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Healthy Li’l CooksTeam 6:Adrienna EdwardsAndrew BoyerDeepa ChaparalaErik QuimbyJustin FortierSusan Quinn

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Agenda

Our Business Opportunity Concept Positing Statement Our Target Customers Service and Products Our Differentiation

Market and Industry Our Addressable Market Industry Analysis Competition Context

Financial Information Startup Costs Funding our venture Is our business viable?

Our Team Who do have onboard Whom we need Risk And Reward

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Growing Health Consciousness

New Mass. School food rules ban sweet snacksThe Boston GlobeJuly 13, 2011

The USDA replaces food pyramid with “MyPlate” in hopes to promote healthier eatingWashington PostJune, 3, 2011

Childhood Obesity Battle Is Taken Up by First LadyNew York TimesFebruary 10, 2010

Wal-Mart Shifts Strategy to Promote Healthy FoodsNew York TimesJanuary 20, 2011

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Concept Positioning Statement

Kids will explore healthy, balanced cooking in a FUN learning environment!!

For health-conscious, well-educated parents in the Northeast,

Healthy Li’l Cooks is a nutritional based cooking school that provides a convenient, engaging and

educational activity for their 5 – 12 year old children.

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Our Target CustomerDemographic Characteristics:

Parent with children aged 5-12

Lives in the Northeast United States

Is college educated

Has middle to higher income level

Lifestyle Chracteristics:

Is health conscious and has healthy eating habits

Views leisure time as an opportunity for self-improvement and child/family

enrichment i.e. extra-curricular education and entertainment

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Addressing our customer’s needs?

Customer Pain Points:

Lack of available educational yet entertaining parent/child activities

Inadequate personal knowledge and time to teach their children healthy cooking

Scarcity of healthy options for children's’ party events

Our Goals are to…

Provide an engaging “edutainment” option

Help parents teach children habits to last a lifetime

Provide a healthy alternative

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The Customer Experience

Planning In-store Shopping Cooking Preparing

to Eat Eat Post Visit

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Our Unique Differentiation

True health and nutrition focus

Student empowerment

Parent and child participation

Age appropriate “edutainment”

Customer loyalty program

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Healthy Li’l Cooks Operations

Store Design: 2500 sq. ft. - 2 kitchens operating concurrently

Operating Modes:

Monday through Friday: classes

Maximum Class size: 6 classes per day with 10 children per class Forecasted Utilization: 60% (36 students per day) Cost per child per class: $35

Saturday and Sunday: birthday parties

Maximum Party size: 8 parties per day with 12 children per party Forecasted Utilization: 80% (77 students per day) Cost per child per party: $30

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Looking at..

Our Business Opportunity Concept Positing Statement Our Target Customers Service and Products Our Differentiation

Market and Industry Our Addressable Market Industry Analysis Competition Context

Financial Information Startup Costs Funding our venture Is our business viable?

Our Team Who do have onboard Whom we need Risk And Reward

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Targeting Wellesley, MA

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Will our addressable market buy?

Target market: 28,649 students

Most likely to buy9,895 students

Our primary and secondary research indicates that parents are interested and willing to pay for Healthy Li’l Cooks

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Industry GrowthEdutainment is designed to promote learning and knowledge

by providing valuable knowledge to the consumer while keeping him or her engaged with entertaining material.  

Cooking Schools Industry (2009-2010) Sales Growth Rate: 11.8%

Entertainment Center Industry (2009-2010) Sales Growth Rate: 9.3%

 

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Competition

Direct Competition

Create a Cook

Parties, Classes and Workshops

Includes adult offerings (including team-building classes)

$35 No 1 Newton, MA

Imajine ThatParties, Classes and Workshops

Family MembershipsVariety of parties not limited to

cooking $23 No 1 Lawrence, MA

Papa Gino’s Parties

Birthday child (only) makes pizza

Organized gamesCake provided

$9 Yes165+ in NE

New England Area

Indirect Competition

Amazing Things Arts Center

Musicals and Visual Arts

Includes adult offerings $25 No 1 Framingham, MA

Wai Kru Mixed Martial Arts

Classes Membership to attend class $40 No 1 Allston, MA

Riverside Theatre Works

ClassesPerforming arts classes and

private lessons in theatre, dance, voice, guitar and more!

$250 No 1 Hyde Park, MA

Entertainment Center

Movies For children $10 No 1 Cambridge, MA

Name Offering DifferentiationAverage

Cost/ChildFranchise Offering

Number of Locations Location

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Context

Relevance to Customers

• Strengthening health trend− Increase in new

entrants

− Competitors move to healthier alternatives

• Declining population

Our Ability to Service

• Volatile input costs− Weather,

pestilence, or contamination

− Trending prices

• Increased energy costs− High utility bills

Customer’s Ability To Pay

• Sustained economic challenges− Reduced discretionary

spending

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Looking at..

