Theresa Gould
Product Manager
TRG Productions
2008
Table of Contents
1. Generally Speaking
2. Hello, My Name Is
3. The World We Live In
4. In My Sights
5. This is Not a Plastic Pie Tin
6. Friendly Neighborhood Competition
7. I’ve Got an Image to Uphold
8. It’ll Cost Ya
9. And That’ll Be $___, Please.
10. Financially Sound
11. Graceful Exit
12. Credit is Due
1
Generally Speaking
Product Name
The product is called Sweet and Saucy. It is derived from a connection to the desserttheme of the restaurant (Sweet) and the alcohol-tinged theme of the bar (Saucy). It
alludes the to the dual nature of the bar, just as Naughty and Nice might allude to the dual
nature of a person.
Product Background
The idea for this restaurant stems from personal experience. It seems all too common an
occurrence: You and a group of friends have decided to meet up for dinner. You choose
a place, probably close by, with a wide range of menu options and a casual atmosphere.
After you finish your meals, you cluster by the door trying to decide what to do next.
Dessert would be nice. Maybe we can find somewhere to just hang out. I’d like to get a
drink.
Sweet and Saucy is a hybrid restaurant that effortlessly blends the decadence and
glamour of handmade pastries and desserts with the exuberant atmosphere of a local hang
out appropriate for many customers.
During the day, Sweet and Saucy overflows with the hustle and bustle of women, young
children, birthday parties… It’s family-friendly mood is inviting for even the youngest
and most delicate of patrons.
The afternoon air fills with telephones ringing in the orders of the next day: businesses
looking for something different, something startling. No more boring bagels and boxed
lunches for our weekly meetings…let’s show the boss we’re really stepping outside the
box. Whole cakes, pies, tarts, and mini object of desire platters will please even the most
hard-balling coworkers.
Firmly rooted in the breezy atmosphere of the east coast, Sweet and Saucy makes its
debut in Melbourne, Florida in late 2009. The designers began with a blank slate: an old
chain restaurant located on a half-acre lot along US 1 at the crossroad of Pineda Crossing.
Abandoned, but full of promise, the building featured commercial ovens and an openfloor layout just perfect for Sweet and Saucy’s chic stylings and gourmet creations.
2
Hello, My Name Is
Statements
Provide location for after-dinner soirees with friends.
Provide a quick stop at the end of errand running for the kids to get an exotic tasty treat.
Provide a different option for local businesses in need of catering for corporate or
professional events.
Scenarios
Jill and her three friends went out to dinner tonight for a girl’s night out. After wrapping
up dinner and an hour of nonstop conversation and laughter, everyone clusters just inside
the doorway. What now? It is only 8 pm and none of them feel like going home. I
could use a drink. I wish there was somewhere cool we could go. They wish they could
find a place that served a good cocktail and maybe some interesting sweets to close out a
great night.
Kathy is exhausted. She’s been running around all afternoon, grocery shopping, hitting
the bank, picking the kids up from school, and taking them to dance class…and now that
class is over they’re all wired and restless. Kathy desperately tries to think of a place she
can take them for a treat to keep them occupied and hopefully cause them to experience a
“sugar crash” just in time for her to make dinner and relax. Kathy almost turns into the
local ColdStone, but is swiftly interrupted. But Mommm, I don’t want ice cream again…
Jake is the new guy. He sort of fumbles around the office, trying to help out where he
can, but mostly gets in the way. Then one day he gets the chance of a lifetime: plan the
company party. This is big. This is his chance to really show them what he’s got. But
he’s got his work cut out for him…after all, they are picky old people. He can’t just get
those lame box lunches from the local deli. He needs something different, something
unique…and decadent.
Components
The core market for this product is wide-ranging, encompassing almost every age group.
The majority of customer will be women, although men will salivate at the sight of
homemade heaven. Prime customer base will range from men to women, families to
singles. Average age will be in the 21-45 range, although under 21 admitted during the
daytime.
Research should focus on business plan of a Friday’s-type establishment mixed with the
employee-rotation nature of SuperCuts, Great Clips, etc. employee. Want to provide an
outlet for up and coming chefs to experiment and build their repertoire, thereby allowing
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us to feature new menu items on a regular, continual basis. Further research should focus
on trends within the popular drink market, as well as pastry/sweets market. Goal is to
have a constant influx of new menu items to encourage repeat patronage and provide
outlet for professional and creative growth of staff.
Need to address atmosphere appropriate for market, as location suggests casual.
However, want to distinguish the brand by evolving based on current trends in design.
Biggest hurdle will be to keep casual, comfortable atmosphere devoid of rowdy
customers, but still represent hip, ever-changing establishment.
4
The World We Live In
