Luna Tierra
Business Plan
World Fusion Eatery
Juice and Cocktail Bar
Austin Minnich
Michelle Morrisey
Maggie Sullivan
Alexis Koenig
Abigail Scherer
Angela Mariscal
Katherine Hunter
1
Luna Tierra
Table Of Contents
Company Summary:
Mission Statement:
2
2
Executive Summary:
Services
Customers
Management
3-4
Company Description:
Team and Organization
Products and Services
The Menu
Service and Delivery
Operating Plan
5-11
Health Repercussions and Analysis:
12-13
The Market:
Market Size and Trends
Market Size
Market Trends
Target Market
Competing Organizations
Competitive Analysis
SWOT Analysis
Competitive Advantage
Marketing Strategy
Description on Web
Community Presence
Social Media
Emerging Social Media Trends
14-19
Goals, Risks, and Strategies:
Short Term
Long Term
19-21
Financial Assumptions:
22-23
References:
24-25
Company Summary
Luna Tierra is a world fusion restaurant that doubles as a juice and cocktail bar. The
restaurant's produce is sourced hyper locally from the expansive culinary, patio, and rooftop
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Luna Tierra
gardens; all of which are located on-site. All ingredients not produced on site are sourced locally
from organic farmers within the community. Luna Tierra provides their customers with plantbased meals designed by a certified Natural Chef and Registered Dietitian. Striving to use the
most sustainable practices in an effort to honor the Earth, most menu items are plant-based. Our
adventurous and seasonal meals implore the average restaurant goer (omnivores and herbivores
alike) to set aside any preconceived notions of the necessity of meat in a fulfilling and delicious
meal. The juice and cocktail bar provides hand-pressed juices in addition to artisan cocktails,
craft beers, and organic wines. Luna Tierra puts a new spin on the average night-life scene by
keeping the kitchen open until close. By doing so, they hope to help foster the connections
between the dynamic food and drink selection, regardless of the time of night. Along with the
worldly food and drinks of Luna Tierra, the live weekend entertainment will also be enjoyable
and focused on cultural diversity.
Luna Tierra Mission Statement
Our aim is to provide an atmosphere focused on fostering connections and honoring
diversity. To achieve our aim, culturally collaborative drinks and cuisine will be served with
complete transparency. We take pride in the fresh and wholesomeness of our food, which is
procured through sound cultivation with an emphasis on community building.
Executive Summary
3
Luna Tierra
Centrally located in the Hillcrest neighborhood of San Diego, Luna Tierra is a new,
sustainably operating bar and restaurant welcoming all crowds of twenty-one years and older.
With indoor and patio seating, it is a large sized establishment that provides a lot of open space
for customers to hang out and listen to the live music. Our facility offers sustainable sourcing of
local foods to create our unique menu items from our onsite greenhouse, state of the art prepkitchen, and beautiful garden patio seating. Luna Tierra offers an atmosphere conducive to the
trending market of sustainability. Investing in Luna Tierra will provide your community with a
business that offers a healthier sustainable night-life. Setting the trends for a better, less hungover tomorrow.
Figure 1: Luna Tierra’s Location and Square Footage- 3840 6th Avenue,3828 6th Avenue, and
3818 6th Avenue San Diego, Ca (14,688 sq. ft. total)
Services
Luna Tierra puts a fun twist on Hillcrest’s contemporary dining scene while standing by
their commitment and beliefs in remaining a local establishment. Pairing their worldly plates
with specialty juices and cocktails and providing live entertainment brings the city’s cultural
diversity to life. One of Luna Tierra’s primary focuses is to provide a welcoming environment
that can help build and strengthen relationships within the community. With a certified natural
chef and registered dietitian as manager on staff, each vegetarian based dish is guaranteed not
just fresh but nutritious as well. Great emphasis is put on the wide selection of options offered;
which are a direct reflection of the chef’s passion for preparing and sharing authentic ethnic
foods.
Customers
The owners envision that Luna Tierra will be seen as a trendy, yet sophisticated spot to
grab a drink, order small plates, and socialize while listening to live entertainment. Because the
juice and cocktail bar is a major component to the experience, Luna Tierra puts primary
4
Luna Tierra
emphasis on its 21+ crowd. The patio is limited to only those customers over 21 years of age,
and after 10 o’clock p.m. the restaurant becomes exclusively 21+. Luna Tierra aims to attract
adults within the 25-45 year old range. Based on its selection of performers, the target audience
includes artsy individuals with a passion and appreciation for creativity, music, and art. A third
group that Luna Tierra hopes to target is the health conscious/eco-friendly consumer. San Diego
is home to a diverse mixture of people and cultures, which is why this location was selected.
Management
Luna Tierra functions as a limited partnership run by Kat Hunter, Michelle Morrissey and
Angela Mariscal. Together they have established a solid team of hard working individuals to
help run the restaurant. As a limited partnership, each of them hold personal responsibility for
their amount of the business investment. Together, they pooled together $7,000,000 from their
trust funds ($2,500,000 each) to start up the business. With a highly skilled natural chef, organic
farmer and RD on staff, Kat, Michelle and Angela depend on their skilled teams for their
expertise when planning healthful, while still practical, menu items. The highly skilled team and
thoroughly envisioned plan focused on sustainability will help target large, environmentalist
investors for subsequent costs. The three owners split responsibilities among themselves with
Kat focusing on the front of the house customer service and human resources portion, Michelle
managing the finances and accounting portion, and Angela overseeing the garden and kitchen
prep team and development.
