held and marketed with the assistance of Ohio Lottery. Ohio Lottery will provide all promotional items, and encourage participation from customers. Also, once Wing Warehouse sees the benefits of implementing KENO, they will have the option to add other Ohio Lottery Services, such as instant scratch-off tickets. This can be done without any additional insurance or adjustments to the bond, and requires little paperwork. Any paperwork can be completed with the assistance of a sales representative, just as before.

24. VIP Tees – Overview • Wing Warehouse VIP Tees Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill Wing Warehouse has a very nice, and potentially recognizable logo. There needs to be a way to increase brand awareness around the Akron area, and specifically with the University of Akron students. A way of doing this would be to sell T-Shirts. Currently Wing Warehouse sells T-Shirts, but not very many. There is another way to promote the T-Shirt sales. If the shirts were sold at a relatively low price, and also provided a benefit to the customers, people are much more likely to purchase them. There should be a discount for all customers that wear these shirts into Wing Warehouse. A 5% discount on entrees would be acceptable. This would encourage customers to purchase a shirt, bringing in additional revenue and increase customer loyalty. When a customer purchases a shirt they intend on returning to the restaurant. In addition, it will help promote Wing Warehouse to anyone who sees the shirt when the customer is wearing it. To entice customers to buy the shirts the price would have to be fairly low. Most customers will not be attracted to a $20 or even a $15 shirt. If the price is placed at $9.99, Wing Warehouse will greater success in the sale of the shirts. It is believed that there would need to be a new shirt every year. The color, year, and quote can be changed to differentiate it from the previous years VIP Tee. This would also help avoid having too many people take advantage of the 5% discount on food items. In order to receive the discount the customer would have to wear the most updated shirt.

25. VIP Tees – Cost Analysis • Wing Warehouse VIP Tee - Cost Analysis Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill The overall cost of the Wing Warehouse shirts wouldn’t be very high. Fortunately, there is no franchise fee on t-shirt and apparel sales, so all revenue from t-shirts will go to the individual Wing Warehouse location. Mr. Gross said that it costs approximately $6.50 to have a shirt made. The customers that wear the VIP Tee into the restaurant will receive a 5% discount on any food item. This will reduce revenues but not substantially. Cost: 20 Shirts @ $6.50 each = $130.00 Revenue: 20 Shirts @ 9.99 each = $199.80 Profit: $199.80 - $130.00 = $69.80 If all 15 shirts are worn to the restaurant four times, and each person purchases an order of 12 wings at $9.75, there would be a 5% discount. 20 (Shirts) X 9.75 (Price of 12 Wings) = $195 $195 X 4 (Number of Times Shirts Worn) = $780 $780 X .05 (5% Discount) = $39.00 Total Profit $199.80 (Revenue) - $130.00 (Cost of Shirts) - $39.00 (Cost of Discount) = $30.80 While this may not be a large profit, it is assumed that Wing Warehouse will also generate revenue on the other purchases the customer will make, such as alcohol. Also, the person is likely to bring friends with them, so more revenue will come from those customers as well. Finally, each time the shirt is worn outside of Wing Warehouse, the restaurant is being marketed and promoted to those people directly around the individual.

26. VIP Tees – Implementation • Wing Warehouse VIP Tee Implementation Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill In order to implement this recommendation, Wing Warehouse will first need to have a design for the shirts. A potential design has been provided within this report. When designing the shirt, cost has to be considered. Most printing companies charge an additional fee for each color on the shirt. To minimize costs, the provided design is in pure black and white. Mr. Gross made mention that he already has a supplier for the shirts. However, as the volume and frequency of the orders increase, Mr. Gross should seek lower prices. The next step is to present the design to the printer, and place the order. Since it is the very beginning of VIP Tees, there is no need to have a bunch of shirts on stock. Initially Wing Warehouse should only have about 20 shirts in stock. The first order of shirts should be as follows: Small - 3 Shirts Medium - 5 Shirts Large - 7 Shirts Extra Large - 4 Shirts 2 Extra Large - 1 Demand for the shirts will help to determine the volume and specifications of proceeding orders. There needs to be a “display shirt” easily visible to attract the customers’ attention. Hanging it up near the entrance or on the wall behind the bar will ensure that it is viewed by many people. In future years you can build upon this display to show all the previous years VIP Tees. A good example of this would be the shirt displays at most Joe’s Crab Shacks. Mentioning the new shirts to customers as they check out or have their orders taken will be beneficial. Finally, selling the shirts to the customers, and encouraging them to wear them on their next visit. This will help for the shirts to eventually “sell themselves”.

