Split Restaurant and Nightclub

Marketing Plan
HFT 4502
Group 8
4 December 2020
 Jaida Johnson
Emily Lighthall
Anna Summerlin
Eric Chiotti
Grant Huszar
Kevin Morrissey
 Table of Contents

1.0 Executive Summary 1

2.0 Company Summary 3
2.1 Mission Statement 3
2.2 Company Objectives 4
2.3 Keys to Success 4
3.0 Product Description 5
4.0 SWOT Analysis 7
4.1 Strengths 7
4.2 Weaknesses 7
4.3 Opportunities 7
4.4 Threats 8
5.0 Market Analysis 9
5.1 Segmentation 9
5.2 Location Analysis 11
5.3 Industry Analysis 13
5.4 Competitive Analysis 15
6.0 Target Market Communication Strategy 18
6.1 Marketing Objectives 18
6.2 Target Marketing Strategy 18
7.0 Budget, Cost, and Controls 20
7.1 Budget 20
7.2 Cost Analysis 20
7.3 Controls 21
References 23
1.0 EXECUTIVE SUMMARY
The name of our establishment is Split. Split is primarily a single-location, full-service restaurant
that, on some days of the week, fully converts into a nightclub. This restaurant will be located on
Madison Street within Collegetown in Tallahassee, Florida. Split, unlike any other establishment
within the area, is unique because it transforms into a nightclub, providing a dining experience
like no other. Split’s main product offerings are our high-quality food and beverages, which are
separated into various categories by menu. Our overall mission is to immerse our guests with an
unforgettable dining and clubbing experience. We are committed to providing an environment
unlike any other through our food, beverages, art, and music. Split’s company objectives
primarily highlight our sales goal (between $200,000 and $250,000 for the first three years) and
maintaining good relationships with both restaurant employees and customers. In particular, we
want to emphasize increasing consumer engagement through social media channels to reach new
target markets. Our keys to success in achieving these goals include devising and implementing a
strong business strategy, sustaining relationships with both customers and employees to generate
loyalty, and consistently being proactive in both the community and on social media.

Our products—food and beverages—can primarily be categorized into four separate menus:
Alcoholic Beverages, Non-Alcoholic Beverages, the Brunch Menu, and the Dinner Menu. Each
menu has distinct product offerings and price ranges. As the name implies, the Alcoholic and
Non-Alcoholic Beverage menus focus on drinks. In particular, the Alcoholic menu is very
important to Split’s value proposition because our main target markets are adults. Again, as the
name implies, the Brunch and Dinner menus focus on the two meals that Split serves: brunch and
dinner. In comparison with the beverage menus, the price ranges for the meal menus are much
higher.

We have identified many of our establishment’s strengths, weaknesses, opportunities, and

threats. Our strengths highlight our unique concept and versatility in holding events and sales
promotions. Split’s weaknesses include low table turnover rates, higher prices than competitions,
and the need for reservations. Our opportunities include creating new events and sales
promotions with the purpose of reaching out to new target markets. Finally, our biggest threats
are other establishments within Tallahassee (particularly within Collegetown) that have similar
value propositions. This includes well-known and loved establishments like Madison Social and
Recess.

When determining our market segments, we researched the areas that most Florida State students
resided in before moving to Tallahassee. We decided these areas were Tallahassee, Jacksonville,
and Tampa. Numerous family mixes live in these areas and make up the guests of Split and all
play a crucial part of how we market the business. By having Split in the heart of Collegetown,
we can compete with other bars and restaurants, but no business combines the two. By having
this concept, we are able to target guests of all segments and achieve all marketing goals and
objectives.

For Split, we believe that we would achieve the most success if we focused our marketing
strategy on social media and participating in local events. Due to the fact that our target
segments tend to be very active online in social media, this will be our primary focus. Through
marketing channels like Facebook and Instagram, we believe we will be able to effectively reach

1
our target segments. Our budget will be fairly inexpensive due to the fact that our general
manager will be in charge of the marketing plan. We plan on allocating a majority of our
marketing budget towards the social media channels, which will give us a total of $18,789 a
year. The rest of our marketing expenses will go towards our participation in local events around
Tallahassee which we expect to cost us $10,000, leaving us with a total expense of $28,789 for
our marketing plan.

2
2.0 COMPANY SUMMARY:
Our establishment’s name is Split. It will be located in the Collegetown area in Tallahassee,
Florida. We will be located more specifically on Madison Street. Our establishment is primarily
a single-location, full-service restaurant that can also serve to function as a nightclub. Split’s
concept, which combines high-class dining with the thrill and excitement of a nightclub, is
unique to the Tallahassee area. We strive to provide our guests with an unforgettable and
immersive dining experience through our superb products, atmosphere, and service. Most of our
competitors, particularly within Collegetown, offer either a restaurant or club experience, with
little in between. Our establishment’s edge is that we offer both. Our biggest competitor in this
category is Madison Social, which is also located within Collegetown and has similar product
offerings as Split. We differentiate in the quality and variety of our products, as well as on the
concept overall—the restaurant to nightclub experience is truly unique to our establishment.
Both our food and drink menus are not only bigger but more diverse, and are able to cater to a
wide range of tastes and diets. Other competitors, like convenience stores such as CVS, do not
provide any meaningful experiences for customers. While they sell alcohol and food, it is
oftentimes low-quality, and the consumer has to prepare the products themselves (for example,
the customer has to heat up microwaveable dinners). Split offers the best of both worlds all while
providing high-quality products and services.

