Bavarian traditions are heading for success worldwide

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1 Bavarian traditions are heading for success worldwide

2 Cover image: Young woman with beer steins, copyright ROK Restaurants Image on page 4: Beer glass in foreground, copyright ROK Restaurants

3 3 The Paulaner Gastronomy Concept an investment that pays off The motivations for investing in a gastronomic business can be quite diverse. They range from a personal passion and affinity for the subject of eating and drinking to the simple necessity of infusing life into an existing property, or rounding off a present hotel business with a gastronomic touch. Regardless of which motives are in the foreground, each investor is interested in earning profits with a risk as low as possible and the greatest possible planning security, and this not only today but in the future as well. At Paulaner, we are familiar with this profession. We have centuries-old gastronomic experiences at our disposal and master the entire range of modern techniques and resources that are required for the planning and operation of a sustainable gastronomic business. Our popular Paulaner beer specialties, whose exquisite quality has always ensured the utmost enjoyment of beer, remain at the heart of our activities. The brand concept of the PAULANER BRÄUHAUS (Microbrewery restaurant), which has proven itself internationally many times, offers investors around the globe an authentic success guarantor, which makes it possible to gain profits within a short time period and for the long-term. Traditional and yet with a contemporary pulse PAULANER BRÄUHAUS restaurants are locations at which time-honored Bavarian traditions are combined with a modern appreciation of life in a distinctive way. A genuine brand concept, which very successfully shifts the renown Munich brewing arts into the center of sophisticated hospitality and attracts locals just as much as travelers and visitors from Germany and abroad.

4 4 The PAULANER BRÄUHAUS an export article made in Munich PAULANER BRÄUHAUS restaurants are at home anywhere in the world. Whether in Munich, Cape Town, or Singapore, they have developed into solid institutions worldwide. They offer a unique mixture of bar, pub, restaurant, lounge, event location, beer garden, and brewery beneath one roof. The most important eye-catchers are the copper brewing kettles with their shining pipes and fittings. They exemplarily mirror the entire activities inside the brewery and make it possible for the guests to experience the live brewing process directly, when the German Paulaner brewmaster does his work. The ambiance and atmosphere are casual, yet stylish. Locals as well as visitors

5 5 sit together at long tables, say cheers to each other and enjoy their outing to Bavaria. The food selection consists of three pillars: Classics of the Bavarian cuisine (Paulaner Classics), which are prepared and served authentically, as well as internationally popular dishes and current food trends. Of course all dishes correspond magnificently with the Paulaner beer specialties. At the PAULANER BRÄUHAUS, centuries-old traditions are given a contemporary interpretation and an unconventional blend. This aspiration applies to the entire concept from the furnishing and equipment to the food selection, all the way to the fondly created atmosphere.

6 6 An established concept authentic, individual, successful There are many good ideas but in the end, not all of them bring about the desired success. The PAULANER BRÄUHAUS keeps its promises. This is ensured by the long-standing experiences of the Paulaner Brewery, the great prestige of the hospitality in Munich and the prominence of the Paulaner brand. The concept of the PAULANER BRÄUHAUS clearly promises high performance and offers investors across the world the opportunity of occupying a niche in their region and gaining new target groups for themselves. The most important success factors at a glance: The PAULANER BRÄUHAUS is a brand concept that is based on long-standing traditions and increased values. Authenticity and personality are at the forefront and thus surpass any artificially created concept. The concept is designed for the long-term and has the potential of skimming off profit on a lasting basis. The PAULANER BRÄUHAUS Beijing, for example, has already been operating very successfully for more than 15 years. The attractive business period from the pre-lunch hours until midnight is absolutely unbeatable in an international comparison. Individual local features can be considered with flexibility without falsifying the concept. These adjustments guarantee an ideal usage of the location. The guests are awaited by an exceptional gastronomic and cultural experience that is stylish as well as casual. The home-brewed beer acts as a reliable magnet for guests. So does the Paulaner brewmaster, who actively supports the onsite team as an ambassador for the beer. He represents high quality and an authentic enjoyment of the beer.

