130429 biberatica business plan
Upcoming SlideShare
Loading in...5
×
 

130429 biberatica business plan

on

  • 726 views

Biberatica is a new start up project, aimed at revolutionizing the customer experience in restaurants. It's about providing customers with a personal and "wearable" waiter, able to learn about your ...

Biberatica is a new start up project, aimed at revolutionizing the customer experience in restaurants. It's about providing customers with a personal and "wearable" waiter, able to learn about your taste and food attitude. It will help customers to live a food experience being tailored on their needs.

Statistics

Views

Total Views
726
Views on SlideShare
724
Embed Views
2

Actions

Likes
0
Downloads
23
Comments
0

1 Embed 2

http://www.linkedin.com 2

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

130429 biberatica business plan 130429 biberatica business plan Document Transcript

  • Your personal waiter Business Plan 2013.04.29
  • Index SUMMARY ....................................................................................................................................................................4 THE VISION: A PERSONAL VALET ON FOOD, A SOCIAL EXPERIENCE......................................................5 STATE OF THE ART ...................................................................................................................................................................... 5 THE BUSINESS MODEL ............................................................................................................................................7 THE ROLE OF PARTNERS ............................................................................................................................................................ 8 Nutritional choice-driven associations .............................................................................................................................8 Opinion makers ............................................................................................................................................................................8 Phone/OS Makers, retailers ...................................................................................................................................................8 Other services ...............................................................................................................................................................................8 WHO ........................................................................................................................................................................................... 10 WHAT ........................................................................................................................................................................................ 11 HOW ........................................................................................................................................................................................... 11 SEGMENTATION ....................................................................................................................................................................... 11 POTENTIAL TARGET ................................................................................................................................................................ 13 INTERNAL ANALYSIS ............................................................................................................................................ 15 EXTERNAL ANALYSIS ............................................................................................................................................ 16 MAIN DRIVERS IN RESTAURANT INDUSTRY ......................................................................................................................... 16 The location ................................................................................................................................................................................ 16 The Menu ..................................................................................................................................................................................... 16 Price Range ................................................................................................................................................................................. 16 Community Demographics and Labour Pool .............................................................................................................. 16 The Competition ....................................................................................................................................................................... 17 Promotional Ideas ................................................................................................................................................................... 17 RESTAURANT PEST ANALYSIS .............................................................................................................................................. 17 Political Factors........................................................................................................................................................................ 17 Economic Factors..................................................................................................................................................................... 17 Social Factors ............................................................................................................................................................................ 17 Technological Factors ........................................................................................................................................................... 17 UPCOMING MARKET TRENDS ................................................................................................................................................. 18 Related to treatment of animals ....................................................................................................................................... 18 Healthy Snacking ..................................................................................................................................................................... 18 Tea Beverages ........................................................................................................................................................................... 18 Mediterranean Foods ............................................................................................................................................................. 19 COMPETITORS .......................................................................................................................................................................... 19 FIVE FORCES ANALYSIS ........................................................................................................................................................... 21 POTENTIAL ENTRANTS – HIGH THREAT ............................................................................................................................... 21 BUYER POWER – HIGH THREAT ............................................................................................................................................. 22 SUPPLIER POWER – HIGH THREAT ........................................................................................................................................ 22 THREAT OF SUBSTITUTES- LOW THREAT............................................................................................................................. 22 INDUSTRY RIVALRY – MEDIUM THREAT ............................................................................................................................... 23 SWOT ANALYSIS ..................................................................................................................................................... 24 STRENGTHS ............................................................................................................................................................................... 24 WEAKNESSES ............................................................................................................................................................................ 24 OPPORTUNITIES ....................................................................................................................................................................... 24 THREATS ................................................................................................................................................................................... 24 A MARKET PENETRATION AND GROWTH STRATEGY .............................................................................. 26 COMMERCIAL ROAD MAP ........................................................................................................................................................ 26 Market segments ...................................................................................................................................................................... 26 Geography ................................................................................................................................................................................... 27 Niche Markets............................................................................................................................................................................ 28 Food allergies ............................................................................................................................................................................ 28 Food intolerances .................................................................................................................................................................... 30 Auto-immune disease ............................................................................................................................................................. 30 Halal/Kosher Diets .................................................................................................................................................................. 31 Vegetarianism ........................................................................................................................................................................... 32
