Amor
12/10/13
Amor
Love for food and body
Company Background
Business Description:
The name of our business is Amor. We are a restaurant and we
chose a partnership consisting of the four of us, a CEO; Emilie Ibsen,
A CFO; Louise Søndergaard, a chief of marking; Andreea Mercurean
and a secretary; Maya Gravesen. We have a concept of health, and
we sell healthful, natural smoothies only consisting of fresh fruit,
juice and milk. We also sell healthy sandwiches and you can either
choose to buy a finished salad or you can choose to mix a salad of
your own in our salad bar. One unit is either a salad, sandwich or a
smoothie. People can eat their food in our restaurant or buy it as
take out.
Business Model:
We sell healthful smoothies, sandwiches and you can either choose
to buy a finished salad or you can choose to mix a salad of your own
in our salad bar. One unit is a salad, sandwich or a smoothie. We will
buy the ingredients from Costco, and make the food of front of our
costumers and in that way we will seem more trust worthy and they
will know that we are making the food by our self.
Mission Statement:
We are different because we are the only place in the valley, which
focus on the health of the body. We want to set focus on what is a
healthy lifestyle, and make people care about it, by giving people an
alternative instead of Burger King and McDonald’s. We want people
leave Amor with a smile, a clear conscience and the desire of coming
back. Of course our goal is also to earn a lot of money.
Contact Information
[Maya Gravesen]
[805 350 3145]
[Amor@gmail.com]
[AMOW]
[Business address]
[Solvang, California]
[93463]
Year Founded
[2013]
_____________
Investment Opportunity
$ 13521,9
Annual Operating Costs*
$ 27279
Annual Sales*
Units 576000
Annual Profit*
$ 55769.55
Return on Sales*
22.75%
Return on Investment*
1.8%
Breakeven Units/Month*
1.066
*Projected
Market Opportunity
Opportunity:
We would like to cooperate with Dine’n’Dash in the future. Another
opportunity is to expand our menu, and expand our business in general.
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Amor
12/10/13
Target Market:
We target men and women in the ages of 15-50 years. We target all
kinds of races because of the tourisms in Solvang, and because of
our relative high prices, we target the middle and upper class. The
reason of the high price is that it is not cheap to buy healthy and
good food.
Industry Overview:
The restaurant industry has $660.5 billion sales. There are 980,000
restaurants in the US. On a typical day, there are $1.8 billion sales.
There is 13.1 million employees in the restaurant-industry, and the
percentage of eating and drinking places with fewer than 50 employees is 93 %.
It has become a trend to eat healthy and care about the inside of
your body, and since it is already a trend to look good at trained, it
will be less difficult to sell our food.
Market Research:
We spoke to Dine’n’Dash and it would help their business to cooperate with us, because their costumers have more options when they
order food, and it would help us to provide an even better service
for costumers who want the food brought to their houses. Depending on how well our business is doing, we will expand the menu, and
expand the business in general.
Leadership
Qualifications:
All of us have personal interest in health and food. Three of us have
had a job, which had directly contact with costumers and the service
you provide in a store. One of us has been working with people and
have experience with service.
We all love food and the good feeling you get by eating a healthy
meal, and therefore we have background knowledge about how to eat
healthy, and how to make a delicious smoothie, sandwich and salad.
We are taking a business education, so we will be able to open a business, handling the finance etc.
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Amor
12/10/13
Amor
Business Plan
[Insert tagline]
Instructions:
 Revise the text highlighted in yellow for your own business.
1.
1.1
OPPORTUNITY RECOGNITION & BUSINESS STRUCTURE
Business Opportunity
We would like to start up a restaurant, which we will call Amor. Our goal is to
serve healthy food, and make people aware of a healthy lifestyle. We will show
people that healthy and delicious can have a connection, and since food is a
need, it is important to consume the best food for your body and your health.
A restaurant is a good business opportunity because every 4th American eats out
every single day.
