Professional Documents
Culture Documents
Table Of Contents:
I. EXECUTIVE SUMMARY ___________________________________________________ 1
II. PROBLEM _______________________________________________________________ 2
III. CUSTOMER SEGMENTS _________________________________________________ 3
IV. UNIQUE VALUE PROPOSITION __________________________________________ 3
V. SOLUTIONS _____________________________________________________________ 3
VI. CHANNELS _____________________________________________________________ 4
VII. REVENUE STREAMS ____________________________________________________ 4
VIII. COST STRUCTURE ____________________________________________________ 6
IX. KEY METRICS __________________________________________________________ 7
X. COMPETITIVE ADVANTAGE _____________________________________________ 8
XI. CONCLUSION ___________________________________________________________ 8
XII. BIBLIOGRAPHY________________________________________________________ 9
I. EXECUTIVE SUMMARY
To serve quality, pre-made meals on the go to commuters for an affordable price is our goal.
Hard working commuters need to have a meal on the go that is fresh, made with quality, and at a
price point that will not hurt their wallets. A convenient on-the-go meal is needed to satisfy the
needs of modern, bustling commuters. Meal in a Minute provides fresh microwavable meals
from vending machines on the go, primarily in large urban centers, for busy commuters
who want to be frugal with their meals. These vending machines will be placed in Chicago
Transit Authoritys rail train stations so that they can reach the highest number of commuters in
and out of the city as possible. We will offer a variety of pre-made high quality meals so that
consumers may enjoy a fresh meal on the go in their chaotic daily routines. Primarily, our target
audience will be the 229.12 million annual commuters on Chicago Transit Authority's rail
transportation lines. Among these travelers we will target millennials who are commuting to
and from work and are in need of a warm meal. These consumers will be frugal, too busy to go
eat in a restaurant, and may follow a strict work/commute schedule that would hinder their
ability to go to a fast food chain for their meals. Although Meal in a Minute has a large startup
cost, it has massive potential once it launches. Out of the estimated $2,543,244 required to start
and run Meal in a Minute for one year, the founder and family will pay $500,000, various
investors will provide $900,000, Kickstarter will be used to generate marketing buzz and an
additional $100,000, and finally a business loan will cover the rest of the $1,043,244 of
expenses. The company will post an estimated operating profit of $4,466,396 in its first year, and
will quickly be able to grow soon within its second year. By the end of year 3, Meal in a Minute
is estimated to reach a profit of $17,204,748 which gives it the ability to easily expand to other
markets.
II. PROBLEM
A. Rationale: Throughout the day, many commuters lack the necessary time to visit some
type of restaurant in order to eat their meals. These commuters still need to be able to eat
a quality meal on-the-go, so Meal in a Minute will provide a simple yet effective solution
by providing travelers with fresh, warm meals at a fair price to provide a minimal
disturbance in their busy schedules.
B. Research: Data from Chicago Transit Authority shows that rail ridership has been
increasing over the last 14 years. This along with the fact that Americans have much
busier schedules creates a perfect
opportunity for Meal in a Minute to
satisfy the needs of millions of
commuters every year on Chicago
Transit Authority stations alone. Furthermore, 20.5% work greater than the 40 hour
work week that used to be the standard for American society. The convenience of a
quick meal that can be eaten on the move helps the consumer make up some of this lost
time and use it more efficiently doing other tasks.
C. Opportunity: Due to this combination of factors, we will be able to capitalize on the
needs of modern commuters and provide a service that will benefit them greatly. With
rising numbers of riders, each with less available time, the ability to provide a meal on
the go will thrive because their need is also rising. With Meal in a Minute coverage of
key stops within the Chicago metro system we will be able to satisfy this need to the
greatest possible number of commuters.
III. CUSTOMER SEGMENTS
A. Target Customers: Within the 229.12 million yearly Chicago Transit Authority Metro
riders, we are targeting working class commuters, students, and riders with limited time.
With this wide reach we will be able to accommodate men and women ages eighteen to
fifty who use the metro system on a regular basis. These consumers will be limited in the
amount of time they can have, and will benefit from a quality meal at an affordable price.
V. SOLUTIONS
A. Convenience: Meal in a Minute offers a high level of convenience among consumers
within their busy schedules. The only time consumers have to spend is waiting in line,
and waiting for the microwave within the machine to warm up the food. Another added
benefit is that the machine will be placed in their daily commute, so they will not have to
leave the office for lunch and travel to a restaurant to purchase their meal, thus increasing
their efficiency during the day. This allows the smallest possible disturbance to their
busy schedule compared to the alternative of buying lunch daily from a traditional
restaurant.
B. Quality Meals: Meal in a Minute will only offer high quality, nutritious meals within
our vending machines. Therefore, we will not be compensating for a lower price point,
and consumers will still be happy that they are getting a great meal for a great price.
There will also be a variety of meals that will be supplied at wholesale prices by Sams
Club Business Center.
C. Affordability: Meal in a Minute offers our service for a low price. So in combination
with the previous benefits/features, Meal in a Minute will compete with fast food chains
for consumers due to the affordability of its high quality meals. Consumers will not feel
like they are buying a cheaper product because the quality of the meal will be obvious to
them.
