FARM FRESH CERTIFICATION BUSINESS PLAN

FARM FRESH CERTIFICATIONDrew BehnkeDani FashanaHaylie HomenAlexandra PetruzzellaMichael Yoon

Our ClientLoaComMarketing & advertising consulting companyDevelopment, marketing, and event servicesLoaTreeLifestyle companyCommunity action and outreachBuilding a Better World

LoaComs NeedsFarm Friendly Dining Certification Highlight Local FoodsSupport CommunityConcentrated WealthProfitCompany BrandingRecommended Approach: CertificationGoldSilverBronzePrice$250$350$450Percentage50%+25%+10%+Facebook MentionsBi-monthly3 per quarter2 per quarterTweets15105Logo & Summary on Certification WebsiteTop-tier PlacementMid-tier Placement

Placement

Framed CertificationXXXWindow DecalXXXCatering & Sponsoring OpportunitiesGold PrioritySilver PriorityBronze PriorityRestaurant WeekPriority Participation & Waived FeePriority Participation & Discounted FeePriority Participation & Discounted Fee4

Approval Criteria% RequirementApproval is based on the restaurants one-month-prior pay stub New Clients will have a follow-up audit 3 months after the start date Annual FeeSigned ContractRecommended Approach: Restaurant IncentivesLocal IngredientsCommunity

Dan Barber on Farm Fresh Food

Recommended Approach: Restaurant IncentivesConsultingPromotional Offers

Pilot Client PromotionIf a restaurant is one of the first 10 to become Farm Fresh Certified, they will receive a discounted subscription price for the first year as a pilot restaurant.

Gold $50 Silver $100Bronze$200

Since this is a new certification, it does not have much merit yet. This promotion is intended to offset this issue and act as an incentive to get the restaurants involved and get the Farm Fresh Certification up and running.

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Refer A Client PromotionIf a restaurant brings us a new client who successfully certifies (at any level), the referral restaurants annual subscription fee will be waived for 1 year. This is intended to build LoaComs client base as fast as possible.

10Recommended Approach: Restaurant IncentivesAdvertising IncentivesEvent Planning, Certification and Sticker, Restaurant Week, and Online Marketing

Window DecalFramed Certification

Recommended Approach: Restaurant IncentivesAdvertising IncentivesEvent Planning, Certification and Sticker, Restaurant Week, and Online Marketing

Restaurant WeekWhat is Restaurant Week?GoalsImplementation Plan

Social Media

Website

Community Marketing

Certification Intern19Certification ManagerThis intern can then turn into a part-time position as Certification Manager of on avaerage 15 hours a week.

Point of Contact We allocated 15 hours a month directly to answering client questions, resolving client problems, quarterly check ins with restaurants, and reporting to LoaComMost of this will be done via e-mail, however some situations may require phone calls or a face to face conversationAuditsWe allocated 5 hours a month directly to auditing clients1 month audit for new clients3 month audit for new clientsAudits will vary in time due to how prepared the client isMany audits will be done via e-mailAudits will involve a review of clients paystubs for the time period in question to assure that their percentage level of expenses is being metSocial Media PostsWe allocated 5 hours a month to posting either the template social media post or a post provided by the clientWebsite UpdatesWe allocated 5 hours a month for additional restaurants and their summaries to be added and other various updates to the websiteCertify New ClientsWe allocated 10 hours a month to certifying new clientsThis process will involve consulting with the client to assure they have local food resources available, determining their level qualification, getting the contract signed, collecting the subscription fee, and sending their window decal and framed certificateOther We allocated 15 hours a month for other various things that may ariseExamples include additional time needed for another task, press releases, maintaining flyer distribution, building client base, client not meeting criteria, or a level change request

20Certification ManagerAnnual audits take place at only 2 different times a year (depending on their year end) so this will require a lot of work in a small time window. Most audits should be able to be conducted via e-mail. Getting the information will likely be more time consuming than the actual audit. Restaurant Week will put on like any other LoaCom event, and the Certification Manager can be delegated a majority of the tasks.

