Baker_Street_Bakery.pdf

Transcript

1. THE BAKER STREET BAKERY
   Business Plan
   

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2. EXECUTIVE SUMMARY
   Vision
   To create a healthy fast food rival to Pret-a-manger which:
   1. provides a greater level of choice and service
   2. is student friendly and large enough to accommodate groups studying or chilling
   3. gives staff the ability to quickly turn their feedback, and that of customers, into products and
   services
   The first location will be based in the tourist and student hotspot of Baker Street.
   Initial concept will be a themed quasi-food court, with more ‘shops’ added over time to increase growth
   About us
   My name is Rayhan Rafiq Omar. I have intended on opening this bakery
   for 8 years, however quickly indentified that there were many skills, such
   as diplomacy, which I needed to learn before being responsible for
   people working for me.
   My wife Sofi has 10 years relevant experience of managing and
   motivating teams of customer-facing staff . She will manage the day-to-
   day operations, while I take care of all the back office functions of
   purchasing, marketing, finance and administration.
   The cashflow from this business would be used to expand on further
   business ideas, so we can safely innovate without having to worry about
   raising finance. We will always look for partners, as having oversight can
   only be a good thing, and the knowledge and skills that others can bring
   will always be more useful than our knowledge alone.
   Summary business plan
   The business will be initially focused on a quasi-food court securing the
   local lunch-time trade and subsequently branching out to an evening
   offering and morning deliveries to local residents. The store would be
   named simply Baker Street, with The Baker Street Bakery and The Bakery
   Street Night Cafe being the initial product brands.
   We intend on refining the operation at this site and mirroring the
   concept in other Central London locations.
   The ability to leverage the delivery distribution network to deliver
   ancillary products would only come from customer feedback and contact
   referrals. We want local residents to trust and value us to the extent that
   they ask us for other products that we could source from local third party
   suppliers.
   I would like to expand the business to further stores; the first on Baker
   Street and the second in Knightsbridge. The reason being is both areas
   have a tight distribution of high net worth families living in mansion
   blocks, which would be easy to deliver to; and both are tourist hotspots
   

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3. LOCATION
   101-103 Baker Street, London W1
   A1/A2 premises
   Former Halifax bank branch
   Ground floor: 1,895 sq ft
   Basement: 2,079 sq ft
   Total: 3,974 sq ft
   Corner site on York Street and
   Baker Street
   Established lunch-time rush
   20,000 students within a 5
   minute walk
   Local residents all live in
   mansion blocks
   Rates 2009/10: £46,317.50pa
   Why this location? - Baker Street has the benefit of an established lunch crowd - all
   outlets, both express food and restaurant, in the area are bursting with excess
   demand from students, tourists, local office workers and local residents.
   The key to this location is the unique density of wealthy families living in mansion
   blocks. The core business unique selling point is daily, reliable delivery to the
   residents of all these mansion blocks in Marylebone, Mayfair and the areas
   surrounding Regent's Park. First thing in the morning, we will deliver bread, pastries,
   milk, juice and even sandwiches for the kids; and it's all mansion blocks, so it'll be
   easy to deliver
   

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4. CURRENT GROUND FLOOR
   101-103 Baker Street, London W1
   xyz
   xyz
   

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5. CURRENT BASEMENT
   

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6. THE BAKERY LOOK AND FEEL
   Look
   Upstairs 1800s London Street theme
   ▪ To get the feeling as though you are walking down a 1800s lit up street
   ▪ Walk way - Round pebbles path – As flat as possible to make it easy for
   heels; logo in floor in stone, or as a drain cover
   ▪ Ceiling painted as though its the sky
   ▪ Lamp posts
   ▪ Cast iron railing
   ▪ Counters styled as separate shop units - Grocers, Deli, Bakery etc – on
   casters to be pushed back behind roll-down drapes with the closed shop
   painted on
   ▪ Wall opposite to shops is painted on as a mural – shops on the opposite side
   of the street/ street going into the distance/ or London square type green
   ▪ Tables & chairs - wrought iron / heavy wooden table tops
   ▪ Penny farthings as seats – free meal next time if you can sit and eat your
   whole meal this time
   Downstairs
   ▪ Comfortable seating
   ▪ Wi-Fi and power points for Laptops
   Initial capital expenditure
   IT and Equipment: 4 tills x £2000 + 4 computers x £500 + website
   creation x £10,000 = £20,000
   Kitchen equipment: £30,000
   Furniture and customer area furnishings: £150,000 (need to get
   estimates)
   Total - £200,000
   

