Wholesome Foods Fast BFS Final Draft (2)

BFS Wholesome Foods Fast, LLC 1

You are what you eat. Eat well, live well.

FEASIBILITY DECISION: FEASIBLE/INFEASIBLE

Wholesome Foods Fast, LLC

Business Feasibility StudyPaige JoffeSean CrawfordGeoff RosenbergJason VineisCatherine Poole

Drexel University


ContentsBusiness Feasibility Study.......................................................................................................................... 1

Executive Summary...................................................................................................................................... 5

Business Concept:......................................................................................................................................... 7

Potential For growth and Spin-offs:..............................................................................................................7

Industry analysis:........................................................................................................................................8

Porter 5 forces Model:.........................................................................................................................................8

Rivalry among competing firms:.....................................................................................................................8

Bargaining power of suppliers to the industry:.......................................................................................8

Bargaining power of buyers:............................................................................................................................8

Threat of substitute products or services:..................................................................................................8

Threat of new competitors entering the industry:.................................................................................9

SWOT Analysis................................................................................................................................................9

Strengths:.................................................................................................................................................................. 9

Weaknesses:.............................................................................................................................................................9

Opportunities:......................................................................................................................................................... 9

Threats:....................................................................................................................................................................10

Political:...................................................................................................................................................................10

Economic:............................................................................................................................................................... 10

Socio-cultural:.......................................................................................................................................................10

Technology trend analysis:.............................................................................................................................10

Competitor Analysis:.................................................................................................................................11

Chick-Fill-A:........................................................................................................................................................... 11

Wendy’s:..................................................................................................................................................................11

Panera Bread:....................................................................................................................................................... 12

Market Analysis:......................................................................................................................................... 13

Target Market Description:............................................................................................................................14

Market size:............................................................................................................................................................14

Market growth rate:...........................................................................................................................................14

Market trends....................................................................................................................................................... 15

Key success factors:............................................................................................................................................16


Healthy Dining Demographic:.......................................................................................................................17

Primary Customer Description:....................................................................................................................19

Young Adults:........................................................................................................................................................19

Athletic Consumer:.............................................................................................................................................19

Vegan diners:........................................................................................................................................................ 20

Families:.................................................................................................................................................................. 20

Green conscious customers:...........................................................................................................................21

Individuals who are dieting:...........................................................................................................................21

Primary Research:................................................................................................................................... 22

Survey:..................................................................................................................................................................... 24

Secondary Research:...............................................................................................................................27

Health statistics/trends of Americans.......................................................................................................27

Fast Food Restaurants and Food Stores: Longitudinal Associations with Diet in Young to Middle-aged Adults: The CARDIA Study...................................................................................................28

Current industry standards:...........................................................................................................................29

Industry leading wait time example:..........................................................................................................29

Poor performing wait time examples:.......................................................................................................29

Industry leading accuracy examples:.........................................................................................................30

Poor Industry accuracy examples:..............................................................................................................30

Founding Team......................................................................................................................................... 30

Product/Service Development Plan:...............................................................................................33

Financial Plan:.......................................................................................................................................33

Key Financial Assumptions:...........................................................................................................................34

New Venture Development Timeline:................................................................................................35

.......................................................................................................................................................................... 35

Appendices:.................................................................................................................................................35

Bibliography............................................................................................................................................... 35


Executive Summary

The following Business Plan for Wholesome Foods Fast LLC will in detail outline the means by which Wholesome Foods Fast LLC plans become an established, successful, and respected restaurant.

The Business Concept Section of the Wholesome Foods Fast LLC Business Plan includes our company definition: an innovative new dining concept that encompasses an all-natural approach to fast food. Wholesome Foods Fast will use no artificial preservatives, additives, unnatural food-dyes, artificial sweeteners, transfects, MSG, or anything that is not found in Mother Nature.

The Industry Analysis section of the Business Plan defines the prospective competition of Wholesome Foods Fast’s. It begins with the Porter 5 forces model which defines what we perceive will be the consumer and supplier patterns within our industry, as well as a competitive analysis of potential threats and competition. The SWOT analysis section further encompasses these threats, as well as what our company perceives to be the strengths, weaknesses, and opportunities within the fast food industry.

The Competitor Analysis section of the plan evaluates three major potential competitors: Chick filet and Wendy’s, as well as other fast-food substitutes. This section also describes the potential impact of the competitors as well as how Wholesome Foods Fast intends to compete in this growing market.

The Market Research Portion of the document describes the market that Wholesome Foods Fast will be targeting. This section describes prevailing trends within the market as well as how Wholesome Foods Fast plans to anchor on to these trends in order to achieve success. This section also includes a detailed description of Wholesome Foods Fast primary customer base. In addition, a detailed description of our target market including a targeted customer section, which is listed below. A further detailed description will follow for each type of customer in the body of the presentation:

Young Adults Athletic Consumers Vegan and Vegetarian diners Families Green-conscious customers Dieting individuals


The descriptions within this target market section will continue to enable our team to focus and understand the needs of our primary customers.

The primary research section of the document includes the results of a survey of which we have taken the data from and formed applicable graphs in order for easy interpretation of our findings. Some of the drivers for our data are listed below.

The secondary research section of the document includes the results from our research as well as conclusions that we have made in regard to how this information pertains to Wholesome Foods Fast. The research within this section has given Wholesome Foods Fast a better understanding of our competition, the needs of our customers, and the fast-food industry.

The Founding Members section of the document includes a short biographical description of each Wholesome Foods Fast founding member as well as what each respective member contributes to the Wholesome Foods Fast team.

The Product Service Development section of the plan explains how Wholesome Foods Fast plans to develop our products and services in a way that will appeal to our target market. This section also describes how Wholesome Foods Fast will implement our standards as an all-natural, pro-green company into our products and services. The Financial portion of the document includes a cash needs assessment for three projected years, a cash budget, and a pro-forma income statements for each of the three projected years; each section is broken down into detail. The assumptions that were made in order to create the corresponding financial documents in Excel are listed in this financial section of the document. The projected cost estimates for Wholesome Foods Fast have been formulated on the basis of discussions with relevant stakeholders and experts.