The Americans are starting to eat healthy and care more about their bodies and
health in general. This is one of the reasons for our business idea. The BBC is
reporting: ‘’50 % of shoppers indicated that they read nutrition labels “most of the
time” or “always.”
81 % of shoppers report that they “usually” or “sometimes” select and consume
healthier foods.
“Whole grain/wheat” was the most important food claim respondents considered
when purchasing a product.’’
There is no place in the valley where you can get a quick and healthy meal. This
is a priority for sports people, people who want to lose weight or just want a
healthy lifestyle. The valley needs a healthy place to go, for the busy Americans
who haven’t time to make a home cooked meal during their daily lives, and they
need a place to go at get quick and healthy food.
Also, no one else in the valley sells natural smoothies made of fresh fruit.
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We will encourage them to choose a healthy meal from Amor, instead of buying
fast and processed food.
The US has started to care more about health and calories, and since there is no
place in the valley which focuses on health and what is good for your body, we
will make people aware of it. People who want to be healthy, sports people or
people who want to lose weight, but can’t find a place in the valley where they
can get fast but healthy food will now have a place to go. We also support the
upcoming health trend, and we will boost up the trend in the valley, especially for
kids. We will also cover the smoothie place.
1.2
Type of Business
We are a service business, because we are offering an intangible product, by
cooking a meal, and offer a table service, by letting them eat at a nice table. Our
primary source of income is by providing a cooking service; our type of business
will be a service business.
1.3
Type of Business Ownership
We selected Partnership, since we are 4 people starting up the business. Only
one person cannot control a restaurant, so the partnership would be the best for
us and for the business. There are too many tasks during the day, not only one
person can have the overview, we will be able to split up the different tasks, and
we would not have to hire employees in the beginning. We want to share the
profit equally and we all want to be part of the decisions that are made
1.4
Mission Statement
We want to make people aware of what is healthy for your body. We want to be the best, provide the best service and let people leave Amor with a smile and the desire of coming back.
1.5
Social Responsibility
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We are recycling all of our stuff, and our trash will have to be sorted in different
trashcans, so we try to help the environment.
We are using recyclable plastic cups for the smoothies and plastic boxes for
takeaway.
All the leftovers that we have will we donate to homeless people, so we will try
and help people who have a hard time, by giving them food.
1.6
Qualifications
Our personal qualifications are that we all have personal interest and experience within
the different services/ products we provide.
A strength is that we have knowledge about healthy food (how you eat healthy and what
you eat), smoothies, salads, and delicious sandwiches. We are studying business so we
know how to market our restaurant. Some of us also have experience with sales.
We would need to be able to make delicious and appealing food, be very service
minded and good at communication, so that our costumers will leave Amor with a
smile and the desire to come back. We need to be good at handling our financial
plan to make a big profit, and market our values and concept in the right way, so
that consumers know what they will get by spending their money in our restaurant.
2.
2.1
MARKET RESEARCH
Market Research
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We are in the restaurant industry. We belong to this industry because it is a
restaurant we are starting up. It has become a trend to eat healthy, which is
a huge benefit for us.
Restaurant industry:
The restaurant industry has $660.5 billion sales. There are 980,000 restaurants in the US. On a typical day, there are $1.8 billion sales. There are
13.1 million employees in the restaurant-industry, and the percentage of
eating and drinking places with fewer than 50 employees is 93 %.
It has become a trend to eat healthy and care about the inside of your
body, and since it is already a trend to look good and trained, it will be less
difficult to sell our food.
We target 7614 people in the whole Valley out of 14.491 people. We found
the information on the website firstresearch.com, by looking at the graph
of age and gender.
According to progressivegrocer.com, the American citizens is becoming healthier, ‘’Americans Want To Eat Healthier. Despite the prevalence of obesity in the
U.S., shoppers report a strong overall interest in their health and wellness, and a
strong desire to follow a lifestyle centered on healthy eating. 50 % of shoppers
indicated that they read nutrition labels “most of the time” or “always.”
81 % of shoppers report that they “usually” or “sometimes” select and consume
healthier foods.
