1. 2013
Café
di
Nofà
David Simon
BUSINESS INITIATION PLAN
This plan is created for the sole purpose of guiding the initiation of Café di Nofa from concept to operations and
to provide insight to how this will be accomplished for investors who have an interest in ownership in this cafe.
2. LEGAL PAGE
NON-COMPETE, NON-SOLICITATION, NON-DISCLOSURE AGREEMENT
______________________________________________________________________
__________________________
This NON-COMPETE, NON-SOLICITATION, NON-DISCLOSURE AGREEMENT (the
"Agreement") is made and effective in the State of Kuwait on_________________by
and between:
Mr. David M. Simon "Owner", in his capacity as the General Manager and the minority owner of
DarNofa General Contracting & Trading Company (the "DGCTC"), and
_____________________________________________, "Counter-party", in his capacity
as___________________________________________________________
on behalf of Mrs. Nouf Al-Shatti, the majority owner of the DGCTC.
Both hereafter called individually as a "Party" or collectively as the "Parties".
RECITALS
WHEREAS, Owner has identified certain potential transactions, business endeavors, or other
business opportunities, as set forth in this Business Plan (collectively, the "Opportunities") and
wishes to come to a mutually beneficial agreement to pursue the Opportunities;
WHEREAS, Owner wishes to discuss a potential working relationship with respect to the
Opportunities with Counter-party; and
WHEREAS, Owner will not discuss the Opportunities unless and until Counter-party enters into this
Agreement;
NOW, THEREFORE, in consideration of the promises and the covenants, conditions and
agreements contained herein, the Parties hereto agree as follows:
ARTICLE 1 - Definitions: As used in this Agreement, the following capitalized terms shall have
the meanings set forth below:
"Person" means an individual, a corporation, a limited liability company, a partnership, an
association, a trust or other entity or organization, including, without limitation, a government or
political subdivision or an agency or instrumentality thereof.
"Affiliate" means, with respect to any Person, any other Person directly or indirectly controlling,
controlled by, or under common control with the first Person.
ARTICLE 2 - Purpose of the Agreement: Counter-party acknowledges to entering into this
Agreement in order to induce Owner to provide information with respect to the Opportunities in
anticipation of working together to pursue the Opportunities and to protect a legitimate business
interest of the Owner. In entering into this Agreement, the Parties are contemplating that they will
come to a formal arrangement with respect to pursuing the Opportunities together. Counter-party
agrees not to pursue the Opportunities other than in conjunction with Owner.
3. ARTICLE 3 - Non-Compete Covenant: Counter-party agrees that, from the date hereof until the
fourth anniversary of such date, Counter-party will not;
a) pursue the Opportunities, either directly or indirectly, for Counter-party's own account, or for
the account of any other Person in the capacity of an officer, director, manager, employee or
contractor of such Person, in any business that will pursue the Opportunities (except in either case
as a stockholder holding less than a one percent interest in a corporation which is traded on a
national exchange or over-the-counter); or b) solicit, or attempt to solicit, directly or by assisting
others, any Person to pursue the Opportunities other than Owner.
ARTICLE 4 - Non-Disclosure Covenant: Counter-party agrees to hold in confidence at all times
after the date hereof the Opportunities, together with all pricing, bidding and other strategic
information developed in conjunction with pursuance of the Opportunities and shall not disclose,
publish or make use of the Opportunities at any time after the date hereof, without the prior
written consent of the Owner. In all cases, both Parties affirm that they shall implement this
Agreement in good faith and shall take all necessary steps to see its proper execution.
ARTICLE 5 - Term and Termination. This Agreement shall terminate on the fourth anniversary
of the date of this Agreement.
ARTICLE 6 - Severability: If any provision contained in this Agreement shall for any reason be
held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement, but this Agreement shall be construed as if
such invalid, illegal or unenforceable provision had never been contained herein.
ARTICLE 7 - Equitable and Alternative Relief:
a) Counter-party acknowledges that Owner may be irreparably harmed by any breach of this
Agreement. Counter-party agrees that DGCTC shall be entitled to injunctive relief requiring specific
performance by Counter-party of this Agreement, and Counter-party consents to the entry thereof.
b) Counter-party agrees to pay to Owner a commission equal to 25% of the gross profits that
Counter-party derives, either directly or indirectly, from pursuing the Opportunities without Owner,
in contravention of this Agreement.
ARTICLE 8 - No Waiver: No failure or delay by the Owner in exercising any right, power, or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right, power, or privilege preclude any other or further exercise thereof.
ARTICLE 9 - No Further Obligation: This Agreement does not obligate either the Owner or
Counter-party to enter into the Transaction. At any time prior to the execution of a definitive
agreement between the parties with respect to the Transaction, either Party may voluntarily
withdraw for any reason from discussions with the other Party concerning the Transaction by giving
the other Party written notice to such effect; provided, however, in any event, the Counter-party
shall remain subject to the obligations set forth in this Agreement. This Agreement may be
modified or waived only in writing signed by both parties.
ARTICLE 10 - Successors and Assigns; Third-Party Beneficiaries: This Agreement is binding
on Owner and Counter-party and their respective successors in interest. Neither Counter-party nor
Owner may assign its rights and obligations under this Agreement without the prior written consent
of the other Party. There are no third-party beneficiaries of this Agreement, and any intention to
afford any right or benefit under this Agreement to any third party is specifically disclaimed.
4. ARTICLE 11 - Enforceability: If one or more provisions of this Agreement shall be held
unenforceable, such unenforceability shall not affect any other provision of this Agreement, which
shall be construed as if such provision had never been a part hereof.
ARTICLE 12 - Choice of Law: THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF KUWAIT. THE PARTIES AGREES THAT ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATED IN ANY WAY TO THIS AGREEMENT SHALL BE
BROUGHT SOLELY IN A COURT OF COMPETENT JURISDICTION SITTING IN KUWAIT CITY,
KUWAIT.
ARTICLE 12 - Counterparts: This Agreement may be executed in several counterparts, each of
which is an original and all of which constitute one and the same Agreement.
ARTICLE 13- Proper Handling: This plan must be returned to the Owner after 72 hours of
receipt unless otherwise noted by the Owner on the signature page of this agreement. Accordingly
the contents of the plan must be kept confidential with the person(s) in authorized possession of
this plan as annotated and signed on the following signature page. Re-printing, copying, or any
other such duplication or re-creation, whether in part, or in whole, is absolutely prohibited with
applicable sanctions and penalties to be pursued to the fullest extent of the local law as well as
stated herein.
[Only Signature Page to Follow.]
5. -----------------------------------SIGNATURE PAGE----------------------------------------
___ DS
___ ___ This Agreement has been review and corrected by both parties.
___ ___ Both parties agree the Agreement is sound and equitable.
___ ___ Both parties agree to be bound by its terms.
This Agreement is considered binding and official, as signed on this ______ day of __________
2013, in the presence of the below witnesses. Date of return of plan is NO LATER THAN the End Of
Day, on the ______ day of __________, 2013.
________________________ ________________________
David M. Simon
General Manager
DarNofa GCTC
________________________
Nouf Al-Shatti
Chairman & Owner
DarNofa GCTC
________________________ ________________________
Witness: Witness:
Civil ID: Civil ID:
Phone: Phone:
This is a business plan. It does not imply an offering of securities or entitlements.
Plan number _____ of _____
8. 1.0 Executive Summary
Introduction
Café di Nofà is opening under the operation as a combination Italian Cafe & Espresso Bar, geared
towards high quality VIP style service and premium Food & Beverage (F&B) offerings, where customers
may choose to enjoy themselves in a sit down and slow dine, or pick-up-and-go express style setting.
It is the purpose of this business plan to lay the foundations of the cafe's mission, vision, and values
as well as the strategy to the cafe's principal investors on how we will guide the development of
the cafe through initiation to sustained operations with the quickest Return On Investment possible.
The Cafe
The store will be located in a very high traffic area such as the Avenues Mall, the 360 Mall, or other
like location.
The store will offer high quality F&B offerings that are demanded in the market and exist currently
without high competitive saturation.
We expect a high degree of expertise and enthusiasm from our team and to ensure we will obtain this,
management will implement training programs, empowering policies, employee development, and
incentive programs geared towards retention of the best employees.
Sourcing is critical for any enterprise, especially a F&B operation. The Mokito brand offering the
Mokito Bianco, Mokito Verde, and the Mokito Rosso Italian brand of coffee, a premium range of Italian
roasts, will be our product of choice for our coffee drinks.
Additionally we will utilize Italian brand ingredients imported at no additional cost through name brand
Supply Chain Managers and Food Distributors.
The Market
Consumer expenditures for coffee, baked goods, and F&B offerings in general are on the rise in Kuwait
and we expect this trend to continue as budget surpluses continue in the economy and employment is
peaking around 98% in Kuwait.
Also, through our research, we have found the breakfast category especially under-represented and
will direct a large portion of our strategy and focus towards an optimal breakfast menu in order to
capture this valuable segment in order to lead it to our more quality food offerings later in the day.
We expect sales to increase steadily as Kuwait's population grows as well as our target market
segment.
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Trends are also in our favor. There are four major trends at work in our market:
Socializing on the Rise, as more people seek non-conventional opportunities people are becoming
more social and open in Kuwait.
Gourmet coffee and food offerings are seeing a rise in demand as people are losing the luster for
large brand name chains.