The New Venture Development Timeline displays tasks that Wholesome Foods Fast will need to complete by the given dates; this timeline will be followed in order to achieve all that is needed to ensure our successful grand opening in February of 2014.


Business Concept:

Wholesome Foods Fast is an innovative, all natural fast food restaurant that will be opening their first location in the Philadelphia area In March 2014. Our business would fulfill the demand for pure, healthy, food served in an expeditious manner. We will satisfy a demand for a large and growing health-conscious population. Whole foods fast will offer its customers the convenience of walk by pick-up windows, for the pedestrian commuter, or student on the go.

Our Company prides itself in providing genuinely wholesome, nutritious, and delicious options for the health conscious consumer on the run. We specialize in gourmet dishes that are made to order, using only the finest quality ingredients that Mother Nature can offer.

Potential For growth and Spin-offs:

Wholesome Foods Fast will eventually offer entrepreneurs the opportunity of purchasing a Wholesome Foods Fast franchise. The initial location will focus mainly on drive-thru restaurant with limited seating inside the facility. However, as demand increases, the opportunity to expand the sit-down portion of the locations into full service dining options may be feasible. Once operational efficiency in our core distribution channels are achieved, we will explore further growth in our market share by offering a delivery service within a profitable radius from each location. We also hope to have the opportunity to open an airport location.

Wholesome Foods Fast will fill the void that exists in healthy and wholesome dining for the on-the-go consumer. Because we answer to the call for a healthy, natural alternative to fast food, we are satisfying the demand from a niche that has not been focused on. We feel that, by focusing on this specific market, our success will be reflective of their great demand. From an operational standpoint, our diverse team of shareholders will utilize expertise in: food service operations, distribution chain management, and construction management to keep costs down during all phases of operation. The sales, marketing, and customer service experience of our founders will help to build a loyal customer base.

Industry analysis:


Porter 5 forces Model:

Rivalry among competing firms:

Our rivalry will be the existing fast-food drive-thru “healthy options”, as well as price rivalry for other full meal options. While we believe there will be significant competition for the fast-food consumer in our area(s) of operation, the rivalry between larger competing firms is focused on the low nutrient, high calorie foods that they currently offer.

Bargaining power of suppliers to the industry:

The support system and distribution network that one of our founding members, Chef Geoff Rosenberg is familiar with, will offer an established relationship between some of our future food distributors and suppliers. We will utilize suppliers with the freshest ingredients at the most affordable price. There are several competitive produce distributors in the Philadelphia area.

Bargaining power of buyers:

The consumers who make up a niche market would be interested in the Wholesome Foods Fast products will pay for superior quality of our food and ingredients.

Threat of substitute products or services:

Chick filet, Wendy’s, McDonalds, Panera, Burger King, Baja Fresh, all offer salads, which may be potential threats. Some healthy eaters occasionally indulge, which could make some non-comparable chains a threat.

Threat of new competitors entering the industry:

There are no new threats on the competitive horizon at this time. As the industry realizes the growth potential of the rapid serve, nutritional food market, potential competitors will attempt to capitalize on the growing sector.


SWOT Analysis

Strengths:

Wholesome Foods Fast, LLC is the only fast food chain that is dedicated to only serving all natural, healthy, foods that are freshly prepared for its customers. Our company provides the convenience of healthy food fast. No ifs, ands, or buts. We don’t use preservatives, artificial sweeteners, hydrogenated oils, MSG, nitrates, sulfates, or anything that wasn’t intended for consumption by Mother Nature. Our stores are energy efficient and we use “green” products and materials.

Weaknesses:

Some menu items may be priced, dependent on the seasonal nature of fresh food. Because we use no preservatives the shelf life of our food is limited as may affect our price structure. The lack of an established industry name will be a weakness until a reputation is established with our targeted consumer.

Opportunities:

Current First Lady Michelle Obama's “Let’s Move” national healthy food and exercise plan and an overall national health-conscious progression present an opportunity for Wholesome Foods Fast by increasing the demand for healthy food options. The relative prices of produce based on weather conditions, some foods may be less expensive in more favorable weather conditions. Wholesome Foods Fast will take advantage of the cheapest options on the market as well as their seasonal peak as an opportunity to both cut cost and increase the overall quality and freshness of our food. Wholesome Foods Fast also plans to take advantage of the economic patterns in the market that can influence prices (supply and demand). We will have an evolving menu that can incorporate the least costly quality ingredients in an effort to cut costs to improve the bottom line. We will also take advantage of the perception that many of our competitors in the fast food industry lack quality control. We will advertise our quality and product in comparison to other chains on the market.

Threats:

There are competitors in the market (Yum group, Wendy's/Arby's, KFC, Taco Bell, McDonalds, as well as potential new entrants to the


market. Weather conditions may have an effect on the produce market, in turn making produce very expensive, or impossible to get. The threat of a prolonged economic downturn can also affect business revenues, as people are less willing to spend money on dining options in hard economic times. The economic threat of escalating energy prices could directly affect the cost of the Wholesome Foods Fast operation.

Political:

The Affordable Care Act has provisions for patient wellness bonuses; providing incentives for the medical industry to highlight smart alternatives to patients with busy lifestyles. It is becoming politically popular to be “green”; Wholesome Foods Fast represents green ideology by having LEAN certified buildings, compostable containers, and fully recyclable utensils and other dining ware. Change in political parties can affect government incentives for start-up businesses, healthy diets, and regulations.

Economic:

Economic downturns can force consumers to prepare their own meals at home, or choose the least expensive alternative regardless of quality. Economic trends can affect customer’s budgetary needs.

Socio-cultural:

The current cultural push toward healthy living and smart food choices combined with today’s fast paced world creates a market for this particular product. If for some reason health consciousness becomes unpopular in the media/culture, our company would not be benefited.

Technology trend analysis:

Wholesome Foods Fast will practice sustainability (limit food waste), and efficiency in our business practices. We have environmental consideration. We will encourage recycling; and we will display responsibility for downstream vendors.

Competitor Analysis:

Significant relative competitors include: Chick-Fil-A, McDonalds, Wendy’s, Burger King, Sonic, Panera Bread, and KFC. Of these competitors, Chick-Fill-A, Wendy’s, and Panera Bread offer a more


nutritional alternative than other fast-food brands.