“Whole grain/wheat” was the most important food claim respondents considered
when purchasing a product.
Women and U.S. Hispanic shoppers were most likely to go digital for healthy eating information and about 1/3 of shoppers in these groups said they have used
apps to help them learn to eat healthier.
66 % of shoppers defined health and wellness as “being physically fit and active.”
This data is a huge benefit to us, and support our business opportunity enormous.
2.2
Target Market
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Demographics:
We would like to target men and women in the ages of 15-50 years. We target all kinds
of races, because of the tourism in Solvang. Healthy and good food is not cheap, and according to the website called USAtoday.com, the Americans are getting more willing to
pay more for healthy food, which means that we can sell the food to a relatively high
price and target the middle class and the upper class. The lower class couldn’t afford it,
but the valley, and especially Solvang is wealthy, so we wouldn’t need to target the lower
class or the lower lower class, because they can’t afford to live here in the valley.
Also, everybody has an opinion leader, mostly a famous, good-looking person, and everybody wants to look skinny and good.
Geographics:
Our customers would primarily be the citizens of the Santa Ynez Valley, but also tourist
from all around the world. Our business is located in Solvang, which is in the middle of
the Valley, so it makes it easy for all of the people in the valley to drive to our restaurant.
Psychographics:
People in the valley are people who are living/want to live a healthy life, and people that
like to work out. People that want to be classier than MacDonald’s, Burger King etc. And
people who want to spend more money (than what they averagely spend) on healthy,
quality food.
The people in the valley between 15-50 years have different buying patterns. Some of
them are use to eat at places like Chomp, Burger King, Subway, which is primarily unhealthy fast/junk food. They are used to eat out approximately 2-3 times a week, and are
buying complements in form of a sandwich and a drink. The most popular method to buy
food, is by going through the drive-through or taking it home, and we will provide the
service of takeout food.
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2.3
Competitors
Chomp is one of the biggest competitions because besides selling burgers and
fries, they also sell salads and some sandwiches. They also have a good reputation, and they are well known in The Valley, so therefore Chomp is a big competitor. Chomp is located across the street from our restaurant, which will create big
competition. Their prices for sandwiches are more expensive, but they also serve
fries when you order a sandwich ($11), where our prices for sandwiches are approximately $8. The food is of good quality, but contains a lot of oil and is considerably unhealthier than our food.
Another competitor is Subway, which is a food place as well, but the food is not
similar to ours, so if a person would want to eat healthily they wouldn’t have a
hard time choosing between Subway and our business. They are located about
100 meters down the street from us. Their food is categorized as unhealthy because of the white bread, lots of range and of complement in form of soda. They
also use salad but the other ingredients make it unhealthy. Their prices are
cheaper than ours. You get more for less.
There is a little smoothie place in Solvang close to us, but it’s not that big and it’s
not quality oriented, meaning that they don’t use only fresh fruit like us, which also is proven because it only costs four dollars. A lot of people don’t really know
them, because the place is so small.
El Rancho is a competition because they have a good salad bar as well. The
price depends on the weight of salad, and it is fairly expensive. They have a
good reputation and are pretty well known because they are the only grocery
store in Santa Ynez and it is close to the high school. It is in a different town than
Solvang, and it’s only a small drive from Solvang to Santa Ynez, so they might
still drive to El Rancho if they prefer El Rancho over us.
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Which indirect competitors fulfill the same want or need with a different business? Describe these competitors in detail.
There is no similar business like ours, but the closest competitors will be El
Chomp, because of the same opportunity with the salad bar.
2.4
Competitive Advantage
Quality
Our business
Fresh fruit for the
smoothie
Smoothie bar
Frozen fruit for the
smoothie.
Chomp
They don’t sell
smoothies at all.
Factor 2:
100 % healthy
Include sugar and
other unhealthy
product.
We are going to
provide the best
service possible,
and since we have
all the ingredients
ready, it won’t have
take long to make
the food.
They have nice employees, and the
serving is quick
Include food with fat
and sugar. (burger,
fries, milkshakes
etc.)
