Mocha Directional Concept


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Mocha Directional Concept

  1. 1. MoKa Kafe Directional Concept Sherif Afifi Prepared by Sherif Afifi
  2. 2. MoKa Kafe Company Profile Sherif Afifi
  3. 3. Menu Reengineering & planning Menu Planning & Design Menu Using The Menu for Decision Analysis & making Profitability Using the Menu For Budgets & Ratio Analysis
  4. 4. Menu Analysis & profitabilityThe only real way to maximize profit from a menu is to:• ANALYSE the SALES performance of each menu item over a period of time.
  5. 5. Menu Analysis & profitabilityHow should menus be evaluated• To determine whether the “right” menu items are being sold?
  6. 6. Menu Analysis & profitability By answering the two BIG Questions Is it Is it POPULAR PROFITABLE for my for myCustomer ? business?
  7. 7. Menu Analysis & profitabilityPopular BUT Popular NOT & profitable 4 ways to Profitable classify Menu Items NOT NOTPopular &NOT Popular BUT Profitable Profitable
  8. 8. Menu Analysis & profitability HighPopularity Low Low Profitability High
  9. 9. Hot Drinks 16.00 Chart Hot drinks 14.00 12.00 10.00Contribution 8.00 6.00 4.00 2.00 0.00 -2.00% 0.00% 2.00% 4.00% Menu Mix8.00% 6.00% % 10.00% 12.00% 14.00% 16.00%
  10. 10. Pricing Objectives1. Target sales volume2. Avoid price competition.3. Influence competitive pricing4. Profit maximization5. Maximize return on investment6. Achieve optimum cost, sales volume, price and profit.7. Assure short term survival8. Achieve target growth rates for profit objectives
  11. 11. Pricing Strategy• MoKa pricing will be comparable to the competition, but with the value-added feature of immediate thru service and convenience.• Our food and drinks options are priced to give us an attractive margin while at the same time offering value to the consumer.• We want repeat business.• We also want the experience to remain fresh
  12. 12. Our Pricing Tactics• Maybe what will make big money for you is a small change in what youre offering. One of the tactics shows you how to break down what youre selling into pieces of value -- then how to build it back up into a product worth much more than previously.• Maybe it will be a pricing tactic that shows you how to reposition your product in your customers minds. If you change their perception of your value to them - theyll be happy to pay more• Our brains are set up to notice some things in our environment and not others -- even when theyre right in front of us.• For example, youve probably already noticed that many merchants price at 9.99 instead of 10. Those who have tested the two prices have found that they can increase orders 5- 15% by dropping that penny.• We are less In prices than Starbucks by -17% and we are more than Dr.Cafe by 17%
  13. 13. Price Elasticity• Price Elasticity of Demand is a measure of how responsive demand is to a change in price. If a price change leads to a considerably bigger change in quantity demanded, we would consider the good to be responsive to a price change: hence elastic. If, however, a similar price change leads to a much smaller change in demand, we would consider it inelastic.• To get a more precise measure than this of the responsiveness to a price change we can calculate a value for price elasticity of demand. We use the formula:PRICE ELASTICITY OF DEMAND = percentage change in demand percentage change in price
  14. 14. Price Elasticity of demand Price The strength of the brand will affect the elasticity Demand Quantity
  15. 15. MoKa Kafe Menu Board Items
  16. 16. MoKa Kafe Cold Drinks Reg Med Large1 Ice MoKa 11.99 13.992 Moka Smoothies 11.99 13.99 3 Ice Latte 11.99 13.9910 MoKa Klassic 11.99 13.9911 Ice Kappucino 11.99 13.99 9 Ice White ChoKolate 11.99 13.9910 Toffee Koffee 11.99 13.9911 Ice White ChoKolate 11.99 13.9912 Ice Kappucino 11.99 13.9913 Almond MoKa 11.99 13.9914 Irish MoKa 11.99 13.9915 Persian 11.99 13.9916 BlacK Forest 13.99 15.9917 RocKy Road 13.99 15.99 Bottled Drinks 1 Beer 3.99 2 Bison 3.99 3 Bison Diet 3.99 4 Cade Blue 3.99 5 Cade Pink 3.996 Cade Green 3.99 7 Cade Red Grape 3.998 Cade Cranberry 3.99 9 Cade Apple 3.9910 Mineral Water 1.99
  17. 17. MoKa Kafe Pastries 1 Original Glazed 5.99 2 Strawberry Glazed 5.99 3 ChoKlate Glazed 5.99 4 Cinnamon Apple Filled 5.99 5 Karmel Kreme Krunch 5.99 6 MoKa Muffin 5.99 7 Blueberry Muffin 5.99 8 ChoKolate Muffin 5.99 9 Cheese Kroissant 5.9910 Butter Kroissant 5.9911 ChoKolate Kroissant 5.9913 Date Pinwheels 1.9914 Cheese Cake Ring 5.9915 CooKies 1.99
  18. 18. Bagels Sandwiches
  19. 19. Bagels Sandwiches
  20. 20. MoKa Kafe Food Items Bagels Sandwiches1 Colorful Shrimp Spread Bagel 9.992 Artichoke Cream Cheese Spread 7.993 Olive Paste Bagel 7.993 Vegetable & Cheese Bagel Sandwich 7.995 Blue Cheese Pecan Spread 7.996 Mini Bagel Sandwich 5.99 Sandwiches 1 Four Seasons Sandwich 15.99 2 Smoked MacKerel Sandwich 15.99 3 Smoked Salmon Sandwich 17.99 4 Roast Beef With Blue Cheese 13.99 5 Roast Beef 13.99 6 Caesar ChicKen 13.99 7 Panini Sandwich Cheese 11.99 8 Panini Sandwich Tuna 11.99 9 Panini Sandwich TurKey 11.9910 Falafel Rolls 7.9911 Tuna Sandwich 9.9912 ChoKolate & Halawh Sandwich 11.99 Salads1 Potato Salad 9.992 Italian Salad 9.993 Greek Salad 9.994 Beans Salad 9.995 Vine Leaves 9.99 Pizza1 Pizza Pepperoni 19.992 Pizza Mushroom 19.99