Chick-Fill-A:

A primary competitor “Chick-Fill-A” exhibits strong financial performance. Chick-Fill-A has significant similarities to Wholesome Foods Fast in several key areas including: distribution system, customer demographic, and operates in target marketplace. Listed below is a small example of their 2012 financials.

System-wide sales in 2012 reached $4.6 billion. These figures reflect a 14 percent increase over the chain's 2011 performance and a same-store sales increase of 8 percent. (Chick-Fil-A, 2012)1

Wendy’s:

Wendy’s, another significant competitor, produced attractive 2011 quarterly financial results. The company also reported healthy profit margins in 2011 and 2012 of 14.0 and 14.5 respectively.

Wendy’s consolidated revenues were $629.9 million, an increase of 2.4 percent compared to $615.0 million in the fourth quarter of 2011. Wendy’s Company-operated restaurant margin of 14.2 to 14.5 percent, compared to 14.0percent in 2012. This estimate assumes the benefit of same-store sales increases, Image Activation sales, discontinuation of breakfast at certain restaurants and cost-savings initiatives. It also assumes a 90 to 120 basis-point impact from higher commodity costs, driven primarily by rising beef and chicken costs (Wendy's, 2012)2.

1 http://www.chick-fil-a.com/Company/Highlights-Fact-Sheets2 http://www.aboutwendys.com/uploadedFiles/Pages/News/2012%204Q%20_final%20for%20distibution.pdf


(McDonald's Corporation, 2012)3

Above is an informational image from an annual report from the largest fast-food restaurant chain in the world. McDonalds is the flagship of the fast-food industry and exhibits strong global earnings. This is an example of the financial success the fast-food industry is experiencing. In an effort to attract healthy customers McDonalds recently increased its healthy items on their menus. Wholesome Foods Fast intends to lead the charge in the growing health-conscious market. We commit to providing the healthy all natural options that the fast-food industry is missing.

Market Analysis:

Wholesome Foods Fast offers affordable, healthy dining options in a timely manner. Committed to the highest quality, we will provide efficient preparation, with a home cooked taste and quality. Menus will offer a variety of healthy selections, appealing to a large, health conscious customer base. Wholesome Foods Fast will primarily market itself to clientele concerned with healthy dining within time constraints. This market will include students, working professionals, road warriors, and busy families. Philadelphia is home to a variety of fast food chains, yet no one appeals to a healthy, drive through and walk through sector of the market. Wholesome Foods Fast will market itself as a revolutionary dining establishment. We are concerned with the environment and the health of

3http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/Investors%202012/2011%20Annual%20Report%20Final.pdf


our customers. Locations will be in close proximity to gyms, schools, and other businesses known to be frequented by health conscious parties. Wholesome Foods Fast will appeal to an existing customer base who shops for organic and unprocessed products. In order to draw interest from new customers, marketing will need to appeal to a health and flavor conscious customer. Wholesome Foods Fast desires to captivate an audience concerned with sustainable living and social/environmental issues. Not only is the brand Wholesome Foods Fast a conscientious business partner, customers will often spend extra to devote their purchases to a good cause. Wholesome Foods Fast will be able to expand on this marketing strategy as it grows from a regionally to nationally and globally recognized fast food chain.

Target Market Description:

Market size:

1,536,471 in Philadelphia County, 31.5 minutes mean travel time to work, $36, 957 median household incomes (Census Bureau, 2012). The greater Philadelphia area will be the primary focus for the initial roll-out. With a relatively long commute, the drive-thru business model should be conducive to meeting time constraints of residents in this area. The median household income for the Philadelphia area is significantly less than that of other areas in Pennsylvania. Pricing at launch will need to be competitive, yet reasonable for the quality of product. Locations will start in the greater Philadelphia area, branching out throughout Pennsylvania.

Market growth rate:

The University City area has experienced a 0.7% growth in population from Apr. 2010- July, 2012, Predicted growth of 10,000 residents in greater Philadelphia County from 2010-2011 (Census Bureau, 2012). Top ranked (in metropolitan areas with 5 million plus residences) in increase in residents with a college education age 25+ from 2007-2009 (Forbes, 2011). While Philadelphia as whole doesn’t show rapid growth, the student/graduate ratio is much higher than comparable cities. This is conducive to growth for a mid-level dining establishment, catering to a more upscale palate and wallet. Taking advantage of the high level of pedestrian and bicycle traffic is paramount for Wholesome Foods Fast. Our customer is health conscious, cosmopolitan, and environmentally responsible. We will offer a strategically placed bicycle rack, feature local artists’ work in our décor, and schedule local musicians, writers, poets, and


other artists to perform each week. This multi-pronged approach will enable Whole Foods, Fast to maximize the amount of pedestrian and bicycle traffic.

Market trends:

Research has shown an increase in sales for restaurants offering higher quality food in upscale locations, with self-seating venues (Wall Street Journal, 2012). Whole Foods, Fast will apply to this sector of the market, willing to pay a reasonably larger price for better options. Wholesome Foods Fast must capitalize on the concept of chic dining for relatively inexpensive pricing. Pricing is not of the essence, as long as the quality experience accompanies. Quick preparation of a healthy meal is the primary benefit in our establishment. While several establishments cater to mid-level, higher quality foods, none focus on this concept in a drive thru format. Having an accessible, healthy alternative that caters to a busy person’s diet is the heart of the Wholesome Foods Fast model.

Wholesome Foods Fast understands that success in the market requires a great understanding of consumer needs. In researching our target consumer, we focused on our flagship location, within the Philadelphia area. Such data has yielded a great insight into nutritious dining behaviors throughout the city. By analyzing the data provided, Wholesome Foods Fast can identify potential in certain menu items for particular market segments. Advertising will be created in a manner that addresses the expressed needs of our customer base. Age and race are both major factors in the dining habits of Philadelphia residents. Both our dining options and marketing initiatives will cater to the melting pot market that Whole Foods Fast is privileged to enter.

