Completed Paper

8/11/2014 NutraNetwork
A Home MealReplacement Service
Business Proposal
University of Indianapolis
INIANAPOLIS, IN

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Table of Contents
Executive Summary 2
Industry Analysis 5
Initial Findings 5
Current Options for Home Food Delivery 8
Competitor Example: Magic Kitchen 10
Overall Results 13
Management Team 14
Team Experience Requirements 14
Advisors and Consultants 18
Key ServiceProviders 20
Company Structure 22
Organizational Structure 22
Legal Structure 23
Intellectual Property 25
Markets and Marketing 28
Trends Influencingthe HMR Market 28
Target Markets 30
Product and Service Strategy 37
PricingStrategy 41
Distribution of Products 44
Advertisingand Promotions 47
Operations 50
Service Location and Delivery of Product(s) 50
Qualified Labor Pool 50
Quality Control 51
Customer Service and Support 54
Potential Regulatory Issues and/or Challenges 56
Development Plan 59
Financial Forecasts 62
Capital Requirements
Income/Expense Statements
BalanceSheets
Cash Flow Statements
Risks and Challenges 63
Management Risk 63
Marketing Risk 63
OperatingRisk 65
Financial Risk 65
Intellectual Property Infringement Risk 66
Regulatory and Environmental Risk 67
Ethical Risk 68
References and Appendix 70-71

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Executive Summary
The Opportunity
A large majorityof individualsandfamiliesare noteatinghealthilyandare increasinglyshowing
signsof earlydiabetes,heartdisease,andothermajormedical conditionsbecause of theireatinghabits.
Thisis inlarge part due to the increase inconsumptiondue tofastfood,delivery,restaurant,and
premade meal purchasingthroughthe freezersectioningrocerystores.Inordertocombat thisbut
keepthe convenience of apremade meal,NutraNetworkwill provide healthy,local,premade meals
freshdailyforpurchase ona weeklyordailybasisthatwill be deliveredtothe home.Evena busy
executivecanfinda use forsuch a service.Insteadof eatingunhealthydrive-throughfordinner,go
home and popa NutraNetworkpremade dinnerinthe overwhilecatchinguponthe latestfinancial
numbersonCNN and voila,ahealthy,nopreservative,all natural home-cookedmeal.
Description of Business
NutraNetworkcanfill the needsof the busyorunable bydeliveringthe premade mealsdirectly
to the home during a time periodspecifiedbythe consumer.Itcaneasilyreplace fast-foodandgrocery
‘freezertreats’.Itfulfillsthe needfornutritiousandnatural meal replacementwhilebeingconvenient
and easyto cook.All an individual will have todoisperuse the website orcome tothe location,pickout
mealsforthe week(ormore if wanted) fromthe available products,selectadeliverywindow,andthey
will have foodforthe week.There maybe some seasonalityaffectsfromavailabilityof freshproduce as
well asthe increase anddecrease in‘eatingout’seeninrestaurantsdue tosummertime beingthe
‘cookout’seasonandvacationtime.
CompetitiveAdvantage
The most obviouscompetitiveadvantage isthatthere are nodeliveryserviceslike thisoutside
of majorcitiessuchas Chicago.NutraNetworkwouldbe the onlydeliveryservicelikeitofferedinthe

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area.The secondadvantage isthat the service wouldmake use of the local meatmarkets,produce
markets,farmersmarkets,andanyotherconnectiontolocal growers.Thiscan helpincrease awareness
of the service due tothe fact that mostconsumersuse a service orproduct onthe advice of someone
else orword of mouth.The final advantage isthe use of all natural,non-preservative foodswhichhas
become increasinglymore andmore soughtafterbyconsumers.
Target Market
The main demographicsthatwoulduse thisservice wouldbe busycollege students,single-
parentfamilies,seniorcitizens,anddisabledindividuals.Allof these marketsmake upadecent
proportionof the populationwithinthe state of Indianaandthe Fort Wayne regioninparticular.They
are all expectedtogrowwithinthe nextyenyears,withseniorcitizensbeingthe largestgroupdue to
the baby bombergenerationgrowingolder.Local news channels,newspapers,mail outs,andradio
advertisementswouldbe the bestwaytoreach these markets.
Management
The CEO andcreator of the companyhas hadover tenyearsof experienceinthe foodservice
industry.The chefswouldbe chosenonthe basis of schooling,accreditation,andgothrougha screening
processwhere foodwouldbe cookedandtastedforqualitypurposes.A nutritionistwouldbe chosenon
the same basis,accreditationandschooling.A driverwouldneedtohave the appropriate licensingto
drive a refrigeratedtruck.All otheremployeeswouldbe general staff.All employeeswill be screenedfor
personalityandcharacteristicsthatstemfroma healthylifestyleandcommunitysupportbecausethis
businessisacommunitybasedbusiness.
Financials

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It wouldtake between$450,000 and$500,000 to start up the business.Thisisinlarge part due
to the highcost of a commercial kitchen,permits,buildingandlandcosts.Investorswouldbe the
primarysource of fundingaswell assome bankloansif needed.Investorsshouldexpecttobe paidoff
withinthe firstthree yearsof the companyopening.Grossmarginsaverage about83% andnet margins
average around80% forthe firstfive years.
Exit Strategy forInvestors
Investorscanexpecttobeginbenefitingfromthe investmentwithinthe secondyear.Itshould
take no more than fouryearsto pay back any investmentsintothe companyandanythingafterthat
wouldbe profits.The original investmentwill be inthe formof paymenttransfersintoan account.
Appreciationcanreasonablybe estimatedaround7%.Growthbetweenyearsisestimatedtobe around
12% as the home meal replacementindustryisgrowingthe mostrapidlywithinthe foodserviceindustry.

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Industry Analysis
Initial Findings
The official industryforthe proposedprojectwouldbe the Home Meal Replacement(HMR)
Industry,thoughthisisa relativelynewerclassificationof the home fooddeliverysystem.Accordingtoa
studydone byMarketdata EnterprisesIncin2013, the originsof the HMR marketbeganbooming
between2002 and 2003. There are roughly40 companiesthatcompete inthisindustrybutmostship
locallywithfewshippingnationwide.The marketbeganasa special niche segmentfocusingmainlyon
weightlossprogramsandthenexpandedintodifferentsegmentsincludingseniormeal plans,diabetic
meal plans,andgeneral home meal delivery.These companiesare fillingadifferentniche than‘ordering
delivery’whichiswhere the conceptsof home fooddeliverybegan.
Some importantfindingfromthe MarketdataEnterprisesInc.studyin2013 showedsome
promisinginformation.The studyprojectedmarketsize togrow fromitscurrentstatus at 4% to 5% per
yearuntil 2017. Theyfoundthatmost of the companiesheldupwell duringthe recessionanddiversified
intonewmarkets.Many newcompaniesenteredthe marketin2011, withone obtaining$1 million
dollarsininvestorfinancing.The majorityof the companiesprovidelocal services,andof those,the
companiesservicingLosAngelesandNew YorkCitygenerate profitsbetween$2-5million.The study
concludedthat60-70% of consumersare female andclientsusuallyuse mealplansthatare on an 8-12
weekrotationandspendanaverage of $837 per plan.Thisaveragesoutto $83.70 a weekonfood.It
was alsoprojectedthatpotential clientsincludedcollege students,single mothers,celebrities,time-
pressedtopexecutives,andconvenience seekers.

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Anotherstudydone inMay of 2014 fromFacts, Figures,andthe Future showedthatthe
Commissaryfoodoperationsmodel hadthe bestcombinationof laborandcapital,shrinkage risk,
flexibility,andperceivedfreshnesswhencomparedtoin-store complete preparationandin-store finish
foodmodels(shown
inthe figure below).
Thisbodeswell for
the proposed
businessmodel.
There isan even
dynamicof trade-
offsforthe Home
Meal Replacement
industry.This
businesswillbe able tohandle the changesof demandandavailabilityof suppliesmuchmore readily
than a restaurantmodel thatreliessolelyonthe continuationof specificdishesandentrees.The HMR
model canpost differentmeal optionsandchange the available breakfast,lunch,anddinneroptions
quicklydependingonwhatfoodtypesare inseason,available,fresh,andpossiblymaking use of local
foods.
The proposedHMR model will be able toreachabove the possiblenegativesof perceived
freshnessandshrinkage risk.Whenconsideringperceivedfreshness,the proposedmodelisafresh-
foodsfocusedbusinessandwill be preparedwithoutpreservativesforlocal deliveryandpotentially
make use of local foodoptions.Thisprovidesanotheroutletatwhichto rise above otheroptionssuchas
frozendinners,t.v.dinners,andinstantfoods.Thisfocusrisesabove the in-store finishapproachthat
mostrestaurantsare usinginorderto create a quick-service focusinsteadof afreshfoodfocus.This

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HMR model canovercome shrinkage because itwill be proposedforanareathat has notyet been
exposedtothistype of home-fooddeliverysystem.
Facts, Figures,andthe Future’sresearchdone in2014 previewedmanyopportunitiesaboutthe
Home Meal Replacement.
Theyfoundthe industry
isprojectedtogrow at a
6-7% compoundingrate
through2017 and reach
salesdollarsintothe mid
billions.Thisrate is
outpacingthe expected
annual compoundingrate
of retail groceryfoodand
beverage at2-3% and the 3-4% of foodservicebetweennow and2017. The graphto the rightshows
compoundingratesforboththe 2007-2012 and2012-2017 projections.
Millennials,individualsbornbetweenthe yearsof 1990 and 2000, have become the primary
consumerandfocus foradvertisementsforthisnew type of foodsystem.Acostaresearchshow that
78% of Millennials/GenYersboughtHome Meal Replacementthroughdelivery oreasyto prepare
frozenmeals.Thiscanbe comparedtothe otherpercentage of HMR users:68% fromGenXers,60% of
Boomers,and57% of seniors.Thisshowsandobvioustrendtowardindividualswantingtheirfoodtobe
preparedforthemand be easilyrecookedif usedafterthe initial cookingprocess.Already,more than
one infour (27%) individualsgotothe grocerystore to findprecookedmeals.Householdsaveragearate
of 5.9 ‘away fromhome’mealspermonthat the endof 2013, whichwentup fromthe 3.9 at the start of
2013 (includesbreakfast,lunch,anddinner).

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Whencombiningthe above informationitwouldseemthatthere are limitedbarrierstoentry.
There isroom for thistype of newbusinessinalocal settingorin a majormetropolitanarealike
Indianapolisthatdoesnothave a prominentfootholdinthe industryaswell asthe fact thatthere are
fewcompaniescompetinginthe industryingeneral.Investorsseemtobe opentothe ideasof thistype
of businessandeagertofinance suchprojects.There wouldbe verylittle ResearchandDevelopment
neededandseeminglynocontrol of resourcesbyothercompanies.
CurrentOptionsforHome Food Delivery
Home fooddeliverysystemsare mostobviouslycategorizedbypizzaandsandwichdelivery.
Whenan individualsaystheywanttoorder delivery,theyare mostlikelyspeakingonone of these two
items.These deliverysystemswere the firsttooffersuchservices.There are manycompaniesthatare
includedinthe beginningsof the fooddeliverysystemmarketthatare easilyrecognized:PizzaHutt,
Domino’s,JimmyJohns,PapaJohns,manyChinese restaurants,some burgerplacessuchasAJ’sBurgers
and more all include adeliverysystembutthe coststo thiswouldbe outrageousfora week’sworthof
food.
There have beenwebsitescreatedforpeople toorderfoodfroma restaurantthat doesonly
pick-upordersandhave that delivered.Anexampleof thiswouldbe GrubHub.cominLafayette,IN.They
have createda website thatincludesmenus,pricing,andorderingoptionssothata personcanorder
foodfroma restaurantsuchas Scotty’sBrewhouse,Chili’s,Spaghetti’sorColdStone andhave your
orderdelivereddirectlytoyourhome.Thismakesrestaurantorderingconvenientforpeople whowould
like tohave a specificfoodcategorybutdo notwant to or cannotgo to the restaurantandpick itup
themselves.The problemwithsitessuchasthisis itis restaurantqualityfoodandtheyare limitedto
theirspecifiedlocationsandare not healthyforrepeateddailyconsumption.

