St. John’s UniversityMGT 640 – Entrepreneurship

Members:John de JesusSean RokerEdmund LeeChristian Ferdinand

Agenda• Introduce Management Team• Company Overview• The Concept• The Opportunity• Target Markets• Competition• Business Model• Marketing Strategy• Critical Risks and Success Factors• Financial Projections• Proposed Ownership and Offering• Summary• Questions

Management Team - FoundersPresident

John de Jesus

Chief Financial OfficerEdmund Lee

Chief Marketing OfficerSean Roker

Chief Information OfficerChristian Ferdinand

Company Overview• Five Star Cuisine provides singles and young families the

non-perishable ingredients to bring home a fun and healthy cooking experience.

• Goals• Make cooking an enjoyable

experience: Interactive Educational Convenient Most importantly: FUN!

The Concept• Our products:

1. Package A Contains three recipes

2. Package B Contains five recipes

• Servings sizes of 2 to 4 people

• Apply for design patent for packages

5 Star Tuscan Chicken Pasta

Ingredients Time NeededIncluded:

8 oz whole wheat spaghetti Prep time: 25 min2 cloves garlic Cook time: 20 min1 1/2 teaspoons salt Total time: 45 min1 teaspoon cayenne pepper1/4 cup chopped parsley

Not Included: Directions3 skinless, boneless chicken breast halves3 tbsp olive oil1 1/2 tsp of salt

1. Season chicken with garlic, cayenne pepper, and seasoned salt.2. Heat 2 tablespoons oil and 1 tablespoon butter in a 12-inch skillet over medium heat.3. Add chicken to skillet in two batches and cook 5 to 10 minutes each batch or until internal temperature reaches 165°F. Turn chicken halfway through. Remove chicken from skillet and set as ide.4. Add remaining tablespoon olive oil to skillet. 5. Fill a large pot with lightly salted water and bring to a rolling boil over high heat. Once the water is boiling, s tir in the whole wheat pasta and return to a boil. Cook the pasta 3 to 4 minutes; drain.6. Garnish pasta with chopped pars ley and serve

5 Star Tuscan Chicken Pasta

Ingredients Time NeededIncluded:

8 oz whole wheat spaghetti Prep time: 25 min2 cloves garlic Cook time: 20 min1 1/2 teaspoons salt Total time: 45 min1 teaspoon cayenne pepper1/4 cup chopped parsley

Not Included: Directions3 skinless, boneless chicken breast halves3 tbsp olive oil1 1/2 tsp of salt

1. Season chicken with garlic, cayenne pepper, and seasoned salt.2. Heat 2 tablespoons oil and 1 tablespoon butter in a 12-inch skillet over medium heat.3. Add chicken to skillet in two batches and cook 5 to 10 minutes each batch or until internal temperature reaches 165°F. Turn chicken halfway through. Remove chicken from skillet and set aside.4. Add remaining tablespoon olive oil to skillet. 5. Fill a large pot with lightly salted water and bring to a rolling boil over high heat. Once the water is boiling, stir in the whole wheat pasta and return to a boil. Cook the pasta 3 to 4 minutes; drain.6. Garnish pasta with chopped parsley and serve

The Concept• The experience:

The Opportunity• Industry:

• Seasoning and Dressing Manufacturing

• Market Size:• 600 companies• Annual Sales Revenue: $17 billion • Increasing health conscious population• Growing demand for bolder and exotic

spices Thai, Indian, Mexican, and Korean

• Recent Trends:1. The cooking dilemma: “Lack of time…”2. Too much preparation required for cooking3. Desire for newer and bolder ethnic flavors

Target Markets• Primary Target Market:

• The Millennial Generation (Ages 21 to 35)• Primarily women• Education level: college or higher• New to cooking with desire to improve skills• Demand for organic foods and ethnic flavors• Will become part of secondary market in the

future

• Secondary Target Market: • Small Families (Parents’ Ages 23 to 45)• Have children ages 17 and younger• Household income: $80,000 to $150,000• Looking for quicker ways to prepare meals• Women more likely to be caregivers of the

household

Competitive Matrix

Competitive Advantage

Five Star Cuisine offers a fun educational cooking experience that allows consumers the ability to cook exciting flavorful dishes at home