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7. Shops/Service areas
   Doors
   Ice cream service window
   1
   1
   2
   3
   4
   5
   6
   2
   3
   4
   5
   6
   Ice cream parlour
   Bakers
   Deli
   Pizzeria / Rolls
   Sandwich shop (ready-made)
   Coffee shop
   7
   7 Sweet shop
   8
   8 Florist
   Proposal 3 - Ground Floor
   Mural
   

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8. Proposed Basement Floor
   

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9. LIST OF CAPITAL WORKS
   ▪ Remove all stud and non-load-bearing walls – ground and basement
   ▪ Expose M&E – remove suspended ceiling entirely
   ▪ Lighting - assess how much of existing light fixtures, wiring and control systems to keep or replace
   ▪ Seating areas – quick eat areas, less quick and quiet eating upstairs; and comfortable seating downstairs
   ▪ Preparation areas, counters, and baking area/kitchen
   ▪ Storage area/cold room and fridges – open fridges for grab-and-go products and closed for overnight
   storage of ingredients
   ▪ Pay terminals and tills
   ▪ Painting and finishing – walls, ceilings, wood and metalwork, and mural
   ▪ Frontage – open up main door to be wider – same width side door to be opened up
   ▪ Window treatment
   ▪ Signage and lighting
   ▪ Staircase – to be moved to free up space
   ▪ Pillars to be exposed and dressed
   

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10. FINANCIALS – P&L
    Baker Street Bakery Lunch Sales 5 days a week
    Profit & Loss Customers per day Ave. Spend Total pa
    300 £3.00 £982,800
    Income 2010/11* 2011/12 2012/13 400 £3.00 £1,310,400
    Take out sales 964,758 1,310,400 1,638,000 500 £3.00 £1,638,000
    Eat in sales 46,833 65,520 81,900 300 £4.00 £1,310,400
    Delivery sales 83,200 166,400 400 £4.00 £1,747,200
    Total Sales Income 1,011,591 1,459,120 1,886,300 500 £4.00 £2,184,000
    Expenditure
    Rent 120,000 120,000 120,000 Delivery Sales average 3 deliveries per week
    Rates 46,318 46,318 46,318 Households per week Ave. Spend Total pa
    Utilities 12,000 13,200 14,520 200 £8.00 £83,200
    Staff 223,265 267,918 321,502 400 £8.00 £166,400
    Staff bonuses 22,327 53,584 64,300 600 £8.00 £249,600
    Marketing (including printing) 27,000 40,000 60,000 800 £8.00 £332,800
    Back Office (Accounts, HR, PAYE) 1,000 1,030 1,061 500 £12.00 £312,000
    Cleaning 18,000 18,540 19,096 1,000 £12.00 £624,000
    Insurance/Security/Maintenance 3,000 3,150 3,308 2,000 £12.00 £1,248,000
    Professional Services (Legal, Audit) 10,000 10,000 10,000 5,000 £12.00 £3,120,000
    Depreciation (initial fit out + IT equip) 30,000 30,000 30,000
    Food and packaging 354,057 510,692 660,205 Staff - incl. employment costs
    Tax (VAT @ 17.5%) 6,975 9,758 12,198 Chefs 1 x £12ph £30,751
    Repairs and seasonal decorations 5,000 5,000 5,000 Supervisors 1 x £9ph £33,546
    Tills and computers 4,000 6,000 6,000 Casual staff 10 x £6ph £132,088
    Bank charges 18,209 26,264 33,953 Manager £24k + NI £26,880
    £223,265
    Total Expenditure 901,150 1,161,454 1,407,461
    Days Opening Day cost
    EBITDA 140,441 327,666 508,839 Mon 06:00 - 16:00 £715
    Tax 32,028 86,323 138,863 Tue 06:00 - 16:00 £715
    Profit/Loss 78,413 211,343 339,976 Wed 06:00 - 16:00 £715
    Thu 06:00 - 16:00 £715
    *Assuming full year's trading Fri 06:00 - 16:00 £715
    Sat 08:00 - 16:00 £538
    Sun 10:00 - 16:00 £181
    £4,294
    Amount in GBP
    

