CHEESECAKE DREAM

Özlem BolatFerhan Ercengiz

INTRODUCTİON About Cheesecake Dream Investment Opportunity Vision Mision Prices Value Proposition Business Model Competitive Analysis Product Comparison Market Size Market Assessment Café Market Swot Analysis Competition Expected Market Share Market Segmentation Survey Sales Process Organizational Chart Gantt Chart Income Table Cash Flow Exit Strategy

CHEESECAKE DREAM CheeseCake Dream is a café that serves

delicious desserts and is specialized on cheesecakes. The targeted segment is high/middle level families, students, young adults, working people and anyone who needs to relax and have joy.

INVESTMENT OPPORTUNİTY Cheesecake Dream offers 20% equity

share of its business to a partner for 0.4M TL.

The investment in Cheesecake Dream expected to have a profit potential of 4.8M TL (NPV) or in other words 12 times of its value in 5 years. This will correspond to 1208% at the NPV or annual ROI of 187%

MİSSİON We want to satisfy every single

customer that arrives to our cafe by providing special desserts and cozy environment.

VİSİON In 5 years we expect to open 5 stores

and increase our brand value to 25M TL.

PRİCES Cheesecakes – 8-15 TL Cakes – 7-10 TL Specialities – 2-15 TL Ice Cream Specials – 8-15 TL Milkshakes – 10-15 TL Hot Drinks – 4-10 TL Iced and Frozen Drinks – 8-13 TL Soft Drinks – 4-8 TL

VALUE PROPOSİTİON Customers will get the best quality of

desserts in a relaxing and enjoyable environment. They will feel special.

BUSİNESS MODEL Our business model is “service model”.

In Cheesecake Dream, we serve desserts, hot&cold beverages.

COMPETİTİVE ANALYSIS There are lots of Coffee Stores,

Traditional Cafes or Boutique Cafes that serve cheesecakes, desserts and coffee.

However we want to differentiate in the market with our special recipe cheesecakes and elegant environment.

There are some cafe's which have the similar environment but do not have special recipe cheesecakes. So we hold a niche position in cafe&dessert market.

PRODUCT COMPARISONWhen compared

to.. Advantages Disadvantages

Coffee Stores (Sbucks, Nero..)

* Specialized products* High quality service * Elegant environment

* Higher prices* Few locations

Traditional Cafes (Mado, Özsüt,

Saray..)

* Specialized products* Elegant environment

* Higher prices* Few locations

Boutique Cafes * Differentiated products -

MARKET SIZE

Cafe & Restaurant Sector in Turkey

Total Cafe & Restaurant market size for 2011 13.6 billion TL

İstanbul Cafe & Restaurant market size 7.3 billion TL

Total Cafe market size 2.7 billion TL

İstanbul Cafe market size 1.46 billion TL

Nişantaşı Cafe & Restaurant market size 192 M TL

Nişantaşı Cafe market size (Target) 38.4 M TL

Our targetted share of market size in Nişantaşı

2 M TL

• Türkiye Gıda ve İçecek Sanayi Dernekleri Federasyonu – 2011 raporu

MARKET ASSESSMENT Demand of new tastes in dessert

market. Desire of comfort and relaxation in the

stressful city. Youth’s need for trendy places.

CAFE MARKET Cafe market in Turkey is expanding and

dynamic.

There are many cafes and many more are being opened. Customers’ interest in cheesecake is increasing by time.

Creative approaches can contribute to the market and new strategies can attract more customers.

Cheesecake Dream is trying to step forward among its competitors by introducing unique tastes.

SWOT ANALYSISSTRENGTHS:

- Special recipies- Elegant and cozy environment- Growing market- High service quality

WEAKNESSES:

- Lack of extensive market know-how

- High price range- Lack of advertisement- Risk of unsustainable brand

loyalty- Difficulty of finding exclusive

chefs

OPPORTUNITIES:

- Increasing demand on different tastes

- Being in a dynamic city- Being located in elite territory

THREATS:

- High competition- Threat of new entrants

EXPECTED MARKET SHARE In 2016, Cheescake Dream aims to

reach 900 customers per day in five stores. Yearly revenue will be 18 - 22M TL.

Cheesecake Dream will have the market value of 24 - 25M TL in 2016

MARKET SEGMENTATION

SECTOR Customer well funded?Compelling reason to

buy?

Students NO NO

Working Professionals YES NO

Young Adults YES / NO NO

A Class Families YES NO

Middle Class Families NO NO

SURVEY

SURVEY

1 2 3 4 5 6 7 8 9 10 NOT SURE

0

1

2

3

4

5

6

1

2 2

3

4

5

4

1 1

2

Would you like to try new tastes?