The pilot location for Sweet & Saucy will be the city of Melbourne in the center of
Brevard County, Florida…at the heart of the Indian River and a thriving tourist and local
economy. In the past, Melbourne has been a stop-through for professionals in the space
and technology industries, as companies like NASA, Harris, and Lockheed Martin were
always looking for temporary new talent in one of their local divisions. This constant
rotation of inhabitants prevented any consistent growth and kept families out of the area.
However, in recent years many other industries have begun to flourish in Brevard
County, causing an influx of new residents. Banks, media, and real estate ventures
offered job security previously unheard of in this area, and families answered the call.
Soon schools were popping up, housing developments expanding, and retail space going
like hotcakes.
Brevard County today is a melting pot, with a population of over half a million.1 From
2000 to 2006, Brevard County experienced almost a 13% growth in population and even
landed itself on MSN.com’s list of Top Ten Places to Live in the US in early 2008
(results were based on many employment-related factors).
In addition to families, Brevard County is also home to two major educational venues:
Florida Tech and Brevard Community College (multiple campuses). This creates a
constant influx of 20-28 year-old students looking for something else to do on a Friday
night when school is just too much.
In October 2008, nearly 5,000 food and beverage stores called Brevard County home,
making distinguishing oneself a crucial task.2 Nearly every major chain store can be
found within the meager 1,012 square feet that Sweet & Saucy wishes to call home.
The pilot store will be located on the corner of Pineda Crossing and US 1. Currently, the
city is constructing a connector from the causeway in Satellite Beach all the way to I-95.
This will make it a major intersection for all traffic between the beach communities and
tourists coming in from the interstate. Location is critical for this brand. Currently, there
is only one other restaurant in the area…a local seafood restaurant that is more
traditional, formal, and expensive than the Sweet & Saucy customer is looking for.
1
2
http://quickfacts.census.gov/qfd/states/12/12009.html
http://www.labormarketinfo.com/library/CES.htm
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In My Sights
The Big Picture (Market)
The overall market for Sweet and Saucy is quite large. The current population of Brevard
County is around 534, 359.3 According to several studies, the average American eats out
about 4.2 times per week. This amounts to 218 meals per person per year, or an
astounding total of 116,490,262 meals that are purchased eaten at some location outside
of the house. Although there is no way to acquire every purchase or every customer in a
market this large, by breaking it down into manageable segments, we can begin to tailor
our efforts.
Closer Now (Segments)
Segmenting the market in Brevard County is a complex beast. In the past, nomadic
businessmen employed by the dominant space and technology industries have largely
inhabited this area. However, in recent years there has been a growth of a more stable
demographic group. Families became more rooted and population has boomed. Indeed
one website listed the Palm Bay/Melbourne area as one of the top 10 places to live in the
US based on several factors including availability of employment and overall satisfaction.
This opens the market up to several key target segments:
Women with Young Children
The first consumer group of interest to Sweet and Saucy is comprised of families with
young kids. Headed by women who are typified as regular readers of O and Martha
Stewart Living magazines, have middle- to upper middle-class incomes, and are
extremely family-oriented. They are the new age soccer moms…independent, creative,
and progressive. They are women who bake themselves as stress relief, but who are
seeking time out of the kitchen. With their schedules bursting with career commitments,
after school activities, and self-maintenance, they really just want somewhere to stop
after a day of nonstop errands. They need somewhere to take their kids for a treat (other
than same old ice cream shop). Finally, despite their commitments to exercise and a
modest diet, they are secretly seeking a place to spend their “cheat” day.
Young Professionals
The most easily accessible target segment includes young adults in their early 20’s. They
are fun loving, single, and strongly female. Seeking a place to feed their relationships, as
well as their bellies. The typical customer is one who enjoys music, fashion, Grey’s
anatomy and Sex and the City. They are social drinkers…seeking something different,
3
http://quickfacts.census.gov/qfd/states/12/12009.html
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something daring, and something with an edge. They live to gossip and cherish their
friendships with a passion. Professionally employed, but in early stages of responsibility
cycle. Primarily seeking a new place to hang out and get a drink. Want an out from the
everyday bar scene. These customers are generally drawn to different, interesting drinks
(martinis, mojitos, etc…). Want a place to eat and still maintain appearances (the local
bowling alley is so uncool). They despise the old rundown dives with creepy old men at
