business plan v25 -...

0 5 0 0 A D I S O

Revision: March 2018

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Bovey Tracey Paradiso Arts Ltd is restoring a derelict Grade II listed historic public house, The King of

Prussia, and converting it into an art gallery, with a 118‐seat cinema theatre and a café bar / restaurant

serving organic locally sourced food. Public opinion surveys in Bovey Tracey show massive local support

for these proposals.

Bovey Tracey Paradiso Arts Ltd has been registered as a community benefit society which will be primarily

owned by the community, with profits going to arts and leisure projects in the community.

The art gallery will be a unique space in Bovey for artists to display their work, run workshops and attract

interest in their work from the public. The cinema theatre will offer a varied programme of new movies,

live theatrical and other performances. The café bar will bring high quality dining to Bovey Tracey.

The project will be primarily funded by the community with support from major grant giving organisations.

Some 6 full‐time and 11 part‐time jobs will be created.

Contents

1. Executive summary ..................................................................................................................................... 1

2. The market ................................................................................................................................................... 2

3. The King of Prussia ....................................................................................................................................... 3

Historic building ...................................................................................................................................... 3

Planned use ............................................................................................................................................. 5

Community Benefit Society ..................................................................................................................... 5

What would the cinema theatre offer? .................................................................................................. 5

Occupancy / load factor .......................................................................................................................... 6

Gallery and artists’ studios ...................................................................................................................... 6

Proposed construction works ................................................................................................................. 7

Overall development budget .................................................................................................................. 7

4. People .......................................................................................................................................................... 8

5. Systems ...................................................................................................................................................... 11

6. Promotional activities ................................................................................................................................ 13

7. Finance ....................................................................................................................................................... 15

Annex 1 – Audience Mapping research ........................................................................................................... 24

Annex 2 – Our market research....................................................................................................................... 25

Annex 3 – Café bar operation .......................................................................................................................... 26

1. Executive summary

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Bovey Tracey is a small market town of around 8,000 inhabitants, built of cob and granite and known as “The Gateway to Dartmoor”. The Bovey Tracey area, which includes the large industrial estate of Heathfield, plays an important role in providing services for other towns and villages within the district and across a wider area. Large new housing developments in Bovey Tracey are increasing the population by around 20% and raising the demand for services and facilities locally. The town is a popular destination for day visitors, attracted by its beautiful natural environment, recreational opportunities, and arts and cultural events such as the annual three‐day Contemporary Craft Festival and the Nourish Festival. There is an active community life with many groups and societies, mainly catering for the older age groups, but apart from talks and meetings there is little for people to do in the evening or on rainy days. Young people have a Youth Café and a skate park, plus some sporting opportunities.

Demographics

In the Bovey Tracey area 23.4% of the population is over 65 (compared with 16.4% nationally). Over the next 20 years the Office of National Statistics (ONS) predicts that the population of Devon will grow by nearly a quarter from 767,400 (in 2009) to 967,800 (in 2031) with the greatest increase (75%) expected in the population aged 65 years and above. There is expected to be little growth in the population aged 14 years and younger. By 2031 over a quarter of the Devon population will be aged 65 years and above.

Art

Bovey Tracey has an active arts and crafts community. The Devon Guild of Craftsmen attracts 120,000 people through its doors each year and the Contemporary Craft Festival every June has some 10,000 visitors who travel from all over the UK. But resident artists have several problems. First, their options for displaying their pictures are very limited. The Guild’s exhibition programme is drawn from the best national and international craft makers, but the Summer Show is exclusively reserved for members. Amateur artists only have the option of displaying in relatively small spaces in cafés in the town.

Devon has a thriving artistic community, and in Bovey Tracey there are eight members of the Devon Artists’ Network. These artists do not have the option of displaying their work in Bovey Tracey and have to use art galleries in surrounding small towns.

The market for displaying works of art is not restricted to Bovey Tracey, and artists from across the county could be interested in the use of a gallery and workshop area in the town. For example, an active group of artists, Dartmoor Artists, has been holding an annual exhibition of work by artists in the south west for 65 years. The one‐week exhibition in Ashburton Town Hall is well attended and they sell paintings for prices in the range £100 to £400. Members of the group have expressed interest in the opportunity of displaying also in Bovey Tracey.

Second, many artists would like a place where they can work – there are no local studio spaces. Many of the established artists complain that there are no suitable spaces in Bovey Tracey for them to run workshops, to pass on their knowledge and expertise; again, they have to travel to other towns for this.

Cinema and theatre

There is no cinema in Bovey Tracey. Seeing a movie means travelling to Newton Abbot (5.1 miles, last bus around 20:00) or Exeter (11.3 miles, last bus around 19:00) or the independent Barn Cinema at Dartington (15 miles, no public transport). The closest theatres are over 11 miles away from Bovey Tracey. All require use of private transport, adding to environmental costs. The difficulty in accessing cinemas and theatres is reflected in the Audience Mapping Agency figures for the Bovey Tracey post code, TQ13 9, which show a relatively low number of tickets sold to people from TQ13 9 (only 40% of the national average by socio‐economic group ‐ see Annex 1).

2. The market

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The second table in Annex 1 shows that if the TQ13 9 audience behaved in a similar way to the national audience, the number of film tickets sold would be 245% of the current numbers. At one of the cinemas in the area, over 6,000 tickets annually are sold to Bovey residents and it is estimated that around 15‐20,000 tickets are sold to Bovey residents in all the cinemas in the area. If there were a cinema in Bovey Tracey, it seems likely that the total number of tickets sold would trend towards the national average and rise towards 35‐50,000 per year of which we estimate we would have around 50% market share. These figures are consistent with the projections on p16.

Competition

As outlined above, competition is currently limited. There are art galleries in neighbouring towns but there are no competing art studio facilities. Similarly, cinema is available in towns some distance away, but their relative inaccessibility may be the main reason why the number of cinema tickets sold to people from Bovey Tracey is around 40% of the national average.

Our market research (see Annex 2), reaching 7.1% of the population of Bovey Tracey, asked residents for their views on developing a community cinema theatre and related facilities. There was an overwhelmingly positive response. In response to the question: “Do you think the community would benefit from a community cinema theatre in central Bovey Tracey?” 98% said “yes”, and in response to: “This cinema theatre would be community‐owned. Would you, in principle, be interested in being a shareholder, founder or otherwise helping to finance its setting up?”, 43% responded positively.

Historic building

The King of Prussia was a public house at the top end of Fore Street, Bovey Tracey. It is in the historic town centre, very close to the Old Town Hall which has been redeveloped as a whisky and gin distillery, with wine bar, gin bar and proposed bistro.

The King of Prussia building has been disused for around a decade and has been falling into disrepair. The property is owned by Heavitree Brewery plc which had obtained planning permission to convert the property into a residential house.