  • Potential market base............................................................................................................................................................ 32 Potential Italian market base ............................................................................................................................................ 34 ECONOMICS .............................................................................................................................................................. 36 THE TEAM ................................................................................................................................................................. 39
  • Summary Everyday, millions of people worldwide are made unable to fully enjoy a satisfying customer experience at the restaurant, one which is compatible with their taste and needs. Helping people live the best food experience, wherever they are and whenever they want is our mission. For example, every time someone puts his/her traveller’ shoes on, one of the biggest threats to the best traveling experience comes from language. Imagine yourself travel in a foreign country, and sit in a local restaurant. Everything looks delicious, but you cannot understand a bit of what is written on the menu. You just take a leap of faith, trying to do what the locals do, but … too bad, faith won’t be of any help when you’ll find out that you are actually allergic to the delicious food you are already eating. That might sound harsh or exaggerate, but the risk is quite real and millions of people face it every day because of different reasons: coeliac disease, food intolerances or allergies, and – why not – deliberate religious or lifestyle choices as being a Muslim, Jewish or simply vegan or on a diet. Customers’ needs are a precious source of information to restaurateurs. And leaving things to fate might cause huge economic and legal inconveniences. For final consumers the pain is about time waste to understand what the restaurateurs can offer and if that suits his/her needs and taste. This is not only related to language; the pain relates to the possibility that the chosen restaurant fits personal requirements of the consumer in terms of taste, health, extra services. How can consumers find the closest restaurant which better suits their needs? From the restaurateurs’ point of view, the opportunity is about taking advantage of their possibility to differentiate in the highly competitive market of food by means of specialized and more customer tailored services. Biberatica will allow consumers stop gesticulating to waiters and try to understand the menu. In 2013, the menu will understand you. Biberatica will disrupt the concept of menu, turning it into a personal valet that speaks your language and knows your needs. It never goes on vacation and will always be one fingertip away. Biberatica is a desktop and mobile platform meant to solve all of the aforementioned problems and many more, while reducing management and marketing costs for restaurateurs. It runs on off-the-shelf hardware, does not require any huge or long term investment and will be available through easy and safe digital download. The only requirement for the restaurateurs is to have a fine working Mac or PC and a wireless network, while their guests would only need their own smartphone or tablet. Biberatica needs an initial seed of about €200k for the deployment of the basic version and set up of the needed operational structure. Further, it will need for more €300k of investments to reach maturity in terms of more features and scalable operations, compatibly with the estimated growth of customers base.
  • The Vision: a personal valet on food, a social experience Biberatica’s vision is to create a marketplace meant to meet the demand for custom-tailored, high level food experiences for the heterogeneous panorama of restaurant industry. Revenues are generated based on a subscription model. As its predecessor (the good old menu), Biberatica will be free for every hungry or thirsty customer. Restaurateurs are the only ones in need of a license, which will be comfortably affordable and renewable even on a monthly basis. Thanks to Biberatica, restaurateurs can pretty much cut all of their costs for menu prints, paying instruments and marketing efforts. This will give them a competitive advantage over their competitors. Biberatica will be available for download from the official website and the most famous online “app stores”. Biberatica is looking forward to serve the best food experience ever. This idea will give restaurateurs the advantage of providing their customers with a completely innovative and custom tailored service. Clients will be enabled geo-localize their most compatible restaurants and to enjoy a satisfying food experience supported by a personal valet. Food is culture and providing people with this powerful instrument will differentiate Biberatica in the market of services for the restaurant industry. The goal for Biberatica is to impose as leader in this market, progressively integrating services meant to enrich the consumer experience, making it social. State of the art There has been an increase in how the restaurant industry invests on technology to improve their customer experience. Different players are now playing and willing to play into the market and some of them have been able to gain highly respectful customers (as Hilton for Conceptic Ltd.). This trend knows no boundaries of market segmentation, as demonstrated by the efforts made by companies like Hilton and McDonald’s, but also from significantly smaller “fusion” restaurants. McDonald’s has already started the deployment of a new tablet-based plat-form in one of their stores in Virginia Beach (Virginia, U.S.A.) and independent developers are pushing tablet based solutions as replacements for the wide popular Points of Sale1. The in-vestments those developers and their customers are making, clearly set the stage for a variety of solutions that aim to help the food industry increase their sales and margins. But there is still no sign of a market leader, nor of a “good enough” solution to a problem that has never been precisely identified. It is our belief that this might be happening because no player pinpointed the real problem of this market yet. In Italy, the industry of commercial restaurants makes about €48.8bln in revenues and has more than 228,000 restaurants.2 During the past 30 years, demand has raised at a pace of 4% per year. Restaurants have more than 50% of market share, followed by 30% of “pizzerie”. The smallest average expense per consumer is over 30€. We believe we can help profit figures rise thanks to 1 Mendiola, José. “McDonald's pone a disposición de susclientesiPads en uno de susrestaurantes”. Engadget.com. Web. October 10, 2012. Last visit: October 20, 2012. Matyszcyk, Chris. “McDonald’s offers free use of iPads”. CNet.com. Web. October 19, 2011. Last visit: October 20, 2012 Shapiro, Carolyn. “Have an iPad with yourmeal. Butit’snot to go.” hamptonroads.com / PilotOnLine.com. Web. October 7, 2012. Last visit: October 20, 2012. 2 Martirano, Manuela; Valdameri, Emilio. “La ristorazione in Italia: andamento del mercato” Università IULM. August 1, 2008. Web (SlideShare). Last visit: October 2012. ANON, “Il gran mondo del mangiare bene” Il Sole 24 Ore.Web. September 1, 2011. Last visit: October 20, 2012.
  • the savings Biberatica will induce both for small and global customers. This under-lines how much Biberatica aims to serve as a tool to increase effectiveness, productivity and efficiency of restaurants, causing savings and higher volumes of transactions as a consequence. Revenues will be determined by the licensing fees for the restaurateurs and the individual agreements with the biggest realities, such as restaurant chains. We are determined to keep the fees as low as possible to determine the highest adoption rate possible, creating different tiers for different sets of customers (such as bars, pubs and restaurants). From a marketing perspective, the market will be addressed in two phases. During the first phase, Biberatica will be rolled out with a clear focus on markets with vertical and very specific needs, such as coeliacs, allergics, vegans and vegetarians. Those markets will be addressed through specific agreements to be established with their relating category associations and by means of some initial basic investment in commercial force. Biberaticaintends to use this first phase to refine the features of the service to be provided to the wider, generic restaurant industry. With the second phase, we plan to expand proposing a more mature service and spread the brand worldwide through investments meant to expand the commercial force and, most of all, by means of campaigns of viral marketing. We count of word of mouth: the clients with special needs pay a lot of attention to the search for restaurants compatible with their needs and are very active on socials and specialized sites.
