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Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
Vitality Investor Slides
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Vitality Investor Slides

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  • 1. n. the capacity to live, grow & developKrystal Daibes. Melissa Grelli. Galen Mittermann. Jonathan Riddle.
  • 2. Sweetgreen M Street-Washington DC M Street-Washington DC Dupont-Washington DC Bethesda, MD
  • 3. Vitality Team thsstreng product development marketing/sales branding graphic design finance gaps team will be consulting with real estate, nutrition, and food experts from the industry
  • 4. V i · T A L · I ·T Y • Who We Are •The mission: deliver healthy meals using 100%natural ingredients to people on the go whileimplementing sustainable business practices • What We Do •Provide an alternative to traditional, greasy QSRs • Why We Matter•Because there is untapped market potential and away for Vitality to differentiate itself with uniqueproduct offerings • Who We Matter To •The health conscious and time sensitive consumersas well as families
  • 5. Vitality’s Value Proposition“For the health-conscious consumer who wants a fast healthy and nutritious meal, Vitality isa quick service restaurant that provides healthy, natural and sustainable products. Unlikeother quick service restaurants that have processed and unhealthy meals, our mealsimprove health and come from natural, locally-sourced farms for only a slightly higherpremium.” Total investor funds are forecasted at $340,000
  • 6. Vitality: A Healthy Solution to live, grow & develop 3 Seeds to Success Operations Location Menu
  • 7. Operations Serve as many customers as possible & drive sales 1) Volume based business 2) High transaction speed 3) Continually work on process improvement: -ordering -food prep -packaging -final order -assembly
  • 8. Operations Continued -Vitality’s limited menu reduce costs and help control quality -Interactive touch screen will help differentiate Vitality as well as allow our drive thru to thrive -Technology platforms that allow customers to order online or through an Iphone/ Blackberry application
  • 9. Marketing Mix: Place/LocationOpen first location in Portland, Oregon with future expansion plans for this local market Strive For: Customer convenience Easily accessible by foot & car High traffic areaIn-Store Presence: -Eco Friendly approach to in store design -Decor and Flooring--recycled goods (unique dining experience) -Drive-thru with a user friendly kiosk (Nextep & MRI Touch Screen) for our drive-thru operations
  • 10. Marketing Mix: Product/MenuDedicated to serving great tasting “healthy” meals with 100% natural ingredients Attributes: fresh, natural, and organic. Mintel: 49% of adults surveyed reported “freshness” as the most important decision when ordering food, followed by fat, calories, and natural non- processed ingredients Oregon customer questionnaire “Quality” was ranked as extremely important Speed, Price, and Convenience were ranked as important
  • 11. Marketing Mix: Product/Menu Align with: fresh, natural, sustainable Product Development Strategy Packaging -Two Main Product Lines: -Biodegradable containers and utensils 1. Salads (wraps) 2. Greek Yogurt (fruit & -Nutrition endorsed and nut add-ins) transparency with regards to ingredients and nutritional -Allow for customized orders content -Menu names will be distinct to -Future opportunities to OR augment the product and Vitality revenue streams Leverage freshness & customizable options
  • 12. i·Tal·i·T y n. the capacity to live, grow, and develop The Vitals The Essentials Crescent Caesar $5 The Oregonian $7Romaine lettuce, chicken, croutons, parmesan Romaine lettuce with chicken, mandarin oranges,cheese, and caesar dressing. carrots, won tons, and sesame ginger dressing. The Cobb $6 Sweet Grape $7Romaine lettuce with avocado, turkey bacon, Spinach, grapes, chicken, candied walnuts, andgrape tomatoes, chicken, and honey dijon and red wine dressing.dressing. Track Town Special* Prefontaine Classic $81. Choose: spinach, arugula, romaine Romaine lettuce and arugula, black beans, chick2. Up to 5 add-ins ($1): black beans, chick peas, peas, beets, broccoli, avocado, egg, almonds,broccoli, beets, edamame, avocado, cucumber, chicken, and olive oil.egg, corn, cherry tomatoes, carrots cucumber,mandarin oranges, almonds, candied walnuts,crispy wontons, croutons, feta cheese, goat Blazin’ Bachelor $8cheese Romaine lettuce, avocado, black beans, cherry3. Add Protein ($1) chicken, tofu, tuna, turkey tomatoes, cucumber, almonds, chicken, andbacon ranch dressing.4. Balsamic vinaigrette, red wine, caesar, ranch,olive oil, sesame ginger, honey dijon *All salads can be made into wraps *starts at $6 ·greek yo greek yogurt. Choose 2: Almonds, Granola, Candied Walnuts, Apples, Grapes, Strawberries, Pear, and honey $3 Bottled Water $1 Soy Milk $2 Fuze Drinks $2
  • 13. Marketing Mix: Promotions Traditional Media Social Media Principle news outlets Facebook Advertisements in local Twitter papers TV & radio ads Company Blog Tactics -Utilize social media to communicate special promos and incentivize people to eat Vitality -All menu offerings endorsed by certified nutritionists -Frequent Vitality card that has 10 unfilled trees on one side and a health or sustainable fact on the other side -Annual online contest in May (‘Sustainable Month’) in which customers submit and name their salad creation
  • 14. Marketing Mix: Price -Value pricing strategy -Affordability is a key factor, but we expect to sell at a premium to traditional QSRs [Mintel: $4.77-QSR (2009)] -Food costs will not exceed 35% of the sales price -Suppliers include: local farmers for produce and UMIF (natural foods distributor) for protein items and yogurt -Estimate Vitality salad ranging from $6-9, depending on the complexity and ingredients and yogurt $3 with the option of two fruit or nut add-ins
  • 15. Vitality’s Financials ·      Initial Costs o    First Phase: personally financed o    Phase 2: $124,558 o    Phase 3: $214,127 ·         Assumptions o    23 customers/avg. hour sales = $496,800 initial sales o    1400 sq. ft. location at premium price of $48/foot plus $18/ foot ·         Return o    IRR of 31%, plus position to franchise o    Year 5 earnings of over $160,000 with above 10x industry average P/E
  • 16. Forecasted Sales
  • 17. Grow With Vitality.
