strategy deck
DESCRIPTION
Little Shanty Restaurant Strategy DeckTRANSCRIPT
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Some Days You Feel Like Angus&
Other Days You Feel Like Patty
Indulgent
Healthy
Angus Patty
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AngusCheeseburgersChicken Wings
SodaShakes
French FriesOnion RingsIce Cream
Deep Fried Oreos & Twinkies
isIndulgent
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Patty
SaladsChicken Sandwiches
Veggie BurgerGrilled Vegetable Sandwich
Bottled WaterDiet Soda
Skips DessertShares an All Natural Cheesecake
Health Conscious
is
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Although She’s Ben Known to Indulge From Time to Time
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At Most Fast Casual Restaurants Paty is
an Afterthought
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Even Though
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She’s the Decision Maker
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That’s Crazy
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That’s Why We Built
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SaladsGrilled
VegetableSandwich
Veggie Burger
Grilled Chicken
Sandwiches & Wraps
Turkey Burgers,
BLT
Burgers, Grilled Cheese, Fish Sandwich,Hot Dogs
Wings
Fries, Chips & Rings
IndulgentShakes,
Floats, Ice Cream,
Desserts
Healthy
Healthy Indulgent Continuum
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Market Space
Better Burger Healthy Fast Casual
Traditional Fast Food Fast Ethnic
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Market SpaceBetter Burger
SmashburgerShake ShackFive Guys
Bobby Flay’s Burger PalaceFuddruckers
In n Out BurgerWhataburger
Cheeburger Cheeburger
Healthy Fast CasualPanera BreadPret a Manger
SubwaySalad Works
CosiAu Bon PainWhich Wich
Potbelly
Traditional Fast FoodMcDonald’s
Wendy’sBurger King
SonicKFC
DominosPapa John’sPizza Hut
Fast EthnicChipotleQ’doba
Panda ExpressMoe’s Southwest Grill
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Little Shanty Creates and Exploits
New Market Space
Fresh Casual
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Fresh Casual
• Hybrid Quick Service & Table Service
• Fresh Ingredients
• Broad Menu Selection with Frequent Menu Updates
• Professionally Trained Chefs
• Appeals to Broad Cross Section of Customers
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Fresh Casual
• Bi-Polar diners
• Both health conscious & indulgent
• Healthy options are not an afterthought they are a focus
• Recognition that family and group dining decisions are largely driven by women
• Increasing consumer awareness of food allergies
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Why Fresh Casual• Fast casual dining industry in US is $27
billion per annum
• Industry growth rate is 8.4%
• Better burger growth rate > 40%
• 50% of Americans have at least 1 burger per week
• Healthy casual growing at a similar rate
• Busy Lifestyles leading Americans to eat out more frequently
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Convergence of Trends Ideal for Little Shanty
Better BurgerH
ealth
y Fa
st C
asua
lIncreased Frequency
of Dining Out
Des
ign
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Customer Profile
• Suburban/Exurban/Urban
• Single, DINK, Multiple Children
• Higher Income
• Extremely Busy
• Wants to Eat Fresh Food
• Aware of Current Food Trends
• Conscious of Health & Wellness
• Intelligent Indulgence When Dining
• Will Spend More for Quality Ingredients
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Four Cornerstone Principles• We will delight our guests by serving fresh delicious food
in a beautifully designed & maintained environment every time they visit one of our stores.
• We endow our partners with responsibility by giving them a voice into the operation of our business and opportunity to share in our success.
• We will generate a consistently superior financial return for our financial stakeholders enabling them to invest for the continued long-term success of our business.
• We will give back to the communities in which we work and live.
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Design Matters
• Apple
• Ralph Lauren
• Warby Parker
• Prove that design driven companies can grow faster in traditional moribund industries
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Where Would You Rather Eat?
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Five GuysFluorescent Lighting
Formica TablesFast Food FeelingCrowded Tables
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SmashburgerRed Color
Harsh LightingCookie Cutter Franchise Layout
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Little ShantyWarm Colors
Stadium KitchenFamily Style Seating
Soft LightingEclectic Tables & Chairs
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Giving Back
• Buy one Give One
• We donate to the Community FoodBank of NJ every time a guest buys a meal combination
• To date over 13,000 meals donated
• Creates a golden halo for the brand
• Anchors the brand to the local community
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Social Media & Loyalty
• Extremely Active on Blog, Facebook, Twitter and Foursquare.
• 750 Facebook Followers
• Perka Loyalty App Launched Spring 2013 over 200 subscribers.