An historic building appraisal of this Grade II listed building was carried out in March 2015 and found that the building's original plan is not certain but it seems likely that it was constructed as a three‐room lobby‐entry house in the late 16th century. Lobby‐entry houses are not commonly found in Devon, so this is a rare example. The house was subsequently extended to the west and to the rear. It was converted into a public house, probably in the 1840s, and various alterations were made to the rear of the building. New sash windows were put in the façade, and the ground floor was reorganised. What one sees today is how the building has looked for over 170 years, an early Victorian public house. The significance of the building is derived mainly from its historical and communal value, with a lesser contribution from its evidential and historical values and its aesthetic value.

The historic main building will be sympathetically restored, and a number of Victorian or later additions and extensions on the back of the building will be removed in order to recreate its historic shape. We have consulted with the Teignbridge DC Conservation Officer, who has suggested using this opportunity to highlight the historic nature of the hall house, removing later, inappropriate, 19th century additions, and to

3. The King of Prussia

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combine this with modern architectural forms for the café and cinema to counterpoint the historic building.

This will help to sustain or better reveal the significance of the building. A heritage display will be open to the

public and will contribute to the understanding of the historical landscape of what was the heart of Bovey

Tracey for hundreds of years from the 13th century.

Planned use

As a result of the first period of the community share offer, Bovey Tracey Paradiso Arts Ltd purchased the building with its land on 27 November 2017. The aim is that this will be a community‐owned project with profits being reinvested in arts and leisure projects in the Bovey Tracey area.

The proposed layout is shown on page 4. The plan is to upgrade and refurbish the whole of the historic building and use it as an art gallery on the ground floor, with the four north‐facing bedrooms being offered as artists’ studios. The rationale for this use of the upper floor is that, although the floors feel solid, any significant increase in foot traffic upstairs might risk damaging the ancient fabric. Downstairs plans include wheel‐chair access between the various floor levels.

The collection of modern buildings (kitchen, toilets, cellar and storage) to the rear of the historic house would be demolished and the land cleared. We plan to build a well sound‐proofed 100+ seat cinema theatre in the south‐east corner of the site. The cinema theatre design has 7 rows of fixed comfortable seating plus three rows of movable sofas, enabling easy reconfiguration of the space for different theatrical or musical performances. The projection equipment would be digital and it would also have the latest theatre sound and lighting equipment.

Linking the old and the new would be a glass‐roofed atrium enabling viewing of the historic building from the south side. The atrium would house the café bar (Café Paradiso) and the toilets, including disabled access toilets. It is proposed that the café bar would become a high‐quality restaurant, a facility currently missing in Bovey Tracey.

The building’s central location will mean that the majority of Bovey Tracey residents will be within a mile and therefore within walking distance. A significant attraction of a local cinema theatre is the enhanced sense of community arising from meeting local friends and enjoying the same events. People from outlying areas, from neighbouring towns and villages such as Lustleigh, Chudleigh and Moretonhampstead, the Teign Valley, and from further afield, will be able to park in the town car parks less than 5 minutes’ walk away and free‐of‐charge after 6 pm. The development of the King of Prussia will therefore have the added bonus of drawing people who are new to the area, through the centre of town with its varied shops and services.

Community Benefit Society Bovey Tracey Paradiso Arts Ltd is a Community Benefit Society which is principally owned by the community

and has been granted charitable status by HMRC. As a charity, profits will be free from Corporation Tax as

we will be making money to help our charity’s aims and objectives, known as ‘primary purpose trading’. We

will also benefit from Business Rates Relief and can claim Gift Aid on donations. We have registered for VAT,

which means that we will charge VAT on sales and can recover the VAT paid on the purchase and set up costs.

We have been advised that running the café will support our primary purpose, and so it can be run as part of Bovey Tracey Paradiso Arts Ltd. It is possible that this, or other activity, may need to be part of a subsidiary trading company in the future, and the Board will keep this under review.

The Financial Conduct Authority (FCA) states that “the conduct of a community benefit society’s business must be entirely for the benefit of the community.” Any profit made by the community benefit society will fund arts and leisure projects for the benefit of the community.

What would the cinema theatre offer?

In the market research carried out by the project team, members of the public were asked which of the following would they pay to attend in Bovey Tracey. The responses were as follows:

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Current movies (4 weeks after release) – here the rationale is that if one shows movies earlier than 4 weeks after release, distributors want more days’ exclusive screening than would be reasonable for a community the size of Bovey Tracey. If the local audience knew that it would be shown a few weeks later, most would wait the extra weeks rather than travelling to another cinema.

Yes 91%

Older / classic movies. Investigations show that it would be very difficult for these to break‐even, and so it is proposed to show these through the Film Club…

Yes 80%

Film Club ‐ which chooses the films to be shown – this does not yet exist, but we would create one.

Yes 63%

Live and recorded relays – of theatre (Royal Shakespeare Company and National Theatre), opera and ballet (from Royal Opera House, Bolshoi, Met Opera New York, etc). These are hugely popular and we propose 30 showings a year – 10 live and 20 recorded.

Yes 71%

Parents and children’s theatre workshops on Saturday mornings Yes 47%

Live local theatre performances (eg Bovey Players). We would give the popular Bovey Players a permanent home in a state‐of‐the‐art theatre.

Yes 83%

Small scale touring theatre Yes 80%

Live music, poetry, comedy and cabaret evenings Yes 81%

Live sports coverage of major events – we would not do this – insufficient enthusiasm. Yes 38%

Also, very popular with 86% support is a café bar offering organic, locally sourced food and drink. This would serve meals to around 40 people, with a small amount of additional seating outside in the small garden.

Occupancy / load factor

According to the British Film Institute the average occupancy for cinemas in UK is around 29%. The occupancy is clearly a factor of the catchment area, population and the attractiveness of the offer from the cinema. Some independent local cinemas report occupancy significantly higher than this.

As part of our survey we asked residents how many times per year would they expect to attend. The results were as follows:

Current movies 6.6 Small scale touring theatre 2.7

Older / classic movies 3.9 Live music performances 4.0

Live and recorded relays 2.9 Poetry readings, comedy etc 2.6

Live local theatre 3.4 Guest speakers, debates, etc 2.3

The results pointed to potential high attendance for current movies, which supports our view that since people in TQ13 9 postcode currently only buy around 40% of the average number of cinema tickets for their socio‐economic groups, the presence of a cinema in Bovey Tracey will greatly expand the total market for cinema in the area.

It should be noted that cinema audiences are increasing nationally at 9% per year.

Gallery and artists’ studios

The proposed gallery, located in the former public bar of the pub, offers a good space for the display of pictures. Plans include wheel‐chair access between the various floor levels. One downstairs room could also

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be used for a heritage display, additional gallery, or as temporary workshop space. Four upstairs rooms will be made available as artists’ studios.

