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Fresh & Furious

Group 3 members:

Aashna Patel

Divya Gupta

Grasheyl Sun

Srijita Mattookkaran

Oscar Lee

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1

Introduction of

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1.

Introduction of

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Aashna

As per the current trends we can see that many people are shifting to healthier food options. They are becoming more conscious in terms of consuming meat products both in terms of the environment and due to ethical reasons. Along with that many people are focused on very specific diet plans but due to their busy lives they do not have the time to devote to cooking. This shift has also seen a change in mindset regarding the cost. Healthy food is expensive. People normally prefer online deliveries than going to an actual restaurant but that comes with a price.

Since majority of the people living in a city like New York do not have time to eat freshly prepared food, we thought of a subscription based meal plan service that is affordable and and at the same time delivers fresh food to customers, with numerous choices as per their likes and preferences.

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PERCEPTUAL MAP

More Healthy

Less Healthy

Expensive

Inexpensive

Fresh & Furious

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SWOT ANALYSIS

OPPORTUNITY

Increase in online order & delivery, Expansion, Shift in eating habits

STRENGTH

Localisation, Economical, Flexible, Healthy, Fresh local produce

WEAKNESS

Operating cost, limited meal options

THREAT

Competition, Low Brand Awareness, Weather

Divya

Strengths

Localisation- F&F is highly localised and its foundations are built on the growing needs of our target audience to adopt healthy lifestyle and eating habits. The menu is curated with various healthy yet delicious options.
Economical & Flexible- Our brand is cheaper than its competitors. Additionally, the bundle meal (subscription) concept will help customers to save further. We further provide customers with the freedom to order 10 meals per week. These 10 meals can be distributed however the customer pleases.
Healthy & Fresh Local Produce- F&F serves healthy and exciting food to customers with rapidly changing menu options. Also our USP is to use fresh inventory everyday, thus, ensuring optimum food quality.

Weakness

Operating Cost- Since we use fresh produce, our operating costs are substantially high.
Limited meal options- We provide our customers with 20 food items every week, out of which they can mix and match and make a meal of any food items. We think it might get repetitive for the customers. Therefore, in the initial stages, we want to experiment with this concept and if required, alter it in the future.

Opportunity

Increase in online order & delivery- This decade has seen a major shift in food consumption habits. People now are more likely to order in. Therefore, there has been a massive increase in the number of online orders and delivery.
Expansion- Currently, our brand only has one physical store. In the future, with prior market research, analysis and taking into consideration the opportunity index, we would like to expand to more locations both in and outside NYC
Shift in eating habits- As mentioned before, people are now more health conscious and thus, prefer eating healthy. Our concept will help capitalise on this shift in trend.

Threat

Competition- We receive major competition from other brands using the same concept. The two main competitors are Hello Fresh and Blue Apron.
Low brand awareness- Since, F&F is just starting up, the brand will take some time to make the target audience aware and in turn create brand loyalty.

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Business Model &

Company Overview

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⇢How We Come Up The Name & What It Means

Inspired by the acclaimed movie “Fast & Furious”
Our Brand Value: Natural, Fresh and Efficient
Fresh represents our operational identity
Furious represents our attitude towards organization and productivity

Fresh & Furious

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⇢Location & Why & Delivery Radius

Entire East Side of Manhattan
Up to 96th Street UES before Spanish Harlem
Down to LES Delancey Street before Financial District
Long Island City & Williamsburg (Bedford & Metropolitan)

WHY?

LIC is residential, not that many restaurants
Huge student population
UES-Family population

Our physical store- East Village, St Marks & Avenue A

Trendy, Young & Bustling but Lower rent than other East Side neighborhood

Fresh & Furious

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⇢Business Model & How to generate Money

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Subscription model

Online Order

Offline Walk-in

-monthly fee:

$299

-each meal:

$8 (basic order)

Fresh & Furious

Brick & Mortar model

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⇢Target Audience

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Age:

18-44

Income Status:

low and Middle

Occupation:

Students, People who work in office

Demographics

Fresh & Furious

Psychographics

-enjoy or purse healthy eating style

-want to have a stable meal and supplier

-fast-speed lifestyle

-healthy lifestyle

-affordable food

-multiple choices for meal

Geographics

Location:

New York

Fresh & Furious

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⇢Price And Details For Our Product

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Fresh & Furious

Walk in: ALL $8 per order

Five choices
Healthy Diet
Non-GMO
Organic
Non Antibiotic Meat
Local Sources
Multicultural Cuisine
Vegetarian Friendly

Membership:

Subscription Model
$299 per month
Ten meals per week
Cancel anytime
Pick your ten meals anytime of the week
Twenty Choices
Pick your weekly dish a week in advance
Healthy Diet
Non-GMO
Organic
Non Antibiotic Meat
Local Sources
Multicultural Cuisine
Vegetarian Friendly

