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Healthy  &  Hearty  Foods  By:  Jeff  Smith,  Kais  Yusuf,  Jessie  Baicy              

April  19  

08  Fall  

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Table  of  Contents  1.0  EXECUTIVE  SUMMARY  ....................................................................................................................  3  

MISSION  ..............................................................................................................................................  3  

OBJECTIVES  ..........................................................................................................................................  4  

KEYS  TO  SUCCESS  .................................................................................................................................  4  

3.0  SERVICES  ........................................................................................................................................  4  

4.0  MARKET  ANALYSIS  SUMMARY  .......................................................................................................  5  

5.0  STRATEGY  AND  IMPLEMENTATION  SUMMARY  ...............................................................................  5  

6.0  BUSINESS  MANAGEMENT  ...............................................................................................................  5  

7.0  MANAGEMENT  SUMMARY  .............................................................................................................  6  

8.0  FINANCIAL  PLAN  .............................................................................................................................  6  MONTHLY  INCOMES  .....................................................................................................................................  6  PROFIT  MARGIN  ...........................................................................................................................................  7  START-­‐UP  COST  ...........................................................................................................................................  8  H  &  H  KEY  COSTS  SUMMARY  .........................................................................................................................  9  

PERT  CHART  .......................................................................................................................................  10  

SWOT  ANALYSIS  .................................................................................................................................  10  

RISKS  .................................................................................................................................................  11  

REWARDS  ..........................................................................................................................................  11    

 

 

 

 

 

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1.0  Executive  Summary  Healthy and Hearty is a gourmet food delivery company based in Singapore

that caters to our customers every need and want. Healthy and Hearty is the first food delivery company in Singapore that combines at your door convenience, with gourmet, healthy, affordable food. Our mission is to provide the customer with healthy and nutritious food that is cost efficient and convenient to our customer.

Healthy and Hearty will become a very successful company because it’s the first business to combine gourmet, healthy food with the convenience of it being right at their doorstep. Singapore is the perfect place to have a business like Healthy and Hearty because it’s a very small island with a huge population of about 5 million, because we aren’t rooted to one area we will be able to potentially sell to a lot of the Singaporean population.

Because Healthy and Hearty is a very unique business we have a varied target market, four main segments of our target market are: Big wealthy families that don’t have enough time to cook food, older Singaporeans who cannot cook for themselves and have a good retirement fund, people that have food allergies and need to have their food specially made for them, and Singaporeans or expats that want to lose weight.

We can reach these different target markets by four different marketing strategies. To reach the big wealthy families we can advertise on the SAS phone book as well as other expat schools phone book. To reach the elder generation who cannot cook for themselves we believe that we will have to place advertisements in the newspapers; this is because the elderly population mostly reads the newspaper everyday. To reach the people that have food allergies we believe that we should advertise in health magazines in which mom’s that are protective of their son/daughter read. To reach people that want to lose weight Healthy and Hearty will choose to place advertisements in Health magazines or dieting websites.

Mission Our mission is to Devote our time and interest, to supply healthy and nutritious food, that is cost efficient and convenient to the customer, leaving them fully satisfied and committed to return.

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Objectives

The objectives of Healthy and Hearty business are:

1. To provide high quality, healthy, gourmet food that will make customers order again and become loyal to our brand

2. To provide speedy service so that customers won’t be hesitant to order online

3. To market our company so that more people will try out our product 4. Create a reputation of good tasting food combined with fast service 5. Maintain affordable food costs so customers won’t feel we’re getting too

expensive

Keys  to  Success  

1. Very unique company that combines the best of many different delivery companies (McDonalds, Grocery, Jenny Craig)

2. High quality gourmet food 3. Large target market 4. Great location (Singapore) small island with a high population so we can

potentially serve to a very high population 5. Customers will be able to make their own meal making them feel like

they’re in charge 6. Customers will be able to order a weekly meal package (3 meals a day for

7 days) 7. Customers who want to lose weight can also have a weekly meal package

with meals that will help lose weight 8. Members deal will also be available for dedicated customers 9. Top of the line chefs 10. Speedy delivery

3.0  Services  

Healthy and Hearty will have different menus based on the customer’s choice: one menu is for people who enjoy food and eat a high calorie diet. The food will still be natural and healthy it just will have more preferences for a different type of consumer. The other menu is for the more health conscious consumer, which includes foods that are proven to be healthy. In these two choices customers will

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then make another choice: Western or Asian food. Depending on their choices they will be directed to their preferred foods. There will also be another menu, which will be specifically for people who have special needs such as vegetarians, people who want to diet and people that have allergies. Our company will have specific menus for these types of people.

