CAFÉ EDÉNSocial Entrepreneurship - Group A: The Community Restaurant

Andrea Verdu RobalinoFrancesco Brachetti

Lorenzo HolderMichele Secondo

Santiago Casas Velez

1. Design Thinking Process

a. Problem Definition

b. Insights, Concept, Prototyping

2. Café Edén

a. Mission & Vision

b. Food Cycle

c. Employment

d. Business Plan

e. Sustainability

f. Pricing and Promotion

3. Impact, Outreach & Sustainability

4. Scalability & Theory of Change

Table of Contents

1. DESIGN THINKING PROCESS

• Focus on stopping ‘food waste’ by using food surpluses of our suppliers within the restaurant

• 1.3 billion tons of food wasted globally per year• Eliminate the concept and practice of food

waste• Food is 100% valuable resource• View food surplus as a resource,

not a waste product• Address the triple bottom line

Problem Definition

Food Waste

Food Surplus

‘Waste’: “anything […] rejected as useless, worthless, or in excess of what is required “

‘Surplus’: “a quantity or amount in excess of what

is required”

Insights Concept Prototyping

Immersion in social issue• General information gathering

• Individual idea generation • Collection of pictures and photos, arranged in idea board

• Research on social restaurants, food kitchens, and social enterprises dealing with food

• Restaurant industry and competitor analysis

• Post-it War: brainstorming session with high level of energy and dynamism

• Attempt to release creativity, no matter if deemed unfeasible

Modeling of restaurant on small scale• Visualization of restaurant• Allows feedback from target groups

• Investigating food waste and the waste disposal processes

• Idea discussion and elaboration/clarification

• No judgment allowed

• Identification of restaurant that approximates the space and ambiance of the social restaurant

• Unemployment statistics and demographics

• Arranging Post-its into clusters • Setting up of Facebook page to form introduce restaurant to target market

• Research on consumption habits of consumers in Barcelona

Idea pool•Social Restaurant•Community Garden

• Intention to create website to form identity of restaurant and function as a communication channel

• Formulation of opinion and refining of individual point of view

• Final Selection:• Social Enterprise Restaurant

Design Thinking Process - Overview

Concept - Post-it War

Prototype Testing

• Survey among young people and students to

verify demand and preferred characteristics of

social restaurant

• Survey among students to investigate ideal

characteristics of social restaurant

• Presentation of prototype to:

• Technical Coordination Manager of the

Red Cross (Creu Roja)

• CEO of Veritas

• Italian Chef at Restaurant Bislakko

• Identification of “proxy” restaurant: Café

Federal

• Invited student panel to “try out”

restaurant with the type ambiance we

want to recreate for community

restaurant

Prototype Testing – Cruz Roja Interview

Cruz Roja

• 100 offices in Barcelona to distribute food to needy

• Starting a new program and acquiring infrastructure to

distribute fresh products

• Since the crisis, there are less companies but more

people involved

• People are provided with education and contacts of

companies for job opportunities

• Institutions are organized so that families don’t repeat

their benefits with another institution

• Cruz Roja is opened to be partners with us so that

people that volunteer for them can have a meal at our

restaurant

• Banco del Tiempo Program: an individual offers a

service and then he/she gets something back (no

money involved)

Sourcing

• Mercabarna as a possible sourcing option• food is distributed once a week and food that was not sold is

given away to institutions, such as Banco de Alimentos

• Contact small suppliers to reduce their cost associated

with food waste and to improve social image

• Source only necessary volume of food; reduce cost

Distribution

• Need to have infrastructure for the management of fresh

food: refrigerated truck, refrigerators in restaurant to store

food

Spain

• When the crisis appeared, volunteers increased

• Motivated due to free time, offer time to help others

Other suggestions

• Change concept from “food waste” to “food surplus”

• Our legal structure should be as a NGO

• Control the demand of volunteers

• Alternative model: “Banco del Tiempo Program”

Technical Coordinator Juan García Pascual

Prototype Testing – Veritas Interview

Veritas – organic supermarket:

• For-profit business with social and environmental

values at their core (ecology, economy & equity)