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There are otherwebsitesthatspecialize inareasof cuisine deliverysuchas1-800-Bakery.com
and Delivery.com.1-800-Bakery.comdeliversbakedgoodsdirectlytothe home.Theyselectlocal
bakeriesandbakerieswithtopchefsthatcookfresheveryday.Theyevenhave optionsforspecial
orderssuch as glutenfree,sugarfree,flourless,andkosherbakedgoods.Delivery.comislocatedin
majormetropolitanareassuchas Chicago,New Yorkand Boston.Theywill deliveranythingfromfood
fromrestaurantsand grocerystores,to liquorandwine froma liquorstore.These have the same
problemasthe GrubHub.comwebsite orpizzaandsandwichdeliveries,theyare limitedtoacertain
location,city,ormetropolitanareaandare notveryhealthywhenconsideringeverydayconsumption.
All of these websitesfunctioninthe same way.The firststepisto type ina home addressand,
dependingonthe website,whattype of servicethe individual wouldlikedelivered,andthenclick
‘search’.Thiswill searchthe areaaroundthe specifiedlocationforanyservice thatiswithinacertain
distance fromthe deliverer’slocationinrelationtothe individualsown.Once thisisdone anew page
will displayall optionsavailabletoyouforpick-upanddeliveryof the service providedorservice
requested.
Again,the glaringtrendswithall of these optionsisthatmostare notextremelyhealthyand
eventhoughthere are otheroptions,suchasGrubHub.comor Delivery.com, theyincludealimited
numberof citiesthatoffersuchservices.Anindividual mayhave toorderfoodfromfive orsix different
companiesbefore theycouldhave mealsforthe weekthatnotonlydifferdailybutweeklyandfind
healthyoptions.Thisthenthisbecomesextremelyexpensive,especiallyforthose individualswhoare
disabledandlive onalimitedincome.Thisiswhythe industryneedsmore companiesthatfocus
primarilyonhealthymeals thatdonotcontainpreservativesandgive awide varietyof optionsfor
weeklyordering,notjustdailydelivery.

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The Home Meal ReplacementIndustryisbooming,especiallydue tothe convenience of
someone else cookingyourfoodandhavingitendup at the frontdoor. There are some companiesthat
have startedto pop-upthatdeliverand/orshipcompletelyhomemade,healthymeal creationfrom
scratch. A limitednumberof these companiesevendeliveracrossthe UnitedStates.Theypackage and
freeze orrefrigerate theirfoodandshipitto consumers.The websitesare setupinmany differentways
and dependingonthe companyhave manydifferentcombinations:meal plans,familysizes,sidedishes,
deserts,andevencompletemealsforasingle person.The single personoptionisone of the best
consideringitisextremelyhardtoshopat a supermarketforone or twoindividuals.Mostgrocerystores
offerfourto five productsina package witha focuson average familysize.
CompetitorExample:MagicKitchen.com
MagicKitchen.comhasone of the most diversifiedmeal optionsavailableandisthe bestHome
Meal Replacementwebsite anddeliveryservice tocompare to.MagicKitchen.comhasbecome a
frontrunnerinthe Home Meal ReplacementIndustry(HMR).Accordingto MagicKitchen.com,HMRis
currentlya multi-billiondollarindustrythatwill notbe slowingdown.Almost50% of Americans
purchase mealsforin-home consumptionatleastonce aweek.MagicKitchen.comrealizeda53%
growthfrom quarter3 to quarter4 from 2006 to 2007. The HMR industryisexpectedtobecome the
leadingcontributortothe overall growthof the foodindustryandwasprojectedat$170 billionin
annual salesfor2014 and contribute to80% of the overall growthinthe foodindustry.
MagicKitchen.com’smealsare preparedbytopchefsusingqualityingredients,flashfrozen,
packaged,anddeliveredtothe consumer.Theyactivelyparticipate intheircommunityandhost
fundraisers.Theyare anA+ BBB Accreditedbusiness.MagicKitchenwasfoundedin2005 and offersthe
followingmeal plans:Senior’sMeal Plan,ElderlyMeal Plan,precookedmeals,SeniorMeal Delivery,
seniormeal program,DiabeticMealsPrograms,Low Carb Meals,WeightLossMeals,andfooddelivery.

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These plansare amazing,butbode well tothe fact that meal plansare gearedtowardthe elderlyand
diabeticanddonot advertise towardshandicappedordisabledindividualswhoalsomaynotbe able to
cook easily.
MagicKitchen.comdoesanamazingjobof settingup
multiple combinations of foodforall typesandsizesof
households.The followingislocatedonthe left-handside of
theirhomepage (diagramonthe left).Theyhave mealbundles
that range from mealsfor1-2, 3-4, and 5-6, comfortfood
bundles,familysize bundles,HomeStyle bundles,senior’s
bundles,customerfavorites,soups,desert,andtop-ratedmeals.
Theirmaincourse optionsare dividedaccordingtoproteintype,vegetarianstyle,appetizersandsnacks,
breakfasts,breads,andquicklunches.There are optionsforindividual family-sizedmeals,soupsand
salads,anddesserts.Theyhave asectionforcomplete mealsforone personaswell asa HomeStyle
healthysection.MarketMealsSpecial Dietsmenucontainsitemsforindividualsneedingspecial meal
plans:seniors,portion-control,lowsodium, diabetic,renal diets,anddialysisfriendlymeals.Discounts
include first-timebuyers,seniors,andaspecial dealspage.
MagicKitchen.commakesitverysimpletofindall the informationyouwouldneedforeach
individualdish.Once youdecidewhatmaincourse option/syouwouldlike tolookat(there isalsoan
optionto‘viewall’) youcanclickon each meal andit will show youascreenwithinformationaboutthe
dish.The informationpage issetupthe same for eachdishso it iseasyto findthe informationpursued.
The firstthingyou will see isaslightdescriptionof the itemwithacolor-codedcircle tohelpdefine
special preparations,whattype of meal itis(low-carb,low-sodium, vegetarian).The label typesare

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showninthe diagram to the right. Thisinformationisfollowedbyservingsize,thenaningredientslist
witha NutritionFacts
label.Onthe righthand
columnthere isa
picture of the meal optionswithpricesforservingsof twoandfour followedbyheatinginstructions,
customerfeedbackandratingsforthe meal itself.The ingredientslistwill includeif there are any
preservativesornon-natural ingredientsinthe food.
Pricingisimportantforany company,there needstobe profits,andthese varyquite alotat
MagicKitchen.comdependingonthe waya customerissettinguptheirorder.There are six different
meal packagesforthe ‘MealsforOne’options,all with8preparedmeals.These range inprice from
$115.00 to $311.00. Meal bundleshave anextremelyhighamountof options,andtolistthemall here
wouldtake a while,buttheycanrange from $13.99 for an individual servingof shrimppastaalfredofor
one personto $599.99 for the ‘Meat Lover’sBundle’thatincludesshortribs, beef potroast,beef sirloin,
stuffedpeppers,lambshank,bakedpotatoes,mashedpotatoesandthree desertoptionsthatwould
feedsevento10 people.
Lastlythe FAQ sectionisextremelyhelpful infindinginformationaboutnutrition,packaging,
ordering,shipping,andothermiscellaneousitems/questions.Theyansweranvital questionregardingif
there are organics usedandqualityof the products.KitchenMagic.comsates:
We do use restaurant quality product at all times and do try whenever possibleto use
organic fruits and vegetables, grain fed beef and hormone free chicken. The ingredients are all
antibiotic free, hormone and pesticide free. Since our menu is a sustaining menu, at certain times
of the year, some product is not readily available or is not at reasonable cost. In all cases we use
top quality ingredients and never compromise with lesser quality products, ingredients or spices.
Having healthy and nutritious meals is our intention at all times.

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Overall Results
Overall, when contemplating on all the above information it can be seen that the Home Meal
Replacement proposal should do well in the up and coming industry. HRM Industry is obviously
growing and doing so with a healthy and diversified focus. This is going to be necessary as the
marketed demographic is increasingly swaying towards individuals who do not cook but want
diversified meals. The fact that the industry is increasing itself can be seen in the fact that the
industry is projected to have an overall growth of $170 billion dollars by 2014 and contribute to 80%
of the food industry’s total growth. Competition would be websites such as the MagicKitchen.com
website above. These companies are already established with healthy meals, specialty meals for
elderly and people with health conditions, and nationwide delivery. The principal competitive
advantage for the proposed HMR business is the location. It would be local to the area, make use of
fresh foods from that area, and the food could be delivered refrigerated instead of packaged and
frozen. Another competitive advantage the proposed HMR business would maintain against these
competitors is a rotating menu. Possible every two weeks or once a month some item options would
change. This could depend on popularity and dishes of the month or week, Chef’s creations, etc.
Giving these options sets the proposed HMR business apart from the large websites. The proposed
HMR would also help maintain the area’s local economy which connects well with the community. All of
these things would help push and maintain NutraNetwork and set it apart to attract and keep
customers.

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Management Team
Team ExperienceRequirements
The proposedHome Meal Replacementbusinesswouldrequire asmall groupof individualsto
run the entire operation.There wouldbe noneedforamajor top managementteam.Instead,a
groupingof individualswhocanworkwell together,communicate ideasandneeds,aswellasperform
theirfunctionefficientlyandeffectivelywouldbe ideal.The smallergroupwouldhelpsustainafeeling
of familyand/orfriendshipbetweenemployees,creatingamuchmore openatmosphere where work
wouldbe fulfillingandenjoyable.
The General Manager dutieswouldbe giventothe creatorandCEO of the company.The
General Managerdutieswill include ensuringlawsandregulationsare beingfollowedforall food
preparationandhandling,the correctamountfoodiscookedandas little waste aspossible occurs,
orderinvoicesare beingfilledcorrectly,andindividualsare consistentlyperformingtheirspecified
task(s) at the bestrate of efficiencywiththe mosteffectiveprocedures.The General Managerwill
ensure employeesare performingaccordingtostandardsby periodicallyauditingall levelsof the
productionprocess.Itissuggestedthishappeneveryquarter.Followingthisprocedurecanalsohelpin
identifyandcorrectissuesthatarise withinandbetweenstagesinthe productionprocess,frominitial
orderreceiptto final deliveryof producttoconsumer.
The Financial Managerwouldhave multipleresponsibilities.Price settingwouldneedtobe one
of the beginninggoals.Thiswouldbe done inconjunctionwiththe CEO/GeneralManager.Pricesshould
be set forall levelsof meal plansfromsingle servingand individual mealstothe large grouppackages
and total meal replacementoptionsforsingleormultipleweekorders.Discountswill be calculatedand
includedasa customerincreasesthe amountof meal itemsorderedoracustomerorderspre-compiled
single tomultipleweekmealplans.

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AdditionallyFinancial Managershouldinclude the creationandavailabilityof bulk-orderdealsin
orderto supplya more convenientoptionforindividualswhocannotcook,donot cook,or do not enjoy
cooking.The individual shouldalsomake the decisiononwhetherornotto charge a deliveryfee,andif
so,how muchit shouldbe inorderto at leastcovertruckmaintenance.A Financial Managerisneeded
for predictinggeneral fluctuationsindemandandprice changesinorderto more accuratelypredict
fluctuationsinthe customer’sneedforthe product(s).The AccountManagerwill workwiththe
Financial Managerso to reviewaccountsreceivableandaccountspayable toaccuratelymake use of
fundsforoperations.These twomanagersneedtocollaborate sotokeepinventoryup-to-date basedon
predictedfuture need,costof itemsinbulk,andthe cost(s) of shippinginventorytothe company
location.All of these tasksshouldbe completedsothatall expenseswithinthe company canbe
successfullycoveredandhopefullyproduce aprofitenoughtoquicklybeginpayingoff debtusedfor
start-upcosts.
There wouldbe needforhiringanAccountManager. Thispositionwouldbe requiredtokeep
track of incomingordersaswell ascheckingwithcustomerstoknow thattheirordersarrivedon-time,
packagedand producedtotheirsatisfactionwithnodefaultsormissingitemswithintheirscheduled
time frame.Thisallowsanotheravenuetomeasure the efficiencyandeffectivenessof the Delivery
personnel.The AccountManagerwouldbe requiredtoupdate placedordersfromcustomersandthen
pass the informationontothe HeadChef inorder to beginproductionof mealsforthe selectedgroupof
customerorders.The Packagingemployee(s) shouldalsoreceive orderinvoicesthroughthe Account
Manager. AccountManagementwouldresponsible foractive accountsreceivable andaccountspayable.
Active payment(s) andpaymentschedule(s)includingthose received,those onscheduleorlate,tracking
of customersona paymentschedule. The Financial Managerwouldworkwiththe AccountManagerto
coordinate andprocessanyincomingpayment(s).Fundsfromthe paymentswouldthereforetransfer
intothe Financial Managerspossessioninordertodisperse the fundswhere necessary.

