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Pinot's Palette Capstone

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Caitlin Maggio

on 4 December 2013

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Transcript of Pinot's Palette Capstone

Description & History
SWOT Analysis
Breakeven Analysis
Opened in Houston in May 2009
Over 50 franchises throughout U.S., three successfully being in Oklahoma
Won several awards through 2013
Fastest growing paint-and-sip franchise
Customers are led by trained instructors to create paintings of their own
Great for small or large groups
Franchisor provides extensive training and marketing, design, and business plans
"Paint. Drink. Have Fun."
Political Factors
Less government interference
Oklahoma one of the top 10 states for doing business
Excise tax on alcohol
Economic Factors
Low unemployment rate
Median income $48,000
89.6% cost of living of national average
Overall higher disposable income
Social Factors
Art festivals
Crafting ranked higher for leisure activities
"Girls Night Out," date nights, corporate team building events
Technological Factors
Sophisticated website and social media presence
Online coupons
Reliable computer programs necessary for successful operation
Environmental Factors
Environment-friendly products
Indoor operation
Legal Factors
Strict liquor laws
Patrons must be 21 to purchase or consume alcohol
Patrons under 18 must be accompanied by an adult
Advanced Operations
Pinot Technology Suite
iPhone app
Decision freedom
Ability to hire local artists
Category leader
First mover advantage
Reputable name
Premium price
Additional alcohol costs
Demand size
Norman population ~115,000
Franchise requirement 100,000
Substantial growth
Low total investment
Franchise success
External competition
Entertainment events
Economic stability
Luxury item
Wine wholesalers
Paint and art suppliers
Primarily female, ages 21-45
Large number of buyers
Low switching costs
Existing Rivalry
Very few similar chains
No major players
Traditional bars and restaurants
New Entrants
Low barriers to entry
Low number of players
Moderate startup costs
$74k - $172k
Painting classes offered elsewhere
Traditional and specialty bars
Stay at home alternative
Porter's 5 Forces
Presented by:
Alyssa Baier
Ryan Haskins
Caitlin Maggio
Karen Branham
Izu Evans
Casey Denton
University North Park,
located at
1500 24th Avenue Northwest
"Every child is an artist. The problem is how to remain an artist
once he grows up."
-Pablo Picasso
Scenario 1
Breakeven Sales Level: $335,981
Breakeven Time: 13 months
ROI After 5 Years: 11%
Breakeven Sales Level: $207,313
Breakeven Time: 15 months
ROI After 5 Years: 3.26%
Breakeven Sales Level: $301,563
Breakeven Time: 14 months
ROI After 5 Years: 3.26%
Full transcript