  • The Business Model General Every restaurateur is a service provider. As such, the objective is to have their tables as much occupied as possible. A bigger customer base would increase the possibility to reach that goal. Following this target with low extra-cost and, possibly, improving the ability to efficiently manage the store and the capacity, can certainly be considered a value to them. Consumers tend to look for restaurateurs that can satisfy their needs. Finding a service which suits their needs, certainly increases their fidelity as consumers. Our model wants to build a market place where the demand of personalized services (that of final consumers) meets the offer of customer tailored, differentiating opportunities man-aged by restaurateurs. Target Restaurateurs (niche AND nonniche) who want to widen their potential markets Value Proposition Increase their appeal on tourists by offering them a custom tailored service using their own language and knowing their taste and specific needs, so that they can better serve them. Ease the work of their waiters and allow them to serve their customers faster. Live a personalized, easy and rich food experience. Be part of a rich social experience on food. Consumers Restaurateurs (non-niche) who do not invest in marketing tools because of costs/resources/FUD (Fear, Uncertainty, Doubt) Specific Restaurateurs (non-niche) who already invest in marketing with 3rd party tools Restaurateurs who were/are put in trouble by the market of reviews and ratings S p Target Consumers (niche) Reach the same results of expensive marketing campaigns with a low cost and simple to use tools that grant total control over their marketing costs and results. No contract locks, opt in and out whenever they want. No hidden fees, choose what to pay for. Join a network of trust! Start their own marketing campaigns; manage them by themselves (no need to rely on third party marketing policies and services). Full control over the number and the extent of the deals they want to offer. Gain customer loyalty by providing a tailored and personalized service. Let customers be part of their workforce, involving them into a rich social experience. Promote a differentiating quality of service through a trustworthy and reliable (coming from final consumers) reviewing system that avoids anyone from blackmailing them for paid reviews. Stop unverified sources from threatening their business and causing them losses. Value Proposition Start exploring new places without the need to nit-pick
  • Consumer (everyone) the menu for their needs. Get the dedicated care of specialized bistrots in every restaurant. Help the waiters serve them faster, no need to call for their attention. The waiter becomes a complement (culture, experience) to the food experience. Turn every special food experience to a social experience, by sharing their thoughts on the places you go while being rewarded for it (e.g.: special offers, coupons). Enjoy a personalized menu that is based on their personal taste and needs and speaks their language, in their country as in the rest of the world. The role of partners Partnerships are going to have a key role in the success of the business model. Following are listed the main types of partnerships. Nutritional choice-driven associations We want to co-operate with those associations from day one in order to learn how Biberatica behavior can be improved for their needs (which are more restrictive than other people’s, thus more interesting from a marketing-point-of-view).This could grant Biberatica feedbacks, but also audience and visibility. Opinion makers The service will be introduced officially to opinion makers and influencers with significant visibility both to the general audience and the professional one. It is a must to shed the light also via those communities who are focused on traveling experiences. Phone/OS Makers, retailers In the long distance, partnerships may even be established with operators such as Google or Nokia/Microsoft, or retailers such as Vodafone, to include Biberatica as a pre-installed app on those phones with custom firmware. Other services Biberatica will provide APIs for integrating it with existing or future services, such as OpenTable, Cibando, and so on.
  • Key partners Partnership will be created with the most spread web information services and bloggers specialized on food and tourism advising. This will contribute to promote awareness. More partnerships will be considered with providers of complementary services such as restaurant web booking and coupons. This will enrich the global offer, increase the interest on the aggregate service and contribute to speed up reaching the critical mass of users, contemporarily reducing the chicken-egg risk related to creating a new market place (that of food addicted). Partnerships will be established with freelance interpreters (having experience with food industry), to support Biberatica with the translation service, based upon an on demand service. Key Activities Software development. Database design and maintenance. System scalability. Graphic design and usability. Language translations. Start up: create direct commercial relationships with restaurateurs, according to a commercial policy aimed at covering the most attracting touristic sites in the world. Maturity: develop and maintain a rich client restaurateurs version to provide them with more and more value addedservices. Distribution Channels will be based on Web and App technologies. Customers relationships will be managed in terms of personal assistance to restaurateurs. Final consumers will contribute to create the social experience. Revenue Streams will come from fees paid for basic and premium services provided for dynamic management of menus by restaurateurs. Key Resources The needed human resources include expertise on software engineering and programming, sales, business planning and development, strategy and web marketing, design. The needed computing capacity will be sourced as a service and on the cloud. The financials estimate a seed of €300,000 to start up and deploy the starting web based version which will allow to begin penetrate the niche market. A further first round of financing will give the chance to estimate what needed to improve the system and start penetrate the global market. We plan to patent the design and algorithm through which the smart-phone app will learn on consumers’ taste and needs. Cost Structure Costs are mainly related to developing and maintaining the web site and the app. During the start up phase, extra cost will be allocated to deploy the commercial strategy. Value Propositions Restaurateurs Unleash restaurateurs’ will for offering their customers a new, high level of hospitality through a personalized service. Get rid of natural and artificial limits on food experience such as language, limited information, physical barriers. Provide restaurateurs with the possibility to easily and conveniently differentiate in a highly competitive, mature and traditional market. Give restaurateurs the possibility to independently act marketing policies on price and service promotions, through a customer tailored experience proposition. Consumers Give consumers an enriched, personalized and social food experience, wherever and whenever they want. Customer Relationships Customer Segments Personal Assistance will be offered to support restaurateurs managing the content of their commercial proposition. For final consumers the experience is going to be social. They are going to co-create the content of the globally shared food experience. The commercial strategy will be first focused on niche markets; that’s because it is aimed at making the starting service mature enough to be later used to penetrate a more general market, that of food addicted. Niche markets are those where the demand for more personalized services is higher, such as coeliacs, vegetarians and vegans, food allergics and intolerants. The awareness will be reached through promoting the service on specialized sites and socials. This first focus will be essential to improve easiness and effectiveness of the app that will learn from consumers taste and needs. The second phase will be devoted to addressing markets of passionate and tourists. The awareness will be boosted by partnerships with the most spread specialized sites providing mass market with touristic, complementary information and food opinion makers’ blogs and sites. Channels The distribution channel will be the Web. During the startup phase a strong commercial plan will be deployed to spread awareness and reach the critical mass of users. For this reason a dedicated commercial force will be used and we are going to take advantage from low cost trip possibilities and an accurate commercial covering strategy aimed at serving the main towns in Italy, Europe and then Worldwide. At a later stage, we count on word of mouth and Web. We will also count on partnership with the main tourism advisors web sites and niche categories’ associations. Demo videos will be created on YouTube and integrated with socials to share and help evaluate the value proposition. All the channel will drive restaurateurs to autonomously buy Biberatica services from the dedicated Web site. Final Consumer will download the app from Apple and Android stores. They will gain awareness through plates that will be showcased by the member restaurateurs and by means of the social experience (word of mouth). The post purchase customer support will be provided (e-mails and phone) by third party work force the will be integrated and formed as long as the customer base will grow. Revenue Streams Restaurateurs are willing to pay for the possibility to: • Differentiate their services proposing a customer tailored, highly personalized experience • Promote them becoming part of a social experience • Increasing their visibility and marketing potential • Expanding their customer base through better valuing their added value services • Making efficiency on menu proposition, store and personnel management Revenue will come from monthly fees being paid by restaurateurs for having published their menus and commercial propositions. Extra revenues will come from supplementary packages such as different language translations and support for content management editorial activities. The app to the final consumers will be provided for free.
  • The Market Here we focus on final consumers’ drivers to categorize our target, which is restaurants. The restaurant industry for the final consumers can be considered as operating according two different strategies. One is a B2B, (read: catering and canteens) and the other – far more popular – is a B2C (single restaurants, branded food chains and so on). The food related services provided by hotels and highway stops also fall into the latter category, the one Biberatica is after. Who The consumer experience in the B2C of restaurant industry is illustrated in the “WHO” axis of our graphic representation. The first category of that field represents the general consumer, the one who wants his/her appetite to be satisfied within a reasonable or low budget. The operators of this category are, for example, the widespread pizza/pasta/Japanese/Chinese restaurants. In order to make an easier reference to this segment of the market, we will refer to it as “conventional”. The other category (named premium) is populated by more demanding customers (high segment, top spender) who demand a more rewarding, differentiating food experience because of their need to claim a higher status or because of the concept of celebrating something or someone remarkable. They require being more comfortable than in conventional restaurants and claiming the need for something more than just the food, some exclusivity. This kind of customer may also be in need of dedicated attentions on the quality and kind of food – as for religious or social choices, regimens or allergies. Vegans, for example, fall into this category. Technologicalalternatives (HOW) Value addedservices brand/location (exclusivity) Foodvariety (wide) service (relationship through waiter/maître) premium (extendedexperience) conventional (stand alone experience) Groups of customers (WHO) type of food (general) type of food (specialized) quality/price (general level) quality/price (high level) foodexperience (basic) foodexperience (rich) Needs of customers (WHAT)
