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V ISION , M ISSION

AND

P HILOSOPHY

The FAVE vision is to change the way people eat. With a simple core philosophy of good food that just happens to be meat-free, the company strives to achieve the mission to bring mass-market accessibility and acceptance to the genre of quick, wholesome and delicious meat-free cuisine.

O BJECTIVES : S HORT T ERM


1. Secure private investor financing in the amount of $1,000,000 to open a flagship fast casual food service outlet target opening date 1st quarter 2013 2. Bring the flagship restaurant outlet to profitability within five months, producing increased month-over-month returns and margins to prove financial model for additional outlets 3. Establish short-term management succession plan for first phase expansion (three restaurants) 4. Establish corporate guidelines for opening standards, operational procedures, brand standards, and product specifications. Book to be established to address unforeseen opportunities that arise for quicker than anticipated growth

O BJECTIVES : L ONG T ERM


1. Secure three additional rounds of private investment totaling $2,850,000 to finance the growth of 17 additional restaurants over five years 2. Reconfigure supply chain and establish national partners for distribution of proprietary products 3. Prove multi-market viability including stores in the Southern California area and/or select locations on the East Coast of the US

K EYS

TO

S UCCESS

FAVE has an internal core set of drivers that make it unique. The following list represents the controllable keys to success of the concept: The Food: a dynamic mix of taste-first proprietary food designed to be premium to competitors in the local fast casual category. Quality and taste has the ability to covert omnivores and impress non-vegetarians

The Service: a strategically designed environment and set of offerings to effectively deliver key service periods of lunch and dinner The Message: a sunny, summery communication platform that strategically avoids the typically negative vegetarian baggage including animal rights and the environment The Theatre: a natural, handcrafted soda program set to become a beverage barista experience The Supply: a partner network of distributors, manufacturers and consultants ready to deliver an impossible-to-copy menu of great food that just happens to be meat-free The Finances: strict and rigorous cost controls and financial management The Management: strong industry experience, complimentary skill sets, large social networks and passion to drive the concept long-term

FAVE relies on an external set of opportunity drivers that provide a platform for significant growth. The following list represents the market forces key to success of the concept: Health: the individual need to combat increasingly sedentary lifestyles with a healthy, low cholesterol, low fat, high vegetable diet Category: explosive growth in the fast casual restaurant market in North America Trend: media, television, and pop culture support for increasing vegetable consumption, the vegetarian shift and the vegan movement Politics: continued pressure from national, provincial and municipal government organizations to recommend, develop and fund healthier lifestyle options to offset ballooning health care costs

C OMPANY L OCATIONS

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F ACILITIES

The first three FAVE restaurants are targeted to open within the urban centre of Vancouver, British Columbia. The targeted neighbourhoods include Kitsilano (4th Avenue), the North East Robson Street Corridor, South Granville, South Cambie Corridor, Yaletown and Gastown.

International Expansion
One will note the business model of FAVE has been designed to be scalable. From the vision to the supply chain, from the product offering to the brand, a mass-market, crosscultural direction has been deliberately planned. Noting the successes of contemporary meat-free fast casual competitors in localized markets around the world, including Singapore, Los Angeles, Boston, and Toronto, FAVE has an increased potential for US and international growth.

As vegetarianism is particularly strong in a number of countries, FAVE is looking toward the horizon to target the following countries for international expansion, after the US market: UK, The Netherlands, Belgium, Germany, Australia and India. The Indian market alone is estimated to have more than 400,000,000 people who do not eat meat.

C OMPANY G ROWTH S TRATEGY


First Phase Growth and Financing Strategy
From the moment the first FAVE opens its doors, three strategic focal points for growth will be delegated to committed talent within the organization. The operational integrity of FAVE will be handed to Jeff Osborne, the financial integrity of FAVE will be handed to Joseph Cooke and the emotional integrity of FAVE will be handed to Jordan Kallman. Jeffs area of responsibility will ensure that operational standards are being met, product delivery is perfect and the guest experience is always exceeding expectations. Jeff will run the facility, managing relationships with suppliers, vendors, employees and guests. Joseph will manage the finances of FAVE. He will ensure that Jeffs scope is within budget and that financial standards-of-performance and being met. Joseph will coordinate the relationships with investors and the board. Jordan will develop the metrics by which emotional connections with the market and FAVE can be analyzed. This data is essential in growth decisions that will be made in future. Joseph will work to achieve budgeted results and a profitable operation by month six of operations. Should this be achieved, FAVE will undergo a second round of financing whereby the group of investors will have first right of refusal. This second round of investment will finance the opening of the second, third and fourth FAVE. The second FAVE is targeted to open one calendar year after the first FAVE opens. The third FAVE is targeted to open four months after the second FAVE opens. The fourth FAVE is targeted to open at the end of year two. Throughout Phase One, Jordan will be responsible for managing communication strategies, online guest feedback and all contractors responsible for the consumer engagement with the FAVE brand. This will include social media partners, traditional public relations, and the converter agent-based promotional program discussed in later sections of this plan. Opportunities for brand and business development, including new strategic relationships, partnerships and real estate location scouting will also fall under Jordans sphere of responsibility.

Allocation of FAVE Profits


FAVE, at the discretion of the Board of Directors will reinvest all of its profits after dividends during the first phase of growth. Reinvestment areas will be additional restaurants, employee development (from training to retention programs and financial incentives), product development, marketing programs, distribution and supply-chain efficiencies.

Second Phase Growth and Financing Strategy


The first four FAVE outlets are targeted to all open within 2 years of the first day of operations of the first outlet. These outlets are all targeted to open in Vancouver. During Year 2, a third round of financing will commence whereby the shareholders will be given the first right of refusal. This third round of financing will be set for $1.35 Million. This third round of financing will fund the expansion of FAVE into the Southern California market. FAVE will also be in a position to reinvest earnings to contribute to the expansion. FAVE will initiate a fourth round of financing in year three and year four to raise the final $1.5 Million that will propel the company to build a total of 17 outlets within five years of operations. At the end of year five, FAVE is targeting to have a presence in the West and East of Canada, as well as the US, via west coast USA.

The Option of Franchising vs. Financing


The co-founders are not targeting a franchising model for growth. As customer experience and detailed delivery to ensure conversion in the marketplace, a corporately owned business model for the outlets is desired. This model allows for greater control over quality of service, product delivery and guest experience.

Investors Exit Option


FAVE will be built to attract an acquisition from a larger, and publically traded quickserve or fast food company. The industry average price to earnings ratio among publically traded comparable companies is 22 times. FAVE will position itself to be traded at 7.5 (See Investor Model section for further analysis) times. As multiple rounds of financing will occur, this will also provide investors with multiple options for them to pull their investments out.

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