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The kitchenteamwouldinclude the HeadChef andSousChef withpossible other’sworking
part-time forheavyorderingtimeswhilehavingknowledge,backgroundandexperience withinthe
foodservice industry.A HeadChef wouldneed tobe able toorganize andcook ina professional kitchen,
inventoryfood,knowrotationrequirementforfood,understandstate regulationsconsideringfood
handlingandprocessing,aswell asknow policiesregardingstorage requirementsforthe drystorage,
freezer,andrefrigerationunits.Kitchenstaffwillbe responsible forthe continual preservationof the
entire kitchenareabyfollowingstate andstandardcleaningandsanitationregulationsatall times.This
shouldincrease the efficiencyof the kitchenutilitiesandcleaningscheduleprovidedbythe HeadChef.
The Head Chef wouldneedtobe able tocoordinate activitieswithinakitchenstaff includingone or
more Sous-Chefs.The combinationof HeadChef andSous-Chefsshouldbe able tocome upwitha
monthlymenuwithsome rotatingitems.
An importantemployeetoprovide the Home Meal ReplacementCompanywithwouldbe a
Nutritionist.Thisindividual wouldworkdirectlywiththe General Managerandthe HeadChef.The
Nutritionistwouldbe responsibleforhelpingthe HeadChef andpossible the SousChef increationof all
natural mealswithnopreservativesorhighfructose cornsyrupused.He/She wouldalsoneedtofind
local providersforlimited-timedishedcreatedfromgoodsfoundinthe specificcommunity.This
positionwouldhelpcreate mealsforthe elderly,mealsthatareaeasyto swallow and/orchew,meals
for diabeticsandmealsthatcan be consumedeasilybymultipleclassificationsof disabledindividuals.
At leastone full-timePackagingandone part-time Packagingemployee wouldbe neededin
orderto package and group foodsbyorderinvoice.Packagingof foodswouldrequire the individualto
take multiple,large batchesof foodandcombine individuallycookedpartsof a meal andcombine them
intoindividualdishes.Single mealswouldthenbe groupedbyindividual customer(s) inaccordance with

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theirorderinvoice.Thisincludesanymeal planfromindividualandsingle orderstolarge group
packagesand single ormultipleweekorders.Once eachcustomer’sorderinvoice isfilled,the completed
ordershouldgo throughfinal packagingfortransportationandmove toa holdingareauntil all orders
are processed.
Packagedordersshouldbe storedineitherthe freezerorrefrigerationdepending onthe meals
needbefore beingloadedintoarefrigeratedtruckanddeliveredsame dayornextday.Some type of
reference shouldbe usedtoidentifywhatitemswere bundledwithineachpackagedorder.Thisshould
be matchedto an invoice.Bothshouldcontaincustomer’sname,addressincludingcityandstate with
zipcode,ordernumber,date of cooking,date of expiration,andexpecteddeliverydate andtime.This
can be createdusingprintable stickerlabelsforeachpackageditemtomatch invoicesbefore being
loadedandshippedtoconsumers.Thiswaythe groupingandpackagingof the customerordersis much
more efficientlycoordinatedsoasto effectivelynotmake bundlingmistakes.
The Packagingemployee(s) wouldneedtobe providedwithalistof ordersaswell astime for
completionof anitemizedcheckof the invoice tothe reference label,andfinalizationof packagingby
sealingthe bundlesintoindividual consumerorderboxes.Eachcustomerbox shouldhave anexterior
label thatincludesanitemizedlistof all productsinsidethe package,the customer’sname,address
includingcityandstate withzipcode,anda reference numbertolinktoindividualorgroupeddelivery
stopsor areas. All thisinformationshouldbe onthe topof the boxedorders inorderto helpthe delivery
driveraccuratelyschedule andplantheirroute.
There wouldbe a potential needforadishwasher.Thisfunctionmaybe able tobe accomplished
by the packagingand kitchenstaff.General cleanlinessof the kitchenitselfwillbe maintainedbythe
HeadChef and SousChef(s) everynightwithspecificweeklytasksthatneedtobe accomplishedsuchas

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hoodand ventilationcleaning,equipmentcleaning,grease removal andothergeneral cleaning
requirementsof acommercial kitchen.
Both the Driverand General Managerwouldalsoneedtoreceive theirowncopiesof invoice list.
The Driverwill receive acopyof thispaper workinthe form of an invoice list.The Driverwouldalso
obtaindocumentsforcustomerstosignacknowledgingdeliveryunlesstheysignawaiverallowingthe
deliverytobe leftif noone isat the premisesatthe time of deliverydrop-off.These signedformswill
needtobe returnedtothe companyfor anyissuesor complicationswithcustomers.The invoice list will
alsobe usedbythe General Manager to periodicallydouble checkorderssotoensure theyare being
filledcorrectly,withoutdefects,checkforqualityof the foodandpackagingtechnique.Alldocuments
wouldneedtobe kepton recordor recordedintoa systemsothat, shouldanissue arise,the records
will be able tobe usedfor reference.
Once mealsare assembled,grouped,packaged,andloadedthe responsibilitywouldpasstoa
Driverfor deliveryof finishedproducts.A refrigeration/freezertruckwouldbe neededtotransportthe
productsaround.The Driverwouldbe requiredtohave up-to-datecertificationstodrive the appropriate
deliverytruck.The individual wouldbe providedwithaGPSsystemthat wouldbe consistentlyupdated
so that they couldeffectivelyplanadeliveryroute tohomesof customersinthe mostefficientway
possible while takingintoaccountrequesteddeliverytime blocksprovidedbythe customer(s).Deliver
personnel wouldbe givenagascard thatwill be filledonaweeklybasiswithabalance equal tothe gas
pricesat that time timesthe amountof milesthatshouldbe neededtofinishall deliverieswithina
designatedtime frame.Routingdecisionswill be checkedbythe General Mangerperiodicallytoensure
designeddeliveryschedule(s) are atthe optimumlevel fortime-costsavings,efficientroute selection,
and truck maintenance.
Advisorsand Consultants

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Advisorsshouldbe spokentoandbroughtinduringthe beginningstagesof the companyfor
inputonmultiple aspectswhenstartingandrunninganew company.Anindividual whohasmultitudes
of informationonkitchenorganizationandspatial use withinwouldbe animportantfactorfordecisions
regardinglocation,layoutof the kitchenandrefrigerationandfreezerunits.Maximumutilizationof
companylocationwouldbe animportantfactor inbeingmostefficientwithcreatingandproducing
multiple large batchesatatime as well asgroupingthese dishesintomealsandstorage before delivery.
The kitchenadvisorshouldbe able tohelpwithincreasingthe efficiencyof the kitchenandachievingthe
level of outputneededtosupportfoodcosts,equipmentcosts,andmaintenance costs.
A lawyershouldbe broughtinasa consultantforthe purpose of bringingmanagementtogether
inorder to procure a partnershipagreement.Thisagreementwouldincludeanyandall partnersand
investorsbecominginvolvedinthe Home Meal Replacementbusiness.A lawyercouldalsohelpprepare
registrationtothe SEC and procurementof taxationandlegal documentsforthe IRS.Attemptingto
accomplishthiswithoutlegal assistance couldjeopardize completinganyinitial stagesof forminganew
company.The lawyermayevenbe requestedtoreadthe suppliedproposal toagree thateverythingis
lawful andnothingthatisor may be necessaryforinclusioninthe documentisomitted.
Anotherkeyconsultantshouldinclude aRoutingAnalystforassistanceinorganizingthe
program neededforadeliverysystem.The individual shouldbe able to helpimplementaGPSsystem
that can be modifiedtoinclude orexcludespecificdestinations.Preferablythe systemshouldbe able to
produce a schedule where similardeliverylocationscanbe groupedandthenlinkedinordertodeliver
ordersquicklywhile upholdingrequesteddeliverytimeslotsbycustomers.
Ideallythe systemshouldresemblesomethingclose tocityandsuburb GPSdeliveryroute
configurationsusedbythe UPSand FedEx conglomerates.Note the figure foundinAppendix,B,foran
example of aGPS designedfordeliveryroutescouldpossiblylooklike.A secondaryfigure foundin

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Appendix,C,demonstrateshowmultipledeliverytruckscanbe routedwithinthe same program. The
GPS systemmaybe installedintothe deliveryvehiclesviause of asmall computer,a laptop,orit can be
portable viathe use of a handhelddevice.A handhelddevice orlaptopwouldbe ideal inordertomore
readilytransferinformationaboutroutesandschedulesfromadesktopcomputertothe Delivery
personnel’sdevice.Thiswill alsoallow forquickupdating,troubleshootingproblemsandeven
replacementof devicesif necessary.
Key Service Providers
Marketingand advertisingserviceswouldbe neededtopromote the new business.The most
likelyplacestomarketand advertise wouldbe throughcommercialsandwithinsocial service
informationguides.Theseguidesare giventoelderlyanddisabledpeople inordertohelpthemfind
servicestoprovide themwithnecessaryitems.Anoutside source forbulkpurchasingof foodand
packagingsupplieswouldbe needed.Eitherthe same ora secondaryservice forthe kitchenitems
themselveswouldbe neededaswell.Forexample procurementof stoves,ovens,etc.A service for
maintenance of the kitchenapplianceswouldbe required.Inregardstofinancial situationsan
accountantcould be usedbuta simple point-of-sale systemwouldbe easytoindividuallyuse insteadof
outsourcinga financial focusedindividual.
An expertforkitchendesignandarchitecture wouldneedtobe broughtinaftera locationis
selectedtohelpplanandsetupa layout.Thiswouldbe necessarytoincrease efficiencyof food
preparationandstorage before andaftermeal creation.Thisindividualwillhelpinplacementof all
kitchenequipment,drystorage,freezerandfridge locations,aswell asentrywaydesign.The overall
purpose of thisindividual wouldbe toaidincreatinga kitchenthatcan be usedforlarge batchesof food
preparation.Suchan individual mayneedexperience inthe designof cateringkitchensand/orkitchen

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that produce large amountsof food.Thisexpertcouldhave previousbackgroundinthe designandset
up of hotel andbuffetkitchensinLasVegas,whichserve amassive amountof people perday.
A thirdkeyservice providerwouldbe awebsite designer.Thisindividual wouldbe broughtinfor
a short time periodinordertoaid inthe creationof the website.The mainpurpose of thisindividual
wouldbe to setup paymentprocessingabilitywithinthe website.A secondarypurpose isinrelationto
the flowof the website anditsnavigation.Thisisimportantsothatcustomerscan findwhateverthey
are lookingforeasilyandquickly.
Otherservice providersthatneedtobe notedare:securitysystem, point-of-sale(POS) systems
and trash/grease removal systems.A companyshouldbe broughtintoestablishasecuritysystemforthe
location.Thiswill include fire safety,emergencyplanning,exitprocedures,andmappingforexit
strategiesincase of emergencies.A POSsystemshouldbe purchasedtohelpkeeptrackof inventory
levels,necessaryorderingschedulesandotherinquiriesregardinganyperishable andnonperishable
fooditems.Trashand grease removal canbe done by any waste removal company(s) andshouldbe
processedona weeklyschedule.

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Company Structure
OrganizationalStructure
The organizational structure of the proposedHome Meal Replacementbusinessshouldcome
across as fairlystraightforward.Beingpersonallyresponsibleforthe creationandentrepreneurial nature
of the proposedbusiness,the CEOandGeneral Managerwouldbe overseeingall departmentswithin
the company’sstructure.The AccountManager, HeadChef,andFinancial Advisorwouldall reporttothe
CEO/General Managerandwouldbe appointedasthe headof eachof theirdepartments.The Account
Manager wouldworkwiththe Financial Advisortokeepupdatedreportsonall openaccountpayments.
The Head Chef wouldbe responsibleforoverseeingthe SousChef(s) andNutritionist.This
structure helpssupportthe creationof new dishes,replicationof previouslycreated dishes,pre-
planningtoorganize acookingschedule,andkeepingeverythinghealthyforthe customers.All three,
AccountManager, Financial Manager,andHead Chef wouldworktogetherinordertoproduce healthy,
balanced,all natural mealsforthe differenttypesof customersthe businesswill be supporting. They
may needtocollaborate tokeeptrackof inventorylevelsandorderinvoices.