the end of the bar that fill the corners of every major intersection. They are
subconsciously drawn to the vivid colors and fancy-schmancy, fun décor of Sweet and
Saucy.
Businesses and Corporations
This segment includes all companies seeking catering for special events, corporations,
local non-profits. They may also be looking for feed shows, exhibits, etc… Or just
seeking refreshments for guests or employees on random occasions.
Focus will be on small-to-medium sized companies within local area (Brevard County).
Special emphasis will be paid to local broadcast/advertising outlets (Radio stations,
newspapers, festivals). This will foster the long-term investment for word-of-mouth
marketing and free promotions (trade basis). Many companies offer incentives for free or
discounted catering, and radio, cable, and news outlets offer instant feedback to a wider
customer base.
7
This is Not a Plastic Pie Tin
Political
The current political environment seems to be rather steady at that moment. As the
United States prepares for a change of command (election results would argue a very
welcome change), the political world seems to be experiencing a leveling out. There
seems to be a very low rate of political unrest or need for extreme regulation.
Due to the negative economic situation, current taxation and regulation are relatively
minimal. In addition, wages remain low, which will keep our costs at or below our
expected estimates. Finally, President-Elect Barack Obama has stated that his primary
concern is the economy, so we can expect some relief in the near future.
Economic
As the biggest environmental factor, the current economic condition will play a key role
in the formation and success of Sweet and Saucy. Although the average person is said to
eat out 4.2 meals per week, we are seeing a decline in those numbers. People are in
conservation mode…they are seeking to maintain what wealth they have and keep
unnecessary spending to a bare minimum. This means fewer customers, and even those
customers we do manage to get will be less willing to spend money on pricey desserts.
In addition to just eating at home, we believe there to be a change in the choices eatouters do make. When choosing to eat away from home, we believe people are more apt
to choose a low-cost, fast food-type establishment over one that may be sit down and
require a payment for service. This will affect the number of customers we have that are
willing to sit in the dine-in section of the restaurant.
Further, the economy will continue to affect costs. As the tightening of the monetary belt
squeezes more and more industries, our costs for materials and special ingredients will
continue to rise. We will need to pay close attention to our pricing and our SG&A to
ensure we are controlling costs wherever we can.
Sociocultural
The sociocultural status of the local market plays a key role in the marketing strategies
and success of the brand as well. Right now the market is keenly focused on cutting back
and reducing unnecessary spending. As such, our marketing efforts need to be
aggressive, yet accommodating, in order to appeal to those not looking to eat out as often
or at all.
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In addition, we must be very conscientious of the current trend towards health. It is
becoming more widely accepted to be a healthy eater and avoid alcohol or other “toxic”
libations. For this reason, we must avoid using words that scream “fatty” or “bad for
you” and focus on taste, quality, and value.
Finally, the current trend is focused on going green. We must make a concerted effort to
use recycled products and offer local choices. Our products should be grown locally and
minimally processed. We must be sure to use all natural ingredients, and mention such
on menus, window signs, etc… This will ensure our acceptance in today’s Green society.
Technological
Technology will play a key role in the marketing strategies for all the target segments.
An aggressive online campaign will include coupons, discounts, VIP memberships, and
forums for menu suggestions. Customers will be able to receive coupons via their email
and register online for special discounts.
We will feature a VIP membership club that will allow for the accrual of points, with
each point adding up to a free menu item (based on total points). The members will be
able to track their points online, as well as cash them in for certificates for the free items
to bring to the store.
Finally, our website will feature an interactive forum that will allow customers to send in
their own menu suggestions. This two-way dialogue will keep customers coming back to
the site to chat and back to the store to check for their product idea.
In addition, new technology in baking/ovenry will allow us ensure a perfect bake every
time. Our restaurant will receive an oven upgrade, as well as full-service checkout
stations with touch screen features. Today’s customers do not have the time to wait while
the cashier fumbles to ring up the order. Fast service means repeat customers.
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Friendly Neighborhood Competition
With its distinct design and fresh business plan, Sweet & Saucy faces some exciting
opportunities, as well as some stiff competition. A thorough analysis of these juxtaposed
conditions will ensure a solid execution and assured success in the market.
Sweet & Saucy
STRENGTHS
WEAKNESSES

