Business Plan: Mannayo
Joohee Hong
Table of Contents
Introduction ............................................................................................................................................ 2
Mission Statement ................................................................................................................................... 2
Goals ....................................................................................................................................................................... 3
Objectives .............................................................................................................................................................. 3
Market Trends ......................................................................................................................................... 3
Business Description ............................................................................................................................... 4
Meet the Proprietor, anonymous ..................................................................................................................... 5
Target Customers ................................................................................................................................................ 5
Location ................................................................................................................................................................. 6
Setting..................................................................................................................................................................... 6
Sample Menu ........................................................................................................................................................ 6
Summary ................................................................................................................................................... 7
References ................................................................................................................................................. 7
Appendices ..................................................................................................................................................i
1
Business Plan: Mannayo
Joohee Hong
Introduction
This is a business proposal for a cooking studio, MANNAYO, for foreign travelers, which
I would like to establish as a sole proprietor in Seoul, Korea, by the year 2020. We are going to
offer a hands-on cooking experience in the capital of Korea for busy travelers with the desire to
learn how to cook delicious, healthy, and authentic1 Korean food. The cooking studio will be
located in downtown Seoul, near a subway station, a market, and restaurants for convenient field
trip opportunities. We will have a multi-lingual website which allows prospective students to
sign up for classes, and a company blog to document the cooking studio experience, advertise the
business and provide a portal to other related businesses of similar interest.
Mission Statement
The vision for our business is in our name, MANNAYO, which means “we meet” and
“delicious” in Korean. We provide a platform to meet other Korean food enthusiasts from all
over the world and to experience Korea’s cultural tradition of sharing and appreciation through
small community cooking in home-like settings. We believe in letting our customers create their
own gastronomical nostalgia2 that will stay with them after exploring this ethnic cuisine in an
exotic location.
1
Mintel Group, Ltd., a London-based global market research group, reports in their recent press release that
authenticity is a key ingredient in ethnic fare. Aside from an authentic flavor, ethnic foodies also place importance
on all-natural (49%), premium/gourmet or artisanal (49%) and reduced fat (48%) positional claims, which round out
the top characteristics overall that matter in the purchase decision. Retrieved from http://www.mintel.com/presscentre/food-and-drink/authenticity-is-key-ingredient-in-ethnic-fare-reports-mintel
2
The word, “gustatory nostalgia” was used by Supski (n.d., as cited in Solier and Duruz, 2013, p. 5).
2
Business Plan: Mannayo
Joohee Hong
Goals
We want to provide you with an entertaining and hospitable experience where you can
open your mind and appreciate a different culture through sharing the joy of cooking and
learning about Korean food.
Objectives
The students will learn how to set the authentic Korean dining table, which consists of a
soup or stew, kimchi, and multiple healthy side dishes (called banchan), and to understand the
similarities and differences in cooking techniques compared to western cooking. The students
will have opportunities to share their own stories through community cooking and optional
guided walking tours creating one-of-a-kind traveling memories in Korea.
Market Trends
Scott Mowbray, an editor for Cooking Light magazine, (2012) listed international
culinary tours as one of the new food culture trends where newly prosperous Americans travel
and encounter deep food cultures abroad (Huffington Post, para. 3). In fact, so-called
gastronomic tourism is an emerging global phenomenon that is being developed as a new
tourism product, and the cuisine of the destination is of utmost importance in the quality of the
vacation experience. As internationally renowned editors and writers Hall and Sharpless (2003)
found, people tend to spend 1/3 of their travel budget on food-related activities (as cited in Mak,
Lumbers, & Eves, 2012, p. 172). Amongst ethnic food enthusiasts, there is an emerging trend of
not just going to favorite Korean restaurants, but also to create Korean style food at home. For
example, Joanna Sciarrino (as cited in Muhlke) picked gochujang for #13 food trend out of 50
top food trends in 2013, as a new competitor to sriracha (Bon Apétit, p. 23).
3
Business Plan: Mannayo
Joohee Hong
To reflect these trends, more visitors to Korea are drawn to hands-on Korean cooking
classes as part of their itinerary. Although commercial cooking schools for foreign travelers do
exist,3 they tend to focus on handful of popular dishes like bulgogi and bibimbap in industrialstyle kitchens and some are even created as strategic corporate marketing tools. On the other
hand, small cooking studios with home-like settings with upscale appliances and high-end
kitchen interior design are more popular among local Koreans.4 Cooking studios for local
Koreans tend to cater to smaller groups of foodies, focusing on quality ingredients and engaging
people socially. MANNAYO will provide the best from both worlds: a variety of delicious healthy
Korean recipes and an intimate, home-like cooking experience.
