M
rsels
BUSINESS PLAN
KATIE EGELAND
KYLEE HOBB
LORRIE KOLE
ALLIE LAWRENCE
JILL MCCLEARY
1
Table of Contents
Executive Summary
3
Mission Statement
3
Brief Description
3
Goals And Objectives
3
Keys To Success
4
Philosophy
4
Target Customer
4
Location
4
Trends Affecting Business
4
SWOT Analysis
5
Competitive Analysis
6
Market Research
7
Products And Services
8
Marketing And Advertising
9
Legal Issues
10
Initial And Ongoing Inventory Needs And Potential Suppliers
10
Organizational Chart
12
Job Descriptions
13
Policies
16
Financial Plan
16
Appendix A
20
Appendix B
20
Appendix C
21
Appendix D
22
Floor Plan
23
References
24
EXECUTIVE SUMMARY
2
Morsels is a wholesome café/bakery located in San Clemente, CA serving all natural, seasonal, organic,
sweet and savory tapas. Today, many restaurants are opening up that serve tapas however, most tapas
restaurants are geared towards nightlife. Tapas have traditionally been known to be small, snack-like,
appetizer entrée food. Tapas for breakfast and/or lunch is a very innovative concept. By offering morning
and afternoon tapas, Morsels will provide our customers with healthier portion sizes and alternatives to the
large, oversized, processed desserts and pastries you get at conventional cafes and bakeries. Additionally,
you can have it served with a nice, warm velvet-foam latte.
Morsels goal is to develop a repeat clientele of all the dessert and food lovers living and visiting the San
Clemente, CA area through vigorous marketing and advertising. This unique experience will be a positive
influence on those in the community and even those with special diets [i.e. Gluten-Free, Vegan, and in the
future cater to those on a Raw Diet]. Morsels expects to see a substantial growth in sales throughout the first
year and a profit by the start of the second year with expected growth of 20% by the end of the third year.
Morsels will be owned and operated by five Registered Dietitians who believe that all foods can fit into a
healthy diet. It will be located directly in front of the San Clemente Pier, which generates over two million
tourists during the summer months each year. With the backdrop of the beautiful coastline and 340 days of
sunshine, a visit to Morsels will be a dining experience that locals and tourists will not soon forget.
This business plan will outline our goals and objectives as well as our philosophy and financials, which are
supported by our research into the trends and forecast of our business.
NAME OF BUSINESS
Morsels
MISSION STATEMENT
Morsels is a wholesome café/bakery in San Clemente, CA specializing in bite-sized treats for everyone who
eats. We serve your favorite treats, just in smaller portions for those who want a piece but not the whole
darn thing!
BRIEF DESCRIPTION
Morsels will be a storefront café/bakery at the beach in southern California. We plan on opening the doors
in June 2013, offering simple sweet and savory faire, with expansion to dinner items and alcoholic beverages
within five years. We currently have three silent investors and two managing partners.
GOALS/OBJECTIVES



First year gross sales of $175,00.00. Increase sales by 150% by the end of month 12. Increase sales
by 15% by the end of year two and increase sales by 20% by the end of year three.
Increase the percentage of our daily sales of espresso drinks and quiche, our highest price menu
items.
Extend our hours of operation, expand menu to include dinner items and alcoholic beverages by year
five.
3
Keys to success



Provide high quality bite-sized sweet and savory items with customer satisfaction.
Competitive pricing.
Expanding the menu with seasonal, and popular items.
PHILOSOPHY
Morsels believes you can be healthy and still indulge. We believe in investing in our own community by
purchasing locally whenever possible. We are committed to sustainability in our day-to-day operations to
reduce our carbon footprint. We believe in full disclosure with both ingredients and nutritional labeling.
TARGET CUSTOMER
The target population is aimed at all the dessert and food lovers living and visiting San Clemente, CA and
the surrounding towns. Specifically locals, families, tourists, beach goers, surfers, college students, stay at
home mothers, retirees, and affluent business people looking for a place to have quick meetings. Because
the San Clemente area draws thousands of tourists each summer, during the months of June through
September, tourists will be our focused market group which will be the time of year where we advertise the
most. We will be open all year round and be a favorite spot for the South Orange County locals1.
By offering all natural, seasonal, organic morning and afternoon tapas we will provide our customers with
healthier portion sizes and alternatives to the large, oversized, processed desserts and savory pastries you get
at conventional bakeries and cafes. Our target niche will be anyone who loves food looking for a healthier
alternative to the conventional café.
LOCATION
San Clemente is known as the “Spanish Village by the Sea” and has a distinctive Mediterranean Style
because of its breathtaking coastline, red-tiled roofs, over 340 days of sunshine each year, laid-back locals,
and visiting tourists. Morsels will be located directly in front of the San Clemente Pier, which generates over
two million tourists during summer months each year2. Additionally, the San Clemente Beach Trail is a very
popular trail that brings in locals from exercise enthusiasts to those looking for a place to walk and talk with
friends. This small stretch of restaurants already has a pizza shop, savory crepe restaurant, and an ice cream
store. There is no coffee place or café/bakery in that exact location and Morsels would be the perfect
café/bakery that area needs for the tourists in the summer and for the locals all year round.
