gourmet goodness gourmet goodness team: hesha vaishnav sachi kitazaki pawel kuzemczak rachel wong...
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Gourmet Goodness
Gourmet Goodness Team:Hesha Vaishnav
Sachi Kitazaki
Pawel Kuzemczak
Rachel Wong
Heather Easton
Gourmet GoodnessMission Statement
Provide high quality, fresh and delicious food in a timely, environmentally friendly, and financially profitable way.
ObjectivesGrow sales over the next 10 years
Develop culinary skills of our chefs and junior staff
Earn a reputation of high quality and fast service for reasonable price
Be environmentally friendly
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WHO IS GOURMET GOODNESS?
Marketing Plan
Delicious, Wholesome, Globally Inspired Lunches
Cater to the Downtown Vancouver Market
Doorstep Delivery, Every Weekday
Product
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WHAT DIFFERENTIATES US?
Marketing Plan
Product Appeals to the Market
Service Comfort and Convenience
Satisfied Customers Product
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WHO IS OUR CUSTOMER?
Marketing Plan
Frequently busy and time-constrained
Used to eating out
Cosmopolitan tastes
Willing to $ for quality, novelty, healthy
Product
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WHAT WILL THEY PAY?
Marketing Plan
Market willing to pay $12 - $17
Premium chargedDoorstep Delivery
Quality, Novelty, Health
Annual price adjustment
Pricing
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HOW WILL WE ATTRACT THE MARKET?
Marketing Plan
Create a positive buzz
Increasing product awarenessLocal Vancouver dining festivals and events
Tasting booths at hot-spots
Target mailing of promotional material
Local TV features
WebsiteOnline banner ads
Other
Promotion
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HOW WILL WE MAKE IT HAPPEN?
Marketing Plan
Place
Customer WebsiteGourmet Goodness
Order
Receipt of order
Meal Preparation
Delivery
MoneyMoney
Fees
Suppliers
Order, payment
Ingredients
Credit Card Companies and Pay Pal
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WHAT ARE OWNER/MANAGER’S EXPERIENCES?
Market Analysis
Experience in kitchen management
Supported by advisors
Past Performance
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WHERE WILL WE OPERATE?
Market Analysis
Downtown Vancouver
City of Vancouver
Population of 600,000 and growing
Culturally diverse
Professional workers
Home to corporations in various industries
Geographical Market
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WHO ARE OUR COMPETITORS?
Market Analysis
Competition
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WHERE IS THE FUTURE GROWTH POTENTIAL?
Market Analysis
Downtown Vancouver working population other than our target individuals
Other cities (franchising)
Different target market
I.e. School children
I.e. Industrial site workers
Opportunity
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HOW BIG IS THE MARKET?
Market Analysis
Market Potential
Professionals in Vancouver 76,000 (1)Working downtown (1)X50% 38,000 (2)Age target (20s, 30s, 40s) (2)X60% 22,800 (3)Buy lunch (3)X60% 13,680 (4)
Price/meal 15 Average work weeks/year 52 Number of days/week the target will buy lunch 5
Market potential (annual revenue) 53,352,000 Number of meals/day 13,680
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HOW MUCH CAN WE REAP?
Market Analysis
Expected Market Share
Maximum kitchen capacity (# of meals) 350 Expected operating capacity for 1st year (43%) 150
Number of weeks of operation 52 Number of days of operation per week 5 Price per meal 15 Market potential (calculated previously) 29,548,800
Projected revenue/day for 1st year 2,250 Projected revenue/year for 1st year 585,000 Market share for 1st year 2.0%
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HOW MUCH MONEY DO WE PLAN TO MAKE?
Market Analysis
Sales
$1 million in the third year
$2 million by the fifteenth year
Profit
Expects to turn a profit starting in the second year
Sales and Profit Objectives
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WHAT DOES OUR ENVIRONMENT LOOK LIKE?
Market Analysis
SWOT ANALYSIS
Strengths• Head chef (business idea, proficient in creative cooking, management experience, service-oriented)• Unique target focus (lunch delivery to office workers only)• Expected reputation for quality• Product variety• Excellence in customer service• Continuing product innovation• Familiarity with geographic area• Connections with suppliers• Excellent location (downtown)
Weaknesses• Lack of experience in delivery business• Small market share• Need for additional capital for initial operations
Opportunities• Availability of fresh ingredients (fish, vegetables, fruits)• Cultural diversity in Vancouver• Rising interest in natural products/ingredients• Future expansion opportunities• Increasing communication methods (internet)• Increasing interest in time savings
Threats• Imitation of strategy by competitors • Food safety • Increased cost for being environmentally friendly• Difficulty in finding and retaining employees with multiple skills and abilities (cooking, customer service, etc.)
Operations Plan
WHERE ARE WE LOCATED?
Core downtown Vancouver area
Critical success factors
LOCATION
Operations Plan
WHAT ARE OUR OPERATING HOURS?
Lunch time
Weekdays only
Cost minimization
WHEN WE OPERATE
Operations Plan
WHAT ARE OUR OPERATIONAL GOALS?
Standardized lunch menu
Efficiency of operations
Cost management
GOALS
Operations Plan
HOW WILL WE OPERATE?
Employee Washroom
Floor Plan
Prep Tables
Cooking Area
Walk-in Refrigerated StorageReceiving
Area
Dry Storage
Walk-in Freezer
DishPackage Storage
Office
Dishwashing Area
Salad Prep
Baking Area
Refuge Storage
Order/Delivery Area
EmployeeBreak Area
Operations Plan
WHAT IS THE PRODUCTION PROCESS?
Customer order process
Food preparation before and after lunch
Delivery
PROCESS
Operations Plan
WHAT ABOUT OUR QUALITY?
Continuous feedback
Food inspection before delivery
Customer satisfaction surveys
Suppliers and inventory
STANDARDS
Operations Plan
WHAT IS OUR STRATEGY AND CAPACITY?
Initial capacity
Future opportunities and demand
Possible expansion alternatives
Franchising
Expansion of current location
Additional locations
Expansion of services
PRODUCTION
Operations Plan
WHAT ARE OUR EXPENSES?
Product costing
Direct Material Purchases Unit Price
Perishable Ingredients 5.50
Non Perishable Ingredients 1.50
Packaging Per Lunch 1.00
Utensils 0.10
Total $8.10
COSTS
Operations Plan
WHAT ARE OUR EXPENSES?
Operating expenses
Lease negotiation
Utilities
Minimal waste
Maintenance
COSTS
Operations Plan
WHAT ARE OUR EXPENSES?
Capital expenses
Summary of Capital Expenditures
Delivery Equipment
5,098.00
Basic Kitchen Set Up
40,144.44
Kitchen Supplies
21,792.85
Delivery and Installation
40,000.00
Office Equipment
3,000.00
Working Capital Requirement
40,000.00
Total
150,035.29
COSTS
Operations Plan
WHAT ARE OUR EXPENSES?
Working capital requirementsWorking Capital Requirement -
Break Down
Non Perishable Pantry Items
7,500.00
Marketing Expenses
7,000.00
Perishable Items for Week of
Opening
2,500.00
Wages
7,000.00
Other Misc Costs
16,000.00
40,000.00
WC REQUIREMENTS
Human Resources Plan
Human Resources Plan
STRUCTURE
HOW ARE WE STRUCTURED?
Owner/Manager/
Chef
Entry level Souse Chef
Preparers/Delivery
Preparers/Delivery
Preparers/Delivery
Preparers/Delivery
Preparers/Delivery
Organization Structure
Human Resources Plan
Head ChefManaging experience
Kitchen / Culinary experience
WHO DO WE NEED?
KEY SKILLS
SkillsProficient in all areas of catering business
Service- and people-oriented
Ability to anticipate current trends
Drive to succeed
Effective in high-stress environments
Human Resources Plan
Souse chefCulinary school graduate
SkillsPassion to learn from experienced chef and start up company
Market“Chefs are in demand” – Straight.com
Will be attracted by flexible hours and learning
ROLES
WHAT ARE THE KEY ROLES?
Human Resources Plan
Preparation and Delivery StaffAspiring to work in the culinary industry
SkillsPeople-person and extremely friendly
MarketGood
Culinary students need practical experience / apprenticeship position
WHAT ARE THE KEY ROLES?