  • What The needs of final consumers (those who sit at the tables) are placed on the “WHAT” axis. They are mainly related to the nature and variety of food but are influenced by the quality/price ratio as main factor. In this scenario, eating at a restaurant is regarded as an experience that goes beyond our primary needs, and is affected by parameters such as location, atmosphere, quality of service and reliability of the staff, the brand. The higher the market segment is, the richer their food experience needs to be. How Restaurateurs differentiate according to several drivers, as described on the “HOW axis. “HOW” The main driver is represented by the variety of their offer: one of the most important needs of their customers is to be able to choose, among a list of possibilities, the ones that fit their needs and taste at best. According to this need, restaurateurs tend to offer the widest possible choice restaurateurs according to their experience and possibilities in order to address the largest potential audience. This factor is decisive in raising the costs related to managing a restaurant because it requires to properly handling an expensive and not durable store. This cost can only partially be mitigated by ly the cyclic nature of the demand, which is related to the geographical location and climate variations. The classic and mature interface between the restaurant and its guests is the waiter. Not only does he act as a counselor, but as a seller as well and is crucial in the quality of service as perceived by the final customer. Even if its role plays a central part in how the customer perceives the food experience, it is just a part of it: word of mouth, newspapers and other information sources do still have their weight in the equation, highlighting how much a food experience is really a cultural one. The location where the service is provided is also very important, and is related to several factors and such as the proximity, the exclusivity (downtown restaurants are usually more elegant and expensive, for example),and the environment. Brand is also very representative for the segmentation and the associated values, as it might be a huge part of the customer experience. The offer of value added services (VAS) might set one offer worlds apart from one other. For example, this might be achieved by offering a private parking space or a kindergarten, support for customers with disabilities or allowance for pets. Segmentation The highest segment is the most demanding and has top spending potential. It is a customer base that looks for the richest food experience by choosing the more exclusive restaurants and asking for unique solutions adequate to their standards. They ask for more specialized food, utions sophisticated but still with an important variety. Not only do they appreciate value added services,but also need their status to be acknowledged and displayed, and that is not just a matter of money but a matter of choice. This is why this segment also includes niche markets 11
  • such as those who pay more attention to nature and quality of food (think of customers with strict vegan or kosher preferences). Technologicalalternatives (HOW) Generic and specializedfood Premium Customers Higherprice Richfoodexperienc e Groups of customers (WHO) Needs of customers (WHAT) The medium/low segment is represented by less demanding customers, more willing to have just a satisfying food experience outside home. Variety of the offer still plays an important role, but it is way less sophisticated, while the importance of the quality/price ratio becomes more d, important. 12
  • Technologicalalternatives (HOW) Service food variety Conventional customers Groups of customers (WHO) Genericfood Lower quality/price ower Common foodexperience Needs of customers (WHAT) Potential target Biberatica aims to give restaurateurs the instruments to vastly improve the reach and quality of their offer. The idea is to provide their guests with an app for smartphones and tablets that will o help them find the right and the best places for their wishes, providing them with a personalized menu that will showcase the offers of the connected restaurants. Biberatica should allow highly segmented restaurants to enrich their distinguishing offer, low promoting their value added services and integrating them with a customer tailored approach. Biberatica’s features would enrich the customer experience for the medium segment as well, b by offering conventional consumers the possibility to enjoy a more personalized service and giving their restaurateurs the possibility to better differentiate and pursue their market. 13
  • Value added services Brand/location Food variety service/regard Conventional and premium customers Groups of customers (WHO) Technologicalalternatives (HOW) General and more eneral specializedfood Medium and higherquality/price Richer Food Experience Needs of customers (WHAT) This is how Biberatica’s concept will allow to cover the envisioned requirements according the three conceptual directions. 14
  • Internal analysis FirmInfrastructure Human Resource Management Technology Procurement Inbound Logistics Operations Social content is going to be procured through viral and cheap social campaigns Software Engineering strong internal competence. Partnerships with externaldevelopers. Outbound Logistics Marketing and Sales Software will be developed externally according to internal design. Social management and support to restaurateurs will be provided by dedicated workforce. Menu translationswill be provided on demand. Service A strong commercial effort will be spent, supported by strong niche categories partners. The main weaknesses are related to not having a pure software developer in the team. But this is compensated by a strong internal software engineering competence. Strong and mature professional networks will provide the necessary relations to create partnerships with complementary services, software developers, translators, go go-to market channels. 15
  • External Analysis As of the market analysis made so far, the target market is that of providers of any possible food experience. From this viewpoint even automatic vending machine providers may be a possible target. Considering that of restaurateurs as potential target is just a way to focus on a specific market. Main drivers in restaurant industry Restaurateurs are the main target of Biberatica, its main source of revenues. Here we analyze the main drivers in this industry. The location The location of a restaurant is crucial.3 It needs to be close to target customers, have available parking and the rent must be afforda affordable. It must be in a well-known, easily accessible area, but known, not too close to other restaurants of the same type. It also takes having a clean, attractive space where people will want to spend time. Ideally, the restaurant will also be in a location that h has foot traffic and is close to public transportation. The Menu The restaurant's menu should contain items that appeal to a variety of tastes. Since people are becoming more health conscious these days, it's important that the menu offers a variety of healthier and lighter items (e.g. low fat, low sodium, low calorie and vegetarian). A good selection thier of beverages and desserts is also important, as most restaurants find these items to h have the highest profit margins. Price Range The price range of a restaurant’s menu should be comparable to that of other similar restaurants nt’s in the area where it is located. In general, restaurants that offer breakfast items for €4-€7, lunch items for €6-€12 and dinner items for €10 €12 €10-€25 will get the most business. Community Demographics and Labour Pool mographics It takes considering the composition of the population in the selected target community. Is it an older, established area, one with a lot of young single people or one with a lot of families with kids? When deciding on the menu and price range for the restaurant, it takes to be sure that the and menu and prices are appropriate for the community where it is located. It’s also important to know about the available labor pool and to be sure that there are a sufficient number of younger people, as waiters, waitresses and other help normally fall in this group. Proximity to public eople, transportation will also be important for the employees. 3 KING, B.J. “Restaurant Marketing Analysis” eHow. Web. Last visit: 2013.01.20 Restaurant . 16