27. Ticket Back Sponsorship – Overview • Ticket Back Sponsorship Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill It is recommended that Wing Warehouse sponsor the Akron Aeros ticket backs. This would allow for Wing Warehouse to place a simple advertisement on the back of the tickets, or actually put a coupon on the back. Wing Warehouse would have placement on 250,000 tickets throughout the season. Each ticket has two advertisements, so Wing Warehouse would be sharing the back of the ticket with another sponsor. The Wing Warehouse advertisement would appear on every other ticket. It is recommended that Wing Warehouse use a coupon as their advertisement, which is what most ticket back sponsors do. A disclaimer can be placed at the bottom stating that the coupon is not valid during game days. This will allow for Wing Warehouse to bring in more customers on days that do not already have high amounts of customers. The coupon has to be attractive enough to actually entice the customers to come to Wing Warehouse and use the coupon. Therefore, a coupon for buy 12 regular wings, get 6 free, is the recommended promotion. Having spoken with a corporate sales representative, ticket back sponsors have seen great success with their coupons. Some have actually had to adjust their promotions due to having very high volumes of customers using them. This can be interpreted positively for Wing Warehouse. Source: Akron Aeros Marketing Opportunities

28. Ticket Back Sponsorship – Cost Analysis • Ticket Back Sponsorship – Cost Analysis Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill The cost of the sponsorship will be around $7,500. This allows Wing Warehouse to be the official ticket back sponsors for 71 games. With 250,000 tickets with a cost of $7,500, the cost per ticket is $.03. Based on this, if only 1% of that 250,000 people use the ticket back coupon at Wing Warehouse, 2,500 customers would come to Wing Warehouse directly from the promotion. If each customer purchases just 12 wings at 9.75 that would bring in a total revenue of over $24,375. This is assuming that only one person is eating. It would be a very reasonable assumption that there would be at least one other person accompanying each coupon holder. Therefore it is likely that total revenue from this promotion would actually be much higher, especially when drinks and other food is purchased in addition to the 12 wings. Cost: $3.78(Cost of 18 Wings) X 2,500(Customers) = $9,450 Cost: Sponsorship = $7,500 Total Costs = $16,950 Revenue: $9.75(Price of 12 Wings) X 2,500(Customers) = $24,375 Profit: $24,375 – $16,950 = $7,425 • 57% of Students Identified That Friends Attract Them to Bars Profit= $7425+ Source: Akron Aeros Marketing Opportunities For more information on what attracts customers to bars, please refer to Leftovers – Bar and Restaurant Survey.

29. Ticket Back Sponsorship – Implementation • Ticket Back Sponsorship - Implementation Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill To implement this recommendation, Wing Warehouse first needs to contact the Akron Aeros corporate sales department. Any corporate sales representative is qualified to handle the contract and sponsorship details. In order to be the ticket back sponsor, Wing Warehouse would need to be able to finalize the contract by the end of December. The Akron Aeros do not assist with the creation or design of the artwork for the ticket backs. They will however, provide certain specifications to follow. It would be important for Wing Warehouse to find out which portion of the ticket (left or right) their advertisement will be on. This should be considered for design purposes, as the desired design may be different for different placement. The artwork needs to be completed and submitted by the end of January. Once the artwork is submitted, an Akron Aeros representative will review it for specification errors and formatting issues. Once the design is approved, along with the other ticket back sponsors, the tickets will be ready to print. Once the tickets are printed, they will be distributed during the games. Every other ticket printed will have the Wing Warehouse advertisement. The final step will be for the customers to come to the restaurant and present the coupon. The coupon should only be valid for the person with the coupon. The provided design also provides a disclaimer that the promotion is only valid on non-game days.