• Skip the middle man and are involved in the supply

chain from the planning of the farming to the selling

• Avoid waste food at their suppliers but cannot guarantee

for other orders farmers make for other customers

• Not very stringed regarding superficial production

standards, for example “B-grade” products used for

juice production

• Food surplus at retail level

• Used for animal feed

• Provide it to NGOs and religious groups (self-delivery)

• Veritas is planning to create “kitchen” where food surplus

can be used to produce other goods, such as marmalade

• Operate under the principle that waste equals food

• Employees come from less fortunate background

• Human and not machine powered

• Promote local organic production

Sourcing• Possibility to source surplus from Veritas in case excess of

retail capacity exists

• Best option major organizations, distributors (i.e. Mercabana) and manufacturers as they can provide constant supply

• Local institutions such as Banco Alimentos may also be a good source of food and operational intelligence

Distribution• Refrigerated truck as legal requirement to transport fresh

produce

Spanish food culture• Consider their products as generally fresh and of high quality

• Growing trend to buy organic products

• Misconception of ‘local = organic’• 99% of organic fresh products need to be imported

• It is more ethical and environmentally friendly to source organic products from far away than to purchase industrially produced goods locally, due to in the production (i.e. pesticides) and transportation

Organic labeling• There are no standard labeling mechanisms but any organic

labeling should be taking seriously as it could harm the image of organic labeling in general

CEO Silvio Elias

Prototype Testing – Bislakko Interview

Restaurant Bislakko

• Working in the kitchen of a restaurant is not something easy: when

you have all the tables full you should be able to work under great

pressure

• It’s not possible to learn to be a cook in a short time, two/three years

are the minimum (he continues to follow one/two courses to learn new

trends and practices every year)

• In the restaurant there are three key figures: the most experienced

cook, the most experienced waiter and the restaurant manager

• They are the engine of the restaurant

• If it happens that one of them goes away, the service will likely suffer for a

variable period

• Substituting them is not easy, because of the know-how specific of the

restaurant they have

• Every time you hire a new cook/waiter, he needs about a couple of

weeks to adapt to the working style and to learn the basic practices of

the restaurant

Chef Cook Davide Saggia

Prototype Testing - Survey of Target Groups

Students• 80% of students prefer a location close to

campusIdeal locations:• Universitat: 50%• El Raval: 30%• Eixample: 20%

• 70% of students could/would not afford a price for a course above 6€

• 50% of students go out for a meal at least once a week

• 40% of students would volunteer for up to two hours for a free meal for themselves and friends

• 40% have experience working for a café/restaurant20% would be interested in job opportunities at a restaurant

• 20% of students would come in once a week to mentor apprentices of the community restaurant

Survey conducted at Placa Universitat/ Panel at Café Federal; n = 20 students

Panel Session• Identified Café Federal, as a

proxy for the ‘atmosphere’ of our community restaurant

• Invited student panel to “try out” restaurant

• Conducted panel session to investigate attractiveness and feasibility of community restaurant model

Prototype – Idea BoardCafé Atmosphere in green surrounding

2. CAFÉ EDÉN - COMMUNITY RESTAURANT

Social Enterprise – CAFÉ EDÉN

• A community restaurant that sources

food surplus to provide customers with

a creative culinary experience

• NGO that provides jobs and training

• Located near Placa Universitat

Mission

• To grow a financially sustainable community restaurant that reduces food waste, by sourcing from quality food surpluses, offers unemployed youth healthy meals, provides them with employment as well as professional training in the culinary arts, and supports their integration as valuable talents into the labor market

Vision

• Catalyze a new generation of cooks, restaurants, and consumers aware of the food waste issue

• Tackle youth unemployment and develop highly skilled culinary artists

• Generate interaction amongst peers with different backgrounds (educational and social) to create dignity and build a community

Food Cycle

• Based on organic farming principles• Incorporate idea of a more beautiful neighborhood

using natural and useful elements

Step 1:

• Source ‘food surplus’ for restaurant

Step 2:• Transform food into eat-in and take away

food (Creative Cuisine)

Step 3:• Use food left overs for composting to fertilize

flower/herb garden• Composting done via indoor-composting process

Step 4:• Source of necessary ingredients such as herbs,

fruits and vegetables for kitchen• Harvest according to seasonality

1

3 2

4

• Food surplus collection from major distributors that will otherwise throw away food