Proposed construction works

We plan to renovate the historic main building, restoring it broadly to its 16th century shape and enhancing the ability of visitors to appreciate this 500‐year old building, which would be sympathetically used as an art gallery and artists’ studios. We would demolish the mainly 20th century buildings at the rear, and construct a 100+ seat cinema theatre in the south‐east corner of the site. A glass‐roofed atrium, with toilets, plus food storage and kitchen facilities for the café bar, would link the original building and the cinema. The atrium would be heated by underfloor heating and the existing gas boiler for the historic building would be replaced by a new and enlarged boiler.

For the cinema theatre the heating / cooling would be via air conditioning equipment located under the raked seating.

The construction costs have been professionally developed by a quantity surveyor, and based on project management by the project team and the work being done by specialist contractors, rather than waiting for a main contractor to become available. Two of the directors of the project have many decades of construction experience between them – they will project manage the construction and development work. This has the advantages of offering greater speed and flexibility of construction, and better control of costs. The cinema equipment has been priced by a cinema operator with 30 years’ experience; the theatre equipment has been priced by Stage Electrics Ltd; and the café bar costs have been priced by a food and beverage entrepreneur with 40 years’ experience. We plan to lease this equipment rather than purchasing it.

Overall development budget Total VAT Net

Property purchase £323,400 £48,400 £275,000

Stamp Duty £0 £0 £0

Legal expenses £7,877 £1,313 £6,564

Architect, planning and building regs £5,200 £867 £4,333

Teignbridge DC planning etc £1,540 £1,540

Website £4,024 £671 £3,353

Formation costs and fund‐raising £11,965 £882 £10,150

Total purchase price £354,006 £52,132 £300,940

Ethex fee £7,212 £0 £7,212

Subtotal development costs £361,217 £52,132 £308,152

Construction work ‐ new build £200,628 £29,438 £171,190

Construction work ‐ heritage building £128,285 £15,271 £113,014

Consultancy fees £50,400 £8,400 £42,000

Sub‐total construction £379,313 £53,109 £326,204

Cinema equipment and air conditioning £132,500 £22,083 £110,417

Theatre equipment £111,136 £11,792 £99,344

Café bar equipment £36,000 £6,000 £30,000

Sub‐total equipment £279,636 £39,875 £239,760

Total development cost £1,020,166 £145,116 £874,116

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Start‐up costs amounting to approximately £40,000 were financed by a director’s interest‐free loan to be repaid in March 2018.

Project leadership

The project has developed from the spontaneous desire of the people of Bovey Tracey to improve the quality of residents’ lives. There are eight Directors of Bovey Tracey Paradiso Arts Community Benefit Society Ltd whose brief profiles are below. In addition, there is an Advisory Board drawn from the arts community in and around Bovey Tracey to advise the Board on policy issues. The Board and the Advisory Board will also manage eventually the distribution of surpluses for the benefit of arts and leisure facilities in the Bovey Tracey community. None of the directors has any conflicts of interest in relation to this project.

Since the project took shape in April 2017, the project leadership has achieved a huge amount in a short time

to realise the project, establish the Community Benefit Society, develop the business plan and apply for all

the necessary permissions. This shows that the group is effective and able to deliver this ambitious project.

Tony Pearce provided a director’s loan for the start‐up costs.

Jason Cole Jason Cole’s professional background is in designing, implementing and evaluating (all round managing) new and innovative safety education projects for children and adolescents. Before this he co‐ordinated and managed curriculum development and sports provision in a group of Birmingham primary schools. His passion lies in continuing to make Bovey a great place for families to live by helping to promote positive community and economic growth in the town. Currently he describes himself as a “house‐husband to three wonderful children and a beautiful wife”. He is also a Bovey Tracey school governor and has been a Bovey resident for 5 years.

Andrew Huckerby Andrew Huckerby is a hospitality entrepreneur with a career of over 40 years that spans the industry in both in the UK and UAE. Based in Devon for the last 25 years he has been involved, and often led, projects in both the charity and tourism community sectors in the county throughout this period. Andrew is currently a Business Studies module leader in Higher Education in Plymouth.

Su Kaye Su Kaye has a background in arts and crafts education management and programming. She is currently working as an adult learning curriculum specialist for Devon County Council, co‐ordinating the adult workshops at The Contemporary Craft Festival and is a trustee for The Devon Guild of Craftsmen. She has been involved with the Bovey Players, on the stage, providing lighting and sound and as a committee member. Prior to moving to Bovey Tracey 14 years ago she ran her own business as a designer maker in metal and co‐ordinated open arts and open studio events in Buckinghamshire. She is interested in cultivating community cohesion and equal access to arts, entertainment and wellbeing.

4. People

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Felicity King Felicity King is a chartered accountant. Having qualified in practice she has spent the last 25 years working in the not for profit sector. During that time, she has held a variety of roles with housing associations and charities, most recently as a finance director. She moved to Devon in 2003 and has lived in Bovey since 2013. She is keen to see further amenities being developed locally for residents.

David McGahey David McGahey was Director of Education for Buckinghamshire until 2000, having previously worked for five other local authorities. He was himself once a teacher. From 2001 he was Managing Director of a number of education businesses. He retired in 2014 as Director and Chief Executive of a market leading executive recruitment consultancy working with independent and maintained schools in the UK and with international schools world‐wide. He is a Governor of St George’s School, Luxembourg and a Director of St David’s Academy, Wales. Until he moved back to Devon in 2015 to live in Lustleigh, he was for many years Director/Chairman of an independent, community cinema, The Film Place in Buckingham. He is a member of Lustleigh Parish Council. David has an MA(Hons), an MA and a PGCE.

Tony Pearce Tony Pearce recently retired from a very varied career of over 40 years having worked in over 50 countries, and been chief executive officer of public and private companies and international organisations for 20 of those years. He is a Chartered Civil Engineer and a Chartered Manager. Over the last decade, he specialised in road safety, writing national road safety strategies for 5 countries and winning the Prince Michael International Road Safety Award. Jeanette and Tony moved to Bovey Tracey in 2012 and are keen on improving the facilities for residents. Their garden at Ashwell is open to the public each year for the National Garden Scheme.

Ken Swan Ken Swan has had a varied career, initially in the motorcycle industry, then as a computer engineer and latterly in the construction industry. The manipulation, designing and creating of soundscapes for local theatres has long been a passion. Working with a number of non‐ and semi‐professional theatre companies in Kent and London, Ken has directed, stage managed, designed, built and painted sets, and has been known to ‘tread the boards’! Currently working with two theatres in Teignmouth and our own Bovey Tracey Players he is enjoying a very busy retirement.