Our main product offerings are our food and beverages, which are split into several categories.
These categories are Alcoholic Beverages, Non-Alcoholic Beverages, the Brunch Menu, and the
Dinner Menu. Our food and beverage offerings utilize locally-sourced products whenever
possible and are sure to suit a variety of tastes. Monday through Wednesday, Split will just be a
restaurant that serves quality food, but Thursday through Sunday is when the restaurant will turn
into a club. Our hours for lunch will be from 10am-4pm, and dinner will be from 5pm-11pm.
Thursday through Sunday is when the nightclub scene will come into effect. Starting at around
10:30, the restaurant will slowly start turning into a club. The curtains will start closing, the
lights will get a little dimmer, the music will get louder, until the restaurant is a full blown
nightclub. The hours of the club will be from 11pm-2am. After 11pm, entrees will no longer be
served, but customers will still be able to order appetizers. Beverages will be served all night.
Since the restaurant is located in Collegetown, we are aware that a significant portion of our
clientele will be college students. We plan to utilize this to our advantage. For example,
Thursday nights tend to be a big night for college students as many of them go out on this day.
For Thursday’s, Split will be known as ‘Thirsty Thursdays”, where the first drink they order, the
second one will be free. Another idea we plan to utilize effectively is brunch. Brunch will be on
Saturdays and Sundays. For Saturdays, whenever there is a gameday, we will have a daytime
tailgate that will include bottomless mimosas, Bloody Marys, specialized brunch food options,
and more. For the daytime tailgate, we will have TVs throughout the restaurant that will play the
Florida State football game, and this can be a place where people can eat and drink prior to the
game beginning. If people do plan on going to the game, this is very convenient for them as the
restaurant would be walking distance to the stadium. Split is unique and offers a fun and fresh
atmosphere that is not really in the area in Tallahassee.

2.1 Mission statement: Our mission is to immerse our guests with an unforgettable dining and
clubbing experience. We are committed to providing an environment unlike any other through
our quality food, beverages, art, and music.

3
2.2 Company objectives:
· Maintain averages sales between $200,000 and $250,000 for the first three years
upon opening.
· Reduce employee turnover 10%-13% by within the first four years.
· Sustain an average of 1000 and 1500 new rewards program members per year for
the first three years.
· Increase consumer engagement with social media channels (Facebook and
Instagram) by 10% within the first year of opening.

2.3 Keys to success:

· Utilize data to devise and implement a strong business strategy.
· Create and sustain meaningful relationships with customers to generate loyalty.
· Successfully train and empower employees to create a strong company culture.
· Be a proactive presence in both the community and online through social media.

4
3.0 PRODUCT DESCRIPTION
Due to the fact that Split is a full-service restaurant, all of the establishment’s product categories
are related to food and beverages. We have identified four main product categories: alcoholic
beverages, non-alcoholic beverages, the brunch menu, and the dinner menu. Each of these
categories have different products that satisfy the same general need: to please customers. As
such, the products within each category have similar price ranges that are all justified by the
quality of the products sold as well as by the overall dining experience.

3.1 Alcoholic Beverages

As the title implies, this product category focuses on the alcoholic drinks offered at our
restaurant. Split offers a variety of alcoholic beverages to suit their customer’s tastes. This
encompasses beers, wines, whiskeys, and mixed drinks. This product category can be further
divided amongst brunch and dinner menus. The brunch alcoholic beverage menu is a smaller list
and encompasses typical drinks like mimosas and Bloody Marys. The price range for the brunch
drinks is generally between $9 and $12. On special occasions, like holidays or game days, the
menu may be extended, or there may be special deals. The dinner menu offers a wider variety of
products and is more expensive. This encompasses both mixed drinks and branded beverages
(like wines, beers, and whiskeys). The price range for these drinks is between $25 and $80 plus.
The drinks on this menu are also available when the restaurant shifts into a club. While the price
points for both of these menus may seem high, the price is justified considering the quality of the
products being served.
Split’s target markets include both young and middle-aged adults, so it makes logical sense to
provide the option for alcoholic drinks to accompany the consumers’ meals. Also, when the
restaurant shifts into a nightclub, alcoholic drinks are typically expected to be served.
Furthermore, some of these drinks are meant to compliment some of the items being served on
the brunch or dinner menu: for example, pairing wine with certain entrées.

3.2 Non-Alcoholic Beverages

This product category encompasses all non-alcoholic drinks that Split serves. These drinks can
be sold during both brunch and dinner. This category includes products like sodas, sparkling
water, juices, coffee, and teas. The price points for these products are lower, between $3 and $7.
Some of the prices of the products being offered are justified not only by the quality but the
effort that goes into making it: for example, the juices will be freshly pressed on a daily basis.
Similarly, tea and coffee products will utilize the best quality ingredients, and in the case of tea,
will be rotated on a seasonal basis. Coffee products are also made to order and can come in
several forms, such as in a latte, cappuccino, espresso, or iced.

Split serves non-alcoholic beverages to appeal to consumers who don’t drink alcohol.
Furthermore, we wanted to provide a variety of different types of non-alcoholic drinks to cater to
different tastes and preferences. Overall, this product category is necessary to appeal to a wider
market.

3.3 The Brunch Menu

The Brunch Menu product category covers the products that will be served during brunch hours.
This category includes a mix of products that are traditionally thought of as either “breakfast” or
“lunch” items. This includes quiches, customized omelets, breakfast platters, sandwiches, soups,
and salads. Many of the products offered in this category can be customized to the consumer’s

5
preference: for example, there is a deal where a customer can order half a sand which of their
choice and pair it with either a soup or salad. Breakfast platters allow customers to choose one or
two proteins of their choice, pancakes, waffles, or French toast, eggs (made to their liking), and
one other side. They can also add more sides or items for a small up-charge. The price range for
this category is between $10 and $20. This price is justified because Split tries to use locally
sourced ingredients whenever possible.

Generally speaking, this product category satisfies the need for sustenance. Having a brunch
menu specifically allows flexibility in terms of choosing what to eat; because the menu has both
“breakfast” and “lunch” items available. Furthermore, for several products on this menu,
consumers are able to customize their orders to better suit their preferences.

3.4 The Dinner Menu

The Dinner Menu product category is the most expensive and extensive. The category includes
appetizers (which then can be sorted into hot/cold), entrées, and desserts. We also wanted to note
that every customer gets a ‘free’ breadbasket when they are seated. As previously stated, the
appetizer subcategory is further divided into “hot” and “cold” appetizers. Products within this
subcategory could include caprese salad, ceviche, bruschetta, different types of soups. The price
range for appetizers is between $8 and $15. The entrée subcategory covers meats, seafood,
salads, and pastas. Entrées are also served with sides, and more can be added on for a small job-
charge. One of Split’s signature dishes is a grilled steak served with potatoes, salad, and steamed
vegetables. Though most of the menu is set, sometimes Split will also have seasonal dishes. The
price points for this category are between $15 and $60. The dessert subcategory, in comparison,
is smaller and includes items like ice cream and cakes. The price range desserts is between $4
and $12.

