13-05-2014, 04:29 PM
Rutabaga Sweets
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Executive Summary
Rutabaga Sweets is a dessert bar and bakery located in the Business Improvement District (BID) of Washington DC. We can loosely be described as a quick-service restaurant where customers sit around a bar and watch their desserts being made. The show, as well as the dessert, is our main selling point.
Rutabaga Sweets will hold true to its vision of being a new concept with an old fashioned feel in order to become a favorite spot for DC natives. As the reported national leader in money spent in restaurants, Washington DC is an optimal location for launching a new restaurant concept. Rutabaga Sweets also hopes to become a destination for the thousands of tourists, both American and foreign, who visit DC every year.
We plan to manipulate our location in the Business Improvement District to our utmost advantage. Both tax incentives and high traffic due to the MCI Center will give us an edge as a new business. As the BID fills up with new businesses over the next few years Rutabaga Sweets will receive an added boost of increased traffic. Therefore, we are aggressively planning for a 50% increase in sales the second year of business.
By creating a new niche in the restaurant industry, Rutabaga Sweets will increase sales by more than $145,000 over three years while maintaining a gross margin of 80%. Through a philosophy of "nothing but the best" regarding both product and service, Rutabaga Sweets will establish itself as an exceptional dessert bar in Washington DC. We also will gain a competitive advantage in take out and catered desserts.
This plan outlines our company concept, philosophy and forecasted financials. Rutabaga Sweets hopes to find seed money of $300,000 to launch our business in June of this year.
Mission
Rutabaga Sweets is a hospitality company dedicated to providing high-quality desserts in a comfortable atmosphere for clients who seek a fun "gourmet" experience outside restaurants. We intend to make enough profit to generate a fair return for our investors and to finance continued growth and development in quality products. We also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work.
Company Ownership
Rutabaga Sweets is a sole proprietorship seeking seed money. Incorporation will be decided at a later date as investors are secured.
Start-up Summary
Our start-up costs come to $300,000 which is mostly kitchen equipment, store furnishings and construction, and starting inventory expenses associated with opening our first store. The start-up costs are to be financed by outside investment. The assumptions are shown in Table 1 and Illustration 2.
Products and Services
Rutabaga Sweets sells gourmet desserts coupled with exceptional customer service in a comforting atmosphere. Customers can dine-in and watch the chef create their dessert. We also offer carry-out to prepare our desserts at home or have a special cake for a celebration. And every month customers can join in the fun and take a cooking class taught by a Cordon Bleu trained chef.
We will also offer special promotions such as After School Cookie Club. Moms will be encouraged to bring in their children for milk and cookies they help prepare! Or moms can come in with friends for some relaxing time away during our Tea Time. And to promote Rutabaga Sweets as a choice for celebrating, we will offer a large table that can be reserved for parties.
Market Analysis Summary
Rutabaga Sweets focuses on local markets, with a special focus on restaurant and ice cream shop customers. Washington DC provides an excellent climate for our dessert bar as households there spend more money dining out than anywhere else in the country.
Market Segmentation
Our market is divided into four different psychographics: Comfort Creatures, Celebrators, Soccer Moms, and Gourmet Wanna-bes. They represent groups of people sharing similar behavior patterns and reasons for patronizing Rutabaga Sweets.
Comfort Creatures are mainly white collar workers who are driven by success and prestige yet miss homemade comfort foods of their childhood. They may stop in on their own or bring clients in for a gourmet dessert experience.
Celebrators are just that - people celebrating special occasions. Birthday, anniversary, graduation, valentine's day, etc., families and loved ones will gather at Rutabaga Sweets over sumptuous desserts and a festive atmosphere.
Soccer Moms actually encompasses all family members. Rutabaga Sweets is a gathering place where families are welcome and feel comfortable. "Moms" can come in for after school milk and cookies with their children and relax while we pamper the little ones. Or they can meet up with friends for our Tea Time - a little civilized time stolen in the midst of a busy day.
Gourmet Wanna-bes watch the Food Network and easily spend $50 for the latest cookbook. They'll be the adventuresome diners at Rutabaga Sweets, as well as the first to sign up for our cooking classes.
Competition and Buying Patterns
Although Rutabaga Sweets is opening up a new niche in the restaurant industry, there is no doubt that we are competing with a variety of similar businesses. We need to compete against the ideas that dessert is something that only follows a special dinner and needn't be any better than a frozen cake. We want every day to be a reason to celebrate. And being able to watch your gourmet dessert be prepared by a chef is a treat that appeals to everyone.
While price may be a factor when competing against Ice Cream and Coffee Shops, these same consumers who are willing to pay five dollars for a latte or a scoop of ice cream are already conscious of a better quality product. We believe they will be equally as willing to spend a little extra for an extraordinary dessert in a warm and friendly setting.
The comfort factor also plays an important role in consumer decisions about sweets. Both the atmosphere and staff of Rutabaga Sweets excel at warm & friendly. And the menu will reflect "comfort food" desserts as opposed to intimidating desserts that resemble architectural collosi. We will use the highest quality products; sometimes paring the ordinary with the exotic, but we will always present our desserts in a unintimidating manner.