Some Days You Feel Like Angus
&
Other Days You Feel Like Patty
Angus

Patty

Healthy

Indulgent
Angus

Indulgent
is

Cheeseburgers
Chicken Wings
Soda
Shakes
French Fries
Onion Rings
Ice Cream
Deep Fried Oreos & Twinkie...
Health
Conscious
is
Patty

Salads
Chicken Sandwiches
Veggie Burger
Grilled Vegetable Sandwich
Bottled Water
Diet Soda
Skip...
Although She’s
Ben Known to
Indulge From
Time to Time
At Most Fast Casual
Restaurants Paty is
an Afterthought
Even Though
She’s the Decision
Maker
That’s Crazy
That’s Why
We Built
Healthy Indulgent Continuum
Healthy

Salads

Grilled
Vegetable
Sandwich

Veggie
Burger

Grilled
Chicken
Sandwiches
& Wraps...
Market Space
Better Burger

Healthy Fast
Casual

Traditional Fast
Food

Fast Ethnic
Market Space
Better Burger

Healthy Fast Casual

Smashburger
Shake Shack
Five Guys
Bobby Flay’s Burger Palace
Fuddruckers
...
Little Shanty Creates
and Exploits
New Market Space
Fresh Casual
Fresh Casual
• Hybrid Quick Service & Table Service
• Fresh Ingredients
• Broad Menu Selection with Frequent Menu
Updates
...
Fresh Casual

• Bi-Polar diners
• Both health conscious & indulgent
• Healthy options are not an afterthought
they are a f...
Why Fresh Casual
• Fast casual dining industry in US is $27
billion per annum

• Industry growth rate is 8.4%
• Better bur...
Convergence of Trends
Ideal for Little Shanty
Increased Frequency
of Dining Out

Design

Healthy Fast Casual

e
Bett

r
ur...
Customer Profile
•
•
•
•
•
•
•
•
•

Suburban/Exurban/Urban
Single, DINK, Multiple Children
Higher Income
Extremely Busy
Wan...
Four Cornerstone Principles
•

We will delight our guests by serving fresh delicious food
in a beautifully designed & main...
Design Matters
• Apple
• Ralph Lauren
• Warby Parker
• Prove that design driven companies can
grow faster in traditional m...
Where Would You
Rather Eat?
Five Guys
Fluorescent Lighting
Formica Tables
Fast Food Feeling
Crowded Tables
Smashburger
Red Color
Harsh Lighting
Cookie Cutter Franchise Layout
Little Shanty
Warm Colors
Stadium Kitchen
Family Style Seating
Soft Lighting
Eclectic Tables & Chairs
Giving Back
• Buy one Give One
• We donate to the Community FoodBank of
NJ every time a guest buys a meal
combination

• T...
Social Media & Loyalty
• Extremely Active on Blog, Facebook, Twitter
and Foursquare.

• 750 Facebook Followers

• Perka Lo...
We are Creating a Rabidly Loyal Fan Base
& Executing When the Guests Visit our Store
•

For me and my wife, everything abo...
Customer Feedback

Living Social
Groupon
restaurant.com survey results
How would you rate the quality of the food?
AVERAGE SCORE: 4.63 out of 5

How would you rate...
Growth Initiatives
•
•
•

Delivery -- slated to begin October 2013
Breakfast -- menu development in progress now
Little Sh...
Operational Levers
Food Costs
Labor Costs
Operating
Costs

Identify unnecessary
expenses & improve
process control to
driv...
Financial Outlook

•
•
•
•
•
•
•
•

Gross Margin Steadily Improving
Selectively Increased Prices

•

Working with Vendors ...
Tactical & Strategic Challenges
•

Tactical

•

•

Strategic

•

Find Source of
Capital

•

Improve Gross
Margins

•

•
•
...
Why Warren?
• High Per Capita Income
• Mix of Commercial & Residential
• Few Quick Service Restaurants
• High Traffic Locat...
Projected Financials at Scale
• Gross Margin 70-72%
• Labor 25%
• Operating Expenses 28%
• EBITDA = 19%
• At scale the War...
Conclusion
•
•
•
•

Exploiting New Market Space

•

Executing quality product & quality service delivery

Brand Concept Re...
Strategy deck
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Strategy deck

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Little Shanty Restaurant Strategy Deck