The Dinner Menu category, similar to the Brunch menu, satisfies the basic need for food. But the
quality and types of products further enhance the customer’s experience. Through these products,
the consumer is reminded that they are dining at a nice and unique establishment, which might
boost their happiness or even ego.

6
4.0 SWOT ANALYSIS
4.1 Strengths
Our main strength is that there is nothing quite like this concept in Tallahassee—this is a
completely unique experience that is unlike anything in the area. If guests want an experience
like this, they would have to travel to multiple establishments (i.e., dining at a restaurant and then
going to a nightclub). By combining two places in one, people would be more inclined to choose
our restaurant for a fun night out.

Another strength of ours is having multiple times and days for events. Most night clubs are only
open at night, but Split has night club style events during the day for brunch and game day
festivities. This gives people lots of different opportunities if they want to get out and party at all
hours of the day.

4.2 Weaknesses
Unfortunately, there is not a lot of turnover per night. Once someone makes a reservation, they
stay for the entire evening. The whole point of Split is once a group is done eating, the restaurant
is transformed and they get up and start dancing. Once the restaurant is transformed into a
nightclub, there will no longer be people serving dinner.

You have to make a reservation and eat dinner beforehand: this is a weakness because when
college students make plans, they are sometimes very last minute. If you have to make a
reservation beforehand and eat dinner, that could be too much planning for some students.

Another one of our biggest weaknesses is that our prices are higher than most of our competitors.
Since there is not a lot of turnover, food and drink prices would be slightly higher than
competitors in the area. However, having higher prices gives Split more of an opportunity for
profit.

4.3 Opportunities
One major opportunity is to cater to game day tailgates and festivities. With a large student
population and a storied football program there is a great opportunity to offer game day
specialties and programs to appeal to our audience. Another opportunity our business has is that
we would be located in a Collegetown, therefore we have a great chance to make those 40,000+
people our target audience. Being one of the largest schools in the country, Florida State
University is rapidly growing with record breaking attendance numbers each year meaning there
is a growing audience for our business in this area.
To attract more customers, we could offer specials on certain days/at certain times. For example,
on game days, the restaurant could have a special brunch deal or offer; like reduced prices on
drinks or new menu items. Specials like these could also be made more “family friendly” to
appeal to a larger pool of consumers.
We can also create opportunities to attract new target markets. One way to do this is to offer
discounts to certain demographics. For example, kids could eat free on the days (around brunch)
that the restaurant turns into a nightclub. Or, like other clubs in the area, women can get
discounted drinks.

7
4.4 Threats
Our restaurant’s biggest threats are other restaurants in the Tallahassee area. In particular, places
near campus, like College Town, pose the biggest threat to our restaurant. This is for a multitude
of reasons: for example, places like Madison Social are already close to campus and are well-
established and even beloved amongst FSU students. Furthermore, they also offer food and
drinks, as well as a “club-like” atmosphere.
Another threat to our restaurant are other bars and clubs—again, especially those near FSU’s
campus. For example, the Strip, Recess, and Bajas are well-known amongst FSU students and
offer similar products (i.e., alcoholic beverages) as well as a similar atmosphere to our own
establishment. However, Split will have a wider variety of products and better quality than these
places.

8
5.0 MARKET ANALYSIS:
5.1 Segmentation
There are many different segments that make up the target audience for Split. These include a
mixture of lower, midscale, and upper class families and retirees that will visit the restaurant on a
daily basis. With the combination of all of these segments, it will give Split the maximum
amount of revenue possible. The Township Travelers are the Tallahassee locals that send their
children to FSU and are close by. The Connected Bohemians are the students that attend Florida
State or friends that come to visit. They mostly live in the area and are able to go to Split
whenever they would like. The Aspiring A-Listers have just graduated and are beginning to
settle down in Tallahassee, but social life is still their top priority. Kid Country, USA are the
families that live outside of Tallahassee who have sent a child off to college but still have
younger children at home. They usually visit for special occasions and game days. The
Traditional Times segment is older families whose parents have retired and are starting to
become empty nesters. Country Squires are similar to the Traditional Times segment as they are
both nearing retirement, but Country Squires have a higher annual salary and live more
comfortably. They want to go all out when they come to visit Tallahassee. Last, the Winner’s
Circle segment is a wealthy family mix with some children in college and some at home. They
enjoy night life because they are younger and still want to have fun. Having all these segments as
guests every night makes for a high profit and a successful restaurant.

5.1.1. Township Travelers- Tallahassee, 32304: The Township Travelers are the upper midscale
middle aged families that will be visiting Split. This group can be Tallahassee locals who may or
may not have children that go to Florida State. These families live in the 32304 zip code which is
the heart of Tallahassee, Florida. The parents of these families can be anywhere from 50-65 and
have children aged 18-30. The Township Travelers are looking for a place to have a nice dinner
or brunch, with a twist. These families also are in the true middle class and have money to spend
at restaurants and clubs, but not all the time. (Claritas.)

5.1.2. Connected Bohemians- Tallahassee, 32304: The Connected Bohemians are the
undergraduate and graduate students that live in Tallahassee. These students are usually midscale
and younger mostly without kids. They spend their time with friends going out on the weekends
and for special occasions. They enjoy celebrating an FSU game day with their closest friends the
best way they know how, with a party and that is exactly why they will choose Split. They crave
something unique that is different from their normal routine. They can be anywhere from 20-30
and make enough money to get by with parting factored into their weekly expenses. (Claritas.)

5.1.3. Aspiring A-Listers- Tallahassee, 32304: The Aspiring A-Listers is a group that are focused
on their social lives. This group is older than Connected Bohemians but younger than the
Township Travelers. They have graduated and stayed local to Tallahassee. They are interested in
technology, dining out, traveling, and spend heavily on top brands and status. They want
something that is off the beaten path and is different from anything they have done before. They
want to spend their money on experiences rather than things. They find entertainment here
because it is away from the younger students that are in the area and they can take advantage of
the craft cocktails and enticing entrees. Their ages usually average around 25-45 and they
generally do not have kids. (Claritas.)

9
5.1.4. Kid Country, USA- Outside Tallahassee, 32312: Kid Country, USA are the midscale
younger families mostly with kids. These families are mostly sending their first kid off to college
and still have a house full of younger children at home. The families that live in the zip code
32312 resided outside of the college town in the suburbs of Tallahassee. They are able to drive
across town and visit their children for any special occasion or game day. They enjoy Split
because of the entertainment aspect without having to travel too far. The parents of these families
can be anywhere from 45-55 years old and their children be 15-25. (Claritas.)

