confections by design
TRANSCRIPT
Business Plan
Heather Wittsack, Sakura Shu, Joey Tang, and Lacey Sabine12/1/2012
Table of Contents
1.0 Executive Summary…………………………………………………………………………………………...21.1 Objectives 21.2 Mission Statement 21.3 Key for Success 21.4 Startup Projections 2
Chart: Project Costs 32.0 Company Summary……………………………………………………………………………………………3
2.1 Company History 42.2 Owners’ Resumes 4
3.0 Services………………………………………………………………………………………………………...123.1 Menu Mix 13
Table: Sample Service Menu 134.0 Market Analysis Summary…………………………………………………………………………………..15
4.1 Market Segmentation 16 Chart: Market Segments 16
4.2 Target Market Segment Strategies 174.2.1 Business Consumers 174.2.2 Family Dining Consumers 174.2.3 Health Conscious Consumers 174.2.4 Generation Y Consumers 174.2.5 Quick Service Consumers 184.2.6 Casual Dining Consumers 18
4.3 Service Business Analysis 184.3.1 Competition and Buying Patterns 18
5.0 Technology Plan Summary…………………………………………………………………………………196.0 SWOT Analysis………………………………………………………………………………………………..19
6.0.1 Strengths 196.0.2 Weaknesses 196.0.3 Opportunities 206.0.4 Threats 20
6.1 Competitive Edge 206.2 Marketing Strategy 20
6.2.1 Positioning Statement 206.2.2 Promotion and Advertising Strategy 20
6.3 Sales Strategy 217.0 Management Summary………………………………………………………………………………………21
7.1 Personnel Plan 21Table: Personnel 22
8.0 Financial Plans……………………………………………………………………………………………......238.1 Assumptions 238.2 Forecasted Sales 238.3 Forecasted Profit and Loss 248.4 Break-even Analysis 258.5 Forecasted Cash Flow 268.6 Forecasted Balance Sheet 27
Table: Projected Income Statement Year 1………………………………………………………………......28Table: Projected Cash Flow Year 1…………………………………………………………………………….29
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1.0 Executive Summary
Confections by Design is a well built company with experienced owners. We are more concerned
for our guests then for ourselves and hope to bring a new and exciting experience to our patrons. We vow
to produce only the highest quality of items and bring a new edge of service to the Kentlands community.
We have the ability to manage our company with excellent skills. Each one of our owners has strengths in
different areas and when combined together creates a great management team.
1.1 Objectives
Confections by Design has clear, achievable objectives that outline our business. They are the
basis for our mission statement and project the success of our business.
Create products that exceed the markets’ needs and wants
Create a unique atmosphere for guests and employees
Create a premier, fast casual café in the Kentlands area
Create a successful company aspect
Bring in new guests and create loyalty
Stay ahead of the competition
1.2 Mission Statement
At Confections by Design, we pledge to treat and serve guests with high class service through
respect and honesty. We come together as a family to provide a unique and exciting experience for our
guests and employees. We market only the best quality of products to create a brand name that inspires
trust and loyalty. We encourage creativity from our community, guests, and employees. We are
committed to achieving our goals by supplying the community with creations of flavor and explosions of
senses.
1.3 Key for Success
Confections by Design will succeed by simply being the best café around. This is determined by
not only the quality of the food but also by the customer service provided. Confections by Design plans
on having a small, close, and well-trained staff that can meet the public and the company’s needs.
Having a small staff creates a family like atmosphere with the café. By inviting the public into what we
consider our home, makes the customer feel special and we are able to create strong and loyal
relationships.
1.4 Startup Projections
We have done all the proper research to ensure our success with Confections by Design. We
picked a prime location at the Kentlands in Gaithersburg, MD that is heavily populated and has many
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businesses nearby. Location is a huge contributor to the success of a business. We have projected the
total costs for our business and will apply for a loan. Our loan will cover the costs of renovations and
equipment purchases for our café and will be over the course of 15 years. We have broken down our
initial costs into four different categories; renovations, equipment, furniture, and inventory. Outlined in the
chart below, we have estimated the cost of everything we will need to start our business.
Projected Total Cost Breakdown
Restaurant Renovations$100,000.0
0
Capital Equipment$249,743.0
0
Furniture & Fixtures $6,685.00
Inventory $2,724.72
Total Project Cost$359,152.7
2
Ownership Equity
Ownership Individual Contribution $30,000.00
Ownership Contributors 4
Total Ownership Contribution$120,000.0
0
Building Loan
Project Total Cost$359,152.7
2
Ownership Deposit$120,000.0
0
Net Loan$239,152.7
2
Loan to Value Ratio 67%
Revolving Line of Credit$100,000.0
0
2.0 Company Summary
Confections by Design is a company with extended knowledge of the restaurant industry. Our
company is being established with high values and morals. Our owners take pride in their work and excel
in many different areas. Heather has extensive experience in the customer service industry through her
employment within different companies over the past ten years. She has excelled in showing initiative and
demonstrating leadership. She has strong knowledge of the financial aspects and back of the house
operations. Lacey has extensive baking experience from working in a bakery. Her creative abilities allow
her to make aesthetically pleasing, yet delicious goods that customers will love. She also has over 9
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years experience working and progressing within the customer service industry. Joey has extensive
experience within the front of the house operations. She also specializes in tourism and marketing with
experience in banquet operations. Sakura has extensive baked goods experience from working in a
bakery. She has a strong knowledge of quality and inventory control and has great relations with supply
vendors. Sakura also has great human resources and marketing skills. The goods that the company
provides definitely are a huge part of success, but the customer service provided is another key ingredient
that will allow our company to succeed. All the owners are able to provide these necessary skills to
ensure the customers are well beyond satisfied.
