Catering Company Business Plan

Fressen Catering

Executive Summary

Opportunity

Problem

The Philadelphia kosher catering market is an interesting one.  Recently they have discovered they really like and need kosher food. It’s healthy its organic and its a “clean” way to eat. It helps keep people healthy. People are in need of really good food.

Solution

Fressen will occupy a niche in the kosher catering market that offers new, creative menu items, broadening people’s conception of kosher food.  This market consists of two target segments that are differentiated by household income.

Market

The kosher catering business in Philadelphia is fairly unique.  At the low- to mid-price point of the cost spectrum, there are four other kosher caters.  These caterers tend to serve the part of the market that must have kosher food served at an occasion due to religious beliefs, but struggle to able to afford the cost variance between standard and kosher catering.  All four of these caters have fairly standard menu offerings.  There is a fifth caterer that also serves the lower end of the market (defined as middle class) but serves the high end of the market as well.  Although there is a large wealthy population in Philadelphia that follows the laws of kashrut, they have been underserved.

Competition

Fressen Catering’s competitive edge is its attention to servicing customers and inventive approach to kosher cuisine. Fressen’s customer attention differentiates them in the world of kosher catering which is dominated by several companies that have plenty of demand.  The consequence of market demand is a decreased pressure to accommodate customers. Fressen is approaching the market as if there was significant competition between the different service providers.  By making customer satisfaction a priority, over time, local customers will come to appreciate the attention that their needs are given and form a long lasting relationship with Fressen Catering.

Why Us?

Fressen Catering’s mission is to provide the customer with the finest kosher catering.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall into place.  Our services will exceed the expectations of our customers.

Expectations

Forecast

Fressen Catering is forecasted to make a profit by year 3. It will be up and running and well-staffed and able to sustain employees and Susan. By year 4 Susan will be able to repay the loan of 90,000 back to friends and family

Financial Highlights by Year

Financing Needed

This business needs $130,000. Susan will put in $40,000 and friends and family will kick in $90,000.

Opportunity

Problem & Solution

Problem Worth Solving

The Philadelphia kosher catering market is an interesting one.  There are several caters that offer services that are quite similar to each other in terms of price and menu options. In the past consumers would not welcome new kosher menu items, it is just that people have incorrectly made the assumption that kosher meals have to be boring. Recently they have discovered they really like and need kosher food. 

Our Solution

Fressen Catering’s mission is to provide the customer with the finest kosher catering.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall into place.  Our services will exceed the expectations of our customers.

Target Market

Market Size & Segments

Market Segmentation

Fressen Catering has two distinct target populations:

1. Middle class kosher clients. This group of people does not have huge amounts of disposable income, recognizes that it is costly to sponsor a kosher dinner party, and is willing to incur the expenses, but will try to minimize them.
2. Upper class kosher clients. This group has intertwined kosher values throughout their lives and is willing to spend whatever it takes to throw a high-end kosher dinner function.  Typically, this group is characterized by a wealthy one-income family where the male works and the female does not.  The female of the household typically thoroughly enjoys the planning of these events.

Target Market

The target market segment strategy will not be significantly different to address the two different groups. Both groups, regardless of income typically belong to the same group of religious congregations. Therefore, to reach the different groups does not require a distinctly different strategy. What differentiation it will require is different menu offerings needed to satisfy the different groups. The upper-end menu items are cost prohibitive for the middle class target segment.

Competition

Current Alternatives

As stated in the previous section, there are four other kosher caterers that serve the low to middle end of the market.  These caterers compete to some degree on cost (due to budget constraints of some clients), but more so on service.  The quality and the serving of the food are the main areas of service that the caterers compete on. 

There is one high-end caterer who will compete with Fressen.  This caterer, while serving the upper-end market, does not provide its clients with upper-end service. This company is not a strong competitor because of their overpriced service offerings relative to the service provided, and its business has been declining over the last few years. Lastly, one competitor for the high-end market is kosher caterers from New York City.  When cost is no object, there are many people that are willing to pay the additional cost of bringing in the caterer from NYC.

The buying habits of consumers of kosher catering is to some degree price sensitive at the middle end of the market.  Between two different service providers, the middle class group will choose the service provider with the best services.  However, cost is certainly an issue and some of the caterers are not even options because they are priced out of this consumer groups price range. The buying habits for the high end of the market is price insensitive.  Choices are made by menu offerings, reputation, and attention to service.

Our Advantages

Fressen Catering’s competitive edge is its attention to servicing customers and inventive approach to kosher cuisine. Fressen’s customer attention differentiates them in the world of kosher catering which is dominated by several companies that have plenty of demand.  The consequence of market demand is a decreased pressure to accommodate customers. Fressen is approaching the market as if there was significant competition between the different service providers.  By making customer satisfaction a priority, over time, local customers will come to appreciate the attention that their needs are given and form a long lasting relationship with Fressen Catering.

Fressen’s other competitive edge is their nouveau cuisine approach to kosher food. Traditionally, kosher food has remained stable and unimaginative for a long time.  Most people believe that there are large compromises that must be made when serving kosher. These compromises need not be made however, and Fressen is changing these misperceptions.  Just because there are strict rules regarding the types of foods that may be used and the way it must be prepared does not eliminate creativity.  Fressen is taking their knowledge of nouveau cuisine and creating inventive, colorful, and delicious kosher alternatives.