The gourmet European coffee trend is catching on exponentially in the Middle East as well as the
Italian style is completely unrepresented.
Our main market segment for marketing purposes are Women (Ages 20-38) as they are
substantially under-represented in Kuwait. We believe marketing to this segment will be a key
performance requirement necessary to really propel our bottom line.
Financial Projections
Café di Nofà expects to start posting profits in the second Fiscal Year (FY2) while following the plan
described herein.
Café di Nofà aims to finance the entire startup operations with a financial investment partner(s) so no
loan interest will be incurred or heavy loan repayment schedules necessary.
The following are critical assumptions that are calculated in this business plan:
A positive economy with continued budget surpluses in Kuwait
A continued 98% employment rate
Adherence to a well-planned cost and risk mitigation strategy
Purchases using value management techniques
Modest growth, positive cash balance, and reinvestment of profits
Chart: Highlights
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1.1 Objectives
At Café di Nofà our objectives are simple:
1. We will establish an Italian style cafe and coffee bar with authentic Italian F&B offerings.
2. We will strive to obtain the highest customer service rating in Kuwait from our customers.
3. We will strive to obtain the highest satisfaction for Cost vs. Quality, of our F&B offerings.
1.2 Mission
Café di Nofà's mission is to provide the best dining experience to its customers by providing authentic
Italian food and coffee with exceptional customer service in an atmosphere rich with culture.
1.3 Keys to Success
We believe our the keys to succeeding in this venture are:
1. To offer premium Italian coffee and high quality Italian food offerings not found in Kuwait.
2. To provide a truly comfortable, inviting, and soothing environment based on Italian decor.
3. Maintaining a reliable well trained staff with prior experience in Italian Cafes and operation as well
as authentic Italian food preparations.
4. Offering exceptionally quick and highly streamlined service in Kuwait, to all of our customers, during
operational hours.
5. Detailed planning and focused preparation on our objectives, goals, mission, and ultimately our
vision.
2.0 Company Summary
Café di Nofà's is a startup business venture initiated in order to address the less than
satisfactory F&B service that exists in Kuwait, the lack of authentic Italian F&B offerings,
and close the gap on targeting, catering to, and promoting of women in Kuwait.
The Cafe will be co-owned by Nouf H.M. Al-Shatti, David M. Simon, as well as a possible third
parties.1
This venture will be funded through either conventional means of bank loans, private loans, or
personal investment funding which may result in further shared ownership, or a combination of all of
these above.
We are seeking to move fairly quickly on this venture, financing, and investment, in order to open and
be operating by the summer of FY 2013.
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2.1 Company Ownership
Café di Nofà is owned by Nouf H.M. Al-Shatti, Chairman of the Board (DarNofa Company),
and David M. Simon, General Manager (DarNofa Company).
If an investor would like to seek an opportunity to be part of this offer we can provide to them such an
opportunity for a capital investment to fund the start-up cost of this venture.
Ms. Nouf H.M. Al-Shatti owns no less than 51% interest in the cafe.
Mr. David M. Simon owns no less than 4% interest in the cafe.
Possible third party investors (up to 45%) in the cafe.2
**The investment required for any person will total no less than 100,000 Kuwait Dinar.3
The investment and ownership is decompiled as follows:
David M. Simon, Chief Executive Officer (CEO), investment is sweat equity in the first and second year
of employment as the CEO, valued at 150,000 Kuwait Dinar.
Nouf Al-Shatti, General Manager (GM), investment is sweat equity in the first and second year of
employment as the GM valued at 60,000 Kuwait Dinar.
Third party investor/owner may carry up to 45% ownership for between three-quarters to full capital
investment.
(Upon start of the fourth year distributions may be awarded as no greater than 50% of the net profits.
Additionally a 5 year buyout period is in effect requiring all parties to commit for five full years before
requesting to be bought out. Buyout schedule to be determined between stakeholders at a later time)
2.2 Startup Summary
Café di Nofà will require sufficient capitalization to prepare for the first year of sales and
service. There is a substantial amount of UP-FRONT investment for those looking to invest as this is a
premium F&B company which will require all current and long term assets to be purchased prior to
commencing operations and generating sales revenue. Further information on startup, capitalization
and financing, are contained later in this plan. (See Financial Plan, pg. 40, for details)
The majority of the Cafe's assets will reside in current and long term assets. The opening day cash on
hand shall be KWD 1000 with a KWD 14,000 cash availability in the financial account belonging to Café
di Nofà.4
We feel our estimates on startup costs, which based on personal investigation, currently reflect a +/-
of 15% margin of error and will resolve their accuracy through consultation with IPSOS or other like
Market Research Companies upon further progress and action of this plan.
As shown below we have provided our projections for successful startup operations expenses which we
believe allow Café di Nofà to be self-sufficient and profitable at the end of year two.5
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Table: Startup
Startup
Requirements
Startup Expenses
Consultant Fees (Market Study) KWD 3,000
Consultant Fees (Product Offerings, Italian
Authenticity, Supply Chain Management)
KWD 2,000
Consultant Fees (Secrets of Italian Pastries and
Coffee)
KWD 2,000
Legal Fees KWD 3,000
Licensing & Permits KWD 2,000
Interior Design (Plan & Rendering) KWD 5,000
Interior Design (Fitting Out) KWD 200,000
IT (Point of Sales System) KWD 8,000
IT (Other IT Systems) KWD 6,000
Key Money KWD 250,000
Stocking & Purchasing KWD 20,000
Training & Certifications KWD 4,000
X,Y,Z Items (Unidentified Expenses) KWD 25,000
Total Startup Expenses KWD 530,000
Startup Assets
Cash Required KWD 15,000
Startup Inventory KWD 10,000
Other Current Assets KWD 35,000
Long-term Assets KWD 15,000
Total Assets KWD 75,000
Total Requirements KWD 605,000
Chart: Startup
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3.0 Products
Café di Nofà offers premium Italian coffee, fresh-made authentic Italian pastries and panini,
as well as specialty plates, and VIP meal offerings.
Our coffee:
Mokito Bianco Espresso, Whole Bean Coffee, 2.2-Pound Bag available on import
Mokito Verde Espresso, Whole Bean Coffee, 2.2-Pound Bag available on import
Mokito Rosso Espresso, Whole Bean Coffee, 2.2-Pound Bag available on import
Our Pastries:
Fresh Ingredients, Made-Fresh, Authentic Italian recipes and style.
Our Panini:
Fresh Ingredients, Made-Fresh, Authentic Italian recipes and style.
Our Specials:
Top notch value, fresh ingredients, Authentic Italian Specials offering you the most satisfaction for
your money.
Our VIP Courses:
Menu Prepared by Award Winning Italian Chef, with only the highest quality and freshest ingredients
available in the region.
4.0 Market Analysis Summary
Café di Nofà has learned by owner experience in the local market there exists several niche
groups key to this business success. In the following sections we will highlight and discuss
these groups as well as provide a detailed analysis of why we think each segment
represents a vital marketing point.
Our selected micro level target market segments are:
1. Financially well-to-do women
2. Financially wannabe well-to-do women
3. Modern / progressive women
These groups provide a unique opportunity to target three segments of the market that have not been
addressed in Kuwait .
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The first group accounts for a small target audience but will represent a larger amount of sales
revenue through customer management and top notch customer service and products.
The second group represents a larger target audience than the first and a smaller amount of per unit
sales revenue but higher volume total cash sales.
The last group represents the largest market for which we hope to capture the remaining number of
unclassified target audience who will range in between both ends of the spectrum described above.
As you will see in our Market Segmentation as well as our Target Market Segment Strategy (pg.
10) we provide a description as well as analysis on what the significance is for each segment and why
we are sure this market strategy will succeed.
4.1 Market Segmentation
Our Market Segmentation is divided into Total Kuwaiti Population, Kuwaitis (Age 20-38 both
M/F), Married Kuwait Females (Age 20-38), Single Kuwait Females (Age 20-38), Single
Kuwait Females (Age 20-38)(Affluent), Single Kuwait Females (Age 20-38)(Wannabe),
Single Kuwait Females (Age 20-38)(Modern/Progressive).
Total Kuwaiti Population (TKP) - the entire population of Kuwait Citizens living in Kuwait, from
ages 1-80.
Kuwaitis, Age 20-38 (KA20-38) - the entire population of Kuwaitis ranging in ages 20-38.
Married Kuwait Females, Age 20-38 (MKFA20-38) - the entire population of Married Kuwait
Females ages 20-38.
Single Kuwait Females, Age 20-38 (SKFA20-38) - thie entire population of Single Kuwait Females
ages 20-38 which we are targeting.
SKFA20-38 (Affluent) - Socially affluent Single Kuwaiti Females between the ages of 20-38. They
represent the far right range of wealth on the micro level of the SKFA20-38 segment.
SKFA20-38 (Wannabe) - Social wannabe affluent Single Kuwaiti Females between the ages 20-38.
They represent the left range of wealth on the micro level of the SKFA20-38 segment.
SKFA20-38 (Modern/Progressive) - Socially moderate Single Kuwait Females between the ages of
20-38. They represent the range from extreme left and right and everything between on the SKFA20-
38 segment.
STATISTICAL ANALYSIS
According to CIA Handbook, Local Kuwait Government Census, and Samples of the Local Populace, the
rate of Kuwaitis within our target market are continuing to grow due to several factors. (This growth
trend in our target market is expected to continue to grow for the next 5-10 years)
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Below are the factors we have found that will add to the growth of our target market:
Women's Suffrage: Women's rights in Kuwait have seen a rise in more opportunistic movements
for women which have resulted in more equality being granted to them which has had a very large
impact on the ability of the younger generation to pursue lifestyles that were not available to their
parents. This has directly resulted in the delay of marriage as there is no longer a requirement for
women to marry for financial stability which has left them open to pursue their dreams and
desires.
College Degree Significance: There is an increasing demand for college educated individuals
(certifications) in Kuwait much like what was experienced in America from 1995 until 2010. This
push for degree's and certification is bringing women in contact with more schooling which requires
more focus and time which is resulting in a delay of marriage, or a divorce from early marriage in
some small instances.
Modernization of Kuwait: Kuwait is modernizing its country with development in ideologies and
practices currently used in the Western world which include things like project management,
human resource management, knowledge and information management, and many other styles of
business and economic tools and practices. This modernization if putting more opportunity and
demand for educated, innovative individuals, which is resulting in the full time efforts of young
women to fill these spots and needs.
Education of Youth: The education of youthful women has directly resulted in their being
afforded more economic opportunity as well as alternate lifestyle choices which has also, indirectly,
raised the age of marrying and child bearing. They are becoming more in tune with their abilities,
their desires, and their drive to succeed which is placing maternal needs secondary to other more
immediate needs.
(For these reasons it is expected the growth rate of single women will continue to rise from between 5-
8% annually for the next 3 - 5 years.)
According to the table our figures show by spending a marketing effort to 91, 000 targeted individuals
we will be able to drive the market of 535,000 individuals to our doors as you will see explained in the
Target Market Segment Strategy (pg. 10).
Table: Market Analysis
Market Analysis
2013 2014 2015 2016 2017
Potential Customers Growth CAGR
TKP 4% 1,190,841 1,232,520 1,275,658 1,320,306 1,366,517 3.50%
KA20-38 6% 534,503 566,573 600,567 636,601 674,797 6.00%
MKFA20-38 5% 148,546 155,973 163,772 171,961 180,559 5.00%
SKFA20-38 7% 91,045 97,418 104,237 111,534 119,341 7.00%
SKFA20-38 (Affluent) 6% 13,656 14,475 15,344 16,265 17,241 6.00%
SKFA20-38 (Wannabe) 14% 18,209 20,758 23,664 26,977 30,754 14.00%
SKFA20-38
(Modern/Progressive)
4% 59,180 61,488 63,886 66,378 68,967 3.90%
Total 4.57% 2,055,980 2,149,205 2,247,128 2,350,022 2,458,176 4.57%
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Below is a visualization of the total market in Kuwait that would likely patron our Café as well as a
comparison against the whole population of Kuwaitis to the target segment:
Chart: Market Analysis (Bar)
4.2 Target Market Segment Strategy
Our Targeted Marketing Plan is developed with the understanding and analysis of
interaction within the local F&B market in Kuwait which is, relatively speaking, like no
other.
As shown in our figures we are going to focus our marketing efforts and attentions on 91,000 SKFA20-
38 customers in order to obtain a capture of 535,000 total customers as our main market.
The way we will be able to perform expending marketing efforts on such a small group to obtain such
an exponentially larger customer capture works in line with Social Network Theories. In our plan
the assumption which drives the success is men prefer to eat at a cafe where pretty single women
eat. In order to drive the men to our restaurant we will cater to the women. There are many reasons
this form or marketing will work which must be left outside the scope of this plan due to reasons of
privacy, security, and sensitivity.
As mentioned in the Market Segmentation section, the market segment that we will target first is
single women between the ages of 20-38; and secondly all other women between the ages of 20-38.6
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1. Single Women (Ages 20-38) - We feel this target audience is the most powerful because it is a
driving force behind purchasing and patronage at F&B locations in Kuwait. It also happens to be a
very poorly represented target audience because of past rules of thumb which are increasingly
outdated and becoming lost with new generations.
2. Women (Ages 20-38) - Although not of the female segment aged 20-38 will be single we know
the illusion of availability is equally as powerful a driving purchasing or patronage choice in Kuwait.
We want to ensure we capture all of the female population as they make up a large portion of
purchasing power that is quite underappreciated currently.
METHODOLOGY
We calculate by combining these two segments in the market and targeting them with our marketing
strategy, our dining experience, and our customer service, we can drive a significant portion of the
male segments to our Cafe with little effort spent on marketing to them. This would drastically reduce
expenses while generating a nominal effect for customer capture.
From a psycho-social standpoint, men generally will continue to go places and do things they might
not otherwise prefer in pursuit of Maslow’s Hierarchy of Needs. Conversely, women will not entertain
venues or services they do not prefer in the pursuit of their needs.
By providing an atmosphere that is women first, and men second, we will attract the female clientele
as our primary function and the male clientele will be a reaction to the first.
SOCIAL ANALYSIS OF REPRESENTED MARKET SEGMENTS
Total Kuwaiti Population (TKP) - This is an important figure to have as a baseline for customers on
the outlying ranges. By showing this total population we can see how much of this segment is made
up of by its female population.
Kuwaitis, Age 20-38 (KA20-38) - the entire population of Kuwaitis ranging in ages 20-38 is what
we are hoping to attract through a careful segmented marketing strategy on a micro level targeting
the groups that have the most influence on a macro level. We feel it is not necessary to market to the
whole segment if you can get part of the segment to exert influence over the other.
Single Kuwait Females, Age 20-38 (SKFA20-38) - this is the market segment we are targeting
under the assumption their needs are not being represented and they will respond to a restaurant who
recognizes those needs and provides for them to be met.
In order to affect macro-level influence we have targeted the micro level segments represented below.
We feel these three groups give excellent micro level insight into the segments of the Single Kuwait
Females in Kuwait ages 20-38.7
These segments and understanding their significance are essential in order to dominate a macro level
influence with minimum expenses in marketing and targeting. The more details regarding these
segments are addressed in the Marketing Strategy (pg. 22) and the Sales Strategy (pg. 23)
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SKFA20-38 (Affluent) - These women are the pinnacle of the pyramid...The top of the food chain
so to speak and the most desirable customers for the sheer attention they bring when seated
having a meal. All the men see them, and all the men want to date them. They hang out in droves
and stare without shame as these women walk in, sit down, and eat. Not only will these women
stand out, they will go out of their way to be recognized for their status. Which is why we have
offered a VIP menu and sitting area for these women and their friends.
SKFA20-38 (Wannabe) - Although not the real deal like the Affluents, these women try their
best, and put on a very good showing of being someone of affluence. They buy the same expensive
clothes, purses, jewelry, and mimic them in every way. For them however you can tell in the places
they dine, and the cars, and homes they keep. However our objective is NOT to distinguish them
as a wannabe. Instead our goal is to bring them in, sit them in the same restaurant as the affluent
women, give them the same great service as the affluent women, and even offer them Specials
from the regular menu as well as the express bar with panini and coffee so they can eat and enjoy
without breaking the bank.
SKFA20-38 (Modern/Progressive) - These women care little for looking affluent or for looking
too casual. They range in between both ends of the spectrum and will usually be affluent and not
care to show it, or not as well off and not attempt to hide it. Either way they are looking for quality
food, exceptional customer service, and attention to their needs, which we will provide.
4.3 Industry Analysis
In analyzing the local F&B industry in Kuwait we have determined there are two re-occurring themes
existing here. These themes best represent what is wrong with the service industry which are poor
customer service and low value experience. Overall the F&B industry is incredibly non-flexible in
its offerings, pricing, accommodations, etc.
For instance if you are looking to add or subtract items from certain meals, or perform a product
substitution you cannot. You are forced to buy the meal and an-add on. This results in literal metric
tons of food being wasted every year in Kuwait because people are given both what they do not want,
and what they want.
Additionally if you pay for a glass of soda, or juice, you are not entitled to a free re-fill, or even a cost
reduced refill. This is by definition part and parcel of expected service in the Western
Hemisphere. The reason for this is it ensures a higher amount of unit sales because it is enticing to
know you have either unlimited or cost reduced re-fills. It is estimated this results in a loss of nearly
18% in most restaurants beverage sales.
Another excellent example is the lack of adaptability in the food offerings from restaurant to
restaurant. For instance if you are at a pizza shop, you might find it a 5 minute ordeal talking to the
waiter, then the cook, then the manager just to get a pizza made that is not on the menu. This is
completely in-congruent with the very underlying principle of the F&B industry which is service.
As well you may walk into a restaurant that is completely or nearly empty where certain tables are
reserved for customers that "never show up" in order to create a show of importance and privilege
where there is none. The making of desirability through exclusivity is more than just putting a
reserved sign on a seat in an empty restaurant. That only serves to drive people away with your lack
of business acumen.
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Worst of all is what we refer to the "Tough Guy" syndrome permeating Kuwait. This consists of a Cafe
filled with men staring at every female that walks by with such audacity it makes the air tangible
around you. This syndrome prevents most of our target market from going to a cafe and enjoying
herself without having to constantly be looked at, whispered about, and propositioned by the men.
The two categories we feel fit best for the above examples are explained further in detail below.
Poor Customer Service - This is a repeating theme in Kuwait. The service here is quite terrible. The
reason is exceptionally easy to understand. Cheap labor imported labor. There are a multitude of
reasons why hiring "Cheap Imported Labor" is the underlying cause to the terrible customer service
experienced in the F&B industry in Kuwait which can be found in the Appendix for further
understanding. (See 'Cheap Imported Labor Induced Customer Service Death' for more
details)
Low Value Experience- This may seem hard to gauge but the formula which exists is quite
simple. Quality vs. Cost = Value. The quality of the F&B experience provided in Kuwait following one
of the following categories. High Quality, High Cost which results in Moderate Value; or Low Quality,
High Cost which results in a Negative Value; or Low Quality, Low Cost which results in a Moderate
Value. There is not place in Kuwait that offers High Quality, Low Cost which will result in a High
Value. Café di Nofà will be the first. In order to understand this concept please see Annex "Quality
vs. Cost = Value"
After reviewing the Quality vs. Cost = Value appendix we will then have the assumption fixed that
people will chose to optimize their value every time. If this is true, then by providing a higher
value to the customer we will increase customer base, revenue, and eventually maximize our
profits. This is the heart of our plan.
(During the four years of living in Kuwait as an ex-patriate, and having operated in the F&B industry in
America, the owner sought to fill the a need existing in Kuwait for VIP treatment of its customers that
is commonly found in high end restaurants around the U.S.)
(Additionally it was found through research of virtually every F&B provider in Kuwait, there are less
than 10 restaurants claiming to be Italian in nature, and only one of them that has F&B offerings
anything remotely close to what you would experience in Italy.)
(Also it was found through trial of venues that nowhere existed a high tech solution for
ordering & paying on a mobile device, being able to charge your mobile device while you eat, or even
use wi-fi for free while you eat.)
(Finally it was found through observation at all of the 60+ restaurants attended by the owners, all of
the restaurants failed to cater to women. In fact, it is quite the contrary whether intended or
unintended, as they produce a hostile atmosphere to women through their marketing effort.)
4.3.1 Competition and Buying Patterns
In order to create a cafe that will be truly remarkable we must understand the failures of
the local market F&B providers and review and understand the mistakes they make. We
must also understand what people buy and why as well as how we can compete with those
already in our market.
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BUYING PATTERNS
The buying patterns for Kuwait have been studied by the company owners in great depth.8
These
patterns consist of "whatever is fashionable/trendy" which is a relative term.
Let us take a look at an excellent example of a local F&B organization in Kuwait which demonstrates
this very principle we will avoid. Please observe the photographs below.
This photograph was taken in June, on the 28th, a Thursday around 630pm.
This photograph was again taken on a Thursday, at 630pm, January 10th.
Now do you notice anything about the two photographs? One photo is packed with people waiting in
line to get food and tables packed to full. Another photo has nothing but workers standing around.
Why is this you might ask? The opening of other trendier restaurants happened in November at the
Avenues Phase III with the Grand Avenues. In depth analysis of this failure is contained in the Annex
for your review. (See the 'So Sorry Shake Shack' Story for details)
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In short the Shake Shack failed to provide a) Good Customer Service and, b)Value.9
For a new restaurant it can afford to ride the trendy wave and so long as it stays trendy it will continue
to enjoy higher than average revenues. However if it stops being trendy then it must rely on its Value
to the Customer. If its value is low, but its trend is high, it can sustain. If its trend is low, and value
low it will go out of business.
Our goal is to break this cycle of customer capture. We aim to build our clientele not through hype or
trend. We do not plan to provide a plethora of brand name offerings and frivolous showmanship and
branding imagery to lure our customers. Instead we will use a unique, warm, customer service
oriented, premium dinning experience that caters to an ignored market segment.
COMPETITION
Our competition consists of the following categories which will be explained further in detail: Large
Western Chain Cafe's; Small Regional Chain Cafe's; Small Independent Cafe's.
1. Large Sized (Western Chains) are those chains which are classically categorized as franchises or
similar which include cafe's like Starbucks, Caribou Coffee, and Columbus Cafe. These chains make a
large variety of coffee drinks with lots of artificial flavorings and ingredients. The food offerings are
also heavily processed and very unhealthy and un-enjoyable. These are the most inefficient cafe's in
regard to value to the customer and probably come in at Low Quality, Low Cost, or even Low Quality,
High Cost on the Quality vs.. Cost Matrix. These chains focus solely on profit margins which ultimately
yields them a large profit per customer but limits their customer base because of their lack of value in
service, quality, and enjoyment. So only a small amount of the total pool of customers makes this
their choice.
Price Point per Unit (KWD): Min-0.750 Avg-1.850 Max 3.500
2. Medium Sized (Regional Chains) are those that do not have an international presence and as
such are mostly regionally held whether in the Middle East or any other region but not
internationally. These chains include cafe's such as Cafe Blanc, Laduree, Lino's Coffee, etc. These
chains make a large claim about their quality, authenticity, and uniqueness, usually using the good will
of another brand name or imported brand name product to generate their like-ability and value. They
are moderately to severely over-priced for their offerings. They usually offer a variety of coffee drinks
with lots of artificial flavorings and ingredients as well as local and regional drink styles. The food
offerings are also heavily processed and very unhealthy and un-enjoyable. They are just large enough
in their size so as lose the personal touch of in their customer experience while being too small to be
able to justify their prices through brand name and brand loyalty.
Price Point per Unit (KWD): Min-1.000 Avg-2.450 Max 6.500
3. Small (Independent Cafe's) are those that are locally owned with no inter country domination,
influence, or importance such as Fashion Cafe, Diva' s, The Early Bird, and etc. These Cafe's offer a
variety of coffee drinks with artificial flavorings and ingredients. The food offerings are usually also
heavily processed or out-sourced by another bakery or local vendor. Few if any of them offer in store
fresh baked goods or quality ingredients. These places usually have to charge way too much for their
food in order to pay for the overpriced rent and overpriced food as they are not large enough to buy
in bulk for savings. They often charge VIP fees for non-VIP service and food.
Price Point per Unit (KWD): Min-1.250 Avg-3.500 Max 14.000
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5.0 Web Plan Summary
We plan to build our website slowly in phases in order to accommodate our growth. In year
1, Café di Nofà plans to develop its web site and establish its web presence, while in year 2
& 3, Café di Nofà plans to add online ordering and then e-commerce as a value added
feature to our customers and to supplement our operations.
The intent of our slow building progression is to allow for our name and reputation to catch up in the
local market before we push further into online sales or reservations. However these are two aspects
we have envisioned for the future.
The Café di Nofà website will mirror the image and branding elements showcased in the Cafe and at
the same time, keep up with the latest trends in user interface design. The key to the website strategy
will be combining a well-designed front-end, with a back-end capable of capturing "hits" and customer
data for use in future marketing endeavors.
In the First Year Café di Nofà website will be serving as a virtual business card and portfolio for the
company, as well as its online "home." This is simply to establish its online presence and provide
information easily to the customers at any time of the day.
The website will display pertinent information such as our mission, vision, values, as well as address,
number, etc. We will also showcase the food and beverage products offered available for purchase in
the cafe. Additionally we will offer a feedback form in which to capture customer information and
issues in hopes to resolve them.
In the Second Year we will provide an online ordering service for our imported Italian coffee and
offer recipes and ideas on how to best brew and enjoy the authentic Italian Coffee. To further enrich
our website we will provide a resources area, offering articles, research, product information and
website links of interest to its customers.
In the Third Year we will provide an e-commerce functionality, by which you can order coffee, and
other imported offerings featured in our cafe as a direct sale functionality. As we will be importing
these items to our store we fill it will be a logical step to include sales of these specific offerings
directly to customers who wish to have them for their home or office.
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5.1 Website Marketing Strategy
Internet retail business depends on recognition of expertise by the consumer which we
believe will be developed properly in our 3 year approach.
Our website marketing strategy is developed with slow steady progress in mind in order to maximize
the entry of our name into the market with the quality of the web site and content. We do not wish to
enter too strong with a simple website and instead we will pursue a slow buildup of our web presence.
For the first two years we will be passive in marketing our strategy unless growth outperforms our
expectations. In year three we will really focus on driving customers to our website through an
aggressive marketing campaign specifically for the website.
In the First and Second Year our marketing strategy will mostly consist of referrals by our staff to
customers to visit our site and leave feedback and recommendations. We will not be providing any
budgetary allotments for this type of marketing in these years.
In the Third Year we will be aggressively marketing our products, e-commerce, and online
interactivity with your website. In this year our target will be to conduct a marketing campaign with a
budget of 2.5% of our gross profit in order to further drive our name into the market and lead
customers to our site which we expect will lead to nominal increase in sales revenues.
5.2 Development Requirements
Glens Park will providing our website design as we currently have an excellent working relationship
with them on previous web site designs. Our Development Requirements for the website will break
down into a yearly requirement schedule. Each year will progress the previous year's developments
and continue to move forward to a modern e-Commerce site capable of capturing customers in order
to maximize value.