• Mercabarna (already supplies local institutions, i.e. Banco Alimentos)

• Smaller suppliers to reduce their cost associated with food waste

• Buy additional ingredients and fresh produce at wholesale level

• Use herbs, fruits, vegetables from restaurant garden

1. Sourcing of Produce and Ingredients

Collection of goods from

different suppliers two to

four times a week

Refrigerated truck to

transport fresh food

Daily inventory of refrigerated storage facility at restaurant to plan efficient

sourcing for additional ingredients needed (just-in-time). Maintain lean inventory of

perishable products to reduce food waste, while improving control

2. Creative Cuisine

• Seasonal creative cuisine to reduce

environmental (food cycle) impact and

source quality at low prices

• Changing menu depending on the surplus

supply of the day

• Provide varied, healthy meals to customers

and educate staff at a higher rate

• Additional purchase of limited assortment of

fresh ingredients for accompanying dishes,

as well as fresh meats, fish and dairy

• Supplementary produce sourced from

composted herbal and vegetable gardening

3. Composting & 4. Gardening

• Create compost from own food

waste and close food cycle

• Use compost to fertilize herbs,

vegetables, and plants that are

grown inside and around the

restaurant in pots

• Create natural and inviting

atmosphere

• Demonstrates and educates

community about food cycle

and waste recycling

Position N° and period Comments

Cook1 – long term • Michelin-starred

2 – short term• Unemployed• Professional experience required

Waiter1 – long term

• Professional background as waiter• Now unemployed

3 – short term• Unemployed• Better if they have previous experience

Restaurant manager 1 – long term• In charge also of the supply• Better if unemployed• In charge of the food cycle process

Supply supervisor 1 – short term• Coherent background• Reports to the restaurant manager• Collection of food surplus

Volunteer 6-8 per day• Unemployed youth 16 to 25• Task without direct customer contact• Get free meal

Apprentice 3-4 per time• Coherent background• 2/3 years, can be interrupted if they find

a job

Employment

Apprenticeship Program

Promising cooking talents

• 3/4 apprentices per time

• The Michelin-starred cook will teach them

the basis of creative cooking

• Targeted to unemployed youth with possibly

a gastronomic background

• We take care of helping them to get the

“Certificado de manipulador de alimentos”

• 2/3 years, can be interrupted if they find a

job

• Goal to develop a good cook for the

restaurant or for future openings and to

increase the employability of the others in

the sector

Volunteer Opportunities

Unemployed youth (16 to 25) • Volunteer for 2 hours for a free meal

• maximum of two people can join the meal

• The social restaurant has limited opportunities for

volunteering

• Estimated capacity of 6-8 volunteers per day

• Frequent volunteers interested in a training position

are introduced to gastronomy and kitchen

processes

• Alternating volunteers expand restaurant

community

• Maximum number of volunteering hours per person

per week = 6 (depending on demand) to increase

outreach

• Duties include any task without direct customer

contact (i.e. dish collecting and washing, cleaning

at closing and opening)

Teaching and Mentoring System

Student Volunteers

• Students volunteer to give training and one to one

mentorships in different skills (i.e. public speaking,

cv writing)

• Unemployed youth can participate in the sessions

to learn and increase employability

• Our short-term employees and apprentices must

follow the sessions

• Courses and mentorship sessions held during

closing hours of the restaurants

• Both the students (teachers) and the unemployed

participants receive a free meal

• The skills offered and the number of one-to-one

sessions available will depend on the number of

students volunteering

• It is important to have the same students mentors

for a few weeks to creates a trustful relationship

with counterpart

NGO Foundation Private company (S.L.)Sustainability

•No initial capital required•Public grants and donations•Possibility to employee volunteers •Dependant on donation

•60,000 € starting capital required •Members donations•Possibility to employ volunteers •Dependant on donation

•3,000 € starting capital required•Private capital•Fully paid staff•No dependant on donations

Outreach

•Limited to the amount of founds collected

•Linked to the initial donation of the founder

•Linked to the starting capital

Impact

•Focus on social value•Majority of the managers time spent in collecting founds

•Focus on foundation mission•The founder decide a objective and the foundation as to serve this objective