Stephen Willmore Steve Willmore’s career has been in product design and other technical areas within the electrical manufacturing industry, holding senior management positions since the mid‐80s. In 2013, he semi‐retired, but continues part‐time work world‐wide on the development of international standards, representing UK on European and international standards committees. Steve and his wife Diane moved to Bovey Tracey in 2014 and are passionate on projects that benefit of the community.

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Employment

Director and management

The various elements of the project will be coordinated by a general manager who will be a member of the

Board of Directors and oversee daily operations. The general manager will provide direct management of key

functional managers and staff, ensure overall delivery and quality of the offerings to customers, and liaise

between the Board, the stakeholders and the staff.

Gallery & studios

The gallery and studios would be managed by a full‐time manager from the completion of the works. In addition, volunteers would be recruited who would help to give advice and information about the work on display. In the case of an exhibition from the Bovey Tracey Society of Artists, these would be volunteer members of the Society.

Cinema Paradiso

The cinema would be managed by a full‐time projectionist / cinema manager assisted by a full‐time technician / assistant projectionist. The films to be shown would be selected by the cinema manager. Discussions have already commenced with the film distributor community to ascertain what level of release window would be possible in Bovey Tracey, given the mixed‐use space. In addition, there would be a box office manager and a large number (perhaps 50) of volunteer ushers; this helps build good community relations.

The box office manager would have a computer‐based system that allows booking on line. The cinema would need one full time venue and programme manager (who would also be in charge of non‐film events); this would be the senior position and require a salary of around £30,000. Two part‐time assistants to cover days off and annual leave, paid at a rate of £8.50 per hour would also be needed.

Small non‐profit venues tend to make good use of volunteer staff for stewards and front of house duties; this helps build good community relations. The cinema would need one full time venue and programme manager (who would also be in charge of non‐film events); this would be the senior position and require a salary of around £30,000. Two part‐time assistants to cover days off and annual leave, paid at a rate of £8.50 per hour would also be needed.

Café Paradiso

The Café Paradiso would be run by a full‐time manager, with part time staff employed as needed. The service could be expanded to a full‐service restaurant.

Jobs created

By the time the project is fully developed, it is foreseen that 6 full‐time and 11 part‐time jobs will be created:

Salaries FTE Full Part

Director / General Manager £26,000 1.0 1

Marketing officer £12,000 0.5 1

Admin / accountant £12,000 0.5 1

Cinema Paradiso £68,000 3.0 2 2

Gallery £12,000 0.5 1

Café Paradiso £123,781 9.0 2 9

Total staff costs £253,781 14.5 5 14

Staffing numbers, particularly for Café Paradiso, will be adjusted as necessary according to the level of business achieved. There will also be considerable scope for community participation. It is hoped that a large

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number of volunteers will be willing to be involved with, for example, being ushers in the cinema or assisting in the art gallery.

Governance

Bovey Tracey Paradiso Arts will hold Annual General Meetings, and additional one‐off general meetings if required. The accounts will be published annually, available to all members and on the society’s website.

Bovey Tracey Paradiso Arts is registered as community benefit society, an organisation which enshrines the values of voluntary and open membership, democratic member control, member economic participation, independence, education, and community. The Rules of the Society are based on a model provided by Co‐operatives UK (go to www.paradiso.org.uk/Shares/Paradiso‐Arts/).

The initial Board comprises the members who have worked on the development of the project so far. All members of the initial Board will retire at the first AGM in accordance with the Society’s Rules (but may offer themselves for re‐election). Thereafter, members of the Board will retire in a phased way over the following three years in accordance with the Rules of the Society. Further information regarding the composition of the Board, the appointment of its members and the regulation of its meetings etc, is set out in the Rules.

Gallery & studios

The most important element here is good lighting. In addition, for sales we would need ePOS equipment to

take credit cards.

Cinema equipment The equipment that has been specified for the cinema is as follows: projector with matching lens, roof mounting pod, Dolby 7.1 sound system and Speakers, cinema film server, cinema video scaler, automation controller, hard of hearing infrared system, screen surface, screen mount and machinery, screen masking, digital dimmer, control computer / TMS, satellite dish and equipment for handling live broadcasts via satellite, seating, air conditioning and electrical supply.

Cinema operations

Cinema pricing

We are proposing cinema pricing based on the following:

Film Adult: £8 Film Concession: £7 Film Young Person: £5 Event Cinema Live: £17.50 Event Cinema Encore: £12.50

Note, the revenue per ticket figures shown on page 17 are lower than these to allow for a proportion of concessionary ticket prices.

There will be a Movie Buffs club costing £45 per year for one or £80 for two people, in exchange for which members get 4 free tickets each and a 10% reduction on other purchases. We have estimated that 1000 people would do this.

5. Systems

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We will have special screenings for:

Young people

Parent / baby

Silver Screen (older movie goers)

Tickets to include a tea or coffee or soft drink and a piece of cake to take into the cinema.

Film Club

Some years ago, there was a film club organised by the local vicar showing movies in the Old Town Hall. We propose to work with the community to create a new film club that would decide what it would like to see. Older movies would be channelled through the film club.

Start Up Costs

In order to book films from any major UK distributor, a bond of usually £500 is needed. Therefore £8,500 should be allotted to this. In addition, notification of the Film Distributors Association is needed as well as a Premises Licence from Teignbridge Council.

Box Office

A booking and box office system is needed; there are 3 major systems all of which operate on the basis of a percentage of sales. These all interface with the venue website to process on line booking and automate marketing emails as well as providing the point of sale system. Spektrix, Ticketsolve and Databox are possible suppliers of comprehensive ticketing software systems, which can obviously be used for all events, and not just cinema.

Film Hire

The cost of booking films varies widely between films costing between 30% and 60% of net box office income against a £80‐£150 minimum guarantee – newer films cost more but a rule of thumb is that in the 3rd week of release, the cost is around 35% of the cost at release. We have allowed for a 45% hire cost for total film sales.

Event cinema costs on average 55% of net box office income plus £100 for satellite fees for live transmissions. These are booked direct by the venue by contacting Trafalgar Releasing for MET, NT Live, Bolshoi, Glyndebourne and RSC and More2Screen for ROH and other one‐off events.

Film Booking

Booking films is time‐consuming and it pays to have the advice of a third‐party agent who will have more information about the films and how they are likely to perform. They can also get a better deal with the film sales departments at the distributor by “buying in bulk” – booking the same film for several cinemas. Using the Independent Cinema Office for this service gives access to screenings and industry training events and a network of support – annual cost £5,000.

Service contracts

A standard projection equipment service contract is vital to prevent failures and provide support. Currently around £3,000 per year.

Professional Membership

Membership of the CEA (Cinema Exhibitors Association) is advisable. CEA lobbies the government and provides guidance and support. £1,500 per year.