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11. FINANCIALS – YEAR 1 CASHFLOW
    Income T0 Y1 M1 Y1 M2 Y1 M3 Y1 M4 Y1 M5 Y1 M6 Y1 M7 Y1 M8 Y1 M9 Y1 M10 Y1 M11 Y1 M12
    Take out sales 47,775 57,330 63,700 71,663 76,440 81,900 88,200 95,550 95,550 95,550 95,550 95,550
    Eat in sales 2,389 2,867 3,185 3,372 3,583 3,822 4,095 4,410 4,778 4,778 4,778 4,778
    Delivery sales
    Total Sales Income 0 50,164 60,197 66,885 75,035 80,023 85,722 92,295 99,960 100,328 100,328 100,328 100,328
    Expenditure
    Rent 30,000 30,000 30,000 30,000
    Rates 3,860 3,860 3,860 3,860 3,860 3,860 3,860 3,860 3,860 3,860 3,860 3,860
    Utilities 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
    Staff 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445 20,445
    Staff bonuses 2,044 2,044 2,044 2,044 2,044 2,044 2,044 2,044 2,044 2,044 2,044 2,044
    Marketing (including printing) 9,000 9,000 818 818 818 818 818 818 818 818 818 818 818
    Back Office (Accounts, HR, PAYE) 1,000 0 0 0 0 0 0 0 0 0 0 0
    Cleaning 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
    Insurance/Security/Maintenance 250 250 250 250 250 250 250 250 250 250 250 250
    Professional Services (Legal, Audit) 5,000 0 0 0 0 0 0 0 0 0 0 0 5000
    Depreciation (initial fit out + IT equip) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
    Food and packaging 17,557 21,069 23,410 26,262 28,008 30,003 32,303 34,986 35,115 35,115 35,115 35,115
    Tax (VAT @ 17.5%) 0 0 0 1477 0 0 1886 0 0 2324 0 0
    Repairs and seasonal decorations 417 417 417 417 417 417 417 417 417 417 417 417
    Tills and computers 333 333 333 333 333 333 333 333 333 333 333 333
    Bank charges 903 1,084 1,204 1,351 1,440 1,543 1,661 1,799 1,806 1,806 1,806 1,806
    Repayment of initial loan (300,000) 0 0 0 0 0 0 0 0 50,000 0 0 50,000
    Capital works and £30k deposit 150,000 0 0 0 0 0 0 0 0 0 0 0 0
    Total expenditure 164,000 90,809 55,319 57,781 92,257 62,616 64,713 99,018 69,952 120,088 102,412 70,088 125,088
    Income - expenditure -164,000 -40,645 4,877 9,104 -17,222 17,408 21,009 -6,723 30,008 -19,760 -2,085 30,240 -24,760
    Cash Brought Forward 300,000 136,000 95,355 100,232 109,336 92,114 109,521 130,530 123,808 153,815 134,055 131,971 162,211
    Month closing bank balance 136,000 95,355 100,232 109,336 92,114 109,521 130,530 123,808 153,815 134,055 131,971 162,211 137,450
    

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12. FINANCIALS - CONTINGENCY
    Income Year 1 Breakeven
    Take out sales 520,000 408,220
    Eat in sales 0
    Delivery sales
    Total Sales Income 520,000 408,220
    Expenditure
    Rent 120,000 120,000
    Rates 46,318 46,318
    Utilities 12,000 12,000
    Staff 41,374 37,128 8 casual + manager
    Staff bonuses 0 0
    Marketing 5,000 5,000
    Back Office (Accounts, HR, PAYE) 1,000 1,000
    Cleaning 0 0
    Insurance/Security/Maintenance 3,000 3,000
    Professional Services (Legal, Audit) 0 0
    Depreciation (initial fit out + IT equip) 25,000 25,000
    Food and packaging 182,000 142,877
    Tax (VAT @ 17.5%) 4,550 4,550
    Tills and computers 4,000 4,000
    Bank charges 9,360 7,348
    Total Expenditure 453,601 408,220 0
    EBITDA 91,399 25,000 0
    Profit/Loss 66,399 0 0
    per week per month per annum
    Fixed cost 4,302 18,641 223,691
    Sandwiches Coffee Customers spending £5
    Breakeven per week equals 2,530 1,955 860
    Breakeven per day equals 361 279 123
    Contingency
    