ROLES
Human Resources Plan
Job search websites
Advertise for Sous Chef position
ChefsEmployment.com
National Association of Catering website
RECRUITMENT
HOW ARE WE GOING TO RECRUIT THEM?
Human Resources Plan
Vancouver Sun and The Province newspapers
Advertise for preparation staff positions
Culinary schools in VancouverCurrent students seeking part time positions
Recommended graduates for Sous Chef position
HOW ARE WE GOING TO RECRUIT THEM?
RECRUITMENT
Human Resources Plan
Seminars
First yearTo refresh and reshape existing skills with cultural trends and cooking techniques
Different seminars totalling $3,000
Subsequent years ($500/year)Update with new tips and ideas developed in the industry over the year
Food safety coursesTRAINING
HOW ARE WE GOING TO TRAIN THEM?
Human Resources Plan
On the job trainingExecutive chef will train the sous chef in preparing, cooking, and presenting techniques
Both chefs will assist train the preparation staff in preparing techniques and other administrative duties
TRAINING
HOW ARE WE GOING TO TRAIN THEM?
Human Resources Plan
2008, 2009220,000/year
2010250,000/year
Next seven years300,000/year
Note: These are approximates
WAGE COSTS
WHAT CAN WE EXPECT FOR WAGE COSTS?
Human Resources Plan
Year Wages to Sales (%)
2008 37
2009 28
2010 24
2011 27
2012 22
2013 19
2014 19
2015 19
2016 19
2017 19 WAGE COSTS
WHAT CAN WE EXPECT FOR WAGE COSTS?
All successful business are based on a good idea
Financial Plan
Financial Plan
Some our of key ratios:
Gross and Net Profit Margin
Labour expense as a % of sales
Inventory Turnover
FINANCIAL INDICATORS
HOW IS THE BUSINESS DOING?
Financial Plan
What we’re asking for:
Source of Financing
Amount
Debt $ 150,000
Equity $ 25,000
The Head Chef is contributing $75,000 of his own resources.
OUR REQUEST
WHAT WE NEED FROM YOU:
Financial Plan
Expected Returns for our Investors:
Long Term Debt will cost 8.5% annually and will be repaid at the end of the fifth year.
Equity Investors will receive dividends of 50% of net income after year four. This creates a 47% external rate of return.
FINANCIAL RETURN
WHAT YOU CAN EXPECT:
Financial Plan
This business is projected to return a $600,000 NPV
The internal rate of return (IRR) is expected to be 90%
FINANCIAL RETURN
WHAT THIS MEANS TO YOU:
Financial Plan
We identified three key success factors for Gourmet Goodness:
1. Number of Lunches Sold
2. Selling Price
3. Direct Cost of Ingredients
KEY SUCCESS FACTORS
WHAT MATTERS IN THIS BUSINESS?
Financial Plan
Variable Worst Case Base Case Best Case
Quantity of Sales Per Day 50 150 210
IRR on Equity 23% 90% 173%
Avg. Selling Price 12.00$ 15.00$ 17.00$ IRR on Equity Negative 90% 163%
Direct Costs 10.10$ 8.10$ 7.10$ IRR on Equity 24% 90% 126%
SENSITIVITY ANALYSIS
WHAT IF EXPECTIONS ARE NOT MET?
Gourmet GoodnessOur business idea is to take our food which is…
Healthy
Delicious
Ethnically Diverse
To our target markets who are…Young
Urban
Working professionals
And earn a reasonable return for our shareholders:
NPV = $600,000
IRR = 90%
We will do this by minimizing our cost structure
Hours of operation mimic our target customers
Minimal initial capital investment
Actively managing our cost per lunch
Utilizing our staff for a variety of functions
And maximizing our revenue potentialBe a first mover in a large and growing market
Aggressively market our service
Create a buzz about the food and delivery
Charge a premium for delivery service
Gourmet Goodness
And in doing all of this, we will ensure that we are acting in a socially responsible way
Using environmentally friendly food containers for delivery
Provide healthy and nutritious choices for our customers
Utilized the local suppliers for ingredients.
We feel that this combination will yield business success.
Gourmet Goodness