  • The Competition It’s important to be aware of other successful restaurants in the area, understand their clientele and evaluate their menus and prices before finalizing a proper menu. Promotional Ideas Several different techniques are used to drive business to a restaurant. Distributing flyers and coupons and taking an ad in the Yellow Pages are usually succe successful low-cost options. Another cost good idea is to hold an opening reception, where the restaurant offers samples of some of the served foods. More expensive options include billboards and direct mail campaigns, and advertising on cable TV and local radio stations. Understanding what kind of promotions and stations. advertising work best for a restaurant can be crucial to its success. Restaurant PEST analysis Political Factors Political factors deal with the degree to which the government influences and controls businesses.4 For a restaurant, the most important factors will be health regulations relating to food preparation. A restaurant will be affected by factors that affect other businesses as well, such as tax rates and labour laws. h Economic Factors Economic factors are extremely important to a restaurant. This is because restaurants are a luxury, not a necessity; people must have the disposable income to spend at a restaurant. Economic growth is, therefore, extremely important for restaurants. A restaurant wi also be will affected by the economic factors that affect most businesses such as the co of capital and cost inflation. Social Factors The social factors of a market will have a huge impact on a business. For example, in a very health-conscious market a restaurant should offer healthy foods, while in a market where people conscious restaurant prefer high fat foods, they should not. Another important social factor is the attitude that people have toward restaurants and eating out; a restaurant stands a much better chance in a market where people prefer to eat out than in one in which people prefer to stay at home. Technological Factors In general, the restaurant industry is a low technology industry. If there are strong technological low-technology demands in a market, this may make it difficult to enter the market. In the restaurant indus indus-try, specialized equipment is the largest technological factor. For example, if all the pizzerias in a 4 WENDEL, C “Restaurant PEST Analysis” eHow. Web. Last visit: 2013.01.20 17
  • market use specialized ovens to cook their pizzas quickly, then it will likely be necessary to acquire such an oven to compete with these restaurants. Upcoming market trends Related to treatment of animals Western countries consumers are becoming increasingly concerned about the treatment of animals before they are slaughtered, and are turning to such foods as viable alternatives.5 To be viable certified as halal or kosher, both types of foods must go through extensive testing and observation, so consumers know that they are receiving quality products. As the Muslim population in North America and Europe expands and as demand from non demand non-Muslim and nonJewish consumers grows, the halal and kosher markets are expected to see even greater growth in the future. In addition, the idea that Halal and Kosher certifications will be used as an added level of food security assurance is gaining steam and these processes will be increasingly is introduced to non-traditional consumers through education. l Healthy Snacking There has been an overall snacking trend internationally, with particularly healthy snacking experiencing significant growth. Consumers are opting to purchase quick food solutions that are h. both nutritious and satisfying. An increasing number of consumers are purchasing high protein snacks as meal replacements. high-protein Fruit is the most popular snack among children ages 2 to 17. According to Mintel, close to 50% of children living in the U.S. snack almost four times a day. This ing presents an opportunity for manufacturers of healthy snacks that are both tasty and kid kid-friendly. Humus and falafel chips are becoming the healthier snack alternative to traditional chips and alternative dip.Granola bars now come in a variety of flavors, and there are many gluten gluten-free, dairy-free and organic options available. Tea Beverages Tea is gaining significant popularity as more options become available, and is current the currently second most popular beverage world world-wide, after water. Tea appeals to a variety of ethnic groups, ages and to both males and females. Sales of tea products continue to grow every year, especially with increasing consumer awareness of the many health benefits associated with this beverage. According to a recent study by Nielsen, specialty tea grew by 5% in 2010, while decaffeinated and caffeinated tea each grew by 1% and 2% respectively. 5 GOVERNMENT OF CANADA, “Health and Wellness Trends for Canada and the World” ATS ATS-Sea. Web. Last visit: 2013.02.12. http://www.ats-sea.agr.gc.ca/inter/4367 sea.agr.gc.ca/inter/4367-eng.htm#j 18
  • Fermented tea beverages, such as iced green tea and kombucha tea, are also becoming increasingly popular because of their relation to digestive hea health. Mediterranean Foods Many consumers consider Mediterranean foods to be much healthier and contain a higher proportion of nutrients. Food items, which have especially gained popularity, include olives, olive oil, fish, herbs, spices and red wine. There is growing consumer awareness of the health benefits, quality and taste of these products, which are believed to fend off health problems like heart attacks, Alzheimer's disease, and diabetes. Competitors Focusing on the more specific market of companies providing App and Web Sites services to restaurant industry, our map shows a set of competitors. Most of them provide restaurateurs with applications meant to support waiters. The ones who focus on the final consumer are developing complementary supportive services but are very little focused on customer’s experience. 19
  • Logo Company Product Launched? Conceptic eMenu Yes IknosysS.r.l. QuickMenù Yes Channel Direct, AppStore Target Luxury Restaurants Direct sales Website, Express Courier Website, AppStore Markets Description Intl. Interactive menu with pictures. Wine matching. Web basedbackend. POS Bars, Take-away Italy PDA for waiters, touch-screen POS touch Restaurants U.S.A. Sowftware + hardware (iOS integration) Restaurants Russia Sowftware + hardware (iOS integration) TouchBistro Inc. TouchBistro Yes Alayamovskaya L. TillyPad Yes PosIOS Restaurant Butler Yes AppStore Restaurants Intl. iOS App for waiters Evernote Evernote Food Yes AppStore ? Intl. Save and share points of interests and recipes. Foursquare Foursquare Yes AppStore Businesses (Generic) Intl. Customer loyalty, offers MiSiedo MiSiedo Yes AppStore Restaurants Italy Reservations Cibando Cibando Yes AppStore, Restaurants Italy, France Contact info, reviews, localization info General U.S.A. Loyalty, subsidized hardware Belly BellyCard Yes Website, Express Courier WeOrderS.r.l. WeOrder No - restaurants ? Self-ordering - AppEatIt No - restaurants ? Reservations/self-ordering 20
  • Five forces analysis Supplier power Potentiale ntrants Industry rivalry Threat of substitutes Buyer power Potential entrants – high threat The food market is a red ocean, where competition is played through differentiation based on price or on strong quality and variety of service differentiation. Laws do not specifically re regulate niche markets, but the richest countries strictly rule on health. Market promotion is strongly based on word of mouth. Big chains (such as McDonald’s) are experimenting alternative ways to allow customers submit orders by themselves through kiosks. The goal looks meant to ease operations more than improving customers’ experience. Top segment restaurants invest in enriching the customer experience in terms of quality of food and culture. Hotel chains could invest in vertical and branded Apps, to buil customer tailored build services to be spread everywhere one of their branches is. The menu, as a product, is poorly differentiated. The real differentiation comes in terms of services. The tourism market knows several advising services, with a widely known br brand, which might independently develop a complementary service for restaurants. This might lead to the need for big investments in marketing promotion to gain some market space. Well-established brands can easily access distribution channels (e.g.: direct contact with established restaurants). A new service provider, like Biberatica, might face a lot of difficulties gaining credibility among restaurateurs and final consumers. The possibility to develop Apps and Web services with relatively low initial investment is su that such there are very low barriers to entrance. This might lead other start ups to develop comparable start-ups services. 21
  • Buyer power – high threat Final customers will expect to use Biberatica App for free. The use of low cost Apps is widely spread (their sensitivity to price is relatively low) but the need for building a critical mass on the vity demand side will ask for the app to be for free.6 The target of Biberatica is made of restaurateurs. There are already many services meant to promote their visibility and able to collect reviews and critiques by final consumers such as Yelp e consumers, 7 and Tripadvisor . The main difference with Biberatica is that it proposes a reach customer experience not only before having the experience, but also while the consumer lives it, by the service provider (the restaurant). Anyway, the spread of already well known brands promoting ervice mature experiences in leisure time markets creates a high switching barrier for both, final consumers and restaurateurs. A key for the success of Biberatica will be its usability by the restaurateurs, which will have to edit and compose his menu on line. An opportunity is to value the complementarity of such services to Biberatica and take ad advantage of their critical mass. Supplier power – high threat From this viewpoint, the richness of the value proposed by Biberatica is: • For final consumers: the dimension of the involved audience (critical mass) ensures a proportional richness of the social experience. • For restaurateurs: dimension of the involved audience (critical mass) ensures the best visibility and opportunity to enlarge his customer base. • The ability of Biberatica to attract a conspicuous customer base is related to the richness and quality of its content of information. The major contribution should be that of final consumers. should They will be the co-creators and main providers of the content. Once the critical mass will be creators reached, the credibility of Biberatica will be a lock in value for such providers. But, meanwhile, a lock-in strong and effective proposition needs to be addressed to get a proper momentum in terms of on consumers and restaurateurs’ attention. s Threat of substitutes- low threat Several similar services are being developed but they do not focus on the customer experience and do not provide a really perceivable value to final consumers. Plus, they are focusing on the y general market and specializing on specific features related to ease payments, coupons and special offers, the ability to book tables in restaurants 6 More than 12bn downloads, about 3bn users, 4 downloads per user. http://www.slideshare.net/shwetaj/mobile http://www.slideshare.net/shwetaj/mobileapplications-7455683 7 User Reviews and Recommendations of Top Restaurants, Shopping, Nightlife, Entertainment, Services and More Entertainment, atYelp: www.yelp.com Unbiased hotel reviews, photos and traveladviceforhotels and vacations - Compare priceswithjustoneclick: www.tripadvisor.com 22