7 7 An overview of the PAULANER BRÄUHAUS Target group Location Buildings 80% Locals, 20% expatriates Major cities, entertainment districts, good public transportation connections, parking options, or valet parking Free-standing or integrated into a hotel with its own outside entrance. A prominent building, which is also welcome to have a nostalgic touch The majority of the restaurant area is on the ground level At least 3.80 meters ceiling height (measurement for raw construction without drop ceilings) it can gladly be higher A ceiling height of 3.80 meters is absolutely mandatory in the area of the brewing kettles! Size At least 350 seats on the inside Restaurant or guest areas (bar, restaurant, watering place, auxiliary rooms, stage, etc.) approx. 560 square meters Additionally square meters for the brewing facility Exterior seats for approx. 300 people Other operational areas (kitchen, administration, storage, etc.), approx. 500 square meters On approx. 40 square meters, the floor must have a load capacity of 1,600 kg per square meter for the brewery (storage cellar, brew house)! Beer selection Food selection Anticipated turnover Turnover composition Two to three standard Paulaner beer types (wheat beer, light lager, dark lager) enhanced by equally home-brewed seasonal Paulaner beer specialties (Oktoberfest beer, Starkbier, a.o.) Paulaner classics, international dishes, food trends 2 to 3 million p.a. 40% beer, 10% other drinks, 50% food Estimated beer sales Approx. 120, ,000 litres p.a.

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9 9 The conceptual elements with every detail thought out Good concepts have to be logical and take every detail into consideration. This enables a consistent execution and gives the guest a clear orientation. From the first site evaluation to the opening day, from the design of the menu items to the final décor element each furnishing detail and process is planned with the utmost precision in our concepts and recorded in a transparent manner. All the conceptual elements that are necessary for a successful operation of the PAULANER BRÄUHAUS are supplied in application-oriented manuals with easily comprehensible checklists, recipes, sample plans, and standard procedures: Space and Operation Food Drinks Service Training Sales Corporate Design

10 10 CONCEPTUAL ELEMENTS A live experience of the Paulaner brewing arts the greatest beer enjoyment according to old tradition PAULANER BRÄUHAUS Singapore 2 A refreshing Paulaner beer 3 Happy hours at the Paulaner beer garden 4 Home-brewed Paulaner beer specialties 5 Paulaner brewmaster W. Ködel at the PAULANER BRÄUHAUS Cape Town 6 Brewery tour with brewmaster A. Buchner at the PAULANER BRÄUHAUS Singapore Paulaner beer specialties. The Paulaner beer is brewed in front of the guests in the best tradition of the craft, based on old recipes using hops, malt, water, and yeast. Of course the brewing plants are equipped with the latest technology. The beer brewed at the PAULANER BRÄUHAUS is unfiltered naturally cloudy and always fresh.

11 11 HOME-BREWED PAULANER BEER: LIGHT LAGER This bottom-fermented light beer with its fine, hoppy aroma and natural flavor is the bestselling beer at the PAULANER BRÄUHAUS worldwide. 5 6 MUNICH DARK The dark beer gets its gold-brown color and its full hearty taste from the traditional bottom-fermented brewing procedure. It is a pleasure that lets the good old times come to life again. WHEAT BEER Combined with the best brewing wheat, a naturally cloudy and yeasty wheat beer is created. A fine yeasty aroma makes the Paulaner wheat beer a refreshing delight. The Paulaner brewmaster is not only the maker of the delicious beer, he is also the contact person for any questions that the guests or staff members may have on the subject of beer. On his tours through the brewery, he gives his guests an insight into the manufacturing process of the Paulaner beer and thus offers them an unforgettable excursion behind the scenes of the high brewing arts. He represents the authenticity and quality of the Paulaner beer and also takes care of contacts to local partners and institutions as well as to the German and international community.

12 12 CONCEPTUAL ELEMENTS The Bavarian way of life it can be experienced around the globe PAULANER BRÄUHAUS Singapore 2 Sample decoration of a PAULANER BRÄUHAUS 3 PAULANER BRÄUHAUS Dalian 4-7 PAULANER BRÄUHAUS Singapore Food. The menu mostly offers the typical Bavarian and Munich specialties (Paulaner Classics) along with popular international dishes and food trends that correspond well with the Paulaner beer specialties. Crispy pork knuckles, bratwursts, sauerkraut, and fragrant apple strudels are the top-sellers in the PAULANER BRÄUHAUS restaurants worldwide. Much to the surprise of the guests, some dishes are served on raw wooden boards, in large bowls, or cast iron pans. A real eye-catcher! Ambiance. Diverse table shapes and sizes, long benches with loose cushions, shiny, scrubbed, and massive wooden tables without table cloths, along with