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Financial Analysis

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SUBSCRIPTION MODEL

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WALK IN CUSTOMERS

To estimate number of walk in customers:

Year 1

Add Rate: 10%
Churn Rate: 5%

Year 2

Add Rate: 10%
Churn Rate: 4%

Year 3

Add Rate: 10%
Churn Rate: 3%

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WALK IN CUSTOMERS

No of Customers

Start of Year 1- 150

No of Customers

End of Year 1- 269

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WALK IN CUSTOMERS

No of Customers

Start of Year 2- 269

No of Customers

End of Year 2- 541

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WALK IN CUSTOMERS

No of Customers

Start of Year 3- 541

No of Customers

End of Year 3- 1218

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BREAK EVEN ANALYSIS

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CASH FLOW ANALYSIS

Aashna

Our cash flow statement shows us how much cash on hand we will have over a period of 3 years.

We have an initial investment of $100,000.

The revenue for January is not calculated since cash starts coming in from the next month. Hence, due to the immediate inflow of loan we have positive cash in the first month. After that, we make negative cash due to economies of scale.

As seen in our 3 year projection, we start making making money in the 3rd year, more precisely in the month of March.

Calculations:

Cost of Sales:

Labor Costs (Chef+Busboy+Waiter)

Marketing Costs (Campaign)

Inventory

Packaging

SG&A:

Rent

Insurance

Permits and Licensing

Equipment

Furniture

Security Deposit

Renovation

Appliances

Labor Cost (Cashier)

Utilities

Misc Expenses

Marketing Costs (Print)

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CASH FLOW ANALYSIS

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CASH FLOW ANALYSIS

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INCOME STATEMENT

Sri

This is our income statement highlighting the profits and loss that Fresh & Furious has incurred over 3 years. Each year’s Net Sales was derived from the total revenue of each year in our Cash Flow Statement.

The reason for high figures in Cost of Goods Sold is because we are a healthy meal plan company, we spend a significant amount of money on fresh produce from locally sourced vendors.

Our Gross Margin before operating expenses, taxes and investment increased each year with $65,867.58 in year 1, moving up to $297,504.09 in year 2 and moving further up to $901,045.02 in year .

In regard to our Operating Expenses, We decided that we would plan to develop more products and services later on in the business once Fresh & Furious has solidified its position in the market which is why we did not set aside funds for Research and Development.

We do not have investments in stocks and bonds so we are not earning an Investment Income.

Our Net Income for year 1 was a loss but we made a profit in year 2 and year 3.

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BALANCE SHEET

Divya

We have created a balance sheet for three years. The result helps us satisfy the equation, i.e. Assets = Liabilities + Equity.

Assets

Cash, accounts receivable and inventory are current assets. On the other hand, equipment and furniture are long term assets.

The cash figures are derived from the cash flow analysis. As the figures were negative at the end of year 1 and year 2, we have not transferred them to the balance sheet.

As all of our sales are conducted in credit, we assume that we receive the money from the bank in the following month (after a period of 30 days). Thus, the accounts receivable is the money yet to be debited us for the December sales of each year.

Inventory amount is indicated by the total inventory amount that we have.

Equipment and Furniture amounts are taken into account by subtracting a depreciation charge of 10% every year. We assume, taking into consideration the life period of these resources and industry norms, we have assumed they will have a life cycle of 10 years.

Liabilities

Accounts payable is a current liability, whereas loan is a long term liability.

Since we pay our vendors and suppliers the day of the produce, we have zero accounts payable.

Assuming the initial investment amount of $100,000 from the owners as a loan, it appears in this section of the balance sheet. We haven’t repaid it by the end of 3 years, but aim to do so at a future appropriate time.

Equity

Owner’s Equity is calculated by subtracting total liabilities from total assets.

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Recommendations

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04

02

03

Visual Effect:

Design/

Packaging/

Decoration

01

Advertising:

Promotion

Membership

(Points claim)

Engagement:

Social Media/

Website/

Email

B2B:

-gyms,schools,companies

-Uber eat, Doordash,

Grubhub

RECOMMENDATIONS

Fresh & Furious

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Different Channels for each stage of Consumer Pathway

Fresh & Furious

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Recommendations: Measure Success and Adjust Strategy Based On the Metrics Data of Consumer Pathway

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👆

Awareness

tracking

👆

Brand equity

And image

tracking

👆

Consideration/

Purchase intent

tracking

👆

Sales

data

👆

Usability tests

Qualitative

Research

👆

Loyalty

Tracking

+

Newsletter clicks

+

WOM tracking

👆

PR tracking

+

WOM tracking

Buzz

Tracking

+

Net Promotion

Fresh & Furious

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Thank You!

Any questions?