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The Account Manager wouldbe responsibleforoverseeingthe deliverypersonnel,keeptrackof
shippingdates,processincomingorders,compile andanalyzedatatopredictwhennew orderswill
possiblybe putin,andoverseeingthe deliveryroute iscorrectinaccordance withdeliverytimingand
scheduling.The AccountManagerwill be responsible forgivingordersthat needtobe filledtothe
PackagingDepartment.The AccountManagerand HeadChef will partnertooversee the Packaging
Department.The HeadChef or SousChef will needtoprovide informationdescribingwhichelementsgo
withineachdish,howtobuildeach dish,andhow to properlypackage eachdishto ensure freshness.
Legal Structure
The ideal model forstart-upHome Meal Replacementbusinesssectorwouldbe mostsuitableto
a partnership.Ina partnershiptwoormore individualsformanagreement,typicallywithone
individual’spersonal assetsactingascollateral againstthe restaurant’sdebt(s).Thisisthe ideal model
because the businessoriginatordoesnotpersonallyhave enoughassetsorcapital tofinance astart-up
withoutsome formof financial backup.AccordingtoJasonRahmfrom foodservice Warehouse,thisisa
popularbusinessarrangementforsmallerfoodserviceestablishments.
JasonRahm fromFoodservice Warehousediscussesthe mainadvantagestothe partnership
optionforbeginninginthe foodserviceindustry.One,the monetaryrelationshipcanbe splitup
betweenindividualsorfundedbyone ormore investorsaspartners.Since startinga new foodservice
facilityinvolvesalotof capital forequipment,retail/rentalspace,andotherexpensive resources,the
monetaryburdencanbe splitbetweenmanyindividualsand/orinvestors.Secondly,includingmore
people meansthatmultiple individualswithdifferentskillsandexperiencescancomplementeachother
and benefitthe growthof the business.
Potential investorsshouldnotonlybe interestedinthe Home Meal replacementindustrybut
shouldalsohave a backgroundinbuildingandgrowingsuchventures.Ideallyaprominentchef whohas

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workedtheirwayfromworkinginthe kitchentomanagingandowningrestaurantswouldbe agreat
benefittothe company.A chef whohas experience workinginthe kitchenandhasa passionforhelping
the lessable become more independentandfunctional intheirownhomeswouldplayagoodrole as an
investoraswell asfillingthe role of HeadChef forthe managementteam.
A partnershipagreementshouldbe contractedtofullyexplainanddocumentthe rolesand
involvementof eachpartner.JasonRahm fromFoodservice Warehouse reviewssix majorsectionsthat
shouldbe includedinthe agreement.The firsttwoelementsshouldincludedefiningcontributionsto
the partnershipandallocationsof profitsandlosses.Contributiontothe partnershipsshouldinclude
relevantelements.The maintopicsinvolvedshouldincludebutare not limitedto:whoisinvesting
monetaryfunds,knowledgeof specificprocessesandprocedures,expertiseonspecificsubjects,
ownershipof buildingandlandfacilities,amongothers.Allocationof profitsandlossesare normally
allocatedwithprofitsandlossesbeingequal tothe percentof monetarycontributioneachpartnerhas
made.The day-to-dayexpensesneededforthe home meal replacementbusinesswouldbe deducted
before anyprofitsare distributedamongstpartners.
Two additional agreementareasdefinedbyJasonRahmfromFoodService Warehouse
addressesdefiningeachpartner’sauthorityforthe businessandhow toadmitnew partnersif ever
someone wouldbe interestedinthe company.Establishingindividual partner’sauthorityand
responsibilitieshelpsestablishamanagementstructure betweenthe partners.Thisisespecially
importantwheninvolvingmore thantwopartners.Itmustbe explicitlydefinedwhoisincharge of what
aspectsof the businesstoavoidconflictmanagementstyleswithineachdepartmentandunnecessary
overlapsbetweeninformationandworkload.Theseshouldbe definedbasedonexpertknowledge that
each partnerdelivers.Admittingnew partnerscanhave multiple benefitssuchasbringingina new
expertopinion whenspecificissuesarise and/orsourcingadditional monetaryfundsif needed.Thisis

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mostcommonlydone througha votingsystemwiththe existingpartners.A majorityrule ismost
favorable forthissituation.
The final twoagreementsubjectsdiscussedbyJasonRahmfrom FoodService Warehouse
touchesonactionsto take whenapartner eitherwithdrawsfromthe agreementorisremovedupon
deathas well asguidelinesforresolvingdisagreementsif anyshouldarise.Whenapartnerhasbeen
removedfromthe partnershipagreementforwhatevercause,the agreementshouldspecifydirectly
howthe removedindividual’ssharesand/orinvestedcapital shouldbe dividedamong eachindividual
remaininginthe partnership.Thiscanbe basedonagreeduponpercentages,splitdependingonthe
amountoriginallyinvested,and/oragreedtobe givenequally.Thisshouldhappenonlyafteranydebts
procuredto the companydue to the individualsactionsneedtobe paid.The final concepttoinclude in
the partnershipagreementshouldfocusonwritingaconflictresolutionclauseintothe agreementin
orderto minimize negativeeffectsdue todispute betweenmanagementindividuals.The mostlogical
approach wouldbe toagree to bringin a third-partytomitigate andmoderate soas to achieve a
solutionall partiescanagree upon.Thiswill includesome give andtake betweencombatantindividuals.
The final piece of advice thatJasonRahm of Food Service Warehouse includes,andisprobably
the most important,beginanystart-upproceedingsbyhiringaBusinessLawyertocomplete tax forms
and SEC documentsrequiredfornewlycreatedbusinesses.A BusinessLawyerwillhave up-to-date
informationaboutall legal requirementstoforma partnershipwithinthe state the businessis being
constructed.Alongwithaplethoraof legal informationregardingthe beginningof acompany,a
BusinessLawyermayalsohelpdraftthe partnershipagreementandbringtogetheranyotherformsthat
may be necessarytoget the businessupandrunning.NotesAppendix,D,forthe tax formsrequiredby
the IRS for anyone whowishestobecome amemberof orbegina partnershipbusiness.
Intellectual Property

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In the interestof the businessthereare a few legal issuesthatmustbe handledinordertofully
protectthe newbusiness.The firstitemwouldbe atrademarkonthe business’sname,NutraNetwork,
and logoif and whenone iscreated.Thiswaythere wouldbe a brandname associationthatcannot be
replicatedorduplicatedforanyreason.Thiswould lastaslongas the owner,TheresaMoeller,continues
to use the mark to identifythe goodsandservicesunderthe trademark.Nationwide protectionforthe
trademarkshouldbe obtainedbyregistrationthroughthe U.S.PatentandTrademarkOffice.Theycan
confirmthat the proposedtrademarkdoesnotconflictwithanypreviouslycreatedtrademarks.The goal
wouldbe to make sure the trademarkitself isnotconfusingandoriginallystateswhatthe service of the
proposedbusinessencompasses.
Once the businessisrunningandfullyfunctional,trade secretsmayneedtobe protected.These
wouldinclude,butare notlimitedtothe documentbeingproposed,anyadvertisementscreatedforuse
by the company,deliveryroutessoasto protectcustomers’home location(s),recipessothatnomeal(s)
may be copiedforothermeans.Aslongas thisinformationstaysexclusivelywithinthe handsof the
owneritis protectedunderstate statutes.Anycompetitorwhomaywrongfullyobtainthe information
may be suedforinjunctionordamages.
The businesswouldalsoneedtorentouta space that is suitable forandable toholda fully
functional kitchen,drystorage area,freezerunit,andrefrigeratorunit.Rental space shouldbe large
enoughtomaintainpreparationof large batchesof meal items.The lease wouldneedtobe recordedfor
at leastthree yearsinorderto fullyprotectthe landlordandtenant.The lease wouldneedtobe
conductedas a fixedtermlease tospecifythe amountof time the landlordiswillingto rentthe space
for.In hopesof continuingrentingthe locationthe premiseswillbe maintainedandcleaneddailyaswell
as inaccordance to state lawrequirementsforthe rotational cleaning.A sample lease canbe foundat
Appendix,A.

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Some smallerintellectual propertyrightsissuescanbe addressedshortlyinthe following.A
patentwouldmostlikelyneverbe usedbecauseitcoversinventionsof useful processesormachines
that may be implementedbymanyusers.A copyrightmayneedto be includedfor the physical business
proposal write-upandthe website inordertoprotectthese itemsagainstinfringement.These issues
shouldbe broughtupas questionswhenmeetingwiththe BusinessLawyertobeginthe processof
creatinglegal documentsforanyand all requirementsrelevanttothe proposedbusiness.

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Markets and Marketing
TrendsInfluencing theHMR Market
Afterevaluatingtrendsinthe foodservice industryitcanbe said,to a highdegree of certainty,
that Home Meal Replacementwithinthe industryisgrowingaswell asinfluencingchangesinthe entire
systemof fooddistribution.Accordingtothe U.S.Departmentof Agriculture,itisestimatedthatin1976
consumersspend13.8 percentof theirdisposable householdincome onfoodbasedproducts.Thisfellto
10.9 percentby 1996.
Trendsinhouseholdincome thatisspentonfoodbasedproductsforthe home change
drasticallybetween1976 and 1996. Spendingonfoodbecomesmore andmore dividedbetweenfoods
consumedat-home andfoodconsumedaway-from-home.Foodpurchasedforat-home consumption
droppedfrom9.7 to 6.7 percentas foodpurchasedforaway-from-homeincreasedfrom4.1to 4.2
percent.Overthe same time period,1976 to 1996, nominal percapital expenditure formealsconsumed
at-home rose 148 percent.Atthe same time nominal percapital expenditure formealsconsumedaway-
from-home increased269 percent.These shiftindicate achange inconsumerfocusfrompurchasing
ingredientsinordertomake a meal,tobuyingconvenientandeasytoprepare or premade foods.
Althoughconsumersstilleattheirmealsathome,how theyhave come toacquire the meal has
drasticallychanged.Nottoolongago mealswere preparedathome withfreshingredients.Today
consumerspurchase packageddinnersandprocessedfoods.Manypopularfooditemsusedforcooking
todayare prepackagedcompilationsof ingredientsneededforaspecificdinner.A few examplesinclude
the popularcannedfoodsbyChef Boyardee,the multitude of hamburgeroptionsbroughttoyouby
HamburgerHelper,andmultiple typesof frozenmealsreadytomicrowave andconsume.
Shoppersreporteatingtheirmainmeal forthe dayat home about 87 percentof the time
(Larson,1998). Larson alsostatesthat the amountof time allocatedforin-home foodpreparationand
scratch cookingas significantlydecreasedfrom1977 to 1997. Larson,1998, quotesYankelovichandNDP

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surveyscitingthat,since 1997, individualswill typicallyspendlessthan30 minutespreparingmeals.
Several decadesagomeal preparationcouldtake between 2to 2.5 hourswhile todayonly19 percentof
people spendmore than45 minutespreparingfoodforameal.
In 1986 64 percentof dinnerscontainedascratch made item.Justtenyearslater,in1996,
dinnerscontainingatleastone fooditemthatwasscratch made decreasedto55 percent(Larson,1998).
These trendsreflectthe movementtowardrefrigerateditemscreatedtoreduce the preparationand
cook time of meals.From1993 to 1998 the volume of refrigerateddoughsalesincreased10.6percent.
At the same time purchasingvolumesforbakingingredientsdeclined4.5percent,bakingmixesfell 4.4
percent,andbakingnutsfell 13.2 percent(Larson,1998).
There are twomajor factorsthat Larson (1998) contributesthe changesintrendstowards:
change in the dynamicsof familylife andthe reductionincookingknowledge.Familydynamicshave
drasticallychangedinthe pastfiftyyears.The 1960's focusedonthe value of a familyunitwhere the
fatherwouldworkwhile the motherwouldfocusonhouseholdtasks.Thiseraalsofoundcore valuesin
familybusinessesandpassingof thatresponsibilityfromparenttochild.Drasticchangesto thisdynamic
occurredin a short periodof time.By1996, 91.3 percentof mendand66.7 percentof womenwiththeir
ownchildor childrenunder18 livingathome were employed.
Lack of cookingskills,knowledge,andconfidence isanimportanttrendchange discussedby
Larson (1998). About20 percentof the populationisnotconfidentintheirabilitytocooka meal with53
percentof Americansfeelingtheyhave lessknowledge thantheirmothersandgrandmothersaswell as
fewercookingskills.The lackof abilitytoprepare one'sownmeal iscontinuallyincreasinginyoung
adultswithonlyaround30 percentof adultsage 18 to 24 beingcomfortable preparingafull meal.
Larson (1998) alsomakesnote of smallerfactorsthat maybe havingsome influence onthe
changingdynamicsonfoodservice.Forone,more individualsare skippingmeals,from2.2to 2.4 meals
perweek.Commerciallypreparedlunchesare now beingconsumedmore thancommerciallyprepared

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breakfastsanddinnerscombined.Amongtheseandotherfactorsthe combinationof increasedsocietal
time pressures,lesscookingknowledge,changingfamilydynamics,andincreasingchangesin
technologiesthatmake foodeasiertocookhas changedthe standardsto whichfoodispreparedand
bought.Mealsare increasinglybeingpurchasedawayfromthe home inrestaurantsor throughpremade
mealsfromgrocerystores.
Target Markets
The targeteddemographicmarketsforthe proposedHMR businesswill be individualswith
disabilitiesandseniorcitizensasthe focusof the service andwill alsoreachout to individualsenrolledin
highereducation,andsingle-parenthomeslivingwithin the FortWayne,Indianaareaandeventually
branch intoIndianapolis,Indianaarea.All of these groupsof people have the same characteristicswhen
it comesto foodpreparation,theydonothave the abilitytocook,theydo nothave the time to cook,
and/ortheymay not knowhowto cook.The followingparagraphswillgointodetail oneachof these
marketsegmentstoprovide more informationonthemandhow theywill be likelytoneedthe resource
of meal replacement(s).
To begin,the firstmaindemographicof disabledindividualswill make upadecentportionof the
marketinterestedinusingameal replacementsystem.The reasontheywouldmake use of sucha
service wouldbe due totheirinabilitytoprepare meals.The followingissome statistical informationon
theirdemographicfoundthroughthe IndianaCouncilonIndependentLiving:StatisticsDescribingthe
PopulationwithDisabilitiesinIndiana.Theyinclude hearing,vision,cognitive,ambulatory,self-care,and
independentlivingdifficultiesas the factorsconsidereddisabled.
In the U.S. 3.5% reporthearingdifficulties,with3.7% livinginIndiana.Visiondifficultymakesup
2.3% of the populationwithIndianhavinga2.2% average.Cognitive disabilityisslightlyhigherinIndiana
with5.1% versusthe national average of 4.8%.Ambulatorydifficultyisincludedforpersonsage 5and
older,withthe U.S.average at 6.9% and the Indianaaverage at 7%. Self-Care difficultymakesupabout