Year 1 (Y1)
1. Static Website
2. Basic Front End Elements
a. Flash
b. Search Bar
c. Main Pages
d. Sub Pages
e. Hyper-linking
f. Pic Viewers
g. Map Imbedded
3. Customer Feedback System
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Year 2 (Y2)
1. Dynamic Website
2. Back End continuing production
3. Add-ons
a. Pictures
b. Videos
c. Affiliates
d. Online Ordering
e. Customer Registration & Memberships
Year 3 (Y3)
1. Fully Dynamic Site (Complete)
2. Fully Functional Back End (Complete)
3. Add-ons
a. e-Commerce functionality
b. Reservation System / Scheduling
c. Data-basing
d. e-Payment
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6.0 Strategy and Implementation Summary
At Café di Nofà our goal can only be reached with a very in depth, detailed, realistic Analysis of our
Strengths, Weaknesses, Opportunities, and Threats. By analyzing these four categories we set
in writing, before we begin, an outline of what we know we do good and how we can exploit this, and
conversely, what we need to stay focused on in order to mitigate negative impacts.
Additionally we need to analyze what gives us the advantage over other F&B organizations. While we
have performed our own analysis on what exactly it is that makes us better we can say we have
remained objective and realistic in this review. If we were not to remain objective our business would
fail due to our failure to identify the true Strengths, Weaknesses, Opportunities, and Threats, and to
perform the steps necessary to exploit or mitigate them.
Also we have provided a high level Marketing Strategy which we feel is a good start to showing
which direction we will take with our marketing campaign. As the project is accepted through receipt
of financing a more detailed marketing plan will be provided during the making of the project plan for
all three project phases.
We have also included a detailed Sales Strategy which we believe put into words early on will help
guide everyone in this process to envision what we want to accomplish and how we want to
accomplish it. This will serve as an early on road map in the development of the more detailed project
plans for each phase.
Most importantly we have addressed a very detailed Management Plan which demonstrates our
ability to visualize the future and where we would like to go, and how we plan, through talented
managers, to get there. It is not our goal to get there. We know we will accomplish this part; instead
our goal is to get there, while being efficient and effective, making service and our customer come
first.
6.1 SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses Café di Nofà must address. It also allows us to examine the opportunities
presented to Café di Nofà as well as potential threats.
STRENGTHS
We identified our strengths as having Knowledgeable Management, Up-Scale Ambiance, Customer
Service, State-of-the Art Technology, and Quality Italian Coffee & Food.
We believe we will be able to strategically utilize our strengths to our benefit through our marketing
campaign, where we feel word of mouth will be one of our most advantageous means of spreading
good will. In order to exploit this we will ensure we have a customer incentive program to recognize
customers who provide new members to our membership offering programs to benefit them for
spreading the word.
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WEAKNESSES
In examining our weaknesses we came up with our Cost Factor associated with the State of the art
Hardware/Technology, the Italian Barista, and Italian Baker, and Executive Chef; as well as Lack of
Adaptability once the cafe is designed as our major weaknesses.
In order to mitigate the weakness of having an exceptionally high cost for technology which is state of
the art, and in the cost of keeping it that way, we will seek out technologies companies who offer,
lifetime service, help, or warranties; provide upgrade-able hardwares; or are looking for new markets
to emerge into with requirements as shown in the Appendix. (See 'Emerging Markets
Opportunities' for more details)
In order to mitigate the effect the lack of adaptability for our cafe once the plan is finished will have on
our operation we will conduct a thorough market analysis by Ipsos, a renowned Market Analysis &
Research company which provides an excellent resource to ensure this is a sound plan to move
forward with.
OPPORTUNITIES
Our review of the opportunities we identified leads us to believe the most advantage will be gained
from the Lack of Quality Customer Service. Additionally we have assessed our Target Market will
continue to Grow in Size of the next 5 years. We also have found through market studies we have a
niche that is not highly represented in the local market which is Italian F&B Offerings, which we believe
will lead to our ability to Vend certain Italian Products such as coffee and other Italian beverages in an
Authorized Reselling Capacity.
THREATS
In our assessment a few threats exist such as Emerging Local Competitors, Bad Publicity, and Negative
Wasta or Outside Factors of Influence, which we have determined can be mitigated or avoided with the
appropriate strategy, location, attitude, and attention to detail.
In order to mitigate or avoid negative impact brought on through emerging competitors we must
ensure our customers are identified and tracked through our membership process and feedback
avenues. We must also select a high traffic, easy to access venue to operate from. We will also have to
provide the highest level of customer satisfaction in order to keep the customers returning for our
offerings.
It is naive to assume a new restaurant with out approach will be received by other restaurateurs with
open arms. We acknowledge these locations and owners will have ties to the local media and VIPs
within Kuwait, and once threatened, will exert any influence possible whether in the form of Bad
Publicity or Negative Wasta in an attempt to neutralize our customer capture and retention.
In order to overcome this we will target small online media outlets, such as bloggers, critics, foodies,
and other such forums where we will invite them to a meal or two on the house. We also intend to
perform all of our licensing and administrative filings to the letter of the law, with the support of a
licensed and highly regarded legal representative, as well as to hire a local F&B consultant to work with
us to ensure our "ducks are in a row". We believe this will mitigate any negative wasta or baseless bad
publicity.
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6.1.1 Strengths
Knowledgeable Management: We have one of the most highly experienced young American
entrepreneurs as the CEO and a very smart and talented Kuwaiti GM.
Our CEO lived and worked in Italy for 3 years, has previously started up 4 companies, and has 10
years experience in the F&B industry. He is also a certified Project Management Professional, Vice
President of the Association of the U.S. Army in Kuwait, Director of Performance for the Board of
Directors in the Project Management Institute chapter of Kuwait, and is a member of the American
Business Council in Kuwait. He is extremely well qualified to ensure the initiation, planning, and
execution of this company's startup operations are a success in order to turn them over for continuing
operations to the GM.
Our GM is Kuwaiti and has a deep understanding of the market as well as the knowledge of
commercial procedures and business laws and requirements in Kuwait. She has a degree in
Information Technology and is highly competent in regard to ongoing sales, customer service, and
team development. She served for over 10 years in a customer service position moving to F&B from
the IT field. She also has the coaching and mentoring and support of the CEO in her continued
operations after completion of the startup.
Up-scale Ambiance: When you walk into Café di Nofà you'll feel the comfort as you pass through the
sculpted arch with hanging plants and twisting vines that give you a refreshing feel. As you move into
the cafe with the mahogany wood, imported Italian tile floors, and sculpted Venetian plaster walls your
first thought will bring you to Tuscany Italy on a warm spring day. You will be relieved to be greeted at
the front door like a person and not like a customer. As you find your way to either the express coffee
bar or to a relaxing booth you will notice that both were created to ensure your comfort and
convenience. The up-lighting in the entry way on towards the seating area creates a feeling of ease as
you feel your tensions melt away for a good morning, a good meeting, a good time, enjoying what it is
you love to do, whether reading a newspaper or texting your friends before you head on your way to
go shopping, you will notice that every thing has been thought of to ensure you have a great start to
your day.
Customer Service: Our customer service will be BAR-NONE. This means we will have the best
customer service in Kuwait. Period. No if's. No and's. No but's. Period. We will do whatever it takes to
make sure the people who come to Café di Nofà feel as if this cafe was built especially for them, to
serve only them, and as if they were the only people in the cafe that day.
State-of-the Art Technology: Part of the Café di Nofà allure is its up to date, cutting edge
technology add ins which supplement the value of the experience while dining for breakfast or lunch
with us. We will have technology that no one has in Kuwait.
Quality Italian Coffee & Food: One of the most important things is our authenticity and quality.
There are handfuls of restaurants claiming to be Italian but are nothing more than Italian in name or
brand. Authentic Italian is more than just the name. It is the style of preparation, the method of
creation, the spirit and the love. These are things missing from every other business and we have it
and this will show through with our quality and service.
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6.1.2 Weaknesses
Cost factor associated with keeping state-of-the-art hardware: Keeping up with the technology
of the Internet is an expensive undertaking. Café di Nofà needs to balance technology needs with the
other needs of the business. One aspect of the business can not be sacrificed for the other.
Cost factor associated with employing Italian Barista and Baker: In order to keep the
authenticity and style of Italy we will need to employ an Italian Barista and Baker. The Italian Barista
will be responsible for operating for one year as well as training the other Barista how to make Italian
style coffee. The Italian Baker may need to be employed for 2 full years in order to ensure other
Bakers know how to bake using Italian methods. Additionally an Italian F&B consultant may need to
be brought in to guide in the process of Supply Chain Management to ensure the best ingredients are
used for the food offerings.
Lack of adaptability once plan is finished and cafe is designed: Due to the heavy branding and
themeing of this restaurant it is not very adaptable if any part of the plan should prove not work out as
predicted. For example if customers are not receptive to the Italian theme or F&B offerings it would be
unlikely any restructure could be attempted once the plan has been initiated.
6.1.3 Opportunities
Growing population of our Target Market: The target market we are aiming at is forecasted to
produce steady growth over the next 5-10 year which means a continued source of new customers and
also the opportunity to make more return customers.
Poor Customer Service in Kuwait: The lack of great customer service ensures that our Cafe will be
one of the best in Kuwait to dine at. This is a great opportunity to stand out from the crowd with our
premium offerings and excellent service.
Lack of Authentic Italian Cafe's: There is most definitely a lack of Italian Cafe's in Kuwait with real
Italian prepared offerings. This ensures we will be the leading Italian Cafe in Kuwait. Until such time
another cafe opens and can challenge our customer service and quality of food.
Strategic Offerings: While offering Italian food and coffee at our shop we may be able to pursue the
exclusive representation of brand name Italian items when our Cafe becomes well known for its coffee,
food, and service.