• More than 2,600 customer visits
• 400 email list subscribers
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We are Creating a Rabidly Loyal Fan Base & Executing When the Guests Visit our Store
• For me and my wife, everything about this place is outstanding. Better-than-Five-Guys burgers, the fries and chips are to die for, outstanding shakes, even the interior design is great. The service is always good. I love this place and REALLY want them to succeed.
• Awesome. Food is great and atmosphere is inviting (love the industrial look and feel) Grandma's fries are simply spectacular! Staff is very friendly and welcoming, especially the one man (i believe he was the owner?)I really like the idea of ordering at the counter and then sitting down and having the food brought to you, wasn't sure if i should have left a tip... so i did.. lol.
I definitely recommend this place, and definitely get the fries when you go!
• I got take out at the Little Shanty last night and let me tell you I am definitely pleased with my meal!I ordered two sets of three sliders and a burger for me and my two kids. Everything was cooked to perfection and the burgers had a nice spice-flavor to them. The brioche buns were fresh and delicious. The thing that I was most impressed by was the freshness of the toppings: I got lettuce, tomato, onion and pickles on my burger and they were all super fresh- im talking not even a spot on the lettuce!Overall a great meal and next time i'll try to eat in- but i'll definitely be back!
• I will be meeting this burger again- either in my dreams or during my next visit. I picked up the Livingsocial for this place that gave a friend and me a burger, drink, and fries of our choice. Some of the really cool perks of this place- unlimited toppings that include avocado and jalapenos, a burger bill of rights and Tabasco at every table, and above all a partnership with the Food Bank of NJ
• “The food is delicious and bursting with original combinations of flavors. Little Shanty is decidedly not fast food. It is a welcome addition to an area lacking good food choices. I’ve eaten here twice and both times the food was excellent. The fries are the best I have ever eaten.”
• “Hey moms I’d like to send a special shout out to Little Shanty, a new healthy alternative to a local burger joint in Warren. They are doing amazing things down there with homemade/handmade FRESH, food. Many healthy food options, a fun environment with a philanthropic mission.”
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Customer Feedback
Living Social
Groupon
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restaurant.com survey resultsHow would you rate the quality of the food? AVERAGE SCORE: 4.63 out of 5
1 (Poor)
0
2 (Fair)
0
3 (Neutral)
0
4 (Good)
10
5 (Excellent)
17
How would you rate your overall dining experience at Little Shanty?AVERAGE SCORE: 4.62 out of 5
1 (Poor)
0
2 (Fair)
0
3 (Neutral)
1
4 (Good)
8
5 (Excellent)
17
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Growth Initiatives• Delivery -- slated to begin October 2013
• Breakfast -- menu development in progress now
• Little Shanty Kiosk at TD Bank Park Home of Somerset Patriots (Independent Minor League Baseball Team) Summer 2014
• 2012 Attendance over 525,000
• Mobile Food Truck for corporate catering & events
• Basking Ridge Little League Snack Shack -- 2013 Gross Revenue 100m
• Expansion of Live Music Programming
• Merchandising (T-Shirts, Toys, Hats, BBQ Rub & Sauce)
• Packaged Sales of Potato Chips, Guacamole, Mango Salsa, Bruschetta & Other Proprietary Recipes
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Operational Levers
Food Costs
Labor Costs
Operating Costs
Identify unnecessary expenses & improve process control to
drive operating profit
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Financial Outlook
• Gross Margin Steadily Improving
• Selectively Increased Prices
• Working with Vendors to Reduce Food Costs
• Eliminated several positions
• Reduced working hours for numerous employees
• Performing energy audit to reduce utility costs
• Eliminated free employee meals
• Eliminated costly promotions
• Monthly Breakeven reduced to $54,000
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Tactical & Strategic Challenges
• Tactical
• Drive Top Line Growth
• Improve Gross Margins
• Improve Internal Controls
• Reduce Labor Costs
• Reduce Promotions and Discounts
• Strategic
• Find Source of Capital
• Market Brand to Potential Investors
• Identify Secondary Locations
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Why Warren?
• High Per Capita Income
• Mix of Commercial & Residential
• Few Quick Service Restaurants
• High Traffic Location Between 78 & 22
• Small Footprint
• Comparatively Low Rent
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Projected Financials at Scale
• Gross Margin 70-72%
• Labor 25%
• Operating Expenses 28%
• EBITDA = 19%
• At scale the Warren Store should reach $950,000 in sales
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Conclusion
• Exploiting New Market Space
• Brand Concept Resonates with Guests
• Food Resonates with Guests
• Intentionally limited risk by choosing Warren location
• Executing quality product & quality service delivery