They have good
service, but they are
often busy and
make you wait a
long time for your
food.
Factor 1:
Healthiness
Factor 3:
Service
We have an advantage because we employ healthy/trained looking people, so that
people get the idea of health when they eat our food.
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We only sell healthy food, and are going to establish a healthy reputation so that people
will be sure that they eat healthy, when they choose us over the other places.
We have an APP, which cost money, but it will give you discount, and you are will be
able to order and pay trough the APP and see all of the menus.
The upcoming heath trend is also a huge advantage for us, and our intention is to boost
it so it will become an even bigger trend.
2.5
Business Growth
A trend would be that people start caring even more about healthiness and exercise, and ate out more often.
We talked to the YMCA in Santa Ynez, and are going to cooperate with them
from day 1.We do this because of the 66 % of the population, there are doing exercise, and since the YMCA is the most well known gym in the valley and , it
would benefit us because of the trust the costumers have to the YMCA. We will
have their fliers in our store, and advertise for them. People who are a member of
the YMCA will get 10 % off when they buy food from us, and we will serve samples of food at gatherings in the YMCA.
Within the first year we will market our restaurant further by making cooperation
with Dine’n’Dash, which is a delivery company. It will make it possible for our
costumers to have our food delivered to their front door, and it will also benefit
Dine’n’Dash, because their costumers would have more options when they buy
food on the website.
We are also planning to expand out menu within the second year, and depending
on how well it’s going for our business, we will expand out restaurant to other cities within the next 15-20 years.
2.6
Challenges
If fruit and vegetable prices increased, would we have to raise our price as well.
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If there is a big problem, for example if lettuce is proven to contain some sort of
bacteria, then the demand for salads will fall, and it will hurt our business. Also if
it became popular to eat a lot of junkfood.
Challenges by starting our business could be money issues, competition, demand for our products is too low, or if the service or food doesn’t match the expectations of the consumers. If we produce too slower than what is necessary.
We could take education/courses to learn more about sales, service etc, and
take a chef education. Being better at everything than our competitors would
simply defeat the competition.
3.
3.1
FINANCIAL INFORMATION & OPERATIONS
Definition of One Unit
One unit of sale would be a salad, a sandwich or a smoothie.
3.2
Production process
Description of Process Steps
1. Buy the food.
2. Prepare the food (washing, cutting).
3. Line the food up(so we are ready to make the units, and line up the salad bar.
4. Take an order and make the unit.
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5. Receive payment.
3.3
Variable Expenses
List all the variable expenses, materials and labor, related to your unit of sale.
Materials
Bulk
Quantity
Quantity
per Unit
$[128.2]
[50
[48]
pounds]
[30]
[50
[480]
pounds]
[16.26]
[32 oz]
[300]
[60] [1 gallon]
[500]
[95]
[1000]
[1000]
Total Material Costs per Unit
Material Description
Bulk Price
[Fruit]
[Ice]
[Vanilla]
[Honey]
[cups]
[0.0625]
[0.0542]
[0.12]
[0.095]
$[3.0017]
$[10]
Labor
Time (in hrs) to make one
unit
[0,1333] hours
Total Labor Costs per
Unit
$[1.333]
Material Costs
$[3.0017]
EOU
Labor Costs
$[1.333]
TOTAL EOU
$[4.3347]
Cost of Labor per Hour
3.4
Cost per
Unit
$[2,67]
Economics of One Unit
Selling Price per Unit
$[6]
Variable Expenses per Unit
Costs of Goods Sold
Materials
Labor
$[3.0017]
[1.333]