Keys to Success

Keys to Success

The key to success is to meet and exceed the customer’s needs in terms of quality of food and excellence of service. 

How we will get there will be our business objectives which are: 

• To create a service-based company whose primary goal is to exceed customer’s expectations.
• To increase the number of client’s served by 20% per year through superior service.
• To develop a sustainable start-up business.
• To develop enough cash flow to pay all salaries as well as grow the business.

Execution

Marketing & Sales

Marketing Plan

Fressen’s marketing strategy will be based on developing visibility among Philadelphia’s kosher community.  This will be accomplished through three main efforts.

The first is social media. Facebook and Twitter, with useful posts offering information about Philadelphia, information about events, cuisine, and so forth. We need a consistent presence, with useful content, and no clutter. This is of course related to the third effort, below, of word of mouth. Social media is word of mouth on steroids. 

The second is a targeted advertising campaign.  Advertisements will be placed in various Jewish newsletters. There are a couple of Philadelphia-wide newsletters. Additionally, Fressen will advertise in a few Synagogue-specific newsletters. These advertisements should yield a decent amount of service inquiries since they are fairly targeted toward the target population that utilizes kosher catering.

The third is a networking campaign among the Philadelphia Jewish population.  Susan has been an active member of the Philadelphia Jewish community for five years.  While the Jewish population is of decent size, numbering around 200,000, it is a fairly close knit community where people tend to know each other.  Susan will leverage her contacts within the Jewish community to raise awareness for her catering activities.  While the networking might not cast as large of a net as advertisements will, it costs far less and the relationships that it builds will be far stronger because of the trust relationship that has already been established. And it will synch well with social media. 

Sales Plan

Fressen’s sales strategy will use a combination of superior customer attention and a comprehensive repertoire of dishes for the menu to turn information seekers into customers.  Susan recognizes when a prospective customer calls to get information about Fressen, it is Susan’s main opportunity to turn them into a customer.  She will do this by spending as much time on the phone as necessary. 

Another benefit that Susan will leverage to develop sales is her comprehensive menu.  In addition to all of the traditional kosher dishes, Susan will offer many innovative nouveau cuisine kosher items that she has developed over her years spent in the culinary industry.  An innovative available menu should be seen as a large benefit.  There is no intuitive or logical reason that people who adhere to kosher are any less adventurous when it comes to food other than the fact that they have been raised that way.

Operations

Locations & Facilities

Fressen will rent space for the office and kitchen in an industrial area of Philadelphia.  Renting in the industrial area will significantly lower the cost. Since the space will be used for food production it is not relevant for the store front to be aesthetically pleasing, or in a nice neighborhood.

Milestones & Metrics

Milestones Table

Key Metrics

1. Increase the # of customers who appreciate our food 
2. Increase the # of tweets and reviews telling people to come into our store 
3. # of return customers, they will be the majority of our sales 
4. Facebook page views, Facebook shares and google searches which turn up our website. 

Company

Overview

Ownership & Structure

Fressen catering is a high end kosher catering to the Philadelphia community owned and run by Susan Chefily. 

Team

Management Team

Susan Cheflly, the founder and owner received her Bachelor of Arts from  the University of Pittsburgh.   After college, Susan went to work in the restaurant industry because it was a good source of money.  While serving at an upscale restaurant in Pittsburgh, Susan befriended one of the chefs there who began to teach her cooking techniques.  Susan began to find this instruction very interesting and enjoyable.  After six months of this tutoring, Susan decided that she wanted to remain in the restaurant industry, but wanted to learn the skills needed to be a chef.  Susan decided to enter the Pennsylvania Culinary Institute, a well-regarded training school for chefs.  Susan completed the one year program and graduated near the top of her class. 

With this education, Susan went to work as a chef at one of the nicer nouveau cuisine restaurants in Philadelphia.  Susan thoroughly enjoyed the five years spent as head chef, but she longed to work for herself, running her own business.  Susan thought she would appreciate the ability to set her own hours, to be her own boss.  One day, while in temple, the thought hit her that she could operate a kosher catering company and do well because the upper-end of the market has been largely ignored by the current competitors.  With this thought in mind, Susan began to do market research.  After speaking with many different people as well as holding three focus groups, she recognized that her idea was viable and started writing this business plan.

Personnel Table

Financial Plan

Forecast

Key Assumptions

With experience and after doing research we assume the following is true: 

1- there is a need for high quality kosher food in philadelphia 

2 – we will be serving a higher end income population 

3 – we have the knowledge and equipment to give our customers clean and kosher food. 

Revenue by Month

Expenses by Month

Net Profit (or Loss) by Year

Financing

Use of Funds

Fressen Catering will incur the following start-up costs:

• Two commercial stoves with ovens.
• Dishwasher.
• Two sets of cookware.
• Two sets of dishware.
• One van with rolling racks built in (a rolling rack is a wheeled rolling cart system that is insulated for both hot and cold food).
• Assorted serving trays and utensils, knives and cutting boards (two each). 
• Desk and chair.
• Computer with printer, CD-RW, Microsoft Office, and QuickBooks Pro. 
• Copier and fax machine.

Please note that the following items which are considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.

Sources of Funds

Susan will be contributing 40000. Susan’s  friends and family will be contributing 90,000 to the business

Statements

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement