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Business Proposal & Proof of Concept for a Restaurant for a Leading Shopping Mall

Objectives: Developing a concept for a new business vertical creation for a shopping mall giant to diversify the risk of investment and maximize the operational synergies to boost its brand image.

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Business Proposal & Proof of Concept for a Restaurant for a Leading Shopping Mall

  1. 1. TEAM 1 Ashish Doke Kush Patel Suhas Nadiga Surya Adavi Sreekanth Kyatham Xinyuan Zhang
  2. 2. Agenda • · Problem statement • · Project objective • · Market research • · Restaurant concept • · Financial projections • · Marketing strategy • Operations strategy • Future Scope
  3. 3. Problem Statement The U.S shopping mall industry is retracting. If the company continues to focus all of its resources in this domain, the chances are that the company might lose its financial muscle. The company cannot challenge its competitors and emerging players in this domain, which will result in the organization’s learning curve going stagnant.
  4. 4. Business Case The food and beverage industry is currently posting strong growth rates. It is a perfect time to invest in this opportunity. The digitization of the food industry helped reduce the operating costs and expanding customer base. This new business vertical will also help the company to diversify risk. The company can maximize the operational synergies of the two businesses verticals and boost its brand image in the market.
  5. 5. Project Objectives • Choose a strategized location to run the business successfully by achieving a significant market share in the food industry. • Propose state-of-the-art execution plan to develop a restaurant theme, choose a cuisine and restaurant name, that appeals to a large audience. • Develop a sustainable financial plan to generate a return on investment and repay debt. • Develop a unique business model for the company to expand its
  6. 6. Industry Outlook and Trends ➔ Challenging business environment ➔ Recruitment ➔ Elevated pent up demand ➔ Technology gains ➔ Food and menu trends figures in Billions
  7. 7. Why Restaurant Industry?
  8. 8. Consumer Demand
  9. 9. Consumer trends ➔Menu is still the king. ➔Order Customization ➔Ordering online ➔Loyalty programs ➔Payment Flexibility
  10. 10. Target Audience Population - City 3,00,000 Residential Population - 1 mile 10,000 Residential Population - 3 mile 30,000 AGE Group Targeted 18-49 Household Size 2 or more Household Income $40,000 Industry Base Working Class, Teenagers, Tourists Business Hub (1-3 mile) Offices, Colleges, Theatres
  11. 11. ➔Strong, diversified business community ➔Educated and experienced workforce ➔Place where entrepreneurs thrive. ➔Champion of alternative transportation. ➔Minnesota is ranked 2nd on Forbes quality of life. Location: Minneapolis
  12. 12. Demographics of Minneapolis (2015) Population 412,517 Households 176,878 Avg Household Size 2.22 Median Age 32.4 Median Family Income ( Minneapolis - St. Paul Bloomington) $69,183 Median Family Income of Minneapolis $51,480 Per Capita Income of Minneapolis $32,647
  13. 13. Population by Household Type & Race
  14. 14. Food Trends • Consumers seek fresh, natural and minimally processed foods. • Health and wellness is a trillion dollar industry in 2017 • Younger consumers are most willing to pay a premium for health attributes. Health and Wellness growth market
  15. 15. Type of food • Delicious, premium, and nutritious. • Products that are designed to promote health and wellness. • Products that are made from 100% fruit and vegetables without any added ingredients.
  16. 16. Restaurant Concept ➔A fast casual restaurant ➔Intermediate concept between fast food and casual dining restaurant ➔The menu consists of better quality ingredients. ➔The quality of food and prices tend to be higher ➔Ex: Mexican Chipotle Grill, Panera Bread etc
  17. 17. • Cold Pressed Juice • Made by pressing fruits and vegetables under high pressure • Cold-pressed juice market to grow at CAGR 10% by 2022 • Smoothies • Global smoothies market to grow at a CAGR of 7.1% by 2020 • A thick blended beverage with shake like consistency • Acai Bowls • Eating from bowls is a trend and encourages more takeaways • A really thick smoothie topped with oatmeal or fruits Menu
  18. 18. Competition Name Menu Price Reviews Juice So Good Cold pressed juice Smoothies Acai bowls Coffee Under $10 4.0 Jamba Juice Fresh squeezed juice Pudding cups Fruit & Oat bowls Smoothies Moderate 3.0 Truce Cold pressed juice Pudding Bites Smoothies Moderate 3.5 Green Bee Juicery Cold pressed juice Pricey 3.5
  19. 19. Marketing strategy •Grand opening to build buzz & create Brand image • Connect through Social media platform • Hire Agencies for Marketing and Web/App development • Location based action strategy • Loyalty program and In-store Wifi • Maintain a 5P model
  20. 20. Operation Strategy POSITION FULL TIME General Manager 1 Kitchen Manager 1 Asst Manager 1 Line Cook 2 Servers 12 ➔ Training ➔ Daily operations & production ➔ Customer Service ➔ Management Controls: 1.POS System 2.Time & Attendance System 3.Safety Reviews ➔ Administrative System: 1.Daily Cash Control
  21. 21. Financial Projections • Footfall density • In-restaurant = 50 person/day on weekdays and 70 person/day on weekends • Take away = 40 person/day on weekdays and 60 person/day on weekends • Sale will increase by 10% every six months. • Total expenditure per month remains constant throughout.
  22. 22. Financial projections Total sales ● In-restaurant ● Take-away $12,480 per month $10,240 per month Total Expenditure ● Capital (bank loan) ● Capital expenditure ● Operating cost $2,50,000 $1,15,500 $34,873 per month
  23. 23. Year On Year Projections Profit at the end of 2017 = $-1,32,204 Profit at the end of 2018 = $-72,090 Profit at the end of 2019 = $648 Profit at the end of 2020 = $88,662 The payback period of the project = 3 years
  24. 24. SWOT STRENGTHS 1. No exclusive Juice o within a 5 mile radius. 2. Minneapolis being a health conscious city, we have a great location advantage. 3. Most of the ingredients being fresh produce, would be saving on refrigeration, preservatives and processing of food. WEAKNESSES 1. Lack of brand popularity, given we are a new player 2. Limited budgets for marketing/awareness activities 3. Lack of previous experience in the Minneapolis area OPPORTUNITIES 1. Ride the wave of Cold Press Juice frenzy. 2. Increase market size significantly, as many customers are not yet aware of our brand. 3. Franchises can be offered to interested parties, allowing the business to grow faster. THREATS 1. Competition from existing restaurants to expand into juices and health bowls. 2. Major chains with heavy budgets can easily try to enter this market. 3. A decline in economy might reduce user spending and impact eating out habits. 4. Expanding our Digital footprint might bring some threats in that domain.
  25. 25. Unique Selling Point of the Project: • Fast and healthy food • Caters exclusively to nutritive food only • Competitive pricing • Give Customers DIY Juice options • Location & Event-based Pricing • Search Engine Optimized Digital Interface for maximum visibility • Customer Tracking, Loyalty & Rewards Program
  26. 26. Conclusion: Future scope • Focus laid on developing the restaurant to achieve a successful Return on Investment. • Based on the appeal this business generates, it might lend favourable expansion opportunities in other business verticals. • The comprehensive approach adopted in building the business philosophy, operational & financial systems and marketing strategies will enhance the expansion opportunities. • The processes created for this business entity can also be templated for expansions in other business verticals. • This adds profitability, visibility and a cumulative brand value to establish the company as a successful business conglomerate in dynamically evolving markets.