5.1.5. Traditional Times- Jacksonville, 32082: Traditional Times families are just entering
retirement and beginning their times as empty nesters. They have sent their youngest children off
to college and they keep busy by staying active, playing golf, and visiting shops. They enjoy
taking weekend trips to visit their children and spend time at nice restaurants. They also still
enjoy the nightlife scene and want to go somewhere more upscale. At Split, this segment can
come visit their children and enjoy a nice dinner with a place to have fun. The parents of these
families are usually entering their 60’s and their children are anywhere from 18-25. (Claritas.)

5.1.6. Country Squires- Hillsborough County/ New Tampa, 33647: Country Squires are one of
the top segments that visit Tallahassee. This area is one of the largest areas that FSU students
come from. The 33647 zip code is the North Tampa area in Hillsborough County and is one of
the largest in the state. These wealthy middle aged families send their children off to FSU but
when they come to visit, they want to go all out. The parents of these families are often still
working and live comfortably with six-figure salaries. They are usually around 50-65 years old
and their children are 18-30 years old. They crave some place that is unique to where they are
traveling and are willing to pay the money for a great experience. At Split, they are able to go
back to their glory days and enjoy some fun times and good music. (Claritas.)

5.1.7. Winners Circle- Hillsborough County/ New Tampa, 33647: The Winner’s Circle are
wealthy middle aged families with kids. They live in one of the most populated areas in Tampa
along with one of the leading counties of origin for FSU students. These families have some
children in college but also some kids at home as well. They are wealthy and make over 100,000
a year. They enjoy upscale living including traveling, dining out, and shopping at local
boutiques. They also live in suburban neighborhoods surrounded by golf courses and parks and
malls. The parents are anywhere from 45-55 years old with children from 15-25. They enjoy
coming to Tallahassee for game day and parents weekends wanting to celebrate and visit their
children. They do not mind spending a lot of money when they have a good time. These younger
parents can have some quality time with their children at brunch or dinner and then a fun evening
at the club. (Claritas.)

Figure 1

10
 Map of Market Segments

This map shows the segments on a map of the state of Florida. These are the most popular areas
that guests will be coming from, including Tallahassee, Tampa, and Jacksonville. These are the
areas that most Florida State Students are from as well.

5.2 Location Analysis:

Tallahassee is a large city with currently one of the highest growing populations in the state. The
city also accompanies a higher employment rate than the state average and is home to
professionals of many industries. The city is filled with attractions and events to spark interest in
each and every citizen. Getting to and from these events, and finding parking at these events, are
two of the biggest problems regarding transportation in the area.

5.2.1. Population and Growth Rate: The population of Tallahassee as of 2016 was 189,221
people. In 2018, the population grew by 2.28% to 193,551 people. Currently, approximately
199,205 people reside in the city of Tallahassee. This is an increase of 2.92% from the last 3
years and 5.27% from the last 5. Tallahassee is also currently in the top 20 of the fastest growing
metropolitan areas in Florida and has a higher growth rate than Miami and Tampa. These trends
all depict a constant increase in the population of Tallahassee. It is beneficial to set up
businesses in areas of increasing population so that your client base can continue to grow. With
this data we are able to determine the number of potential customers in the area and find ways to
reach them and market our restaurant to them.

5.2.2. Employment Rate: Tallahassee is a very large area that encompasses people that work in
many different industries. In 2016, the average unemployment rate in Leon County was 4.7%.
Leon County’s average unemployment rate for 2018 dropped to 3.3% and the city saw thousands
of unemployed citizens find employment. Since 2018, the unemployment rate has risen to 5.3%.
COVID-19 has had a massive impact on the Tallahassee workforce, and thousands of people
have been let go or furloughed in all industries. This drastic increase in unemployment can have
harmful ramifications for businesses in the area if trends continue. However, Tallahassee has
historically had better employment rates than the state’s average so it is safe to assume that had
COVID not taken place, the employment rate would be remarkably less than where it is at the

11
moment. It will be important to measure the employment rates in the following years to see if
this trend persists.

Figure 2
Unemployment Rate Tallahassee, FL

(Unemployment Rate in Tallahassee)

Shown above is the unemployment rate for Tallahassee from 1995 to 2020. Here we can see the
recent increase in unemployment due to the COVID-19 pandemic. As we plan to reach a new
normal in society, this number will slowly begin to decrease to the level it was at pre-pandemic.
We can see this in the previous trends from years before.

5.2.3. Facilities, Services, and attractions: The Tallahassee area has many attractions that bring
in thousands of people annually. One of the main attractions and staples of the city is Florida
State University. One of the top 50 public universities in the United States, Florida State
University holds an attendance of 33,270 students. Each year the University partakes in massive
graduation, sporting, philanthropic, and educational events. The University offers on-campus
housing that maintains about 20% of the students. Tallahassee is also the capital of the state of
Florida. The Florida Legislature gathers for sessions in Tallahassee and these politicians can
spend a lot of time in the area. These events will also draw in lobbyists, protestors, and other
interested citizens. Tallahassee is also home to many parks. The parks and recreation
department spends ample time setting up many parks in the area filled with walking trails,
wildlife, and wildlife information. These parks draw in many citizens and can be found all
around the city. These facilities are properly maintained so that all citizens can enjoy them.

5.2.4. Transportation Issues: The two greatest transportation issues in the city revolve around the
parking problems that occur due to the density of the downtown area, and the closure of roads on
Florida State University gamedays. Parking has been an issue for students and professionals in
the Tallahassee area for years. Many areas surrounding the campus are often too crowded to ever

12
try and find a spot, and many of the garages in the area only allow for people to park overnight
on the top 2 floors. Even when you move further away from the campus, parking garages for
citizens in the downtown area are few and hard to come across. Many areas require paying
hourly rates to park or valet parking for certain areas. As noted in 5.2.3, Florida State University
has a massive impact on the city of Tallahassee. On game days many of the major roads in the
area will either be completely zoned off or have limited lanes for traffic. These closures occur
bi-weekly during the football season and occur more frequently during basketball season.
During these times, traffic can stall up and people can be left waiting in their cars for hours.
These aspects described can be seen as cons of travelling into the city, and customers could
choose to just stay home.