TRENDS AFFECTING BUSINESS
With over 340 days of sunshine each year, San Clemente locals and tourists are not only drawn to an active
lifestyle by the beach, but the majority of them live an overall healthier lifestyle than the average
population.3,4 Morsels is that wholesome café/bakery that specializes in bite-sized treats for those looking to
enjoy a sweet or savory treat while still being true to their healthy lifestyle.
Today, many restaurants are opening up that serve tapas. Tapas are known to be small, snack-like, appetizer
entrée food. Tapas are popular amongst friends and family because it’s fun to order a few tapas to share over
a glass of wine or beer. Actually, the definition of a “tapas” in many online dictionaries is a small appetizer
usually served with a glass of wine or beer.5 Congruently, Morsels is going to be a similar place friends and
family come for a similar exciting, bonding experience! When you come to Morsels with friends and family,
your taste buds will be deliciously satisfied with a couple bite –sized savory treats or sweets over a nice,
warm, velvet-foam latte.
4
Dozens of articles are written monthly on new tapas restaurants that are coming up all across America. New
York Times restaurant critic, Pete Wells, thought that small plates are a trend that has stood the test of time.6
According to Emarld Coast, tapas are more than an appetizer but not quite a meal, tapas has become
increasingly popular, even in our super-sized meal culture. Everywhere you turn somebody has something
great to say about tapas. But we’re not trying to be just another “tapas” trending café. We’re all RDs and to
us, smaller portion sizes mean less calories and hopefully healthier consumers. The data for 2012 on obesity
from the CDC states that one-third of Americans are currently obese and the trend is increasing. For years
now, RDs, the media, and physicians have all been spreading the word to eat more fruits and vegetables, eat
better, and exercise more. Well what Morsels is trying to do is to introduce another goal in healthy living.
That is, “You can be healthy while still enjoying life and indulging in treats you love.” Also, AND (The
Academy of Nutrition and Dietetics) has a strong message on portion control. Morsels will help spread this
message.
SWOT ANALYSIS
Strengths
Morsels will be located in a very health-conscious, affluent, diverse population with both young families and
retired couples. Positively, this demographic supports our target population and goal to give healthy treats to
those who love to eat just not the whole darn thing. The exact building is right next to a very well traveled
beach trail where people can either leisurely enjoy the panoramic ocean view out on the patio, or grab and go
and savor on the run.
Since our products are smaller portion sizes, all natural, local, and mostly all organic, we are able to be a
positive influence on those in the community and even those with special diets [i.e. Gluten-Free, Vegan, and
in the future cater to those on a Raw Diet]. To add, since portion sizes are small, everyone on a budget will
be able to feed their sweet tooth while not breaking the bank.
Also, ‘tapas’ for breakfast and lunch is a very innovative concept. Most tapas restaurants are geared towards
nightlife. There is not a restaurant that serves tapas for breakfast around Orange County. In Portland,
Oregon, Tasty N Sons restaurant has a focus on tapas for breakfast and according to Yelp!, it is a popular
place to breakfast at.7 Another café called JK Wine Bar, in Ontario, focuses on tapas for breakfast and
brunch and continues to do well since 2005. Young families can still feel youthful and hip by incorporating
the ‘tapas tradition’ into their busy lives with their growing families.8
Morsels Café has a positive influence on the community because it supports local farmers, which also leaves
a smaller carbon footprint.
Weaknesses
Food prices are gradually going up which will have a big effect on the prices we will have to charge on each
item. Another weakness is that none of the owners have been previous café/bakery owners before, ordering
food, and baking for large amounts of people. We will have to get a baker in for the first couple of months to
show us how to operate all the special machinery and bake/cook on a larger scale. The startup costs will be
significant mainly due to the location of the café. Its ocean front view is the big ticket. The actual size of the
café/bakery will be small and quaint which could either be good or bad. Quaint and cozy is good. However,
if we do get too many people wanting to come in and sit there it could be a problem because we will not be
able to accommodate everybody with a table and chairs. Hopefully, most people will come, order Morsel
treats, and take it to the beach, to their home, or eat them on a walk down the beach trail.
Opportunities
5
At Morsels, there will be plenty of opportunities for expansion. In the future, branching out into other
neighboring cities like Laguna Beach, Newport Beach, and Dana Point, will be good opportunities for
growth. We could also provide catering to hospitals, day spas, school events, health benefits, and health
clubs. We will be having nutrition presentations and community health opportunities at our café/bakery as
well. Local healthcare providers will have opportunities to share health information as long as it goes along
with our mission. For example, no protein shakes filled with chemicals and supplements. Health providers
and other RDs who believe in living whole foods and a healthy lifestyle will be welcomed.
Threats
In San Clemente there are a couple other coffee shops that serve baked goods in a two-mile radius, which
will be a competition. One of them is a Starbucks, and the other two have been established now for over five
years. However, these coffee shops do not specialize in exactly the same sweet and savory treats as we do.
There are no bakeries in a two-mile radius so that is one competitor that we won’t have to worry about at this
time. A competitive analysis can be found in table 1 below.
