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THEITALIANFOODCONCEPT
Financial Assumptions
July 22nd, 2011
RESEARCH
Our years of experience and strategic relationships provides us with unique insights, proprietary information and unparalleled access to key industry players, including:
HarrodsSelfridgesHarvey Nichols (London)KaDeWe (Berlin)La Rinascente (Milan)The Great Food Hall (Hong Kong)
All successful “food halls” are either on the ground level or level -1;
“Food courts” (regardless of price point and positioning) can be successful on the upper levels;
The combination of food hall and food court located on upper levels are successful only in the restaurant operations.
FINDINGS
Our research suggests the most desirable and financially viable business model should be:
The creation of a food court concept containing extraordinary Italian restaurant concepts;
A retail market of ambient Italian food products (with a maximum allocation of 10% of the space);
Gift basket business.
CONCLUSION
Harrods – London, U.K.
Foot fall/traffic counts 14 millionAnnual revenue – Food GBP 75 millionAverage spend GBP 5.35Average spend restaurant GBP 2.14Average spend food hall GBP 3.21 (70% coming from ambient foods/gifting)
RESEARCH (cont’d)
La Rinascente – Milano, Italy
Foot fall/traffic counts 8.5 millionAnnual revenue – Food EUR 24 millionAverage Spend EUR 2.82Average Spend – Restaurant EUR 2.40Average spend – Food hall EUR 0.42 (15% of total space is allocated to Retail)
Note: 25% of visitors to La Rinascente visit the food court and 50% of those use the four (4) external elevators
RESEARCH (cont’d)
ASSUMPTIONS
REVENUE
Note: Start-up costs $3mm
BUILDOUT COSTS
Food is the new form of entertainment and a proven traffic generator;
Increased store-wide foot traffic;
Increased store-wide sales;
Enhances and brings new relevance to Bloomingdale’s housewares department.
DIRECT BENEFITS TO BLOOMINGDALES (cont’d)
Reduction of inventory and accounts payable attributed to the subject space;
Guaranteed minimum base-rental income;
Additional income as financial thresholds are attained;
DIRECT BENEFITS TO BLOOMINGDALES (cont’d)
DIRECT BENEFITS TO BLOOMINGDALES (cont’d)
Better customer retention as customers needn’t leave Bloomingdales to dine (once they leave, they don’t come back);
New category of frequent customers (you need to eat every day);
Attraction of high-net-worth, sophisticated and trend-setting customers;
A new stream of relevant and interesting public relations topics and messages.
Strengthens Bloomingdale’s brand positioning by:
Including a very unique world-class store-in-store concept;
Significantly enhances and augments the Bloomingdale’s in-store shopping experience in a new and very exciting way.
DIRECT BENEFITS TO BLOOMINGDALES (cont’d)
Partnering with a highly experienced and motivated team of food and hospitality professionals with:
A proven track record working in high-volume luxury department stores;Operational and financial control capabilities;International trade (import-export) expertise;Extensive supermarket experience;World-class luxury-brand merchandising capabilities;Restaurant and retail management expertise;Financial strength.
DIRECT BENEFITS TO BLOOMINGDALES
Core and shell investment;
Opening hours;
Security after opening hours;
Marketing of concept by Bloomingdale’s;
7th floor plans and coordination with concept;
Timelines for execution / launch
Next Steps
QUESTIONS FOR FURTHER DISCUSSION
GRAZIE