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Strategy deck

  1. 1. Some Days You Feel Like Angus & Other Days You Feel Like Patty Angus Patty Healthy Indulgent
  2. 2. Angus Indulgent is Cheeseburgers Chicken Wings Soda Shakes French Fries Onion Rings Ice Cream Deep Fried Oreos & Twinkies
  3. 3. Health Conscious is Patty Salads Chicken Sandwiches Veggie Burger Grilled Vegetable Sandwich Bottled Water Diet Soda Skips Dessert Shares an All Natural Cheesecake
  4. 4. Although She’s Ben Known to Indulge From Time to Time
  5. 5. At Most Fast Casual Restaurants Paty is an Afterthought
  6. 6. Even Though
  7. 7. She’s the Decision Maker
  8. 8. That’s Crazy
  9. 9. That’s Why We Built
  10. 10. Healthy Indulgent Continuum Healthy Salads Grilled Vegetable Sandwich Veggie Burger Grilled Chicken Sandwiches & Wraps Turkey Burgers, BLT Burgers, Grilled Cheese, Fish Sandwich, Hot Dogs Wings Fries, Chips & Rings Shakes, Floats, Ice Cream, Desserts Indulgent
  11. 11. Market Space Better Burger Healthy Fast Casual Traditional Fast Food Fast Ethnic
  12. 12. Market Space Better Burger Healthy Fast Casual Smashburger Shake Shack Five Guys Bobby Flay’s Burger Palace Fuddruckers In n Out Burger Whataburger Cheeburger Cheeburger Panera Bread Pret a Manger Subway Salad Works Cosi Au Bon Pain Which Wich Potbelly Traditional Fast Food McDonald’s Wendy’s Burger King Sonic KFC Dominos Papa John’s Pizza Hut Fast Ethnic Chipotle Q’doba Panda Express Moe’s Southwest Grill
  13. 13. Little Shanty Creates and Exploits New Market Space Fresh Casual
  14. 14. Fresh Casual • Hybrid Quick Service & Table Service • Fresh Ingredients • Broad Menu Selection with Frequent Menu Updates • Professionally Trained Chefs • Appeals to Broad Cross Section of Customers
  15. 15. Fresh Casual • Bi-Polar diners • Both health conscious & indulgent • Healthy options are not an afterthought they are a focus • Recognition that family and group dining decisions are largely driven by women • Increasing consumer awareness of food allergies
  16. 16. Why Fresh Casual • Fast casual dining industry in US is $27 billion per annum • Industry growth rate is 8.4% • Better burger growth rate > 40% • 50% of Americans have at least 1 burger per week • Healthy casual growing at a similar rate • Busy Lifestyles leading Americans to eat out more frequently
  17. 17. Convergence of Trends Ideal for Little Shanty Increased Frequency of Dining Out Design Healthy Fast Casual e Bett r urge rB
  18. 18. Customer Profile • • • • • • • • • Suburban/Exurban/Urban Single, DINK, Multiple Children Higher Income Extremely Busy Wants to Eat Fresh Food Aware of Current Food Trends Conscious of Health & Wellness Intelligent Indulgence When Dining Will Spend More for Quality Ingredients
  19. 19. Four Cornerstone Principles • We will delight our guests by serving fresh delicious food in a beautifully designed & maintained environment every time they visit one of our stores. • We endow our partners with responsibility by giving them a voice into the operation of our business and opportunity to share in our success. • We will generate a consistently superior financial return for our financial stakeholders enabling them to invest for the continued long-term success of our business. • We will give back to the communities in which we work and live.
  20. 20. Design Matters • Apple • Ralph Lauren • Warby Parker • Prove that design driven companies can grow faster in traditional moribund industries
  21. 21. Where Would You Rather Eat?
  22. 22. Five Guys Fluorescent Lighting Formica Tables Fast Food Feeling Crowded Tables
  23. 23. Smashburger Red Color Harsh Lighting Cookie Cutter Franchise Layout
  24. 24. Little Shanty Warm Colors Stadium Kitchen Family Style Seating Soft Lighting Eclectic Tables & Chairs
  25. 25. Giving Back • Buy one Give One • We donate to the Community FoodBank of NJ every time a guest buys a meal combination • To date over 13,000 meals donated • Creates a golden halo for the brand • Anchors the brand to the local community
  26. 26. Social Media & Loyalty • Extremely Active on Blog, Facebook, Twitter and Foursquare. • 750 Facebook Followers • Perka Loyalty App Launched Spring 2013 over 200 subscribers. • More than 2,600 customer visits • 400 email list subscribers