COMPETITIVE ANALYSIS
Table 1: Competitive Analysis
Factor
Products
Price
Morsels
Image
Customer
Profile
Advertising
Location
Weakness
La Galette Creperie
Importance to
Customer
Tapas for breakfast
May be limited to
and lunch is innovative sources of fresh
ingredients. New
concept, may not be
in consumer’s mind
Cupcakes $1.50
Muffins $1.50
Cookies ¢75
Quiche $2
Coffee $1.75
Espresso $3.50
High quality
Competitive
Initial investment
Crepes $5.95 - $7.95
required may be
substantial and rising
food costs could
hamper selections
Brewed coffee $ 1.75
Espresso $3.00
Cupcakes and pastries $2$4
Very
important
Utilizes local fresh
products, selections
baked on premises
Can be costly to
maintain
Good quality
Average
Very
important
Limited seating, café and Informed, health
bakery, take out
conscious employees,
including RDs
None
Limited seating
cafe, take-out
Limited seating, take-out
Very
important
Clean, healthy/trendy low New, trendy concept
prices, fresh ingredients
None
Clean,
healthy/trendy,
quick and
convenient
Medium-high income
Surrounded by health Economy ups and
Medium-high
families, young adults,
-conscious, affluent,
downs could have an income families,
health conscious local and diverse population
effect to our clientele young adults,
non-local residents,
residents of San
tourists
Clemente, tourists
Local word of mouth,
Yet to be determined Depending on word Local flyers
flyers
of mouth
Quick and convenient
Very
important
Directly in front of the San Well situated to
Clemente Pier
tourists and foot
traffic
Walking distance to the San Important
Clemente Pier
None
Brenton style
crepes, home style
dishes, espresso,
Italian sodas,
custom blended teas
Starbuck’s
Bite size cupcakes,
muffins, cookies, quiche,
Espresso drinks, coffee
and tea
Quality
Services
Strength
Across the street
from the San
Clemente Pier
Brewed coffee, chocolate
Important
beverages, Espresso
beverages, Starbucks
petites; cupcakes, cake pop,
muffin, salad and
sandwiches
Medium income, young
Important
adults, young professionals,
tourists
National chain, TV, radio,
newspapers, magazines
Very
Important
Appearance
Contemporary, clean,
beach chic decor
Clean, stylish and
appealing
Contemporary,
clean, slick decor
None
6
Contemporary, clean,
stylish
Somewhat
Important
MARKET RESEARCH
Consumers
The population in San Clemente, CA mostly consists of affluent, health-conscious residents and tourists.
According to the 2011 U.S. Census Bureau, out of approximately 65,000 people living in San Clemente, the
median household income is over $84,000 and each summer San Clemente’s beaches and perfect weather
bring over two million tourists to the town, which creates a lot of revenue.9
Market Trends
The following quotes are a testimony to the potential of a tapas style trendy café such as Morsels. Clearly,
this type of establishment is the wave of the future.
According to Small Business Trend’s at http://smallbiztrends.com/2011/12/10-food-trends-2012.html, “No
matter how tough the economy is, people still need to eat. And foodservice entrepreneurs have shown a lot of
creativity in the past few years—in fact, you could almost say the recession has sparked a renaissance of
restaurant industry creativity. Beyond food trucks, burgers and beer, what are some of the hot food trends for
2012?” Included in their top ten list was the following:


Healthy eating: Trends like gluten-free foods and products catering to diners with food allergies will
continue to be hot. Watch for whole grains, a wider range of salads, selection in portion size, and
low-sodium options to grow in popularity as well.
Appetite for appetizers: Whether you call them tapas, small plates or appetizers, smaller-sized
portions are going to keep growing strong for several reasons. They are less expensive for costconscious diners, offer smaller portions for health-conscious diners, and are made for sharing, which
appeals to people’s desire to make eating out a social experience. Chefs like them too, because
appetizers allow them to experiment with new recipes and ingredients without committing to a fullscale meal.”10
Another food industry tracker is Industry Leasers magazine. In their December 11, 2011 issue found at
http://www.industryleadersmagazine.com/food-beverage-industry-trends-for-2012/ they state the following
as the “to watch” food an beverage trends for 2012:
“Healthy Foods are so 2012”
The food and beverage industry better go healthy, because healthy food and drink is projected to be a
big trend for 2012. This can include gluten-free and food allergy-conscious items. Also be on the
lookout for whole grains, a wider range of salads, selection in portion size (a predicted 2012 food
trend on this aspect are children’s mini-meals, or smaller versions of adult meals), and low-sodium
options. All of those are expected to grow in popularity as well. On the beverage end, look out for
more juice bars. An industry leader on this end is Starbucks, which purchased juice maker Evolution
Fresh about a month ago.11
Smaller Portions
Especially as Americans get more health-conscious and portion-conscious, industry leaders in the food and
beverage industry ought to be catering to the 2012 food trend of smaller portions. Whether it’s those
children’s meals as previously mentioned, or smaller desserts, or even extra large dishes that are meant to be
shared, diners are paying attention to these types of things. Something that’s on the rise on this angle is the
appetizer. Whether you call them tapas or small plates, appetizers are going to keep growing strong for
several reasons. Chefs like them because appetizers allow them to experiment with new recipes and
7
ingredients without committing to a full-scale meal. Diners like them because they are smaller, cheaper, and
can be shared much more easily.”
