BUSINESS PLAN:
Our company will offer the service of delivering groceries to people who are and online and fulfill the orders before delivering the items to customers.
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Figure 4: Online food delivery revenue in the Asia Pacific (exc China) in 2019 $US billions In other countries the rise in dining out is a more recent development and is yet to reach its full potential In Australia for example money spent on meals prepared outside the home has grown from 25 in the 1980s to more than one-third of
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Is delivery a lifeline for the restaurant industry?
- Lockdowns and physical-distancing requirements early on in the pandemic gave the category an enormous boost, with delivery becoming a lifeline for the hurting restaurant industry. Moving forward, it is poised to remain a permanent fixture in the dining landscape.
Are restaurant delivery commissions sustainable?
- Realistically, restaurants’ traditional profit margins of 7 to 22 percent make covering the platforms’ delivery commissions, roughly 15 to 30 percent, unsustainable as delivery orders become a larger part of a restaurant’s business.
How big is the food delivery market?
- Nowadays, food delivery has become a global market worth more than $150 billion, having more than tripled since 2017. In the United States, the market has more than doubled during the COVID-19 pandemic, following healthy historical growth of 8 percent.
BUSINESS PLAN:
SHANNON LOWERY
ERIN FAIGHT CHRISTINA RULLO ALEC ROBERTSON
BUSINESS DESCRIPTION:
Our company will offer the service of delivering groceries to people who are unable to conveniently grocery shop themselves. We will take orders via phone and online and fulfill the orders before delivering the items to customers. For a la carte orders, customers will pay the fee of the groceries plus a percentage of interest which will be the profit for our service. We also will offer special packages for target groups such as a family-friendly, college focused, and health-enthused customers.
LOCATION:
One Oxford Center, 301 Grant Street, Suite 4300, Pittsburgh, Pennsylvania, 15219VISION AND MISSION STATEMENT:
Groceries-R-Us will strive to provide the most affordable and convenient service to our customers in Allegheny County who will also receive the highest quality customer service. We take the hassle out of shopping in store, while still bringing the same great quality of your favorite products right to your front door.
FORM OF BUSINESS OWNERSHIP:
Multi-Partner Partnership
LEGAL NAME:
Groceries-R-Us
COMPETITIVE MARKET ANALYSIS
WAL-MART
Strengths
-!A huge brand name -!- Already have a well established customer base. -!Already own and distribute groceries in store, so
they will not be a middle man for the grocery delivery process-!- Inexpensive - Great social media following Weakness -!Not well advertised -!- Limited selection of groceries and brands - Not able to focus marketing efforts specifically on
groceries because they have a wide selection of products and product categoriesNETGROCER
Strengths
-!Very inexpensive -!- Simple website layout -!Solid social media integration -!- Service all 50 states Weakness -!Unknown company -!- Very limited brand selection -!Delivery outsourced by FedEx -!- Does not service Allegheny county
BEST GROCERY DELIVERY
Strengths
-!Large selection of brand name products -!- Wide variety of product choices and categories of products-!Simple easy to use website -!- Services exclusively to Western PA Weakness -!Unknown company -! Ugly website design -!No social media -!- Very limited delivery areas - Expensive
SWOT ANALYSIS
Strengths
-Our company will be unique because unlike our competitors we also will offer specialpackages for target groups such as a family-friendly, college focused, and health-enthused customers. This will provide a quicker and more effective buying process for our target market that will fit in well with their busy lifestyle.
-Another great selling point for our business is the fact that the products that we aredistributing will be purchased from Foodland, this grocery store already has a loyal customer base and a reputation for reasonably priced products. Our service will add on to the benefit that Foodland already provides its customers.
-Finally we will sell exclusively to Allegheny County ensuring our customers that our focus is local and not like a corporation who can sometimes forget about segments of its geographic market.INDUSTRY PROFILE
Weakness and Planned Resources
Our biggest anticipated challenge is getting Foodland on board with the partnership. we hopethat our business model along with the fact that we will provide service for only their customers will sway them into accepting our offer. The biggest resource we have in this case is exclusivity for Foodland.