VI. CHANNELS
A. Pathways To Customers: Meal in a Minute will partner with Chicago Transit Authority,
run ads in the Chicagoland area, and gather reporter interest in this startup to generate
buzz around the new service available on the rail system. Also many banners and signs
will be placed along railway stations that have our machines so that commuters will be
fully aware of where the machine is. Chicago Transit Authority trains will also be
outfitted with ads to inform commuters of Meal in a Minute and increase their likelihood
of trying our service.
$5.00
Working Days:
261
50,000
50%
$32,625,000
$652.5
Stations:
Trains:
Total:
1 Year
$700,800
$325,440
$1,026,240
B. Distribution Costs: Distribution costs will cover the cost of warehousing, and the cost of
transporting the food to various machines and stocking them. Costs will also be the forklift rental
at the chosen facility near the city, and the cost of refrigerated trucks. Finally, the trucks must be
fueled with gasoline daily and the price reflects.
Costs:
Refrigerated Storage:
1 Year $10,000
Forklifts:
Gas:
Trucks:
Total
$2,000
$33,280
$87,000
$132,280
C. Human Resources Cost: To be the most cost efficient, we will have eight total drivers
working four simultaneous shifts of 6 hours. These drivers will be part-time employed and run
the same routes every day,
Costs:
Drivers:
Total:
1 Year
$200,000
$200,000
D. Additional Costs: Additional costs to startup Meal in a Minute are costs for the first
month of stock and the cost of purchasing the vending machines. Also, the cost of renting space
for the vending machines must be included. To keep the vending machines stocked with fresh
food, only one month of supply will be kept at a time, however the cost on the chart is listed in a
one years supply. (1 month = $480,924)
Costs:
Rental Space:
Stock:
Vending Machines:
Total:
1 Year
$262,800
$5,771,088
$381,000
$1,124,724
E. Total Cost/Year: This is the projected total cost of running Meal in a Minute for its first
year (excluding food costs after one month). Including all startup costs, also added is the
interest/business loan needed to cover the lack of investment funds. According to the
Revenue/Cost data and the Gross Margin, Meal in a Minute is predicted to report a gross profit
of $4,566,396 in its first year and quickly grow within its second and third years.
Costs:
Marketing:
Interest:
Total:
1 Year:
$1,026,240
$132,280
$60,000
$2,543,244
$200,000
$1,124,724
X. COMPETITIVE ADVANTAGE
A. EatWave: EatWave is a company that was attempting something similar. Was is used
because it seems the company has been inactive since 2012 and seems to have lacked a vision or
clear goal. On the other hand, Meal in a Minute has a clear strategy; To provide high quality
meals at an affordable cost with a minimal commitment of time. Also, EatWave only
manufactured and distributed vending machines in a franchise like system, Meal in a Minute is
going to own each machine that we operate and will stock it with products that are relevant to
our customer base.
XI. CONCLUSION
A. Summary: Meal in a Minute is a vending startup based in Chicago that will sell high
quality meals at an affordable cost to thousands of commuters in and out of Chicago
everyday. Our primary goal is to provide a meal quickly, in order for the consumer to
devote the least possible time so that they be as efficient as they can to finish their job
and return to their families. Furthermore, these meals will be highly nutritious, fresh, and
be offered in a variety so that it may replace most lunch options for many commuters.
B. Financing: To conclude the finances of Meal in a Minute, Meal in a Minute will need a
total capital of $2,543,244 in order to start up. This money will be acquired through the
founders personal investments, outside investments, Kickstarter crowdfunding, and a business
loan. The first year will net a profit of $4,466,396 after all other startup fees are covered, so that
Meal in a Minute will be able to grow quickly soon into its second year in operation. Meal in a
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Minute is estimated to report an operating profit of $20,098,782 at the end of its third fiscal year,
leaving it ready to expand.
C. Expansions: Once a foothold is established in Chicago, Meal in a Minute can work on
expanding to other markets. New York, Los Angeles, Houston, Miami, are all prime domestic
metropolitan markets for Meal in a Minute to expand into after its profitability after Year 3.
These markets will be easier to sell once the concept spreads from Chicago, and it would not
seem so strange anymore. Furthermore, Meal in a Minute can also easily expand to international
metropolitan markets by adding ethnic foods to the mix, while also retaining some from the
United States to form a foreign meal experience to this quick meal. Vending machines can also
be added to hospitals as a cheaper alternative to the cafeteria for families of ill who want to stay
by their side. Meal in a Minute can also expand to college campuses and provide students a
cheap meal with their strict budgets. The possibilities are nearly endless with the expansion of
Meal in a Minute.
XII. BIBLIOGRAPHY:
"CTA Facts at a Glance." Transit Chicago. CTA, Web.
29 Jan. 2016.
"CTA Ridership Statistics & Reports." Transit Chicago. CTA, Web.
29 Jan. 2016.
Shabner, Dean. "Americans Work More Than Anyone." ABC News. ABC News Network, Web.
29 Jan. 2016.
"53-3031 Driver/Sales Workers." U.S. Bureau of Labor Statistics. U.S.
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