According an article in USA Today by Bruce Horovitz updated on 4/2/2010, “Some of the nation's most
familiar casual-dining chains are suddenly thinking smaller. They're rolling out tapas-like small plates of
shareable items that typically are cheaper than appetizers by a buck or two — or even three. With business
still in the tank — and customers hard to lure out of the I-can-eat-cheaper-at-home mentality — a cadre of
casual-dining icons, including Houlihan's, Cheesecake Factory, California Pizza Kitchen and BJ's
Restaurants, are trying to boost business with value-priced items to be passed around the table.”12
Primary Research Plans




Speak with locals in the area to see what they think about our idea of treats at smaller portion
sizes, what they’re looking for in a coffee shop, and how they feel about the message.
Set up booths at the San Clemente and neighboring cities’ farmers markets inviting customers to
sample products from Morsels.
Put up flyers, coupons, and incentives at Saddleback College, on people’s cars around town, and
mainly spread the word around local businesses.
Create nutrition classes and baking classes to put in the Community Recreation & Summer Class
Opportunities Magazine.
Niche
Morsels is looking to marry two very successful eating experiences, tapas and café/bakery food. Today, more
and more individuals are becoming health conscious but do not want to sacrifice fulfilling their need for a
sweet treat. Morsels can provide a wholesome, healthy alternative to the refined white flour, white sugar,
artificial everything many people eat to indulge their sweet tooth but without the guilt. How? By providing it
in bite size portions! In addition, Morsels will offer a variety of savory fair and provide homemade bite size
choices to those with special diets such as gluten free and vegan. By using mostly organic locally grown
products, Morsels’ goal is to support the health and welfare of the entire community.
PRODUCTS AND SERVICES
Products
Morsels is a beach town café/bakery that sells moderately priced items in a casual dining environment.
Morsels will feature a static menu focusing on hot/cold beverages (espresso, coffee and tea) and bite-sized
savory breakfast, lunch and dessert items. Seasonal items will be cycled in with the seasons and holidays to
accompany the static menu.
We will focus mainly on the breakfast, lunch and an early evening crowd and will have both dine-in and
take-out options. Although not our focus, we will also offer bulk, pre-ordered options for large-scale needs.
Product Description
Morsel’s bakery menu will focus on bite-sized, mix and match options for the consumer who cannot make
up their mind and appreciates options in their dining experience. Seasonal items will include baked goods
with in-season fruits and vegetables and items traditionally paired with specific times of the year.
The beverage menu will offer an espresso bar with a wide variety of static and rotating options, a variety of
hot and cold teas and a cooler of non-traditional carbonated choices. Morsels will focus on organic,
sustainable and environmentally friendly options when choosing ingredients and suppliers.
8
Future Products
Within 5 years, in order to expand our market and our customer base, Morsels plans on expanding operating
hours to include small plate dinner options and alcoholic beverages. The dinner menu will include similar
items as earlier in the day, but will be expanded and served in a dine-in, full-service experience. Future
expansion efforts will also include full-service catering options for the Orange County area.
Production
All products will be prepared on premise on a daily basis, beginning in the early morning hours. Additional
products will be prepared throughout the day as needed.
Pricing
Prices are based on cost. The selling price of each item reflects an approximate 20% cost and an
approximate 80% mark-up. Our food and drink options are priced to give us a good return on sales, while
still offering a great value to the consumer. Repeat business will be a key for success.
MARKETING AND ADVERTISING
Website – Morselsbakery@weebly.com
This website will provide consumers with background information, the mission, and products
available at Morsels. Each month this site will feature Morsels seasonal and holiday specialty items.
Clients can utilize the site to make a bulk order for special occasions or holidays. As Morsels grows
the site will add a place for customers to make reviews/comments, a list of upcoming events, and all
the current Morsels news.
Events – Morsels will attend, co-sponsor, and host a booth at various annual events in San Clemente. We
will align ourselves and become integrated in the community by attending some of the most
important events in the area. By selling our baked goods at these local events we are able to reach
new and foster existing relationships with clientele. Some of the most important events hosted in the
surrounding community include Cinco de Mayo, San Clemente Ocean Festival, San Clemente Street
Faire, Seafest, Puttin on the Glitz.
Print Ads – A medium sized print ad will be placed in the weekly papers of the local area. The ad will
feature our seasonal offerings and a small discount coupon for bulk/catering orders. The papers
Morsels will advertise in are San Clemente Times, Orange County Register, San Diego Reader, and
the Los Angeles Times.
E-newsletter – Morsels will send out a seasonal newsletter advertising our newest items that will be featured
during each season (Ex. Winter newsletter will feature our Christmas/Hanukkah themed offerings).
This medium will provide the business a way of keeping the clientele interested in our product and
the goal will be to influence repeat business. Customers can sign up in our shop or online to receive
the e-newsletter.