Our next concern is whether or not people will choose to use our business over that of anational chain like Wal-Mart because we are the middle man for Foodland, while Wal-Mart already has access to its own product. Our hope is that the added benefit of the packaging/ bundling option will make our company stand out above that of our competition. The resources that make this a challenge we can overcome is the fact that the delivery process is not outsourced like our competition, we have our own trucks and delivery equipment making the prices comparable.
Opportunities:
The biggest opportunity that we see is being able to provide healthy lifestyle bundles, based on statistics and sociocultural analysis we have concluded that consumers want healthier food options but it is clear to us that they don't have the time to research what is healthy or not so we step in and do the legwork for them.
Threats:
The largest environmental factor for our company is the rising gas prices, it is hard to determine where gas will be at the end of every quarter therefore it is hard to determine our costs. If we are paying extremely high gas prices we will have to raise our delivery charge for customers in order to make any sort of profit and this will cause a loss of business.
Industry Description
- Our business is a grocery delivery company in the service industry because we provide the service of grocery delivery as well as bundling groceries for different individual or family needs and wants. Our growth potential is very high because based on a study by seekingalpha.com, focus on consumer health is one of the leading trends in 2012. Our bundling service provides the consumer with the option of choosing a healthy lifestyle bundle. Being able to offer the consumer healthier options at the click of a button, without the hassle of doing their own research into healthier food options will give us a huge edge in the grocery delivery industry.
!"#$%#'()%&*#!""+,*$#-$%./'0*$%/'12&3'.%4'5,.%%6%'!Create vision of business, oversee operations, handle hiring of management
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ORGANIZATIONAL CHART
CODE OF ETHICS
1.!Respect, honesty and fairness must be maintained with the highest priority in all working relationships
2.!All delivery commitments must be
handled promptly and courteously by our staff.3.!We will continue to make the
business grow through common goals and teamwork.4.!Employee safety will be held in high
prioritySOCIAL RESPONSIBILITY
•!Hybrid Delivery Vans •!Reusable Shopping Bags •!Recycling Program3 year goal:
•!To be recognized as the area's premier provider for grocery delivery service. •!To increase company size to 12 employees (4 owners and 8 delivery drivers) over the first 3 years of operation. •!To increase delivery vehicle fleet to 8 vehicles. •!To make a profit of $500,000 during year 3 operations. •!To expand service area to include a 30 mile radius around the City of Pittsburgh. !
5 year goal:
•!To expand delivery hours to include 7 days per week. •!To increase delivery vehicle fleet to 12 vehicles. •!To increase company size to 16 employees (4 owners and 12 delivery drivers) over the first 5 years of operation. •!To make a profit of $1,500.000 during year 5 operations.
MARKET RESEARCH AND PLANNING
Target Market
Busy working professionals College Students Seniors on a fixed incomeProduct Feature
Product Differentiation
Pricing is a straight 30% gratuity added to the total grocery billPrices are higher than other grocery delivery services in the city Higher price for a higher level of service and leave room for discounts
Pricing
ValuPak- Coupon distribution service that has the ability to deliver up to 10,000 homes in your particular target market for a fee. Flyer distribution- Senior centers, collage campuses, and grocery stores Google, Yahoo, and Bing profile Google ADWORDS
Advertising and Promotion
Our service will be available online and over the phone. The products will be delivered straight to the customers door.