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2.6% of the U.S. populationwithIndianahousing2.5% of those individuals.Self-Care difficultyis
representedbyindividualsfiveyearsandolderlivingwithsome in-homecare.The U.S.reports2.6% of
the populationhavingthisneedwith2.5% inIndiana.IndependentLivingdifficultyrepresents
individuals18or olderwithrequirementsforin-home care.These individualsrepresent5.7% inthe U.S.
overall and5.7% livinginIndiana.
Data providedbythe Council onIndependentLivingreportshowsthatIndiana,asa whole,hasa
higherproportionof people with disabilitiesthanfoundinthe entire UnitedStates.Theyhave one of
the highestproportionsof individual withdisabilitiesages5through17, 8 through34, 35 through65,
and age 65 through74. Furthermore,comparedtonational data,Indianahasahigherrate of people
whohave difficultieswithhearing,cognitive function,andambulation.There isaloweremployment
rate andhigherpovertyrate amongHoosierswithdisabilitiesascomparedtonational prevalence rates.
The majorityof these individuals have noaccesstoany CentersforIndividual Livingassistance.
Thiscreatesa greatneedforservicestohelpthese individuals.Thismeansthatthe growthforHMR
serviceswill mostlikelycontinue togrow nomatter whatgeographical areathe service will be provided
in.Thisis especiallytrue forthe age demographicof retirees,asthe babyboomerswill begintoretire
soon.The followingtable showsthe comparative informationfordisabledindividualslivingwithinthe
Fort Wayne and Indianapolisareas.

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The secondmaindemographiccategorywill be seniorcitizenindividuals.These individuals
wouldmake use of the HMR service because theymaynotbe able to cooktheirfoodor theymay not
wantto. The IndianaBusinessResearchCenterreporteddatafromthe 2010 Census.Theyreportthat
By Population
City All Civilians Cvilians Disabled % with Disabilities
Fort Wayne 726,373 78,444 10.80%
Indianapolis 1,639,290 177,323 10.80%
By Age: under 18
City All Civilians Civilians Disabled % Disabled
Fort Wayne 139,493 7,039 5%
Indianapolis 316,798 17,657 5.60%
By Age: 18-34
Fort Wayne 158,361 10,744 6.80%
Indianapolis 363,947 19,726 5.40%
By Age: 35-64
Fort Wayne 288,858 32,596 11%
Indianapolis 666,694 78,020 11.70%
By Age: 65-74
Fort Wayne 47,168 9,632 20%
Indianapolis 91,802 25,146 27.40%
By Age: 75 and Older
City All Civilians Civilians Disabled %Disabled
Fort Wayne 38,229 18,358 48%
Indianapolis 71,413 35,579 49.80%
By Disability: Blind
City Blind Under 18 18-36 65 and Older
Fort Wayne 9,634 2,471 6,623 1.80%
Indianapolis 24,036 6,444 15,990 3.20%
By Disability:Hearing
Fort Wayne 726,373 22,563 3%
Indianapolis 1,639,290 49,175 3.00%
By Disability: Vision
Fort Wayne 726,373 12,084 2%
Indianapolis 1,639,290 30,602 1.90%
By Disability: Cognitive
Fort Wayne 726,373 29,894 4%
Indianapolis 1,639,290 66,489 4.40%
By Disability: Ambulatory
Fort Wayne 726,373 38,847 6%
Indianapolis 1,639,290 89,989 6.00%
By Disability: Self-Care
Fort Wayne 672,109 11,584 2%
Indianapolis 1,510,654 32,225 2.10%
By Disability: Independent Living
Fort Wayne 532,616 25,881 5%
Indianapolis 1,193,856 62,416 5.20%

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newpopulationprojectionswillhave agreatimpact onthe agingbabyboomerpopulationswithinmajor
metropolitanareaswithinthe state of Indiana.The percentchange inpopulationsof individualsages65
and overwill be 82% inFort Wayne,and98% in Indianapolisinthe nexttwentyyears.Thiswill alsobe
spurredbythe relativelystrongnetimmigrationof elderlyindividualsintothese majormetropolitan
areas:expectedtodouble withinthe next20years.The followingfigureshowsthe percentof
populationage 65 and overin2010 and the expectedpopulationin2030.
The UnitedStatesCensusBureauhasprovidedsome additional informationregardingsenior
citizensinthe state of Indiana.Indianaisexpectedtohave more residentsage 65 andolderby 2035
than those underthe age of 15. In 2000 roughly12% of the state populationwascomprisedof those age

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65 and older,comprisingnearly1in8 Indianaresidents.Thesenumbersare expectedtosteadilyclimb
from2010 to 2040 by 21% with1 in 5 residentsexpectedtobe age 65 and older.Around63% of
Indiana’spopulationgrowthwillbe accountedforbyindividualsage 65 andolderby 2040.
The focus of the secondarytargetedmarketswill be individualswithinthe highereducation
demographic.These individualsneedHMRservicesformultiple reasons:one,theydonothave time to
cook,two,theydo not knowhowto cook,three,theymaynot be able to cook due to unavailabilityof
kitchenswithindormsettings.The UnitedStatesDepartmentof Education’sIntegratedPost-secondary
EducationData Systemcontainsinformationregardingall recognizedinstitutionsforhighereducation.
In termsof enrollmentIndiana’sIvyTechCommunityCollege rankssecondwith175,313 students
enrolledfromthe 12stday of classfor the Fall,2013 semester.IndianaUniversityrankstenthonthe
largestpublicuniversitycampusesbyenrollmentduringthe 2013-2014 academicyearwith46,817
students.
These numbersbode wellforthe state of Indiana’sgrowingstudentpopulations.Accordingto
IndianaStatistics (Ma.2012), individualswhohave obtainedaBachelor’sDegree orhigherwas15.6% in
1990, 19.4% in2000, 23.6% in 2010, andis expectedtoreach26.4% in 2020. Specifically,the Fort Wayne
area containsindividualswhohave obtainedaBachelor’sDegreeorhigherwas15.7% in 1990, 19.4% in
2000, 24.3% in2010, andis expectedtoreach28.2% in 2020. The Indianapolisareacontainsindividuals
whohave obtainedaBachelor’sDegree orhigherwas21.7% in1990, 25.4% in2000, 29.6% in2010, and
isexpectedtoreach33.2% in2020. The followingtable show specifictrendstocompare betweenthe
entire U.S.and Indianapublichighereducationschools.Formore specificinformationonthe growing
trendsforother states(andto see where the informationwasobtainedfromspecifically)see Appendix
G.

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The National CenterforEducationStatistics’Projectionsof EducationStatisticsto2021 (2013)
givesmore insightsintothe growthof higher educationenrollment.Between2010 and 2021 it is
projectedthatenrollmentwill increase10% overall withenrollmentestimatesat13.6 millionstudents
betweenthe agesof 18 and 24, 5.7 millionbetweenthe agesof 25 to 34, and 4.6 millionatthe age of 35
or higher.Womenare expectedtoenroll more thanmenby2021 with18% and 10% respective growth
after2010. Full-timestudentenrollmenthasincreased58% since 1996 and isexpectedtogrow by 12%
up to 2021 withpart-time enrollmentata 31% increase since 1996 and expectedgrowthat18%. Below
isa graph showingprojectedoverallgrowthforundergraduate andpostbaccalaureate enrollmentas
well astrendsforthe growthinpublicandprivate institutions.
2010 2009 2005 2000 1-year 5-year 10-year
US 15,142,809 14,810,642 13,021,834 11,752,786 2.20% 16.30% 28.80%
Indiana 337,705 325,072 267,298 240,023 3.90% 26.30% 40.70%
2010 2009 2005 2000 1-year 5-year 10-year
US 7,218,038 7,101,445 6,184,229 5,697,388 1.60% 16.70% 26.70%
Indiana 105,914 99,911 59,969 50,308 6.00% 76.60% 110.50%
2010 2009 2005 2000 1-year 5-year 10-year
US 7,924,771 7,709,197 6,837,605 6,055,398 2.80% 15.90% 30.90%
Indiana 231,791 225,161 207,329 189,715 2.90% 11.80% 22.20%
Public Enrollment: Degree-Granting Institution Percent Change
Public Enrollment: 2-year Degree-Granting Institution Percent Change
Public Enrollment: 4-year Degree-Granting Institution Percent Change

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The final and somewhatsmallerdemographicthatisbelievedtobe importanttothe proposed
HMR businessissingle-parenthomes.Single-parenthouseholdshave more thantripledasa share of
Americanhouseholdssince 1960 withsingle-momsmakingupaquarter of the U.S. householdsand
single-dadscomprisinganother6%.These individualsoftentimesworkexcesshoursandneeda
convenient,healthymealfor their
familiestoeat.These typesof
householdswouldmake use of the
HMR service due totime
constraintsontheirabilityor wantto prepare a
meal.
The UnitedStatesCensusBureauhasprovidedstatisticsonAmerica’sFamiliesandLiving
Arrangementsin2013. Theyhave providedadescriptionof the familieswithinthe Midwestthatare
FamilyHouseholds. Formore informationregardinghouseholdsandtheirnumbers,see AppendixHfor
a linkto the CensusBureau’sdata.
Productand Service Strategy
The firstand most importantfactorfor the proposedHMR businessesmarketingmodelwould
be positioningof the productsmade andservicesprovided.The positioningshouldlinkappropriate
description(s) withproductsandservicesprovidedbythe HMR.Positioningof the productsandservices
for NutraNetworkwill be centralizedaroundvariety,convenience,quality,serviceandexpertise.
A balanceddietwithineveryservingof foodwouldbe targetedinthe creationof meals.Thiswill
be achievedthroughcombiningthe necessaryproportionsof carbohydrates,proteins,fats,vitamins,
mineral saltsandfiberwithineverydishserved.Obtainingabalanceddietisespeciallynecessaryforthe
elderlyanddisabledclientelethe HMR service wouldbe supporting.Eachof these elementsprovide
somethingdifferenttothe body.Mainelementsincludecarbohydratestoprovide necessaryenergy,
Number Households Percent Total
Married 13,127 75%
Male Householder 1,253 7%
Female Householder 3,074 18%
Total 17,454
*Note: Family household is considered having at least one child and does not
include single individuals with no children. The total amount doe not include
such households.
Family Households 2013

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proteinsrequiredforrepairandasa source of energy,andfatscontainingfatsoluble vitaminsand
provide energy.The vitaminstobe consideredineverymeal include VitaminBtohelpsupportthe
body'schemical balance, VitaminCto helpthe bodyrepairitself,andVitaminEtosupportthe body's
natural processes.Mineral saltsare neededmore thanvitaminsinordertospur reactionswithinthe
bodythat sustainsystems.These are iron,calcium, sodiumandiodine.Fiber isespeciallyimportantto
the elderlyanddisabledtosupportperistalsismovementsof the intestinesthatdigestfood.
Position of Quality
The positionof qualityisafocus inthisHMR business.Use of all natural ingredients,no
preservatives,andespeciallynohighfructose cornsyrupsignifiesthatthe businessisconcernedwith
usingthe highestqualityproductsinthe dishescreated.Makinguse of local goodsfromthe area's
surroundingfarmersshowsconsumersthatthe businessisfocusedonsuperiorproductsbroughtto
themthroughsupportingthe local community.Thiscanevenhelpbringmore customerstothe business
wholookfor suchsupportof the community.
Qualitymayalsobe promotedthroughoutthe website.Designingthe website tobe warmand
invitingdemonstratestothe consumerthatthe businesscaresaboutthe productstheysell,givingan
image of qualityproducts.Aneasyto navigate website showsconsumersthatthe businesscaresabout
theirconsumersandwantsthemto be able to findas muchinformationaboutdishesaspossible.The
website shouldinclude imagessupportinganoverwhelming'foodfeeling'where the consumerseesan
image of the dishand feelsthe needtopurchase itbecause "Itlookssogood!".
Position of Variety
Varietyinthe HMR businessmodel revolvesaroundcreatingdifferingmenuoptionsavailableto
the consumerforpurchase.Since NutraNetworkwill be providingformultipletypesof individualswith
some of the requiringspecialdiets,offeringawide degree of variationincomplete mealsisrequired.
Proteinswouldinclude beef,chickenandporkasthe mostprevalentthroughoutthe availableselection.

