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Executive
Summary
Executive
Summary,
part 2
Executive
Summary,
part 3
Market Opportunity
Fast casual is the fastest growing
segment of restaurant industry
General
Market
Overview
3% annually
10% annually
Source: CIRE Magazine
CURRENT PROBLEM
The Fast Casual Market in the LA area does not provide
customers with a high-quality and relatively cheap fusion
dimsum offer
The current offer, instead, focuses on single high-quality
dimsum restaurats that do not provide, though, a fusion
experience, like Bao Dimsum House, and on low-quality
franchise dimsum restaurants such as Din Tai Fung
The growing fast casual market (10% annually) has
therefore holes and gaps in which to build a new
competitive niche
CURRENT SOLUTION
SumDimSum offers an international fusion of seven
different cuisines under the common denominator of a
high-quality dimsum experience, while maintaining a lowprice profile through the franchise model of expansion
Market
Opportunity,
part 3
BENEFITS PROVIDED
Fusion experience and satisfaction of a wide
range of tastes
Cheapness
Interactivity through hi-tech service (Ipad
order system) and creative, online marketing
campaign
Social experience: SumDimSum is
specifically equipped with rotating tray
platforms to welcome groups of friends that
want to share a fusion cuisine while
preserving the individual tastes
Product Definition:
customers and
benefits
2019:
national
expansion
FRANCHISING
MODEL
2016:
breakeven
2018:
regional
expansion
2017:
initial
profit
WILSHIRE BOULEVARD
Cultural and lively district, the
closeness to the LACMA
contributes to reach the
target market of high
educated and young
customers, open-minded and
willing to try new things, after
the LACMA experience
BOTTOM-UP
Location: LACMA
The online, social and hi-tech sales and marketing
techniques of the bottom-up approach will give
SumDimSum an estimated annual customers
growth of 125%, thus contributing to a bigger
market share of the $88 million segment shown in
the top-down analysis
Competition:
The Competitive Advantages
SumDimSum advantages:
Affordable price
Non remote location
Fast service
Quality
Competitors' main
advantage: most of our
competitors are known
chains, such as Five Guys and
Chipotle or known specialized
dim sum restaurants (located
in specific city's areas though,
like Little Tokyo, K-town and
the asian districts)
Competition:
Main Direct Competitors
Competitors
Quality
Price
Target
Area
SumDimSum
High
$8-15
Gen Y
Wilshire
ROC
Medium
$11-30
18-35 year
olds
Santa Monica
Bao DimSum
House
Medium-High
$20-35
25-45 year
olds
Beverly
Boulevard
Low-Medium
$11-30
18-35 year
olds;
vegetarians
Arcadia
Source: Yelp.com
Competition:
Indirect Competitors
Operating in the Fast Casual market, SumDimSum is exposed to
the risk of a broader and indirect competition from well-known
Fast Food chains, whose main examples are Chipotle, Five Guys
and Subway: radial competition
Asian
Restaurants,
Korean BBQ and
Sushi
Chipotle, Five
Guys, Subway
ROC, Bao
Dimsum House,
Din Tai Fung
RESTAURANT
INDUSTRY
COMPETITION
INDIRECT
COMPETITORS
DIRECT
COMPETITORS
SumDim
Sum
Competition:
The Arena
DimSum
restaurants in LA
are concentrated
in Downtown and
Koreatown
SumDimSum is
located on
Wilshire
Boulevard and
manages to attract
Competition:
SWOT Analysis
SumDimSum opens a new niche in the Fast Casual Market: the encounter of the
franchising, fast-food-like model with the offer of high quality dimsum
STRENGHTS
WEAKNESSES
SWOT ANALYSIS
OPPORTUNITIES
1) Fast-casual is the
fastest growing segment
of industry.
2) Upscale fast-casual is vastly ignored by
the big chains.
3) People's interest in ethnic food is rising
THREATS
1) Popular dim sum
chains are slowly moving into central LA
2) Fusion asian foods are a rising
trend in restaurant industry.
3) Distribution chains may be hard
to replicate when expanding.
STRATEGIC PARTNERSHIPS:
Foursquare, Yelp, AroundMe and
GrubHub
ACCEPTANCE
TEST and
GUERRILLA
MARKETING
DIFFUSION
TRIAL
PENETRATION
STRATEGY
Primary Menu
The primary menu will feature traditional dim sum as well as all popular international
fusion items
Seasonal Menu
The seasonal menu will feature fusion dim sum with seasonal ingredients. Ingredients
must be fresh and not frozen, so seasonal items are a necessity
Make-Your-Own-Dim-Sum
Customers will be able to submit their own dim sum recipes which the top 5 will be
chosen monthly for a special menu
Celebrity Chef Spot
Once a month a celebrity chef will come in and have a one-day event where they will
create and sell their own unique dim sum menu
Tea/Beer/Wine
The beverage menu will feature an international variety of green and black tea, beers, and
different types of rice wines
Asset Turnover Ratio: Net income/ Total Assets- This reflects how
efficiently and fully assets are utilized and how quickly is liquidity and
return on assets obtained.