Theatre equipment

The equipment that has been specified for the theatre is as follows:

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STAGE LIGHTING: Mains Distribution & Switching; Stage Lighting Power Cable; DMX Distribution & Control Cable; Production Lighting Boxes and Lighting Bars; Lighting Control Desk; 24 LED Lanterns.

AUDIO VISUAL SYSTEM: Facility Panels & Cabled Infrastructure; Control Rack; Communications; Radio Microphones; CD Player with Aux Input & Ipod Dock; Speakers; DSP ‐ Audio Processing; Amplification; Audio Console; Digital Stage Box; Stage Monitors; Show Relay & Paging System.

DEMOUNTABLE CURTAIN TRACKS & DRAPES: to enable flexible use of the space.

Electricity supply

3‐phase electricity supply with a total of 200 amps has been offered by Western Power. One phase 64 amps would be used for the cinema equipment; one phase 64 amps for the theatre, leaving 64 amps on one phase for everything else.

Café bar

The part of the project dealing with food handling and preparation equipment is being handled by a specialist in Food & Beverage provision.

The concept of the café bar is that it would provide a good quality café in support of the art gallery and the cinema for much of the day, but at lunchtime and in the evening, it will offer a high‐quality restaurant which is currently lacking in Bovey Tracey. This would offer diners organic locally‐sourced dishes. In style, this would be similar to the highly praised Riverford Kitchen, at lunchtime offering seasonal dishes with creative side dishes and one meat dish served to the table. For dessert, diners will be invited to the kitchen to choose from a tempting selection. The concept for supper is a slightly more lavish affair with three main dishes and a short but inviting wine list to complement the supper menu.

Details of the foreseen numbers of diners and the resulting income are given in Annex 3.

Community engagement

During the development of this project, it has benefitted from extensive community engagement. The major effort at entering dialogue with the community was launched at the Bovey Tracey “Green Man Festival” on 29 April. At this we launched a public opinion survey on what the public would like from a possible development of a community cinema, theatre and related facilities. We interviewed around 350 people, and then the survey has been continued online on Surveymonkey (see results at Annex 2). Eventually 7.1% of the population has completed this questionnaire which shows that the scheme is supported by 98% of the respondents. There is massive public support, not only for the proposals, but also for rescuing the decaying historic building, the King of Prussia. The public enthusiasm for these proposals has meant that they have been spread largely through word‐of‐mouth within the community.

At the end of June there was a press launch and we achieved page 1 and 2 coverage in the local press (Mid‐Devon Advertiser), also the Herald Express. We also had 2 ½ minutes on the BBC Spotlight local news – www.paradiso.org.uk/Bovey‐Paradiso‐attracts‐considerable‐media‐coverage/Latest‐News/

In addition, we have produced a short promotional video based on vox‐pop interviews at the Contemporary Craft Festival – this can be viewed on our home page at www.paradiso.org.uk.

Consequently, there is very wide awareness of the project and considerable interest in the community for donating or investing.

On 15 July, we held our first fund‐raising event “Laughter on the Lawn” at which two local comediennes and a singer performed in the garden of Ashwell to a capacity audience of 85 people. A good number of the audience expressed interest in investing in the project. A second fund‐raising and awareness‐raising event

6. Promotional activities

14

was held in October ‐ “Trust the Bucket” hosted by comedian and author Tony Hawks was attended by 90 people. You can read about these at http://www.paradiso.org.uk/Latest‐News/

Beyond this we have a list of around 1,000 supporters who have expressed an interest in helping the development of the project and investing. These receive periodic updates on progress. Awareness is also being built through the popular Facebook page “What’s on Bovey”.

Our website at www.paradiso.org.uk attracts a lot of visitors and we are also on Facebook (BoveyParadiso) and Twitter (BoveyParadiso). The project has been described on WhatsonBovey Facebook page as, “the best thing that’s happened to Bovey Tracey in decades”.

The initial presentations for promoting the share offer were made at the Summer Show on 19 August. 100 people took copies of the draft share offer and there was a great deal of interest from potential investors and donors. Of the people who visited our stand, more than 90% were very enthusiastic about the project. We have their contact details and will keep them informed about the share offer and the crowd‐funding.

In addition, Bovey Tracey hosts the Nourish Festival on 2 September (see www.nourishfestival.org). Nourish is a project jointly created by The Cheese Shed, the Contemporary Craft Festival and Devon Guild of Craftsmen. During the Festival, we used the King of Prussia building in order to attract interest in investments in, and donations to this project. We talked with hundreds of people, and handed out 250 copies of the share offer prospectus and application form.

At the end of October, the share offer was boosted by a new and very visible campaign savethekingofprussia.com. This was based on the theme of “Long live the King” – the idea that the community could save the King of Prussia from being lost as a community asset and converted into a dwelling. This transformed our share offer: in the first two months we raised our first £100,000 in shares; with the “Long live the King” campaign in the next two weeks we raised the second £100.000.

At the end of March 2018, the final share allocation was made and a total of £464,100 has been invested

by 323 investors. Apart from the £100,000 investment from Big Society Capital, 90% of the investors and

of the amount invested has come from the community. In addition, over 200 people have donated – so

more than 500 people in our community are sharing in this community project, tangible evidence of the

engagement of the community in this project. This is a true community project.

Gallery & studios

Once operational, the gallery and studios will be marketed through the internet, email lists, Facebook (The Paradiso and the “What’s on Bovey” pages) and in collaboration with the Devon Guild of Craftsmen. These are regarded as suitable media to address the target audience.

Cinema and Theatre

The cinema and theatre programme will be produced for 2‐3 months ahead. It could be circulated with The Cottage magazine. It would be available on the Paradiso website, Facebook page and promoted through other social media. The initial setting‐up should generate a lot of PR interest.

Café bar

The Café Paradiso would have a separate promotional budget. It is foreseen that it will be stylish and up market. PR activities are likely to include a variety of social media including Instagram.

15

Gallery & studios

The gallery and studios would be the first to start operation on completion of the renovation works. It is

foreseen that the gallery would have special exhibitions for 40 weeks of the year. The studios are of various

sizes and have been priced on the basis of similar facilities elsewhere. It is assumed that these would have

80% occupancy. We have assumed a footfall of 20,000 per year for the gallery (cf Devon Guild of Craftsmen

120,000).

Art Gallery Attendees

Gallery 40 weeks £100 £4,000 20,000

Commission on picture sales 20% on 20 sales @ £ 300 x 40 weeks £48,000

Gallery shop SOR sales £3.75 x 5000 @ 50% SOR £9,375

Studio 1 £70 pcm 80% occ 12 mths £672

Studio 2 £120 pcm 80% occ 12 mths £1,152



Annual income from art gallery £64,495 20,000

Gallery manager (part‐time) £15,000

Net income £49,495

7. Finance

16

Cinema and Theatre

Our estimates have been based on other independent cinemas in the area. Our consultant has massive

experience of the financing of these and we have good confidence in these numbers.