New, innovative menu; menu
updated on a regular basis

Menu does not include basic items,
like entrees; very specific

Atmosphere fits both families and
young, hip crowds

Cost to produce menu items much
higher that competition (experience
curve and lack of supply
relationships)

Small company with local feel
OPPORTUNITIES

THREATS
Consumers looking for a fresh, new
dining establishment; bored with
mainstream
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
Lots of big
companies/conglomerates in area;
restaurant heavy

Atmosphere may discourage males
TGI Fridays
TGI Fridays is the closest to a direct competitor.
STRENGTHS

Big-name brand that is well-known
and reliable

Diverse menu items and reasonable
prices

Recently overhauled and remodeled
all stores nationwide
WEAKNESSES

Crowd can be rowdy; younger

Food and drinks can be predictable
OPPORTUNITIES

THREATS
Ability to create wide-ranging or
specific advertising campaigns to
target any competitor
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
Today’s consumers favor local
companies

As local area becomes more familyrich, consumers are seeking a less
bar-like place to bring kids on days
off
Staying at Home
Due to the current downturn of the economy, many people are choosing to stay at home.
STRENGTHS

WEAKNESSES
Comfortable; don’t even have to get
dressed

No travel required

Kids/friends can just kick back and
be themselves

Must cook/prepare meals

Lack of options; limited by skill,
ingredients available, and time
OPPORTUNITIES

THREATS

Economy is making it more
acceptable to be frugal and not go
out as much
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Consumers seeking something new;
escapism; refuge
Mitigation Strategies
Our mitigation strategies focus on building the brand as we go along. Many of our
threats and weaknesses stem from our freshman nature and will likely be mitigated with
simple time. For example, our cost of goods sold is higher than our competitors because
of the experience curve. As we gain experience and our recipes become committed to
memory, our production will increase, so costs will go down.
Further, as we grow we want to ensure we are planning our expansion project. This will
allow us to branch out and meet the needs of the other markets, or more precisely meet
the needs of our current customers. Our brand is open to a “brother-store” concept that
would appeal to the males in the market. This brother-store would likely offer more
substantial menu items, thus increasing our product offerings.
13
I’ve Got an Image to Uphold
Logo and Slogan
The logo is as displayed below. The overall design presents the fun, dual nature of the
restaurant. One on hand, the colors are lively and fun, and perhaps slightly adolescent.
However, the presence of the shot glass fill the brim with a decadent dessert does more
than appeal to the older crowd. It says laughter, excitement, friendship, and quality. It’s
ageless.
Head designer, TRG, designed the logos shown above in house, so no additional costs
were incurred. The image consists of a fun shot glass filled to the brim with vibrant
cherries and sweet whipped cream. This image helps to bring together the two main
elements of the restaurant, alcohol and desserts. The text of the logo is fun, a little edgy,
and vibrantly-colored in the signature hot pink and green hues that will surround the
branding and marketing campaigns. The logo was also designed in grayscale for effect
and to use in subtle print marketing. Having our own black and white logo will eliminate
the fear of local media outlets attempting to make our logo grayscale for their print ads
(and thus possibly distorting the brand).
Marketing Strategy
The key element of Sweet & Saucy’s successful market plan will be its differentiated
approach. It will be crucial to pinpoint the particular needs of each target segment and
market towards those needs. Each of our segments is very unique and shares few similar
characteristics with the others. Because of this, an undifferentiated marketing approach
would not be able to effectively target all the segments and we would fail to procure or
