Just Crepes - A Sustainable Business Plan


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This is the presentation outlining the business plan I wrote as part of my graduate work in sustainable business practices.

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  • Crepes= cross between tortilla & pancake, French origin, although many other cultures have something similar. Studied twice in France and fell in love with these. How many of you have had crepes?
  • Crepes can be sweet or salty and served for breakfast, lunch, dinner, snack or dessert with a wide range of toppings. They are best fresh and very quick to make so they will be:
  • Now I’m going to talk about the really exciting stuff. I didn’t print off a copy of my spreadsheets for each of you because that’s pretty unsustainable, but I will give you a brief summary of my financial analysis.
  • I projected sales to begin in January of 2010 and did my financial analysis through 2014
  • Just Crepes - A Sustainable Business Plan

    1. 1. Just CrÊpes<br />Crêperie & Café<br />Anna Guyton<br />May 2009<br />
    2. 2. Business Description<br />Just Crêpes will be a local crêperie and café based in Laramie, Wyoming focusing on sustainable business practices. <br />
    3. 3. Products/Services<br />Made-to-order crêpes made with Fair Trade, organic and locally-sourced ingredients<br />Healthy, affordable, and versatile<br />Fair Trade coffees and teas<br />Casual dining/studying atmosphere<br />Wireless internet available<br />Resources for learning about sustainable business practices<br />
    4. 4. Benefits to the Customer<br />Fast<br />less than five minutes per customer. <br />Convenient<br />near the University of Wyoming campus<br />Healthy<br />lower-fat, lower-calorie, and lower-cholesterol alternative to tortillas <br />all toppings locally-sourced and/or organic<br />Unique<br />Crêpes resemble a cross between a pancake and a tortilla<br />Learn about sustainable business practices and see them in action<br />Nearest crêperie to Laramie is in Fort Collins, CO<br />Inexpensive<br />Cost of producing crêpes is very low, both for sourcing ingredients and for energy inputs necessary for production <br />competitive with other fast food options <br />Coffee and tea prices will be comparable to other local cafés. <br />Sustainable<br />Survey: potential consumers highly value sustainable business practices<br />
    5. 5. Incorporating Sustainability<br />Sourcing local, Fair Trade, organic<br />Minimize energy consumption<br />Source energy from renewable resources<br />Energy-efficient appliances<br />Minimize waste<br />Reusable dishes<br />Recyclable/compostable/biodegradable to-go packaging<br />Recycling/compost in café<br />Food donations<br />
    6. 6. Market<br />Fast-casual café style restaurant <br />According to www.fastcasual.com this style of restaurant has double-digit growth rates while the rest of the food industry is in decline<br />No Laramie competition that offers crepes to go<br />Creperies are very popular in Europe (esp. France) but have yet to boom in America<br />Healthy option in food served fast<br />
    7. 7. Competition<br />Fast food: Taco Johns, Taco Bell, Wendy’s, McDonald’s, Arby’s, Burger King, Subway, and Quizno’s<br />Local cafes and restaurants: Sweet Melissa’s, Home Bakery, Teriyaki Bowl, The Grounds, Turtle Rock, Coal Creek Coffee, Elements, and Rolling Mills Café<br />
    8. 8. Competitive Advantage<br />Sustainable business practices<br />Fair Trade, energy efficiency, waste reduction, recycling, composting, local sourcing, supporting social and environmental causes<br />Crêpes<br />Unique, delicious, inexpensive, healthy<br />Location<br />Close to campus<br />Hours of operation<br />Late night<br />
    9. 9. Concept Test & Customer Reaction<br />91 Laramie residents <br />44% dissatisfied with restaurant options near the UW campus <br />40% dissatisfied with café options near the UW campus. <br />Over 60% feel current options near campus are somewhat unhealthy or very unhealthy <br />Almost 75% feel they are also fairly expensive or very expensive <br />Over 75% spend $5.00 or more on lunch on average<br />High level of concern for furthering social causes (60%) and minimizing environmental impact (80%) through their purchases<br />Most feel that current restaurant options in Laramie are unsustainable (75%) as well as café options (61%) <br />When asked if they would patronize a new café focused on sustainability at comparable price points, 88% said yes. <br />Of those that had eaten crêpes before (85%), 94% of respondents liked them fairly well or very much. <br />
