taking root nyu final presentation
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TAKING ROOT
Valeriya Greene | Gregory Cox# Customers Interviewed in Last Day: 17# Customers Interviewed Total: 62• 9 Consumers | 39 Restaurants| 2 Waste Services | 3 Advertisers | 8 Local Farms / Compost Sites
Helping restaurants who want to be sustainable reach that goal by making composting simple and
cost-effective.
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Day 1: Business Model Canvas
Key a
Key a
Key a Key a
Key a Key a
Key a
Key a
Key a
Key Partners Key Activities Value Propositions Customer Relationships
Key Resources Channels
Cost Structure Revenue Streams
Customer Segments
Waste Management Companies
Green markets
MintScraps
Develop customer relationships
Organic waste consulting Website / App Development Marketing & Create
Awareness Build Brand
Restaurant Composting Consultant
Relationship with Waste Management Companies
Financing
Simplify and streamline the composting process for restaurants
Reduce cost of waste management
Acquire consumers who care about environment through branding and awareness
Consulting Measurement of % waste
reduction and $ cost reduction
Build brand
Website Direct Selling Green Markets
Restaurants in NYC
Website & App development Salaries of Consultants Marketing & PR Campaigns Economies of Scope for consulting
Subscription services for ongoing support and branding Upfront fee for initial end-to-end process – based on % of Cost Savings
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Day 1: Here’s What We Thought
1. Composting costs restaurants less than trash collection
2. Restaurants find composting to be complex, but we can make it simple
3. Consumers care about how restaurants dispose of their waste
Restaurant Composts
We Simplify Compost Process
Restaurant Reduces Costs
Attracts New Customers
VALUE PROPOSITION:
HYPOTHESES:
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“It’s nice to know that this restaurant composts, but that’s not why I come here”
– Consumer
“Composting actually increases my costs. Composts bags cost more than $1 each!”
– Manager, Ekxi Restaurant
“Our restaurant composts because our founders feel strongly about it. We consider the increased cost a cost of doing business”
– Restaurants that compost
“We don’t have the space to compost. It’s too hard. Our customers don’t care”
– Restaurants that do not compost
Day 2 – 4: Here’s What We Learned
LEARNING: IMPLICATION:
Branding restaurants that compost won’t bring in new customers
Composting won’t reduce customer costs
Cost of composting is not the key pain point for restaurants that compost
Hard to convince restaurants to begin composting unless part of values
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Day 2 – 4: Here’s What We Learned
“Any restaurant who's not composting is too lazy to find out how easy it is.”
– Restaurant that composts
“I probably should be composting. I already source locally. This would be a logical next step. Who can cart it away?.... It costs the same?”
– Farm to Table Restaurant
“I charge the restaurant the same $/ton to cart the compost away, but it costs me $85/ton to send compost to Delaware and only $59/ton to send it to the landfills”
– Action Environment Services
“How can we say that we are being sustainable if our compost is being sent to Delaware. There has to be a better way”
– Restaurant that composts
LEARNING: IMPLICATION:
•Lack of nearby composting infrastructure drives the high cost of composting
•Why isn’t there a closer facility?
Is there a way to process our compost locally?
•Target customer segment expands to include farm to table restaurants
•Education is key
Restaurants that compost today don’t need our help to simplify process
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What Type of Restaurant Waste?