Company Description
Team & Organization
Within the company, employees combine individual roles, skills, and experiences to
accomplish the goals of Luna Tierra. To ensure all core responsibilities are covered, certain
individuals are needed to perform specified tasks. The core team includes Kat, Michelle and
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Luna Tierra
Angela managing skilled teams of professionals specified by fields of expertise. With Kat
overseeing front of the house services regarding customer satisfaction and employee well-being,
she will work hand in hand with the restaurant’s General Manager and the experienced wait staff
to provide the best possible atmosphere at Luna Tierra. Michelle, in overseeing all financial and
public relation aspects of the company, will manage an advanced facilities, marketing and
accounting team. Angela will act as the kitchen and garden coordinator collaborating with an
organic garden manager, natural chef, onsite registered dietitian and dream team member, Alice
Waters, to provide the unique, nutrient-dense products of Luna Tierra.
Kat has served in the foodservice industry for many years dating back to her college
years managing a successful soft serve yogurt shop in the Hillcrest district. After she graduated
from San Diego State University with a degree in Foods and Nutrition she pursued a career in
hospitality and customer service in food. She served as the general manager of Whisknladle for
several years and since has created a repertoire for offering exceptional service leaving
customers happy while successfully managing teams of professional servers. Her trustworthy and
authoritative traits allow her to provide direction to her front of the house management team
consisting of the restaurant’s General Manager, lead server, lead hostess, lead busser and over-all
wait staff.
After graduating from San Diego State University with Bachelors of Science in Foods
and Nutrition, Michelle Morrisey went on to pursue a career in accounting and finance working
her way up to management for Scripps Hospital. She returned back to school to receive a
Master’s in Business Administration from University of San Diego. Upon receiving her MBA,
she began working for the marketing/accounting branch of the corporate restaurant business
Cheesecake Factory. While she enjoyed the work she was doing there, after several years she
wanted to start something new and exciting. This is what inspired her to go into business with
Kat and Angela and start their own business. As head of the financial and public relation aspects
of Luna Tierra, Michelle’s team includes a LEED certified facility designer. She works closely
with Angela when hiring kitchen staff members such as the dishwashers, expos, servers,
hostesses, etc.
Angela graduated from San Diego State University with a Bachelor’s of Science in Foods
and Nutrition. She further continued her education by pursuing her R.D. credential through an
internship program emphasizing in food service. She began her career working as a BOH
manager for a college campus dining hall, and acquired valuable skills for efficiently running a
kitchen over the course of her time there. After several years of experience working in the
foodservice industry, Angela decided branch out and team up with Kat and Michelle in starting
their own restaurant. Angela works alongside the head chef, a full-time onsite RD, and an
organic gardener. She is also the head manager for all kitchen staff.
Luna Tierra will be structured as an innovative organization. Each employee will feel a
sense of place and empowerment throughout the company. There will be many teams throughout
the organization including teams for land development/on-site cultivation, menu development,
nutrient analysis, event planning and facility design. All teams are constantly seeking feedback
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Luna Tierra
for improvement and to build on the latest trends. Flat hierarchy of management helps to
facilitate the corporate culture.
Products and Services
The Menu
Luna Tierra’s menu will be cyclic with the seasons. Our conventional restaurant will
source primarily from local, organic farms and from an onsite greenhouse to provide fresh whole
produce and grains year round. The menu will thus correlate with whatever is in hand in the
current season from the farms, while the greenhouse will offer foods needed for specific dishes
that may be out of seasons (i.e. tomatoes for pizza sauce).
The restaurant focuses on offering world fusion cuisine that will take the consumer’s
palate worldwide in the span of the night. Optimizing this experience are the unique juice and
cocktails made fresh and created with thought as to pair each dish while contributing to the
night-life scene and fun.
Service and Delivery
Luna Tierra honors the idea that a community's’ health is built from the ground up. That
is why we are committed to offering San Diego locals optimum, nutrient dense, organic foods
with easy accessibility. Food will be made from scratch onsite by professional chefs with an
expertise in organic and plant based dietary nutrition in order to maximize nutrient density and
flavor in each of our dishes. With a strong night-life based clientele, customers can visit the
restaurant throughout the night and order from our open kitchen that does not close until the
doors close at 2 am. With the option to either dine in and visit with friends in our beautifully
designed indoor or garden patio seating with live music on weekends, or to order take-out from
our front of the house hosts, our new friends will leave happy and ready for their next experience
at Luna Tierra!
Figure 2: The Menu
Menu Item
and
Description
Thai’-ed Up!
Seasonal
Vegetable Pad
Thai made with
locally sourced
rice noodles,
garden fresh
veggies and a
sauce that is
Petite Pepper
Tapas
Padrone
peppers stuffed
with amaranth
seed, local goat
cheese and
herbs.
Not-cho’ average
‘Dream in
nacho
Green’ raw juice
House made
A refreshing blend
quinoa chips
of aloe vera,
layered with the
cactus, spinach
best queso sauce
and seasonal
made from local
berries to help
cheeses, under a
rejuvenate you
bed of seasonal
from last night’s
Lavendaze
handcrafted
hard lavender
lemonade. Go
ahead, get
another or
maybe two...