Cinema Paradiso Events / year

Av ticket price

Seats sold

Occupan

cy

Attendees

Movie Buffs membership 1 £40 300 £12,000

Current movies 640 £6.50 40 £166,400 34% 25,600 Film Club 25 £6.50 50 £8,125 42% 1,250 Parent and Baby Screenings 12 £6.50 25 £1,950 21% 300 Silver Screen Screenings 50 £5.50 50 £13,750 42% 2,500 Young Person Screenings 50 £5.00 35 £8,750 30% 1,750

Less: 45% to film distributor ‐£89,539 Screened events ‐ Live 36 £17.50 95 £59,850 81% 3,420 Screened events ‐ recorded 10 £12.50 60 £7,500 51% 600

Less: 55% + (£100 x 36) ‐£40,643 Pearl & Dean £5,000 Saturdays: drama workshops 50 £10.00 15 £7,500 750

Less: 50% ‐£3,750 Live local theatre 10 90 £0 76% 900 Touring theatre 10 £10.00 80 £8,000 68% 800

Less: 30% ‐£2,400 Music, poetry, comedy etc 20 £10.00 80 £16,000 68% 2,000

Less: 30% ‐£4,800 Workshops, speakers etc 12 £10.00 60 £7,200 51% 960

Less: Speakers' expenses ‐£1,200 Total 925 £179,694 40,830

Salaries

Projectionist / cinema manager £30,000

2 Technician / assistant projectionist £20,000

Box office manager £28,000

Total salaries £78,000

ICO, transport, memberships £11,000

17

Café bar

The café bar would serve visitors to the art gallery and cinema, and, when fully operational, would offer a

full dining restaurant operation throughout the day. Details of the break‐down of the projected business by

day of the week and by month, and the consequent staffing variations are given in Annex 3.

Café Paradiso

Food & Beverage

£300,638 Attendees

51,227

Alcohol £122,945

Other takeaway £5,750

Total Café Income £429,333

Cost of Sales

Food & Beverage £75,160

Alcohol £30,736

Other £2,875

Total Cost of Sales £108,771

Gross Margin £320,562

Payroll Cost £123,781

Operating budget

Item Amount

Sales: Cinema Paradiso £323,525

Gallery £49,495

Café Paradiso £429,333

£802,353

Cost of sales £262,102

Salaries £253,781

Overheads £63,821

Financing costs £16,723

VAT £97,390

Profit £108,538

18

Cash flow forecast

19

The cash flow forecast makes very modest assumptions about income from crowd‐funding and from grants. Further information on grants is given on page 23. We believe therefore that the cash flow forecast is on a very conservative, pessimistic basis, and that these estimates are likely to be exceeded.

Profit & Loss and Balance Sheet

Based on these figures, the following are the forecasts of Profit and Loss and the Balance Sheet for the next four years.

Profit & Loss forecast

Dec‐17 Dec‐18 Dec‐19 Dec‐20 Dec‐21

Fundraising activities

Donations and Gift Aid £18,781 £6,219

Fund‐raising events £1,759 £2,346 £0 £0 £0

Grants £236,914 £14,400 £0 £0

Gross margin from trading activities

Cinema Paradiso £19,856 £175,300 £180,559 £185,975

Art gallery & studios £5,774 £44,546 £45,882 £47,258

Café Paradiso £37,399 £330,179 £340,085 £350,287

Total income £20,540 £308,508 £564,424 £566,525 £583,521

Expenses

Development costs

Project development £34,524

Ethex fee £7,212

Construction costs £171,190

Cinema equipment, seats & air conditioning £110,417

Theatre equipment £99,344

Other expenses

Salaries £45,963 £261,394 £269,236 £277,313

Overheads £18,287 £63,821 £65,736 £67,708

Operational leasing £1,120 £3,360 £3,360 £3,360

Interest on shares £13,922 £13,922 £13,225

VAT ‐£138,114 £49,637 £100,312 £103,321

Depreciation £28,176 £28,176 £28,176 £28,176

Total expenses £34,524 £343,594 £420,310 £480,741 £493,104

Net profit / loss ‐£13,984 ‐£35,086 £144,115 £85,784 £90,417

20

Balance sheet Dec‐17 Dec‐18 Dec‐19 Dec‐20 Dec‐21

Freehold Property £278,547 £278,547 £278,547 £278,547 £278,547

Investment in property £171,190 £171,190 £171,190 £171,190

Total Fixed Assets £278,547 £449,737 £449,737 £449,737 £449,737

Current assets

Cash £18,900 ‐£26,230 £146,061 £236,819 £333,370

Debtors: VAT £52,588

Other debtors £543

Current assets £72,031 ‐£26,230 £146,061 £236,819 £333,370

Liabilities

Loans and borrowings ‐£79,791

Other creditors ‐£421

‐£80,212

Net current assets / liabilities ‐£8,181

Net assets £270,366 £397,278 £741,859 £923,374 £1,116,476

Financed by:

Share Capital £284,350 £464,050 £464,050 £440,848 £418,805

Profit & loss account ‐£13,984 ‐£35,086 £144,115 £85,784 £90,417

£270,366 £397,278 £741,859 £923,374 £1,116,476

Risk analysis

Planning

Planning permission and listed building consent were awarded on 22 March 2018. Risks associated with this aspect have now been overcome.

Time over‐runs

In common with much of Devon, income is linked to higher visitor numbers over the summer period, and therefore it was hoped that the construction and conversion works would be completed in time for the 2018 summer visitors. The cinema will provide a wet‐weather attraction, but otherwise the peak months for cinema‐going are December to February. Unfortunately, the 2 months’ delay in obtaining planning permission has put back the opening until September 2018.

The plan for the construction work is that we will not employ a main contractor. Two of the directors with construction experience will manage the project directly and will employ sub‐contractors for each of the operations. This will mean much shorter time‐scales, and this also will save much of the construction cost. This will provide greater flexibility, lower costs, greater speed and allow use of local sub‐contractors.

Construction estimates

Whilst every care has been taken to ascertain the best estimates of the cost of developing the King of Prussia, we cannot be sure of the costs until we have tendered the construction works. To be prudent we have included a level of contingency within the planned budgets to allow for matters that may arise.

Income estimates The income estimates for the cinema, the café bar and the art gallery have been done by leading experts in

their field. All our estimates have been made by experts – for example:

21

the cinema costs and operation figures have been done by the manager of an independent cinema who has 30 years’ cinema experience;

the café bar figures have been done by an expert who has 40 years’ hospitality entrepreneurship experience; and

the art gallery estimates have been done by an expert who is a Trustee of the Devon Guild of Craftsmen and of the Contemporary Craft Festival in Bovey Tracey.

