Every1 Fast Food Business Strategies - Example

EVERY1 FAST FOOD Presented By XX…. Executive Summary Every1 Fast Food stores want to establish itself as a premier provider of healthier and natural kitchen made menus that are exciting and customized to meet customer’s needs. The ever changing healthier diets food choices and demanding customer have necessitated the idea to tap in this market. Despite being dominated with great brand products from large chains, Every1 Fast Food project to gain and grow its market share through friendly customer services that are convenience and delivered closer by help e-marketing to reach potential customers within the locality and use of its food van for timely deliveries. Every1 Fast Food targets young working professional, students and households with working mothers for its growth by providing value to the customers and establish itself as take-away fast food outlet of choice. The fast food will market majorly through e-marketing which will be an online management process that will enable Every1 fast food identify, anticipate and satisfy its target customers at ease enabling interactive, market understanding, speedy deliveries and personalization with loyal online customers for their deliveries as this will grow its fast food deliveries to targeted customers and creates strong Every1 brand. With regards to financial performance, the General Financial Numbers projected for Every1 Fast Food indicates attractiveness of Venture with a Gross Margin of 40%, Net Profit Margin 23% and a payback of 1 year. This compounded by a growing industry projects success for Every1 Fast Food invested if business plan is well executed. Every1 fast food intends to implement mile stone steps to ensure a success in the industry that includes an e-marketing platform for marketing and interacting with customers as they place and pay for orders, improving customer’s services in terms of meeting their taste and preferences, speedy and efficient deliveries at lowest cost possible, creating a strong Every1 brand by employing packaging material which are branded and environmentally friendly as well as improved customization of menu through e-marketing and door steps deliveries that meets requirements for repeat purchase and finally Every1 - Suppliers long term relationships that will enable suppliers feel part and parcel of business as it intend to maintain steady supply and all time fresh food for quality taste of Every1 brands. TABLE OF CONTENTS Executive Summary 2 1. Our Team & Organization 5 1.1 Mission Statement 5 1.2 Company Goals 5 1.3 Organization Structure 5 2. Market Feasibility 6 2.1 Market Size 6 2.2 Customers 6 2.3 Competition 6 2.4 SWOT Analysis 7 3. Products 7 3.1 Keys to Success 8 4.0 Financial plan and projections 10 4.1 Start-up Costing for Evert1 Fast Food - 2018 10 4.2 Profit & Loss projections for Every1 Fast Food as at 31st Dec, 2018 11   11   11 4.3 Break-Even Analysis 12 5. Conclusion 13 References 14 EVERY1 FAST FOOD 1. Our Team & Organization 1.1 Mission Statement Every1 Fast food’s mission is to provide healthier and natural kitchen made menus that are exciting and customized to meet customer’s needs. Quality and affordable menus that you can depend on all year round 1.2 Company Goals Market leader in take-away meals for healthier and quality diets Convenience and speedy of services at friendly prices for both at shop and home deliveries To attain a growth rate of 20% yearly, through e-marketing and strong Every1 brand positioning. 1.3 Organization Structure Every1 Fast food will be run by the owner who will be the overall manager. 2 chefs and 2 sales representatives will be hired on full time basis. Sales representatives will be hired based on merit of retail training qualifications from recognised institution and similar 1 year work experience. Part time sales representatives will be employed to meet the demand for our products and paid wages as per industry rates per hour and provide a conducive working environment for all employs as stipulated by Workplace Relations Act. The firm will also need 1 accountant who is qualified and food van driver to meet deliveries on time to our customers. 2. Market Feasibility 2.1 Market Size Fast food industry in Australia has undergone transformation thanks to consumer awareness of healthy nutritious diet leading to more operators coming in to exploit the opportunities (IBISWorld.com, 2013). According to IBIS World, ‘Growing industry participation, combined with rising prices as demand for premium products increases, is expected to drive revenue growth of 3.0% over 2016-17. Revenue is forecast to rise by an annualised 3.9% over the five years through 2016-17, to reach $19.3 billion.’ 