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Luna Tierra
guaranteed to
spice up your
night!
greens, and
sauteed veggies!
shenanigans (and
leave you ready
for the ones
ahead)
Cost
$3.00
$2.34
$3.12
$3.37
$2.97
Price
$12.00
$9.36
$12.48
$13.48
$11.88
Margin of
Profit
$3.60
$2.81
$3.74
$4.04
$3.56
Operating Plan
In partnership, Michelle, Kat and Angela will combine trust funds to purchase a 14,688
square foot venue at the price of $7 million. The venue will be equipped with 9,700 square feet
of photovoltaic solar panels, which will generate about 97 kWh of energy per day (www.solarestimate.org). Any excess energy will be stored for later use. This energy generation will account
for all electricity needs, as Luna Tierra will be purchasing energy efficient kitchen equipment
when available. Also integrated into the LEED certified building design will be a state-of-the-art
grey water filtration system which allows used water to be filtered for toilet and drip irrigation
use for the onsite gardens and greenhouse. In order to keep all greywater to high standards, no
toxic chemical cleaning products will be used.
Figure 3: Equipment
Equipment (amount)
Source
Energy Requirements
Cost
Photovoltaic Solar System
Sullivan Solar
Sunlight
$84,000
Grey-Water Filtration
System
ReWater Systems
Water, Electricity
(5.52 kW/day)
$14,382
Greenhouse (1)
Gothic Arch
Greenhouses
Water
$6,995
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Luna Tierra
Dual Oven (1)
Mission Restaurant
Supply
Electricity (11 kWh)
$7,147.25
Range Oven (1)
Webstaurant Store
Natural Gas
$3,708.60
Flat Top Griddle (1)
Foodservice
Warehouse (FSW)
Electricity (0.8 kWh)
$8,043.65
Ice Machine (1)
FSW
Water, Electricity
(0.83 kWh)
$1,568
Walk-In Freezer (1)
FSW
Water, Electricity
(34.776 kW/ day)
$5,157.99
Walk-In Refrigerator (1)
FSW
Water, Electricity
(23.184 kW/ day)
$4,337.99
Bar Refrigerator (1)
Webstaurant Store
Water, Electricity
(10.21 kW/day)
$2,449.76
Juicer (3)
Williams-Sonoma
Electricity (2.4 kWh)
$440.85
Blender (2)
Lowes
Electricity (1.2 kWh)
$238
HVAC System
York
Water, Electricity (8.8 kWh)
$3400
3-compartment sink (2)
FSW
Water
$1,075.18
Dishwasher (1)
A City Discount
Water, Electricity
(0.06 kWh)
$3,558.00
Hand sink (3)
FSW
Water
$4,695.00
Cookware (2 sets)
Williams-Sonoma
N/A
$1,799.90
Organic Soil (150 cubic ft)
Kellogg's Soil
Water, Sunlight
$450
*all kWh values are for 1 hour of use unless otherwise stated
IF the solar electricity does not account for all of the needed power during the busy season,
it is expected to pay about $0.30 per kWh for electricity.
Figure 4: Organizational Chart
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Luna Tierra
Staff Position
Number of staff
required per shift
Days scheduled
Hours scheduled
*open daily SundaySaturday
*open 2 pm – 2 am daily
*2 additional
hostesses, servers,
expos, and bussers
will be on call FriSun
*all 6 hour shifts include
required 30 minute
break
*all 8 hour shifts include
required 30 minute
break and two 15 minute
breaks
General Manager
1
Sun-Sat
12 pm – 8 pm
Financial/PR
Manager
1
Sun-Sat
2 pm – 10 pm
BOH Manager
1
Sun-Sat
10 am – 6 pm
Head Chef
1
Wed-Sun
12 pm – 10 pm
Onsite RD
1
Mon-Fri
1 pm – 6 pm
Organic Gardener
1
Mon-Thur
6 am – 12 pm
Sous Chefs (shift 1)
2
Sun-Sat
12 pm – 8 pm
Sous chefs (shift 2)
3
Sun-Sat
8 pm – 4 am
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Luna Tierra
Line cooks (shift 1)
4
Sun-Sat
12 pm – 8 pm
Line Cooks (shift 2)
5
Sun-Sat
8 pm – 4 am
Bartenders (shift 1)
2
Sun-Sat
2 pm – 8 pm
Bartenders (shift 2)
3
Sun-Sat
8 pm – 2 am
Hostesses (shift 1)
2
Sun-Sat
1 pm – 8 pm
Hostesses (shift 2)
3
Sun-Sat
8 pm – 3 am
Servers
5
Sun-Sat
2 pm – 8 pm
Servers
5
Sun-Sat
8 pm – 2 am
Expo
2
Sun-Sat
2 pm – 8 pm
Expo
2
Sun-Sat
8 pm – 2 am
Bussers
4
Sun-Sat
2 pm – 8 pm
Bussers
4
Sun-Sat
8 pm – 3 am
Dishwashers
2
Sun-Sat
2 pm – 9 pm
Dishwashers
2
Sun-Sat
8 pm – 3 am
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Luna Tierra
Health Repercussions & Analysis
Luna Tierra is a leader in health and sustainability. Serving mainly plant-based meals, the
menu is not only targeting vegetarians but also cognitive vegetarians, organic consumers and
locavores. Cognitive vegetarians are consumers that do not consider themselves fully vegetarian
or semi-vegetarian, but hold similar principles of vegetarianism. For example, they limit their
consumption of red meat as often as possible. Meat is considered a high-status food in Western
culture, but the health benefits of a lesser consumption are of significance (Lea).