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Seafood,includingshrimp,tilapia,salmon,crab,andotheroptions,can be a source of protein.Offering
such a varietyof proteingivesconsumersvarietywhenselectingtheirmealsinordertonotbecome
repetitive.Thisisalsoveryusefulwhendecidingonmeal planpackages.The focusof the dishneedsto
be accompaniedbyside options.These will include all andanytypesof vegetables.Vegetablescanbe
placedwithanymeal and can easilybe substitutedforeachotherwhenone runslow.Broccoli,
cauliflower,carrots,peas,greenbeans,andavarietyof potatopreparationwouldbe the mostprevalent
vegetablesthroughoutall dishes.
Vegetarianandbakeryoptionsmaybe includedtodraw more consumers.Thiswouldmostlikely
be addedafterthe businesshasgrownenoughtosupportthe creationof special dishesandthose
individualsneedingtobe hiredtobranch intothese supportingareas.A separate nutritionistmightbe
neededwhospecializedinvegetarians;while abakerwouldneedtobe hiredora bakerywouldneedto
be outsourcedinorderto include these items.Simple bakedgoodssucha bread,cookies,andsimple
cakesand piesshouldbe able tobe createdby the currentheadchef.
On a final note,awebsite wouldmore readilyprovide varietythanastorefrontmenualone
couldexplain.The plethoraof convenience throughawebsitecanbe seenwhenlookingatmeal
bundling.Thismakesiteasyforan individual topickapresetcombinationof mealsreadyforanentire
week,asingle meal forone day,multipleservingsof the same dishfora familydinnernight,andeven
create theirownbundle froma smallerselectionof dishes.
Position of Convenience
All productsofferedtothe consumershouldbe positionedtobe convenient.Convenience was
ratedas the topreasonwhy consumersbuyHMR mealsby55 percentof individualssurveyed(Larson,
1998). Theyalso foundthatthe top three reasonsforbuyingpreparedmealsare because individualsare
pressedfortime,have noenergyorfeel fatigued,andwanthome cookingquickly.All three of these
reasonscan easilybe remediedwiththe use of HMR services.

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NutraNetworkcanprovide the consumerwithaconvenientwaytoordertheirproductsthrough
the use of a website.Thismakesboththe gatheringof informationbyconsumersandproviding
completeddetailsforeverymeal bythe HMR service mucheasier.A website caneasilyprovide
informationonnutrition,pricing,approximateservingsize,ingredients,instructionsforheating,and
evena customerfeedbacksectionforeveryindividual meal.The website wouldalsohelpsupportthe
notionof varietyforthe consumerwhenbeingable tohave somany options.
Position of Expertise
Skill andknowledge of the nutritionistandchef'swithinthe HMR businessshouldbe of expert
status.Customerscanfindthisinmultiple ways,one of whichisthroughthe taste of the disheseven
aftertheyhave beenreheatedforconsumption.The mealsthatare offeredcanbe consideredexpert
dishesbecause theyare createdwithoutpreservatives,additives,orotheragentsinvolvedin
The primaryway to communicate expertiseisthroughsharingof the skillsandknowledgethat
the nutritionistandchef'shold.Thiscaneasilybe accomplishedthroughthe website bylisting
informationabouteachdish.Thisincludesinformationaboutnutrition,ingredients,heatinginstructions,
servingsize,andcomplete descriptionsforindividualdishes.A stickeroneachbox and/orpackaged
meal denotingthe above informationisanotherwaytosupportthe ideaof expertise.
Position of Service
Service issomewhattrickybecause the HMRbusinesswould primarilybe secondaryinteractions
betweenthe consumerandthe businessteambutthere are waysto show goodservice withoutface-to-
face interaction.Thiscanbe achievedprimarilythoughpromptandcorrectdeliveryof orders.Any
customerordershould be completelycorrectwithoutanymissingitemsorinclusionof anyunwanted
items.Ordersshouldbe deliveredpromptly,withinrequesteddeliverytime frames.Whensittingata
restauranta customerdoesnotexpectto waitan hourfor food,andthistranslatesintodeliverytimes.A

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customerdoesnotwant to waitan hourpast theirscheduleddelivertime.Thisshouldstandwhether
the individual ordersthroughthe website orthroughdirectcontact.
Anycustomershouldbe able tobe helpeddirectlyinthe business'locationorthroughphone
services.Whenthese interactiondooccur the customershouldbe treatedpromptlyandcourteouslyto
sustainthe feelingthatthe companycaresabout the individual.Thisisone of the mainobjectiveswhen
lookingforHMR staff.Employeesshouldhave awantto helpindividualsinanypositionwithoutfocusing
on personal gain.Thisattitude helpscustomersfeel respectedandneededbythe company.
Pricing Strategy
The pricingstrategyapproach that will be takenforthe proposedHMR businesswill be one lying
withinthe moderate oraverage pricingcategorywithfluctuationsintothe lowerandhigherpriced
categories.There are a couple standardreasonsbehindthisstrategy.First,the foodwillbe made with
freshingredientssothatconsumersmaybe purchasinga higherqualitymeal thatismade without
preservativesoradditives.These itemsnormallyliewithinthe moderate price range.Secondly,some
itemswill be offeredata lowerprice due tosmallerincome levelsof the targetedmarket(s).Thisshould
not be a discouragingfactorthoughas profitmarginsforfoodare relativelyhighwhencomparinginitial
costs to sellingprice.
A ‘good-better-best’model will be implementedinordertoprice foodproducts.Thisis usedin
mostrestaurantswhere theyofferdifferentversionsof the same meal.The good,orcheapest,items
denote onlyone itempriced.The better,ormid-priced,itemsdenotesthe same itemwiththe
availabilityof aside and/orsalad.The best,or high-priced,itemsshouldbe shownasincludingadesert
intothe meal.These optionsallow forthe consumertochoose betweenthe price of theirmeal aswell
as the size of theirmeal.Most individualswill goforthe mid-pricedoptions.Withoutofferingthe higher
endoptionthe HMR businessmaylose outonprofitsbecause consumersalwaysseekthe bestfortheir

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money.The same goesforthe lowendbutwitha twist.Withoutofferinglowerpricedoptions,the mid
rangeditemsmaynot lookas attractive.
Since the proposedHMR businessisnota sit-inrestaurantthere isnoappearance orlevel of
service toconsiderwhendeterminingapricingstrategy.Therefore,the bestwaytodecide onhowto
price meals,be itindividualorbundles,wouldbe tofirstconsiderthe amountspentoneachmeal’sfood
itemsandthendivide thattotal cost bya percentage tocoverall overheadandexpenses.Thiswill givea
total price for each meal.Inorderto use thismethoditisnecessaryto know the price of every
ingredientthatgoesintoeachindividual dishinclude the saltandpepper,condiments,andeventhe oil
usedto frythe foodin.Thisisthe mostcommonlyusedmethodtopricingfooditemswithinany
foodservice industry.Mostrestaurantsuse between25-30% forcosts otherthan directingredients.
Thistype of price markupstrategyisgood forgeneral pricingbutotherfactorsneedto be
consideredwhichmayrequire the final outcome tobe raisedorlowered.Itisnecessarytoconsider
competitorsandwhattheircomparative dishesare pricedat.Price toohighand people maynotcome,
price too lowandpeople maybelieve itispoorquality.Mostcompetitorsstaywithin0.75centsof any
competitor’sprice.Because thisservice isanHMR service andnot a restaurantservice,itcanbe said
that the pricesfor the dishesofferedmaybe ata higherdemand.The specificHMR service hasnotbeen
establishedoutside verylarge citiessuchasChicago;therefore itcanbe saidthat higherpricingfor
itemsfromthisspecificservicemaybe deemedacceptable bythe consumers.
It can alsobe saidthat mostdeliveryservicescharge adeliveryfee fortheirservices.Thisfee
may be incorporatedintothe meal pricingandnotchargedon top of the original amountforeachmeal.
The deliveryfee mayalsobe setata standarddependingonthe distance of the deliveryfromthe
kitchen’slocation.Thiscouldbe setata price per mile oras a basic amountno matterthe distance or
amountof foodpurchased.Whicheverischosenit mustbe thoughtof whendecidingonpricesforthe
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Whendecidingonpricesforitemsthere are otherbasiccosts that needtobe considered
besidesdirectfoodcostanddeliverycharges.The Foodservice Warehouse website goesoversome of
the othercosts to considerwhenpricingitems(Parpal,2012). Indirectcoststhatadd perceivedvalue or
qualityprovide asignificantbasisuponwhichtocharge higherprices.Forthe proposedHMR business
these will include the qualityof foodandthe fact that the ingredientsare boughtfromlocal businessin
orderto supportthe community.Preparationandlaborisconsideredanindirectcost.Itemsrequire
time,effort,andartistryortalentto prepare.Thisalsoincludesthe nutritionistfeesthatcome along
withhelpingprepare highqualityandhighlynourishingmeals.
Overheadexpensessuchascontainers,kitchenequipment,marketingandpromotional efforts
can create some value andshouldbe consideredwhendecidingonprices.Volatilefoodcostsmaybe
incurredif certainfoodsare not usedquicklyenough.The raw commodityfooditemsmayfluctuate
daily,weathercouldwipe outacrop.Competitionmustbe checkedoutona regularbasisinorderto
take advantage of the opportunitytosee if new entrants intothe markethasoccurred,how a
competitormayhave improvedanduse some of those ideaswithinthe business’ownsetting,orcheck
online tosee howlocal eaterieshave changedtheirmenuitems.
Parpa,2012, alsowritesaboutwaysto change the price of itemsinorderto increase
profitabilitywhile makingsure consumersare still attractedtothe business’items.Because raising
menuitemspricesisa delicate issue,there are specificqualitiesthatabusinesscanfocuson to help
consumersbelieve the higherprice isworthpaying.First,make the profitable itemsstandout.Make
sure that the most popularandprofitable itemsare placedatthe topof the menu.Most consumersdo
not wantto lookthroughmore than a few optionsandthiscan helpincrease profitsandkeepthe prices
of the mostpopularitemshigh.Bychanginga single aspectof a menuitemandofferingitasa higher
value dishitispossible toincrease the price of the ‘new’dish.Thiscanbe done byaddinga special them
or higherqualitysauce.Finally,changingpricesinsmall incrementsare lessnoticeable.Increasingthe

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price of all dishpricesby0.50 centsmay endup increasingprofitabilitymore thanif the price of the
mostpopularitemsrose by$2.00 apiece.
Pricesof food may fluctuate mainlydue toseasonalityandweather.Seasonalitywillaffect
pricingdue to availabilityof freshproductsandchangesinmenuoptions.Some ingredientsmayormay
not be available duringcertainpartsof the year.Weatheralsocomesinto playas the secondmajor
factor of price changes.Thiscan affectwhetherornotan ingredient’scropcame to fruitionorthe
amountharvesteddependingonrainfall forgrowthwithincertainpartsof the nationand/orworld.
Distribution of Products
Connecting to the Market
In orderto finditswayintothe marketNutraNetworkwill be websitebasedinordertoservice
directlytocustomers.The bestwayto go aboutcreatinga website isbyusingasitemap.Thisis
especiallyuseful whenthere isasizeable amountof informationcontainedwithin.Thishelpscreate flow
for easyaccessto information.Thiswillalsohelpinunderstandinghow acustomerwouldlookata

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website andwhere theywouldexpecttofindspecificdata.The followinggraphicshowsthe basicoutlay
of the proposedHMR's sitemaptobegincreatingthe website.
The basic homepage willhave ashortintroductiontothe companyas well asthe missionand
goalsthe companywouldlike toachieve.There will be abasiclinkoutlaytoaccess eachsection:'About
Us', 'General Menus','Bundle Specials',and'Information'.Eachcontainssubsectionsformore detail and
orderingability.
The 'About Us' sectionsinclude a'ContactUs' and 'Our Guarantee'subsections.Thesedirect
consumerstoinformationregardinghow togetincontact withthe companythroughphone,e-mail,and
possible otherwebsitesusedforadvertisementandsocial contactsuch as Facebook.The 'Our
Nutritionist'and'Our Chefs'subsectionswillincludebiographiesaboutthe individualsandtheir
backgroundsbefore workingwiththe company.Thisensurescustomershave the abilitytofeel more
connectedandpersonal withthe company.The final sectionsincludea'Receipt/Return'subsection
where customerscanobtaininformationaboutobtainingacopyof theirreceiptandfile forareturnor
reimbursementif anythingwasnotsatisfactory.
The 'General Menus' sectionincludesa'Main Course'subsection.Thisareagivesdetailsabout
each menuitemincludingnutrition,ingredients,servingsize,reheatinginstructions,andpossible
customerreviews.Thisiswhere the customercanadd individual mealstotheirshoppingbagbefore
theyfinalize anypurchases.Thereisalsoa'Meal Bundles'subsection.Thisareagivesthe same detailsas
the 'Main Course'area while providingpurchasingoptionsforpre-combinedgroupsof mealsfor
differentamountsof people aswellasoptionstopurchase differentfoodstyles.'General Menus'
sectionalsoincludeslinkstosubsectionswherepatronscanpurchase sides,deserts,soups,salads,and
breads.
The third sectionisentitled'Bundle Specials'andisdedicatedtohelpingthose inneedfind
discountsandspecial meal options.'DisabledSpecials'and'SeniorSpecials'and'DiabeticFriendly'