•Mix of social mission and creation of economic value•Risk of mission drift

Business Plan - Legal structure

Assumptions    Week days Lunch DinnerOpening time of Kitchen (in min.) 120 240Avg. Time spent by customer (in min.) 30 60No. of available seats 70 70Avg. No. of seats occupied 35 35No. of customers 140 140% of students 80% 80%

Weekends Lunch DinnerOpen time (in min.) 120 240Avg. Time spent by customer (in min.) 30 60No. of available seats 70 70Avg. No. of seats occupied 40 40No. of customers 160 160% of students 50% 50%

Revenue Estimation  

Week (Sunday to Thursday)  

No. of students/day 224

Avg. Price of meal/student 10

No. of Non students 56

Avg. price of meal/non student 21,5

Week Revenue 13.776,00

Weekend (Friday and Saturday)

No. of students/day 160

Avg. price of meal/students 10

No. of Non students 160

Avg. Price of meal/non students 21,5

Weekend Revenues 10.080,00

Total Revenue/week 23.856,00

Total Revenue/year 1.240.512,00

Business Plan - Revenues

Sources: http://www.thinkspain.com/spain-properties/4/5/11http://www.bakertilly.com/userfiles/BT_Retail_RestaurantBenchmarks_web_small.pdf

Business Plan – Cost and ProfitCost Analysis  Fixed Costs 573.114,03Utilities (electricity + Water) 44.470,03Rent (in Eur/year) 30.000,00Labour:Master Chef (in Eur/year) 72.000,00Cook x2 (in Eur/year) 57.600,00Waiter x4 (in Eur/year) 72.000,00Manager (in Eur/year) 24.000,00Supply supervisor (in Eur/year) 21.600,00Free meals delivered x54 (Eur/year) 134.784,00Total labour (Eur/year) 381.994,00Decoration + Kitchen devicesTables (in Eur) 2.250,00Chairs (in Eur) 3.400,00Stove (in Eur) 15.000,00Fridges (in Eur) 13.000,00Diswasher (in Eur) 5.000,00Storage spaces (in Eur) 12.000,00Kitchen ustensils (in Eur) 10.000,00Maintenance cost (excluding labour)(in Eur) 6.000,00Other expenses (in Eur) 50.000,00Total Decoration + Kitchen devices 116.650,00Refrigerated Van 22.000,00

Variable cost 223.292,20

Food cost

Food (in Eur) 173.671,68

beverage (in Eur) 49.620,48

Total food cost (in Eur) 223.292,16

Total cost y.1 (in Eur) 818.406,19

Total cost y.x (in Eur) 707.486,19

Profit before tax y.1 422.105,81

Profit after tax y.1 274.368,77

Profit before tax y.x 533.025,80

Profit after tax y.X 346.466,77

51%

49%

Revenues from Students

Revenues from Non students

59%

33%

8%

Nb. Of student meals Nb. Of Non-student meals

Nb. Of meals to volunteers

Business Plan

Cross Subsidization Impact In Terms of Distributed Meal

Sources of Revenues By Category

Price Structure

Lunch Menu Dinner Menu

Promotion

• Created a Facebook page and Events will keep community updated and involved

• Win Generalitat as volunteer partner to extend awareness and volunteer pool

• Make use of University information boards and student websites

• A website will be created to serve as communication channel

• Advertising and publicity in local and regional media outlets

• Media coverage from ESADE and partners

3. IMPACT, OUTREACH & SUSTAINABILITY

Impact - Employment

Short-term• Offer low skilled vacancies for

unemployed youth to provide income option

• Vacancies will exist in• Sourcing of food• Service (Restaurant, Bar and take-

away)• Kitchen Assistance

• All positions are on a temporary basis and employees are constantly required to apply for other job vacancies outside the social enterprise. These activities have to be reported on a biweekly basis.

• Cooking apprenticeship for unemployed youth to increase employability

Long-term• Possibility to identify highly skilled

unemployed youth which can assist in the management and expansion of the social enterprise.