  • 18. Vitality Milestones Prove Raise Add Expand Break ourconcept Q2 Y1 capital Q3 Y1 new location Y2 Y3 our client base Y2 Even
  • 19. V i · T A L · I ·T YWe life fast lives & want fast food but we also want to eat healthy. America’s Fast Food Problem Vitality’s Solution Red Ocean Blue Green Ocean -Approx. 500,000 restaurants in US -Healthy QSR (imagine Cafe Yumm with a combined revenue $400 billion drive-thru) -Highly fragmented (full and limited -Offer a diverse menu with health at the service (QSR and fast casuals) core of our products -200,000 QSRs combined annual revenue -Core target audience: parents and $120 billion health-conscious consumers on the go -Current QSR establishments provide -Emphasis on lunch sales as this unhealthy food to patrons accounts for the majority of QSR sales
  • 20. Hoover: US Restaurant Industry Overviewhttp://www.hoovers.com/fast-food-and-quickservice-restaurants/--ID__269--/free-ind-fr-profile-basic.xhtml 500,000 restaurants Highly fragmented (FSR and limited service combined annual revenue $400 billion (QSR and Fast Casuals) National Restaurant Association (NRA) Approximately 200,000 QSRs with reports: “A typical fast food restaurant combined annual revenue $120 billion generates $670,000 annually and a franchised one, $1 to $ 2 million
  • 21. IBIS-Fast Food Restaurants Key Statisticshttp://www.ibisworld.com.libproxy.uoregon.edu/industry/executivesummary.aspx?indid=1676 KEY FACTS The top 5 players account for 41% of industry revenue: - McDonalds Corporation   12.7% - Yum! Brands, Inc.   9.7% - Wendys/Arbys Group, Inc.   6.6% - Starbucks Corporation   5.9% - Burger King Corporation   5.1%
  • 22. Mintel Reports: QSR Usage & Frequencyhttp://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393467/display/id=477525#hit1Base: 1,884 internet-using adults aged 18+ who have used a restaurant in the past year, May 2009“In the past three months, how many times have you eaten at, picked up food from, or have had food delivered from each of the following restaurants? Restaurant Usage % Frequency # McDonalds 66% 3.5 Subway 54% 1.9 Burger King 46% 1.4 Wendy’s 43% 1.4 KFC 46% 1.1
  • 23. Mintel Reports-Ingredient Attributes “Healthy Meal”http://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393496/display/id=460714#hit1Base: 1,726 adults February 2009 “When it comes to choosing a ‘healthy meal’ at a restaurant, which, if any, of the following are the most important to you in your ordering decision?” Fresh Ingredients 49% Less Fat 39% More Vegetables 29% Lower Calories 26% Made with natural, non-processed 23% ingredients Less Sodium 20% Smaller Portions 17% Less Sugar 11% More Fruit 10%
  • 24. Portland, ORhttp://www.cookinglight.com/healthy-living/travel/cooking-light-best-cities-portland-oregon-00400000001413/ Cooking Light Best Cities Award Portland earned the second spot on Cooking Light top 20 cities due to its: ‘acres of parkland per capita; percent of population that reports to be in good or better health; percent of population that exercised in the last month; and its walkability.’
  • 25. Mintel Reports: Pricinghttp://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393467/display/id=477501?select_section=477504Average price per entrée, by restaurant segment- 2008 and 2009 Cuisine Type Q1 2008 Q1 2009 $ $ QSR 4.06 4.77 Sandwich 5.75 5.45 Fast Casual 5.86 6.09
  • 26. QSR Magazine-Top Drive-Thrushttp://www.qsrmagazine.com/articles/news/story.phtml?id=9413&microsite=drive_thruThrus Based on: speed of service, vehicles processed, accuracy, and customer service Average speed of service (2008) 131 seconds Top Performers Chic-Fil-A 3.54 vehicles in line 96.4% accurate Taco Bell Del Taco Wendy’s 1.77 vehicles processed with an avg. time of 134 seconds
  • 27. NE MilestonesProven Our Concept: Q2 Y1We believe that we will be able to prove our design and concept by the beginning of the 2nd quarter of year 1. At this point NEwill have successfully entered the market by opening its first store in Portland, Oregon.Raise Capital: Q3 Y1By the beginning of the 3rd quarter of year 1, we will have access to $300,000.Expanding our Client base: Y2-Y3During years 2 and 3 we will strengthen our business model. We intend to increase our client base by adding more locations,improve our product offerings, and establish good relationships with current and potential clients.Achieving Breakeven: Y2We intend to break even by year 2.Exit Strategy:As a startup company we must take into consideration a viable exit strategy for NE. If our we are unsuccessful, we will sell ourbusiness to another competitor looking to sell healthy fast food offerings
  • 28. Defending the Brand Customers are trading down from fast casuals to quick service Current QSRs are trying to offer more nutritious and premium meals Vitality Brand -First mover advantage -Current competitors in the marketplace will need to redefine their image and brand -New entrants will simply be unauthentic NE imitators

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