An important variable in the measurement of nutritious dining habit is fruit and vegetable consumption. In analyzing above data, white adults consumed the greatest amount, as 13.1% consumed 5+ servings per day (Philadelphia Department of Public Health, 2010). Yet when it came to analyzing youth statistics, Hispanic children consumed the greatest amounts, at 12.2% (Philadelphia Department of Public Health, 2010). This statistic offers twofold benefits, as it provides insight into potential market penetration. Featuring fruits and vegetables in season will likely generate an interest in the existing consumer base. Applesauce in fall and corn in summer are a small sample of foods that hold nostalgic value. Wholesome Foods Fast will take traditional selections and morph them into delicious, accessible dining options. Children’s meals often consist of a fruit or vegetable snack. Fruit options should include an item that caters to the dietary preferences of Hispanic youth. Marketing initiatives could


include coupons for a fruit dessert/snack item with the purchase of a children’s meal. These menu and advertising initiatives will appeal to a customer base that is currently consuming fruits and vegetables, while enticing those with a strong likelihood to adopt such products. 11.6% of the adult Hispanic population reported difficulty in finding fruits and vegetables (Philadelphia Department of Public Health, 2010).

As an innovative company, we will provide nutritious dining to a time-constrained customer. Our signage will relay the Wholesome Foods Fast’s mission statement to the market in a powerful manner. Analyzing the travel behaviors of our market has provided proper campaigns for proper venues. White residents travelled most by car, at 64.9% while black residents travelled greatest by public transit, at 38.1. Since the type of market a marketing campaign attracts is directly related to the marketing method used, Wholesome Foods Fast will ensure that our customers feel a connection with Wholesome Foods Fast, through marketing that will appeal to a variety of lifestyles.

Key success factors:

Research is necessary in developing Wholesome Foods Fast into an everyday dining establishment. Knowing consumer needs and responding to their demands is essential. Utilizing the existing base in the Wholesome Foods channel will be a critical element of immediate brand recognition. Promotional offerings provide great exposure, as well as social media. Proper branding is necessary to the success of the company. Wholesome Foods Fast shouldn’t market itself as a novelty, but rather an everyday drive thru option. Offering Fair-Trade coffee in a drive thru location will make the brand name a feasible replacement for other competitors. Wholesome Foods Fast will proudly boast a competitive, innovative menu. Our ingredients will be readily displayed, defining our brand from the competition (offering products through our large distribution channel that competitors would not have access to). Marketing to a college community requires staying abreast of blogs and social networking. Word of mouth can make or break the concept; therefore Wholesome Foods Fast management must be empathetic to customer concerns. Promotional campaigns offering students discounts are an excellent avenue for stimulating business and interest amongst the University City community. Sponsoring sporting events will increase exposure and interest in the target consumer sector. Networking with the community to gain brand


recognition and exposure is a necessary element in profitability. Unused, prepared food will be donated to shelters in the downtown Philadelphia area. Wholesome Foods Fast isn’t another fast-food chain; we are revolutionizing the way people consider dining on the go.

Healthy Dining Demographic:

Understanding the market for Wholesome Foods Fast is essential to growth and profitability. There are a variety of markets for which Wholesome Foods Fast can establish and develop a customer base. Consumers are exhibiting an increased desire in health, affordable, efficient dining. There are various factors that contribute or detract from healthy dining. In order to create an appeal for the market, we must find methods to satisfy the interests of the customer. By analyzing Gallup Polling pertaining to healthy dining habits, a strong strategy has been created, listening to the needs of the market.

An increase in healthy dining habits throughout the day has been posted over a one year period. (Gallup, 2010) This is an encouraging statistic for Wholesome Foods Fast, as it reiterates the desire for affordable dieting options. As schedules become busier with longer hours at work, many Americans find themselves searching for an efficient, affordable option. The fact that respondents ate healthy all day poses great potential for future growth and development of menu options. Another positive aspect of this reporting is a health conscious consumer tends to adopt a healthy lifestyle customers have shown a desire to stick with their healthy dining plan. There appears to be great potential in fruit and vegetable offerings. A decline in fruit and vegetable consumption amongst respondents was depicted in the graph above (Gallup, 2010). Wholesome Foods Fast will utilize our state of the art marketing and menu development teams to create appealing options. Fruits and vegetables could be offered through juices, dessert, and snack options, packaged in a simple manner. Fruits should be peeled an offered in packaging that is convenient for travel on the go. The market for healthy dining exists.


It is apparent that there is a demand for affordable, fast, healthy dining options in America. Drive-through establishments traditionally offer affordable food at the cost of nutritional benefits. Fried and processed foods are the norm for a customer who is seeking a meal on the go. Wholesome Foods Fast has great potential to enter a market with potential for convenient healthy dining. According to the graph above, consumers were more apt to eat healthy when convenient economical options were available. Consumers continue to look for healthy, reasonably priced alternatives to the current fast food chains. Recent studies of Chipotle and Taco Bell resulted in analysts expressing concern for the long-term business strategy of Chipotle due to its lack of a drive-thru option. This aligns with the research shown above in the Gallup polling. Investors showed concern with the lack of accessibility for locations in comparison to Taco Bell. While Chipotle has found a niche in a customer desiring inexpensive, healthy options, they do not offer the benefit of drive-thru efficient service. Wholesome Foods Fast will satisfy a demand in the marketplace for a genuinely nutritional, wholesome alternative to the current product offerings of the leading fast food brands. Devoting itself to an affordable, efficient, healthy, and all natural dining solution, Wholesome Foods Fast will cater to a market that is willing to spend a little extra for a lot more nutrition. The company’s vision encompasses a total customer experience, including locations that cater to a busy lifestyle.


Primary Customer Description:

Young Adults:

The current trend among young adults is focused on an organic and healthy dining experience. Young adults are more educated about the health risks associated with heart disease and diabetes. By providing a menu composed of healthy organic choices, Wholesome Foods Fast expects to tap into the expanding health conscious market by offering affordable, fast, and, healthy all-natural dining options.