30. Conclusion • Concluding Statements

31. Conclusion Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill Wing Warehouse faces many challenges on an individual and competitor level. Barley House is the largest competitor Wing Warehouse has. Students and locals have deemed this bar their favorite for years and it is directly next to Wing Warehouse. Brubaker’s Pub, 69 Taps, The Lounge, and Lux Nightclub all have their own way to attract customers that make it difficult for the newly formed Wing Warehouse’s business to take off. Location is one of the biggest advantages these bars have. Therefore, Wing Warehouse needs to differentiate themselves and implement new strategies to broaden their brand name recognition and attract new customers. Several ideas were developed to help Wing Warehouse get a competitive edge on the local industry. One simple way to bring in more people is to implement the use of the Zip Card. 70% of students use the Zip Card off campus and approximately 32% use it off campus at least five times a week. By allowing The University of Akron to take 5% of sales you can attract a whole new crowd that otherwise may have gone to another restaurant. Also, since you pay the fee they will disperse any flyer on campus that you bring to them. Advertising on campus has been difficult for Wing Warehouse lately and when times get busy during the season this will be very convenient. Beginning to do lunch delivery during weekdays will help Wing Warehouse be more profitable in the afternoon. The main target for this recommendation is local businesses. Since there are a lot of businesses in the area, delivering to them for lunch could potentially earn a lot of revenue. The cost of this implementation is fairly cheap too. Since you only would deliver from 11am – 3pm you only have to pay minimum wage for four hours, five days a week. If Wing Warehouse decides to hire somebody for this, it will only cost them about $146 a week. Putting in Keno will help solve the problem of people focusing on long wait times or not staying at the bar long enough. The Keno lottery machine is currently trying to spread and besides the initial set up costs, it will not add any more expenses. The registration fee is $25 and depending on the submitters credit rating you can get the required bond for as little as $300. After that Wing Warehouse will be able to collect 5% of total revenues made in their restaurant by Keno with no cost at all. This will give customers something to do while they wait, and make you more money. Brand name recognition and marketing to consumers are very important when trying to start a sports bar. By creating the VIP tees you can begin to make money off T-shirt sales as well as market to a local market. Every time somebody wears the shirt, they will market your brand name to anybody who sees the shirt. Putting on the 5% discount on food items will entice customers to buy the shirt, and more importantly come back. Akron Aeros ticket marketing is fairly expensive but has the potential to make a lot of money. It costs $7,500 to set up the sponsorship with the team. By using the marketing space on the ticket as a buy twelve wings get six free coupon, you can attract enough people to offset large set up cost. We estimate that approximately 1% of customers that bought one of the 250,000 tickets sold will respond to the coupon and come to Wing Warehouse. If all they do is eat the wings, we estimate profits to be around $7,425. Many people like to enjoy beer or a beverage with their food so you can expect to see even more profits then that.

32. Appendix • Bar and Restaurant Survey • Side Items

33. Bar and Restaurant Survey Bar and Restaurant Survey Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill • 1) Where do you normally eat? • Lunch • Dining Hall 38% • Off Campus 51% • Other 11% • Dinner • Dining Hall 20% • Off Campus 61% • Other 19% • 2) How often do you use your zip card off campus each week? • Zero 30% • One - Two 21% • Three - Four 17% • Five - Six 32% • 3) How much do you typically spend on meals off campus each week? • $10 - 30 65% • $31 - 60 21% • $61 - 90 10% • $90 and above 4% • 4) What factors draw you to a restaurant • Price 56% • Quality 45% • Location 46% • Discounts 19% • Friends 34% • Drink Specials 10% • 5) How often do you go to local bars? • Almost Never 18% • Once a month 48% • Once every two weeks 16% • Once a week 10% • More than once a week 8% • 6) How much do you typically spend on alcohol at off campus bars each week? • None 27% • $10-30 66% • $31-60 5% • $61-90 1% • $90 and above 1% • 7) What factors draw you to a bar? • Price 27% • Location 28% • Discounts 9% • Friends 57% • Drink Specials 24% • Bar Food 7% • 8) Do you use online discounts? • Yes 30% • No 70% • 9) Do you have a Facebook? • Yes 92% • No 8% • 10) How often do you click on advertisements on Facebook? • Almost Never 19% • Once a month 63% • Once every two weeks 9% • Once a week 6% • More than once a week 3%