Distribution
Comprehensive list for packages to create a customer profile Phone orders Delivery time will be predetermined by the customer Customers will be able to choose their products by simply checking a box on our website
Customers can request specific packages- health
food- diabetic diet-food allergiesFINANCIALS
Source Of CapitalResponsible PartyInvestment AmountFaight, Erin (25%)$25,000.00
Lowery, Shannon (25%)$25,000.00
Robertson, Alec (25%)$25,000.00
Rullo, Christina (25%)$25,000.00
Bank LoanStart Up Bank Loan$100,000.00
$200,000.00Owner's Investment
Total Capital
Source of Capital/Financing
initial Start Up CostsStart Up ItemEstimated Cost
Office Space (Deposit)$1,476.00
Salaries & Wages$17,833.33
Supplies: Technological,
Equipment, Furniture, Other
(computers, software, copy machine, desks, chairs, etc.) $10,000.00Advertising & Other Promotions$1,500.00
Utilities: Telephone, Internet$800.00
Insurance$800.00
Deliver Vehicle Purchase$80,000.00
Total Start Up Costs$112,409.33
Total Capital$200,000.00
Difference$87,590.67
-"./0+'/$12/0+3/$(
45$67$53.20$67.40$60.30 64$87
$50.70$62.70$56.70 849
$50.50$62.10$56.30 45$67
$46.70$57.80$52.25 64$87
$45.50$56.50$51.00 849
$45.30$55.90$50.60 45$67
$110.50$137.70$124.10 64$87
$105.90$131.10$118.50 %":;*/(45$67(+,.( <=>*.0/,(?$@(A(B$6 $160.10$198.00$179.05 %":;*/(45$67(+,.( <=>*.0/,(C$D(A(5$44 $189.20$235.70$212.45
13/$3/,./0(30":;&
Weekly Cost
-+*/EF/G+*/E
Data Recource:
CostofFoodAug2012.pdf
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12/0+3/(;0"H>'(;/0("0./0
Projected Order Cost/ Profit
BREAKEVEN ANALYSIS
Break Even Analysis
Number of Deliveries per month1500600700766800900100011001200Fixed Cost Assumption$21,931.00$21,931.00$21,931.00$21,931.00$21,931.00$21,931.00$21,931.00$21,931.00$21,931.00$21,931.00
Variable Cost Assumption per Delivery$5.00$2,500.00$3,000.00$3,500.00$3,830.00$4,000.00$4,500.00$5,000.00$5,500.00$6,000.00
Total Cost per Delivery$21,936.00$24,431.00$24,931.00$25,431.00$25,761.00$25,931.00$26,431.00$26,931.00$27,431.00$27,931.00
Projected Delivery Revnue$33.64$16,821.88$20,186.25$23,550.63$25,771.11$26,915.00$30,279.38$33,643.75$37,008.13$40,372.50
12-MONTH PROFIT & LOSS STATEMENT
JanFebMarQ1AprMayJunQ2JulAugSepQ3OctNovDecQ4Year to DateCost of Deliveries$500$1,000$1,500$3,000$2,000$2,500$3,000$7,500$3,500$3,830$4,000$11,330$4,500$5,000$5,500$15,000$36,830
Office Space Rent (includes utilities)$738$738$738$2,214$738$738$738$2,214$738$738$738$2,214$738$738$738$2,214$8,856
Salaries & Wages$17,833$17,833$17,833$53,500$17,833$17,833$17,833$53,500$17,833$17,833$17,833$53,500$17,833$17,833$17,833$53,500$214,000
Advertising & Other Promotions$500$500$500$1,500$500$500$500$1,500$500$500$500$1,500$500$500$500$1,500$6,000
Utilities: Telephone, Internet$160$160$160$480$160$160$160$480$160$160$160$480$160$160$160$480$1,920Bank Loan$1,700$1,700$1,700$5,100$1,700$1,700$1,700$5,100$1,700$1,700$1,700$5,100$1,700$1,700$1,700$5,100$20,400
Delivery Vehicle Maintenance$200$200$200$600$200$200$200$600$200$200$200$600$200$200$200$600$2,400Total Fixed Expenses$21,931$21,931$21,931$65,794$21,931$21,931$21,931$65,794$21,931$21,931$21,931$65,794$21,931$21,931$21,931$65,794$263,176
Net Profit / Loss-$19,067-$16,203-$13,338-$48,608-$10,474-$7,609-$4,745-$22,828-$1,881$10$984-$887$3,848$6,712$9,577$20,137-$52,186
Net Profit / Loss
Fixed Expenses
Variable Expense
Revenue
EMPLOYEE SALARY
EmployeesHourly Salary
Estimated
Monthly Salary
Estimated Yearly
Salary
Faight, Erin$17.07$2,958.33$35,499.99
Lowery, Shannon$17.07$2,958.33$35,499.99
Robertson, Alec$17.07$2,958.33$35,499.99
Rullo, Christina$17.07$2,958.33$35,499.99
Driver 1$8.65$1,500.00$18,000.00
Driver 2$8.65$1,500.00$18,000.00
Driver 3$8.65$1,500.00$18,000.00
Driver 4$8.65$1,500.00$18,000.00
Total Compensation$102.88$17,833.33$213,999.96
BALANCE SHEET
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