Eating organic and local food is on the rise among young people, reflecting a larger trend in that they’re attempting to adopt healthier lifestyles. They care about eating right and are increasingly interested in cooking both to be creative and health conscious. Yet, despite many Millennials’ desires to be healthy (52% of 14-34-year-olds consider themselves healthy according to a recent Ypulse report), they’re sometimes hypocritical in their actions — some drink excessively or smoke while also purchasing organic food. This health paradox is also reflected in the messages they see in the media telling them that everything they eat and do is bad for them. So while we’re seeing Millennials try to adopt a healthy lifestyle, there's still a long way to go and the media bombarding them with messages about every possible health danger isn’t helping as YAB member Camilla explains (Ypulse, 2012).4

Athletic Consumer:

Customers who are very conscious about regular workouts and maintaining a healthy diet find the choices are slim on menus at traditional fast food restaurants. While many fast food restaurants have healthy alternatives on their menus, many athletic consumers tend to avoid them because they could be tempted to order an unhealthy item. At Wholesome Foods Fast the entire menu will consist of items prepared with healthy, fresh and natural ingredients.

Athletes need more calories than people who do not exercise. Intake of healthy snacks before a workout will provide the required energy. Some people feel very hungry after a workout, and hence, eating a good snack will not only provide necessary nutrients but also keep you from overeating during the main meal. Some healthy snacks are

4 http://www.ypulse.com/post/view/young-adults-are-trying-to-make-healthier-choices-amidst-confusing-messages

http://www.ypulse.com/post/view/cooking-up-a-cool-factor

http://www.ypulse.com/post/view/cooking-up-a-cool-factor


apple and banana slices, peanut butter, dry cereals with dry fruit, vegetable juice, whole grain and low-fat milk. Junk foods and fast foods are a strict "NO" (Gupta, 2012).5

Vegan diners:

The options a vegan diner has in the fast food arena are slim to none. As the increase in vegan diners increases, Wholesome Foods Fast intends to tap into the growing market among these diners by offering meals prepared according to vegan tradition. By installing equipment designated to prepare vegan meals at a reasonable cost, Wholesome foods fast will be able to capitalize on a new market that fast food restaurants do not currently service. Below is an example of how this niche is not being serviced well in the market.

Sometimes, vegetarian or vegan dishes are offered on the menu. Yet even if they are not, it is possible to order menu items without certain ingredients; you just need to ask. For instance, otherwise vegan tacos and pizzas can be ordered without cheese at some restaurant chains that serve these foods. Furthermore, many restaurants would be happy to make specially-requested items for guests. Taco Bell even has a brochure, "Want Lower-Fat Choices? Try it Fresco Style." They state that, "Fresco Style reduces fat by 25% for most menu items compared to the original menu item." Fresco style means substituting Fiesta Salsa for cheese and sauce in any of your Taco Bell favorites (Vegetarian Research Group, 2013).6

Families:

Wholesome Foods Fast from marketing towards families. As childhood obesity continuously rises, parents are constantly searching for healthy alternatives to traditional fast-food dining. At Wholesome Foods Fast we will attract families to our restaurant by providing a fun and healthy dining experience.

Ten years ago someone would have looked at you crazy if you mentioned a healthy fast food option. Today, fast food chains need to offer a healthy choice if they want to compete for the business of health-conscious families. In many places, restaurants are required

5 http://www.buzzle.com/articles/healthy-diet-for-athletes.html6 http://www.vrg.org/nutshell/fast.htm


to list the ingredients and nutritional value of each menu item, giving the diner more control over what they eat. Some of the most popular chains have introduced new menus with healthier choices and other startup companies are looking to change the way we think about fast food completely (Spark, 2009-2013).7

Green conscious customers:

There is an inherent relationship between the all-natural-food consumer and customers that is interested in the environmental sustainability movement. By creating a restaurant that practices and promotes green principles, Wholesome Foods Fast will tailor its marketing campaign towards capitalizing on this unique market. By utilizing principles of LEED (Leadership in Energy and Environmental Design) in our construction and operational phases, Wholesome Foods Fast will not only make a statement to the community that we fully embrace the highest standards of sustainable business practices, but will further endear our organization to the environmentally conscious citizen.

Today energy independence, energy efficiency, and global warming have reached mainstream consciousness. The average consumer is asking questions about what it all means for daily life. But today’s challenge goes beyond materials and manufacturing into the arena of human behavior and choice. Business leaders need to understand how environmental commitments play out in the behavior and experience of the average person – not just the environmentally conscious one (In Context Industries, 2013).8

Individuals who are dieting:

Much like athletic consumers tend to avoid traditional fast food restaurants, consumers adhering to a strict weight loss or weight management plan struggle with choosing healthy meals when unhealthy items dominate fast food menus. All of the items offered at Wholesome Foods Fast will consist of healthy dining options. This strategy will entice those customers that fear temptation when unhealthy options are available. We plan to partner with popular diet plans such as Weight Watchers to offer a “points” calculator to reduce additional sales barriers for these customers.

To avoid fast-food temptations, Althea Zanecosky, MS, RD, keeps 7 http://www.sparkpe.org/blog/healthier-fast-food-options/8 http://www.incontextdesign.com/resources/green_handout.pdf


an 8x12-inch insulated cooler tucked in her car's back seat. "It's like having a mini-kitchen in your car," says Zanecosky, a spokeswoman for the American Dietetic Association. "We pack food for every member of the family -- bottled water, 16 ounce bottles of chocolate milk, juices, nuts, seeds, pretzels, yogurt, fruit, cereal, health bars. “It saves time, money, and it saves fat and calories. It keeps us from eating mall food or hitting the drive-through for french-fries (Web MD, 2012)."9

Primary Research:

Potential Wholesome Foods Fast locations / Current primary competitors Chick-Fill-A and Wendy’s locations within the region.

Below are several maps listing the locations of our main competitors “Chick-Fill-A” and “Wendy’s”. As you notice there are only six locations of both restaurants within the region. We will capitalize on the lack of locations providing a similar and enhanced experience that Wholesome Foods Fast will deliver.

9 http://www.webmd.com/diet/features/what-to-eat-instead-fast-food10 https://maps.google.com/


(Google, 2013)11

(Google, 2013)12

Survey:

In a recent survey conducted, results were overwhelming in support of a healthy fast food dinning option. Below is just a sample of the ongoing

11 https://maps.google.com/12 https://maps.google.com/


survey. The results are listed below. 61.5% of the people surveyed say that would buy a meal with beverage at a price of seven dollars or less even if the wait was around ten minutes, as long as it was fresh and healthy. 38% percent surveyed said they would not mind spending between 9-11 dollars for a healthy and fast meal with a beverage. This is well above the national average of 7-9 dollars for a traditional fast food meal. The survey also concluded that customers like the fact that there is an accessible fast option close to work or school (Survey Monkey, 2013).13

1. How much do you prefer the healthy fast food restaurant concept described by the following? Low fat content, Low speed service (more than ten minutes), Close to work or school, Price for meal and a drink below $7 dollars?