5.3 Industry analysis:

5.3.1. Industry Summaries: The single location, full-service restaurants industry is fairly large,
with over 174,000 establishments currently operating. The industry has made an average of
around $148.1 billion per year for the past five years (2015-2020). (IBISWorld Industry Report
Restaurants) Profits are around $5.3 billion, and wages are around $59 billion. (IBISWorld
Report Restaurants) This industry is driven primarily by factors such as increased consumer
spending and growing urban populations. That being said, from 2015 to 2020, the industry has
been in a slight decline—estimated as -1.6% compared to previous years. (IBISWorld Report
Restaurants) The COVID-19 pandemic, which forced many businesses to close or shut down, is
further expected to drive industry revenues down by as much as 16.9% in 2020 alone.
(IBISWorld) However, it is estimated that consumer spending will increase this industry’s
growth by as much as 3.6% within the next five years (until 2025). (IBISWorld Report
Restaurants)

The nightclub industry as a whole had steadily increasing revenues over the past 5 years, prior to
the COVID-19 pandemic. However, this industry is still relatively large, and it brings in $24
Billion dollars in revenue annually. (IBISWorld) According to one source, nearly 21 million
people have visited some form of nightclub in 2020 (American Nightlife Association) There are
currently around 59,000 establishments within the industry in the US alone. (IBISWorld Report
Nightclubs and Bars) Furthermore, this industry is expected to grow by 5.3% over the next few
years. (IBISWorld Report Nightclubs and Bars) Similar to the restaurant industry, the nightclub
industry is driven by consumer spending.

The NAICS codes for the restaurant and nightclub industries are 72211b and 72241 respectively.

Restaurants have a variety of options when it comes to buying their supplies as they can either
choose to buy local and fresh products or they can buy from a larger distributor. (IBISWorld
Report Restaurants) In contrast, nightclubs do not have to buy very much to keep their business
operating, as the most important thing is to have a good beverage distributor. Typically,
companies that are restaurants in this industry will sell food services coupled with the sale of
food and drink. For the nightclub portion of the industry, an experience is usually sold to the
customers along with a limited amount of alcohol sale as well.

These industries are both considered to be “mature.” (IBISWorld) Both the restaurant and
nightclub industries have existed for a long time, and today there are currently millions of
establishments across the globe that are still operating under one or both of these categories.

13
While the COVID-19 pandemic has negatively impacted both restaurants and nightclubs,
because both industries are within the “mature” phase, they are still clearly here to stay.

5.3.2. Competition and Profitability: Both the restaurant and nightclub industries are considered
highly competitive. Full-service restaurants oftentimes not only compete with one another, but as
well as chain restaurants and other food & beverage service providers (for example, coffee
shops). (IBISWorld Report Restaurants) Similarly, nightclubs face internal and external
competition by other establishments. For nightclubs in particular, the COVID-19 pandemic has
further increased competition as demand dramatically decreased. (IBISWorld Report Nightclubs
and Bars) Overall, owners within these compete on a variety of factors, including location, price,
concept, quality of customer service, and quality of product offerings.

The profitability of individual establishments within these industries vary. Factors like the size,
type, and location of the establishment can help determine how profitable the business is. High-
end restaurants and nightclubs are typically more profitable due to higher prices. In particular,
night clubs have a higher profit margin than restaurants. Overall, however, these industries are
fairly profitable, as the restaurant and nightclub industries bring in $5.3 and $1.4 billion
respectively. (IBISWorld)

5.3.3. Trends, Opportunities, and Threats: Current industry trends have shown an increased
preference for smaller, independently-owned establishments with unique concepts over chain
restaurants. (IBISWorld Report Restaurants) Furthermore, research has shown that consumers
are increasingly conscious about what they eat and where it is from. There is a rising demand for
healthier foods that utilize locally sourced products, which has caused many establishments to
expand their menus to include these preferences. In the case of nightclubs, there has been a trend
of catering to consumers’ more niche preferences, which has led to the development of
establishments like wine bars and cocktail lounges. (IBISWorld Report Nightclubs and Bars)

Despite the impacts of the COVID-19 pandemic, there are still opportunities to flourish within
both of these industries, especially because both industries are expected to grow within the next
five years. Creativity and innovation in developing an establishment’s brand seems to be
essential.

On top of the pandemic, the biggest threats in both of these industries is that they both have a
fairly large amount of regulations in their specified industry, as well as a fairly high level of
competition. In some urban areas, the market is even overly-saturated with establishments that
fall into these categories. This means that restaurants and nightclubs must find creative solutions
to separate themselves from their competition. Furthermore, consumer preferences (particularly
in the wake of the pandemic) have shown that people are consuming food and beverage products
at home, rather than going out. This has especially affected the nightclub industry.

5.4 Competitive analysis

5.4.1.Competitve structure: Our industry is both a restaurant and a nightclub, meaning there is a
large and stiff competition. In both these industries, the number one rule to know in order to
compete with other industries alike, is to know your competition. When one becomes aware of

14
their competition, they are then aware of what they can do to make themselves stand out and how
they can differentiate themselves. In the restaurant business, there are key factors that are needed
in order to compete with other restaurants. It is crucial to know and understand the restaurants
around you well, and know the food they are serving, their ambiance, the service standards, etc.
Once this is observed, it is important to take necessary action to create your own restaurant to be
the very best it can be so that it is capable of competing with the restaurants surrounding it. Once
the restaurant understands its competition and what they offer, they can then identify what it is
that makes them unique. By offering a unique selling proposition, this differentiates you from the
competition. This can be a dish on the menu, cocktail specials (such as two for 1), signature
cocktails etc. One of the most important things a restaurant can do in order to compete with other
restaurants is making sure the staff is offering outstanding service. Train the employees to be
polite and answer questions. Aside from meals, this is what sets apart a good restaurant to a great
restaurant and what will have people coming back: exceptional, great service.