Logo – Morsels has a distinct logo of the name with a small cupcake representing the “o” in the name, which
will help to distinguish the product from our competitors. Our packaging, employee attire, additional
marketing material and signage will all feature the logo.
9
Press – Contact the local press for grand opening coverage. The goal of this is to get positive reviews and
promote what sets Morsels apart from other bakeries in the Southern California region. Additionally, contact
popular nutrition periodicals such as health magazines to make them aware of Morsels unique twist on
having your cake and eating eat too.
LEGAL ISSUES
Morsels will legally be a Limited Liability Company (LLC) including Lorrie Kole, Allie Lawrence, Kylee
Scholar, Jill McCleary, and Katie Egeland. This structure will allow us to be able to draw up agreement
details for the five partners, including provisions for management, assignments of partner interests and
distributions of profits and losses.
Morsels will obtain a General Business License for operation within San Clemente city limits and will renew
the license every two years.
INITIAL AND ONGOING INVENTORY NEEDS AND POTENTIAL SUPPLIERS
Equipment
Morsels will be acquiring new equipment for production purposes. A list of large equipment items for
Morsels can be found in Table 2.
10
Table 2: Equipment for Morsels
Equipment
Southbend Convection Oven, Gas,
double-deck, deep depth, solid state
controls - BGS/22SC
Turbo Air Maximum Refrigerator,
reach-in, 2 section, 49 cu. ft. - MSR49NM
Continental 3 Door Freezer - 3F
Turbo Air 4' Curved Glass Bakery
Case(Dry) - TB-4
Hobart 30 qt mixer Model D300
Turbo Air (TSA-3-14-D1) - 90"
Three-Compartment Sink
Chicago metallic 18 gauge wire in
rim sheet pans 18x26x1 – 24 pans
Chicago metallic mini muffin 2.1 oz.
volume pans – 18 pans
Strong Primary Commercial
Espresso Machine
ATS Side Chair, wood back w/circle
cutout, upholstered seat - 32
ATS Pedestal Table, designed for
indoor use, 27-1/2" dia. round top 4
ATS Pedestal Table, designed for
indoor use, 27-1/2" x 27-1/2" square
top – 4
Emuamericas 116 Outdoor Ronda
Metal Stacking Armchair, Mesh
Seat/Back - 8
Emuamericas 802 outdoor/indoor
Cambi Metal Table 36" Square,
Mesh Top - 2
Source
www.wholesalerestaurant.com13
Cost
$5600.00
www.wholesalerestaurant.com
$2836.15
www.wholesalerestaurant.com
www.wholesalerestaurant.com
$4,489.09
$4,699.33
www.wholesalerestaurant.com
$3695.00
www.foodservicewarehouse.com $593.60
14
www.wholesalerestaurant.com
$337.36
www.wholesalerestaurant.com
$689.58
www.espressonline.com15
$4745.00
www.wholesalerestaurant.com
$3036.80
www.wholesalerestaurant.com
$639.60
www.wholesalerestaurant.com
$639.60
www.wholesalerestaurant.com
$699.84
www.wholesalerestaurant.com
$545.40
11
Suppliers
In order to reduce our environmental footprint, Morsels will use the prime-vending method of purchasing
and purchase nearly all supplies and ingredients from Sysco16 (S). Espresso, coffee, and tea will be
purchased from Grounds for Change17 (GFC) and any vegetables/fruits used in baking will be purchased
from J.R. Organics18 (JRO). See Table 3.
Table 3: Menu, Costs and Suppliers.
Menu Item
Cost per Serving
Price Per Serving
Supplier
Espresso Drinks
$0.70
$3.50
S, GFC
Coffee
$0.35
$1.75
GFC
Tea
$0.27
$1.35
GFC
Quiche
$0.40
$2.00
S
Cupcakes
$0.30
$1.50
S
Cookies
$0.15
$0.75
S
Muffins
$0.15
$1.50
S
ORGANIZATIONAL CHART
Organizational Chart
The five owners of Morsels will be dividing up responsibilities of the business. Each will have specific
duties to fulfill their particular position, as well as general café responsibilities. Chart 1 outlines the job titles
of each owner.
12
Chart 1: Organizational Chart
General
Manager/Owner
Lorrie Kole
I
Head Baker/Owner
Katie Egeland
Marketing
Manager/Owner
Kylee Scholar
Accounting/HR
Manager/Owner
Allie Lawrence
Operations
Manager/Owner
Jill McCleary
Sales Associates
JOB DESCRIPTIONS
General Manager/Owner
Aside from managing the overall operation of the café/bakery, will exert commitment, discipline, and the
ability to multi task. Will supervise to achieve operational excellence, will determine staffing needs of the
operation to create a high performing team, lead the team to achieve goals and objectives according to
company standards, and become a good example for leadership, performance, and excellence.
Main job tasks and responsibilities include:





Responsible for the overall performance of the café/bakery .
Manage the daily output and display of bakery products.
Focus on reducing costs, monitoring product quality and consistency, tracking inventory and oversee
the café/bakery’s budget.
Process invoices, coordinating orders with outside vendors.