2.1 Company History
Confections by Design has experienced and knowledgeable business owners which is one of the
benefits our company has above others. Each owner has studied as well as worked hands on in the
hospitality industry creating a strong background and giving us the abilities to succeed within the industry.
We will focus on building a compatible team of employees to work in our café next to us. We look at our
employees as equals; we are all part of a team that functions together.
2.2 Owner Resumes
Heather Wittsack11700 Little Seneca Parkway, Clarksburg, MD 20871
301.873.1092 / [email protected]
Hospitality Administrator and Receptionist
Talented and dedicated receptionist with more than 10 years experience in the customer service industry, now targeting the hospitality industry in events planning and administration. Has a proven ability to know office protocols and keep up to date with system upgrades.____________________________________________________________________________________
Key Skills____________________________________________________________________________________
Telephone & Front Desk Reception Customer ServiceDatabase & Records Management Human RelationsOffice Organization & Administration Complaint HandlingNextGen Scheduling Software MultitaskingMicrosoft Office Cake Decorating
____________________________________________________________________________________ Professional Experience
____________________________________________________________________________________
Simmonds, Martin, & Helmbrecht Chtd. - Montgomery Village, MD - A privately owned and highly respected Dr.’s office in Maryland with four locations servicing Montgomery and Frederick counties.Medical Receptionist - April 2005 to present
● Maintains an average below 3% errors each week on paperwork and billing codes for approximately 140 patients
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● Demonstrates ability to answer multiline phones and schedule approximately 50 appointments daily while performing other tasks
● Achieved status to help with patient complaints and ease most disgruntled patients● Establishes knowledge with billing codes and more efficient ways to bill for services● Impressive to patients, able to remember loyal patients who come only once or twice a
year as well as regulars● Demonstrates knowledge of insurance companies to obtain up to date information on
patients’ benefits● Cross-trained as a medical assistant after demonstrating initiative and extensive
knowledge gained from on-site training
The Comus Inn - Dickerson, MD - A privately owned fine dining restaurant with a dining room to accommodate up to 80, three private rooms upstairs to accommodate up to 45, and a banquet room downstairs to accommodate up to 200.Garde Manger Chef, Pastry Chef, and Server - September 2009 to July 2010
● Demonstrated knowledge to prepare salads, appetizers, and desserts to order while expediting ticket orders
● Demonstrated ability to manage the waffle and omelet stations on the buffet line to service guests in a timely manner
● Cross-trained as a server after demonstrating exceptional customer service and human relation skills
Safeway, Inc. - Mt. Airy, MDHead Cake Decorator - January 2002 to April 2005
● Demonstrated ability to decorate a variety of cakes, making anywhere from 40 to 80 cakes daily depending on size
● Achieved status to take over wedding cake orders● Demonstrated knowledge to order cake supplies and organize storage areas● Demonstrated knowledge to fry donuts and bake various breads, bagels, and pastries
Weis Markets - Damascus, MDCashier and Cake Decorator - October 1999 to December 2001
● Demonstrated ability to check out customers in a timely manner continuously● Maintained high customer expectations and friendly greetings● Transferred to the bakery department for cake decorator training after demonstrating
ability to take initiative____________________________________________________________________________________
Education and Certificates____________________________________________________________________________________
Culinary Arts & Supervision AAS Degree, May 2010Frederick Community College - Frederick, Maryland
ServSafe Certified, March 2004Frederick Community College - Frederick, Maryland____________________________________________________________________________________
Additional Information____________________________________________________________________________________
Recognized during a staff meeting in June 2011 with the following awards: One of five employees who have not called out of work during the year One of three employees who have never been tardy during the year Having the lowest error rate of 3% within the entire company
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Chang Shu
CONTACT INFORMATION: 14042 Rockingham Road Mobile: 347-405-1133Germantown MD, 20874 Email: [email protected]
WORK EXPERIENCE 2010-Present Baking Assistant at Cake Dreams, independent cake shop at Rockville, MD
Producing cake products from scratch, making varieties of sauces, preparing buttercreams and custards.