• To facilitate the increased social outreach qualified individuals may take on positions such as:

• Management assistant of restaurant, sourcing or service

• Other managerial positions that need additional support

• Develop apprentices to highly-skilled Chef-cook candidates (2-3 years) and seek to recruit the most talented for current and future restaurants• It is expected that the Professional Chef

will leave the venture to seek more profitable position within 2 - 3 years

Impact – Reduction of Food Waste

Operations• By sourcing ‘food surplus’ we directly

reduce the amount of produce wasted• Indoor composting to grow herbs and

plants will complete the food cycle• By transforming food surplus in to high

quality creative cuisine the restaurant will serve as a symbol of the food cycle

• Use creative kitchen to demonstrate variety of meals possible with food available

Awareness• Success of the venture will draw increase

awareness among consumers about the important issue of food waste

• Educate not only apprentices but also general public about the problem of waste food and individual solutions.

• Highlight the seasonality of food and effects of mass production

• Leaflets• Hangouts• Special events (fee applies) – i.e. cooking

school or guest speakers• Food Cycle creates awareness for natural

food cycle by illustrating and demonstrating efficient use of food

• Schedule special events for practical learning about composting, food use, and harvesting

Impact - Dignity

Employees• Having a job would help these unemployed

people to regain self-confidence as well as to

re-enter the job market after leaving the

restaurant (taking them away from the

“poverty-cycle”)

Volunteers• Working to get the meal enhance the dignity

instead of creating a sense of charity

Customers:• The setup and community aspect of the

restaurant enables individuals from different

social and educational backgrounds to

interact in relaxed and friendly environment

• The other customers can’t see who is paying

the normal fee and who is paying the

“discounted” one

Student mentors• Being taught by peers when the

restaurant is closed creates a private

environment for experience and

information interchange from both

sides

• Educates students about current

social and economic issues

• Individuals can form a network of

helpful contacts for their private as

well as professional matters

Apprentices• Michelin-starred cook provides

expertise and increases their self-

confidence and employability

Outreach – Spreading Social Value

Short term employment

• Initially restricted numbers of volunteers and staff (max. 8 people per day)

• Full time staff (9 people per day)

Long term employment

• Form 3 chefs every 18 months

• Open a new restaurants in the next five years in order to provide new jobs

Food waste reduction

• Initial target of sourcing 65% of the total consumption from food surplus

• Food waste reduction of 66.315,6 kilos per year

• Long term goal of maximizing this figure (80% in the next 5 years)

Free meals served

• Initial target of 54 free meals per day

• Long term goal of increasing the number of meals (reduce the work hours from 2 to 1)

Sustainability - FinancingInitial capital Estimation  

Decoration + kitchen (in Eur)  116.650,00

Refrigerated Van (in Eur) 22.000,00

Utilities and rent (first 6 months) (in Eur) 12.411,67

Total labour (first 6 months) (in Eur) 190.997,00

Food cost (first 6 months) (in Eur) 111.646,08

Total (in Eur) 453.704,75

4. SCALABILITY & THEORY OF CHANGE

Scalability –Limitations and Consideration

LimitationsCommunity

• Gain understanding of other communities

• Create inviting environment for all three target groups (UY,

students, paying customers)

Employment

• Identifying and employing staff, particularly cook, that share

social value and are committed to growing a community

restaurant

• Fair distribution of volunteer positions

Sourcing

• Food surplus an inconsistent and limited resource may

reduce customer experience

• High fluctuation in type of products

• Ensure 100% reuse of supplies

• Increasing logistics costs

• Sourcing infrastructure creates difficult to replicate and

expand

Considerations for scaling up:Dissemination:

• The active promotion of ideas and information, assisting others to bring an innovation to their community.

• Program: an integrated set of actions that serve a specific purpose, often involves comprehensive guidelines to facilitate implementation

• Help potential social entrepreneurs replicate CAFÉ EDEN in their community

• Founding principles: general guidelines and values about how to serve a given purpose, sharing of a core philosophy.

Branching: is the creation of local sites through one large organization

• Requires increasing degree of centralization, coordination and resources

• Organizational model: an overarching structure for mobilizing people and resources to serve a common purpose

• Demands greater financial resources

• May inhibit generosity of sourcing partners i.e. Marcabarna, Banco Alimentos

Theory of Change

Provide job & training by

transforming food surplus

Problem of unemployment

in Spain

Large amount of food wasted

Feed poor people & maintain dignity

Regain self-confidence

Re-enter the job market

Raise awareness

& reduce food waste