FDD Talk 2015: The Bottle and Bottega Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

In this FDD Talk 2015 post, you’ll learn the following:

Section I – Background information on the Bottle and Bottega franchise opportunity, including relevant news updates

Section II – Estimated initial investment for a Bottle and Bottega franchise, based on Item 7 of the company’s 2015 FDD

Section III – Presentation and analysis of Bottle and Bottega’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:

2014 average gross sales and cost of goods sold for the 9 Bottle and Bottega Businesses (which includes 7 franchised Businesses and 2 company-owned Businesses) that operated for the entire 52-week period from January 1, 2014 until December 31, 2014

2013 average gross sales and cost of goods sold for the 7 Bottle and Bottega Businesses (which includes 5 franchised Businesses and 2 company-owned Businesses) that operated for the entire 52-week period from January 1, 2013 until December 31, 2013

2012 average gross sales and cost of goods sold for the one company-owned Bottle and Bottega Business that operated for the entire 52-week period from January 1, 2012 until December 31, 2012

Section I – Background Information

Bottle and Bottega is a relative newcomer to the world of franchising, having just been established in 2009. It is the brainchild of Stephanie King-Myers and Nancy Bigley, a pair of successful corporate women who left the security of their previous jobs to put together a business concept about which they are truly passionate.

A Bottle and Bottega location is an upscale boutique studio where patrons come together to paint and drink wine, often referred to as “paint and sip.” A gathering at a Bottle and Bottega is “one part artistic adventure and one part cocktail party,” which seems to have a deep appeal to many adults.

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Whether it’s a group of friends celebrating a birthday or even a small corporate retreat, interesting things happen when people come together over a canvas and a bottle of wine. It’s not really an art class but more of an art party. The founders firmly believe that everyone has an inner artist waiting to come out, and a modest amount of wine can help facilitate that coming out.

Headquartered in Chicago, Bottle and Bottega began franchising in 2011, so there are only 18 locations so far, but the founders are convinced there’s a big market to tap into. Here’s how Bottle and Bottega is tapping into newfound energy in the wine and entertainment segment:

Stretching the Comfort Zone

You’ve no doubt heard many of your friends say they don’t have a creative bone in their bodies. Bottle and Bottega is determined to prove otherwise. And it seems to work like magic. In just a couple hours (and a couple glasses of wine), each person emerges with a surprisingly impressive piece of art they created, and sense of pride at having done it.

The key is not focusing on trying to produce good art. It’s more about having fun and stepping outside your comfort zone in a very relaxed and encouraging atmosphere.

The Studio

The utmost care and attention goes into the studio because it’s at the heart of the experience. The setting has to be beautiful, comfortable, and inspiring.

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Bottle and Bottega studios have a definite vibe, and it says ultra-hip, eclectic, upscale, and comfortable. You feel like you’re having the party right in your own living room, except you won’t have to clean up at the end of the event.

Feeling at home is part of what lets your inner artist come out, along with a couple glasses of wine, of course. A bottega, by the way, is the Italian word for an artist’s studio.

A Winning Combination

Art and wine – these are two HUGE industries that come together in Bottle and Bottega. Think about it – American museums receive 850 million visits each year, which is nearly twice the number that attend major league sporting events and theme parks combined (483 million).

And the North American wine market is worth at least $34.6 billion. Clearly, this is one combination that makes good business sense.

Section II – Estimated Costs

Please click here for detailed estimates of Bottle and Bottega franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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