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The Homemade Kitchen

In: Business and Management

Submitted By ecr777
Words 1520
Pages 7
THE HOMEMADE KITCHEN is a new start-up. The idea arose after several years of retail experience in other ventures, most notably music distribution. 
The homemade kitchen is a different genre of business, although the template for retail success is in place. The Homemade kitchen is one that can attract a variety of people, all age groups, all genders. The demographics of the consumer is vast & after research it was decided that this was a venture.

The homemade kitchen emerged to meet a need of the food market in periods of less accessibility. No matter the time that the consumer wants to satisfy his hunger, he now has a quality homemade option.
The Homemade Kitchen is a new concept of quality fast food. Any time you want there will be always one of our magic food trailers near from the customers. It consists in a mobile fast food restaurant unit. Instead of a store, we have several wheels sustaining our delicious food. The Parisians that were in doubt if Paris has or not a place to eat after midnight and early in the morningwill be now our #1 fan. The Homemade Kitchen will be located in the most crowded places of Paris and near from non-stop commercial places and universities. Our target is to be Paris #1 option to eat healthy fast food and offer a comfortable place for our customers with friendly service. After clubs, parties, shows, in the middle of work time, the lights of our trailers will be on!
Since we saw it is almost impossible to find a place to eat or buy drinks late at night, we wondered why not opening a place that fills this needs at an affordable price with high quality products.
At the same time we are constructing a strong brand, we will give to our customers an new option of eating healthy food if they want. Our Kitchen promise to deliver a great tasting experience and will provide the best natural ingredients for this. Our business is to provide friendly service of quality food at affordable prices for everyone.
It’s a hard task nowadays to provide affordable prices for our customers, thinking of it, The Homemade Kitchen find a solution to run out from expensive rents in Paris, we was born on wheels and we can go anywhere. Our trailers will be another important point of difference and our unmistakable characteristic. The red roof surround by lights will call the attention of who passes by.

Costumer target
Our costumer target would be ‘’Young adults’’, from 18-25 years old who often wants to buy some snacks, food and drinks late during the night or early in the morning and cannot find any store open.
Who are those young adults? * They have, in general, between 18 and 25 years old * They are University students or young employees * They spend a lot of time with their friends * They like to go out during the weekends * They like to meet their friends during the week to have some snacks, a few drinks and to talk * They can be tourists: as the tourists usually don’t know the opening and closing time of stores or don’t know Paris really well, we would be always near the touristic spots so that they could have our products everywhere and every time * As they are mostly students, they don’t want to spend much. We will offer good prices that can fit their budget. “Formules” or “menus” will be offered: they can buy sandwichs, snacks and drinks together so that they will have a better price *

Our strategy is to catch those young adults when they: * Leave a night club and want to have some food before going home to sleep * Before going to a pub, bar or nightclub so that they can have sandwiches, snacks and drinks that are less expensive than the place they’re heading to * Go to a crowded point, such as Quartier Latin, Nearby Famous museums, Bercy Village and Levallois (business center) that they can profit from our prices, 24 hour availability and cool-young atmosphere * Just want to eat fast and delicious homemade sandwiches and snacks, at any time during the day or during the night

How much are the costumers willing to pay? * Our snacks, sandwiches and drinks will fit the budget of young people: it won’t offer 1 euro sandwiches like McDonald’s, but we will offer pretty affordable prices * Our menu will cost the customers from 7 to 19 euros.

Our menu: * Homemade sandwiches such as: hot dogs, baguette sandwiches, hamburgers, wraps * Different types of salads with homemade sauces. * Drinks: sodas, juices, beer, wine, cocktails with and without alcohol * Snacks: chips, nachos, nuts, cheese, different kinks of breads * Desserts: brownies, ice cream, cookies, cakes * We will use the best ingredients and we will offer many healthy sandwiches

The Traillers
The trailers will have an innovative design order to call the attention of the young people, create a “cool” atmosphere and become a trendy trailer brand. The lighting, the way the products are going to be set and the music, such as ambience music will create an atmosphere that will involve the public and at the same time, make them feel as comfortable as they were in home, even that it would be for 15 minutes or less.