For the nightclub industry, some of the most effective ways to compete is by creating a unique
atmosphere. Having a unique setting to a club and allowing it to be transformed is something that
will not only intrigue guests, but will also allow your club to stand out against its competition.
Another way nightclubs compete with one another is by having special events such as “Ladies
Night” or “Thirsty Thursday’s”. When nightclubs treat every night like an event, this creates an
exciting experience and creates a sense of exclusivity for the guests who plan on attending.
Branding is also very important in terms of being competitive in the nightclub industry. It is also
important to have an active social media page displaying photos and videos of all the events
going on at the nightclub to excite guests.

5.4.2. Intensity and Crowdedness: The restaurant business is very difficult and intense. It is a
very competitive industry. According to Restaurant Business Online, to put things into
perspective, there were 189.8 restaurants for every 100,000 Americans in 2016 whild in 2001,
the number was 165.1. (Restaurant Business Online) According to a study done by CNBC,
around 60% of new restaurants fail within their first year, and 80% go out of business within 5
years. (CNBC) The restaurant industry only continues to grow and as it does, competition
becomes more intense.
The nightclub industry is also an intense and difficult industry to be a part of as well. According
to SBDC, with an estimated industry revenue of around $19.9 billion, and an estimated 62,500
locations (that is expected to continue to grow), the competition and the intensity of running a
nightclub is very prevalent. (SBDCNet)

With both of these things being said, as the restaurant industry continues to grow and does not
plan on slowing down, it is a very crowded industry. It is a very popular industry, but one that is
difficult to survive in. Yet, it is the industry many people get involved in, once again making it
very crowded.

5.4.3. Defining the Competition: There is a significant amount of competition within the area
where Split is going to be. For the product form for Split, there are no existing competitors (at
least within the area of Tallahassee), where a restaurant turns into a nightclub. Therefore, I do
not believe Split has a product form competitor. For the product category, the main competitors
here would be Madison Social and Centrale. For Madison Social, it does not necessarily turn into
a club, however on certain days of the week, after a certain time, they only let people 21+ enter

15
the restaurant, play louder music, and make it feel more like a bar than a restaurant. This gives
people that feeling of exclusivity when they go to Madison Social, making them competition. For
Centrale, they have bottomless mimosas starting Saturday and Sunday which is a very popular
event for them, as well as playing loud energetic music. They would compete with us especially
when Split hosts game day brunches. For both Madison Social and Centrale though, they are not
necessarily transforming themselves into a club, they are both still restaurants. Our general
competitors include plenty of different businesses due to the fact we consider Split to be both a
restaurant and nightclub. This includes Madison Social, Centrale, Township, Tinn Lizzy’s,
Recess, Tenn Nightclub, Clydes and Costello’s, etc. Budget competitors include all the
restaurants and clubs listed before, and now include grocery stores, gas stations, liquor stores
(Mike’s Beer Barn), etc.

5.4.4. Sustainable Competitive Advantage: The company’s sustainable competitive advantage is

the general concept of the restaurant. Since our restaurant is located in Collegetown, which is the
center of a large population of student life and surrounded by restaurants, it was important to
make sure Split stood out. There is no restaurant surrounding us necessarily that transforms itself
into a nightclub, which gives Split an edge and something new and different within the area. This
will excite and intrigue people. Split offers great food, great ambiance, a fun atmosphere, and
convenience. The best way Split can defend its competitive action is the location and the fact that
so many college students dwell within the area. The population continues to grow, especially the
student population. Collegetown continues to grow more popular and has a big student
population. So even though there will be people graduating, as the student population continues
to only get bigger at FSU, this will give us an even larger clientele. I think it would be very
difficult for the surrounding competition to copy us without looking like they are blatantly
copying us since the concept is very different. The process of making the restaurant involved
dimming the lights, closing the curtains to the windows so it gets dark, strobe lights, putting the
music louder, fog machines, special DJ’s, etc. All these factors would ensure that the
surrounding competition will not copy us as we have made it very important that we stand out.

Figure 3
Main Competition
Restaurant open from Mon-Sun. Monday
through Thursday there are open from
11:30am-12am, Friday from 11:30am-2am,
and Saturday and Sunday from 10am-2am.

16
 Madison Social They have Lunch, dinner, brunch options,
happy hour specials, and an energetic
atmosphere. Many college students come
here. Certain days of the week, after a certain
time, only let people 21+ enter the restaurant
making it feel more like a bar.

Restaurant open from Wed-Sun. Wednesday

and Thursday open from 5-10pm, Friday
from 12-11pm, and Saturday 11am-11pm,
and Sunday 11am-4pm. They have Lunch,
Centrale dinner, brunch options, happy hour specials,
music, and an energetic atmosphere. many
college students come here. Brunch is a very
popular event (Saturday-Sunday), where they
serve bottomless mimosas. Fun atmosphere.

Rooftop nightclub with a rooftop pool. Open

Tuesday’s, Friday’s, and Saturday’s from
9pm-2am. Host their special events on
Recess Tuesdays called “Jacked Up Tuesdays.”
Have loud energetic music and drink
specials. Many college students come here.
They also sometimes host daytime events
(pool parties for example).

Shown in this table are three different competitors of Split. These three were chosen as they are
different, yet will most likely have similar clientele that Split would have. In the table, it defines
what each business is, hours of operation, their product categories, what they offer, and their
competitive advantage.

17
6.0 TARGET MARKET COMMUNICATION STRATEGY
6.1 Marketing Objectives
· Grow Split’s digital presence by increasing social media engagement by 5% by
the end of the quarter.
· Increase consumer interaction and loyalty by creating a customer rewards
program by the end of the month, with a goal of 200 members by the end of the quarter.
· Engage with at least two new target markets through advertisements and or sales
promotions to increase profits by 20% by the end of the year.
· Develop and launch three new sales promotions by the end of this year to increase
revenue.

6.2 Target Marketing Strategy

6.2.1. Integrated Marketing Strategy: Split’s target marketing strategy is primarily focused on
increasing our digital presence to better engage with current customers and attract new markets.
All of our most profitable target markets engage with social media in some way, so we have
decided to utilize this to our advantage in order to increase Split’s revenue. To reach out to our
target markets, we will primarily use popular social media channels (Facebook and Instagram) as
well as various sales promotions. More specifically, we plan on paying for advertisements on
both platforms. Furthermore, we plan on engaging customers through other methods, like
through events and on other digital platforms (like our restaurant’s website).