We believe that the income estimates are achievable. For example, the café in the Devon Guild of Craftsmen has approximately £260,000 turnover based on 7 day a week opening (10:00‐17.30). Our café bar will also offer dinner and be open till 23:00, but our figures are only estimates and there is a risk that income will fall short, particularly in the early years of operation. Our feeling is, however, that the cinema estimates may well be exceeded. It is vital to maintain a close dialogue with customers through surveys to ensure that the cinema and the café bar are offering what customers wish to buy.

Insufficient funds raised

Fund raising from the share offer and donations has gone well, and we do not currently foresee a situation where insufficient funds may necessitate needing to borrow.

Staffing

All businesses depend on recruiting the right people to make the business work. Two key personnel are the cinema manager and the café bar manager. The cinema manager will have many years of cinema experience, and it is vital that we create the right conditions to recruit the right person for this key role. There is a larger potential supply of well qualified individuals for the café bar manager role, and some possible candidates have already been identified.

Capital structure

Bovey Tracey Paradiso Arts Ltd has been registered with the Financial Conduct Authority as a Community Benefit Society that has been granted charitable status by HMRC, and will serve the broad interests of the community. It will be primarily owned by the community and any profit made will fund arts and leisure projects in the community. The total cost of the project is around £874,000, and we aim to obtain this through a combination of community shares, grants and crowd‐funding.

Donations and Crowd‐funding

The share offer has been assessed as ethical and is being marketed through the Ethex Investment Club platform. The shares will give a return on investment of 3% (depending on the business making profits). The share issue was launched on 1 September and was extended from an initial close on 17 November to 28 February 2018. The minimum investment is £100 and the maximum £40,000. Having fulfilled their requirements, we have received £100,000 from Big Society Capital for shares withdrawable after 10 years.

The foreseen sources of funds are as follows:

Shares £464,100 53.1%

Donations £28,094 3.2%

Grants needed £381,922 43.7%

£831,140

Social Investment Tax Relief

The government wants to encourage social investment, and so has made tax relief available for community businesses. Bovey Tracey Paradiso Arts Ltd is a charitable Community Benefit Society which will be running a commercial trading operation with a view to making a profit. Investments by individuals are be eligible for tax relief under the Social Investment Tax Relief scheme (SITR), reducing your tax liability by 30% of the value of your shares (eg a £1,000 investment reduces your tax bill by £300). The shares of free of Inheritance Tax after 2 years. See the table below:

22

Initial investment made SITR @30% from HMRC Final cost to you

£100 (minimum) £30 £70

£1,000 £300 £700

£40,000 (maximum) £12,000 £28,000

The Society has received from HMRC Advance Assurance that the share offer is eligible for SITR.

The Standard Mark

This business plan and the share offer document have been approved for the Community Shares Unit Standard Mark. The Standard Mark is a quality assurance scheme for community share offers that provides the public with an independent way of checking the authenticity of a share offer and reassurance that it meets national standards of good practice.

For more information about community shares, the Community Shares Standard Mark and the Community Shares Unit go to: www.communityshares.org.uk.

The share offer has been assessed as ethical and it will be marketed through the Ethex platform.

Grants

Beyond this, grants are being sought from The Greater Dartmoor LEAF fund, the Architectural Heritage Fund, the Arts Council of England and the Heritage Lottery Fund. Other funders have been identified and applications are being made.

Although we are confident of securing funding from some or all of these, we have been conservative in our financial projections and have only included two of them in our forecasts.

Greater Dartmoor LEAF

Greater Dartmoor Local Enterprise Action Fund (LEAF) is a partnership of local people who care about Dartmoor and the surrounding area, and are actively involved in its development. LEAF supports cultural and heritage projects and the development of employment. We have made an application for £93,000 towards the refurbishing the heritage building.

Architectural Heritage Fund

Our application for half of the cost of the consultancy fees of the architect, the archaeologist and the cinema consultant amounting to grant of £18,500 has been accepted.

Heritage Lottery Fund

The Heritage Lottery Fund (HLF) supports projects that give a new lease of life to historic buildings. In this case, we propose to remove much of the Victorian additions to the King of Prussia in order to improve public access to, and understanding of the original 16th century building. We are applying to HLF for £46,000 support for the repair and transformation of the historic building.

Arts Council

The Arts Council Grants for the Arts (GFTA) programme is a Lottery‐funded grant programme for individuals, arts organisations and other people who use the arts in their work. We are applying for assistance in developing the art gallery and artists’ studios elements of the project.

Crowd‐funding

Considerable interest has been expressed in the community about making donations to the project. Donors will benefit from a range of benefits including free admission to movie screenings depending on the size of their donation, for example:

23

Donate £60 ‐ Film Buffs Card – This is our annual membership card that offers 4 free movies plus 10% off everything else including café purchases (except live screenings).

Donate £300 – The Ultimate Cinema Pass ‐ See all the films at Bovey Paradiso for a whole year! In numbers: 50 weeks, average 2 films a week makes it £3 per film.

Donate £800 ‐ Private film screening of the movie of the donor’s choice for you and 80 friends.

Donate £1000 ‐ Private event for you and your friends.

Over £28,000 has so far been raised through crowd‐funding.

Longer view

As shown in the profit and loss forecast on page 20, it is foreseen that from 2019 this project will make an annual surplus. Some money will be reserved to repay shares on request. In addition, in 2027 the matching capital from Big Society Capital will need to be repaid.

Any remaining surplus will be put in a fund to fund arts and leisure projects in the Bovey Tracey area. The Board and other advisers will review and make recommendations on such project funding.

24

Annex 1 – Audience Mapping research

Audience Mapping research of current attendance in TQ13 9 postcode.

Population Segmentation

%ag

e of

for

TQ

13 9

Popu

latio

n in

TQ

13 9

Total number of tickets by artform Total number of tickets by artform

Film

Mus

ic

Dra

ma/

play

s

Mus

ical

The

atre

Visu

al A

rts

Wor

ksho

ps

Film

Mus

ic

Dra

ma/

play

s

Mus

ical

The

atre

Visu

al A

rts

Wor

ksho

ps

Home and Heritage 26% 2038 5.1% 19.0% 20.8% 11.9% 0.1% 1.2% 104 387 424 243 2 24

Commuterland Culturalbuffs

25% 1960 6.2% 20.1% 23.7% 10.1% 0.1% 1.3% 122 394 465 198 2 25

Dormitory Dependables

23% 1803 5.8% 16.6% 17.6% 13.6% 0.1% 1.8% 105 299 317 245 2 32

Trips and Treats 15% 1176 5.5% 14.1% 15.1% 16.9% 0.1% 2.1% 65 166 178 199 1 25

Up our Street 8% 627 7.0% 18.5% 17.7% 17.4% 0.1% 1.8% 44 116 111 109 1 11

Heydays 2% 157 6.5% 19.3% 15.3% 18.6% 0.1% 2.1% 10 30 24 29 0 3

Experience seekers 1% 78 10.1% 19.2% 24.6% 6.2% 0.1% 2.4% 8 15 19 5 0 2

Facebook Families 1% 78 4.5% 12.3% 12.7% 18.6% 0.1% 2.9% 4 10 10 15 0 2

Kaleidoscope Creativity

0.5% 39 6.9% 19.5% 22.1% 6.4% 0.3% 1.8% 3 8 9 3 0 1

Metroculturals <1% 0.5% 39 6.7% 22.2% 29.3% 3.1% 0.2% 1.0% 3 9 11 1 0 0

64.3% 180.8% 198.9% 122.8% 1.3% 18.4% 466 1434 1568 1046 8 127

Percentage of film ticket sales by each population segmentation nationally and TQ13 9