4.0  Market  Analysis  Summary  

Singapore doesn’t have a delivery company that has all the components that Healthy and Hearty does. Grocery delivery services can’t compete with us because they’re too expensive as well as the food isn’t cooked so there is an added inconvenience. Fast food delivery doesn’t compete with us because they’re food is unhealthy as well as Hawker stalls. Thus, there is a great need for a gourmet food delivery service in Singapore. We will get our customers by;

1. Advertisements on magazines and newspapers promoting our product 2. Advertisements on diet sites as well as health magazines 3. YouTube advertisements as well as Facebook advertisements 4. Word of mouth, customers will tell their friends about our products 5. Birthday and anniversary mailing promotions which will garner customer loyalty 6. Garner a reputation of being a great tasting food distributor as well as a speedy

delivery

5.0  Strategy  and  Implementation  Summary    

Our focus is high-income families as well as large retirement fund elderly couples. Our research says that there are about 269,568 people are expats that make more than $200,000 and we can assume that a lot of these people have families, and this does not include the local population. Singapore is an aging population with not many births, which is why it is especially important to cater to the elderly. We focus on these two groups because they will be the most likely to be loyal customers and are willing to spend the extra bucks for convenience and good food.

6.0  Business  Management   In order to keep the business running at its projected performance rate, as well as keep the business’ food quality, logistics, and growth at key performance levels. We will constantly be running weekly finances, logistics, and quality overviews. This will be done by having someone keep track of our finances, as well as look at ways to keep our cost down. We will also have someone taking weekly surveys of our customers, and their experience and satisfaction with our customers.  

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7.0  Management  Summary  

Jeff Smith: CEO (Acting on Accounting/Finances)

Kais: VP/ General Manager of Marketing & Logistics

Jessie Baicy: VP/ General Manager of Operations

8.0  Financial  Plan  

Monthly  Incomes  

Our company will begin at a deficit of about $200,000 in the first month. When our company begins to pick up steam and grow it still loses money but not as much as the first month. In the second month we lose basically the same amount of money as the first but a little less. By the fourteenth month we will begin to make a profit. After the 27th month we will have paid back the previous months and now be truly

CEO/Founder  AcounKng/Finance    

VP/General  Manager  of  MarkeKng    

MarkeKng   IT   Sales  

VP/  General  Manager  of  OperaKons  

Food  OperaKons  

ExecuKve  Chef  

Souse  Chef  

Chef  De  ParKe  

Procurement   LogisKcs  

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making a profit. Although it takes a long time to make our profit the potential in our business is huge. We will make sums of $300,000 a month in the later months, and if our brand name grows I believe we will be able to sell to most Singaporeans.

 

Profit  Margin  

In our first year our profit margins for this business will be negative because we will just be starting out and most people will not know about our company, also, we will have bought all of our equipment for our company. We first get positive profit margins in the 12th month of our business. Our profit margin will ‘break even’ on the 21st month or after 773,441 meals have been sold. Our profit margins in the later months might seem unrealistic because of how high they are however, in these later months we will be running at a high capacity rate in making and delivering food in bulk. This will maximize our profits because the more customers we have the more overlapping orders, and

-­‐$200,000.00    

-­‐$100,000.00    

 $-­‐        

 $100,000.00    

 $200,000.00    

 $300,000.00    

 $400,000.00    

Jan   Mar   May   Jul   Sep   Nov   Jan   Mar   May   Jul   Sep   Nov   Jan   Mar   May   Jul   Sep   Nov  

Monthly  Incomes  

30%

40%

30%

H  &  H  Net  Profit  Dividends  Founders   Investors   Company  Return  

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delivery locations we will receive, which means as our company gets older we become more efficient because our chefs and delivery men in turn become more efficient. The Pie Chart shows how the Yearly Profits of H&H will be divided up.

Start-­‐up  Cost  

Our total start up cost for the first year is about $2,005,000. This covers our key starting cost such as equipment, food licensing, and website cost. This is also the total amount we need from our investors.

Cost  Type   Cost  Total  Start  up  Cost  1st  year   $                                336,120.00  

Total  First  year  loss   $                        1,161,278.33  Working  Capital  required   $                                507,601.67  Total  Capital  Required   $                        2,005,000.00  

-­‐15.00%  

-­‐10.00%  

-­‐5.00%  

0.00%  

5.00%  

10.00%  

15.00%  

20.00%  

25.00%  

30.00%  

Jan   Mar  May   Jul   Sep   Nov   Jan   Mar  May   Jul   Sep   Nov   Jan   Mar  May   Jul   Sep   Nov  

Profit  Margin  

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H  &  H  Key  Costs  Summary    

Year  1   Costs   Year  2   Costs  2   Year  3   Costs  3  

Single  Meal  Purchase                                    13,959     Single  Meal  Purchase                                    77,283     Single  Meal  Purchase  

                                   107,452    

Weekly  Plan  Purchase                                        6,980     Weekly  Plan  Purchase                                    38,641     Weekly  Plan  Purchase  

                                       53,726    

Revenue   $1,702,220.48   Revenue   $9,423,836.88   Revenue   $13,102,657.11  

           Variable  Cost    

Variable  Cost    

Variable  Cost    Cost  of  Ingredients   $680,888.19   Cost  of  Ingredients   $3,769,534.75   Cost  of  Ingredients   $5,241,062.84  

Cost  of  Packaging   $40,133.54   Cost  of  Packaging   $222,187.40   Cost  of  Packaging   $308,923.56  

