Daniel Kuhlman validates the Tastes Wine Bar & Bistro concept

Validating the Tastes Wine Bar & Bistro concept was based on the business case identifying an existing unmet market need. At that point, the Denver Metro area had six wine bars scattered throughout the 2.5 million population of the area with no real concentration in any one area. National recognition of the concept was just ramping up. We formed a team of volunteers (easily done) who would travel with us to visit each establishment. This team’s feedback, and my observations including head counts, were critical elements in ultimately developing the business plan.

Additional market research was conducted using census and association data. As the concept also involved franchising, additional data was gathered on existing concepts and franchising association information. There were two wine bar franchises at the time, both in the US Southeast. Both were full kitchen concepts and so not really valid for comparison purposes. Therefore, approximate models were identified. Starbucks most closely resembled the model we wanted to create. The small footprint and limited service features lent themselves readily to reproduction at low costs. If wine bar specific operating processes could be developed to support a different menu, the concept could be a winner.

Additionally, exit strategies were explored at this point to make sure that there was realistic expectation for a return of invested capital. Numerous larger chain operations with full service operations had smaller footprint concepts in their portfolios, but perhaps not limited service concepts. I determined that given the right profitability of the chain, it could be marketed after a critical mass had been reached.

Next step was to develop the Business Plan

Go back to Daniel Kuhlman Tastes Project site

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