34. Side Items Side Items Sampler Appetizer Salad Drinks Entrée Dessert Leftovers Bill Inside Environment Shift – Dimming the lights down and making the music a little bit louder in the afternoon will provide an entertaining atmosphere that may attract more people during the day. Running white strand lights along the top of the walls creates a fun environment that will make the bar stand out more. To make Wing Warehouse look like a more quality establishment in the future Facebook Advertisements – Facebook advertisement seem like an easy way to market to many potential customers quickly. However, on a recent survey taken on the Akron campus only 78% responded that they never click on Facebook advertisements. Only 7% said they clicked on at least one a week. Not enough people respond to Facebook advertisements to make it a worthwhile investment. Fundraisers – Wing Warehouse fundraisers has had few fund raising opportunities. Recently they have been limited to clients approaching them for a fundraiser. Wing Warehouse can benefit from providing fundraisers for Akron’s student organizations and sports teams. Student organizations and sports teams often have to raise money for additional funding. When it comes to sports teams, they come with a large tight knit group of people. Often times they even invite all their relatives and friends. This would be a very easy way to market to a large about of locals and create more loyal customers. Bar Improvements – Currently there are only four taps at the bar. Having a wider variety of beers on tap will make Wing Warehouse much more competitive against local bars that have a larger selection on tap. Making a physically larger bar gives it more room to increase the stock of alcohol behind the bar. It will also be able to seat more people, thus increasing alcohol sales. Revamp Patio - Putting a lot of lights on the patio will attract a lot of attention from people walking by and possibly get them to come up. A spotlight would be noticeable from far down, possibly even seen from the four competing bars. By hooking up your iPod to speaker equipment outside, you could really attract customers to the patio. Live Bands – On a Tuesday or Wednesday when there aren’t normally a lot of customers Wing Warehouse should have a live band. Having a live local band can be beneficial to Wing Warehouse because their fan base will come to the show. They will also attract more customers simply because it's a free show to go see. If they have a good experience at the show they will want to come back to Wing Warehouse and have food and drinks, which will create revenue for you.

35. Bibliography Sampler Appetizer Bread Drinks Entrée Dessert Leftovers Bill Akron Aeros. (n.d.). Marketing Opportunities. Official Web Site of the Akron Aeros. Retrieved March 8, 2011, from http://akronaeros.com/gen-marketing.php Barley House. (n.d.). The Barley House in Akron. Barley House. Retrieved March 8, 2011, from http://www.thebarleybar.com/ Brubaker’s Pub. (n.d.). Welcome to Brubaker's. Brubaker's Pub. Retrieved March 8, 2011, from http://www.brubakerspub.com/locations.html Downtown Akron. (n.d.). The Lounge. Downtown Akron Partnership. Retrieved March 8, 2011, from http://www.downtownakron.com/go/the-lounge Lottery. (n.d.). Regional Offices :: The Ohio Lottery. Ohio Lottery! . Retrieved March 8, 2011, from http://www.ohiolottery.com/About/Regional-Offices.aspx Lottery. (n.d.). KENO Retailer Resources. Ohio Lottery. Retrieved March 8, 2011, from www.ohiolottery.com/Retailers/KENO/KENO-Resources.aspx LUX Nightclub. (n.d.). LUX Nightclub and Rubber City Grill. LUX Nightclub. Retrieved March 8, 2011, from http://www.luxakron.com/lux7/pages/contact.html University of Akron. (n.d.). Zip Card Merchant Contract. University of Akron. Retrieved March 1, 2011, from www.uakron.edu/dotAsset/1099363.pdf University of Akron. (n.d.). About UA. The University of Akron. Retrieved March 8, 2011, from http://www.uakron.edu/about_ua/ University of Akron. (n.d.). Business Opportunities. The University of Akron. Retrieved March 8, 2011, from http://www.uakron.edu/zipcard/business-opportunities.dot Wing Warehouse. (n.d.). The Wing Warehouse - Home. Wing Warehouse. Retrieved March 8, 2011, from http://wingwarehouse.com/index.html 69 Taps. (n.d.). Welcome to 69 Taps. 69 Taps. Retrieved March 8, 2011, from www.69taps.com/akron/