Cost  of  Delivery   $255,333.07   Cost  of  Delivery   $942,383.69   Cost  of  Delivery   $1,310,265.71  

Gross  Profit   $725,865.67   Gross  Profit   $4,489,731.05   Gross  Profit   $6,242,404.99  

           Fixed  Cost    

Fixed  Cost    

Fixed  Cost    Chef  Salaries   $594,000.00   Chef  Salaries   $1,188,000.00   Chef  Salaries   $1,188,000.00  

Other  Salaries   $564,000.00   Other  Salaries   $564,000.00   Other  Salaries   $564,000.00  

Marketing   $500,000.00   Marketing   $500,000.00   Marketing   $500,000.00  

Remaining  Cost*   $229,144.00   Remaining  Cost*   $229,144.00   Remaining  Cost*   $229,144.00  

Net  Profit   -­‐$1,161,278.33   Net  Profit   $2,008,587.05   Net  Profit   $3,761,260.99  

           *Remaining  cost  include  plant,  IT  cost,  Profesional  fees,  insurance,  bank  fees,    R  &  D,    &  depreciation  cost  (kitchen  equipment,  packaging  machine,  website,  food  license)  

The Chart above is our three year financial projections, and costs. This chart does not have all of the details of our full financial statement but it still includes all of the cost to give you an idea of where you money is being invested.

 

24%  

1%  9%  

21%  20%  

17%  

8%  H&H  1st  Yr.  Costs  Breakdown  of  $2,870,000  

Cost  of  Ingredients  

Cost  of  Packaging  

Cost  of  Delivery  

Chef  Salaries  

Other  Salaries  

MarkeKng  

Remaining  Cost*  

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Pert  Chart  

SWOT  Analysis  Strengths • Only company of its type in Singapore

• Nation wide servicing capabilites • Gourmet food- ready to eat • Convinience • Food will be healthy and taste good

Weaknesses • Price to start up the company is big • Large amount of employees • Dependen on imports for ingredients • No brand name

Opportunities • Huge potential market • Able to serve to a large number of Singaporean Population

• Be first company of its type

Threats • Maids that cook all the food • Food doesn’t taste good • Delivery service isn’t reliable • People aren’t willing to pay our prices • Customers don’t know about our company • Customers don’t trust the quality of our food and

won’t buy • Customers choose fast food over us

 

customer  orders  food  at  website  or  

callcenter  

informaKon  goes  to  the  kitchen  

chefs  cook  the  order  

sends  it  to  the  packaging  center  

food  is  then  air-­‐sealed  and  packaged  

gathered  and  put  in  the  transport  area  

food  is  picked  up  by  delivery  service  

Van  is  given  adress  and  order  

food  arrives  at  the  customers  home  

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Risks    

Like any investment, there are always risks. However, typically speaking the bigger the risk the bigger the reward, and although we wouldn’t classify H&H as an extremely risky investment, we would say it’s still risky. However, with risks comes rewards, and investing in H & H provides you the opportunity for a very good reward, or in better terms a great load of money.

Below are the main risks of H&H:

H&H risks:

• Can’t get Projected Customers • Can’t Produce good tasting Quality Food • Logistics Challenges

Rewards    

Below are a chart and two graphs which show the payoff or reward that the H&H investment has for you, the investors. We also provide an optional exit strategy for the investors & the founders, which would be the sale of the company to an interested buyer. This buyer could be anyone from a similar company that wants’ to expand their revenues into Singapore, to a food or drink distributor that wants’ to tie their products into this profitable company. And considering our annual profits and profit margins, we believe our company would be a very attractive acquisition target, especially since it would be the only company of its type in a completely new market.

Investment Required: $2,005,000

 Dividend   Annual  ROI  

Year  1   0   0  Year  2   $                              803,434.82   40%  Year  3   $                        1,504,504.40   75%  Year  4   $                        1,643,408.33   82%  Year  5   $                        1,643,408.33   82%  

Total  Dividend   $                        5,130,244.54   2.6x  Investment  Sale  of  Co.  after  year  5   $                        6,573,633.31   3x  the  annual  profit-­‐  

Total  Return   $                  11,703,877.84   -­‐  Total  ROI   5.8x  Investment  

 

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*  Chart  above  is  based  off  the  average  interest  percentages  of  each  Investment  

 

*Chart  above  is  based  off  a  5  year  compound  interest  of  the  previous  percentages,  and  include  H&H’s  exit  strategy  profits  

3%

5%

5%

8%

29%

0%   5%   10%   15%   20%   25%   30%  

BANK  

LOAN  

BOND  

STOCK  

H&H  INVEST  

INVESTMENT  INTEREST  

$2.47

$2.82

$2.82

$3.44

$11.70

 $0.00      $1.00      $2.00      $3.00      $4.00      $5.00      $6.00      $7.00      $8.00      $9.00      $10.00      $11.00    

BANK  

LOAN  

BOND  

STOCK  

H&H  INVEST  

Millions  

5-­‐YEAR  INVESTMENT  PROFIT