Baker_Street_Bakery.pdf

Transcript

1. THE BAKER STREET BAKERY Business Plan
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
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
4. CURRENT GROUND FLOOR 101-103 Baker Street, London W1 xyz xyz
5. CURRENT BASEMENT
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
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
8. Proposed Basement Floor
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
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
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
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
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),
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
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
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
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)
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
19. APPENDIX
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
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
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
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
24. Current Basement Floor