  21. 21. Hot Drinks Menu Board Images
  22. 22. Cold Drinks Menu Board Images
  23. 23. Desserts Menu Board Images
  24. 24. Food Items Menu Board Images
  25. 25. Menu Flyer
  26. 26. Menu Flyer
  27. 27. Our StrategyMoKas strategy is to show people that it has an excellent product andconvenient accessibility.To execute on this strategy, Mocha is placing the Drive-Thrus andMobile Cafes at easily accessible locations throughout the country.MoKa is pricing its product competitively and training the production staff tobe among the best Baristas in the country.Then, through coupons and display ads at the locations, In so doing, Mocha has:1. Provided a customer with a quality product at a competitive price.2. Provided the customer with a more convenient method for obtaining their desired product.3. Provided the customer direct -mailing programs and community involvement programs
  28. 28. Site Selection Strategy Price Visibility TrafficLease/terms AccessibilityDuration of Size/expansion Lease options Image of the Potential neighborhood evolution of the neighborhood Safety and security
  29. 29. Site Selection Strategy •• Company Locations and FacilitiesMoKa Kafé International will open ten-eleven facilities on Riyadh over the first year. Twenty five or morefacilities will be placed throughout KSA over the next three years.The demographic and physical requirements for a location are:1. Traffic of 40,000+ on store side.2. Traffic of 20,000 + for the malls.3. Location Evaluation Form To exceed 75%4. Visible from roadway {Drive –Thru, In-Line}.5. Easy access with light if less than 30,000 {Drive –Thru, In-Line}.6. Suitable capacity for customers {In-Line }7. Established retail shops in area.8. To meet the Break-Even point in the second year of operations9. By the third year of operations to achieve 15% net profit.
  30. 30. Feasibility Study For LocationsBecause a feasibility study serves as the foundation for the Business Plan, we cannot develop a Business Plan for a project unless we have conducted a feasibility study. . Our work includes the following: Site Analysis, Data Collection and Research gather data necessary in developing key operating assumptions, and review the potential site(s). We review local competition in the market area, identify characteristics and sources of customers, and look to establish a basis for expected demand through identification of potential traffic generators. Our analysis includes area demographics, area business and industry, area colleges, construction activity (residential and non-residential) and traffic counts and patterns. Along with a study of the potential demand for the facility, an analysis of the competition is also undertaken. Our competitive analysis includes a profile of area cafes and their offerings and an assessment of market opportunities discovered in the competitive research along with the strengths and weaknesses of each. Development of Assumptions and Revenue Projections The information developed above is used to estimate the proper size of the facility and the cost of its development. We then prepare operating projections for the facility; revenue estimates are based on seasons, periods, anticipated customer counts and anticipated check averages. We consider all revenue centers established in the work described above. Sales are estimated for three scenarios; worst-case, best, and most-likely. In addition, we project the facilities staffing requirements along with the projects labor cost. We will prepare pro forma income and expense statements for the first year of operation. We then proceed to refine the preliminary estimates in order to determine an appropriate budget for construction . Profit and Loss Statements and Break-Even Analysis During this phase, we develop a potential break-even sales level for the facility and conduct sensitivity analysis of key cost variables in order to determine changes in profits resulting from future escalation or reduction in operating costs. We also provide a detailed Profit and Loss Statement for the first 3 years of operation using the "Most Likely" scenario developed above. We also establish an appropriate level of Capital Expense based upon the scope of work required and potential return on investment. Feasibility Studies
  31. 31. The Break –Even Analysis For The Business Break -Even Analysis 3,000,000 2,500,000 2,000,000 1,500,000 Break even point 1,000,000Balance 500,000 0 500,000- 1 2 3 1,000,000- 1,500,000- 2,000,000- Years
  32. 32. Site Selection Process
  33. 33. Mocha Org. Structure After 3 Years Chairman M.D. General Manager Operations Finance Marketing Purchasing Manager & Training Manager Manager Manager Corporate Chief Equipment Care Warehouse/Site Area Manager Events Sales Accountant & IT Specialist Exec Manager Cost Controller Outlet Managers Process Structure
  34. 34. Thank You