2012 Cashier/Manager Trainee at Quickfire, Japanese Hibachi, Gaithersburg, MDCorrectly inputted orders into the POS system, trained front and back of the house staff, created organization charts, and followed the company’s standard procedures.
2010-2011 Student Intern at the Marriot Hospitality Center Mont. College, Rockville, MD Directed phone calls, organized invoices, created grocery lists for the production and catering classes, analyzed and inputted information into database, supervised cooking classes, completed individual hospitality projects, and assisted event productions.
2009-2010 Cashier at Chick-fil-A, Germantown, MD
Delivered high quality food with exceptional customer service, prepped drinks and milkshakes according to Chick-fil-A’s standard procedures, ensured all orders are made correctly, and followed sanitation rules at all times.
EDUCATION Present University of Maryland Eastern Shore at the Universities at Shady Grove
Target Diploma: B.S. in Hotel/Restaurant Management 2009-2011 Montgomery College, Rockville Campus, MD
Diploma: A.A.S. in Hospitality Management Certified for Meeting, Conference, and Event PlanningCertified for Food and Beverage Management
2005-2009 Northwest High School, Germantown, MD
VOLUNTEER EXPERIENCE 2011 Planning and coordinating fundraising event at Montgomery College, Rockville Campus 2011 Participated in Cake Dreams’ fundraising event for donations to the Japanese Red Cross 2011 Assisted and coordinated special club event for the Montgomery College Nutrition Club 2010 Planned and worked for the Montgomery College Presidential Inauguration Luncheon 2006-2009 Northwest High School student aid and tutor
EXTRACURRICULAR ACTIVITIES 2010-Present Phi Theta Kappa 2010-2011 Montgomery College Nutrition Club 2009 Mu Alpha Theta 2008-2009 The National Society of High School Scholars 2008-2009 Maryland Classic Youth Orchestra: Philharmonic, First Violin 2007-2009 The National Honor Society
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AWARDS RECEIVED Present Hilton Worldwide Scholarship Award 2011 Dr. Harry Harden Jr. Student Academic Excellence Awards 2011 Montgomery College Dean’s Excellence Award 2009-2011 Marriott Foundation Scholarship Award 2009-2011 Montgomery College Board of Trustees Scholarship Award 2010 Asian Student Award 2009 AP Scholar Award 2009 Certificate of Merit 2009 President’s Award for Educational Excellence
REFERENCES Janet Saros, Professor of Food and Beverage Management Montgomery College 51 Manakee St Rockville, MD 20850 (240)-567-7182 [email protected]
Lisa Fanning, Marriott Hospitality Center Coordinator Montgomery College
51 Manakee St, CC-170 Rockville, MD 20850
(240)-567-5268 [email protected]
Ruth K. O’Rourke, Program Director Hotel and Restaurant Management University of Maryland Eastern Shore at Universities at Shady Grove 9630 Gudelsky Drive Rockville, MD 20850 (301)-738-6327 [email protected]
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Yin Ting Tang18603 Sage Way Germantown MD 20874
(202) 629 [email protected]
OBJECTIVE
A management level position in event planning, utilizing computer knowledge, organizational abilities, research abilities, professional school training, and previous job related experience.
EXPERIENCE
Belle Haven Country Club, VA6023 Fort Hunt Road Alexandria VA 22307Banquet Captain
Supervise and coordinate banquet and catering events Assist Banquet Manager in scheduling all Banquet Servers Assist in administrative duties as directed by Banquet Manager Coordinates the setup, servicing of the function and breakdown of the event Provide courteous service to guests Create banquet summary and follow procedures to completion
Marriott Hospitality Centre at Montgomery College (Rockville Campus), MD170 Campus Centre 51 Mannakee Street Rockville MD 20850Internship
Provide support to the professors and students in Hospitality Management major in Montgomery College (Rockville Campus)
Organized and rearranged the Student Assistant Procedure Manual Coordinate and assist with Hospitality Management related events Daily office operation.
Learning Power Education Centre, Hong Kong4A Park commercial Building Causeway Bay Hong KongTutor
Taught 1st to 9th grade academic Chinese, Mathematics and Basic English. Prepare materials and classrooms for class activities. Adapt teaching methods and instructional materials to meet students' varying needs and interests. Plan and conduct activities for a balanced program of instruction, demonstration, and work time that
provides students with opportunities to observe, question, and investigate. Counseled students and met with parents.
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Equipment and cooking supplies inventory control Preparing for grocery list, shopping, storage of food and setting up daily labs Ordering student uniforms and equipment, rental items for large events Supervising students with FOH and BOH of catering events Semiannual cleaning, maintenance for large equipment, storeroom organization Daily office operation.
Hospitality Management Department Office in Montgomery College, MD220 Technical Centre 51 Mannakee Street Rockville MD 20850Student Assistant
Walt Disney World, FLCultural Representative
Greeting and interacting with Guests while promoting the participant's cultural heritage Demonstrating and selling pavilion merchandise in indoor and outdoor areas Operating a computerized cash register Setting up, stocking and cleaning shelves and carts Maintaining the cleanliness of the shop.
