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Sugar Bowl

In: Business and Management

Submitted By mkeeley85
Words 611
Pages 3
Sugar Bowl Memo Shelby Givens faced many trials and tribulations throughout the transformation of her grandfather’s Westlake Lanes into Sugar Bowl. All three phases, from preparing for the transformation to operations, produced challenges that Givens would have to overcome. In Phase I, Givens prepared for the bowling alley’s renovation. Westlake Lanes was to close down current operations for approximately nine months. The design challenge of Sugar Bowl would be to create the environment for Givens’ key demographic, young professionals. Raleigh’s design firms estimated a total cost of $500,000 to $750,000. Givens realized this direction would ultimately be unsuccessful due to the high cost. She then recruited design students from two local universities to work for three months at no cost. The student’s proposed plan, along with a license architect, would save her about $90,000. The menu challenge was Givens had to produce an original tapas-style menu for Sugar Bowl. Realizing the cost to renovate the onsite kitchen would be substantial, she partnered with a local catering business to create the menu offsite. Phase II began in November 2010. Given’s had previously hired a low experienced contractor to oversee the construction of Sugar Bowl. The challenge was Mike Walker had delayed Sugar Bowls opening by almost two months due to missed deadlines, incorrect deliveries, and a staff shortage. Givens decided to not to fire Walker because it would not save her money or time. Staff challenges also became apparent in Phase II. Realizing that she did not have the full capability to handle the unexpected demands of the renovation, Givens reached out for help. Sarah Petty came highly recommended and was soon hired as the general manager of Sugar Bowl. Phase III started with the Grand Opening in May 2011. The capacity levels on a given night would fluctuate dramatically. Another staff challenge arose in July. Two servers quit because of low earnings and a third server was fired on the spot for giving away free drinks. Givens decided that rather than hiring and training new staff members, she and Petty would work through the stressful job themselves. In September, Smith quit as a manager due to her lack of experience as an event coordinator. Givens replaced Smith with Charlie Campbell. Campbell had sales knowledge and a widespread personal connections with major Raleigh companies. These actions taken by Givens proved to be both effective and ineffective. The acquirement of Charlie Campbell proved to be a successful decision. Campbell’s personal network produced major private events in short time. These private events would generate the ideal clientele that Givens was hoping for, young professionals. The decision to partner with an offsite catering business would eventually demonstrate to be unsuccessful. The fluctuation in capacity levels would produce inaccurate estimates. These estimates could create an excess or lack in menu items and demonstrate to be wasteful. A renovated kitchen could have feasibly delivered the right menu at a lower cost. Sugar Bowl would not be a viable business in the long term. Negative forces on profitability include another aging demographic, changes in interest, and even technology. The young professionals will eventually age, start families, and their interest fades over time. The recent influx of virtual sports, like bowling on the Wii, would allow groups to bowl in their homes. Positive forces include new demographics and the small, but consistent, popularity of the sport. Sugar Bowl is in close proximity to several Universities. College students regularly look for fun in food, drink, and sports. The bowling leagues, original business of Westlake Lanes, continue to be viable to the business. Givens should consider the balance of these different groups to gain more profitability.

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