Superior Hockey Centers
...inception of SHC. After formalizing the location, Don immediately began discussions with the Oshwaw CYO Hockey Association (“CYO”) to determine if their indicated need for ice time need would translate into a long-term financial commitment. Don has a longstanding relationship with the organization and knew that the CYO did not have access to a skating facility locally, and he also knew that the CYO was spending upwards of $300,000 per year for ice rental on behalf of its members. The CYO welcomed SHC’s proposal and has subsequently entered into a letter of intent to rent ice time ($337,000 annually with escalations) for a twenty-year term with a ten-year option. With the CYO commitment in hand, SHC estimates that it can generate annual revenue of around $1.6 million (ice rental is projected at around $900K gross annually, retail sales estimated at around $200K annually, specialized training at around $400K annually, and food and beverage sales estimated at $100K). By all indications, SHC is confident that the center can and will be a profitable enterprise over the long term. Development and Status SHC’s current course of action includes: 1.) Identifying a suitable location in Oshawa 2.) Creating a comprehensive business plan (which we anticipate completing within 60 days 3.) Finalizing conceptual designs 4.) Identifying sources for funding 5.) Securing funding 6.) Commencing development, and 7.) Commencing operations. 1.) Identifying a suitable location in Oshawa 2.) Creating a comprehensive business plan (which we anticipate completing within 60 days 3.) Finalizing conceptual designs 4.) Identifying sources for funding 5.) Securing funding 6.) Commencing development 7.) Commencing operations The x facility will serve as both the headquarters and prototype facility used to model future SuperIce Hockey Centers®. SuperIce® Hockey Centers, Inc. is currently seeking a commitment of $2.5 million in equity funding to develop its prototype facility and put its international headquarters in place. The offering will issue 2500 units of Superice® Hockey Center x, Inc; (50%) the minimum investment being 25 units/$25,000. The proceeds will be used as follows: 1. The construction and operation of our x facility scheduled to begin construction in May 2002. 2. The expedited training and development of internal management teams for emerging international expansion opportunities. It is our intention to primarily fund our further expansion through debt and co-ventures, using the majority of our operating cash flow to create a retrun for our investors on a priority and preferred basis until their initial investment has been recouped. Future Plans Focus for the first year of operations will be on the initial facility, however management will immediately begin scouting for a second location and develop plans for the next unit. Our five-year goal is to have 8 centers with a combined annual earnings of between $x and $x. Management & Organization Key Employees & Principals Rex Carpenter is Senior Vice President at AIE, with over 12 years experience in the field, he leads their sales and marketing efforts and has contributed significantly to the long-term development of AIE and to the synthetic ice industry as a whole. Rex’s will primarily focus on business development. Don McDonald, COO has over 20 years business and management experience in the hockey industry, and currently owns and operates a profitable hockey training facility in Canada. Don will head operations and will identify and develop new markets for SHC. Sharon Park, Director of Marketing has an extensive and diverse background in sports marketing including tenures with Fox, Parmount and ESPN. She is currently serving as Executive Vice President of AIE. Sharon will direct the PR and marketing activities of SHC. Barry Zelner, Corporate Counsel. He has maintained a legal practice in Beverly Hills for over 20 years and is ideally suited to represent the company. Miles Anderson, CFO, Miles is a real estate consultant, and co-founder of The Elden Company Commercial Real Estate Consultants, Inc. in Irvine, CA. He brings 10 years of extensive development and brokerage experience to the team. Board of Directors An impressive board of directors has been assembled that represents some top professional from the area. They will be a great asset to the development of the company. Consultants & Professional Support Resources At the present, no outside consults have been retained. Management to be Added We are presently searching for a general manager and executive chef. These key employees will be well chosen and given incentives for performance and growth. Management Structure & Style Ownership Industry Analysis Amateur Hockey Industry Today Future Trends & Strategic Opportunities Profit Centers Superior Hockey Centers have been designed as “destination venues” and are structured to derive and maximize income from various sources within the operation. The Skating Surface Rental income from use of the skating surface will be the “core” business and the primary, and most predictable, source of income for the centers. Commitments will be solicited and formalized in order to identify an income stream over time. available “ice time” will be committed to prior to opening a SHC, therefore the center’s focus will be less of a marketing emphasis with a greater focus on management and administration. Hockey Leagues Instruction Pro Shop Food and Beverage Arcade The Competition Competitor's Profile Competitive Strategy There are three major ways in which we will create an advantage over our competitors; product identity, quality, and novelty high employee motivation and good sales attitude innovative and aggressive service options. Abonda will be the only restaurant among all the competition, which focuses the entire menu on healthy, low-fat cooking. Each of the competitors offers at least one "healthy" selection on their menu. Grendel's Den even has an entire section called "On the Lighter Side" but in all cases they are always seen as alternatives to the main style being offered. The target market will perceive Abonda as the destination location for healthy, low-fat cooking. Once they have tried the restaurant, their experience will be reinforced by friendly, efficient, knowledgeable service. Return and repeat business will be facilitated by accessible take-out and delivery options. At the time of this writing all of the competitors offered take-out but only two (Bertucci''s & Chili's). Marketing Plan & Sales Strategy Market Penetration Marketing Strategy Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketing vehicles will be created to convey our presence, our image, and our message. Print media -- local newspapers, magazines and student publications Broadcast media -- local programming and special interest shows Hotel guides, concierge relations, Chamber of Commerce brochures Direct mail -- subscriber lists, offices for delivery Misc. -- yellow pages, charity events A public relations firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. The marketing effort will be split into 3 phases; 1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and printed announcement ads in key places. Budget - $10,000 2) Ongoing -- A flexible campaign (using the above media), assessed regularly for effectiveness. Budget - $10,000 3) Point of sale -- A well-trained staff can increase the average check as well as enhancing the customer's overall experience. Word-of-mouth referral is very important in building a customer base. Future plans and Strategic Opportunities Catering to offices (even outside of our local area) may become a large part of gross sales. At that point a sales agent would be hired to directly market our products for daily delivery or catered functions. Operations Facilities & Offices The restaurant at 645 Deacon Street is a 2400 Square foot space. It was formerly a restaurant and needs on minor structural modifications. The licenses and codes' issues are all in order. New equipment and dining room f...