Budget (Euro):
The costs related to our project to start up for each of the 3 trailers are:
Oven: 760 (x 3)
Microwave: 186 (x 3)
Fridge: 650 (x 3)
Stove: 140 (x 3)
Total Equipment: 5.208 euros

3 employees per trailer, which has a wage per hour of 10.2 euros (each). Others which includes materials for cooking the food, delivering, packaging, services, decoration for trailer and other implements needed: 400 (x 3)

These are the costs related to start up the business, they are around 3720 euros per trailer. After the first month of work, the costs change due to there are cost that are for fixed assets and others are necessary each month:

Trailer rented: 1150/ month
Food materials: 1100/ month
Beverages: 1600/ month
Others: 400/ month

Wage for employee/ Working Schedule (2 employees per trailer per shift of 8 hours)
*values per trailer. ** 1 hour: 10,20 euros.

Monday: 12:00 a.m. -> 8:00 p.m. 163,20 euros (81,60/ employee)
Tuesday: 12:00 a.m. -> 8:00 p.m. 163,20 euros (81,60/ employee)
Wednesday: 12:00 a.m. -> 8:00 p.m. 163,20 euros (81,60/ employee)
*Thursday: 12:00 a.m. -> 12:00 p.m. 244,80 euros (61,20/ employee)
**Friday: 24 hours 489,60 euros (81,60/ employee)
Saturday: 24 hours 489,60 euros (81,60/ employee)
Sunday: 24 hours 489,60 euros (81,60/ employee)
TOTAL / week (per trailer): 2.203,20 euros/ week

*Thursday: 2 shifts. 6 hours/each. 2 employees per shift.
** Friday, Saturday and Sunday: 4 shifts. 6 hours/each. 2 employees per shift
Monthly needed minimum to run the business:

TOTAL/ month (per trailer): 8.812,80 euros (3 trailers) = 26.438,40 euros.

Operational Budget: 26. 438, 40 euros.
+ 500 euros (water, light, gas) x 3 = 1.500,00
+ 1000 euros (Advertising) total
+ 3.450 (renting costs/ 3 trailers)
+ 3.300 (Food warehouse/ 3 trailers)
+ 4.800 (Beverages/ 3 trailers)

+ 5.208 euros (accessories).

Profits estimate: We differentiate three times when speaking about sells. Calm, normal and strong moments. We hope to sell 15 menus per hour on each trailer in calm moments, 35 menus per hour in normal moments and 60 menus per hour in strong moments, all of them with an average price of 13 euros. This converts in approximately average of 33 menus per hour and revenues of 433* euros per hour for each trailer. As the trailer is open 24 hours (Friday, Saturday and Sunday), 8 hours on Sunday, Tuesday and Wednesday and 12 hours on Thursday. Estimated Gross Profit Margin:
Monday, Tuesday, Wednesday = 10. 392 euros
Thursday = 5.196 euros
Friday, Saturday, Sunday = 31.176 euros
TOTAL Profits: 46. 764 euros

Our initial investment is a total of 40.488,40 euros for the 3 trailers which will be recovered very easily within the first month. It is important to take into account here that revenues are not taken as profit as first, instead they will be reinvested for expanding and taking more places in Paris with others trailers.

Approximately, after 3 months we will expand our business and it must be clear, at the beginning, that we will rent the trailers. That way, the business will not be controlled by stakeholders, it will be controlled by our partners and in the future, we will strategically construct our business, preventing it wouldn’t run out of our hands. This will increase the fixed and variable costs but also increase the revenues. The acquisition of the trailers is a mission for the final of our first year in the market, it will depend how our customers will adapt to this innovative business.
“We are homemade, homecare business”.

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