13 classical music and easy listening to stirring party music. On special occasions there are yodeling and brass music, such as e.g. at the Oktoberfest. Sales promotion. Germany, Bavaria, and Munich, the roots of the PAULANER BRÄUHAUS, supply an immeasurable source of ideas leading to concrete activities around sales promotions and public relations. The highlight of the year is the Oktober- fest at the PAULANER BRÄUHAUS. 7 wooden wall paneling create an atmospheric blend and make sure that the guests feel just as if they are visiting Munich. The PAULANER BRÄUHAUS is decorated with countless implements from the brewing culture: beautiful beer steins, old engravings in lush frames, deer antlers, and pictures of Munich. Just as it is in Munich whenever a cozy ambiance is desired. Especially exciting is the combination of traditional decorating elements with contemporary details. Entertainment. In the late evening hours, a convivial mood pervades the PAULANER BRÄUHAUS dancing and celebrating are desired. By moving the tables, a dance floor can be created in no time. The repertoire ranges from

14 14 Brewing arts and gastronomic competence foundations to build on The Paulaner Brewery was founded in 1634 by monks of the Order of Saint Francis of Paula in Munich, where the headquarters of the company are still located today, and where the renown beer specialties, such as the Paulaner wheat beer, the Oktoberfest beer, or the Paulaner Salvator are produced in shiny copper kettles. Over the centuries, nothing about the four basic ingredients has changed: hops, malt, water, and yeast lend an incomparable and fresh taste to the Paulaner beer specialties. No preservatives, artificial colors, or similar additives are used, in keeping with the German Purity Law. FACTS AND FIGURES: Overall annual production of the Paulaner Brewery Group: 270 million litres beer Amount of importers and wholesalers worldwide: 500 Export worldwide: to more than 60 countries Amount of German gastronomic enterprises where Paulaner beers are sold: more than 15,000 By now the Paulaner Brewery has developed into the best known and largest brewery in Bavaria and is the most important member of the Paulaner Brewery Group, which also includes Hacker-Pschorr, Weißbierbrauerei Hopf, Thurn & Taxis, and Auerbräu. The name Paulaner stands for the best quality and greatest beer enjoyment nationally and internationally. In close collaboration with its customers from trade, gastronomy, and the hotel industry, the Paulaner Brewery has also developed an extensive gastronomic competency in addition to its renown brewing arts. Based on this and the corresponding market experience, the desire arose to meld the typical and established beer traditions of Bavaria into a solid and multipliable concept in order to bring it to life in new locations. That was how the idea of the PAULANER BRÄUHAUS was born. The first PAULANER BRÄUHAUS opened in 1989 at the Kapuziner Platz in Munich. This laid the foundation for a worldwide success story. Today more than a dozen PAULANER BRÄUHAUS restaurants are in operation around the globe and be they freestanding outlets or integrated restaurants of a hotel they offer their guests an exceptional gastronomic experience.

15 15 A solid foundation the Schörghuber Corporate Group and Heineken Heineken, as the best known and most widely sold brand of beer worldwide, and the Schörghuber Corporate Group, as a globally active service provider, constitute an optimal foundation. The Schörghuber Group backs all of Paulaner Brewery's operations, including Paulaner Bräuhaus Consult. The Group is active in a wide range of businesses and provides employment for thousands of people. Its activities can be categorized into four company divisions: Hotel The worldwide range of hotels fascinates with the multitude of its destinations and through a clear brand profile. The 32 hotels of the ArabellaSheraton Group in Germany, Austria, Switzerland, on Mallorca, and in South Africa are among the most attractive offerings. Airplane leasing Globally successful as a niche provider: With its 26 modern short and medium distance machines, the airplane leasing company division counts international airlines among its customers and is conquering new growth markets with flexible concepts. Construction and real estate Bundled competency beneath one roof: in the company division for construction and real estate, experience and high demands for quality are responsible for the extensive customer satisfaction. The portfolio presents itself with unique and striking selections. Drinks Strong brands and a clear strategy: The drinks division appears on the market with a multitude of beer specialties, non-alcoholic beverages and wine a strong force in the German beer market with an international orientation. 100 % Heineken International B.V. 49,9 % 50,1 % Paulaner Brau Beteiligungs GmbH 100 % 100 % 62,73 % 50 % 50 %