(Survey Monkey, 2013)14

2. How much do you prefer the healthy fast food restaurant concept described by the following? High vitamin content, Medium/Low speed service (ten minutes), Close to work /school, Price for meal and a drink below $7 dollars

13http://www.surveymonkey.com/MySurvey_Responses.aspx?sm=XaTFmMqlmgMi8n92wPvzgXaj6%2bygDjE%2bruE7Tn08Pwo%3d14 http://www.surveymonkey.com/MySurvey_Responses.aspx?sm=XaTFmMqlmgMi8n92wPvzgXaj6%2bygDjE%2bruE7Tn08Pwo%3d



3. How much do you believe is a fair price for a healthy organic lunch meal with a beverage?


4. Are you health conscious when it comes to food?

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http://www.surveymonkey.com/MySurvey_Responses.aspx?sm=XaTFmMqlmgMi8n92wPvzgXaj6%2BygDjE%2BruE7Tn08Pwo%253

http://www.surveymonkey.com/MySurvey_Responses.aspx?sm=XaTFmMqlmgMi8n92wPvzgXaj6%2BygDjE%2BruE7Tn08Pwo%253



5. How much do you believe is a fair price for a healthy organic diner meal with a beverage?


Secondary Research:

Health statistics/trends of Americans:

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Data compiled by Project EAT (Eating Among Teens) offers an argument to the relevance of healthy, fast food alternatives. The study utilized data compiled from 1,686 young adults (45% male). The project studied the group from the average of 15.9 years, and then followed up at 20.5 years. The data included questions about individual fast food consumption. The researchers concluded that males who ate fast food frequently increased by 33%. This increase in fast food consumption levels shows the need to offer a healthy alternative to a growing base of fast food consumers (University of Minnesota, 2013).19

An article from the Organic Consumers Association reveals the importance of eating a healthy diet and the risks associated with traditional fast food dining.

Food is something everyone needs, every day. As we know, how it is produced and who controls it, are important issues. But the way that it is processed and marketed can have a big effect on health and economics too. In some parts of the world, a lack of access to food is the tragedy, while in the US, unhealthy eating is cited as the second biggest killer after smoking. In an age of ³convenience², people in the West are eating more processed and fast food than ever, and 60% of the population is considered obese (Organic Consumers Association, 2013).20

19 http://www.sph.umn.edu/epi/research/eat/20 http://www.organicconsumers.org/foodsafety/fastfood032103.cfm


Fast Food Restaurants and Food Stores: Longitudinal Associations with Diet in Young to Middle-aged Adults: The CARDIA Study

(NCBI, 2013)21

21 http://www.ncbi.nlm.nih.gov/pubmed/21747011


These progressive studies above outline the obesity problem plaguing America today. In the first study it outlines how the poor populations simply don’t have access to affordable healthy dining options in close proximity. At Wholesome Foods Fast our mission is to provide urban locations the option to eat affordable and healthy meals.

The second study illustrates the growing obesity rates among young people and the link between obesity and heart related diseases. By promoting awareness and providing healthy dining options, Wholesome Foods Fast not only contributes to society in a positive way but, improves the health of the community as-well.

Current industry standards:

Below is data regarding a study conducted to analyze the wait times and order accuracy at various fast food restaurants. In the fast food industry Wait times and order accuracy are benchmark metrics that are closely watched. Wait times of a good restaurant and examples from a poor performing restaurant are outlined below. Wholesome Foods Fast will initially strive to stay within in the acceptable industry standards during the early stages of operations. As the restaurant settles in we will apply Lean Six Sigma principles to enhance wait times and accuracy, with the ultimate goal of leading the industry in theses respective categories.

Industry leading wait time example:

Wendy’s --the study's perennial favorite --can dish out its food fastest at 129.75 seconds on average, nearly 40 seconds less than the national average and 20 seconds quicker than its closest competitor. Wendy's shaved 16 seconds off its 2011 time, but is still a bit away from its 2003 record of 116.2 seconds (Fox News, 2012).22

Poor performing wait time examples:

By comparison Burger King, which came in last, takes 201.33 seconds, or about 3 min. 20 sec. on average to make it out of its drive-thru. Taco Bell took second place at 149.69, Bo jangles came in third at 171.61, Krystal placed fourth at 175.94, McDonald’s fifth at 188.83, Chick-Fill-A sixth with 190.06 (Fox News, 2012).23

22 http://www.foxnews.com/leisure/2012/10/09/wendy-dishes-up-fast-food-faster-says-study/23 http://www.foxnews.com/leisure/2012/10/09/wendy-dishes-up-fast-food-faster-says-study/


Industry leading accuracy examples:

In terms of order accuracy Chick-Fill-A came out on top, accurately filling orders 92.4 percent of the time. Taco Bell was second (91.2 percent) and McDonald's (MCD) was third (90.9 percent) (Fox News, 2012).24

Poor Industry accuracy examples:

Wendy's filled its orders only 89.9 percent of the time, but it still beat Burger King's 83 percent rate--the worst accuracy ratings of any of the seven fast-food joints surveyed (Fox News, 2012).25

This set of data will drive Wholesome Foods Fast in a direction to achieve industry leading wait times and fulfill order accuracy that our customers expect. Leading metrics will be in place to continue to monitor these benchmark quality control indicators.

Founding Team

Paige’s Joffe’s entrepreneurial qualities began to reveal themselves quite early. At age13 Paige began a community wide babysitting business in her hometown of Voorhees, NJ. Paige frequently volunteers and has been on four separate service trips, including Habitat for Humanity in New Orleans. Paige has worked in a Collections Law Firm, Retained Executive Search Firm, Real Estate offices, and managed 150 apartments as a landlord. Paige has her NJ Real Estate, and is in the process of obtaining her PA license. Paige will use her real estate background to help facilitate the acquisition of store locations. Paige’s search firm experience has made her savvy in understanding what it takes to staff a company well. Paige’s past experiences have made her a hiring, management, and customer service specialist. Paige has always been devoted to a healthy lifestyle; her realization for the need of healthy options for the health-conscious consumer on the run stemmed the idea of Wholesome Foods Fast.