2.2 Customers Fast food business attracts customers mainly due to convenience, price and healthy dates. Every1 fast food will be targeting young working professionals, students in universities and colleges and households with working mothers. Currently the consumers are getting their products from McDonald's, Subway, Dominos, KFC and Hungry Jack's, but Every1 fast food intend to compete in terms of speed of their services, convenience due to smaller shops closer to customers and friendly menu prices (Tustin, 2008; Conniff, 2005). With implementation of an online e-marketing, Every1 fast food will profile its online customers and plan deliveries strategies that are efficient, customized and profitable as it grow its market share through value creation for loyal customers. Rewards schemes will be put in place to reward royal customers at subsidized prizes and redeemable points for repeat purchases. Take-away packaging will be innovative as well environmentally conscious as this will go along with fast food initial aim of a healthier society stressing its commitments as stated in the mission statement. 2.3 Competition The major players in fast food industry are McDonald's, Subway, Dominos, KFC and Hungry Jack's (IBISWorld.com, 2016). With many years of experience in business and innovative menus has led to popularity of these chain stores. Every1 fast food analysis has shown the market is viable for new entrant, bringing in speedy and convenience services closer to customers and customer customised low priced menus coupled with innovative store format (Goodfood.com, 2014). Marketing will be at the core of success of the business with priorities on e-marketing which is an online management process that will enable Every1 fast food identify, anticipate and satisfy its target customers at ease enabling interactive, market understanding, speedy deliveries and personalization with loyal online customers for their deliveries as this will grow its fast food deliveries to targeted customers as it creates strong brand. 2.4 SWOT Analysis Strengths Weaknesses Friendly services at friendly environment that are fast and convenience to the customers Healthier and fresh products choices made from quality ingredients New brand that require a lot of marketing to drive sales Opportunities Threats Growing industry market that needs healthy meals at affordable prices. Partnering with likeminded businesses promoting healthy living for market share growth Great brands, products and large market share held by larger chains like McDonald's, Subway, Dominos, KFC and Hungry Jack's offering quick service restaurants 3. Products Every1 will offer traditional fast foods and customized menus to suite its customers’ needs. Our menu will entail: Chicken Fish Chips Hamburgers Sandwich pizza Doughnut Stir-through sources Mini-meal (Pre-packaged) Pastas Our recipes are unique and healthier as they will contain low levels of salt; fat and sugar which we intend to communicate health benefits in our advertisements. These products will be served in a restaurant setting and take away where the sales team will have a vehicle for deliveries and moving closer to customers from our stores for convenience guided by demand and rising need for home deliveries and strong e-marketing and interaction with customers to achieve customized deliveries at their door step. To achieve this Every1 fast food store will have a fully equipped modern kitchen and hire 2 chefs and 2 sales representatives on full time basis with retail training qualifications from recognised institution and similar 1 year work experience. Part time sales representatives will be hired to meet the demand for our products and paid wages as per industry rates per hour and provide a conducive working environment for all employs as stipulated by Workplace Relations Act. To ensure efficiency of our store the fast food will get into contracts with supplier of raw food to ensure quality and reliability of supply throughout the year. Every1 store will also adhere to Australia New Zealand Food Standards Code in its production. 3.1 Keys to Success Every1 fast food growth will be driven by creative and innovative ways of doing business. Our abled team at Every1 fast food will implement the following steps to ensure a success in the industry; i. Implement an e-marketing platform for marketing and interacting with customers as they place and pay for orders. ii. Improving customer’s services in terms of meeting their taste and preferences, speedy and efficient deliveries are lowest cost possible. iii. Creating a strong Every1 brand. The packaging material would be branded and environmentally friendly and improved customization of menu through e-marketing and door steps deliveries that meets requirements for repeat purchase. iv. Every1 - Suppliers long term relationship that will enable suppliers feel part and parcel of business as we intend to maintain steady supply and all time fresh food for quality taste of Every1 brands. Every1 fast food will see its ambitious plan of being the best fast food brand in Australian market by setting fund in its budget for the above milestones as effective implementation and willingness of management will be key factor to the fast food business success. 