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6.1.4 Threats
Emerging Local Competitors: Although it is highly unlikely that a Cafe will emerge that can
compete with our offerings and service it remains a possibility. If this should happen it would most
likely affect those customers whose desire for trend and "something new" outweighed their loyalty to
our cafe.
The reason we have determined the emergence of local competitors to be an insubstantial threat to
our cafe is is best examined through the perspective of both the customer and the business owner.
Customer Perspective: from a customer perspective remains in the cultural mentality of Kuwait
and its citizens who are desensitized to the current state of poor customer service. They, the
citizens, expect it as the norm rather than rejecting it as the exception to the rule. Therefore,
because the citizens expect bad service, it is allowable for a restaurateur to provide cheap imported
labor and have the poor service overlooked. There is no driving force pushing the owner to provide
better customer service.
Owner/Operator Perspective: the reason it is equally unlikely to see competition from
a business operator's perspective is exemplified in how the owners focus on maximizing profit
margins on small segmented market shares. This maximizing of profit margins is performed by
utilizing low quality labor and low quality ingredients. Therefore from the business owner/operator
perspective, it is quite unlikely for current operating businesses or emerging business to be able to
pay higher costs for quality even if they should want to. In other words they prefer higher margins
and believe the less paid to the labor force the more profit available. They do not account for the
negative impact this operational strategy brings about.
Bad Publicity & Feedback: It is possible, due to personal vendettas or other trivial matters, people
may attempt to destroy the image or reputation of Cafe di Nofa through bad reviews, word of mouth,
false advertisement, or other means whether free of charge or on payment of another competitor. For
those who have never tried our cafe this may present a problem.
Negative Wasta & Outside Forces: We understand in Kuwait there are often many parties looking
to prosper directly or indirectly from entrepreneurs as they sit in key positions for which licenses,
paperwork, signatures, and other elements are needed to legally operate. In these situations,
operating outside the legal framework becomes a huge problem when relying on someone to continue
to provide you protection while you are not legally operating or in violation of rules or procedures.
6.2 Competitive Edge
Our competitive edge which will come from the offerings we provide and the manner by
which we provide them all in a convenient and easy to access location.
PRODUCTS: Sourced through Italy and other high quality vendors, our ingredients will be of the
highest quality to value ratio. This will give us an edge over other cafe's in Kuwait as they consistently
offer over priced, under quality, food and coffee.
EMPLOYEES: Our employees will will be trained by real Italian experts in their fields. This will give
our employees insight into how to bring authenticity of Italy to Kuwait. Additionally they will all be
trained in customer service by competent Western Training Programs which will ensure our customers
receive the best service over any other cafe in Kuwait.
LOCATION: Our location in the Avenues Mall will offer us the high traffic flow required to build an
initial customer base that will be instrumental to our long range success with minimal
advertisement. This location will be an advantage over other cafe's in Kuwait that do not have
strategic locations.
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6.3 Marketing Strategy
Our high level requirements for our Marketing strategy are to; Create Awareness of our
Cafe, Brand ourselves as an Authentic Italian Cafe offering exceptional food and customer
service, and Bring Loyal Customers through our archway. In order to accomplish these high level
objectives we will focus on the following marketing strategies.
1. Print Ads - We will saturate the local neighborhoods identified in our target market with printed
marketing ads (flyers & brochures) in order to force the name in front of our customer prior to the
Grand Opening. We also plan on running limited space ads in the local newspapers to keep our
name and phone number in front of the consumer.
2. Press Releases - We will seek out the food critics for local papers and magazines and introduce
them to our soft opening and food offerings. Then we will ask them for a press release to
announce our Grand Opening.
3. Grand Opening - A Grand Opening is the most successful of any in-store promotions. We will
obtain the support of the American Business Council and the U.S. Embassy in order to have a high
publicity Grand Opening inside the Avenues Phase III mall.
4. Website Advertisement - We will advertise our Cafe with a small boutique website which shows
our mission and vision, our menu, our business information, and our location, as well as a way to
contact us.
5. Online Critic Reviews - We will register with online food reviewing critics such as Yelp, Four
Square, Zagat, and other such online food reviewing sites in order to demonstrate our ability to be
rated and receive feedback.
6. Online Delivery - We will register with 6alabat in order to provide our panini and other
meals delivered by their network as an added value to our customer.
7. Word of Mouth - By giving first-time customers great service and a fair price, the word is sure to
spread. In order to help that along we plan on instituting membership programs and referral
programs to help reward this word of mouth approach. Also, the many industry and restaurant
contacts that we already have in the area will prove to be most beneficial in spreading the word.
All marketing decisions with regard to specific media choices, frequency, size, and expenditures will be
conducted on an on-going basis with careful considerations of returns generated.
6.4 Sales Strategy
The sales strategy for our cafe consists of identifying our main focus areas which are
detailed below. We believe by picking a few things and doing them exceptionally well we
will be able to close the deal with our prospective customers.
THE CUSTOMER
The customer is addressed first because we believe they are the most important part. For this
reason we will approach every customer as if they are a VIP customer and offer them luxuries and
amenities they would not have available at other locations. For those who request the actual VIP
treatment they will be offered something never seen before in Kuwait.
All sales associates will be trained and encouraged to assist customers in a personal manner, utilizing
first names and asking the questions needed to provide the customers with the services they
desire. Additionally we will attempt to gather key customer information in an effort to further engage
their needs in order to ensure their return business as well as positive feedback.
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The customer information will be stored in the Point Of Sale system we purchase and will assist us in
the following ways:
Targeting our marketing efforts more effectively.
Increase awareness of Café di Nofà within the marketplace.
Developing food offerings tailored to our clientele in order to increase sales.
Developing added value services that enhance the dinning experience.
Training and developing servers in order to effectively service the customer.
Develop future expansion opportunities that allow for continued growth of the business.
THE FOOD
In order to provide the customer with the highest quality food items and coffee we will select only the
finest ingredients in order to prepare our food offerings with freshly each day. We will attend F&B
trade shows and events, subscribe to popular printed and electronic mediums, and interact within the
F&B community in order to ensure we are staying in tune with the best techniques and using the best
ingredients in the business.
To stay abreast of market and product trends, we will utilize the following trade publications to
reinforce and expand our knowledge base:
Food & Beverage International
Food & Beverage World
Food & Drink Magazine
Taste Italia Magazine
La Cucina Italiana Magazine
BeanScene Magazine
ATMOSPHERE
In order to maintain a kind comfortable atmosphere we will provide sections for each customer
according to their segmentation. These sections will be divided in order to provide each segment their
style of atmosphere according to their purchase.
VIP Section - This section, also known as "The Terrazzo" is a mezzanine style elevated floor which,
when entering the restaurant winds out to both the inside and the outside of the restaurant. It is
literally a terrace, that is elevated, so that they may look down upon the others around them.
Main Room - This section is the interior of the restaurant and is for those who are interested in
dinning more casually, less ostentatiously, or cheaply, whatever the case may be. The interior is just
off the Terrazzo and these two rooms are joined by not shared.
The Ex-presso Bar - This room is a stand up, move through the line, pay first, grab your ticket, step
up to the window, give the ticket and your order, get your coffee, pastry, and panini line. It is quick, it
is cheap, it is effective. The best way to get what you want quickly.
The Spazio - The spazio is the space outside and around the Cafe. It is where the people from the
Ex-presso Bar may go to sit and enjoy their coffee, pastry, or panini.
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PRICING
It is the goal of Café di Nofà to offer style and quality at a value to the consumer. Our pricing structure
will support a minimum 65% gross margin while in some cases a much larger margin will be
achieved. This pricing will support categories of food offerings and dinning experiences to all three
sub-segments of the SFA2038; the affluent, the wannabe, and the modern/progressive.
In this way those who have more money to spend will be targeted with higher margined offerings and
those with less money to spend will be targeted for the maximum spending potential they have
available. In this way we intend to maximize the spending potential of each segment of the targeted
market with customized experiences and food offerings.
UPSELLING/CLOSING SALE
Upon receiving a customer and offering them a seat, if they are a group of women, mostly women and
one man, one woman and one man, or any combination where the women are equal or greater than
the man the VIP up-service area "The Terrazzo" will be offered for upselling.
The Terrazzo will also accompany an offer to register them for the Fine Diner's card which will help
capture their personal information. This can be used later on for e-commerce and other such services
when they are developed.
PROMOTIONS
Seasonal promotional offers, annual anniversary events, and Special/VIP events, will encourage
additional sales and goodwill. We will also offer special desserts for those with a birthday and can
even cater for large size events like this from our location. We will also utilize a Frequent Visitor Card
to encourage repeat customers especially with regard to the coffee.
OUR EMPLOYEES
Employees of Café di Nofà will obtain formal F&B training to include POS, customer service,
serving techniques & etiquette, and Italian Specific training for Barista and Bakers in order to ensure
the authenticity of the food items. Employees will not interrupt the atmosphere of the patrons at any
time and will use the anticipation approach to serving all patrons in order to avoid asking customers if
they "need anything" a hundred times in one sitting. All employees will be developed for growth and
advancement, and compensated fairly.
Additionally we will reward good customer service for our employees as well as top number in sales.
TECHNOLOGY
As we enter the 21st century, proper technology is becoming key to meeting the customer's
expectations. Café di Nofà has chosen to pursue all the cutting edge technological advantages
available on the market.