The Marco Polo Hong Kong Hotel, Hong Kong3 Canton Road Harbor City Kowloon Hong KongIndustrial Trainee
Clean rooms as allocated and build guest rapport Prepare and serve room-service breakfast Pick up and deliver laundry from the linen room Special cleaning on a routine basis
EDUCATION
Montgomery College, MD Associated Degree in Hospitality Management (Graduated with honors)
Caritas Francis Hus College, Hong KongAssociated Degree in Tourism and Marketing Management (Graduated)
Canossa College, Hong KongSecondary School (Graduated)
LANGUAGES
Fluent English, Mandarin, and Cantonese
REFERENCES
Mr. Edward Chip BrennanBelle Haven Country Club General Manager6023 Fort Hunt Road Alexandria VA 22307(703) 329 1448 Ext 5501Ms. Janet SarosMontgomery College Hospitality Management ProfessorRoom 170 Campus Center 51 Mannakee Street Rockville MD 20850(240) 567 7182Ms. Lisa FanningMontgomery College Hospitality Management Center Coordinator170 Campus Center51 Mannakee Street Rockville MD 20850(240) 567 5268Mr. Frankie ChengLearning Power Education Centre Owner4A Park commercial Building Causeway Bay Hong Kong(852) 9029 3109
Lacey Sabine17119 Eylers Valley Road
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Emmitsburg, MD 21727301-401-9977
SUMMARY OFQUALIFICATIONS
-Successful experience in sales, effective communication, and customer service.-Self-motivated, team player.-Result oriented-Creative, out-of-the-box thinker, and problem solver. -Experience working with business documents and interacting with customers-Exemplary interpersonal skills-Proficient with Microsoft Word, Excel, and PowerPoint.
EDUCATION University of Maryland Eastern Shore at Shady Grove, Rockville, Maryland 2012Expected Graduation May 2014Hotel and Restaurant Management
University of South Carolina, Columbia, South Carolina 2011Hotel, Restaurant, and Tourism Management
Frederick Community College, Frederick, Maryland 2009-2011Associate Degree – Business Administration
Frederick County Career & Technology Center, Frederick, Maryland 2008-2009Marketing I & II
EXPERIENCE Scenic View OrchardsSales Associate, Product Preparation CoordinatorMay 2003 – PresentJob Duties – Preparing, selling, and marketing produce and various products. Responsible for accurate and efficient management of a cash till. Training of new employees.
Marriott Hotels & ResortsBanquet ServerNovember 2011- May 2012Assisted with set-up of tables, linens, chairs, etc, and full service for banquet events. Provided excellent food and beverage service for banquet events, and maintained back of the house, front of the house and side work duties for overall productivity of events.
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Liberty Mountain and ResortSki TechnicianDecember 2010 – February 2011Job Duties – Customer service representative, assisted guests in a fast paced work environment, and provided guests with proper ski and snowboard equipment. Responsible for proper maintenance and upkeep of pertinent equipment.
Trail GardenSeasonal Baker, Sales AssociateNovember 2009- November 2012Job Duties - Preparing, baking, selling, and marketing goods
Boulder RidgeSnow Tubing Seasonal EmployeeJanuary 2010- March 2010Job Duties – Setting up and closing down the facility, cleaned and maintained the terrain, operated the lift, assisted guests onto lift and down the slope, and ensuring that the guests’ visit is a great experience.
State Farm Insurance CompanyHuman Resources Assistant, Summer EmployeeOctober 2008 – August 2009Job Duties – Test candidates looking for employment, schedule interviews and meetings, database entry, initiate background checks, order supplies, and other administrative duties.
AWARDS ANDACTIVITES -Frederick Community College Engineering Club -Toastmasters International - Skills USA Regional Open Job Demo -Campus Kitchens Project -Distributive Education Clubs of America (DECA) member -Deerfield United Methodist Church member -Catoctin Girls Varsity Soccer and Tennis Team Captain
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3.0 Services
Confections by Design will offer a variety of baked goods, sandwiches, and beverages. Along
with our products, we offer an experience of belonging and family values at our café. We focus on doing
things right and achieving customer satisfaction. We go above and beyond the needs of our guests and
share our knowledge with the community. We are about creating lasting impressions for our guests so
they will know there is always a place for them at the neighborhood café.
3.1 Menu Mix
Confections by Design will offer a high quality menu with deli and bakery items. In addition to our
service menu we will also offer a catering menu for guests who want to order in larger volumes. Our
bakery products are our main focus as we design cakes for any occasion. We work with our guests to
achieve their desired design and use their guidance to create a work of art. We will also offer a variety of
sandwiches, soups, salads, pastries, bagels, muffins, breads, cupcakes and cookies. All of our
sandwiches are unique and house designed with competitive prices. We will have an extensive coffee
selection to cater to any guests’ taste.