Provide customer service
Requirements for the Marketing Manager position include:





Must have superior leadership skills, work well with a team and have the ability to work
independently with little or no supervision.
Must have superior decision-making skills, problem-solving skills and conflict-management abilities.
Must have a thorough knowledge of the company, its culture and its products and services.
Must be able to work well with all levels of management and have superior training and delegation
abilities.
Successful candidates should have a minimum of five years management experience and a bachelor’s
or Master’s Degree in a related field of study.
Head Baker
Main job tasks and responsibilities include:
13









The head baker is the first one in the shop to begin the baking process at 3 a.m.
She will do 50% of work by hand and the other 50% of work will be done by machinery at the
café/bakery.
She is diligent about exact measurements and pays strict attention to timing and quantities being
used. In accordance with this, she will be the one taking inventory daily on what has been used, is
being used, and will be used.
She typically sets the quotas for how many particular items must be produced each day; along with
which items will be seasonal, for holidays, and daily special treats.
The head baker will have mastered a number of tools to produce the most desirable products on the
market.
She will know nutrition and health and keep appropriate serving sizes and ingredients to follow the
mission of Morsels.
It is important that the head baker be creative, and to come up with original recipes and ideas for
flavorful, unique, and comforting treats. Since sometimes the head baker will be working alone, it is
important to be a self-motivator.
The head baker’s production duties after baking all morning are to help clean up and be a bright,
cheery, personable face to the customers and public.
The head baker will be known by all guests and a friend to all customers.
Marketing Manager
The marketing manager will oversee all marketing, advertising, and promotion of goods and services and
will establish marketing strategies to meet the needs of the café/bakery.
Duties will include:



Continuously evaluate the market conditions, customer demographics and competitors to ensure
marketing plans are being changed and updated as needed.
Keep all owners abreast of marketing trends, needs and any changes in the market or industry, which
are prevalent to the café/bakery and its interests.
Assist in baking, cleaning, selling products and all other aspects of production where needed.
Requirements for the Marketing Manager position include:



Graduation from an accredited 4-year university with a degree in Marketing or business and at least 5
years of marketing experience. Ten or more years of marketing experience with a minimum of 5
years of management may be substituted for a 4-year degree.
Experience with marketing a restaurant/café/bakery.
Familiarity with the San Clemente/Orange County area
Accounting/Human Resources
As account manager, establish and maintain financials for the company by supervising the development and
carrying out systems designed to collect, analyze, verify and report Morsels’ financial transactions. As
human resources manager, oversee staffing and human relations programs, as well as managing any issues
that may arise regarding human resources.
Main job tasks and responsibilities include:
14




Manage recruiting, selecting, orienting, training; communicate job expectations; enforcement of
policies and procedures; administer employee benefits; oversee any employee issues that require
legal clarification or action.
Reach accounting objectives by compiling accounting information and provide recommendations for
future business operations; create action plans; identify trends, necessary improvements, conduct
audits, implement corrective actions and change.
Maintain confidentiality in human resources as well as in financial security through establishing
proper controls.
Conduct educational programs to help staff and owners keep up to date on industry and company
knowledge.
Operations Manager
The Operations Manager will be responsible for ensuring the effectiveness and efficiency of the daily
operations of Morsels. The position will work closely with accounting, HR and all the managers in planning,
directing, and coordinating of the cafes operations.
Reporting to the General Manager, the Operations Manager will make schedules, manage ordering, and help
develop long-term strategies and other miscellaneous tasks.
Main Job Tasks and Responsibilities













Oversee staff scheduling needs and conflicts
Create weekly staffing schedule
Oversee operational systems, procedures and policies
Set and maintain productivity and quality standards
Schedule maintenance and upkeep of the facility
Ensure food safety and quality of all products
Oversee materials and supplies
Oversee purchasing and ordering
Ensure that accounting department requests are resolved and communicated in a timely manner
Contribute to short and long term organizational planning and strategy
Oversee organizational insurance policies
Improve the effectiveness of support services
Improve operational systems in support of the organizations mission
Requirements for the Marketing Manager position include:









College degree preferably in business administration, management or finance
3+ years related experience
Strong background and work experience in finance
Excellent communicative skills both verbal and written
Excellent problem solving and organizational skills
Strong computer skills
Excellent interpersonal skills
Excels at operating in a fast past environment
Ability to delegate responsibilities effectively
15
POLICIES
Hours of operation
Tuesday-Friday 6:30am – 7:00pm
Saturday - Sunday 7:00am – 5:30pm
Closed on Mondays
We will be closed on the following holidays:
 New Year’s Day
 Easter
 Thanksgiving
 Christmas
Refund/exchange policy
Morsels strives for greatness in each of our creations. In-store orders can be returned for a full refund or
exchange for another item. For all pick-up items/orders, uneaten portions can be returned for a full refund or
exchange for another item. For catering items, orders should be checked for accuracy prior to leaving store,
once items have left the premise, Morsels should promptly be called and the concern should be explained, all
uneaten items should then be returned for a partial or full refund, depending on the nature of the complaint.