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subsectionswill provide thesetypesof patronswithall the informationtheywouldneedabout
discountsdue totheirimpairments,special nutritionfacts,recommendeddietrequirementsandeasyto
eat meal options.These sectionswill onlydisplaybundledmeal packagescontainingcoursesforafull
weekssupplyof provisions.'PortionControl'and'Low Sodium'subsectionswillprovideconsumers
available meal andbundleoptionsforthose dietconditions.
The final sectionlabeled'Information'will provide consumerswithexcessknowledge of the
business.'CustomerReviews'are an excellentsource forclientele tofindhow othersview the business
and overall satisfactionwiththe servicesprovided.The subsection'DeliveryInfo'will give abreakdown
of howthe deliveryscheduleiscreatedinordertohelpcustomersbetterchoose adeliverytime frame.
Optionsto'Order a Catalog'or the 'Calorie Counter'will alsobe available foruse.'DifferentDiets'
subsectionwillbe available tohelpindividualsfindhealthdietinformationversusa'JennyCraig'or
'WeightWatchers'program. Finallyan'FAQ'subsectionwill be incontinualdevelopmentasthe
companycontinuestogrowand receive questionsfromindividuals.
Delivering Products
Directdistributionof finalizedproductswill be performedwithin-housebymakinguse of a
refrigeratedand/orfreezertruck.Inearlystagesof the HMR businessthere will be one truckwitha
single driverfordailyroutes.The requiredamountof trucks,drivers,androuteswillincreasesasthe
businesscontinuestodevelop.Deliveryrouteswouldprimarilytake place inthe afternoontoevening
hours,givingthe kitchenandpackagingstaff time tocookand combine ordersthroughoutthe beginning
of the day.
Making use of an in-house deliverysystemremovesanexcesscharge tothe customerfor
shippingfees.UPS.com(2014),givesan abundance of informationonhow theyprice theirdeliveries.
UPS has a flatfee anda shippingrate dependingonthe followingfactors.Ratesare affectedbythe
locationthe package isdeliveredto:domestic,exportorimportas well asthe zone destinationororigin

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of a shipment.Differentweightsanddimensionsof apackage alsoincreasesthe price of the shipment.
There isalso the possibilityof acharge for specialtyitems,fragileitems,andsometimefooditems.
Advertising and Promotions
Advertisements
Advertisementswill be vital tothe beginningstagesof the businessinordertocultivate agroup
of purchaserslookingforthe specificniche NutraNetworkislookingtofill.Advertisinghaschanged
drasticallyinjustthe pasttwentyyears.More and more consumersare relyingonthe internettofind
whattheyare lookingfor.Searchenginesandconsumerreview sitesare becomingmore populartofind
local foodservice locationsandoptions(Briere,2013). Userson the internetare lookingformenus
before personallyvisitingororderingonline(Briere,2013).
Knowingthisinformationisthe bestwaytounderstandhow andwhere tocreate andpost
advertisements.The firstoptionswhen'Home Meal Replacement'isenteredintoGoogle donotinclude
any majorhome food-deliverysystems.WhenGooglesearching'Home Meal Replacement,Indianapolis'
the majorityof linksprovidedare toweightmanagementwebsite,healthandnutritiontechnology,meal
replacementshakes,andone personal chef advertisement.Once awebsite iscreateditisvital tomake
sure that the search enginescanpickupon the 'HMR' abbreviationaswell as'Home Meal Replacement',
'healthysubstitutes','wholefoods'aswell asthe specificnamesof the employeesfillingthe nutritionist
and chef positions.
It wouldalsobe foolishnottoinclude creationof FacebookandLinkedInpagesaswell as
postingona forumsuchas forums.foodservice.comandstartingaTwitterpage.FacebookandTwitter
are rapidlybecomingthe waypeoplesendinformationquickly.Advertisersmaypurchase space to
appearon pagesmatchingselectivelytargeteddemographicof people mostlikelytobe interestedinthe
service.Connectingtoexistingfriendandbusinessnetworkscreatesexposure forpotential word-of-
mouthand re-posingof the informationforothersoutside anexistingnetworktonotice.Forumsare a

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goodway to advertise because these canbe continuallyupdatedwithchangesthatare currently
happeningandinclude potentialfuture happenings.Thesesocial networkingcitesare usedbymost
everyone whichleadstomultitudesof people withinthe selectedareawhocan findthe business
withoutenteringthe specificwebaddress.
Since thisHMR service isbeingdirectata specificcommunity,itwouldbe wise toinclude
traditional formsof advertisementinlocal newspapers,newschannelsaswell asradioadvertisements,
directmail andlocal foodbloggers.Newspapersandnewschannelswouldincuracost,but todayover
half of the populationreceivesinformationaboutlocal proceedingsthroughtheseavenues.Local food
bloggerscanbe enticedtoshare the new businessforfree samplesora free meal.Creatingaradio
advertisementwouldbe especiallyuseful duringpeakcommutinghours.Directmailingof acatalogis
extremelybeneficialbecause itiseasytoselectpotentialcustomersbyzipcode andgeta picture in
consumer'smindsaboutwhatthe foodlookslike aswell ashow it ismade and whatit ismade with.
Promotions
Whenthinkingintermsof foodservice,the bestwaytopromote a foodproductis tohave
people trythe food.Thiscan be done simple andcheap.Make small samplesof twoor three dishesthat
will be servedonthe menu.Take these samplestoa park where youcan have people samplethe foods.
Thiscan alsobe a chance to passout businesscards,papermenus,orspecial discountsforthose who
taste test.Anotherwayto getthe taste of the foodintothe local area wouldbe tohost a social event.
Hostingeventsare economical because the businesssharesthe budgetforthe eventwiththe organizer.
The HMR businesscanalsohost theirowneventsuchas a cookingcompetition,cookingclasses,or
menusamplingevents.
Offeringpromotionsorpromotional itemsis one waytohelpsupportthe continual rotationof
available options.Restaurantsare consistentlyrotatingthe menuitemsthattheypromote throughthe
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Bison,venisonandturkeywouldbe high-quality,healthyseasonal optionstoinclude whenconsidering
promotional items.The time frame of apromotionhasvaryingdegreesof lengthranginganywhere
betweenaweektoa fewmonths.These promotionswill mostoftencoordinatedaroundseasonal foods
and specialtydishesthatwill be offeredfora'limitedtime only'or'until soldout'.Thishelpscreate
desire forthose productswithinthe customerbase.
Whena newfoodservice businessbeginsthe companyneedstoprovide enoughincentive for
people topayattentiontosomethingtheyhave nevertriedbefore.Incentivescaninclude coupons,
Implementacustomerloyaltyprogramwhere these individualsreceive periodicdiscounts,newsletters
and/ore-newslettersshowingthe involvementinthe community,andawayto ask regularsfor
feedbackonwhattheylove andenjoyaswell aswhat theymaynot be fondof.
A numberof annual celebrationsrecurwhere the proposedbusinesscanpurchase a spotfor a
standand share the foodofferedwithinthe service.Mostfamilieseatout-of-home mealsforspecial
occasions.The mostpopularinclude birthdays,Valentine'sDay,Mother'sDay,and Father'sDay but
there are others.Designingaprogramthat is unique tothese dayswould helpattractcustomerstothe
business.Thiscanbe done bycreatinga special theme tothe websiteforthatdaywhile offeringspecial
promotional prices,randomdrawingforapresent,ora raffle.

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Operations Plan
Service Location and Delivery of Product(s)
The firstlocationforthe HMR service will be withinthe FortWayne,IN area.A prime housing
spotwouldbe north of the downtownareaso as to serve the north,northwestareasof the city.The
real estate requiredshouldbe large enoughtoholda full size service kitchen,alarge drystorage area,
and include the abilitytoinstall orinclude alarge freezerandrefrigerationunits.There shouldbe a
bathroomfor employeestouse anda single roomusedasa managementoffice.The management
office shouldbe able tobe accessedfromthe frontentrance of the location.Thisentrance should
containa waitingareadecoratedto be comfortable foranycustomersthatmay come in to orderan
item(s) orpayfor purchases.
Productswill be cookedandstoredwithinthe facilityuntil transfertoa deliverytruckforhome
delivery.Customerswillreceive theirproductsviaa home deliverysystemdirectlyfromthe products
creationlocation.These deliverieswill be made once aweekperhouseholdbetweenanoptimum
deliverywindow requestedbythe customer.If thiswindowcannotbe metthe customershouldbe
contactedas soonas possible todefine asecondaryoptionfordelivery.
Qualified LaborPool
Each positionshouldbe able tobe filledeasily.Employeeswouldbe recruitedthroughmultiple
means.Advertisementsforspecificjobtitleswillbe postedonLinkedIn,Indeed,andCareerBuilder
websites.The positionswillalsobe advertisedthroughthe radioandnewspapers.Specializedindividuals
may be recruitedthroughcolleges,preferablybyrecentgraduateswithafocusinthe culinaryarts,
nutrition,andbusinessfinance.Employeesmayalsobe contactedthroughan employmentagencyor
possiblythroughahiredrecruiter.

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General employeesincludethe twopackagerpositions.One positionwouldbe completelyfull-
time to fulfill the needforcontinuouspackagingof orders.A secondarypackagerwouldbe neededasa
part-time employeetobe broughtinduringtimesof highorderquantity.A deliverypersonwouldbe
neededtotransportordersto consumer’shomes.Thisindividualwouldbe requirestoholdthe
necessarylicensure todrive arefrigeratedtruck.Below isatable showingeachpositionneeded,their
average salariesforIndiana,andhowmanyhourseach wouldbe averagedtoworkper dayand per
week.
QualityControl
The biggeststruggle forthe qualitywithinthe HMRfoodservice industrywouldbe foodsafetyin
regardsto cooking,storage withinthe locationwhile mealsare beingpreparedand while the foodis
waitingtobe used,and freezing.The FDA providesfree accesstoa plethoraof documentsregarding
regulations,codes,andcode interpretationforamultitude of topicsconcerningthisissue.Between
1993 and 2001 the FoodCode was updatedandissuedeverytwoyears.Thispolicywasjustrecently
changed(in2005) to everyfouryearsby the FDA inconjunctionwiththe CFP(Conference forFood
Protection).The FDA maypublishsupplementsthatupdates,modifies,orclarifiedcertainprovisions
anytime betweenthe fouryearissuance.The 2013 Food Code isthe most recentfull editionpublished
Employee Title Average Salary Average Hour/Day Average Hours/Week
Account Manager 58,000 7 35
Financial Manager 46,000 7 35
Head Chef 53,000 8 40
Sous Chef 44,000 8 40
Nutritionist 48,000 8 40
Delivery Personnel 38,000 8 40
Packager 1 26,000 8 40
Packager 2 26,000 3 15
Totals 339,000 57 285

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by the FDA (See AppendixEfora linktothe complete guide). A few of the pertinentissuesspecificto
the proposedbusinessare discussedbelow.
The documentspecifiesrequirementsforthe cooking,cooling,andfreezingforstorage of food
products.Raw animal foodsincludingeggs,fish,meat,poultryandanyfoodscontainingtheseraw
animal productsshall be cookedtoheatall partsof the foodto the specifiedtemperatureslistedinthe
table (FDA FoodCode,2013 page 113). Plantfood(s),fruitsandvegetables,thatare beingcookedfor
holdingshouldbe broughttoa temperature of 135 degreesFahrenheit(FDA FoodCode,2013, page
116).
Cookedfoodsshall be cooledbefore storage withintwohoursto70 degreesFahrenheitand
withinsix hoursto41 degreesFahrenheitorless(FDA FoodCode,2013, page 122). While beingcooled
the foodshouldbe arrangedinthe equipmenttoprovide maximum heattransferthroughthe container
wall andlooselycoveredtofacilitateheattransferfromthe surface of the food(FDA FoodCode,2013,
page 123).
Freezingof foodproductsbefore service orsale inready-to-eatformshouldbe frozenator
below -31 degreesFahrenheituntil solidforaminimumof fifteenhours(FDA FoodCode,2013, pages
117-118). Recordsshall be createdtoretaininformationregardingthe freezingtemperature andtime to
whichthe foodwas subjectedtofreezing.These recordsshallbe retainedfor90 calendarday beyond
the time of sale of the food(FDA FoodCode,2013, page 118).
Labelingof foodisextremelyimportantinthe foodservice industry.Pages102-103 of the FDA
FoodCode discussesthe appropriate informationtoimpose on packagedfoodlabels.The followingis
requiredtobe displayedonanypackaginglabel:commonname of the food,listof ingredientsandsub-
ingredients,declarationof the netquantityof contents,name andplace of manufacturer,potential