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4.0 Market Analysis Summary
From over the last decade to this current year, fast casual restaurants have been one of the
fastest growing restaurant concepts worldwide. The North American Market Research Company identifies
that fast casual restaurants are only 4% of all the other restaurant segments in 2011. The percentage is
still incomparable to quick service and casual dining. However the fast casual dining establishments have
doubled the number of units in the past three years. Although this concept has a smaller market than
quick service and regular casual dining establishments, fast casual restaurants are gaining popularity
each year. One factor that distinguishes fast causal from quick service is that the fast casual market is far
less saturated, therefore giving entrepreneurs opportunities to get into this segment in the food service
industry.
Fast casual restaurants appeal to the customers by offering quick and healthy food options. This
concept combines the consumers’ needs of “eating on the run” and “food that is better for you”. Due to the
increase of consumer awareness the unhealthy foods that are abundant in fast food chains and
restaurants, there has been a change in consumer attitudes towards healthy diet and lifestyle. Fast casual
establishments have found their niche at the intersection where eating on the go and healthy food options
meets. Their target markets are also consumers of other segments in the foodservice industry.
Fast casual restaurants are a relatively new segment in the restaurant industry in the last decade.
To generate revenue, entrepreneurs must strategically provide food and services that is appealing to the
other segments in the industry. To achieve this result, we must constantly focusing on keeping up the
high food quality and service standards while thinking of new innovative ways to improve them. Not only
do we have to offer varieties of food options, we must also offer services that other segments do not offer.
For example, at our cafe we also feature a catering menu that is targeting business and family dining
consumers. We would like to have them dine in our cafe but we will also cater to their other needs.
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4.1 Market Segmentation
The food service industry has distinguished in to the following six segments: quick service, fine
dining, casual dining, midscale, fast casual and retail.
61%
1%
11%
10%
4%
13%
QSR Excluding Fast Casual & Retail Fine Dining Casual Dining Midscale
Fast Casual Retail
Statistics retrieved from the North American Markey Research Company, 2011
Fast Casual establishments serve freshly prepared, wholesome quality, authentic foods at
reasonable prices with the same dining format as quick service restaurants. The average per person
check is approximately $7-$9. Fast casual restaurants are the newest and fastest growing sector of the
food industry. A recent phenomenon, this segment caters to current consumer needs by offering cheaper
alternatives to more expensive restaurants while offering custom made menu items with quality
ingredients.
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4.2 Target Market Segment Strategies
Confections by Design has carefully sought out our target markets. We plan to cater to our target
markets needs with our high quality menu and fun selection of items.
4.2.1 Business Consumers
Our bakery cafe is in the Kentlands, Gaithersburg, conveniently located for the consumers whose
offices are near this area. Our goal is to generate revenue from business consumers on the weekdays,
especially during breakfast and lunch hours. Whether it is sweet or savory, we wish to capture their
business by offering a variety of products that satisfy their needs for breakfast, lunch, and specialty foods
for meetings and conferences. Our strategy for this segment is classified into two; flyers and coupons,
and word of mouth. To introduce business consumers to our place, we use flyers and coupons to get
them through our door. Once consumers are satisfied with our foods and services, we hope to utilize our
customers to generate good word of mouth to bring in more business consumers.
4.2.2 Family Dining Consumers
To capture this segment of consumers, we are focusing on promoting the service and the bakery
cafe’s atmosphere. As we mentioned in the mission statement, we pledge to treat and serve guests with
high class service through respect and honesty. To generate business from this segment, we must put
our efforts into creating a family friendly environment and offer exceptional service better than midscale
establishments. To achieve this goal, we will utilize social media marketing; although we will also
advertise our foods, social media marketing is what we use to attract family diners. From Facebook,
Twitter, online reviews and blogs, we will create the opportunity for the guests to “see” our atmosphere
before they step into the door.
4.2.3 Health Conscious Consumers
As compared to our other target markets, this group seems to be easier to attract as long as we
continue to feature healthy food options. To promote our products, we will focus promoting on local radio
stations, newspapers, and also social media. In contrast with quick service consumers, health conscious
consumers search for in priority “healthy” and “cheap” eats, which cheap comes in second compare to
health. When we promote our food options, we will make sure to focus on mentioning the type and source
of our products, such as whole wheat, organic, cage free, grass feed, locally sourced, etc.
4.2.4 Generation Y Consumers
Generation Y is associated with consumers who are born between 1977 and 1994. This group of
consumers is unique in their need for delicious and trendy items, and also their knowledge of utilizing the
internet. Demographics are associated in this group of consumers because we must utilize the correct
marketing tools to promote our bakery café. This group is very familiar with online marketing tools, such
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as Facebook, Twitter, and Yelp. To capture their business, it is important that we constantly offer trendy
and delicious food along with exceptional service. To get them through the door, we must also utilize
social media marketing to capture their attention. And it is crucial that we are consistent with what we
offer because this group is impatient.