Payment Policy
Morsel’s café/bakery offers the following options for our customers to make payment for their purchases:





Cash - morning cash drawer will have a $300 bank. The General Manager/Owner will tally receipts at
the end of each business day. Cash will be stored in on site safe and bank deposits made every Friday,
or as necessary.
Visa – minimum purchase $5.00
MasterCard – minimum purchase $5.00
American Express – minimum purchase $5.00
Discover – minimum purchase $5.00
Privacy of Customers Personal Information
Morsels will not share personal information with third parties. Morsels will not sell, trade, lease, or give
personal information out to others. Personal information is used to identify or contact a specific individual
such as a name, email address, or telephone number. No credit card information is stored on the Morsels
website and credit card information that is given by phone or in person is destroyed immediately after
approval and processing. At Morsels, we respect and are committed to protecting privacy of our customers.
Dining Room Dress Code
Patrons – Despite being located near the beach and Morsels laid back atmosphere our policy stands as “No
shirt, No shoes, No service.”
Employee Dress Code
Shirts – Morsels will provide each of sales associates with a Morsels t-shirt. The shirts will be black with the
logo on the front left corner and various Morsels quotes on the back. Theses shirts must be worn at all times
while on the clock.
16
Pants – Black pants will be worn by all sales associates and bakers, which he/she will need to provide for
themselves. Pants are important for safety in the kitchen when working around hot ovens and baking areas.
Shoes – Shoes must be closed toed with a non-skid sole for safety. Morsels will allow him/her to choose
their footwear and its color to allow for personal expression.
Chef’s jackets – Morsels will provide chef’s jackets with logos on the upper left corner for all of the baking
staff and owners. These are to be worn whenever baking to protect the body when working with hot items.
Accessories – Earrings are permitted. Bangles, bracelets, and necklaces are prohibited to encourage
uniformity and avoid safety mishaps with loose fitting jewelry.
Hair – Sales associates should have clean and presentable hair, which can be worn as desired. Bakers need to
wear hairnets or hats when baking to ensure proper health standards in food production areas. Overall, hair
needs to appear clean and groomed.
Other – Sales associates, bakers, and owners should display overall proper hygiene. Nails need to be cleaned
and trimmed, false nails are prohibited. Please avoid excessive makeup, if there is any question about how
much is too much please ask management for clarification. Avoid perfumes and other personal fragrance as
some customers or your fellow staff member could be allergic.
17
FINANCIAL PLAN
Startup Budget
Morsels’ silent investors will provide $30,000 in capital and we will borrow $55,000 in a long-term loan,
which will cover our startup expenses. We will borrow $90,000 in a short-term loan to cover our expenses
until the company becomes profitable. We will need to buy supplies, equipment, and initial inventory,
provide a rent deposit including 1st months rent, pay utility deposits19, 22 and business permits and license
fees.20 The average lease rate in our desired prime location ranges from $2.30-$4.30 per square foot per year,
so we decided to take the mean of $3.30 per square foot to estimate our rent18. Figure 1 details Morsels’
startup expenses.21
Figure 1: Projected Start-Up Expenses
Start-Up Expenses
Total: $50,200
$40,000
$6,600
Plant and
equipment
$1,000
$1,200
Office
equipment
Initial
inventory
Rent deposit
$500
$900
Utility
deposits
Legal
expenses
12-Month Projected Profit and Loss Projection
We expect to make a profit from sales in the ninth month of operation but do not project a profit for the first
year of business (See Appendix B). We have projected our monthly expenses as follows:






Rent: $3300
Utilities $700
Insurance $200
Supplies $100
Telephone $100
Labor costs $9520
We will pay each owner $400 a week for the first year.23, 24We expect our monthly sales to increase each
month and project $178,821 total sales for the 2013-2014 year. We have used growth factors for each item,
which can be found in the Projected Monthly Unit Sales sheet (see appendix A). Figure 2 shows monthly
losses and profits from sales for the first year of operations.
18
Figure 2: Morsels’ Projected Profit and Losses from sales for 2013-2014
Projected Profit and Losses 2013-2014
$15,000.00
June
July
$10,000.00
August
September
$5,000.00
October
November
$-
December
January
$(5,000.00)
February
March
$(10,000.00)
April
May
$(15,000.00)
Break Even Analysis
We have generated a report that helps show when we expect to receive a profit (See Appendix C). We
produced an average cost per unit and unit sale price based on expected units sold during the first year of
operation. We estimate our break-even point to be after selling 154,305 units according to our Break Even
Analysis (See Appendix D), which we expect to be in our second year.