Total Cost of Goods Sold
$[4.3347]
Other Variable Expenses
Commission
Packaging
$[0]
[0.15]
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Other
Total Other Variable Expenses
$ [0.15]
Total Variable Expenses
$4.4847
Contribution Margin per Unit
$[1.5153]
5
3.5
Fixed Expenses for One Month
Expense Type
Insurance
Monthly Cost
$[42]
Explanation
[An insurance that covers General liability
insurance, Property insurance, Commercial
auto insurance, Workers compensation
Directors and officers insurance Data breach
coverage, Business umbrella policy]
Salary
Advertising
Interest
Depreciation
Utilities
Rent
Other Fixed Expenses
Total Fixed Expenses
$[0]
$[90]
$[37.5]
$[50]
$[0]
$[1400]
$[0]
[]
[Flyers to promote our business]
[with a loan on $15000 and a rent on 3% it will
be 450 dollars in rent the first year. We hope,
we will be able to pay it of the first of the second year when we have a net profit on
$48070.05]
[for the two blenders and the dish washer ]
[included in the rent]
[including water, electricity and heating ]
[We don’t have any]
$[1619.5]
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3.6
A
B
C
Income Statement for First Year of Operations
REVENUE
Gross Sales
Sales Returns
$[345,600]
selling price × units sold
selling price × units sold
selling price x units returned
$[345,600]
[0]
B–C
L
Net Sales
VARIABLE EXPENSES
Costs of Goods Sold
Materials
Labor
Total Cost of Goods Sold
Other Variable Expenses
Commission
Packaging
Other
Total Other Variable Expenses
Total Variable Expenses
G+L
$[261318]
M
CONTRIBUTION MARGIN
D–L
$84282]
D
E
F
G
H
I
J
K
N
O
P
Q
FIXED OPERATING EXPENSES
Insurance
Salaries
Advertising
Interest
R
Depreciation
S
Utilities
Rent
Other fixed expenses
Total Expenses
T
U
V
$[345,600]
cost of materials × units sold
cost of labor × units sold
$[172,897.92]
[76780.8]
$[252678]
E+F
cost of commission × units sold
cost of packaging × units sold
cost of other costs × units sold
$[0]
$[8640]
$[0]
$[8640]
H+I+J
cost of insurance × 12 months
cost of salaries × 12 months
cost of advertising × 12 months
cost of interest × 12 months
cost of depreciation × 12
months
cost of utilities × 12 months
cost of rent × 12 months
cost of other × 12 months
N+O+P+Q+R+S+T+U
14
$[500]
[9619.2]
[360]
[450]
[600]
[0]
[16800]
[0]
$[27729]
Amor
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PRE-TAX PROFIT
X
Taxes (15%)
W
Y
NET PROFIT
$[56553]
[8482.95]
M–V
W × 0.15
$[48070.05]
W–X
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3.7
Start-up Investment
What are your start-up expenditures? What are your cash reserves? Complete the table
below:
Item
[Chairs and tables]
[equitment]
[depositum]
[Serving equitment]
[kitchen]
[paint]
Why Needed
[For people to sit down
and have their meal, if
they want to eat it at
the restaurant]
[so we can make the
food]
[So we can rent the
location]
[So we can serve the
food in the best possible way]
[To have a place to
make the food.]
[So we are able to paint
the walls and make the
place look nice]
Vendor
[COSTCO]
Cost
$[4500]
[SEARS]
[1500]
[landlord]
[4500]
[COSTCO]
[400]
[IKEA]
[2462.9]
[]
[150]
Total Start-up Expenditures $[13512.9]
Emergency Fund (1/2 of startup expenditures)
[6756.45]
Reserve for Fixed Expenses (covers 3 months of fixed expenses)
[6819.75]
Total Start-up Investment $[27089.1]
How much of this start-up investment can you afford to pay yourself?
________$14285.7_____
How much of the start-up investment will you need to finance? (Total Start-up Investment- What you can afford to pay) _$15000_____________
3.8
Financial Ratios
Return on Sales (ROS):
Annual Net Profit
Total Annual Sales
$[48070.5
$[57600]
=
[0.8344549479]%
≈
$[0.8]
[1.774516318]%
≈
$[1.8]
Return on Investment (ROI):
Annual Net Profit
Total Startup Investment
$[48070.5]
$[27089.1]
16
=
Amor
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Breakeven Units (Monthly):
Fixed Monthly Expenses
Contribution Margin
4.