The typical Western diet is high in meats and low in fruits, vegetables and whole grains.
This type of diet increases the risk for chronic diseases including heart disease, cancers, stroke
and diabetes; four of the leading causes of death in America (Walker). Luna Tierra aims to
provide herbivores and omnivores alike with plant based foods that will bring forth vitality to the
individual customers and community. A plant-based diet can help with disease prevention due to
the numerous amounts of antioxidants, phytochemicals, fiber, prebiotics, etc, found naturally in
fruits, vegetables, and whole grains. By reducing meat, dairy, and egg intake, the body
consumes less dietary cholesterol and saturated fats, both of which are associated with disease at
high levels.
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Luna Tierra
A common misconception often associated with plant-based diets is that they lead to
inadequate intake of important macronutrients and micronutrients. Each meal prepared at Luna
Tierra is done through a holistic approach that focuses on food synergy in order to achieve
optimal health benefits. Not only will the menu revolve around plant foods high in essential
nutrients, it will also incorporate a wide array of culinary herbs, which provide additional health
benefits as well. The most commonly used flavorant in the Western diet is salt. Research has
linked high sodium consumption with numerous health complications, such as stroke and high
blood pressure. However, healthier alternatives such as herbs can be used in place of salt,
without hampering the quality of taste. Herbs can also be used as coloring agents and medicinal
aids for specific physical ailments such as gastrointestinal distress, weakness, and anxiety
(Craig). That being said, Luna Tierra has a wide variety of culinary herbs in growing on site
ready to be utilized.
Not only is a plant-based diet beneficial to individual health, it can also have a positive
impact on the global community. Meat has become associated with affluence, and as a result
consumption is on the rise. While consumption of animal products can provide certain benefits
and decrease prevalence of malnutrition, over-consumption can lead to costly negatives. If highconsumption societies were to reduce animal product consumption by 30%, the benefits on
health and the environment would be dramatic (Friel).
The environmental toll of animal production related to human consumption is very high
and can be attributed to many factors. Livestock production puts a strain on limited resources.
High production of grain (as much as 60%) must be grown to supply animal feed, which in turn
displaces grain that could have been directly consumed by humans. This increase in grain
production also perpetuates external costs on the environment, workers and consumers. For
example, monocropping leads to a loss in biodiversity. Industrial agriculture of livestock grain
production has many externalities. These include not only the loss of biodiversity, but also the
depletion of other resources such as fossil fuels and water. Contaminated runoff, soil destruction
from pesticides and fertilizers, and fuel combustion related to production vehicles all pollute the
atmosphere at a global level. (Walker).
In addition to the many high inputs required for grain production, concentrated animal
feeding operations (CAFOs) have an even higher input (and output) when it comes to
environmental impact. CAFOs have trouble disposing of the high amounts of animal waste
(manure and bi-products) produced. This increases the risk for waste to enter water systems, the
air in the form of methane gas, or in nearby soil in nutrient levels higher than the soil is able to
retain (Walker).
In an effort to be good stewards of the Earth, Luna Tierra implores the average consumer
to evaluate the environmental impact of their average meal, from production to consumption.
With more than 9 billion livestock being maintained each year to provide animal protein to the
human population (Pimentel) and the high grain and resource input that goes into the meat and
dairy industry, a plant-based lifestyle is the solution to feed the growing population while
preserving the Earth. Offering an alternative, high-status meal focused on sustainability and
health is what Luna Tierra brings to this community.
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Luna Tierra
The foundation of each restaurant will be Platinum LEED certified. Food and garden
waste, when not used on-site as compost, will be shipped to a local commercial composting
facility. Operations will be run using solar and water power with a large open space for roof and
patio dining. A greywater recycling system will also be designed in order to cut the large amount
of wasted water that is often associated with commercial restaurants. The lighting be as natural
as possible, with large glass windows in the dining area and soft indirect lighting focusing on
LEDs. Transportation costs and fuel emissions will also be very low due to local procurement.
The drinks and cuisine will be sustainably and ethically sourced and the atmosphere will be
shaped by those wishing to set the trends for a better tomorrow.
The Market
Market Size and Trends
Industry and Market Size
Comparing Luna Tierra and what makes us special with other markets and industries, we
researched IBIS World. It referenced how juice bars will keep expanding their operations to stay
competitive with the market. It noted that there are over are over 34,996 employees with 1,419
businesses in the smoothie and juice industry. They also gave evidence that the annual growth
between 2009 and 2014 grew about 2.3% in this industry. Another source called Juice Solutions
stated that in 2002 smoothie sells increased 139% and that they should rise 68% more in 2010.
Further data showed that in 2007 the smoothie market reached 9.8 billion in revenue. With all of
this information Juice Solutions declared that consumers are focusing on changing their lifestyles
by consuming smoothies and healthy foods. A third source, the Bev industry acknowledges in
many articles how the new fad is health drinks and how clientele are starting to purchase more
healthy drinks and include juicing into their lifestyles. They refer Mama Chia as being an
increasingly sold health drink that people are attracted to as it sources antioxidants that are good
for our health. In another article the New York Times talks about a juice company that wants to
promote juicing at more meals instead of as just a cleanse. This is more healthful and will
enforce more of a lifestyle change than just a once in awhile cleanse. With the juice market size
increasing, Luna Tierra will also advocate the juice lifestyle and incorporate it in our business.