19
APPENDIX A
2013-2014
May
April
March
February
January
December
November
October
September
August
July
June
12 Month Profit and Losses
5,091
6,005
7,109
8,297
9,864
11,752
14,035
16,803
20,152
24,223
29,210
35,328
Material ($)
1,018
1,201
1,422
1,659
1,973
2,350
2,807
3,361
4,030
4,845
5,842
7,066
$37,574
Labor ($)
9,520
9,520
9,520
9,520
9,520
9,520
9,520
9,520
9,520
9,520
9,520
9,520
$114,240
Sales ($)
187,868
Cost of sales
Other ($)
Total cost of
sales
$0
10,538
10,721
10,942
11,179
11,493
11,870
12,327
12,881
13,550
14,365
15,362
16,586
$151,814
Gross profit ($)
-5,447
-4,716
-3,833
-2,882
-1,629
-119
1,708
3,922
6,602
9,858
13,848
18,743
$36,055
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
$39,600
Utilities ($)
700
700
700
700
700
700
700
700
700
700
700
700
$8,400
Telephone ($)
100
100
100
100
100
100
100
100
100
100
100
100
$1,200
Insurance ($)
200
200
200
200
200
200
200
200
200
200
200
200
$2,400
Supplies ($)
100
100
100
100
100
100
100
100
100
100
100
100
$1,200
Operating expenses ($)
Payroll ($)
$0
Rent ($)
Depreciation ($)
128
128
128
128
128
128
128
128
128
128
128
128
Amortization ($)
Total expenses
($)
15
15
15
15
15
15
15
15
15
15
15
15
4,543
4,543
4,543
4,543
4,543
4,543
4,543
4,543
4,543
4,543
4,543
4,543
Profit ($)
-9,990
-9,259
-8,376
-7,425
-6,172
-4,662
-2,835
-621
2,059
5,315
9,305
14,200
Interest exp. ST
Interest exp.
LT
Net profit ($)
$1,533
$180
$54,513
($18,459)
600
600
600
600
600
600
600
600
600
600
600
600
$7,200
458
458
10,317
458
458
458
458
458
458
458
458
458
458
$5,500
-11,048
-9,434
-8,483
-7,230
-5,720
-3,893
-1,679
1,001
4,257
8,247
13,141
($31,159)
Unit sales
(units):
Espresso
drinks
Coffee
Tea
Quiche
Cupcakes
Cookies
Muffins
Total Unit
Sales
2013
May
April
March
February
January
December
November
October
September
August
July
June
Growth Factor
APPENDIX B
15%
25%
10%
10%
15%
10%
25%
360
415
480
520
600
690
795
915
1,050
1,200
1,380
1,590
9,995
600
750
940
1,175
1,470
1,840
2,300
2,875
3,595
4,495
5,620
7,025
32,685
360
400
440
485
535
590
650
715
785
865
950
1,045
7,820
300
330
365
400
440
485
535
590
650
715
785
865
6,460
300
345
400
460
530
610
700
805
925
1,065
1,225
1,410
8,775
360
400
440
485
535
590
650
715
785
865
950
1,045
7,820
650
815
1,020
1,275
1,595
1,995
2,495
3,120
3,900
4,875
6,095
7,620
35,455
2,930
3,455
4,085
4,800
5,705
6,800
8,125
9,735
11,690
14,080
17,005
20,600
109,010
20
APPENDIX C
Break-Even Analysis
Fixed Costs
$
39,600
Staffing
Utilities
Telephone
Insurance
Office Supplies
Deposits
Equipment
Inventory
Permits
Total
$
$
$
$
$
$
$
$
$
$
114,240
8,400
1,200
2,400
1,200
3,800
40,000
1,200
900
212,940
Unit Selling Price:
$
1.72
Rent
Expected Unit Sales:
187,868
Break-Even Units:
154,304
21
Variable Cost
Items
Cost
Baking
Supplies
$
0.34
APPENDIX D
Break Even Analysis
Units
Fixed Cost
Variable Cost
Total Cost
Revenue
Profit
50,000
$ 212,940
$ 17,000
$ 229,940
$ 86,000
$ (143,940)
60,000
$ 212,940
$ 20,400
$ 233,340
$ 103,200
$ (130,140)
70,000
$ 212,940
$ 23,800
$ 236,740
$ 120,400
$ (116,340)
80,000
$ 212,940
$ 27,200
$ 240,140
$ 137,600
$ (102,540)
90,000
$ 212,940
$ 30,600
$ 243,540
$ 154,800
$ (88,740)
100,000
$ 212,940
$ 34,000
$ 246,940
$ 172,000
$ (74,940)
110,000
$ 212,940
$ 37,400
$ 250,340
$ 189,200
$ (61,140)
120,000
$ 212,940
$ 40,800
$ 253,740
$ 206,400
$ (47,340)
130,000
$ 212,940
$ 44,200
$ 257,140
$ 223,600
$ (33,540)
140,000
$ 212,940
$ 47,600
$ 260,540
$ 240,800
$ (19,740)
150,000
$ 212,940
$ 51,000
$ 263,940
$ 258,000
$ (5,940)
160,000
$ 212,940
$ 54,400
$ 267,340
$ 275,200
$ 7,860
170,000
$ 212,940
$ 57,800
$ 270,740
$ 292,400
$ 21,660
180,000
$ 212,940
$ 61,200
$ 274,140
$ 309,600
$ 35,460
190,000
$ 212,940
$ 64,600
$ 277,540
$ 326,800
$ 49,260
200,000
$ 212,940
$ 68,000
$ 280,940
$ 344,000
$ 63,060
22
Morsels FLOOR PLAN
23
References
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