Our Business Opportunity Concept Positing Statement Our Target Customers Service and Products Our Differentiation

Market and Industry Our Addressable Market Industry Analysis Competition Context

Financial Information Startup Costs Revenue Forecast Is our business viable? Growth Opportunities

Our Team Who do have onboard Whom we need Risk And Reward

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How much $$ do we need ?

Our startup costs: $295,000

Major cost drivers

Mitigating our upfront costs Equipment leasing

Funding Our Venture $120,000 by all founders $175,000 SBA loan

Buildout Cost,

137500, 46%

Legal Fees and Licensing, 10000,

3%

Marketing, 9000, 3%

Inventory Start up, 19500, 7%

Working Capital, 50000,

17%

Archi-tect, Con-sul-tant,

35000, 12%

Equip-ment

Leasing, 4125,

1%

Prop-erty Rent,

15625, 5%

Misc, 15950, 5%

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Forecast – Units / Revenue

30 weekday classes

16 weekend parties

488 children per week

Weekly revenues: $10,908

Monthly revenues: $43,632

Annual forecasted gross revenue: $556,308

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Healthy Li’l Cooks Is Viable!

Revenue projections YOY by 10%

Gross Margin: 75%

Average Profit Margin: 14%

Positive cash flow Year1 !

Ideal Investment Payback $120,000 to founders by year 3 ROI ?? SBA loan paid back in 5 years

Year 1 Year 2 Year 3 Year 4 Year 5

-$300,000

-$250,000

-$200,000

-$150,000

-$100,000

-$50,000

$0

$50,000

$100,000

$150,000

$200,000

-$255,585

$53,899$83,740

$116,511$152,502NET INCOME

Year 1 Year 2 Year 3 Year 4 Year 5

$58,776 $61,163

$89,393

$120,476

$156,073

Cash Flow

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Collaborating for Growth

2012 2013 2014 2015 20160

200000

400000

600000

800000

1000000

$556,308$611,939

$673,133$740,446

$814,491

Revenue

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Looking at..

Our Business Opportunity Concept Positing Statement Our Target Customers Service and Products Our Differentiation

Market and Industry Our Addressable Market Industry Analysis Competition Context

Financial Information Startup Costs Funding our venture Is our business viable?

Our Team Who do have onboard Whom we need Risk And Reward

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Our Team: Founders

A full century of diverse business experience!

Founders Areas of Expertise

Andrew Boyer Finance & Entrepreneurship

Deepa Chaparala IT & Software Engineering

Adrienna Edwards Marketing & Management Consulting

Justin Fortier Analytics and Customer SAT

Susan Quinn Human Resource & Entrepreneurship

Erik Quimby Strategic Development & IT operations

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Our Team: Consultants

The Key to Our Success!

Area of Expertise Consultants

Legal Looney & Grossman

Culinary Expert Chef Katie Roberts (Easy Entertaining, Inc.)

Architect Design Team TBD

Children’s Service Expert

TBD

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Risk & RewardsRisk Mitigating by..

Our concept is not quickly perceived

Networking working capital available for first 3 months

Additional business loan is not feasible given minimum assets on our balance sheet

Additional loans will be collateralized by founders

Our business is a cash machine.

We will keep it as a lifestyle business rather than quick cash

out!!

Founders share passion to keep the business and pass it on to their next

generations!!

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EXTRA RE-WORK SLIDES

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Backup slides

Webpage mock up Exhibits Pesimistic/Optimistic approaches

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Concept Positioning Statement

Kids will explore healthy, balanced cooking in a FUN learning environment!!

For health-conscious, well-educated parents in the Northeast,

Healthy Li’l Cooks is a nutritional based cooking school that provides a convenient, engaging and

educational activity for their 5 – 12 year old children.

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What is Li’l Cooks About?

“Give a boy a Happy Meal, you have fed him for today. Teach a boy how to cook healthy meals and you have nourished him for a lifetime.“ (author-Healthy Li’l Cooks)

Teaching children how to cook healthy, delicious meals Developing habits to last a lifetime Reducing childhood obesity Parents participation Few “edutainment” options

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Our Target CustomerDemographic Characteristics:

Parent with children aged 5-12

Lives in the Northeast United States

Is college educated

Has middle to higher income level

Lifestyle Chracteristics:

Is health conscious and has healthy eating habits

Views leisure time as an opportunity for self-improvement and child/family

enrichment i.e. extra-curricular education and entertainment

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Targeting the Northeast

Higher than average incomes

Better educated than rest of United States

Greater concern for nutrition and health

Very few children’s cooking schools with health focus

Target market size and growth Northeast population grew 3.2% from 2000 to 2010 Our target market is 1.3 million customers Pathway to growth: 12 million children under age 18 in the Northeast

The Northeast is an ideal location to launch Healthy Li’l Cooks!

