|and responsive. While the fast food segment's strong suit is convenience, the full-service segment boasts its own competitive edge: ambience. The synthesis of architecture, decor, menu design and other elements that create a particular mood or "theme" is the way a full-service restaurant can differntiate itself from its competitors. In the 90's, Americans are increasingly viewing restaurants as "meeting places," not just eating places, and nearly two out of five adults say they are moving away from doing their entertaining at home. Statistics also show that consuners are choosing full-service restaurants as places to relax with their children. Surveys indicate that restaurant partiesfor young children are holding steady and parties for pre-teens are increasing. This means patrons are demanding more entertainment value for their dining-out dollars, preferring a restaurant environment that is stimulating and active. These new views are dictating changes in the foodservice industry. "Quick" and "cheap" are no longer the factors driving the consumer. To be competitive in today's industry, companies must have a tightly-defined concept that offers more than dining.|
One restaurant that has successfully captured consumer dollars is Dave & Buster's. Featuring video arcade games and other activities with the menu, its shares hit a 52-week high at the end of July, '97, and its highest performing location generated more than $20 million in annual revenue.
With a 24% return on investment but stalled restaurant growth, Planet Hollywood seeks to become an "event" location by joining forces with movie-theater chain AMC Entertainment, Inc. to create "dinner and a movie" locations.
Refurbished AMC megaplex theaters will include the movie-themed Planet Hollywood restaurants and movie and
entertainment-based retail stores.
Similarly, U.S Restaurant develops "co-branded" sites, leasing adjacent real estate to gas station and resturant tenants. It reports finding this strategy to be more profitable than its core sale-leaseback business.
| The Company is
the brainchild of president Mario Monaco. Incorporated since 1995, UFO is currently in its
research and planning stage. The Company will have a series of restaurant/entertainment
complexes after the successful establishment of the first location.
Proposed use of Funds
The Company is seeking an investment of $7.5 million. Specifically, the requested capital will be used to sustain operating costs and to obtain land, construct the building, obtain licenses, purchase opening inventory, for necessary travel, and to pay promotion, legal and accounting fees.
Revenues for the Company are projected to exceed $3 million in two years. At that time, the Company will have achieved its initial goals and investors can expect a significant return on their investment.