  27. 27. We are Creating a Rabidly Loyal Fan Base & Executing When the Guests Visit our Store • For me and my wife, everything about this place is outstanding. Better-than-Five-Guys burgers, the fries and chips are to die for, outstanding shakes, even the interior design is great. The service is always good. I love this place and REALLY want them to succeed. • Awesome. Food is great and atmosphere is inviting (love the industrial look and feel) Grandma's fries are simply spectacular! Staff is very friendly and welcoming, especially the one man (i believe he was the owner?) I really like the idea of ordering at the counter and then sitting down and having the food brought to you, wasn't sure if i should have left a tip... so i did.. lol. I definitely recommend this place, and definitely get the fries when you go! • I got take out at the Little Shanty last night and let me tell you I am definitely pleased with my meal!I ordered two sets of three sliders and • I will be meeting this burger again- either in my dreams or during my next visit. I picked up the Livingsocial for this place that gave a friend and me a burger, drink, and fries of our choice. Some of the really cool perks of this place- unlimited toppings that include avocado and jalapenos, a burger bill of rights and Tabasco at every table, and above all a partnership with the Food Bank of NJ • “The food is delicious and bursting with original combinations of flavors. Little Shanty is decidedly not fast food. It is a welcome addition to an area lacking good food choices. I’ve eaten here twice and both times the food was excellent. The fries are the best I have ever eaten.” • “Hey moms I’d like to send a special shout out to Little Shanty, a new healthy alternative to a local burger joint in Warren. They are doing amazing things down there with homemade/handmade FRESH, food. Many healthy food options, a fun environment with a philanthropic mission.” a burger for me and my two kids.  Everything was cooked to perfection and the burgers had a nice spice-flavor to them.  The brioche buns were fresh and delicious.  The thing that I was most impressed by was the freshness of the toppings: I got lettuce, tomato, onion and pickles on my burger and they were all super fresh- im talking not even a spot on the lettuce!Overall a great meal and next time i'll try to eat in- but i'll definitely be back!
  28. 28. Customer Feedback Living Social Groupon
  29. 29. restaurant.com survey results How would you rate the quality of the food? AVERAGE SCORE: 4.63 out of 5 How would you rate your overall dining experience at Little Shanty? AVERAGE SCORE: 4.62 out of 5 1 (Poor) 1 (Poor) 0 0 2 (Fair) 2 (Fair) 0 0 3 (Neutral) 3 (Neutral) 0 1 4 (Good) 4 (Good) 10 8 5 (Excellent) 5 (Excellent) 17 17
  30. 30. Growth Initiatives • • • Delivery -- slated to begin October 2013 Breakfast -- menu development in progress now Little Shanty Kiosk at TD Bank Park Home of Somerset Patriots (Independent Minor League Baseball Team) Summer 2014 • • • • • • 2012 Attendance over 525,000 Mobile Food Truck for corporate catering & events Basking Ridge Little League Snack Shack -- 2013 Gross Revenue 100m Expansion of Live Music Programming Merchandising (T-Shirts, Toys, Hats, BBQ Rub & Sauce) Packaged Sales of Potato Chips, Guacamole, Mango Salsa, Bruschetta & Other Proprietary Recipes
  31. 31. Operational Levers Food Costs Labor Costs Operating Costs Identify unnecessary expenses & improve process control to drive operating profit
  32. 32. Financial Outlook • • • • • • • • Gross Margin Steadily Improving Selectively Increased Prices • Working with Vendors to Reduce Food Costs Eliminated several positions Reduced working hours for numerous employees Performing energy audit to reduce utility costs Eliminated free employee meals Eliminated costly promotions Monthly Breakeven reduced to $54,000
  33. 33. Tactical & Strategic Challenges • Tactical • • Strategic • Find Source of Capital • Improve Gross Margins • • • • Drive Top Line Growth Market Brand to Potential Investors Improve Internal Controls • Identify Secondary Locations Reduce Labor Costs Reduce Promotions and Discounts
  34. 34. Why Warren? • High Per Capita Income • Mix of Commercial & Residential • Few Quick Service Restaurants • High Traffic Location Between 78 & 22 • Small Footprint • Comparatively Low Rent
  35. 35. Projected Financials at Scale • Gross Margin 70-72% • Labor 25% • Operating Expenses 28% • EBITDA = 19% • At scale the Warren Store should reach $950,000 in sales
  36. 36. Conclusion • • • • Exploiting New Market Space • Executing quality product & quality service delivery Brand Concept Resonates with Guests Food Resonates with Guests Intentionally limited risk by choosing Warren location

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