Geoff Rosenberg has been working in the food industry since he

24 http://www.foxnews.com/leisure/2012/10/09/wendy-dishes-up-fast-food-faster-says-study/25 http://www.foxnews.com/leisure/2012/10/09/wendy-dishes-up-fast-food-faster-says-study/


was 14 years old in positions ranging from a dishwasher to a line server. He currently works as manager. Geoff has run small caterings jobs as well as large scale catering events for over 1500 people in multiple locations simultaneously. Previously Geoff worked as a Warranty Claims Analyst/ Quality Engineer for a multi-billion dollar manufacturing company. Geoff handled both return to stock and the management of defective items. Geoff also has a significant knowledge of the customer service systems.Currently Geoff runs two kosher kitchens at a small liberal arts college in Allentown, PA. Along with another Rabbinical Supervisor, he manages a staff of 6 employees that are dedicated to the two kosher kitchens and have the support of different sous chefs each week. In his current position Geoff is responsible for making sure that all ingredients are kosher, as well as managing inventory control, new product and recipe testing, and ensuring that his staff meet daily quality standards. Presently Geoff serves between 200-400 meals per day, per kitchen. Geoff is also currently at the final stages of starting a small company that will be importing a number of food products from overseas and distributing them throughout North America. Geoff has developed great knowledge and a broad skill set in food preparation and service that will help guide Whole Foods Fast toward success.

Sean Crawford is a business professional with over fifteen years of experience in sales, customer service, as well as managing and directing diverse work forces. As the Director of Distribution, Logistics, and Systems for Retail Apparel Service Corporation (RASCO) in Hicksville, NY, Sean was the chief labor and facilities director gaining knowledge in negotiations with local union representation and contractors while overseeing a staff of 25. Sean also directed a $500,000 renovation project for the company in the Staten Island Mall, Staten Island, NY in 2009 negotiating with corporate executives, contractors, inspectors, and organized labor representatives, as well as having the final say on all: architectural, engineering, and design/layout decisions. His LEED (Leadership in Energy and Environmental Design) accreditation and internship for The Renaissance Building in Jersey City, NJ in 2011 will help Wholesome Foods Fast in its mission to become a leader in sustainable, environmentally responsible supply chain and construction management. This will be the third business entity in which Sean will take an ownership stake in. Sean owned a minority stake in RASCO, founded a Plumbing Specialties Company, SC Distribution LLC, which operated from 2002-2007 and he had an active role in all aspects of the organization. Sean gained customer service and sales experience in all of these positions. Sean was the Territory manager for Southeastern Pennsylvania and Northern Delaware for Colt Plumbing Specialties. Sean’s extensive


customer service and sales experience will prove beneficial for the day to day operation of http://www.facebook.com/# Fast.

Over the last twenty years Jason Vineis has worked in or been directly involved with a broad array of industries. In his early years Jason worked in the restaurant industry. Within this arena he bussed and waited on tables at a local diner, an upscale restaurant, and, a large chain establishment Ruby Tuesday's; this past experience will allow Jason to better connect to our customer base. While working part time, Jason also participated in his family-run business. This business focused on real-estate investment opportunities. Buying old run down properties and restoring them was the primary focuses of the operation. This field has strengthened Jason’s abilities to handle construction projects ranging from interior cosmetics to infrastructure restoration. It has also allowed me to understand the process of buying and renting real-estate. Jason’s real-estate and construction knowledge will help the Whole Foods Fast optimize their finances in terms of purchasing or leasing prospective dwellings. For a short period of time Jason worked in sales with the Barnes Group: a large scale distributor of maintenance and repair supplies. While working in this field Jason gained valuable knowledge in dealing with purchasing agents and suppliers; his experience will enable Whole Foods Fast to handle vendors and negotiate supply contracts. Jason currently works at Merck and Co. He began at Merck and Co. with a position in office maintenance operations and worked his way up to his current position as Bio-Technician manufacturing bulk vaccines. To become qualified as a biotech Jason was required to attend two years in a program the company offered. Within the program he studied biology, chemistry, mathematics, and, organic chemistry. After completion, he began work as a technician manufacturing Gardasil. Chemistry plays a large role in how recipes are developed and executed; cooking is chemistry. Jason’s chemical knowledge, as well as his passion for food will support the growth of Whole Foods Fast.

Catherine Poole has worked in the telecommunications industry for the past nine years, in a variety of roles. Beginning with a landline organization in Florida, she worked in both consumer and business sales. These titles included prospecting, creating proposals, and ensuring all legal requirements were met in finalizing an agreement. Shortly thereafter, Catherine accepted a position for Verizon Wireless in Vermont. Throughout her career she has enjoyed her roles in sales, management, and operations. These titles included direct sales, development and maintenance of advertising, overseeing operational metrics, and


stimulating business through various venues. Working directly with the consumer base to achieve quota has been a longstanding requirement of Catherine’s position; this skill will be directly applicable to Wholesome Foods Fast. In management, Catherine was tasked with ensuring the exploitation of all possible advertising streams. Catherine has extensive experience in balancing cash flows, reconciling inventory, and ensuring compliance to FCC regulations. Catherine also has demonstrated great networking skills in both home shows and business expositions; she will use her extensive experience in the sales and marketing industry, the positive examples of her mentors, and her networking capabilities to grow the Wholesome Foods Fast into a world-class healthy dining alternative.

Product/Service Development Plan:

Wholesome Foods Fast will provide healthy on the go meals that will fill a void in the current grab and go food market. Wholesome Food Fast’s entire menu will be carefully selected using only the highest of quality products. Our products will be from sustainable sources and fairly trades.

Any disposable product that Wholesome Foods Fast uses for regular service will be made of environmentally friendly materials. We plan to use all compostable and recyclable packaging, plastic-wear, and cups.