4.2.5 Quick Service Consumers
Since fast casual restaurants are tapping into growing demand for more healthful, specialty foods
that are speedily service and moderately priced, they are considered threats to quick service restaurants.
Recently there has been a shift in consumers’ demand as to search for foods that are better for
consumers. This is a huge opportunity for our bakery cafe because we are offering healthy foods that are
reasonably priced with speedy service. To reach this group of consumers, we will utilize direct mail
coupons that offer discount on certain items within certain times. We will also feature monthly specials on
some of our items to continue to receive business from this group of people.
4.2.6 Casual Dining Consumers
This segment of consumers is very similar to family dining consumers in which both group focus
mainly on the service and atmosphere of the restaurant. Therefore it is important for us to focus on
promoting exceptional service. We will use the same marketing strategy as family diners, which we will
utilize social media to capture their attention and then rely on our consistent good service to bring them
back. This is also a group where we can capture loyal customers by having a royalty program. As long as
we are consistent with everything we do, these customers will continue to come back.
4.3 Service Business Analysis
To supersede other restaurants in our area we are depending on the two most important factors,
food and service. We will also take advantage of our independent bakery café status, meaning we can
immediately change any food and service that is unpopular among with our customers. Unlike franchise
establishments, the owners of Confections by Design can make executive decisions that contribute to
success of the operation.
4.3.1 Competition and Buying Patterns
Since we are tampering in the other restaurant segments’ customers, it is reasonable to assume
that they are also trying to get those customers back. A clear indication of this movement is within the
quick service industry. Fast food chains are now also featuring “healthy foods” on their menu. With their
power to promote their foods on a national basis, fast food restaurants are considered one of the major
threats to fast causal restaurants like us. Restaurants in other segments of the industry are also changing
their food options featuring health benefits. However, their prices may continue to keep some consumers
outside of their boundaries. Consumer buying patterns may change in terms of increasing their visiting
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times in fast food restaurants and decrease the times they visit our bakery cafe. In order to overcome this
obstacle, we will focus on promoting in our strength which is marketing online and create strong ties
within the community. It is crucial that we have a positive, strong relationship with the community and let
our consumers know that we are supporters of giving back.
5.0 Technology Plan Summary
Confections by Design will create a website after the end of our third year in production. We will
hire a web designer to help us with our design and layout. Our site will consist of our company history,
location, business hours, menu, prices, contact information, comments page, and pictures of our
restaurant. Also, our guests will be able to place catering orders online. We plan to launch our website in
April of 2016. This will allow us to advertise to a new target market and our guests will have access to our
information 24/7. Our website will allow us to expand our target range and bring in new guests.
6.0 SWOT Analysis
The following SWOT analysis involves the assessment of the key strengths, weaknesses,
opportunities, and threats of Confections by Design.
6.0.1 Strengths
Unique concept: Based on the size and the fact that we are not a franchise, Confections by Design is a
unique café concept unlike any other in the shopping center.
Quality of food and service: Confections by Design offers the freshest ingredients along with a healthy
selection on the menu. At the same time we plan on having a small, close, and well-trained staff that can
meet the public and the company’s needs. Having a small staff creates a family like atmosphere within
the café. Inviting the public into what we consider our home makes the customer feel special and we are
able to create strong, loyal, relationships with them.
Knowledgeable management team: Each management member of Confections by Design has her own
unique background, which brings a diverse range of ideas and expertise to the company.
6.0.2 Weaknesses
Name recognition: Confections by Design has to rely on word-of-mouth because many of our potential
customers are not aware of our food and service yet.
Limited capital investment: Confections by Design has a minimal budget and is competing against larger
and more established café for market share.
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6.0.3 Opportunities
Growing populations: Confections by Design is located within 25 miles from downtown Washington DC.
Constantly growing populations in the Metropolitan area is going to bring more potential customers.
Growing health trends: The menu choices allow customers to select food options that are healthier for
them.
6.0.4 Threats
Competition: There are numerous competitors (both individual and franchise) who provide the similar
products in the area.
Increasing food cost: The cost of food and ingredients has been increasing continuously. As a result, the
profit margin will be lower.
6.1 Competitive Edge
Our competitive edge is our quality of food and services. We use only the freshest and the
highest quality ingredients that create delectable food. The size of Confections by Design is also one of its
greatest attributes. Since we are individual and small we can easily adjust business hours or delivery
arrangements to accommodate our customers’ needs, whereas the corporate chains do not provide such
accommodations. Confections by Design will truly cater to its patrons’ needs.
6.2 Marketing Strategy
Confections by Design is targeting families and businesses around the Washington DC
Metropolitan area.
6.2.1 Positioning Statement
Confections by Design is truly one of a kind bakery offering outstanding food and beverages
served by enthusiastic and knowledgeable management team and staff. It is the place to get cozy in a
quiet corner with a good book or enjoy a quality lunch outdoor when the weather is nice.