Industry Market Trends
The main trend over the past few years has been catering to health conscious consumer
cravings. According to the National Restaurant Association, restaurant guests demand more
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Luna Tierra
options that are healthy. In turn, this association is working effectively to respond to the
consumers interests. One big trend is to include nutrition information for menu items at
restaurants so that customers can be more aware of their health choices. Another common trend
being seen is the demand for more nutritious menu items. The National Restaurant Association
indicates that their research has helped restaurant owners stay ahead of the nutrition trend curve.
In turn, this leads to healthier businesses which, ultimately, are what the consumers are currently
demanding. In recent research, the Culinary Visions Panel found that restaurant consumers not
only want great food with high value and service, but they also prefer establishments that treat
their employees well and support their local community. The Culinary Visions Panel collected
data from 1,200 consumers that concentrated on the impacts of their decisions on why they dine
out. It was found that 83% of customers favor restaurants known for treating their employees
well. Also, 73% said that they preferred restaurants that supported their local community or a
cause they believed in. In the portion of this study including top menu choices among
consumers, it was found that 52% of customers expect fresh food and that 48% expect healthier
food. Based on these examples, it is evident that healthy eating is now a wave of the future that is
being emphasized and will eventually be the norm.
Target Market
In terms of size, Luna Tierra is in an amazing location in Hillcrest. Neighboring North
Park and Mission Hills, Luna Tierra is in a prime location for exposure to a huge population.
Luna Tierra’s target market is young to middle aged vibrant people looking for an atmosphere
that is relaxing yet entertaining, that will provide them with unforgettable nights with friends. In
particular, the demographic that we hope to attract are single males and females as well as young
couples that want to have a great experience. Our restaurant and bar will be a hit as we will
constantly be catering to this demographic to ensure that we are with the latest trends as well as
the hippest foods.
Figure 5: Target Population
Area
Total
Population
Male
Population
Female
Population
Marital
Status- Single
Marital
StatusMarried
Hillcrest
31,792
16,521
15,271
12,799
6,437
North Park
80,272
40,896
39,380
29,639
14,515
Mission Hills
55,540
29,197
26,344
11,814
17,604
Industry and Market of Competing Organizations
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Luna Tierra
It is important to acknowledge the industry and market of competing organizations
around Luna Tierra. With research we found a website that specifically focuses on bars in
Hillcrest. This website lists all the best bars in the area which would be Luna Tierra’s
competition. Through research we discovered that all of the bars have spectacular advertising
including great social media. On the website the author talks about all the must haves of the
menus and etc. This website helps them in the bar industry as being listed on this website is great
credibility to customers in the area looking for a Hillcrest bar. People constantly look towards the
internet for guidance to help make decisions on where to go. This website makes it easy for
owners to get their name out in the market. Knowing how influential this website was towards
us, we knew how much Luna Tierra would have to focus on the elements reviewed on this
website.
Competitive Analysis
Figure 6: SWOT Analysis
Luna Terra
Jimmy Wongs
Local Habit
Strengths
●
●
●
●
●
Healthy food Options
Seasonal Foods
Trendy
Fostering relationships
Strong management
which a united front
● Community presence
● Late night quality
food
● Authentic Asian
cuisine
● Strong dependent
customer base
● Fresh ingredients
● Farm Fresh from
local farmers
● Craft beers
● Grass fed meats
● Community
presence
Weaknesses
● Less meat options
● Limited hours, open in
evening only
● Lacks informative
social media
● Limited hours
● Absence of events
or promotions
● Kitchen closes at
10pm
● Limited night
hours
Opportunities
● Kitchen open until close ● Late night Thai
● Facebook ordering
food
● Events and promotions ● Relaxing
geared toward our
environment
demographic
● Fun twist on healthy
eating
● Exposing customers to
freshly squeezed juices
● Events and
promotions
● 6 course beer
pairing menu
● Cater to a range of
different
populations
● Gluten free and
vegan options
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Luna Tierra
Threats
● Less meat options
● Open similar hours ● Luna Tierra has an
● Customer comfortability
as Luna Tierra
open kitchen until
with other restaurants
close
Competitive Advantage
Luna Tierra has a competitive advantage over Jimmy Wong’s and Local Habit because
Luna Tierra is offering a late night healthy food option until close and does not close their
kitchen early. Also Luna Tierra really emphasizes on the fact that their food is fresh, seasonal,
and either grown by local farmers or the restaurant’s own gardens. Even though Jimmy Wong’s
has a late night kitchen as well, Luna Tierra is offering more healthy options as well as a variety
of world fusion cuisines. Compared to Local Habit, Luna Tierra is creating a fun environment
focusing on fostering relationships by doing different themes each day grasping the trending
market.
Marketing Strategy
Description on Web
Luna Tierra is a world fusion restaurant also featuring a juice and cocktail bar. We carry
fresh ingredients to provide you with delicious plant-based meals that will keep you coming back
for more. We even have professionals including a certified Natural Chef and a Registered
Dietitian to aim at all your needs. The juice and cocktail bar provides hand-pressed juices in
addition to artisan cocktails, craft beers, and organic wines. Putting a new spin on the average
night-life scene, Luna Tierra will keep the kitchen open until close to provide the perfect pairing
with any drink and to help foster connections. Not only are the food and drinks worldly, the
entertainment is lively as well, and focuses on cultural diversity in an open and relaxed
environment.