21ExpensesItemCostYear 3 CostStart Up CostsRestaurant Packets280Certification Flyers (300)150Decal Design100Total Start Up Costs$530Annual Fixed CostsRestaurant Week 1,5001,500Manager7,2008,640Total Fixed Costs$8,700$10,140Variable CostsWindow Decal5Framed Certification15Total Variable Costs$20Year 1 Profit Projection Revenue Variable Expenses # Sold Gross Profit Gold 250 20 3 690 Silver 350 20 3 990 Bronze 450 20 4 1,720 Gross Profit 3,400 Pilot Gross Profit 1,050 Fixed Expense 8,700 Start Up Expense 380 Total Profit $(4,630)Assumes 10 pilot clients will certify in the first year at a discounted priceAssumes 10 additional new clients will certify in the first year

23Year 2 Profit Projection Revenue Variable Expenses # Sold Gross Profit Gold 250 20 9 2,070 Silver 350 20 9 2,970 Bronze 450 20 12 5,160 Gross Profit 10,200 Fixed Expense 8,700 Total Profit $1,500 Assumes 20 clients are retained and 10 additional restaurants certifyTotal of 30 clients

24Year 3 Profit Projection Revenue Variable Expenses # Sold Gross Profit Gold 250 20 14 3,220 Silver 350 20 14 4,620 Bronze 450 20 17 7,310 Gross Profit 15,150 Fixed Expense 10,140 Total Profit $5,010 Assumes 30 clients are retained and 15 additional restaurants certifyTotal of 45 clientsAssumes Certification Manager pay increase

We feel that this projection is accomplishable and therefore fairly realistic. Numbers will vary depending on what levels are more popular to certify at. If things go somewhat similar to this projection, LoaCom will break even and start making a profit in Year 2. After Year 3, LoaCom should have enough funding to expand the certification into other areas.Something else to note is if the certification doesnt take on as many restaurants as initially hoped for, the Certification Manager needs will be smaller. While revenue will decrease, so will the costs.

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Recommended Approach: ExpansionBy the end of year three, we believe the certification program will have generated enough revenue to expand to other local communities Recommended Ventura and Ojai-both highly successful farmers marketsSanta Barbara Restaurant Week could be a great marketing tool and incentive for other local farmers markets to want to join the certification program Potential expansion to Ventura and Ojaiboth pretty close to Santa Barbara and very successful If those work then can expand even further 26Timeline

---shows the timeline of what we believe will be required for the certification program to be successful

certification manager very important

First 6 months crucial where LoaCom will be getting their name and the certification out to the general public Projections:First year a lossSecond year break evenThird year make a profit 4th year ready to expand 27Restaurant Week TimelineIntended for extra incentive for the restaurantsOnce the certification builds a reputation it may not be necessaryChanges after year 3Higher entrance FeeCity of Santa BarbaraCertification Profit Increase

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Why do we think this will be successful?The subscription fee is feasibleLocal food costsProfitable, expandable, and enticing to both restaurants and communitiesPeople like to eat fresh, local, healthy food

29Subscription Fee CostAccording to Restaurant Research Group, restaurants spend 3-6% of sales on marketing

Restaurant Sales $100,000

Spend 3% on Marketing$ 3,000Bronze Certification$ (450)

Projected Marketing Budget Consumption15%

Certification marketing value (social media, locom website, loacom events, word of mouth, reputation boost)

The point to be made here, is for all the advertising benefits offered, the subscription fee will not hinder restaurant budgets.

30Local Food CostsSCALE Inc. Farmers Markets were the same or less expensive than supermarkets 74% of the timeProduce was cheaper 75% of the timeOrganic produce was cheaper 88% of the timeMeats were more expensive from 10-47% of the time31Restaurant Eating TrendsNational Restaurant AssociationWhats Hot Culinary ForecastLocally sourced meats & seafoodLocally grown produceEnvironmental sustainability

Thank you!Questions?