Business Description
We will have a multi-language website with a secure online reservation system for up to
6 people. Classes will be offered from Monday through Friday with instructions in English (and
other languages, if necessary). The classes will, tentatively, be 2 hours long, with an extra hour
dedicated for sharing the dishes that the class created. The menu will be announced three months
ahead and detailed recipes will be posted via email three days prior to the scheduled class date.
Two people will be paired as partners for each recipe and dishes will be shared with the class.
Students can also sign up for optional guided walking tours around the local area to visit
traditional markets and restaurants of their interest on selected days. Some of the menus will be
seasonal and available only during special event.
For example, Food & Culture Korea; On’go Food Communication; Chongga Kimchi World. Retrieved from
http://english.visitkorea.or.kr/enu/SI/SI_EN_3_4_8_7.jsp
4 Lee, D.E., & Kwon, H.J. (2010). Yori mokgo jori baeugo, mashitneun suda gongkan, cooking studio [Cooking
Studio: Tasty conversational space for learning to cook and eating]. Jungang Ilbo. Retrieved from
http://life.joins.com/news/article/article.asp?Total_ID=3974304&ctg=12&sid=5731
3
4
Business Plan: Mannayo
Joohee Hong
Meet the Proprietor, anonymous
I grew up in a food-centric family where, before I learned to cook working beside with
my mother, I learned to appreciate quality food. After leaving home in Seoul, Korea for
schooling in the U.S. and pursuing a career in laboratory sciences, I found myself inextricably
drawn to the kitchen again, after starting a family of my own. The love of cooking, sharing food
and helping other people brought me back to school for a dietetics program to become a
Registered Dietitian. (RD).
Target Customers
The annual number of visitors to Korea exceeded over 10 million in 2012, which is an
over 10% increase over the previous year alone despite the sluggish world economy.5 The Korea
Tourism Organization (KTO) projects 20 million visitors annually by the year 2020.6 The year
2020 is also the year that Korea’s neighbor Japan is hosting the Olympics. Gastronomic tourism,
an emerging global phenomenon,7 along with growing interest in Korean culture and food, can
be expected to significantly expand number of people interested in taking Korean cooking
lessons. MANNAYO will cater to customers 10 years old and above from all over the world, with
different cultural backgrounds and cooking skills. People visiting Seoul for personal or business
trips will be able to conveniently sign up either through their hotel concierges or via our
company’s web site.
5
Korea Herald. (2012). Foreign tourist arrivals to Korea reach 10 million. Retrieved from
http://www.koreaherald.com/common_prog/newsprint.php?ud=20121121000877&dt=2
6
Retrieved from http://www.traveldailymedia.com/124635/korea-tourism-targets-20-million-tourists-by-2020/
7
World Tourism Organization. (2012). Global report on food tourism, UNWTO, Madrid.
5
Business Plan: Mannayo
Joohee Hong
Location
MANNAYO will start at a cooking studio facility, CHARIDA8, located in Itaewon
(accessible from Noksapyung & Itaewon Seoul metro stations), in an area where the U.S. Army
Garrison was previously located. This area has attracted many multi-cultural businesses catering
to the foreign population in Seoul. Recently, the Itaewon area has become famous for its highly
populated trendy restaurants and shops, popular with locals, foreign visitors, and expats.9
Foreigners with no knowledge in Korean can easily navigate through the town as there are kiosks
providing free interpretation and concierge services.
Setting
MANNAYO will launch at a small rented cooking studio (50-60 sq. ft.). The cooking
studio is a novel cooking space concept in Seoul, which provides a clean, convenient and stylish
environment frequented by food stylists, private parties, and events. The traditional all-white
kitchens with large islands, furnished with updated equipment and a large dining area can make
anyone feel at home, unlike the all-stainless-steel kitchens commonly used at cooking schools.10
Sample Menu
For the KIMCHANG11 DAY event, our special seasonal 3-hour cooking experience menu
will feature: napa cabbage kimchi; ginseng oxtail soup; herbed matsutaki mushroom over brown
rice cooked in an iron casserole; and banchan with mashed tofu and seasonal vegetables.
8
34-158, Itaewon-dong, Seoul, Korea. Retrieved from http://charida.com/#&panel1-2
Korean Jungang Daily. Retrieved from http://bit.ly/16HFrrW
10
For example, Food & Culture Korea; On’go Food Communication; Chongga Kimchi World. Retrieved from
http://english.visitkorea.or.kr/enu/SI/SI_EN_3_4_8_7.jsp
11
Kimchang has been a cultural tradition in Korea, tracing back to the times of no refrigeration. Families and
neighbors traditionally gather together to prepare a large batch of kimchi for winter, during which a large
glazed pots filled with kimchi are stored under the ground-level.