4.0 Financial plan and projections 4.1 Start-up Costing for Evert1 Fast Food - 2018 START-UP COSTS Cost ($) EQUIPMENT/CAPITAL COSTS Cost ($) Registrations   Business purchase price   Business name 80 Franchise fees   Licences 4000 Start-up capital 5000 Permits 3500 Plant & equipment   Domain names 250 Vehicles 6500 Trade marks/designs/patents 780 Computer equipment 5000 Vehicle registration 240 Computer software 1200 Membership fees 250 Phones 1000 Accountant fees 600 Fax machine 1000 Solicitor fees 1400 Security system 2000 Rental lease cost (Rent advance/deposit) 30000 Office equipment   Utility connections & bonds (Electricity, gas, water) 2500 Furniture 6500 Phone connection 500 Shop fit out 2300 Internet connection 800     Computer software 400     Training 1200     Wages 8000     Stock/raw materials 2500     Insurance 1300     Building & contents 3000     Vehicle 6500     Public liability 900     Professional indemnity 1000     Product liability 300     Workers compensation 450     Business assets 8000     Business revenue 2600     Printing 600     Stationery & office supplies 250     Marketing & advertising 25000     Total start-up costs $106,900 Total equipment/capital costs $30,500 4.2 Profit & Loss projections for Every1 Fast Food as at 31st Dec, 2018     PROFIT & LOSS Month 1 Month n Year 1 Year 2 Year 3 Sales 206,100 12 2,473,200 2,967,840   3,586,140   less cost of goods sold 125,100 12 1,501,200 1,651,320   1,876,500   More…           Gross profit/net sales $81,000   $972,000 $1,316,520 $0 $1,709,640   Expenses           Accountant fees 120 12 1,440 1,500   1,550   Advertising & marketing 4,000 12 48,000 26,400   30,000   Bank fees & charges 200 12 2,400 2,640   3,000   Bank interest 600 12 7,200 9,000   12,000   Credit card fees 1,200 12 14,400 8,000   3,000   Utilities (electricity, gas, water) 5,000 12 60,000 80,000   95,000   Telephone 450 12 5,400 7,500   9,820   Lease/loan payments 5,000 12 60,000 45,000   35,000   Rent & rates 2,500 12 30,000 33,000   37,500   Motor vehicle expenses 1,540 12 18,480 20,328   23,100   Repairs & maintenance 360 12 4,320 4,752   5,400   Stationery & printing 300 12 3,600 3,960   4,500   Insurance 1500 12 18,000 19,800   22,500   Superannuation 1,500 12 18,000 12,000   13,500   Income tax   12 171,468 183,582   206,469   Wages (including PAYG) 11,000 12 132,000 138,000   142,000   More…           Total expenses 35,270   594,708 595,462 644,339 NET PROFIT (Net Income) $45,730   $377,292 $721,058 $1,065,301 Gross profit margin 39%   39% 44%   48%   Net profit margin 22%   15% 24%   30%   Every1 Fast Food capital structure will be made up of $157,400, financed through owner equity of $90,000 and a bank loan of $67,400. The set-up cost will require $137,400 and starting cash position of $27,000 to enable the Every1 fast food meets it operation expenses. The projected Profit for the year 1, 2 and 3 is $377,292, $721,058 and $1,140,670 respectively representing an average return of 23% net profit margin after tax. 4.3 Break-Even Analysis Break-even analysis       Average selling price per unit $4.99 Average cost of each unit $2.99 Gross profit margin 40% Fixed costs $937,400 Dollar sales to break even $2,338,813 Number of unit sales to break even 468,700 The average selling price from or menus is projected at $2.99 with an average cost of $2.99. These will result to 40% gross profit margin. With a fixed cost for year 1 projected to be $937,000, the firm will be targeting to generate sales worth $2,338,813 or sales of 468,700 to break even which is projected to be achieved in year 1 of operation. 5. Conclusion The General Financial Numbers projected above for Every1 Fast Food indicates attractiveness of Venture with a Gross Margin of 40%, Net Profit Margin 23% and a payback of 1 year. This compounded by a growing industry projects success for Every1 Fast Food invested if business plan is well executed. The venture will be looking to achieve all this by implementing its milestone goals within its 2 years of operation that include; Improving customers services, reduced distribution costs, create a strong Every1 brand and improve customization through e-marketing and door steps deliveries. References Conniff, R. (2005). The ape in the corner office: Understanding the workplace beast in all of us. New York: Crown Business. Tustin, C. (2008). Anatomy of a business plan: the step-by-step guide to building your business and securing your company’s future, 7th ed. Linda Pinson. Goodfood.com (2014). Good Food. Available at http://www.goodfood.com.au/good-food/food-news/average-australian-eats-fastfood-nearly-every-week-20140311-34k15.html IBISWorld.com (2016). Industry Trends. Available at; https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/fast-food-services.html IBISWorld.com (2013). Fast Food Services in Australia: Market Research Report. Read More