    10. 10. Target Market & Advertising<br />Students and professors<br />Primarily from UW (location)<br />Consumers looking for “green” and socially-responsible places to do business with<br />Avoid fliers and postal mailers (unsustainable) <br />Focus on electronic marketing <br />Opinion polls, surveys<br />Local news outlets<br />Newspaper, radio<br />On-street signage<br />Samples<br />
    11. 11. Organization<br />Sole proprietorship, <br />low cost of setting up and maintaining the business <br />lack of a suitable partner at present <br />Entrepreneur will assume all management roles <br />Spent several months in France eating at crêperies and learning recipes <br />Undergraduate work in International Business<br />Graduate work in Sustainable Business Practices<br />
    12. 12. Financial Analysis<br />
    13. 13. Pricing<br />Penetration pricing strategy <br />preempt competition and gain market <br />Crêpes competitive with other fast food alternatives ($1.00-$2.00) <br />Coffee and tea prices are also comparable to local café prices ($1.50-$4.50) <br />Most survey respondents pay more than $5.00 for lunch (76%), so it is expected that customers will be willing to pay $1.00-$2.00 per crêpe for a meal<br />
    14. 14. Internal Operating Schedule<br />Estimated the number of units (crêpes) the crêperie would produce<br />Competitors’ data<br />Production and sales (in units) estimated to be the same (made-to-order)<br />Cost of producing crêpes ~$0.34<br />Cost of one cup liquid coffee ~$0.13<br />Cost of one cup liquid tea ~$0.11<br />Labor: $8/hr x 2 employees x 8 hrs/day x 20 days/mo<br />increases<br />
    15. 15. Income Statement<br />$1.50 avg sale price multiplied by estimated unit sales<br />Estimated marketing expenses ($1500) and administrative expenses ($1200)<br />Both rise with opening of new venue (2012)<br />Rent estimated at $800/month<br />Doubles with opening of new venue<br />Depreciation low ($120), small amount of equipment<br />Doubles with opening of new venue<br />Interest from family loan ($10,000) @ 5%<br />Small net profit every year from 2010-2014<br />Profit doubles from 2010-2014<br />
    16. 16. Balance Sheet<br />Cash: $5000 personal assets, $10,000 family loan, net profit<br />No sales made on credit = no receivables<br />Inventories = COGS – labor (made-to-order)<br />Equipment estimated at $6000<br />Building’s rented, no other long-term capital<br />Payables calculated as 50% of inventories<br />No accrued wages<br />No expected bank loan<br />Credit cards, short-term loans estimated at $6000<br />
    17. 17. Statement of Cash Flows<br />Net cash flows from operations negative until April of first year, then gradually rise until new venue opens<br />By 2014, cash flows are back up to $5030.25<br />CF from investment = $6000 until opening of new venue<br />CF from financing = credit cards/short-term loans<br />
    18. 18. Cash Budget<br />All figures taken from previous worksheets<br />The crêperie is building cash during every time period besides the first year<br />
    19. 19. Financial Ratios<br />Current ratio is greater than one, indicating that if all current assets could be converted into cash, they would be adequate to pay all current liabilities. <br />Quick ratio is greater than one, indicating that the venture’s liquid assets are adequate to pay off its current liabilities.<br />A gross profit margin of 36% indicates that 64% of sales is spent to cover the costs of production. <br />Crêperie will earn about 11% operating profit margin on its sales after covering production and other operating costs. As long as the venture can also cover interest and taxes, it will experience a net profit.<br />
    20. 20. Survival Breakeven Analysis<br />In 2010, the crêperie will need at least $34,934.45 to cover both its variable costs of producing crêpes and its cash fixed costs <br />At a $1.00 selling price per crêpe, the crêperie will need to produce and sell 34,935 crêpes to produce a zero EBDAT <br />The projected unit sales for 2010 are 49,500<br />
    21. 21. Sensitivity Analysis<br />Best case scenario: <br />Third venue within first 5 years<br />Reinvest in products/services<br />Pay back debts quicker<br />Worst case scenario: <br />Inventories reflect sales, so COGS will decrease as sales decrease<br />Second venue will not open<br />Expand operating hours, products, and/or services<br />Fairly easy liquidation<br />Inventory & equipment minimal<br />
    22. 22. Exit Strategy<br />Continued growth into profitable franchise<br />Incorporation<br />Sold as a small, local venue<br />