For the Point Of Sales (POS) system we will us Harbor Touch as our management software. After
careful consideration of FUTURE POS and POS Guys and other well known POS, Harbor Touch was
selected for its superior customer service, low install cost, and wide array of functionality for mobile
devices and technology interface.
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Additionally we will be providing the following technological advances as well:
Portable devices for menus which are capable of being used to view the menu and order food as
well as to pay.
Wi-fi at no cost to our members dinning in through a temporary two hour code provided to them on
their receipt at the register.
Wireless power recharge solutions at our tables to ensure the cell phones and mobile devices of our
customers can be recharged without the need of wires.
In table buzzers to call the wait staff so there is no more need for yelling, waving, etc.
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6.4.1 Sales Forecast
The following table and chart provide a run down on forecasted sales. We have based our forecast on
a modest percentage of 20% increase in Annual Sales Revenues which we feel is very conservative for
the first two years of growth.
Chart: Sales Monthly
Sales Forecast
2013 2014 2015
Unit Sales
Drinks (Coffee/Tea) (Min .500 Max 2.000) 23,325 59,775 74,613
Drinks (Other) (Min .500 Max 2.500) 10,936 31,703 39,628
Food (Panini) (Min 1.500 Max 2.750) 9,794 26,598 33,248
Food (Pastry) (Min 500 Max 1.000) 13,071 35,501 44,377
Food (Plate) (Min 2.250 Max 4.000) 6,560 19,016 23,770
Food (Specials) (3.500) 7,774 19,893 24,866
Food (VIP) (Min 4.750 Max 12.000) 3,000 9,951 12,439
Total Unit Sales 74,460 202,437 252,941
Unit Prices 2013 2014 2015
Drinks (Coffee/Tea) (Min .500 Max 2.000) KWD 1.25 KWD 1.25 KWD 1.25
Drinks (Other) (Min .500 Max 2.500) KWD 2.25 KWD 2.25 KWD 2.25
Food (Panini) (Min 1.500 Max 2.750) KWD 0.75 KWD 0.75 KWD 0.75
Food (Pastry) (Min 500 Max 1.000) KWD 3.25 KWD 3.25 KWD 3.25
Food (Plate) (Min 2.250 Max 4.000) KWD 3.50 KWD 3.50 KWD 3.50
Food (Specials) (3.500) KWD 7.00 KWD 7.00 KWD 7.00
Food (VIP) (Min 4.750 Max 12.000) KWD 0.00 KWD 0.00 KWD 0.00
Sales
Drinks (Coffee/Tea) (Min .500 Max 2.000) KWD 29,156 KWD 74,719 KWD 93,266
Drinks (Other) (Min .500 Max 2.500) KWD 24,606 KWD 71,332 KWD 89,163
Food (Panini) (Min 1.500 Max 2.750) KWD 7,346 KWD 19,949 KWD 24,936
Food (Pastry) (Min 500 Max 1.000) KWD 42,481 KWD 115,378 KWD 144,225
Food (Plate) (Min 2.250 Max 4.000) KWD 22,960 KWD 66,556 KWD 83,195
Food (Specials) (3.500) KWD 54,418 KWD 139,251 KWD 174,062
Food (VIP) (Min 4.750 Max 12.000) KWD 0 KWD 0 KWD 0
Total Sales KWD 180,967 KWD 487,184 KWD 608,848
Direct Unit Costs 2013 2014 2015
Drinks (Coffee/Tea) (Min .500 Max 2.000) KWD 0.15 KWD 0.15 KWD 0.15
Drinks (Other) (Min .500 Max 2.500) KWD 0.45 KWD 0.45 KWD 0.45
Food (Panini) (Min 1.500 Max 2.750) KWD 0.11 KWD 0.11 KWD 0.11
Food (Pastry) (Min 500 Max 1.000) KWD 0.81 KWD 0.81 KWD 0.81
Food (Plate) (Min 2.250 Max 4.000) KWD 0.70 KWD 0.70 KWD 0.70
Food (Specials) (3.500) KWD 2.10 KWD 2.10 KWD 2.10
Food (VIP) (Min 4.750 Max 12.000) KWD 0.00 KWD 0.00 KWD 0.00
Direct Cost of Sales
Drinks (Coffee/Tea) (Min .500 Max 2.000) KWD 3,499 KWD 8,966 KWD 11,192
Drinks (Other) (Min .500 Max 2.500) KWD 4,921 KWD 14,266 KWD 17,833
Food (Panini) (Min 1.500 Max 2.750) KWD 1,102 KWD 2,992 KWD 3,740
Food (Pastry) (Min 500 Max 1.000) KWD 10,620 KWD 28,845 KWD 36,056
Food (Plate) (Min 2.250 Max 4.000) KWD 4,592 KWD 13,311 KWD 16,639
Food (Specials) (3.500) KWD 16,325 KWD 41,775 KWD 52,219
Food (VIP) (Min 4.750 Max 12.000) KWD 0 KWD 0 KWD 0
Subtotal Direct Cost of Sales KWD 41,059 KWD 110,156 KWD 137,679
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6.5 Milestones
The accompanying milestone chart highlights our plan with specific dates. This schedule
reflects our strong commitment to organization and detail while providing a higher level
milestone chart for investment purposes.
If we miss the milestones due to lack of financing we will re-baseline the project, likely for the summer
of FY 2014. The reason for this is due to both the summer heat and Ramadan, which will occur in July
of 2013 and late June of 2014.
The temperatures in the summer in Kuwait are so hot, most people choose to leave the area. This
means we will have less people in the country which might seem bad. However, because of Ramadan,
food sales actually increase during this time, so we will serve less people while also making more in
sales.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Acquisition of Financier
or Investment Partner
2/4/2013 3/1/2013 KWD 0 CEO Admin
Confirmation of Project
Team
3/1/2013 3/28/2013 KWD 0 CEO PMO
Confirmation of Location 3/1/2013 3/28/2013 KWD 0 CEO, GM, PR PMO
Confirmation of Project
Plan
3/1/2013 3/28/2013 KWD 0 CEO, GM, PR PMO
Initiation of Cafe Fitout 4/1/2013 5/1/2013 KWD 0 CEO PMO
Initiation of Purchasing 5/1/2013 6/1/2013 KWD 0 CEO, GM OPS
Completion of Fitout 6/1/2013 8/1/2013 KWD 0 CEO PMO
Initiation of Stocking 7/1/2013 8/1/2013 KWD 0 CEO, GM,
Team
HR
Completion of Purchasing 6/1/2013 7/15/2013 KWD 0 CEO, GM OPS
Completion of Stocking 7/1/2013 8/1/2013 KWD 0 GM, Team HR
Integration of Sytems 7/1/2013 7/23/2013 KWD 0 CEO, GM HR, IT, OPS
Trainup of Sytems 7/23/2013 8/1/2013 KWD 0 CEO, GM,
Team
HR, OPS
Soft Opening 8/1/2013 9/1/2013 KWD 0 ALL ALL
Grand Opening 9/1/2013 10/1/2013 KWD 0 ALL ALL
Retirement of Project to
SusOps
10/28/2013 1/1/2014 KWD 0 CEO&GM to EC Department
Totals KWD 0
Chart: Milestones
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7.0 Management Summary
The Management Summary includes our detailed account on not only the process by which
we will follow in order to manage this business but also the people involved as well as their
role in the process.
THE PROCESS:
Café di Nofà will be managed through 3 distinct phases with each carrying their own
management structure. These three phases will be the Start-Up Operations
(StartOps) phase, the Transition to Sustainment Operations (TransOps) phase, and the
Sustainment Operations (SusOps) phase.
Of these phases the most critical will be the StartOps phase as this includes the most risk and
possibility for failure. For this reason the CEO will carry the project in StartOps into TransOps phase
and through to Mid-Range SusOps. This will ensure the integrity of the project from start to
completion through to retirement.
Start-Up Operations phase will be structured with a 5 phase plan according to the Project
Management Body of Knowledge and will follow the Project Management Framework according to the
Project Management Institute. This project will consist of owner/managers which will provide either
capital or sweat equity to the project. They will begin with the project initiation and charter once a
financier is acquired through this business plan.
The project will continue into the planning phase once the financier has been dedicated. The planning
phase will consist of the further research and fact finding (Ipsos Analysis), obtaining information
requirements, defining activities, estimating costs and schedule, planning quality and resources plan,
as well as risk managing and planning the procurements.
Generally this project will last from between 6 months to 1 year depending on the work-ability of
Outside Factors of Influence (OFoI).
Once the full project plan is developed and the operations begin to execute the entire operation will be
followed as per the project plan which will then be monitored to ensure costs and schedule are
adhered to in order to ensure a timely soft opening and grand opening as per the milestones
requirements of this plan.
This will entail a lot of due diligence, planning, and hard work in order to meet consistently, build the
project plan, and execute it. The management team will work together to meet the milestones built in
this business plan. This major milestones in this phase according to this Business Plan will consist of
the Acquisition of the Financier, the Development of the Project Plan, the Fit-out of the Cafe, and the
Soft & Grand Opening. However these will be subject to refinement in the Project Plan.
After the openings have occurred per the plan the closeout of this phase and the project will
commence which will entail a full review of the project, verify the scope, and update the PR & LL in
order to use later for the TTPs. This closing phase will signify the opening of the next phase which will
be the TransOps phase.