maintain customers. Each target segment must feel like Sweet & Saucy is exactly what
they were looking for.
Our marketing approach will focus on one main concept: escapism. Each target segment
has been beat to death with the same ol’ same ol’ and is looking for something new and
exciting. Sweet & Saucy offers that something at a low price. Media campaigns will be
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centered on radio advertisements, as well as mailers and partnerships with local events.
Several pro bono catering deals will be allotted for each quarter to ensure all pockets of
the market have a chance to try our menu out for free.
Branding
According to the Quantified Marketing Group, “Very simply put, a brand carries with it
in an instant our expectations of what we think our money will buy.”4 They also point
out that customers’ emotional reactions to a restaurants design are growing ever more
important.
Values
Community
Our brand would be firmly rooted in community. It is vital to present our local approach
and customer focus in order to gain that local trust and loyalty. People are sick of the big
names – the fragile economy has made them unreliable. In addition, their manufactured
natures are a turn-off for today’s eco-friendly, organically-minded consumer.
Innovation
In addition to a community focus, our brand must be the pinnacle of innovation. With a
modern design and constantly updated menu, our brand will be seen as being on the
cutting edge. The overall concept is unique and new…never been done before. Our
unique menu items will include the hot new product of the year (like pomegranates last
year or acai berries this year). A community of innovation is the foundation for Sweet &
Saucy.
Personality
Our brand would fit snugly between the archetypes of the Magician and the Jester. We
offer a sense of belonging and a sense of ownership, so customers feel like they are a part
of our brand. In addition, we are constantly changing, updating, and growing, so we offer
innovation and exploration. We bend the rules of creativity and allow the community to
be a part of that experience.
4
http://www.quantifiedmarketing.com/learning_center/restaurant_branding.php
15
It’ll Cost Ya
Costs of Goods Sold
The Cost of Goods Sold analysis is based on an average sale. The unit of measure is one
dessert and two drinks (whether alcoholic or non-alcoholic). Actual costs will vary
slightly based upon specific details, but the below outline represents an accurate average
purchase:
Flour
sugar
Eggs
baking soda
baking powder
salt
brown sugar
chocolate
vanilla
butter
powdered sugar
milk
special ingred
soda
alcohol
$0.04
$0.03
$0.06
$0.01
$0.01
$0.01
$0.06
$0.21
$0.02
$1.73
$0.11
$0.01
$2.00
$0.15
$0.32
baker
wait staff
$1.17
$0.80
goods
labor
Total Cost
$4.77
$1.97
$6.74
All of our goods will be bought in bulk from local producers/distributors to ensure the
lowest possible prices.
The primary employee in the cost chain will be the baker. His/her salary will be
equivalent to $14 an hour in order to ensure the highest quality for the best value. Total
labor costs are based on a bake-rate of 3 cakes every two hours.
Additional salaried employees are covered in the Sales – General and Administration
fees.
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Sales, General and Administrative
The SG& A are the administrative costs to run Sweet and Saucy. The amounts shown are
listed on a per year basis, in order to show actual expense for year one.

Salaries:
o CEO/Manager :
o Assistant Manager:
o 5 Cashiers:
 1 Part-time:
 4 Full-time:
o 2 Janitors:
$150,000
$80,000
$8,000
$80,000
$20,000

Insurance/Fees:
$12,000

Marketing:
$100,000

Operating Expenses:
$50,000

Total SG&A:
$500,000
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And That’ll Be $___, Please
Summary
Year 0
Initial Invest
Year 1
Year 2
Year 3
Year 4
Year 5
$120,000
Unit Cost
Total Units
Total Cost
$6.74
253,206
$1,706,605
$6.77
300,204
$2,032,379
$6.80
379,762
$2,582,381
$6.83
444,351
$3,034,918
$6.86
507,771
$3,483,307
Initial Investment
The initial investment of $120,000 will primarily be used for refurbishing the building
and applying the new design theme. The breakdown is as follows:

New appliances:
$40,000

Sign:
$18,000

Counters/tables/chairs:
$10,000

Computers:
$6,000

Décor misc:
$10,000

Parking lot repair:
$14,000

Menus/magnets:
$1,000

Bathroom upgrades:
$8,000

Misc supplies:
$3,000

Initial Marketing:
$8,000

Legal Fees:
$2,000
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Financially Sound
The key point to consider when evaluating the financial elements of launching this brand
is that the cost/price per unit is an average. The unit is calculated as an “average
purchase” or one dessert and two drinks per person. This will change depending on the
target segment doing the purchasing or the purpose of the visit. The most significant
difference will lay in whether or not an alcoholic beverage is part of the purchase. Thus,
the price per unit will fluctuate for the customer based on his/her specific needs.
In addition, the cost to produce this unit will fluctuate based on the elements of the actual
unit purchased. Alcohol will cost more than a non-alcoholic beverage. Also, each
dessert will be different and will include different premium ingredients. These costs will
fluctuate with the season, local availability, and popularity.
The SG&A costs will remain stable at approximately 17%. This is an average amount
based on various competitors with similar business plans and operating costs.
We are assuming a tax rate of 25%, which will cover us during times of potentially
aggressive tax regulation.
Overall, we can expect to begin seeing a positive cash flow within the first year, with an
expected net profit of nearly $500,000. With the expected growth rates for the first five
years, we can reasonably calculate a net present value of $2,230,495. With the cost of
capital at an expected 15%, our internal rate of return is a comforting 428%, making this
investment sound.
Sensitivity Analysis
Sweet & Saucy is more likely to be sensitive to an extreme growth than a deficit. With
the current pricing scheme, a cushion has been built in to allow for fewer sales than
expected. With our costs at barely more than 50% of the price per unit, we can adjust the
price or offer special deals in order to encourage sales during extreme down times.
In addition, an raise in cost for any of our required materials would not represent a
significant issue because we have that cushion built into the price. The price remains
well within the reasonable zone for a meal of this nature, so a small increase in price will
likely be tolerated well.
However, an extreme growth beyond our means would drastically affect the business.
With only three commercial ovens and less than a dozen employees, we would not be
able to handle many more customers than anticipated. We also do not have the storage
space for additional materials, nor do we have the floor space or hours in the day to serve
additional customers.
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Graceful Exits
Exit strategies are crucial for two reasons: (1) investors need to see an opportunity to
make money off their investment in the future and (2) it’s always good to have a
contingency plan as sometimes things don’t go as expected.5
Acquisition/Merger
If business is growing at an overwhelming rate or is not meeting expectations for several
years in a row, then a planned acquisition by a larger company may be the most viable
option. With several large-scale conglomerates out there that would be able to support
our brand, acquisition offers a chance to maintain our brand integrity while being
protected by the umbrella of a larger retail veteran.
Spin Off
If our brand seems to be flourishing in the local and we are unable to meet all of the
demand, a spin-off or growth strategy may offer relief. This may be the best option if the
web response for new menu items reaches unsatisfiable numbers. In addition, the
opportunity for a sister store in another location will allow our brand to grow, name
recognition to take hold, and our business to continue unrestricted. Initial research into
possible locations prior to launch is crucial. Sister store could be an exact replica or offer
different menu items to capture the rest of the market.
My Ideas
The most viable option for this brand is to extend the product life cycle by increasing
marketing efforts and offering new choices. This will be firmly in place from the
beginning with the operation of the website and it’s forum function, which allows
customers to offer suggestions for new menu ideas. This will keep the menu fresh and
updated. The customers will feel like it’s partially theirs as well…giving them a feeling
of ownership. This will be similar to the image/menu upgrades being pushed by
competitors like TGI Fridays right now.
5
http://www.gaebler.com/Entrepreneurial-Exit-Strategies.htm
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Credit is Due
Branding: Retrieved from the World Wide Web from
http://www.quantifiedmarketing.com/learning_center/restaurant_branding.php.
Brevard Quick Facts. Retrieved from the World Wide Web from
http://quickfacts.census.gov/qfd/states/12/12009.html.
Class Notes. Product Development, Georgetown University. Fall 2008.
Employment Data. Retrieved from the World Wide Web from
http://www.labormarketinfo.com/library/CES.htm.
Exit Strategies. Retrieved from the World Wide Web from
http://www.gaebler.com/Entrepreneurial-Exit-Strategies.htm.
Logos. Retrieved from the World Wide Web from
http://www.logodesignguru.com/A/Restaurant_Logos.asp
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