In addition to the made-to-order menu options offered by Wholesome Foods Fast, there will also be a central display case filled with various grab-n-go items for the customer on a very strict time constraint. Items in the to-go case will be packaged using the same environmentally friendly packaging methods as the regular menu items.

Our customers are the reason that we are in business; it is our goal as a company to accommodate their wants and needs. Our service quality is very important to us. We want our customers to know that they are cherished and respected. Our extensive new-hire employee training program will ensure that our high service standards as a company are embodied in each of our employees.

We will have strict personal hygiene standards; our employees will need to wear hairnets and gloves when preparing food and hats and delivering. We will have a “Don’t come sick to work” policy where any sick employee will not be allowed to work and he or she will sent home.

Financial Plan: Please see corresponding Excel Spreadsheet. This spread sheet includes:Wholesome Foods Fast’s Cash Needs Assessment


3 yrs. of Wholesome Foods Fast cash budget done annuallyPro-forma income statements (Three years)

The projected cost estimates for Wholesome Foods Fast have been formulated on the basis of discussions with relevant stakeholders and experts. The projections cover the cost of land, building, inventory, labor, equipment, and tax responsibilities. The financial portion of this feasibility analysis is based on conservative estimates from market research and competitor analysis. In order to provide the maximum amount of detail, the following assumptions were made:

Key Financial Assumptions:

1st month operating revenues are based on 60% of output capability with 4% growth per month in months 1 thru 10.

Revenue growth in years 2 and 3 based on 4% annual increase.

Cost of Goods Sold (COGS) represented as 30% of food sales and 17.5% on beverages.

Labor cost represented as 30% of sales with a 3% Cost of Living Adjustment (COLA) per year.

7.65% payroll taxes with 9.48% for employee benefits.

$500,000 Small Business Loan with an interest rate of 6.79%

Tax Rate of 6.45% on taxable net income and 1.415 mills on gross receipts for Limited Liability Company (LLC).

Credit Card processing fees represented as 4% of sales.

Advertising and professional fees represented as 2.5% of sales.

Dues & Subscriptions, supplies expense, and office expense represented as 1% of sales.

Insurance expense based on 2.5% of revenue.

Utilities expense based on 5% of revenue with telephone expense based on local business packages.


Sales Returns and Allowances and inventory losses projected to decrease each year as efficiencies and best practice methods are improved.

New Venture Development Timeline:

Tasks that will need to be accomplished from the completion of the feasibility analysis up to the date of launch in the order of their completion and with actual time frames included of how long each will take.

Appendices:

BibliographyBarth, C. (2012, 10 02). Forbes. Retrieved 03 17, 2013, from Forbes:

http://forbes.com/sites/chrisbarth/2012/10/02/hold-the-guacamole-shorting-chipotle

Chick-Fil-A. (2012). Company Highlights. Retrieved 03 17, 2013, from Chick-Fill-a.com: http://www.chick-fil-a.com/Company/Highlights-Fact-Sheets

Fox News. (2012). Wendy's Dishes Up Fast Food Faster. Retrieved 03 17, 2013, from Foxnews.com: http://www.foxnews.com/leisure/2012/10/09/wendy-dishes-up-fast-food-faster-says-study/


Google. (2013). University City Map. Retrieved 03 17, 2013, from Google Maps: http://www.maps.google.com

Gupta, S. (2012, 02 13). Healthy Diet for Athletes. Retrieved 03 17, 2013, from buzzle.com: http://www.buzzle.com/articles/healthy-diet-for-athletes.html

In Context Industries. (2013). Green Resources. Retrieved 03 17, 2013, from incontextdesign.com: http://www.incontextdesign.com/resources/green_handout.pdf

McDonald's Corporation. (2012, 02 02). Investor Information . Retrieved 03 17, 2013, from mcdonalds.com: 4http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/Investors%202012/2011%20Annual%20Report%20Final.pdf

NCBI. (2013). Fast Food Restaurant and Food Stores Study. Retrieved 03 17, 2013, from ncbi.org: http://www.ncbi.nlm.nih.gov/pubmed/21747011

Organic Consumers Association. (2013). Fast Food is a Major Public Health Hazard. Retrieved 03 17, 2013, from organicconsumers.org: http://www.organicconsumers.org/foodsafety/fastfood032103.cfm

Panera Bread. (2013, 02 05). Financial Information. Retrieved 03 17, 2013, from Panerabread.com: 3 http://www.panerabread.com/pdf/er-20130205.pdf

Spark. (2009-2013). Fast Food Options. Retrieved 03 17, 2013, from spark.org: http://www.sparkpe.org/blog/healthier-fast-food-options/

Survey Monkey. (2013). Wholesome Foods Fast. Retrieved 03 17, 2013, from surveymonkey.com: http://www.surveymonkey.com/MySurvey_Responses.aspx?sm=XaTFmMqlmgMi8n92wPvzgXaj6%2bygDjE%2bruE7Tn08Pwo%3d

University of Minnesota. (2013). Project EAT. Retrieved 03`17 2013, from sph.umn.edu: http://www.sph.umn.edu/epi/research/eat/

Vegetarian Research Group. (2013). Fast Food Nutritional Information. Retrieved 03 17, 2013, from vrg.org: http://www.vrg.org/nutshell/fast.htm

Web MD. (2012). What ot Eat Instead of Fast Food. Retrieved 03 17, 2013, from Webmd.com: http://www.webmd.com/diet/features/what-to-eat-instead-fast-food

Wendy's. (2012). News. Retrieved 03 17, 2013, from Wendy's.com: http://www.aboutwendys.com/uploadedFiles/Pages/News/2012%204Q%20_final%20for%20distibution.pdf

Ypulse. (2012, 02 1). Young Adults Trying to Make Healthier Choices Amidst Confusing Messages . Retrieved 03 17, 2013, from ypulse.com: http://www.ypulse.com/post/view/young-adults-are-trying-to-make-healthier-choices-amidst-confusing-messages

Philadelphia Department of Pulbic Health. (2010). Risk Factors For Chronic Disease and Overweight/Obesity. http://www.phila.gov/health/pdfs/Philadelphia_obesity%20and%20chronic%20disease%20health%20indicators_2010.pdf

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Wholesome Foods Fast BFS Final Draft (2)