6.2.2. Target Market Summary: For Split, the most profitable segments that we should target
would include the Winner’s Circle, Aspiring A-listers, and the Connected Bohemians segments.
When we were searching for the most ideal target markets we were looking for a variety of
factors that included age, economic status, leisure activities, and where they were located. We
decided that since each target market varies, the most impactful way to implement our marketing
strategy would be to use a differentiated marketing strategy. We feel as though since our
segments vary substantially, we would yield the most results from catering our marketing
strategies towards each individual segment. By creating sales promotions that cater to each
individual segment, we believe Split could benefit greatly. Our business believes that through
social media channels, like Instagram, that we will be able to effectively implement our
strategies. Although our segments do not have an overwhelming amount of similarities, they all
are frequent users of social media and the internet. Through social media channels like Instagram
and Facebook we would be able to implement our marketing strategy in a very cost-efficient
way. Many people that fit into these segments spend a sizable amount of time on their electronics
and on social media, so if we implemented our marketing strategy through these channels, our
business should receive exposure.

6.2.3. Company Target Markets: Winners Circle is going to be one of the most profitable
segments for Split. Even though they do not live in Tallahassee, they often travel to Tallahassee
every weekend and will spend more money than a Tallahassee resident. They will order lots of
appetizers and numerous drinks during their dinner. They will ignore the prices of entrees and
order what they want instead of what they can afford. They will also spend money on alcohol
throughout the night at the club. Since this is a younger family mix, they will not be going home
as early as someone in the Traditional Times segment. The most effective way to market to this
group is to use social media. They are up to date with technology and frequently use Facebook

18
and Instagram. Here, Split is able to post about upcoming promotions and other deals that they
will be running. They are also able to post photos and upcoming events as well that can boost
interaction. Some ways to entice this segment is to run promotions that offer free bottles of wine
when ordering specific entrees or BOGO cocktails during dinner. They are more likely to spend
more money during the dinner portion of their night rather than the club portion. In order to keep
them coming back, Split can offer a free glass of wine, cocktail, or percentage off a certain visit.
Additionally, by changing the menu seasonally, it offers a different experience when guests
come back.

Aspiring A-Listers and are another type of profitable segment that will visit Split. This social life
focused group is always looking for a way to engage with others, whether it is a meal out, a night
out with friends, or both. Since they mostly have salaried jobs, they are willing to spend more
money when having a night out. Even though they only visit on the weekends or a special
occasion, they will not hold back on their budget. The best way to market to this segment is
through social media. Since this group is so connected with technology, posting promotions and
event details to Instagram is an easy way to get a lot of engagement. Additionally, this group is
constantly checking their email for work and personal reasons, so sending out an email with the
upcoming promotions would be beneficial as well. Some ways to entice them is to run cocktail
specials or even a special build your own cocktail menu for a weekend. This makes this
experience even more unique and personable for them. In order to keep them coming back, they
can offer exceptional promotions on the weekend in order for them to pick Split over any other
restaurant or club.

Connected Bohemians is another type of segment that will be profitable to Split. Even though
this segment is the one with the least amount of income, they are the ones that are quick to
spend, live in the area, and attend all days of the week. This segment also brings other Connected
Bohemians to the area when other college students come and visit. When guests come to town,
they want to show them the coolest things to do in the area, including Split. The Connected
Bohemians are excited to have a night out during the week just as much as they are on the
weekend. This is the most popular segment in the area and are the ones that fill up Split every
night. They spend numerous hours of their day in front of a screen, so using technology to
market to this group is critical. Using Instagram, Facebook, and even Snapchat to promote events
and upcoming promotions can boost reservations and sales. Heavily promoting events the day of
can also be beneficial because college students are usually not ones to make plans weeks in
advance. By pushing these events the day of, they are more likely to call and make a reservation
for that night. Having cheaper drinks at night or an “all you can drink” promotion for special
events, such as a game day, will bring in lots of this segment wanting to have a good time.
Additionally, since this segment resides in the area, they can attend any events, such as 5K runs,
charity fundraisers, the local fair, and others. Here, Split will sponsor these activities and have
advertisements, booths, and giveaways for guests to interact with. In order to keep them coming
back, it is important to be consistent with promotions so they associate that day and deal with
Split.

19
7.0 BUDGET, COST, AND CONTROLS
7.1 Budget
The budget for our marketing expenses will be relatively low due to the fact that the general
manager will be in charge of the marketing objectives. We will not have a designated director of
marketing whose job only is to manage that. However, we aim to have a very strong online
presence which will require us to maintain a very clean and easy to use website, as well as ads on
social media. Our costs will be mainly from online advertising and partnerships with other local
organizations like fraternities, sororities, alumni groups, and other local charity and annual
events.

Since our main advertising focus will be social media, we need to allocate $18,789 per year for
online ads. It will cost us $6.70 per 1,000 impressions on Instagram (WebFX, 2020). It is not
always necessary nor efficient to give the same people the same ads every day. We can have
10,000 ads on Instagram every other day. This will cost us $12,228 per year. This is much more
money than we will use for Facebook, but it is worth it when looking at the demographics. The
age of people that use Instagram frequently is much younger than that of facebook, and young
adults are our main targets. Not only is advertising on Instagram a bit cheaper per impression, the
engagement from instagram ads are also higher than facebook ads. As for facebook, it costs
$7.19 per 1000 impressions (Facebook, 2020). We can have 5,000 ads on facebook every other
day for $6,561 per year. The total cost of our advertising on social media will be $18,789 per
year.

The rest of our budget will go towards local events. There are several local community events
per year in Tallahassee including things like the fair, charity fundraisers, 5Ks, holiday events,
and many others (Tallahassee Localwiki, 2012). It is important to stay involved in our
community and to show up to many of these events. We can participate in these events directly
or have things like booths or giveaways at these community events. We will need to have 2-5
people working these events and need money for the giveaways and booths. $10,000 is required
for us to participate in many of these events per year.

The total marketing budget will be $28,789.