Community Presence
Luna Tierra values the Hillcrest community and wants to offer a safe haven of culturally
collaborative drinks and cuisine that will be served with complete transparency. We want to
make the community inclusive in the diverse atmosphere that Luna Tierra offers along with the
focus on fostering connections. We take pride in the fresh and wholesomeness of our food,
procured through sound cultivation with an emphasis on community building. Luna Tierra
partners with local farms to ensure that we have the freshest ingredients to offer to our
customers. We also grow our own produce and take to heart the farm to table motto. To make an
even bigger contribution to the Hillcrest community Luna Tierra wants to branch out to local
elementary schools and start a program called Field Trip Friday’s. The elementary schools would
be invited to come and not only learn about a local business but get exposed to the garden that
Luna Tierra prides itself on. They can learn about how to garden and the different techniques, as
well as which vegetables and fruits grow in which season, the concept of a farm to table
restaurant, and much more, Luna Tierra prides itself on healthy eating, so what a better way but
to influence the youth of its own community.
Social Media
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Luna Tierra
Social Media is an essential part of Luna Tierra’s success. There are several factors that
contribute to making Luna Tierra’s presence huge in the San Diego area. The first area is which
we excel at is our Facebook. We have a fan page that the community can follow and like.
Through this page our friends can see updates of all our daily events as well as look at our past
events to see all the ins and outs of our business. Other aspects of our Facebook will include
pictures of our events and food, the menu, reviews, online ordering, and links to all of our other
social media sites.
Our second social media tool is our Instagram. Our instagram is updated daily by posting
at least two to three times a day. Through our Instagram we post pictures of our upcoming
events, special themed nights, drink and food specials, as well as pictures of our customers from
our actual events. Our hashtag on Instagram that we encourage our friends to use is #LunaTierra.
By using the same hashtag it promotes our business and gets our name out there whenever we
post.
Our third social media site that we use to promote ourselves is Twitter. Twitter is a fast
way for Luna Tierra to constantly and continuously be updating our family, friends, and
customers on our events. Every time we tweet we include our hashtag to get the continuous
support of our followers. Some examples of events that we would tweet about are, live bands that
are playing that night, a drink special only happening on a particular day, and our happy hour
specials.
Our last social media tool is Yelp. Yelp is a great way for our business not only to gain
morale from great postings about Luna Tierra but also learn from the negatives being stated. You
cannot please everyone but Yelp is a great way in which we can gain feedback and learn from
our mistakes and improve ourselves and make necessary changes to our business to make sure
we make all of our customers happy in the future. We emphasize that our business is about
fostering connections therefore we take our Yelp postings very serious as we strive to make our
customers our main concern.
Through our social media sites we will do a lot of promotional marketing. We want to
offer trendy fun events that will grasp the attention of our demographic to stay competitive
amongst other local eateries. Every day of the week we will have a fun and trendy event or
special. For example on Sunday we will promote Sunday Funday which will include a mimosa
brunch. On Monday we will promote Mojito Mondays. On Tuesday we will advertise Veggie
Taco Tuesday as well as promote Trivia Tuesday. On Wednesday Luna Tierra will publicize
pitcher specials on our organic beers as well boost our fun game nights that will include cornhole
and life-size Jenga. Thursday night we will advertise karaoke Thursdays and will emphasize on
our friends and families letting loose. On Friday Luna Tierra will promote the community by
having local band nights. Last but not least we will have Juice Your Saturdays in which there
will be specials on all of our juices and alcohol juice drinks. Luna Tierra believes that sticking
with and setting trends is very important to our business’s success and with these promotional
nights we trust that we can grow and become very successful. Overall through the use of social
media we hope that we are able to publicize our name in order to reach the community. We hope
to shine in a positive light that will take our business increasingly upwards and in the future able
to expand and change.
Emerging Social Media Trends
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Luna Tierra
One of our emerging technologies that we promote through our social media is Facebook
ordering. On our Facebook page there will be a tab that customers will be able to click that will
allow them to place an order through Facebook. This is a cool new innovative way to gear our
customers towards Facebook to not only check out our events, pictures, and overall company,
but to offer them the ability to order from home for take out orders or speed up the process of
their dining experience. Another cool innovative element about Luna Tierra is that all of our
produce is sourced hyper locally from the expansive culinary garden, the patio herb garden, and
summer rooftop garden, all which are located on site. Overall all of these factors contribute to
Luna Tierra’s innovative marketing strategy that will make our business extremely successful.
Goals, Risks & Strategies
Short Term Goals
Luna Tierra aims to provide the best service possible contributing to our unique
atmosphere. Our first goal we hope to achieve is to have a set schedule and enough staff to allow
for proper business function while providing and ensuring they have the proper training and
certifications. Staff qualifications and their availability provide possible barriers that may offset
achievement of this short term goal. To mitigate any possibility of these outcomes, management
at Luna Tierra plans to hire highly trained food service staff by running detailed background
checks. We will provide round-of-the-house training during off-season months as to make sure
all staff is fully accountable and knowledgeable of the processes necessary in maintaining our
original business.
A second short term goal we aim to achieve is to implement two large marketing and or
social media campaigns to spread awareness and increase growth/revenue. Competing with
Jimmy Wongs and the Local Habit will be difficult since they have established their strategies.
By hiring a marketing specialist and utilizing the local resources management has built over their
years located in San Diego, Luna Tierra will capture our target market population with
innovative events and campaign methods.