1 2 3 4 5 6 7 8 9 10 NOT SURE

0

1

2

3

4

5

6

7

1 1

3

5

6 6

2

1

Do you think that our prices are sensible?

Only 5 people voted below 5, meaning that most people are open to taste different desserts.

Most of the people find prices sensible.

SURVEY

People would like to visit Cheesecake Dream frequently.

High percent of attendees are willing to advice Cheesecake Dream to others.

Small part of the attendees do not find Cheesecake Dream attractive enough to tell others.

1 2 3 4 5 6 7 8 9 10 NOT SURE

0

1

2

3

4

5

6

7

1

3

4

6

4

3

1

3

Would you come to our café frequently?

1 2 3 4 5 6 7 8 9 10 NOT SURE

0

1

2

3

4

5

6

3 3

5 5

3

2

4

How strong would you recomment our café?

SURVEY According to 5th question:

Customers look for lower pricesBrand value is important to themThere is some hesitation to try unknown

tastes

SALES PROCESS

ORGANİZATİONAL CHARTFerhan Ercengiz

Özlem BolatCo-founders & Owners

Özlem BolatR & D Manager

Özlem BolatSupply Chain &

Logistics Manager

Özlem BolatSales & Marketing

Manager

Ferhan ErcengizFinancial Operations

Manager

Ferhan ErcengizPurchasing Manager

Ferhan ErcengizOperations &

Personnel Manager

John FernandezMaster Chef

Hasan KayaChef

Ahmet BaltaWaiter

Neşe KuralWaitress

Leyla BozanWaitress

Ayşe KurtWaitress

Bilal KaraCleaning Staff

Mehmet TaşCleaning Staff

John FernandezMaster Chef

Hasan KayaChef

GANTT CHART

INCOME TABLE (TL)2011 2012 2013 2014 2015

           

Total Net Sales 2.345.1253.117.206

3.739.450

4.905.274

6.387.849

Cost of Goods Sold 770.150 927.0481.460.275

1.752.330

2.262.090

Gross Profit 1.574.9752.190.158

2.279.174

3.152.943

4.125.759

General Cost 1.058.4801.058.480

1.058.480

1.058.480

1.058.480

Replacement Cost 0 0 0 0 0

Operating Profit (EBITDA) 516.4951.131.678

1.220.694

2.094.463

3.067.279

Depreciation -45.000 -50.000 -55.000 -60.000 -65.000

Earnings Before Interest and Tax (EBIT) 471.4951.081.678

1.165.694

2.034.463

3.002.279

Financial Income/Expense 0 -19.671 162.270 326.876 616.237

Profit Before Tax 471.4951.062.008

1.327.965

2.361.339

3.618.516

Total Tax 94.299 212.402 265.593 472.268 723.703

Profit After Tax 377.196 849.6061.062.372

1.889.072

2.894.813

           

Depreciation 44.000 48.000 52.000 56.000 60.000

(Gross Profit)/Net Sales 67% 70% 61% 64% 65%

Profit Before Tax/Net Sales 20% 34% 36% 48% 57%

(Profit Before Tax+Depr.)/Net Sales 22% 36% 37% 49% 58%

CASH FLOW (TL)2011 2012 2013 2014 2015

EBITDA 516.495 1.131.678 1.220.694 2.094.463 3.067.279

Tax 94.299 212.402 265.593 472.268 723.703

Bank Loan 200.000 0 0 0 0

Fixed Investments 20.000 20.000 20.000 20.000 20.000

Free Cash Flow 202.196 879.606 1.097.372 1.929.072 2.939.813

Terminal Value        18.373.829

Discount Rate 1,25 1,25 1,25 1,25 1,25

Cumulated Discount Rate 1,12 1,40 1,75 2,18 2,73

Discounted Cash Flow 180.850 629.395 628.172 883.412 1.077.022

Discounted (NPV) Cumulated Cash Flow 180.850 810.245 1.438.417 2.321.829 3.398.851

NPV OF ACCUMULATED CASH (TL) 3.398.851

NPV OF TERMINAL VALUE (TL) 6.731.388

TOTAL NPV (TL) 10.130.239

DISCOUNT RATE (%) 25

EXİT STRATEGY The investor is offered three options for

exit. The first and preferable one is for the investor to buy Cheesecake Dream at the value calculated above. The second option is an IPO in İMKB, and the third one is to purchase the investor’s 20% shares by Cheesecake Dream at the book value of Cheesecake Dream.

THANK YOU!