9
6
Business Plan: Mannayo
Joohee Hong
Summary
MANNAYO will be a unique cooking studio experience for foreign travelers visiting
Seoul, Korea. We will provide delicious, authentic, and healthy Korean cooking experience and
guided walking tour in an intimate home-like kitchen setting, at a convenient location with easy
access to public transportation. We will have a multi-lingual website for easy sign up and secure
online transaction. MANNAYO will help you create authentic traveling memories and broaden
your understanding of a different culture through creating and sharing Korean food.
References
de Solier, I., & Duruz, J. (2013). Food cultures: Introduction. Cultural Studies Review, 19(1), 48.
Logan, D. (2012) Foodie fundamentalism. Utne, 174, 72-74.
Mak, A.H.N., Lumbers, M., & Eves, A. (2012). Globalisation and food consumption in tourism,
Annals of Tourism Research, 39(1), 171-196.
Mowbray, S. (2012). The rise of the new food culture. The Huffington Post. Retrieved from
http://www.huffingtonpost.com/scott-mowbray/rise-new-food-culture_b_2270530.html
Muhlke, C. (2013). 25 food trends for 2013. Bon Apétit, Retrieved from
http://www.bonappetit.com/restaurants-travel/article/25-food-trends-for-2013, 19-27.
7
Appendices
Appendix I: Annual Income Forecast for MANNAYO
Part 1:Food Service Segment
Class Period
# of Seats
Turnover
Class
Fee
# of Days per
Week
# of Weeks
Sales from
Classes
Beverage %
Beverage Sales
Mon.-Fri.AM
8
0.8
$90
5
52
$149,760
n/a
$0
Mon.-Fri.PM
8
0.8
$90
5
52
$149,760
n/a
$0
Total Sales from Classes (a1)
$299,520
Catering
# of Seats
Turnover
Average
Fee
# of Days per
Month
# of Months
Total Sales
from Catering
(a2)
Beverage %
Beverage Sales
On-site Catered
Events weekend PM
Up to 20
0.8
$100
2
12
$38,400
30%
$11,520
$337,920
Total Beverage
Revenue (b)
$11,520
Total Sales from Food
Services (a) a = a1 + a2
i
Part 2: Service-Only Segment
Market Tour Period
# of Seats
Turnover
Tour Fee
# of Days per
Week
# of
Weeks
Service-Only Sales
Beverage
%
Beverage
Sales
Sat. Lunch
10
0.8
$70
1
40
$22,400
n/a
$0
Sat. Dinner
10
0.8
$80
1
40
$25,600
n/a
$0
$48,000
n/a
$0
Total Service-Only Sales (d)
Part 3: Facility Rental Segment
Facility Rental Only
# of Seats
Turnover
Flat Rate
(up to 20)
Sat/Sun
(Up to 20)
0.8
$300
# of Days per
Month
# of Months
Total Rental Income (r)
6
12
$17,280
late PM
Appendix II: Profit and Loss Worksheet for MANNAYO
SALES
Food (a)
$____337,920________________
Beverages (b)
$_____11,520________________
Total Food and Beverage Sales (c)
c=a+b
Total Service-Only/Tour Sales (d) from part 2 of appendix I
$____349,440________________
$_____48,000_________________
ii
Total Food, Beverage and Service Sales (e)
e=c+d
$_______397,440________________
FOOD & BEVERAGE COSTS
Food (f)
f = (15%* x a1) + (33% x a2)
Beverages (g)
g = 20 % x b
$______57,600________________
$_______2,304_______________
Total Cost of Food and Service Sales (h)
h=f+g
$_________59,904_____________
GROSS PROFIT (i)
i=e-h
$________337,536____________
CONTROLLABLE EXPENSES
Fixed Payroll (j) j = _14____% x e
$_____55,641.60_______________
Variable Payroll (k)
$_____59,616.00_______________
Employee Benefits (l)
k = _15*____% x e
l= _20____% (j+k)
Other Controllable Expenses (m)
m = _6____% x e
Total Controllable Expenses (n)
$_____23,051.52______________
$_____23,846.40______________
n= j+k+l+m
$________162,155.52___________
INCOME BEFORE OCCUPANCY COSTS, INTEREST, DEPRECIATION &
INCOME TAX (o)
o=i-n
$________175,380.48___________
iii
Occupancy Costs (p) 20% x o
$_____35,076.00_______________
OTHER INCOME: Facility Rental (r)
$_____17,280.00_______________
q=o–p+r
INCOME BEFORE INTEREST, DEPRECIATION & INCOME TAX (q)