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13. PRODUCTS AND SERVICES
    Overview
    I want to provide a service that people trust, employees love to provide and is a stable and consistent net contributor to the local community.
    ▪ The idea was conceived 8 years ago, whilst at university, as there was no suitable venue to relax and study. I didn't want a business that was the same as many others;
    that thought process brought up the notion of delivering to the mansion blocks in the surrounding area
    ▪ The initial idea was to deliver bread, milk, sandwiches and any other convenience item to the local homes and businesses within a mile radius of the bakery.
    — All the deliveries would be packaged beautifully, without adding excessively to waste. Customers will have the flexibility to amend or cancel their orders right up
    to the very last minute. We will look to start this service once the lunchtime offering is profitable. Provide simple options for regular delivery – www.graze.com
    ▪ At lunchtime, there will be a selection of fresh, quick and convenient items for lunch. Preparation will be in full display, to give customers confidence in our cleanliness
    ▪ In the evening, we will transform the venue through lighting, music and a more relaxed food menu (mint tea et al)
    ▪ There will be quiet areas for students to spread out their books and study, with free, reliable wifi to complete the service
    ▪ Hiring out the downstairs in the evening for functions
    Specifics
    ▪ Morning - bread, pastries, sandwiches;
    ▪ Mid-morning to lunch - sandwiches and salads;
    ▪ Lunch - Sandwiches, deli counter, pizza, soups and fresh juices, milkshakes and smoothies [research: gourmetsandwich.co.uk and The Grocer];
    ▪ Late afternoon - cheap sandwich and salad clearout OR cheaper coffee and wifi to attract after university crowd (high profile marketing to local student population);
    Evening - Change of scenery and lighting to attract young, local crowd offering drinks such as mint tea, milkshakes and smoothies, space to meet and study and possibly
    live sports events for the alcohol-free crowd (with the downstairs, we have the flexibility to cater to two different crowds. Tap water is free, drink to your heart's
    content - sign next to a drinking water tap. Large jars of water with cucumbers, lemons and limes, watermelon - tasty and aesthetically pleasing
    ▪ Delivery: bread, milk, pastries, juices, sandwiches, packed lunches, newspapers and other value-added products
    ▪ Provide a high quality and reliable service that the local residents trust
    ▪ Flexibility will be key, allowing last minute changes to orders, custom requests and the most polite, helpful staff that anyone could ever encounter.
    ▪ The goods have to always arrive beautifully wrapped as it they were a present
    ▪ Once the delivery service reaches critical mass, we can offer higher value products and extend our product range to include :
    — flowers - rent out space on ground floor to a florist, and deliver their products for a delivery charge
    — cat and dog treats
    — 3rd party specialist products - brands like The Grocer and Jamie Oliver (not competing with supermarkets – just providing easy to cook home meals)
    — hotel-style continental breakfast (with a vase and flower, toast in keep-warm packets),
    

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14. PRODUCTS AND SERVICES
    Initial shop offerings
    Ice creams, sweets in jars, cakes
    Juices, milkshakes, smoothies, fresh homemade lemonade (fizzy and not)
    Bakery – breads, pastries
    Pizzeria and doughmaster style wraps
    Deli – sandwiches, salads
    Quick stop sandwich (and salad) shop
    Coffee shop – teas, coffees, hot drinks
    Florist and edible arrangements
    Tills at front, so shops can concentrate on serving
    Ingredients weekly orders
    Kitchen preparation/clean routine
    Staff recruitment and training schedule - waiting/customer service
    Health and safety/ food safety certification
    Furniture/Decoration - booths bells bulbs
    Till/CRM/ordering system
    Menu design and uniforms
    Sauces – Nando’s style pick up sauces
    Hand basin
    Place mats
    Make your own pizza experience - Pizza and a movie
    Projection screen
    Mini etch a sketch
    Black board for comments
    Short trees in big plant pots out side.
    Till system - prompts for customer grouping tag with transaction so we can track
    what the buying patterns are for tourists, workers and students, and see who
    spends more with us and where we need to adapt our offering and efforts
    Ice tea and traditional lemonade sold for cheap in the summer to drag sales
    through the roof
    Mobile units to gain exposure - selling drinks and desserts
    Cobbled path leading into the shop from outside. Possibly flanked by LEDs
    Use elements from the California Gurls music video
    Grazingfood.com
    

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15. STAFFING POLICY AND TRAINING
    Valuing our staff so they in turn value our customers
    Staff members will work in a tight-knit team, the core value being
    spreading the wealth: we share the profit with those who help
    generate it.
    Bonuses
    Bonuses will be structured to:
    Encourage sign up of new delivery customers
    Based on customer feedback - staff will be encouraged to seek
    customer feedback - bonuses will be paid on quantity of customer
    comments and quality of staff service (as commented on by
    customers)
    Bonuses will be capped on everything except the new delivery
    customers metric
    Baker Street Bakery KPIs for monitoring performance
    Staff retention strategy
    The business will be employing approximately 14 people from the
    outset. There will be a transparent process for progression, so that
    there is healthy competition for team members to progress to
    more senior roles and find activities within the business where
    they excel.
    The staff incentive structure will be three-fold
    Financial - bonuses
    Value input - bottom-up culture
    Progression - promotion opportunities
    