7.2 Cost Analysis

For our business Split, we decided that it would be the best choice if we implemented our
marketing plan through social media and local events. For our ideal customer segments, social
media plays an enormous role in their lives. We believe that with the help of the social media
outlets Facebook and Instagram, we will be able to effectively reach our target segments. Using
Instagram to implement our marketing plan will be cheaper than Facebook and due to its
tremendous popularity, we should benefit greatly. To use Instagram to implement our marketing
plan it will cost $6.70 per 1,000 impressions. We believe the most effective way to use
Instagram would be to run 10,000 impressions every other day which would cost our business
$12,228 annually. For Facebook, it would cost $7.19 per 1,000 impressions. Being that
Facebook is a more expensive marketing channel than Instagram is, we decided to run 5,000
impressions every other day which will result in $6,561 annually. Between these two marketing
channels our annual expense will cost a total of $18,789. Due to the role that social media plays
in our segments' lifestyles, it will provide us with not only an efficient way to implement our
marketing plan, but a cost efficient one as well. We also felt that reaching out to our local

20
segments through advertising at local events would be beneficial for us. By having a booth and
doing giveaways at local events like the fair, charity fundraisers, and holiday events we will
hopefully gain a positive reputation among the crowds, bringing in more business. To participate
in these events and host giveaways it will typically cost our business $2,000. We decided that
we would like to try and participate in 5 events annually which would give us a cost of $10,000.
Between our participation in local events and the social media advertisement, Split’s marketing
plan will cost a total of $28,789. We believe the exposure we will receive by going this route is
well worth the cost and will help our business greatly.

Figure 4
Marketing Budget
Marketing Channels: Expenses

Instagram $12,228

Facebook $6,561

Local Events $10,000

Total $28,789

7.3 Controls
The restaurant’s general manager will primarily be in charge of identifying and carrying out the
marketing objectives. Split’s marketing objectives will be achieved through various methods,
with an emphasis on increasing social media outreach to reach new target markets to
subsequently boost sales.

In order to expand Split’s social media and overall digital presence, the restaurant is committed
to being active online. The key is consistency. Split will consistently update the restaurant’s
official website every week. The restaurant will primarily make contact with consumers through
two social media accounts: Instagram and Facebook. On Instagram, employees should strive to
make three new Instagram posts and post on Instagram stories ten times per week. These posts
can highlight any announcements, specials, change in restaurant hours, products, or customer
reviews and experiences (for example, reposting a customer’s photo with their permission). On
Facebook, the restaurant should post at least three times a week. Private messages and inquiries
on both platforms should be answered in a timely manner, within two hours is ideal.

In addition to maximizing the restaurant’s social media potential, the restaurant will utilize other
methods of reaching out to target markets. Split will partner with at least one of (or any
combination of) online delivery services like Doordash, Uber Eats, or Grubhub. Furthermore, for
the convenience of consumers, the restaurant will offer pickup services on certain days and
times. Furthermore, Split will become registered on sites like Tripadvisor and Yelp to become
more “visible” to consumers who may not be already familiar with the area. Management should
monitor reviews and feedback on these accounts.

21
In order to reach new target markets, Split will employ various advertising methods and tactics.
We plan on communicating with different local organizations (including but not limited to
fraternities, sororities, and alumni groups) in an attempt to form partnerships. Furthermore, we
will develop new sales promotions throughout the year to appeal to new target markets. These
promotions may include special events and coupons.

Overall, by consistently engaging with new markets and consumers, we hope to achieve both our
marketing and company objectives. We will measure the success of our tactics through
engagement on social media (for example, website impressions, likes, follows, and shares) as
well as direct feedback from customers. We plan on creating and linking a survey on Split’s
website so we can better understand our customer’s experiences and possible concerns.

22
 References

“Bars & Nightclubs in US.” IBISWorld, https://clients1-ibisworld-

com.proxy.lib.fsu.edu/reports/us/industry/default.aspx?entid=1685.

“How Much Does It Cost to Advertise on Instagram?” WebFX, Dec. 2020,

www.webfx.com/social-media/how-much-does-it-cost-to-advertise-on-instagram.html.

“How Much Do Facebook Ads Cost?” Facebook for Business, 2020,

www.facebook.com/business/ads/pricing.

JarrettBellini. “The No. 1 Thing to Consider before Opening a Restaurant.” CNBC, CNBC, 6

July 2016, www.cnbc.com/2016/01/20/heres-the-real-reason-why-most-

restaurantfail.htm.

Khoja, Nadya. “4 Ways Nightclub Managers Can Outshine Their Competition.” HuffPost,

HuffPost, 7 Dec. 2017, www.huffpost.com/entry/4-ways-

nightclubmanagers_b_10324434.

“Market Summary Nightlife Industry Overview.” American Nightlife Association,

https://www.nightlifeassociation.org/market-overview/.

Maze, Jonathan. “Here's How Competitive the Restaurant Industry Really Is.” Restaurant

Business, Restaurant Business, 18 Apr. 2018,

“National Statistics: Restaurant Industry at a Glance.” National Restaurant Association,

https://restaurant.org/research/restaurant-statistics/restaurant-industry-facts-at-a-glane.

23
“PRIZM® PREMIER.” Claritas, claritas360.claritas.com/mybestsegments/.

SBDCNet. “Bar Business & Nightclub.” SBDCNet, 7 July 2020,

www.sbdcnet.org/smallbusiness-research-reports/bar-business-nightclub.

“Single Location, Full-Service Restaurants in the US.” IBISWorld, https://clients1-

ibisworld-com.proxy.lib.fsu.edu/reports/us/industry/default.aspx?entid=1678.

“Tallahassee, Florida Population 2020.” Tallahassee, Florida Population 2020 (Demographics,

Maps, Graphs), worldpopulationreview.com/us-cities/tallahassee-fl-population.

“Tallahassee.” LocalWiki, 2012, localwiki.org/tallahassee/Annual_Events.

“Target Marketing: Four Generic Target Marketing Strategies.” Your Article Library, 8 Dec.

2013, www.yourarticlelibrary.com/marketing/target-marketing-four-generic-target-

marketing-strategies/13400.

The Restaurant Times. “7 Effective Ways To Beat Restaurant Competition Without Lowering

Your Profits.” The Restaurant Times, 1 Apr. 2020, www.posist.com/restaurant-

times/restro-gyaan/beat-restaurant-competition-without-lowering-profits.html.

Research, Office of Institutional. “Office of Institutional Research.” Office of Institutional

Research - Florida State University, 2019, ir.fsu.edu/facts.aspx.

“Unemployment Rate in Tallahassee, FL (MSA).” FRED, 3 Dec. 2020,

fred.stlouisfed.org/series/TALL212URN.

24