$_______157,584.38_____________
Interest (s) 5% x o
$_______8,769.02______________
Depreciation (t) 2% x o
$_______3,507.61_____________
u=q–s-t
MANNAYO Profit: (u)
$________145,307.75____________
* instead of 33%, 15% is used for cooking class portion of food cost
** instead of 13%, 15% is used
Appendix III: Sample Menu Cost Analysis to Calculate Daily Food Cost
Menu Item
Ingredients
Unit Price
Amount per Class (10
people)
Total Cost per class
Kimchi
Napa Cabbage
$12.35/30lb=ca.15 heads
20lb
$8.23
Matsutake Mushroom
$25/lb
1lb
$25
Organic Brown Rice
$0.741/lb
5 cups=2.5lb
$1.85
Daikon Radish
Red Pepper
Fish Sauce
Matsutake Mushroom Rice
in a Hot Casserole
Herbs
iv
Oxtail Soup
Oxtail
Mashed Tofu with
Vegetables
Firm Organic Tofu
$3.99/lb
4lb
$16
Total Food Cost per Class
Roughly $60
Parsley
Sesame Oil
Appendix IV: Payroll Expenses
Employees
FT
Instructor I, English-speaking, owner, manager
Salary
PT
Total # of Hours
Payroll Expenses
9hr/d x 5d/wk x 52 wk = 2,340 hr
$63,180 (ca. 16% of total sales,
e)
Instructor II, Japanese-speaking
$27/hr
6hr/d x 5d/wk x 13wk = 390 hr
$10,530
Instructor III, Chinese-Speaking
$27/hr
6hr/d x 5d/wk x 13wk = 390 hr
$10,530
Assistant I, English-speaking
$18/hr
6hr/d x 5d/wk x 26wk = 1,170 hr
$21,060
Assistant II, Japanese- or Chinese-speaking
$18/hr
6hr/d x 5d/wk x 13wk = 390 hr
$7,020
Food Tour guides (any languages)
$18/hr
6hr/wk x 92 wk = 552 hr
$9,936
Part-time Servers for Catering (No Language Skill
Required)
$15/hr
10hr/mo x 2 servers x 12 mo = 240
hr
$3,600
Catering Chef (No Language Skill Required)
$25/hr
12hr/mo x 12 mo = 144 hr
$3,600
Total P/T Wages Expenses
$67,056 (ca. 17% of total sales,
e)
v
Appendix V: layout and legend
6
Legend
#
appliances
1
microwave (wall-mount)
2
double wall oven
3
magnetic induction cooktop
4
dishwasher
5
double-drawer under-counter
refrigerator
#
appliances
29 3/4 21 1/2 GE: ZS2201NSS
5
prep table, 5” backsplash
26 5/8 23 1/4 GE: ZEK958SMSS
6
hand sink, wall-mount, 7.75"
splash
17 1/4
7
office desk
45 1/4
8
filing cabinet
9
waste (recycle, garbage, compost)
1
wire shelving
36
24bigtray: 4-2472BR
2
wire shelving
42
24bigtray: MET2442BRKIT
48
14bigtray: MET1448BRKIT
W (in) D (in) order number
36
W (in)
48
D (in)order number
30 big tray: ADVKMG304
15 1/4from the handout
20 7/8 GE: ZHU36RSRSS
24 staples: HON34002RCL
17 1/2 22 1/2 GE: ZBD1870NSS
23 3/4 25 7/8 GE: ZIDS240BSS
33
18 KOHLER: K3159
17 11/16
10 1/2
22 1/8officedepot: 837493
20Container store: 10049178
6
kitchen sink
7
island hood (not visible)
8
food processor, countertop, 4qt
10
11 from the handout
3
wire shelving
9
demo kitchen island
84
48 custom
4
hand truck
15 1/2
9 staples: 9200035
10
drawers/cubbies
20
20 custom
5
busing cart
18
27 big tray: LSD422
11
waste (recycle, garbage, compost)
20 container store: 10049178
1
office chair
24 3/4
24 3/4ikea: 998.845.39
12
hand sink, wall-mount, 7.75"
splash
2
reception desk
62 1/2
25 1/4custom
3
benches
1
washer and dryer
2
storage table
27
3
garbage can
15 5/8
12 1/2container store: 10052425
1
beverage center
23 3/4
23 3/4GE: ZDBC240NBS
35 7/8 27 5/8 GE: PV977NSS
10 1/2
17 1/4 15 1/4 from the handout
36
22 cumstom
12 custom
13
cabinet for pots and pans
14
shelvings for plates/cups, etc.
15
cubbies (personal belongings)
30
24 custom
1
reach-in freezer, single door
26
29 from the handout
2
refirigerator, single door
28
34 from the handout
2
wet bar
3
receiving table
24
24 bigtray: ADVTTF242X
3
dining table
104
47crate & barrel: 564382
4
2-compartment sinks, 18x18x18
tubs with drainboards
72
bigtray:
24 ADVFC2181818RLX
4
dining bench
84
14crate & barrel: 668214
12 custom
27 1/4
36
23 3/4GE: GTUP240GMWW
11custom
18custom
vii