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16. HOW WILL WE MARKET THE BAKERY
    The site on Baker Street, more than anything, is for prominent
    marketing advantage. The large corner site at 101 Baker Street
    provides a healthy expanse of frontage to highlight our delivery
    service to the local area.
    Environmental care commitment - packaging, waste reduction
    initiatives
    cleaning the local area
    Community involvement - teaching local kids basic cooking and
    hygiene
    feeding the homeless
    Target audience –
    Understand them
    What will appeal to them –
    Theme –
    Products –
    Display of products –
    Packaging –
    Price –
    Routine – who, how, when, where (cleaning, rubbish, )
    Reward –
    Promotion –
    Ongoing research – when, how much, what, what more
    Idea/feedback submission –
    Feedback implementation and visibility of results –
    Special events – 3 a side, radio controlled rally, baby time,
    Marketing and packaging to be funny and informative
    To support BSB subscription: For all Facebook and Google's power,
    neither of them has a direct financial relationship with consumers.
    Though clearly they will move in that direction.
    Marketing strategy
    Launch – performers, stilts, magicians
    Leaflet distribution
    Radio stations and newspaper PR
    Free delivery to local businesses
    Students' Union advertising
    Nurseries and schools
    Mansion block porters - build a rapport
    Members clubs
    Local business partnerships and discounts
    Initially - door-to-door business sandwich and soup sales - purely as a
    marketing ploy
    Bloomberg/ picadillycircus type large screen in bakery window, to create
    a landmark
    Leaflets - The Baker St Bakery delivers here
    

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17. FUTURE DEVELOPMENT
    Expansion will be through further shops that provide a ‘niche’ offering. The only generic, common offering will be the lunchtime products.
    The idea is to cater in a unique manner for:
    • Local residents (who live busy family lives in mansion blocks)
    • Students (who need a space to study and socialise)
    • Tourists
    Expansion shops
    All must be small and ideally portable:
    Locksmith
    Florist
    Edible arrangements
    The Grocer
    Jamie Oliver’s Recipease
    Hot dog stand
    Mama's hampers - ready-made picnics
    Edible arrangements alongside florist.
    Basement
    Downstairs Mirror maze theme.
    ·Entrance - Big heavy black velvet curtains
    ·Mirror maze that lead to separate booths
    ·Booths deco inline with mirrors - comfortable seating
    ·Power points - Laptops / Mobile phone / Wifi
    ·Plain black ceilings and flooring
    ·Staff to tend to customers from the moment the walk down
    stairs; they will also seat them unless customers identify seating
    themselves
    ·Buzzer / Light that goes off in kitchen if assistance is needed at
    booths (include booth numbering)
    

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18. FUTURE DEVELOPMENT (2)
    — Basement
    — Delivery
    — Evening
    — Extra shops
    — Year 2 – second shop
    — Year 3 – cut hole in ground floor and build balcony and street and
    more shops at basement level
    

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19. APPENDIX
    

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20. Current Ground Floor
    663cm
    504cm
    366cm
    617cm
    1126cm
    274cm
    Front door - 160cm – 285cm
    500cm
    237cm
    224cm
    1047cm
    Height - 301cm
    Height to false - 246cm
    504cm
    

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21. Shops/Service areas
    Doors
    Ice cream service window
    1
    1
    2
    3
    4
    5
    6
    2
    3
    4
    5
    6
    Ice cream parlour
    Bakers
    Deli
    Pizzeria / Rolls
    Sandwich shop (ready-made)
    Coffee shop
    7
    7 Sweet shop
    Proposal 1 - Ground Floor
    Mural
    

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22. Shops/Service areas
    Doors
    Ice cream service window
    1
    2
    3
    4
    5
    6
    1
    2
    3
    4
    5
    6
    Ice cream parlour
    Bakers
    Deli
    Pizzeria / Rolls
    Sandwich shop (ready-made)
    Coffee shop
    7
    7 Sweet shop
    Proposal 2 - Ground Floor
    Mural
    

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23. Shops/Service areas
    Doors
    Ice cream service window
    1
    2
    3
    4
    5
    6
    1
    2
    3
    4
    5
    6
    Ice cream parlour
    Bakers
    Deli
    Pizzeria / Rolls
    Sandwich shop (ready-made)
    Coffee shop
    7
    7 Sweet shop
    8
    8 Florist
    Proposal 4 - Ground Floor
    Mural
    

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24. Current Basement Floor
    

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