  • Particularly in niche markets, the absence of substitute products helping consumers to live rich absence customer experiences and make them feel less discriminated would increase their loyalty and lower their sensitivity to price, because of a really perceivable added value. Industry rivalry – medium threat m The main source of competition is related to the high possibility to develop services similar to Biberatica in short times. The start up arena already shows many small companies trying to create value added services in the restaurant market. Time to market is going to be key. The actors already involved in this market (already established brands) compete on emerging by better reviews and attracting positive feedbacks by their customers. 23
  • SWOT analysis Strengths Time to market will be short, because Biberatica has already found first restaurateurs available to collaborate as early adopters. The time needed to develop the prototype is estimated in four to six months. The cost of first prototype will be completely absorbed by the founding team, thanks to their competence (software engineering, business planning, graphic design, marketing, languages). Favorable revenue models can be set up. The team is a balanced mix of competence, managerial and technical. Plus, it is composed by people having already matured start up education and experience (both successful and ready unsuccessful). One of the three involved resources is available to work full time. Each of them man-ages an about one thousand people professional network. ages Collaborations relationships are being developed between Biberatica and several nutritio e nutritional choice-driven associations. Weaknesses The company is still to be founded. The brand is still to be registered. The initial equity is to be deposited. Apart from personal funding capability and potential, external funding is going to be potential, crucial to deploy a starting version of the system. Opportunities The apps already available for restaurants are poorly focused on customers’ experience. The possibility to mature the service expanding it through progressively extended markets eases progressively the difficulty related to creating the necessary critical mass. Many nutritional choice-driven associations are, which should help penetrating the relating niche driven market with low costs and effective time time-to-market. High and growing demand for added value services in restaurant niche markets, for those consumers usually being discriminated by poor dedicated services. In global crisis time, the budget allocable by restaurateurs to compete, retaining their customers and attracting new ones gets lower and lower.The start up scene is facing a progressively growing acting promotion in Italy. There are many possibility to compete in start up contests, gaining visibility and increasing the possibility to be fund by seed and business angels. funded Threats Fierce competition among start-uppers paying attention to the same market. -uppers Setting up the critical mass is going to be difficult. The saleability of the service will be connected to numbers and to the usability. The start up phase will need for early adopters to be open minded and available to experiment new services. Biberatica will need for first restaurateur 24
  • customers being available to behave as partners. Biberatica is being progressively developed according to two main drivers: drivers: technology and market covering. 25
  • A market penetration and growth strategy From a technological perspective, the first version of Biberatica will be aimed at offering basic features to support access through pure web. This means that restaurateurs will be offered backend functionalities through a Web browser and they will be supposed to access functions provided by Biberatica web site. Final consumers will always need to have a smartphone with a data connectivity available. In a second phase, the goal is to provide restaurateurs with a richer goal client application. Year 1 Translation support for 5 languages (Italian, English, French, Spanish, German) Web-basedarchitecture Geo-localization and statistical information Support for vegetarians and vegans Support for coeliacdiesease Support for food allergies on single ingredients Local backup Pre-set up templates of commercial products Pre-set up templates of typical products and dish Year 2 Support for more languages (Russian, Japanese, Arabic, Chinese) Value addedservices Geo-localisation with real time information Support for Halalfood Year 3 Support for dialects and minority languages (Catalan, Euskari, . , ...) Support for BIO-branded products Support for diabeticcustomers Backup on the cloud Integration of QR code feature Continuous enrichment and integration of food dossiers Direct paymentthroughApp Analytics Support for Kosher food Support for low low-cholesterol diets Remote sync Bill reporting Continuous enrichment and integration of food dossiers NFC Payment Commercial road map From a more commercial perspective, the growth strategy will be driven by two more drivers: market segment and geography. Market segments Before being extended to the largest market of general final consumers, the main showcase of the service, which is the App-based personal waiter, will need to progressively mature, becoming based more and more easy-to-use and sensitive to recognize people’s taste and needs. The best way to use do that is to focus on those segments where demand is more demanding on features such as s quality of food. That’s the market veggies (according to the several possible variations), as well that of food intolerances and allergies and that of religious food constraints. These markets can 26
  • pretty much be considered high potential because guarded by specific category associations, which can become very important partners, helping Biberatica to penetrate them because of its Added Value characteristics. Accessing those markets through category associations should help through quickly penetrate the markets keeping low costs in terms of commercial force. That of niches can also be considered a favorable context to set up a network market, where a sensitive demand is a prolific environment of consumers willing to spread their valuable customer experiences through word of mouth. Another favorable context is that of the following market, that of passionate. In western countries the cultural phenomenon of food is spreading, well supported by s social networks, where food-experience addicted share their thoughts, taste, recipes, stories connected to the experience place where they consume, etc. This kind of audience produces a great quantity of information in terms of revisions and critiques (co (co-creation) and can be considered a highly potential source of d promotion. This kind of demand pays high attention to food quality and customer experience. Even if they can be considered a little less demanding than the former segment, they are very careful and precise. The expansion through this segment is crucial for the success of Biberatica and social network will be decisive in succeeding, making the personal waiter even more easy easy-touse and catchy. After having grown the service through the first two, more restricted, markets, Biberatica will be restricted, offered to the more general market, that of more conventional consumers. Here numbers make the difference and the personal waiter will succeed if it will have become very intuitive to use, but also if it will have become part of a real social experience, involving a real critical mass of final users. Geography One of the main driver, from final customer’s perspective, is going to be the translating function. That means focusing on tourism will be key for initially penetrating the restaurant market. Italy is one of the best tourist attracting sites in Europe, it is the geographic market the working group better knows and it is the one more suitable to catch the greatest starting audience with 27
  • the minor initial commercial investment. That is why Italy will be the first target to which the investment. other market penetration criteria will be applied to. Europe has a remarkable throughput in terms of tourism traffic. And its main touristic sites are cheaply reachable and well suit an affordable starting commercial expansion strategy. Europe is affordable also an important aggregation of different cultures and languages. That is why it can be considered a determining test for Biberatica. After having expanded through Europe, a further, global, expansion plan will be considered. plan Niche Markets There are several sub-markets which can be considered specific niches. markets Food allergies and food intolerances Food allergies and food intolerances can be unpleasant, complicate life and in the worst cases, are deadly. Food allergy = immune system reaction to a food Food intolerance = inability to digest a food Food allergy occurs in around 1 in 20 children and in about 1 in 100 adults 8 Food intolerance is children adults. even more common. Surveys indicate that up to 25 per cent of the population believe they have the some sort of food intolerance. The high incidence of food allergies and intolerance is concerning. Currently there is no cure for food allergies and the only successful method to manage a food allergy or intolerance is to avo avoid the foods containing that allergen or food component. Food allergies and intolerances can be managed and supporting people suffering for them is certainly a perceived value. Food allergies Having a food allergy means experiencing an abnormal immune reaction to a food that is harmless for most people.9 This is because antibodies are produced in your body against the protein in a food (the allergen) so that when you eat the food, histamine and other defensive chemicals are released into your system causing inflammation. It is these chemicals that trigger icals reactions that can affect your respiratory system, gastrointestinal tract, skin or cardiovascular system. The eight most common food allergens are: • Crustaceans • Eggs • Fish • Milk 8 NSW Food Authority, “Allergy and intolerance”. Web. http://www.foodauthority.nsw.gov.au/consumers/problems http://www.foodauthority.nsw.gov.au/consumers/problemswith-food/allergy-and-intolerance/. Last visit: 2013.03.10 . 9 http://ebookbrowse.com/food-allergy allergy-and-intolerance-pdf-d65870027 28