Recyclables (Non-Compostable
Plastics / Paper / Gloves)
Organics
*Compostable Supplies (forks,
bowls)
Food Scraps **Meat, Bones,
Dairy
Fruits, Vegetables, Coffee
Rest (including glass)
Day 2 – 4: Learned the Food Waste Decision Journey
“Action” Picks up, Consolidates &
Trucks to Transfer Station
White Bag / Bin
Black Bag/Bin
Green Bag / Bin
“Action” Picks up, Sorts &
Sells
“Action” Picks up &
Consolidates
Action drops off at Delaware Composting
Facility
Cost: • Gas for Pickup• LaborRevenue:• $/ton of waste• Sell Recyclables to
China
Cost: • Gas for drive &
additional emissions• Labor• Tipping Fee < Tipping
Fee Landfill
Top Soil created and facility sells to Landscapers
Revenue:• Top Soil SalesCosts:• Fixed Costs of
Facility• Processing Costs
Cost: • Gas for Pickup• LaborRevenue:• $/ton of food waste
= $/ton of trash
Cost: • Gas for Pickup • Labor• Tipping Fee to
LandfillRevenue:• $/ton of waste
*Special Considerations:• Easier from process & contamination
standpoint• Need Industrial Composting Site to
decompose• Cost more than standard utensils, bowls
**Special Considerations:• High Quality fertilizer is made using
Fruits, Vegetables, Coffee beans, Breads – not Meat / Dairy
• However, additional sorting creates time and efficiency issues
Key Questions:(1) Why isn’t there a facility built closer that accepts
restaurant waste?(2) Will restaurants further sort their waste to gain the value
of a lower cost / $ ton and the positive social feeling that its being processed locally and sold to local farms?
(3) Where do local organic farms buy their fertilizer? Will locally made fertilizer cost less than what they currently buy?
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Day 5 Business Model Canvas
Key a
Key a
Key a Key a
Key a Key a
Key a
Key a
Key a
Key Partners Key Activities Value Propositions Customer Relationships
Key Resources Channels
Cost Structure Revenue Streams
Customer Segments
Waste Management Companies
Green markets
FoodTech Companies: MintScraps / LeanPath
NYC Department of Sanitation
Organic Farms
Website Development Marketing for both
restaurants Build Brand
Access to composting farms.
Reduce cost of waste management through ability to compost locally at small-scale farms and composters.
Connections to composters.
Website Direct Selling
Green Markets
NYC Restaurants who do compost and can do it better
NYC Restaurants that are sustainable but do not compost.
Decisionmakers are restaurant owners, with input from chef, manager, and other staff.
Website development Marketing & PR Campaigns Salaries
Per compost royalty fee
Receive Compost to support farm needs.
Connection to free compost and revenue
Organic farms and small-scale composters in NYC who need
fertilizer and believe in availability of composting.
WebsiteDirect Selling
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Total Market Size
• 31,427 restaurants in NYC on Yelp
• 5,519 tagged “organic”
• Est 500 currently composting
• Average garbage in a year: 75 tons
•Average compost for high-quality fertilizer: 22.5 tons
•Average cost per lb: .05
•Royalty for Taking Root: .005
Realistic Market: $112,500
Market Size
To
Total Market: $7 million
Total Potential Market:$1.2 million
Realistic Market:$112,500
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Total Market Size
• 247 farms and composting facilities within a 4 hour drive of New York city, average size 211 acres.
•1 restaurant serves one acre of farm
• 600 community gardens, most serviced by neighborhood composting
•From customer discovery with farms, few have the ability to compost on-site that exceeds farm’s own production of compostable waste.
Realistic Market: 24
Market Size
To
Total Market: 847 composting entities
Total Potential Market:247
Realistic Market:24
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Some Interesting Problems to Investigate
“Our biggest problem is that gloves aren’t compostable”
“Compost bags cost more than $1 each”
“We can’t track what we throw out well”
“Compost that is made from fruits and vegetables realizes a larger price”
“Local sourcing is not easy. We worry about the weather constantly”
“We want to compost in Linden, but there is no one reliable”
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Organic compost retail
Manufacturing
Platform
What do we do next
• Continue customer discovery on what customer problems are Must Haves
• Research and impact regulations and laws around composting. Preparation for a mandate by 2016 will mean a lot more restaurants who must compost. Decreasing the number of regulations around ability to compost will increase appetite for compost.
• Research areas of compost funding for NYC. Preparation for a mandate by 2016 will mean a lot more restaurants who must compost
• Consider non-profit options that bring in funding from stakeholders interested in reducing the 1.2 million tons of food waste going to New York and New Jeresey landfills.