6.2.2 Promotion and Advertising Strategy
Online advertising – Confections by Design will advertise regularly on popular social media sites, such as
Facebook. This is a cost effective tactic that will allow us to reach prospects in a highly targeted way (e.g.,
based on criteria such as age, gender, geography, etc.).
Website – Confections by Design will develop a simple website in the beginning of the fourth year after
opening, which will provide basic information about the business, the menu, and links to our presence on
the aforementioned social media channels.
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Direct mail – Confections by Design will advertise regularly by direct mail. Flyers and menu with coupons
will be sent out to the nearby households and companies.
6.3 Sales Strategy
Confections by Design will use the following methods to increase revenue:
Monitoring popularity of menu items – actual profit returned from a menu is needed for management team
to manipulate the menu and possibly increase profit.
Control waste and theft – audit sales and inventory reports to evaluate ingredient waste due to inefficient
preparation, returned items and employee consumption.
Monitor and evaluate hours of operation.
7.0 Management Summary
Lacey Sabine, Sakura Shu, Joey Tang and Heather Wittsack are the founders of Confections by
Design. A partnership between four managing owners has been formed to run our bakery. Since the four
owners have managed restaurants in the area, they are familiar with local vendors and suppliers. The
managers also have leadership skills and have the ability to supervise personnel while reflecting the style
and character of the bakery.
7.1 Personnel Plan
Besides the four owners/managers, we are going to management the daily operations of the
bakery. Two full time bakers are needed to maintain the operation of the baked goods. They have to work
early in the morning to begin preparing our fresh baked breads, cakes, bagels, and pastries. We will need
two cake decorators, one full-time and one part-time, to manage all special ordered cakes and cupcakes.
The lead cake decorator needs to arrive early in the morning to begin preparing items for the morning and
creating a list for the afternoon. The part-time cake decorator will help with the afternoon and weekend
shifts. Four clerks are required to maintain the daily operation, take orders, make sandwiches/soups, bus
tables, and keep the dining area clean. Three Prep workers are needed for preparation of sandwiches
and soups while keeping their work stations organized. We planned to hire one more part time cake
decorator on the second year and one more clerk on the third year of operation. Prospective employees
are students from Montgomery College, University of Maryland and residents from the local area.
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Table: Personnel
# of
employees Year 1 # of
employees Year 2 # of
employees Year 3
Owners/ Managers 4 $140,000.00 4 $168,000.00 4 $235,200.00
Bakers - Full time 2 $41,600.00 2 $42,848.00 2 $44,137.60
Cake Decorator - Full time 1 $20,800.00 1 $21,424.00 1 $22,068.80
Cake Decorator - Part time 1 $7,800.00 2 $16,068.00 2 $16,551.60
Clerks - Part time 4 $23,400.00 4 $23,868.00 5 $30,420.00
Prep workers - Part time 3 $17,550.00 3 $17,901.00 3 $18,252.00
Total People 15 16 17
Total Payroll $251,150.00 $290,109.00 $366,630.00
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8.0 Financial Plans
Our forecasts show Confections by Design as a profitable organization by the end of year three.
Once we implement our marketing plan our customer base will slowly increase throughout the first year
and have a significant increase during the second year. Our sales, net income, and cash flow will
increase accordingly.
8.1 Assumptions
The first year will be slow as we build our name and customer base. Year two will have a lot of
growth as we continue to build our customer base and create customer loyalty. Year three will have
steady growth as we do not want to grow too big too fast. We pride ourselves as being close to home and
having a family sense in our company. We will continue to grow steady throughout the years and bring
satisfaction not only to our guests but to our staff members as well.
8.2 Forecasted Sales
Our forecasted sales for the first three years show a steady increase in our revenue before
operating expenses are applied.
Projected Sales Forecast
Year 1 Year 2 Year 3
Café Covers 33800 40560 45630
Average Check Rate $9.56 $11.47 $12.91
Café Revenue $323,128.00 $465,304.32 $588,900.78
Catered Covers 7800 9360 10530
Average Catered Check Rate $27.56 $33.07 $37.21
Catered Revenue $214,968.00 $309,553.92 $391,779.18
Total Revenue $538,096.00 $774,858.24 $980,679.96
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8.3 Forecasted Profit and Loss
Once our expenses are applied to our total revenue throughout the year, the net income reflects a
huge growth during year two compared to our first year in production. During our third year we will still see
growth but not as much as during the second year as we continue to build customer loyalty and create a
brand name for our company within the community.