  • • • • • Peanuts Soybeans Tree nuts Sesame seeds These allergens, as well as gluten (from wheat, rye, barley, oats and their products) and sulphites (which are added to food as a preservative), are required by law to be declared on food labels. Food allergies are more prevalent amongst young children than adults. Over a quarter (26%) of the world’s population is 0-14 years old.10 14 Food allergies by region and age group 0-4 5-9 Asia 17.79 M 11.93M South America 2.21M 1.48M Europe 3.05M 1.99M North America 2.21M 1.47M Oceania 0.11M 0.07M Africa 6.89M 4.06M Middle East 1.67M 1.05M 10-14 9.23M 1.09M 1.51M 1.11M 0.06M 2.68M 0.74M 15-19 6.60M 0.74M 1.18M 0.83M 0.04M 1.69M 0.53M >19 38.9 91M 4.28M 28M 11.4 43M 5.19 19M 0.37M 0.37 5.9 90M 2.2 23M TOT 84.47M 9.81M 19.17M 10.82M 0.66M 21.23M 6.33M WORLD 16.43M 11.64M 68.4 43M 152.50M 33.95M 22.06M Source: Elucidare Limited Over 150 million people worldwide are allergic to one or more food.. Over 50 million young children (0-9 years) worldwide are allergic to egg, milk or peanut. Unlike egg and milk, peanut 9 allergy does not decline significantly with age. Hence peanut allergy within adults is the largest single allergy group. Worldwide food allergy by age group and allergen 0-4 5-9 9 10-14 Egg 11.85M 6.95M 5M 4.69M Milk 12.63M 7.36M 6M 4.88M Peanut 5.92M 5.45 45M 5.15M Other 3.55M 2.30M 30M 1.71M WORLD 33.95M 22.06M 06M 16.43M 15-19 2.51M 2.47M 4.93M 1.72M 11.64M >19 10.02M M 9.69M M 35.59M M 13.11M M 68.43M 43M TOT 36.03M 37.03M 57.05M 22.39M 152.50M Source: Elucidare Limited. Based on age related prevalence statistics from the literature. age-related 10 http://www.elucidare.co.uk/assignments/Project_Allergy/Global%20food%20allergies%20statistics.pdf http://www.elucidare.co.uk/assignments/Project_Allergy/Global%20food%20allergies%20statistics.pdf 29
  • Food intolerances Having a food intolerance means you will experience an adverse reaction to certain food components but this does not involve the immune system. In fact, it is quite different from a food allergy. There are many different types of food that people can be intolerant to but the most common include milk and lactose (the sugar in milk), gluten, wheat, food preservatives, and naturally occurring compounds in foods suc as caffeine. such Lactose intolerance is caused by a shortage of the enzyme lactase, which is used to ensure lactose is absorbed properly into the bloodstream from the stomach. Milk intolerance is common in children under the age of two years. If left untreated it can result in malnutrition. Food additive intolerance only affects a very small number of children and adults. The additives most commonly linked to food intolerance are artificial colours, e.g. tartrazine, sulphites and benzoates (types of preservatives). eservatives). Sulphites have to be declared on all packaged products under the Food Act. They are preservatives and are commonly found in wine and dried fruit. The additive numbers for Sulphites are 220-228 and appear in the ingredient list. Sulphite reactions cause asthma, rashes, irritable 228 reactions bowel syndrome and headaches in sensitive people. North America is the largest market for food intolerance products with sales ofUS$3.6 billion in 2010, representing 43% of global sales.11 North American consumers are becoming more health ecoming healthconscious and are eager to prevent certain diseases by implementing changes in their daily diets. As the second largest market for food intolerance products with sales of US$2.5 billion in 2010, Western Europe is driven by demand in the German market, which accounts for 33.2% of total Western European sales. Auto-immune disease Coeliac disease is a disorder of the small bowel caused by an immune reaction to dietary gluten (a protein found in wheat, barley and rye). It is not a food allergy but an auto allergy auto-immune disease. In coeliac disease, the lining of the bowel is damaged by the white blood cells of the immune system and not by antibodies (as in food allergic reactions). Symptoms include nausea, wind, tiredness, constipation, reduced growth and skin problems. h Several associations are specifically devoted to coeliacs. In Italy, for example, there is AIC AssociazioneItalianaCeliachia 12 which tracks a census of Italian’s restaurants for coeliacs. Restaurateurs can adhere only according to spe specific conditions, such as: • Having attended to basic courses set up by the association • Participate to AIC activities and follow up courses • Allow periodic controls in the restaurant by AIC technicians • Only use allowed (by the Italian law) products and ingredients exposing the AIC brand and claim “no gluten” in any communication 11 GOVERNMENT OF CANADA, “Health and Wellness Trends for Canada and the World” ATS ATS-Sea. Web. Last visit: 2013.02.12. http://www.ats-sea.agr.gc.ca/inter/4367 sea.agr.gc.ca/inter/4367-eng.htm#j 12 http://www.celiachia.it/HOME/HomePage.aspx 30
  • • Deploy procedures to avoid cross contamination of gluten up to table service, ice cream distribution, breakfast service, tak takeaway service. Eating a meal from a restaurant, café or take away can be a stressful experience for people take-away having a food allergy or intolerance. When food is prepared by someone else, you can’t be absolutely sure that it won’t contain allergens. The customer experience of such consumers is pretty complex and follows some guidelines, like er the following: Tell the restaurateur When you book a table, tell the person taking the booking about your food allergy or in intolerance and ask them to check with the chef that they can provide you with a meal that that doesn’t contain the food you are allergic to. When you arrive at a restaurant, make sure the waiter knows about your food allergy. Ask about the dishes Read the menu carefully to see if there is any mention of the food you are allergic to in the name or description of the dish. Always ask the waiter or waitress – food allergens are not always stated on menus. Tell them what you would like to order and ask them to check with the chef that the dish does not contain the food you need to avoid. If you can, speak to the chef personally. he If the staff can’t answer your questions or don’t seem certain, it’s better to order some some-thing else or eat elsewhere. Ask about cross-contamination contamination Ask staff whether your food will be prepared with different equipment and utensils that are prepared separate to those used for foods containing the allergen in order to avoid cross crosscontamination, e.g. your food will not be cooked in the same oil as the ‘risk’ food or cut up with the same knife. Don’t assume because you ate a dish safely in one restaurant that it will be made the same way the next time or in a different restaurant. Avoid self-service areas If you have a severe allergy, it’s best to avoid eating food from a self service area or buffet. self-service It’s easy for small amounts of allergenic ingredients to get into food by accident (e.g. because people use the same spoons for different dishes), so even if it looks safe, you can’t be sure. Halal/Kosher Diets There is a growing demand for specialty products due to the global diversification of the population, and the growing global Muslim population.13 Specialty products, such as foods pre pre13 GOVERNMENT OF CANADA, “Health and Wellness Trends for Canada and the World” ATS , ATS-Sea. Web. Last visit: 2013.02.12. http://www.ats-sea.agr.gc.ca/inter/4367 sea.agr.gc.ca/inter/4367-eng.htm#j 31
  • pared according to kosher and halal practices, are increasingly growing in popularity. Halal food is generally eaten by followers of the Islamic faith, while kosher food is generally eaten by followers of the Jewish faith. Both types of food are prepared in a specific manner outlined by their respective faiths. The global halal food industry has grown to over US$632 billion, and now represents close to 17% of the entire global food industry. The demand for halal meats in particular has become so great that they are poised to surpass organic meat markets in popularity. Over the years, many non-Muslim an non-Jewish consumers, who do not follow these religious Muslim and Jewish dietary guidelines, are beginning to buy halal and kosher products as they are considered to be safer and of higher quality, taste and freshness than conventional products. For in in-stance, lactose-intolerant consumers are opting to purchase kosher certified food products, which clearly tolerant indicate if a product is dairy-free. According to OU Kosher, approximately 80% of kosher products free. sold globally are purchased outside of the "traditional" Jewish market market. Vegetarianism Vegetarianism is the practice of abstaining from the consumption of meat – red meat, poultry, seafood and the flesh of any other animal; it may also include abstention from by by-products of 14 animal slaughter, such as animal animal-derived rennet and gelatin. Vegetarianism can be adopted for different reasons. Many object to eating meat out of respect for sentient life.15 Such ethical motivations have been codified under various religious beliefs, along with the concept of animal rights. Other motivations for vegetarianism are health motivations health-related, political, environmental, cultural, aesthetic or economic. There are varieties of the diet as well: an ovo-vegetarian diet includes eggs but not dairy products, a lacto vegetarian diet includes dairy vegetarian lacto-vegetarian products but not eggs, and an ovo lacto vegetarian diet includes both eggs and dairy products. A ovo-lacto vegan, or strict vegetarian, diet excludes all animal products, including eggs, dairy, beeswax and honey. Vegans also avoid animal products such as leather for footballs and goose and goose-fat for shoe polish. Potential market base The Biberatica experience strongly points to the “social” experience to grow its customer base. This is why each segment customer base (niche, passionate, general) is estimated considering the Facebook population as the starting analysis base. The esteem for each segment has been dimensioned considering search tags being compatible with the relating profile. 14 http://en.wikipedia.org/wiki/Vegetarianism The most up-to-date, butstillpartial, statistics on vegetarianism are availableat date, http://www.evana.org/index.php?id=70650 15 32