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Transition to Sustainment Operations phase will consist of the phase out of the StartOps Project
(starting up the cafe) and the gradual phase into continued operations. During this phase the
owner/managers will be involved with running and operating the business, developing Standard
Operating Procedures (SOPs), training the staff, monitoring and controlling the early stage operations,
and developing Tactics, Techniques, and Procedures (TTPs) based on Performance Reviews & Lessons
Learned (PR&LL) which will provide the sturdy foundation for the completion of the transition into the
hand-off for SusOps. (See SOP's, PR&LL, TTP Annex for more details)
This phase will also be governed as a project but with a less formal framework and approach. A
summarized project plan will be created with a few higher level deliverables to be used as a framework
to guide the incoming managers and workers who will continue to build the project plan with the
oversight and supervision of the CEO and GM. A more Agile methodology will be applied to the
Transition Phase in order to ensure a proper fit of the early SOPs, TTPs, and thorough understanding
and utilization of the PR&LL while adjusting to the consumer's demands.
This phase will generally last between 2-4 months, but will carry on until it is determine the incoming
managers and personnel are adequately trained and all processes, procedures, and other systems are
working in sync and at no less than 80% efficiency10
and 99.7% effectiveness.11
Sustainment Operations (SusOps) phase will generally commence when the procedures of
operations have cured enough to be developed into written SOPs and the owner management team is
satisfied they can hand off the program in part or completely to the incoming non-owner managers. It
is estimated this will be around the 18-24 month mark.
Sustainment Operations will continue with outside oversight and influence from the Owners & Board
Members in order to further develop and grow Café di Nofà into an F&B business that can be replicated
in another location in Kuwait and possibly other gulf states in the medium to long term of the business
life.
THE PEOPLE:
The management team of Café di Nofà will have distinct and separate structures as it progresses
through the phases as well in maturity and development.
In order to manage each phase successfully with the lowest cost we intend to use bare-bones
management for each phase. This use of only the crucial managers will help reduce the startup costs
associated with most F&B businesses who have bloated payroll expenses prior to Sustainment
Operations by hiring their managers and personnel through the startup process.
We will be utilizing a "whisker' s width" phase-in for each position in order to reduce or eliminate paid
retainment periods. Because we will not be hiring managers on retainer through StartOps we will
ensure we have multiple options for each position so when the time is ready to bring people directly
aboard into their position they will be available.
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During the StartOps phase we envision the management team will consist of:
2 - Active Managers, and possibly 1 - Passive Manager, and 1 - Consultative Manager.
Active Managers - The active managers will be the CEO and the GM. They are referred to as active
managers because they will be heavily involved in the 5 phases of the project cycle of StartOps.
Passive Manager - The passive manager will be the Chief Financial Officer if such a position is
determined from the output of financial investment. He is referred to as a passive manager because
he will not be highly involved in the either the Startup Operations or Continued Operations. However
he will be given oversight of both operations for quality audit purposes as well as investor
management and development for the long term business model which will be developed in Y2 & Y3.
Consultative Manager - The consultative manager, should there be one for sweat equity
investment, will be the Business Development Manager. He is referred to as a consultative manager as
initially he will perform in a consultative capacity to help form the supply chain management process,
ensure the integrity of the Italian Branding & Authenticity in Food Offerings, and recommend
developmental processes for Startup & Continued Operations. He will be heavily relied upon in the
Startup Operations for the Design & Fitting Out of the Cafe. Additionally he will continue to be
involved in Sustainment Operations to ensure the authenticity of the Cafe.
During the TransOps phase the management team will likely consist of:
4 - Active Managers, 1 - Passive Manager, and 1 - Consultative Manager.
Active Managers - The active managers will be the CEO, GM, Executive Chef (EC), and the Service
Manager (SM). They are referred to as active managers because they will be heavily involved in
the planning and execution with inputs from all managers until completion of the transition. The AGM
will be training for the GM position and will be taking over in lieu of the GM so the GM will be able to
move onto other projects once this one is stabilized.
Passive Manager - The passive manager will be the CFO.
Consultative Manager - The consultative manager will be the Business Development Manager. In
the next phase he will be either phased out completely to inactive status or moved to a full-time active
management status. His duties should be transferred to the respective incoming active managers of
the next in SusOps.
During the SusOps phase the management team will consist of:
4 or 5 - Active Managers, and 3 - Passive Managers.
Active Managers - The active managers will be the Executive Chef, Administrative & Accounts
Manager (AAM), Food & Beverage Manager (FBM), SM, and possibly the Business Development
Manager (BDM). They are referred to as active managers because they will be heavily involved in the
ongoing execution of Sustainment Operations.
Passive Manager - The passive managers will be the CEO, the CFO, and the GM as they will have
switched to mostly a higher level management of the mission, vision, and values while planning to
expand into other areas.
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THE EXPERIENCE:
Café di Nofà has a very strong, experienced, and professional management team with strengths in all
the areas needed to ensure the success of this project.
David M. Simon, CEO, Partner - Project Management, Development, Operations, & Finance
David is a very highly experienced business professional with the drive to succeed in all that he
does. He has a gift for knowing which combinations of elements will add up to make a successful
design, product, or service. David has a talent for knowing what people want and will pay good money
for. With this talent he has been able to successfully build up his construction company in Kuwait as
well as the companies of his family members and friends across the world.
He has lived and worked in Italy for 3 years and previously started up 4 companies, and has 10 years
experience in the F&B industry. He is also a certified Project Management Professional, Vice President
of the Association of the U.S. Army in Kuwait, Director of Performance for the Board of Directors in the
Project Management Institute chapter of Kuwait, and is a member of the American Business Council in
Kuwait.
David specializes in the skills of Project Management, Development, Operations, & Finance and will be
deeply involved in all aspects of this operation. He is extremely well qualified to ensure the initiation,
planning, and execution of this venture' s startup operations are a success in order to turn them over
for continuing operations to the Executive Chef.
Nouf Al-Shatti, GM, Partner - Marketing & Sales
Nouf is a business savvy Kuwaiti who has a deep understanding of the market as well as the
knowledge of commercial procedures and business laws and requirements in Kuwait. She has a degree
in Information Technology and is highly competent in regard to ongoing sales, customer service, and
team development. She served for over 10 years in a customer service position moving to F&B from
the IT field.
She has studied very carefully the local market regarding F&B operations and has developed a plan
with the help of the CEO to ensure this venture is successfully deployed in accordance with the norms
and requirements of the local community.
????, CFO, Partner - Investor Relations, Strategic Over-site & Development
(Insert Credentials)
????, BDM, Partner - Project Management & Business Development
(Insert Credentials)
41. Café di Nofà
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AUTHORITY:
Decision-making for the cafe will be divided as follows.
CEO - David
Marketing & Advertising
Planning, Development, & Instruction
Operations & Accounting
Software & Computer Systems
Web Development: Front End
Web Development: Back End
GM - Nouf
Merchandising & Purchasing
Marketing & Advertising
Purchasing & Numerical Analysis
CFO - ????
Purchasing & Numerical Analysis
Operations & Accounting
BDM - ????
Space Design & Development
Theme & Decor
Vendor Selection
Purchasing & Merchandising
Menu Approval
42. Café di Nofà
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Shared
Hiring & Firing
Employee Development
Standard Operating Procedures
Company Policies
Customer Services
Menu Selection
OPERATIONAL SCHEDULE:
Once in SusOps the hours of Café di Nofà will be as follows
Operating Hours
7am-10pm Customers
Shift Schedules
2am-8am Baker Shift
6am-12pm Shift 1
11am-5pm Shift 2
4pm-11pm Shift 3
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7.1 Personnel Plan
In order to ensure quality personnel the following positions have been identified and explained.
Executive Chef: The Executive Chef (EC) becomes the top management position within Café di Nofà
and overall responsible for the SusOps phase success or failure. He will manage and oversee all
aspects of the SusOps phase and ensure policies are being followed and failures are being addressed
and corrected.
The EC will perform quality assurance through audits of the quality processes in place used to control
and ensure quality of the Cafe offerings. The EC will be required to strictly adhere to the Quality
Management Plan and ensure all procedures for controlling quality are being followed.
The EC will update all PR&LL into the SOPs, TTPs, and update company policies if necessary. Prior to
any changes of organizational process assets the EC will confirm with the CEO and GM in order to
ensure all changes are in line with the Mission and Vision.
The EC will be required to provide monthly: sales reports, purchase reports, inventory reports, as well
as keeping the budgets and forecasts updated and current. Additionally he will be responsible to make
updates to the P&L and Balance Sheet, as well as any other pertinent financial report adjustments
as required by the Board of Directors. He will also provide review and correction to the reports
generated by the Administrative & Accounts Manager in order to ensure they are accurate.
Responsibilities include
The daily operations of Café di Nofà. Overall responsible for success or failure.
Developing the Menu
Ensuring the Menu is approved through the BDM
Assisting in the Development and Implementation of the Employee Development Plan
Assisting in the Development of the TTPs
Assisting in the Refinement of the SOPs
Assisting in the Review of the PR&LLs
Developing the Back of the House Plan
Developing the Stock & Inventory Plan
Developing the Front of the House Plan
Developing the Employee Development Plan
Developing the Staff & Service Management Plan
Developing the Financial Management Plan
Developing the Accounting Plan
Developing the Marketing Plan
Developing the Management Plan
Developing the Organizational Process Asset Update Plan
Developing the Customer and Knowledge Management Plan