The last short term goal for Luna Tierra to a competitive advantage on the local
companies like Jimmy Wongs within the first year of opening. It is a very bold goal for an up
and coming company but with our size, atmosphere and audience, it is very possible. Some
barriers that we will encounter are obtaining the right customers and clientele in order to allow us
to expand. In order to find the right connections to help up market and increase awareness for our
company we are going to have our staff and customers contact the individuals they know to
assist our company in spreading. Dealing with the competition will also be very tough
considering they have been around much longer but we intend to be as involved with the
community as possible so the people of southern california know who we are and what our goals
are as a company. Examples of getting involved with the community are sponsoring local sports
teams, organizations, schools and even attending farmers markets.
Long Term Goals
Luna Tierra has big plans for the future. Our long term goals include opening two more
locations and obtaining a brand name for our products to distribute in local stores within the next
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Luna Tierra
ten years and cultivating and growing 80% of the plant sourced menu items by our third year in
business.
We know opening two locations in ten years seems ambitious, but we have already
analyzed any potential barriers we may encounter, and have proposed mitigation strategies to
overcome them. The venue we found in Hillcrest was perfect for our needs and we were very
lucky to find it. However, it may prove difficult finding a beautiful venue with a lot next door,
with enough space to build a parking structure and a greenhouse in. However, if after trying we
are unable to find a venue for sale that meets Luna Tierra’s high maintenance needs, the owners
are willing to find a venue not for sale that meets our needs, and pull from their trust funds in
order to buy the current owners out. Another problem a secondary Luna Tierra locations might
face is a shortage of skilled workers. Luna Tierra is devised of a team of carefully chosen highly
skilled workers, who each contribute their own wisdom and skill set. Finding this team was no
easy task, and finding a second one would be impossible. However, we can choose the best team
available, and then train them to follow procedure exactly the way the original Luna Tierra does.
This solves any short term problems we may have opening additional Luna Tierra locations, but
there are still some long term barriers we may face. The economy is unpredictable, especially as
of recently. Restaurants are always the first to be effected in a recession, and Luna Tierra is at an
even greater risk, being a higher end restaurant. If the economy crashes and Luna Tierra starts to
lose business, we will have to adapt. The secondary locations can serve more casual meals, as
opposed to our finely crafted dishes that we serve now. The current climate crisis has put a big
emphasis on sustainability. Because of this, the government is offering large subsidies for
alternative energy sources. 30% of the expenses from the solar panel installation was subsidized
by the government. This will not last for long though, and we may have to deal with larger costs
when opening secondary Luna Tierras. If this is the case, the owners will just have to pull from
their trust again.
Another long term goal we have for Luna Tierra is to have our products on the shelves of
local stores in San Diego with our brand name on them. This is a very tough and large goal but it
is very possible for a company that will be growing as fast as ours. Some potential barriers in
finding a brand for our produce and following the packaging requirements and making sure we
can constantly provide, deliver and grow the products we intend to distribute. Mitigations for
these sound simple but are in fact very tedious and time consuming for a business as big as Luna
Tierra. We will make sure that our management team learns the local standards and ensures our
packaging includes any necessary regulatory information. In order to grow the amount of
produce that we need, its extremely important that our greenhouses are fully functioning and our
staff has the ability to manage and grow the seasonal produce in bulk amounts if necessary.
Focusing on limiting carbon emissions with the transportation of foods, one of Luna
Tierra’s long term goals is to be able to cultivate and grow 80% of the plant-sourced menu items
on the premise by the end of our third year in business. In order to achieve this goal, Luna Tierra
would have to overcome some short term barriers. As a new company, Luna Tierra does not have
the resources or the skill set to farm so much food on our own. In order to overcome this barrier,
Luna Tierra will have an organic farm manager onsite to provide the knowledge and human
resources necessary to maintain a flow of fresh produce from the greenhouse. Another issue
Luna Tierra faces growing 80% of the plant sourced menu items, is not all plants grow year
round. A solution for this is changing Luna Tierra’s menu frequently, to allow for seasonal menu
items and the freshest home grown produce. In addition to short-term barriers, Luna Tierra also
faces long term problems in cultivating 80% of the plant sourced menu. Weather can often be
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Luna Tierra
unpredictable, making it hard to count solely on our garden for our menu items. To overcome
this barrier, Luna Tierra will purchase a state of the art greenhouse onsite to allow us to grow
produce year round without having to purchase mass amounts from outside sources.
Additionally, the current policy on urban farming allows Luna Tierra to grow and serve its
produce to customers. However, there are starting to be more and more regulations for urban
farming, and if policy were to change, Luna Tierra could be prevented from using its produce for
its dishes.
Figure 7: Goals Analysis
Goals
Potential Barriers
Mitigations
Intended Time
of Completion
Have a set schedule and
enough staff while
providing and ensuring
they have the proper
training and
certifications
Staff qualifications and
availability
Perform background
checks and training
during the off-seasons
No more than 1
year
Implement 2 large
marketing and or social
media campaigns
Competing with Jimmy
Wongs and the Local
Habit
Hiring a marketing
1 year
specialist and utilizing
local resources
Obtaining a competitive
advantage against
Jimmy Wongs and other
competitors
Dealing with local
competition and
contacting the right
people to allow for
diversification
Using clientele and
1 year
employees to find
partners and becoming
more involved in the
community
Open 2 more locations
Finding the proper
location and required
amount of skilled
workers
Intermixing trained
staff among locations
and buying out a
previously built
establishment
10 years
Grow 80% of plant
sourced items
Obtaining the proper
resources and staff to
operate the crops and
adjusting to seasonal
produce changes
Hire an organic farm
manager on site and
change the menu
seasonally in relation
to the available
produce
3 years
Have a brand name for
our produce in order to
put them into local
Understanding
packaging and
transportation
Educate staff on
regulations and
procedures to both
10 years
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Luna Tierra
stores
requirements and
growing the required
amount of produce to
distribute
export and grow
produce correctly
Financial Assumptions
The three founders, Kat Hunter, Angela Mariscal and Michelle Morrisey all come from
extremely wealthy families. Rather than going through the hassle of investors and loans, they’ve
all agreed to invest in themselves and contribute $2.5million dollars to start up Luna Tierra. Start
up costs of $7,190,366.76 leave Luna Tierra with about $310,000 liquid cash available.