16 16 Paulaner Bräuhaus Consult a competent partner for all conceptual questions PAULANER BRÄUHAUS RANGE OF SERVICES: A brand concept that has proven itself successfully on the international market for over ten years Home-brewed branded beer as a distinguishing feature The utmost dedication by the Paulaner brewmaster, who brews Paulaner beer and ensures guest loyalty through effective advertising appeal Expert competency in the areas of planning, implementation and support by more than a dozen PAULANER BRÄUHAUS worldwide Extensive business experiences from the independent operation of the PAULANER BRÄUHAUS Singapore Seven manuals for these areas: Space and operation, food, drinks, service, training, sales, and corporate design An active project management that supports the planning, implementation, and adjustment of the concept at any desired location Constant support service by Paulaner Bräuhaus Consult Paulaner Bräuhaus Consult (PBC) is a 100% subsidiary of the Paulaner Brewery and was founded in Its task is to continue developing the PAULANER BRÄUHAUS concept and advance a worldwide expansion together with its cooperation partners. Under the management of PBC, more than a dozen PAULANER BRÄUHAUS restaurants have already been realized successfully. The main task is the optimum support of the partners in the planning and implementation phase as well as during the operation of the restaurant. Investors and operators not only profit from the profound know-how of the PBC consultants but also from the practical experiences of other brewery operators, who consider each other colleagues regardless of all national borders and regularly communicate even on a personal level. The most important work foundation and concrete assistance for all operators are the detailed manuals that were developed by PBC under the consideration of all operational requirements. These manuals enable the realization of a PAULANER BRÄUHAUS that is both time and cost efficient and also consider national, location- and operator-specific particularities. Concrete equipment guidelines, construction drawings and material and color samples, for instance, ensure that the furnishings can be manufactured onsite in the most economical and problem-free manner. The cooperation model The PAULANER BRÄUHAUS restaurants are very deliberately not offered as a franchise system. Recent years have shown that it is far more important to work onsite in a cooperative way with partners while also assuming responsibilities. This concept goes far beyond the mere payment of a franchise fee.

17 17 Through the onsite production of Paulaner beer, there is a tight connection between PBC and the operator. The brewmaster occupies an extremely important position by taking on responsibility for the production and quality of the main distinguishing product and revenue source. The investor provides the overall investment for the construction of a PAULANER BRÄUHAUS, while the operator supplies the operational services, such as the food production, service, and sales. This division of responsibilities has proven itself as a sustainable foundation for good and enduring partnerships, which are not geared towards a rapid expansion but long-term success. Paulaner Bräuhaus Consult Offers PAULANER BRÄUHAUS as an internationally successful restaurant brand The brand world of Paulaner Paulaner beer home-brewed onsite as a comprehensive nohassle package in respect to the brewery Personal PR with guest contact by the brewmaster Project planning service Project support Continual support Manuals Beer, brewmaster, support License fee Project planning service, know-how Project fee Operator Gastronomic management of the PAULANER BRÄUHAUS The operator is either an independent leaseholder or employee of the investor Finances operating equipment Buys Paulaner beer (license fee) Lease object Lease / profit Investor Provides Project fee (for planning and pro ject costs) Finances Brewery Kitchen equipment Restaurant furnishings Receives Return of the investment through a lease or profit-sharing

18 18 Facts and figures that speak for themselves Investment Planning and project costs , Brewery , Kitchen equipment , Restaurant furnishings , Investment amount , Expected turnover 2-3 mio p.a. Payback period 4-6 years For clarification: All numbers are based on a sample restaurant. The costs for the construction of the building or architects fees are not included. The calculation assumes that the building is being converted and that all the required preparatory work has been completed. Average freight and customs fees are included in the investment amount. This does not include the operating equipment of the PAULANER BRÄUHAUS (dishes, flatware, cash registers, etc.) at the amount of approx. 200,000 EUR. The expenses for the starting phase of the business have to be budgeted additionally. Additional costs and fees such as concessions or specific taxes which may be incurred in particular countries are not included in the total investment sum. A detailed investment and profit and loss statement is carried out in the planning phases by Paulaner Bräuhaus Consult. At that point the foundation is set by the particularities of the country as well as the concrete location.

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20 Paulaner Bräuhaus Consult GmbH Hochstraße München Telephone +49/89/ Telefax +49/89/

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