4.1
$[1619.5]
$[1.52]
=
[1065.46]
≈
[1066]
units
MARKETING & SALES
Marketing Plan
Our target customers are health oriented and primarily fit men and women between 1550. We will use the employees at the YMCA to market our food and concept, since the
costumers of the YMCA, are most likely to be interested in being fit and healthy.
At events we will serve free samples, and in that way hopefully win over the costumers
who haven’t tried our food yet.
We will hand out flyers, and by showing up with a flyer gives them 10 %, which is a
The world is getting more technologic and people are using APPs all the time. This is the
reason why we chose to make an APP. Our APP is costing money, but you will get 10 %
off every order. It is possible to read about us, see the menus, news about ex limited editions on smoothies or new menus, sandwiches, smoothies or salads. You can also order
via the APP, and we will tell you when your food is done, and you can choose if you
want to eat at Amor or if you want to take it home. This is an advantage because then
people don’t have to sit in the car and wait, they can simply just get out, get their food
and leave, which takes under 5 minutes. Since 20 % of the meals in America are eaten in
the car, it will be a popular thing to do.
We also target the busy Americans, who haven’t time to drive to our restaurant by giving
them the option to order our food online, and have it brought to their front door via the
cooperation with Dine’n’Dash.
Our benefits are, that we are the only ones who only sell healthy food in the valley. We
are the only restaurant in the valley with an APP and the benefits/services that follows by
purchasing it. We have made it possible to provide a delivery service because of the
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81% of Americans has started to care more about health and being fit, and that benefits
our products.
We would sell it in Solvang in our restaurant and through Dine'n'Dash. We have
a website with our telephone number displayed, so people can call and order.
Another option is to order through our APP.
We would look at what price our competitors sell their food at.
We would figure out how cheap we can produce our product, and at what price we
would need to get a profit.
We made a survey where we asked people how much they wanted to pay for a smoothie, a salad or a sandwich.
4.2
Promotion
We will advertise with flyers around the valley (not in Solvang), and we will also have
banners at the YMCA. We will advertise through our website, through Dine’n’Dash, and
we are going to create a page on Facebook.
We will make a visual merchandising by using vibrant colors. We will make our meals on posters look delicious and inviting, as well as having employees who look healthy. This will be effective on our target market, since we are reaching out to healthy people, If they have “role models” serving them, they are most likely to be motivated.
We will hold press releases every time we launch a new sandwich. We will hold
“speeches” when we are catering events or participating in events (Mostly our own and
the YMCA’s), and since we cooperate with Dine'n'Dash, which is a public food delivery
business, we will be seen on their website.
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We will have adverts with the price on, so that our customers will see a picture of the
good food, at a good price, and be drawn to our business.
4.3
Sales Methods
We would mostly depend on the word of mouth method, to provide our product to our
target group, but we will also try to sell to people via facebook and other our flyers.
4.4
Sales Estimates
On a 12 hours day we would be able to make 288 units per day, so approximately 8640
per month, granted that we are open every day of the month from 9 am to 9 pm.
We would need to sell 480 units every month to break even.
In the time gap between 9 am to 9 pm so a 12 hour working day. 360 hours in a month.
On a 12 hours day we will be able to make 240 units per day.
People mostly eat out in the summer, so that would obviously be the best time-period
for our business, especially because of the tourists in Solvang. It would only affect us in
a positive way in the holidays because there will be more people in town. Our ability to
sell (having workers etc.) will not be affected, as you can always find teenagers who
need a job in the holidays.
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Month
Units
Revenue
January
[6000]
$[36000]
February
[5500]
[33000]
March
[5000]
[30000]
April
[4500]
[27000]
May
[4000]
[24000]
June
[5000]
[30000]
July
[5500]
[33000]
August
[5000]
[30000]
September
[5000]
[30000]
October
[4000]
[24000]
November
[4100]
[24600]
December
[4000]
[2400]
Annual Total
[57600]
20
$3456000