Figure 8: Startup Costs
Item
Unit Price
Quantity
Total
Venue
$7,000,000
$7,000,000
Solar panels
$84,000
$84,000
Greenhouse
$6995
1
$6995
3 compartment sink
$537.59
2
$1075.18
Dishwasher
$3558
2
$7116
Grill
$8,043.65
2
$16,087.30
Oven
$7147.25
3
$21,441.75
Walk in Refrigerator
$4337.99
1
$4337.99
Walk in Freezer
$5157.99
1
$5157.99
Liquor License
$40,000
Soil
$5.99
20
$119.80
Juicer
$149.95
3
$449.85
Blender
$119
2
$238
Ice machine
$1,568
1
$1,568
Commercial
cookware set
$889.95
2
$1,779.90
$40,000
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Luna Tierra
$7,190,366.76
Total startup costs
While weekdays for restaurants tend to be slow, we expect Luna Tierra to really pick up
on the weekends, especially the bar. An average dining experience at Luna Tierra costs roughly
$25 and we expect guests coming in for drinks will spend roughly $35. After estimating how
many guests will be joining us each night, we were able to predict a weekly profit of $53,750.
Figure 9: Weekly Profits
Customers for
Dinner ($25)
Customers for
Drinks ($35)
Projected Daily
Sales
Monday
150
100
$7,250
Tuesday
150
120
$7,950
Wednesday
150
100
$7,250
Thursday
200
150
$10,250
Friday
250
200
$13,250
Saturday
250
200
$13,250
Sunday
200
80
$7,800
Total profit for the
week
$53,750
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Luna Tierra
References
Executive Summary:
"Uptown Pernicano's." - Property. Web. 1 Nov. 2014.
<http://www.landandfarm.com/property/Uptown_Pernicano_s-1616049/>.
Company Description:
http://www.foodservicewarehouse.com.
www.solar-estimate.org
http://www.williams-sonoma.com.
http://www.acitydiscount.com
http://www.lowes.com
http://www.york.com
http://www.webstaurantstore.com
http://www.missionrs.com
http://rewater.com
https://www.gothicarchgreenhouses.com
Health Repercussions and Analysis:
Craig, Winston J. “Health-promoting properties of common herbs.” The American Journal of
Clinical Nutrition: American Society for Clinical Nutrition (1999) pg 491S-499S. Web. 3
November 2014.
Friel, Sharon, Dangour, Alan D., Garnett, Tara, Lock, Karen, Chalabi, Zaid, Roberts, Ian, Butler,
Ainslie, Butler, Colin D., Waage, Jeff, McMichael, Anthony J., and Haines, Andy.
“Public health benefits of strategies to reduce greenhouse-gas emissions: food and
agriculture.” Health and Climate Change 4: Vol 374 (2009) pg 2016-2025. Web.
Lea, E., Crawford, D., and Worsely, A. “Public Views of the benefits and barriers to the
consumption of a plant-based diet.” European Journal of Clinical Nutrition: Nature
Publishing Group (2006) pg 828-837. Web.
Pimentel, David and Pimentel, Marcia. “Sustainability of meat-based and plant-based diets and
the environment.” American Journal of Clinical Nutrition: American Society for Clinical
Nutrition (2003) pg 660S-663S. Web.
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Luna Tierra
Walker, Polly, Rhubart-Berg, Pamela, McKenzie, Shawn, Kelling, Kristen, and Lawrence,
Robert S. “Public health implications of meat production and consumption.” Public
Health Nutrition 8(4): Johns Hopkins Bloomberg School of Public Health (2005) pg
348-356. Web
Marketing Strategy:
http://www.ibisworld.com/industry/juice-smoothie-bars.html
http://www.juicesolutions.com/index-4.html
http://www.bevindustry.com/
http://www.nytimes.com/2013/04/17/dining/the-rush-toward-cold-pressedjuices.html?pagewanted=all&_r=0
http://www.hillcrestbars.com/
http://www.restaurant.org/Industry-Impact/Food-Healthy-Living/Trending-Healthy
http://www.fastcasual.com/news/study-restaurant-customers-want-conscious-convenient-brands/
http://www.forbes.com/sites/caroltice/2012/12/07/how-restaurants-are-using-technology-todeliver-better-customer-service/
http://www.point2homes.com/US/Neighborhood/CA/San-Diego-County/San-Diego/HillcrestDemographics.html
http://www.point2homes.com/US/Neighborhood/CA/San-Diego-County/San-Diego/North-ParkDemographics.html
http://www.point2homes.com/US/Neighborhood/CA/Santa-Barbara-County/Mission-HillsDemographics.html
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