Projected Profit and Loss
Year 2013 Year 2014 Year 2015
Revenue $538,096.00 $774,858.24 $980,679.96
Operating Expenses
Payroll $241,470.00 $278,531.40 $350,898.24
Employee Benefits $20,600.00 $23,407.60 $28,471.76
Taxes and FICA $7,210.00 $8,192.66 $9,965.12
Marketing $18,833.36 $27,120.04 $34,323.80
Utilities $8,071.44 $11,622.87 $14,710.20
Insurance $2,000.00 $2,000.00 $2,000.00
Equipment Loan $26,603.76 $26,603.76 $26,603.76
Rent Payment $32,640.00 $32,640.00 $32,640.00
Total Operating Expenses $357,428.56 $410,118.33 $499,612.87
Depreciation $13,735.87 $12,980.39 $12,266.47
Cost of Sales $134,524.00 $193,714.56 $245,169.99
Total Other Expenses $148,259.87 $206,694.95 $257,436.46
Total Expenses $505,688.43 $616,813.28 $757,049.33
Net Profit $32,407.58 $158,044.96 $223,630.63
Net Profit/Sales 6% 20% 23%
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8.4 Break-even Analysis
Our estimated monthly fixed costs during our first year in business are $7,577.49 and produce an
average break-even point of $40,893.22 a month. Our break-even point is well within our reach as we
compare it to our projected sales forecast. As we offer our employees a raise each year, our fixed costs
increase slightly with employee benefits.
Break Even Analysis
Year 2013 Year 2014 Year 2015
Monthly Break Even Revenue $42,140.70 $51,401.11 $63,087.44
Estimated Monthly Fixed Costs $7,964.97 $8,135.98 $8,498.50
Average Contribution Margin 19% 16% 13%
Average Variable Cost Percent 81% 84% 87%
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8.5 Forecasted Cash Flow
As Confections by Design increases our customer base, our cash flow will increase throughout
the years. Although our cash flow will not increase steadily, it will fluctuate throughout the year as we
experience slower periods of customers in the summer months. Many families go away for vacations
throughout the summer and visit family and friends. Holidays will have a huge impact on our business as
well as end of the year Holiday parties and school graduations.
Projected Cash Flow
Year 2013 Year 2014 Year 2015
Cash Received $0.00 $32,407.58 $190,452.53
Cash Sales $538,096.00 $774,858.24 $980,679.96
Subtotal Cash from Operations $538,096.00 $807,265.82 $1,171,132.49
Additional Cash Received
Sales Tax, VAT, HST/GST Received $26,904.80 $40,363.29 $58,556.62
New Current Borrowing $25,000.00 $0.00 $0.00
New Investment Received $0.00 $0.00 $0.00
Total Cash Received $590,000.80 $847,629.11 $1,229,689.12
Expenditures
Cash Spending $357,428.56 $410,118.33 $499,612.87
Bill Payments $134,524.00 $193,714.56 $245,169.99
Depreciation $13,735.87 $12,980.39 $12,266.47
Subtotal Spent on Operations $505,688.43 $616,813.28 $757,049.33
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $26,904.80 $40,363.29 $58,556.62
Other Liabilities Principal Repayment $25,000.00 $0.00 $0.00
Subtotal Cash Spent $51,904.80 $40,363.29 $58,556.62
Total Cash Spent $557,593.23 $657,176.58 $815,605.96
Net Cash Flow $32,407.58 $190,452.53 $414,083.16
Cash Balance $32,407.58 $190,452.53 $414,083.16
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8.6 Forecasted Balance Sheet
Confections by Design will have a good balance between assets, liabilities, and equity. Our
forecasted balance sheet for the first three years is displayed below.
Projected Balance Sheet
Year End
2013Year End
2014Year End
2015
Assets
Current
Cash $32,407.58 $190,452.53 $414,083.16
Inventory $32,696.64 $62,777.55 $120,532.89
Accounts Receivable $397,925.94 $394,403.11 $284,782.54
Total Current Assets $463,030.16 $647,633.19 $819,398.59
Noncurrent
Furniture $6,685.00 $6,685.00 $6,685.00
Equipment $236,007.14 $223,026.74 $210,760.27
Prepaid Insurance $2,000.00 $2,000.00 $2,000.00
Total Noncurrent Assets $244,692.14 $231,711.74 $219,445.27
Total Assets $707,722.29 $879,344.93 $1,038,843.86
Liabilities
Current
Accounts Payable $16,348.32 $31,388.77 $60,266.45
Wages $241,470.00 $278,531.40 $350,898.24
Utilities $8,071.44 $11,622.87 $14,710.20
Rent Payment $32,640.00 $32,640.00 $32,640.00
Current Portion LT Debt $26,603.76 $26,603.76 $26,603.76
Total Current Liabilities $325,133.52 $380,786.81 $485,118.65
Noncurrent
Loan Payable $239,152.72 $230,181.19 $220,513.17
Less Current Portion Due $8,971.53 $9,668.02 $10,418.58
Total Noncurrent Liabilities $230,181.19 $220,513.17 $210,094.59
Total Liabilities $555,314.71 $601,299.98 $695,213.24
Equity
Owner's Capital $120,000.00 $120,000.00 $120,000.00
Retained Earnings $32,407.58 $158,044.96 $223,630.63
Total Equity $152,407.58 $278,044.96 $343,630.63
Total Liabilities and Equity $707,722.29 $879,344.93 $1,038,843.86
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