Film tickets sold Number of tickets

Segmentation Population Nationally TQ13 9 2016

Based on national

trend

Commuterland Culturalbuffs 1960 21.0% 6.2% 122 413

Dormitory Dependables 1803 17.0% 5.8% 105 308

Metroculturals 39 14.0% 6.7% 3 6

Home and Heritage 2038 12.0% 5.1% 104 245

Experience Seekers 78 11.0% 10.1% 8 9

Trips and Treats 1176 9.0% 5.5% 65 106

Up Our Street 627 5.0% 7.0% 44 31

Kaleidoscope Creativity 39 4.0% 6.9% 3 2

Facebook Families 78 2.0% 4.5% 4 2

7838 458 1122

It can be seen, therefore, that if the TQ13 9 audience behaved in a similar way to the national average film

ticket sales would be 245% of current figures.

For the Audience Agency segmentation definitions please see

https://www.theaudienceagency.org/audience‐spectrum/profiles

25

Annex 2 – Our market research

The following is the questionnaire used in the research with the results achieved. 7.1% of the population of

Bovey Tracey responded.

Research is being carried out on whether there is a demand for a small 100 seat community cinema

theatre in Bovey Tracey. Please answer these 5 questions.

Q1. Do you think the community would benefit from a community cinema theatre in central Bovey Tracey?

Yes 98%

Q2. Which of the following would you pay to attend in Bovey Tracey?

Current movies (4 weeks after release) Yes 91%

Older / classic movies Yes 80%

Film Club ‐ which chooses the films to be shown Yes 63%

Live and recorded relays – of theatre (Royal Shakespeare Company and National Theatre), opera and ballet (from Royal Opera House).

Yes 71%

Parents and children’s theatre workshops on Saturday mornings Yes 47%

Live local theatre performances (eg Bovey Players) Yes 83%

Small scale touring theatre Yes 80%

Live music, poetry, comedy and cabaret evenings Yes 81%

Live sports coverage of major events Yes 38%

Workshops, guest speakers, debates, etc Yes 68%

Café / bar – organic, locally sourced food and drink Yes 86%

Q3. Assuming there are things you want to see, how many times a year do you think you would go to the

following? Please enter your best guess!

Current movies 6.5 Small scale touring theatre 2.7

Older / classic movies 3.9 Live music performances 4.0

Live and recorded relays 3.0 Poetry readings, comedy etc 2.6

Live local theatre 3.4 Guest speakers, debates, etc 2.3

Q4. What else would you like to see at a community cinema theatre? Any suggestions, please write on the

back of this questionnaire.

Q5. This cinema theatre would be community‐owned. Would you, in principle, be interested in being a

shareholder, founder or otherwise helping to finance its setting up?

Yes 44%

26

Annex 3 – Café bar operation The volume of business in the café bar will vary by time of day, by day of the week and by month of the

year. The estimates for the volume of business and the income have been based on the following.

An indication of the foreseen business during the day is as follows:

Café customer Covers 15 20 15 10 0 60 Spend per head

inc VAT

Food £5.00 £5.00 £5.00 £5.00 £5.00

Beverage £3.00 £3.00 £3.00 £3.00 £3.00

Alcohol £0.00 £3.00 £2.00 £6.00 £6.00

Income £120.00 £220.00 £150.00 £140.00 £0.00 £630.00

Restaurant customer Covers 0 15 0 30 0 45 Spend per head

inc VAT

Food £5.00 £15.00 £5.00 £25.00 £5.00

Beverage £3.00 £3.00 £3.00 £3.00 £3.00

Alcohol £0.00 £3.00 £2.00 £6.00 £6.00

Income £0.00 £315.00 £0.00 £1,020.00 £0.00 £1,335.00

Bar customer Covers 0 10 10 20 10 50 Spend per head

inc VAT

Food £3.00 £3.00 £3.00 £3.00 £0.00

Beverage £1.50 £3.00 £3.00 £1.50 £0.00

Alcohol £3.00 £0.00 £4.00 £6.00 £6.00

Income £0.00 £60.00 £100.00 £210.00 £60.00 £430.00

Cinema Customer Covers 15 30 20 30 10 105 Spend per head

inc VAT

Food £2.50 £2.50 £2.50 £2.50 £2.50

Beverage £3.00 £3.00 £3.00 £3.00 £0.00

Alcohol £3.00 £0.00 £4.00 £6.00 £6.00

Income £127.50 £165.00 £190.00 £345.00 £85.00 £912.50

All customers Food & Beverage £202.50 £655.00 £290.00 £1,175.00 £25.00 £2,347.50

Alcohol £45.00 £105.00 £150.00 £540.00 £120.00 £960.00

Total £247.50 £760.00 £440.00 £1,715.00 £145.00 £3,307.50

27

This will vary by day of the week: And by month of the year:

This will call for flexible staffing arrangements but will create a lot of part‐time jobs:

Payroll based on maximum turnover Cost Maximum

Hours 1000-1200

1200-1500

1500-1800

1800-2100

2100-2300 inc NIC

Daily Cost

Manager 8 £22,000.00 pa £90.00 Supervisor 8 £10.00 ph £80.00 Supervisor 8 £10.00 ph £80.00 Staff 1 6 £9.00 ph £54.00 Staff 2 6 £9.00 ph £54.00 Staff 3 6 £9.00 ph £54.00 Staff 4 3 £9.00 ph £27.00 Cook 1 8 £22,000.00 pa £90.00 Cook 2 8 £10.00 ph £80.00 Kitchen 1 8 £9.00 ph £72.00 Kitchen 2 8 £9.00 ph £72.00 Total daily cost £753.00

Payroll as % turnover 35.1%

These figures include salary, NIC and on‐costs.

0%

20%

40%

60%

80%

100%

Mon Tue Wed Thu Fri Sat Sun

Variation by day of the week

0%

20%

40%

60%

80%

100%

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Variation by month

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