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allergenscontainedwithinthe food,nutritionfacts,andthe date the foodwascookedand frozen(if
necessary) forpackaging.
FDA FoodCode goesonto describe the requirementsregardingthe use of utensils,equipment
and linenswithinthe foodservice industry.Multiuse utensilsshall be safe,durable,corrosion-resistant,
and nonabsorbent.The finishmustbe smoothwithaneasilycleanable surface while alsobeingresistant
to pitting,chippingcrazing,scratching,scoring,distortion,anddecomposition(FDA FoodCode,2013,
pages141-142). Equipmentisdiscussedindetail inthe followingsectionof the FDA FoodCode
Document.Andfood-contactsurfacesmustbe smoothandfree of breaks,openseams,cracks,chips,
inclusions,pits,andotherimperfectionstoavoidsharpangles,corners,andcrevices(FDA FoodCode,
2013, page 113). Anycookingequipmentsuchasstovesandovensshouldhave aself-drainingsystem
capable of beingcompletelydrainedandable tobe sanitizeddaily(FDA FoodCode,2013,page 114).
Hood systemsandfilteroranyothergrease extracting/containmentequipmentshallbe designedtobe
readilyremovable forcleaningandreplacementaswell asinclude componentssuchashoods,fans,
guards,and ductingto preventgrease orcondensationfromdrainingordrippingontofood(FDA Food
Code,2013, page 116).
The FDA’sFood Code documentscoversacolossal amountof informationandthere isnowayto
coverall the topicsinthissection.Again,alinkhasbeenprovidedinAppendix,Etofindthe entire 765
page documentandthe informationcontainedwithin.Inordertomake sure thatthe issuesregarding
qualityare upheldthere are fourwaysto helpbe sure thatthe qualityof the foodismaintained.First,
standardizationof foodandtheirrecipesfor all menuitemstokeepcookingandstorage consistent.This
can be achievedthroughensuringthe HeadChef isproperlytrainedtokeepcontrol of temperatures
duringprep,cooking,andstorage as well asmaintainingcleanlinesstopreventanyfood-bornhealth
issues.Secondly,anyoneunderthe HeadChef shouldbe subjectedtocomprehensive trainingwithinthe
kitchenforcookingas well ascross-trainingforfoodprepandstorage.Third,clearqualityguidelines

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shouldbe communicatedtosuppliersandchefs inordertomaintainthe qualityof the foodused.All of
these suggestionscanbe maintainedbythe fourthoptionforqualitythroughmaintainingchecklists.
These wouldbe done ona weeklybasistoreview food,equipment,utensils,linens,cleanliness, andany
otherprocessusedwithinthe kitchenanddifferentstorage areaswithinthe location.
CustomerServiceand Support
Customersare the reasonthat businessare createdandtherefore shouldbe treated
witha highlevel of respectandunderstanding whetherdealingwithahappycustomeroran upset
customer.Inorderto maintaina goodorganizational structure of customerservice itisimportantto
trainindividualstorespondtocustomers,passalonginformationproperly,andsendcustomerstothe
correct individual tohelpthemwithanyissuestheymayhave.Because thisbusinessisaverysmall
business,the customerservice will be splitbetweenonlyafew individuals:the AccountManager,
CEO/General Manager,Nutritionist,andsomewhatwiththe DeliveryPersonnel.
Directcustomersupportwill come fromthe AccountManager and the CEO/General Manager.If
a customercomesintothe locationor phonesthe businessthe AccountManagerandCEO/General
Manager will be the directcontactsthat deal withthose individuals.If acustomerentersthe locationto
place an order,ask questionsaboutthe foodandprocessof cooking,orhas any complaintregarding
quality,delivery,ortheirorderthe AccountManager and CEO/General Managerwill deal withthese
individualsaswell.Theywill alsodeal withthe collectionof paymentandcreationof paymentplansfor
customers.
The secondpointof contact fora customerwill gothroughthe DeliveryPersonnel.This
individualwillinteractwiththe customersdirectly attheirhomes.Thisisanevenmore personal type of
contact witha customer,meaningthe DeliveryPersonnel mustbe able tobe kindandcourteouswhile
makingdeliveries.Because the businesswill deal withdisabledandelderlyindividualsthe Delivery

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Personnel mustbe willingtoenterhomesinordertoput awaythe ordersif customersneedsuch
assistance.
The third pointof contact withcustomersiswiththe Nutritionist.The Nutritionistmaybe in
contact withindividual customerstohelpthemplantheirmealsaccordingtospecificdietneeds.The.
The Nutritionistmustbe available tohelpindividual consumerswiththeiroverallhealthandwellbeing
by workingwithcustomerstohelpthemcreate adietor meal planand maintaintheirchosenplans.
There are a numberof skillsthatmusteitherbe trainedorinherentwithinthe employeesin
orderto maintaingoodcustomerservice.The firstisclearcommunication.Thisisessential tocustomer
service because employeesmustbe able toknow whatthe customerwantsand be able toarticulate
whatcan be done forthe customer’srequest.Communicatingpositivelythroughupbeat,enunciation,
and speakingpositivelywithcustomersare essentialforphone andface-to-face contact.If a customere-
mailsor writes propergrammarand spellingare importanttoconveyanupbeatattitude.
Secondly,self-control isextremelyimportant,especiallywhendealingwithangrycustomers.
Employeeswill needtobe able tocalmlyhandle all typesof customers.Employeesmuststrive toremain
calm,collected,cool-headedandpatient,evenwhenthe customerisnot.Inconjunctionwiththisisa
thirdability:positivity.Attitude goesalongwayincustomerservice.Whenacustomerhas an issue the
bestwayto handle themisto be proactive andoptimistictofocuson whatto do to helpthembyfinding
a solutiontotheirproblemandpossiblyhelpthe customerstaypositive aswell.
The fourthand fifthskillsare empathyanddepersonalization.Theseworktogetherinorderto
helpcustomersinorderto understandwhatacustomersays andfeelswhilebeingable toknow that
customersare not there to share life stories.Whenacustomerexplainsanissue itisimportanttobe
able to understandtheiremotional state andrespondwithout beingpersonallyinfluenced.Responsesof

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understandingthe issueissufficienttothinkaboutthe customer’spositionandfigure outhow toassist
the customerwithsolvingtheirissue.
All of the above skillsgointoacceptingresponsibilityforanyissue oractionsthat may have
happenedinaninteractionbetweenthe customerandan employee orthe customerandtheirproduct
or service.Beingable toacceptresponsibilityshowscustomerappreciationbyfindingwaystocorrect
any potential issue(s).Actionsspeaklouderthanwordsandanyacceptance of responsibilityand
correctionstoan issue showsgratitude forthe customerandtheirbusiness.Beingable tobe sincere in
an apologyonbehalf of the company,evenif itwasn’tspecificallythe company’sfault,isalarge part of
workingina customerservice industry.
PotentialRegulatory Issuesand/orChallenges
There are a fewregulatoryissuesthatfollow startingafoodservice business.The firstisthe
businessstructure.Choosingbetweenasole proprietorship,apartnership,alimitedliabilitycompany,
or any otherbusinessstructure.Thisaffectselementssuchasliability,financial responsibilityincluding
taxesanddebt,legal entity,size,budgets,andamountof personal liabilitythe proprietoriswillingto
assume.These all affectthe type of structure tochoose.A businesslawyershouldbe consultedtohelp
decide whichtochoose.The optimumforthe proposedbusinesswouldbe apartnership.The individual
startingthe companywouldnothave enoughassetstoinvestsolelyalone,thereforeapartnership
wouldbe neededforfunding.A restaurantinvolvesalotof capital and splittingstartupcostsisthe
biggestbenefittothistype of structure.Thisalsomeansthat individualswill eachbringintheirown
skillsandexperiencestoenhance the business. (Rahm, 2013)
A secondaryissue thatmaychallenge the startupof the propose businesswouldbe zoning.
Zoningregulationsdictate the type of buildingyouare able tohave in a particularlocation.These
restrictionsalsodeterminethe size andheightof the buildingandthe size of the lot(if usinga

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standalone building).Insome placessignsare restrictedfortheirsize (Frost,2014).Indianapolis/Marion
CountyCityCodesare available online throughtheirwebsite.Restaurantsare consideredacommercial
zone and mustfollowregulationssetinplace underChapter732,Article II,SectionC-3Cof the
Commercial ZoningOrdinance of IndianapolisCode.Thisdiscussesthe legal parameters forthe usesof
the developedlocation.A topicsdiscussedincludetrashcontainersandstorage,outdoordisplaysof
products,drive-throughability,requiredminimumstreetfrontage,minimumfrontyardsandfront
setbacks,minimumrearyardsandrear setbacks,requiredtransitionalyardsandminimumsetbacks,use
of yardsand transitionyards,maximumheightof buildingsandstructures,signage,off-streetparking
and loading,andparking.A linkisprovidedinAppendix,F.
Foodsafetywasdiscussedabove,butthisisanotherconcernforregulationsandchallenges
facingthe proposedfoodservice business.Healthcodesvarydependingonlocationbutall codesrequire
safe handling,storage,andpreparationof food.Permitsare requiredtobe obtainedfrom the local
environmental healthdepartmenttocertifythatthe foodservice businesshasbetcounty,state,and
federal requirements.Itwouldbe wisetoapplyforan inspectionamonthor sobefore openinginorder
to ensure businesscanbeginontime.Healthcodesshouldbe keptonfile andemployeesmustmaintain
goodhygiene inordertosuccessfullybe considered‘passing’aninspection.
Insurance isanotherfactor to be consideredthatmaybe a challenge instartingthe proposed
business.The foodservice industryisprone toinjury,medical expense(s),andlawsuits.Insurancesthat
shouldbe consideredare propertyinsurance,general liabilityinsurance,andworkerscompensation
insurance.These typesof insurancescanprotectagainstliabilityforfallsfromcustomersand/or
employees,potential forcustomerstogetsickfromimproperpreparation,andisinvaluable for
protectionof assetsincase of a fire,flood,orotherpropertydamage. (Frost,2013)

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The final factor thatshouldbe consideredforapotential hiccupinplanningforthe new startup
isthe rental of the locationor purchase of the property.Anoperatingagreementwill needtobe
establishedbetweenthe companyanda leaserorthe state for rentor purchase of property.These will
coverissuessuchas services,liability,taxes,responsibilityforproperty,equipmentsafety,signage,and
otherimportantissues.Anexample of arental agreementcanbe foundinAppendixA.

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Development Plan
Steps to Complete Time to Complete Description of Step
ObtainFinancial Backing 2-4 weeks;withinQ1year1 Speakwithinvestors,venture
capitalists,banks,etc.toobtain
capital
Findkitchenlocation 2 weeks;withinQ1year1 Thismay be a sololocationthat
ispurchasedand renovatedora
rentedlocationthatcomes
preparedforkitcheninstallation
Secure lease orpurchase
property
2 weeks;withinQ1-Q2year1
Establishinsurance 2-4 weeks;withinQ1year1 Establishinsurance policies
Establishbanking/account
system(s)
1-4 weeks;withinQ3-Q4year1 Findand set-upabanking
systemwitha commercial bank
and findcreditcard merchant
systemforprocessingof
payments
Designandrenovationof
location
4-6 weeks;withinQ2– Q3 year
1
May needsome cushionof 1-2
weeks
Make use of designspecialist,
expertcatererand/orkitchen
architectfor placementof
cooking,dishwashing,cleaning
productstorage,dry-food
storage,walk-in’splacement,
etc.
Equipmentpurchase 4 weeks;withinQ2-Q3year1 Purchase of new and/orused
equipmentforcooking,utensils,
linens,etc.
Employees 4- 8 weeks;withinQ3-Q4year1 Scout forpotential talent
Equipmentinstallation 1 week;withinQ3year1 Work withdesignerandhead
chef to install equipmentin
prime locationsforefficiency
Evaluate distributionchannels 3-4 weeks;withinQ3year1 Locate distributorsandevaluate
deliverytimes,pricesforkey
products,creditterms,ordering
options,supportoffered
Website creation 2-3 week;withinQ3year1 Creationof companywebsite
includingmenu items,pricing,
and online purchasingability
Marketing BeginQ3 year 1 withongoing
pushup to and postopening
Work withlocal radio,
newspaper,newschannels,
foodbloggersaswell ascreate
Facebookandsocial media
accounts
Obtainotherfinancials Q3 start thenongoing Beginsearchingforpotential
partnershipswithlocal farms,
meatmarketsetc. to obtain
freshlocal foods

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