SALES
ACTIVITIES
Major cost
$8,500 ANNUAL
Growing BUDGET: from
BUDGET for year one 358k on year one to
612k on year five
$9,000 ANNUAL
BUDGET for years 2
to 4
Operations
Operations:
Inside The
Walls
Operations:
Facilities and Staffing Detailed
Location on Wilshire Boulevard, close to LACMA Museum, to appeal to
Generation Y target
Remodeling : Create a hip modern look, buy tables and chairs, set up iPads,
construct assembly-line style kitchen, construct a tea bar and beer refrigeration
system, create an eye-catching sign SumDimSum - GetSum
Restaurant equipped with 80-100 seats main room, kitchen, stock
1 General Manager : Run day-to-day operations & establish food distribution
system for ingredients/beverages
5 Cooks : Run all kitchen operations including dim sum, tea, and beer
3 Waiters : Run the dining room and maintain customer satisfaction
Operations:
Production Plan
Chef : traditional dim sum cooking system with steam woks
Food preparation : 5 cooks work on three different stations, each equipped
with two ovens, cooker ring and grill: one for meat and fish dimsum, one for
sweet dimsum and desserts and the last one for side dishes and appetizers
Food preservation : a stock of raw materials with long shelf-life is paralled by a
system of three fridges and two freezers adopted to conserve perishable food
Operations:
Inventory Management
Stock in the back of the restaurant
divided in two parts:
Operations:
Order Fulfillment
iPad ordering system
Fountain tray distribution
Operations:
Financial Projections:
Overview
Financial Projections:
5-Year Projection Of Sales and Expenses
Financial Projections:
Income Statement Year 1
- CAP EX~$500K,including buildouts and lease $200/sq. feet
Financial Projections
Income Statement Year 2
Financial Projections:
Income Statement Years 3 To 5
Financial Projections:
Amount Of Capital Needed
AMOUNT: the amount of capital needed in the initial round is
$ 850,000
TIME PERIOD: the initial capital will last for the initial two years and will help
SumDimSum to reach profitability in Q8
MILESTONES: The milestones reachable with the initial round are:
July, 1 2014: Grand opening (the capital will sustain rent, purchase of equipment, and
workers wages and CAPEX)
Mid-September November 2014: Website live and Mobile app launch to build
customers fidelity
July 2016: Break-even point
We expect to raise a second round of capital for June 2017, when the second
location will open. The second fund will furthermore help the expansion in
Northern California, planned, for June 2018, and eventually the national
expansion of January 2019
Financial Projections:
Investment Opportunity & Equity Options
Option 1
Option 2
Roll-out Investment/Equity
Management
Mary DuBois
Los Angeles Marketing director for BudWeiser
3 years at boutique marketing agency in LA
Avid foodie
Staun Barley
Celebrated chef and runner up of Top Chef
15 years in the industry
Executive Chef at The Ivy for 5 years
Management
Head Cook
Create base and seasonal menu items
Maintain food quality
Kitchen staffing and management
Customer Relations Manager
Marketing and Promotion
Expansion Roles
Management
Companys Flowchart, Year 1
The Management Style is hierarchical and initially led by the General Manager
General
Manager
Customer
Relationship
Manager
Head Cook
Four cooks
Four Waiters
Management
Companys Flowchart, Year 2
CEO
COO
CMO
General
Manager
Customer
Relationship
Manager
Head Cook
Four Cooks
Four Waiters
Management
Companys Flowchart: Expansion
CEO
COO
CMO
CFO
General
Manager
Customer
Relationship
Manager
Assistant
Marketing
Director
VP Operations
Six Waiters
Head Cook
Six Cooks
Management
Future Management
Management:
Needs Down the Road
Networking: VP of Marketing will be responsible for
creating an extensive network of celebrity
chefs and food critics for promotional needs.
Distribution: COO will be responsible for creating
an extensive distribution system in the
city of each potential location.
Customer Retention: The VP of Marketing and COO must work
together to create new product options and
marketing ideas to boost customer loyalty
and maintain strong customer retention.
55
Risk Evaluation
East-Coast Distribution Risk- Fresh ingredients could be difficult to
source when expanding to the East Coast.- Expanding to these areas will greatly
increase revenue, but quality might be
sacrificed across those locations.
56
Exit Plan:
Two Different Alternatives
Acquisition
SumDimSum will position itself to be acquired
by a major fast food corporation such as
McDonalds or Subway. The company will try to
keep existing management as to not sacrifice
quality or sacrifice company culture.
Franchise
If SumDimSum grows faster than expected, the
current management may not be able to support
the demand for additional locations. Franchisees
will thus be a viable option to support the quickly
expanding business. Additionally, franchising the
location will put less stress on top management
and will allow them to focus on more pressing
issues.
57
Get Sum!
Appendix
Data Sources
US Census Bureau Data: www.census.gov
LEXIS NEXIS: www.lexisnexis.com
YELP: www.yelp.com
Appendix:
Other Financial Projections
Year One Numbers
Facilities
60
61
62
Appendix:
Specific Financial Assumptions
63
Appendix:
64
Appendix:
Detailed Risk Assumptions
How do we allow an adequate startup period and capital to launch the concept and grow our customer base in a
competitive sector?
Our financial plan is budgeted to support the Worst-Case business scenario.
How do we confirm that our Funding Requirement is sufficient?
Our team has an extensive background in restaurant startups and finance. They conducted a thorough analysis.
In addition, all three members are putting in their own money in a emergency jar in case of any additional financing
requirements.
We have leveraged our membership with the National Restaurant Association to look at industry averages for this
market segment for Restaurant startup and Operations. Additionally, we included a contingency buffer in the financial
estimates to account for any potential cost variance.
How do we know we have selected the right location for this concept?
As members of the target market, we have in-depth, intimate knowledge of our concept and its location.
We consulted a restaurant consulting firm to do due-diligence whose results confirmed our hypothesis.
How will you react if the competition is more competitive than projected or business?
Given the exceptionally low cost of our goods, we are prepared to adjust our prices so they are competitive.
We also have a big first mover advantage in this segment of the industry which we expect to mitigate that risk