BBB4M ISP Presentation By:

Udo Omonosifon

“Always So Good for So Little”

Grade 12 International Business Class,April, 17th 2013.Columbia International College, Hamilton, ON.

HEADLINES INTRODUCTION NATURE OF EXPANSION COMPETITION ANALYSIS COUNTRY AND ECONOMIC FACTS RISKS INVOLVED TRANSPORTATION INFORMATION SWISS CHALET OPERATION AND RESOURCE PLAN CONCLUSION

CANADAUNITED KINGDOM

SWISS CHALET EXPANDS TO UK.(Where are we now? Where are we going? How do we get

there?)

INTRODUCTION Swiss Chalet is a retail restaurant business among

the holdings of CARA Operations Limited. Established in 1954 with Headquarters in Toronto,

Canada. 211 Restaurants across Canada. Average Annual Sales of $1.3 Billion annually. The most popular and affordable meal, the Quarter

Chicken Dinner is its signature dish. First Restaurant in Canada to be globally recognized

for healthy food offerings (over 65% healthy) in its menu.

SWISS CHALET MEALS – Bon appétit

WHY ARE WE EXPANDING TO UK?

Target location for expansion: West Minister, London, United Kingdom.

Strong economic power: - Estimated 70.4% of the Brits are employed;

- Average family weekly discretionary income - £144.

Availability of cheap labour (over 31.9 million people) Good appetite/demand for out-door meals - In 2011, 50.4% of

meals (equivalent to 5.54 billion visits) sold via fast food outlets to young adults.

Political and financial stability ($1 CAD = £0.64).BIG BEN

POLITICAL STABILITYS/NO Country Political Stability Index Year

1.) Liechtenstein 1.0 2013

2.) Norway 1.2 2012

3.) Denmark 2.2 2013

4.) Sweden 3.2 2013

5.) Switzerland 3.4 2012

6.) Austria 3.6 2013

7.) Czech Republic 3.7 2012

8.) Slovenia 3.8 2013

9.) Netherlands 4.0 2013

10.) United Kingdom 4.2 2013

BUCKINGHAM PALACE

TRAFALGAR SQUARE

AGE DISTRIBUTION IN UK

TARGETMARKET

TARGET MARKET

COMPETITION ANALYSISSWISS

CHALET COMPETITO

R

STRENGTHS WEAKNESSES

• Uniqueness of ingredients.

• Brand equity due to early franchising and expansion.

• Use of factory farming.• Use of highly refined table

salt.

• Efficient Advertising Strategy. (15 Ads)

• Food differentiation.

• Use of trans-fat cooking oil.

• Meals don’t decompose.

MOBILE APP.

COMPETITION ANALYSIS - STATS 24 competitor restaurants in West Minister, London.

Direct competitors: KFC, McDonald’s, Wimpy, Nando’s, Little Chef and Burger King.

Indirect competitors: Starbuck’s and Virgin Drinks. Mc-Don-alds,

30.00%

KFC; 12.40%

Burger King;

12.30%

Greggs, 11.10%

Other Restaurants,

18.20%

Percentage of British Restaurant Market.

HEALTH TRENDS IN THE UKTRENDS OF OBESITY AND HEALTH RISKS IN UNITED KINGDOM AS

AT 2012.ADULTS 61.3% are obese as a result of eating excessively from

fast-foods especially from McDonalds.

CHILDREN 30% of population (Ages 2 to 15) suffer health risks from fast food meals.

NATIONAL HEALTH SERVICE

Health problems associated with overweight or obesity cost the NHS more than £5 billion every year.

COMPETITIVE ADVANTAGE Swiss Chalet identifies 3 major strategies to create

advantage over competitors. These are:

Product identity, quality, and novelty. High employee motivation, good sales attitude and

creative marketing strategy. Innovative and aggressive service options.

Strategy is to leverage our widely acclaimed status as the first fast food chain to offer Allergy Guide for consumers and Nutritional Fact Sheet on meals served to safeguard consumers’ health.

Swiss Chalet are the first in Canada to use trans-fat free cooking oil in making fries thereby reducing the risk of obesity and also positioning to take the lead in UK.