  • Criteria #Coeliac disease, #Food intolerance, #Food allergy, #Halal, #Kosher foods, Niche #Vegetarianism, #Veganism, #Gluten , #gluten #gluten-free diet #Subway (restaurant), #Slow Food, #TripAdvisor, #Cooking, #Culinary art, #Cuisine, #Healthy diet, #Tourism, #Organic food, #Natural foods, #Michelin Guide, #GamberoRosso, #The World's 50 Best Restaurants, World's Passionate #Ramsay's Best Restaurant, #Food Network, #Hell's Kitchen (U.S.), #Cooking Mama, #Recipe, #Grapefruit diet, #Diet (nutrition), #Dieting, #luxury food, #italian food lovers, #luxury experiences, #lonley planet, #food addicts, #japan food addict, #chef, #Dessert, #Brunch, #Delicatessen food #Whole Foods Market, #Alcoholic beverage, #Soft drink, #Drink, #Nutrition, #Fun, #Entertainment, #Food, #Hotel, #Tourism, #Fast food, #Pizza, #Sandwich, #Gastronomy, #Ice cream, #Wine, #Beer, #Pasta, #Fish, #French fries, #Hot dog, #Hamburger, #Coffee, #Cake, #Fruit, #Bacon, General #Potato chip, #Sausage, #Restaurant, #Breakfast, #Lunch, #Dinner, #Chocolate, #Milk, #Water, #Bread, #Hunger, #Tea, #Biscuit, #Sugar, #Vegetable, #Meal, #Eating, #Drinking, #Meat, #Cupcake, #Barbecue, #Yogurt, #Taco, #Candy Every subset is estimated joining the criteria used for the former one. The Italian market of niche consumers accounts for about2.8% of the total, worldwide niche population.16 Passionate are 4.2%, general consumers are 3.5% of the relating global and social population. With its 432,440 potential niche consumers, Italy has 16% of the total European potential market, making it one of the most suitable choices as starting country to penetrate the global market. Italy Europe Niche 0.43M 2.72M Passionate 5.61M 30.40M General 12.50M 89.14M 16 As of Feb. 24th, 2013 33
  • Asia South America North and central America, C Caribbean Oceania Africa Middle East 3.55M 1.16M 7.26M 0.37M 0.22M 0.19M 24.48M 15.88M 54.77M 3.53M 3.70M 2.63M 72.47M 55.19M 116.75M 7.80M 9.17M 6.22M TOT TOTAL "social" and active population % of total social, active population 15.48M 135.40M 917.71M 14.75% 356.75M 1.69% 38.87% Potential Italian market base A detailed analysis of the starting Italian market allows to map the most potential cities, in terms of tourism, according to the highest number of people going to restaurants. Italian Cities Roma Milano Napoli Torino Palermo Genova Bologna Firenze Bari Catania Venezia TOT Potential Restaurants 10,135 4,368 3,060 3,293 1,095 2,004 1,317 1,352 1,000 815 1,185 29,624 Niche 40,791 30,571 15,918 7,940 9,034 6,596 8,757 10,762 4,500 7,427 2,793 145,089 Passionate 3.6% 3.7% 2.8% 3.6% 3.5% 4.0% 4.6% 5.8% 3.5% 3.9% 5.5% 3.7% 505,679 356,129 259,217 95,527 119,608 75,191 85,068 85,878 63,922 88,761 24,215 1,759,195 General 44.4% 1,138,282 42.9% 830,358 46.0% 563,812 43.6% 219,093 46.3% 258,467 45.4% 165,504 44.3% 192,080 46.4% 185,150 49.3% 129,786 46.8% 189,524 47.6% 50,833 44.8% 3,922,888 customers per restaurant 112 190 184 67 236 83 146 137 130 233 43 132 The per capita potential customer base per restaurant in town indicates that the two most potential towns to be penetrated are Palermo and Catania, in Sicily. If we focused, in the beginning, on general restaurants, we should plan a penetration strategy coherent with the following ranking. Potential customers/restaurant City 34
  • 236 233 190 184 146 137 130 112 83 67 43 Palermo Catania Milano Napoli Bologna Firenze Bari Roma Genova Torino Venezia But we establish to start with niche markets. We do not have statistics upon the local distribution of niche restaurants and assume that they are most spread in biggest town, namely Roma (more than 40,000 potential consumers per day) and Milano (more than 30,000). 35
  • Economics Since the distribution of niche restaurants cannot be known, the economics will be estimated according to a cost model. Revenue streams will be estimated assuming a price for the mon monthly fee to be exposed to restaurateurs. An estimate of the number of restaurants necessary to cover the expenses will allow to establish the number of restaurants needed to have break even and pay back results. Following are assumptions and relating figur on costs. figures SOFTWARE Year 1 (development and maintenance) Web Site Development, test and maintenance Domain and resources Business logic Back end Content management Database Design Maintenance Smartphone App Development, tests and maintenance Hardware TOT COSTS Year 2 Year 3 € € 30,000 100 € € 50,000 1,000 € € 50,000 5,000 € € 20,000 10,000 € € 50,000 20,000 € € 50,000 20,000 € € 30,000 5,000 € € 50,000 10,000 € € 50,000 20,000 € € 50,000 3,000 € € 50,000 5,000 € € 50,000 5,000 € 148,100 € 236,000 € 250,000 SALES Year 1 Year 2 Salesmen Fixed costs of commercials Variable provision on signed contract ariable 0,5 € € 1,620 € € Travel cost Travel cost efficiency On-line contracts (no commercial) € 11,880 0% 0% TOT COSTS € 13,500 Year 3 1 50,000 14,742 2 € 100,000 € 71,280 € 102,960 30% 30% € 475,200 30% 50% € 110,770 € 301,960 36
  • OPERATIONS 1 Year 1 (pre-sales, networking, call center) Worked days/year FTE on pre-sales-networking Potential interested contacts/day Potential interested contacts/year Closed contracts by sales Closed contracts Fixed cost of call center networking (per FTE) ixed Variable for closed contracts TOT COSTS Cost per closed contract 180 1 0,3 54 20% 11 € € € ADMINISTRATION Administration (executive) FTE Administration cost per month TOT COSTS € € 540 4,540 420.37 € € € € € SERVICE PROCUREMENT 180 3 4,0 2160 22% 475 € € € 11,800 131,880 277.53 € € Year 3 1 1 4,700 56,400 2 4,700 56,400 € € Year 2 1 0.1 3,200 2,000 3,000 43,400 € € € € € Year 1 € € € Year 3 Year 2 Year 1 (editing, translation, accountant) Translation costs Initial set up costs TOT COSTS 180 2 1,3 468 21% 98 € 40,000per year 000per € 3,440 € 83,440 € 849 49.00 Year 1 OPERATION 2 Editing/content management FTE Restaurant-content/FTE/day Editing/content management cost per month One shot infrastructure expense External accountant (per year) Ordinary management/infrastructure costs TOT COSTS Year 2 1 1.0 3,200 2,000 4,000 12,000 56,400 Year 3 3 0.9 € € € € € Year 2 918 5,000 5,918 € € € 8,354 8, 5,000 000 13, 3,354 9,400 112,800 9,600 2,000 5,000 12,000 134,200 Year 3 € € € 40,392 5,000 45,392 Here we consider that the three years target of 475 restaurants corresponds to about 3% of restaurants in the 11 biggest Italian towns. The following cockpits summarize revenues and costs figures. In Year 2 and 3 we assume a premium price of 20 € will be charged for supporting editing (con (content management) activity for those restaurateurs (assumed 2% on year2, 5% on year 3) want wanting it to start using the service (still for free for the first three months). Revenue Sources Year 1 Monthly fee per restaurateur € 50.00 Premium services (one shot) € - Year 2 € 50.00 € 20.00 Year 3 € 50.00 € 20.00 .00 37
  • Months of free use 3 3 3 The contribution of software development will decrease as long as the customer base grows, while that of operations (FTEs dedicated to content management and editorial activities related to menus keeps balanced. Service procurement is mostly related to translations and costs grow variably. COSTS Year 1 R&D SG&A (Sales and Administration) Operations TOT COSTS Year 3 Year 2 € 148K 54% € 236K 42% € 250K 26% 70K 26% 167K 30% € 415K 42% € 54K € 272K 20% € 153K € 556K 28% € € 311K 32% 976K Assumptions on revenues are based on hypothesis made in former scheme NETWORKING NETWORKING-CALL CENTER and are here summarized, together with financial synthesis figures. Financial Cockpit Year 1 Year 2 Year 3 Restaurateurs Revenues Costs 11 98 475 € 37K € 359K € 1,830K € 124K € 320K € 726K EBITDA € (86)K € CAPEX € 148K € 236K € 250K OFCF € (235)K € (198)K € 853K Cumulated OFCF € (235)K € (432)K € 421K IRR 38K € 1,103K 53% According to our estimate, Biberatica would start generating cash flow during year 3 giving, by the end of same year, a return rate of more than 50%. 38
  • The Team Daniele Pes, 39, member of the Italian association Un puntomacrobiotico. Executive MBA cum . laude at MIP business school and Software Engineer at Politecnico di Milano he works as Risk Milano, Manager and member of the Innovation team for the Strategy Office of FastwebS.p.A. wherein FastwebS.p.A., 2011 he won the innovation contest named Innovaction with a project on telemedicine. He is member of the board of Innovits a non-profit organization active in innovation. In 2012 He Innovits, profit participated in the Startup School of Mind The Bridge Foundation (San Francisco). He formerly pated worked as Marketing Product Manager for ZucchettiAxess TMC and as Software En Engineer for INQUAS, a start up and spin off of UniversitàdegliStudi di Milano Bicocca He also worked as , Bicocca. Software Engineer in R&D for Honeywell Honeywell. Giovanni Maieli, 31, is the CEO of ILIENSES S.r.l., a company which focuses on marketing, , communication and publishing. He graduated in Languages and Literatures (Japanese and Spanish) at the University of Rome "La Sapienza" and obtained a master in Marketing and Communication at the European Institute of Design. Honorary member of AEGEE-Cagliari, he coordinated the "Erasmus for Young . e Entrepreneurs" Project of ConfindustriaSardegna, the Italian employer's federation. ConfindustriaSardegna, He contributed funding YOUSARDINIA, an Association focused on European project YOUSARDINIA, development. Maurizio Atzori, 27, graduated cum laude in Cultural Cultural-Linguistic Mediation from the University of istic Rome "La Sapienza" works full time on Biberatica. He is a member of the Italian branch of the Slow Food Association and formerly served as secretary and president of the Association AEGEERoma, organizing the logistics, coordination and development of several international events. In , 2009, the work pursued by AEGEE AEGEE-Roma was formally acknowledged by the President of Italy, Giorgio Napolitano. He has a solid background on Information Technology (University of Pisa and he worked for (University Pisa) Acotel Group S.p.A. (Noverca, FlyCell, and others) as Helpdesk Administrator and intern at the Network Operations Center. In 2012, he participated in the Startup School organized by Mind the Bridge in San Francisco, California. 39