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Potential Market Size: LOCATION

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Potential Market Size: Survey

Interest in Classes/Parties: Would Buy Classes: 68% x .8 =

54.4% Would Buy Parties: 64% x .8 =

51.2%Additional Revenue Streams:

Would Buy Products: 66% x .8 = 52.8%

Purchase Intent is estimated at approximately 52.8%

Students: # of elementary and middle school students = 28,649 x 52.8% =

15,127 Students

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Our Product & Service Walk-Thru

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The Customer Experience

PlanningIn-store

ShoppingCooking

Preparing to Eat

Eat Post Visit

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Our Business Operating Model

Store Design: 2 kitchens operating concurrently

Operating Modes: • Monday through Friday: classes• Saturday and Sunday: birthday parties

Maximum Class size: 5 classes per day with 8 children per class

Maximum Party size: 8 parties per kitchen per day with 12 children per party

Utilization: 60% utilization during weekdays and 80% during weekends

Cost per child: Price per class is $35, price per party $30

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Customers’ Willingness to PayMarket Research/Survey Results

Targeted parent survey results (primary): 64% interested in healthy cooking birthday parties 68% interested in healthy cooking classes

64% of moms surveyed (secondary) are willing to pay more for healthy eating products

Existing kids cooking school rates range from $23 to $90 per child

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Context & Differentiation Slides

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Our Touch Points

Customer Attraction: Web Site/ Social Media Flyers/Newsletters Community Service School Partnership Marketing

Channel

Service Offering

Ways to Book: Online Telephone Walk-in

Fulfillment Channel

Customer Support

Unique Differentiators: ‘Shop’ for Ingredients Focus on Nutrition Child-Sized Utensils

Ease of Service: FAQ on Website Party Consultation Continuous Availability through

Email

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Market Research

DefinitionsFortified/Functional−Vitamin Fortified−Added fiber, etc.

Better For You−Low fat−Low sodium−Reduced calorie, etc.

Naturally Healthy−Non-processed−No additives−Nutrient rich

Organic

Food Intolerance−Soy milk−Gluten free

Source: Euromonitor international from official statistics, trade associations, trade press, company research, store checks, trade interviews and trade sources.

Steady increase of total sales from $124M in 2005 to $153M in 2010

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The price of healthy foods comes with a hefty price

Higher educated, higher income consumers are willing and able to spend more to eat healthy

High School Grads

College Grads

0.0% 10.0% 20.0% 30.0% 40.0%

Vegetables Fruit

U.S. Consumption of Healthy Food: Educated individuals by in large eat healthier than the less educated.

Demographic Trends: Education Nourishes

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Overall Evaluation of Industry Attractiveness

Threat of entry

Supplier power Buyer power Threat of substitues

Competitive Rivalry

Moderately unfavorable

Moderately favorable

Moderately unfavorabl

e

Highly unfavorable

Moderately favorable

Overall Industry Assessment: Moderately favorable

• Pros: Low supplier power and low competitive rivalry make the cooking class industry favorable

• Cons: The high threat of entry (low barriers), high buyer power, and high threat of substitutes are factors we need to be concerned with

• Bottom Line: By differentiating our product offering, effectively marketing it to our target customers, and learning from the experience of our competitors, Healthy Li’l Cooks can flourish in this industry for many years to come

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Micro Market Trends: Education Pays

Hot Kid’s Meals

What’s Hot

Family Behavior:

Higher income leads to…

More disposable income which leads to…

More out-of-home entertainment

2009 Average U.S. Family Income

HS Diploma

Some College

Associate Degree

Bachelor’s Degree

Master’s Degree

Doctorate Degree

Professional

Degree

$59,567 $70,547 $76,601 $109,065 $130,876 $160,498 $188,930

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Macro Market Trends

What’s Hot

Hot Kid’s Meals

Strained Economydevalued dollar and increased prices

The segment that can afford out-of home activities is seeking edutainment and is growing in the NE.

EdutainmentIncrease in percentage of parents of 6-11 year olds involved in extracurricular lessons

Professional SocietyMove from manufacturing (brawn) towards managerial/tech who appreciate edifying leisure vs. pure relaxation

Social Stratificationtop 40% accounts for 71% of entertainment spend

Knowledge GrowthNE highest degrees and Mass one of the states with the highest degrees, both are increasing

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Executive Summary

"You can raise a child to enjoy healthy eating and to be selective about food choices. Habits developed in

childhood will hopefully last throughout their lives“Linda Van Horn, Ph.D., R.D.

Research shows, healthy eating habits stick with kids

There is a large segment of consumers who want to teach the combined benefits of cooking and healthy eating to their children

Healthy Li’l Cooks can skillfully educate children that cooking and eating healthy go hand-in-hand