Business Model• Main headquarters: Henderson, Nevada

• Pricing• Package A - 3 recipes: $12• Package B - 5 recipes: $16

• Manufacturing• Acquire spices from various wholesalers• Supplier for seasoning and spices: Mountain Rose Herbs• Supplier for organic pasta and rice grains: USA Emergency• Potential packaging partners:

• Natureflex• Specialty Packaging• Great Northern Company• Murray Brand Communications

• Operations Cycle

Product Ordering

from Suppliers

Delivery10 - 15 Days

Inspecting and Sorting

1 Day

Packaging1 Day

Ship to Consumers

2 Days

Marketing Strategy• Initial Market: California

• Use low cost sales methods to generate enthusiastic consumer base

• Long-Term Goal: Sell in supermarkets and grocery stores

• Sales Tactics:1. “Word of mouth” 2. E-Commerce

• Company website• Social media , videos, blogs, and

reward/repurchase programs• Amazon

3. TV Infomercials – QVC or HSN4. Farmers’ Markets5. Attend expos and tradeshows

• Marketing and Advertising Budget:

Critical Risks and Success Factors • Consumer Demand

• Challenge: • Building brand awareness• Introducing a new idea

• Proposed Solution: • Use various forms of advertising, social media, and e-commerce• Market and trending analyses

• Competitive Adaptability• Challenge:

• How quickly will competitors react to the venture?• Proposed Solution:

• Emphasis on value: Convenience and experience• Utility and design patents

• Intellectual Property• Utility patent for ingredient distribution machine• Design patent for meal packages• Create barrier to entry for competitors

Financial Projections

Sales Forecast – 3 Year Forecast:

Gross and Operating Margins – 3 Year Forecast:

Management Team - Key Personnel Chief Executive Officer, Nutrition and Culinary Expert

• At least five or more years of experience• Identify market trends and preferences• Develop recipes and ingredient combinations• Networking events and cooking demonstrations

Distribution and Operations Officer• Manufacturing management• Monitor / evaluate overall business needs • Inventory control• Production scheduling and flow• Oversee distribution process

Board of Advisors Sharon Minot, Angel Investor and Entrepreneur

• Owns multiple successful businesses that she developed from the ground

• Prepared to invest $100,000 in Five Star Cuisine

Ka Lee, Angel Investor, Entrepreneur, and Franchisee• 15 years experience in food industry• Popeyes franchisee, and owns and operates two restaurants• Started a company that imports kitchen cabinets• Prepared to invest $100,000 in Five Star Cuisine

Unnamed Industry Expert• Expert in consumer food industry – spice distribution• Former employee of industry competitors or FDA

Clyde Vanel, Patent Lawyer (Non-Voting Member)• Been in patent law industry for two decades• Worked start-ups and Fortune 500 companies

Proposed Ownership and Offering

New Investor(s)35%

Additional Management (2)

12%Investing Advisors (2)

10%

Non-Investing Advisors (2)3%

Founders (4)40%

Sources Uses $100,000 (Founders) $156,500 (Operating Expense) $200,000 (Investors) $131,200 (Salaries) $600,000 (Additional Investors) $ 314,300 Reinvested Back Into Operations

SummaryFaster and easier cooking experience while looking for

ways to eat healthier

Provide consumers with a seamless preparation process for cooking

Include recipes and seasonings for new trends in consumer tastes

Bring out the chef in you!

Questions

Appendices

Schedule - Startup

Schedule – Years 1 to 3

Staffing Schedule

Financial Assumptions

Sales Forecast Detail

Income Statement – Year 1

Income Statement – 3 Year Projection

Cash Flow Statement – Year 1

Cash Flow Statement – 3 Year Projection

Balance Sheet – September 1, 2014 (Opening Day)

Balance Sheet – August 31, 2015 (End of Year 1)