UK COUNTRY AND ECONOMIC FACTSBALANCE OF PAYMENTS

Current Account Deficit as of 2012: £57.7 billion

MAIN INDUSTRIESBanking (HSBC, Royal Bank of Scotland), Oil and Gas (Royal Dutch Shell, BP, BG Group), Tourism (741,000 Canadian Tourists monthly).

FOREIGN EXCHANGE 1 Pound Sterling = 1.56 Canadian DollarPOPULATION 63,181,775 People as at 2012.

COMMUNICATIONInternet (51,444,000 internet users), Mobile Telephone (81,612,000 mobile users as compared to Canada’s 25,889,295 mobile users)

GDP PER CAPITA $36,700LARGEST CITY London. (Also UK’s capital with 13,709,000 people)

SIZE OF RESTAURANT MARKET

£26.18 Billion as of 2012

RISKS MANAGEMENT Political risks such as nationalization of assets or revocation of operating

license are unlikely. CULTURE: Varieties of high- demand & popular cuisines shall be provided

to meet local and international consumers needs. LABELLING: Allergens as well as all ingredients must be indicated

explicitly in the ingredient declaration to manage health risks. LEGAL: Comply with UK Food Standards Agency regulation:

Poultry importation into the European Union (EU) from approved sources in Brazil and Thailand.

Fulfill animal health and public health certification requirement. Evidence of legal entry of imports into EU through a Border Inspection

Post (BIP).

Calibrate drink dispenser in Pints and Litres. Serve roast lamb and delicacies during special occasions and

festivities including national holidays. On request, add red wine to “adult” drinks selection. Serve special menu including jacket potatoes on Bonfire Night

(November 5th). Add Brussel Sprouts and spices to Swiss Chalet’s salad and vegetarian

menu. Savoury home-made dipping sauce for fries, barbecues and grilled

products. Special drinks offering such as distinctively flavoured varieties of Early

Grey teas plus aromatic Italian and American coffee.

STRATEGIC MODIFICATIONS

TRANSPORTATION Supply of recyclable plastics and branded Swiss Chalet meal-boxes from

Green Ants Plastic Recycling Company, Lincolnshire will be transported using trucks.

Shipping for: Importation of Chicken from Thailand and Brazil. Transportation of kitchen and store equipment.

Means of Transport in West Minister, London include: Subways and Trains Taxis and Mini-cabs (minimum fare of £2.40) Trams linking South London and West Minister TFL (Transport for London) Bus System

OPERATION LOCATION: City of West Minister because of tourist attractions. POINT OF SALE: In-Store Dining Room and Drive-through. OPERATION HOURS: 9.00am to 11.00pm HUMAN RESOURCES: Proposed Organogram shown below.

Manager

Cashiers (8) Bar Tenders (2) Cleaners (3) Chefs (3) Waiters (8)

Supervisor

RESOURCE PLAN METHOD OF ADVERTISING: TV and Radio Ads, Embedded Internet Ads,

Facebook, Twitter, Instagram, YouTube and Pamphlets.

COST OF EXPENSES AND EQUIPMENT: £1,500,000. Break down is below:

050,000

100,000150,000200,000250,000300,000350,000400,000

12,600

240,200

65,600 52,500

400,000

29,500

370,800

15,000

Breakdown of Cost and Expenses.

Amou

nt in

Pou

nds

(£)

SWISS CHALET’S SPECIAL MEALS

SWISS CHALET IN THE LONG RUN FUTURE PLAN:

If the business is meeting its projections by the 9th month; it will start expanding to Manchester after 1 year and develop plans for the next unit. Swiss Chalet’s 5 year goal is to operate 3 restaurants in Central London.

Sale of Swiss Chalet franchise to Entrepreneurs. Backward Vertical Integration by Buying Faccenda Foods UK (Retail

Rotisserie Chicken Supplier) in order to:Lower costs.

Improve coordination in supply chain.

Attain a greater market share.

Assure a secured distribution channel.

CONCLUSION Swiss Chalet brand has built a strong reputation in Canada and has a

very high chance of making profit in the British Market by leveraging on its 59 years of experience, business-savvy customer relationship and goodwill of its overseas partners.

Swiss Chalet’s strategy to offer 'out of the box' meal solutions and customer friendly integrated services have the enabling potential for quick market access, growth and a strong positioning of the business despite the competition.

Thank You