Keys to Success Page - Copy Deck

8/2/2019 Keys to Success Page - Copy Deck

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V ISION, M ISSION AND PHILOSOPHYThe FAVE vision is to change the way people eat. With a simple core philosophy of

good food that just happens to be meat-free, the company strives to achieve the

mission to bring mass-market accessibility and acceptance to the genre of quick,wholesome and delicious meat-free cuisine.

OBJECTIVES: SHORT TERM1. Secure private investor financing in the amount of $1,000,000 to open a flagship

fast casual food service outlet target opening date 1st quarter 2013

2. Bring the flagship restaurant outlet to profitability within five months, producing

increased month-over-month returns and margins to prove financial model foradditional outlets

3. Establish short-term management succession plan for first phase expansion

(three restaurants)

4. Establish corporate guidelines for opening standards, operational procedures,

brand standards, and product specifications. Book to be established to address

unforeseen opportunities that arise for quicker than anticipated growth

OBJECTIVES: LONG TERM1. Secure three additional rounds of private investment totaling $2,850,000 to

finance the growth of 17 additional restaurants over five years

2. Reconfigure supply chain and establish national partners for distribution of

proprietary products

3. Prove multi-market viability including stores in the Southern California area

and/or select locations on the East Coast of the US

KEYS TO SUCCESSFAVE has an internal core set of drivers that make it unique. The following list

represents the controllable keys to success of the concept:

The Food: a dynamic mix of taste-first proprietary food designed to be premium

to competitors in the local fast casual category. Quality and taste has the ability

to covert omnivores and impress non-vegetarians


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The Service: a strategically designed environment and set of offerings to

effectively deliver key service periods of lunch and dinner

The Message: a sunny, summery communication platform that strategically

avoids the typically negative vegetarian baggage including animal rights and

the environment

The Theatre: a natural, handcrafted soda program set to become a beverage

barista experience

The Supply: a partner network of distributors, manufacturers and consultants

ready to deliver an impossible-to-copy menu of great food that just happens

to be meat-free

The Finances: strict and rigorous cost controls and financial management

The Management: strong industry experience, complimentary skill sets, large

social networks and passion to drive the concept long-term

FAVE relies on an external set of opportunity drivers that provide a platform for

significant growth. The following list represents the market forces key to success of the

concept:

Health: the individual need to combat increasingly sedentary lifestyles with a

healthy, low cholesterol, low fat, high vegetable diet

Category: explosive growth in the fast casual restaurant market in North America

Trend: media, television, and pop culture support for increasing vegetable

consumption, the vegetarian shift and the vegan movement

Politics: continued pressure from national, provincial and municipal government

organizations to recommend, develop and fund healthier lifestyle options to offset

ballooning health care costs

COMPANY LOCATIONS AND FACILITIESThe first three FAVE restaurants are targeted to open within the urban centre of

Vancouver, British Columbia. The targeted neighbourhoods include Kitsilano (4th

Avenue), the North East Robson Street Corridor, South Granville, South Cambie

Corridor, Yaletown and Gastown.

International Expansion

One will note the business model of FAVE has been designed to be scalable. From the

vision to the supply chain, from the product offering to the brand, a mass-market, cross-

cultural direction has been deliberately planned. Noting the successes of contemporary

meat-free fast casual competitors in localized markets around the world, including

Singapore, Los Angeles, Boston, and Toronto, FAVE has an increased potential for US

and international growth.


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As vegetarianism is particularly strong in a number of countries, FAVE is looking toward

the horizon to target the following countries for international expansion, after the US

market: UK, The Netherlands, Belgium, Germany, Australia and India. The Indian market

alone is estimated to have more than 400,000,000 people who do not eat meat.

COMPANY GROWTH STRATEGYFirst Phase Growth and Financing Strategy

From the moment the first FAVE opens its doors, three strategic focal points for growth

will be delegated to committed talent within the organization. The operational integrity

of FAVE will be handed to Jeff Osborne, the financial integrityof FAVE will be handed

to Joseph Cooke and the emotional integrityof FAVE will be handed to Jordan

Kallman.

Jeffs area of responsibility will ensure that operational standards are being met, product

delivery is perfect and the guest experience is always exceeding expectations. Jeff will

run the facility, managing relationships with suppliers, vendors, employees and guests.

Joseph will manage the finances of FAVE. He will ensure that Jeffs scope is within

budget and that financial standards-of-performance and being met. Joseph will

coordinate the relationships with investors and the board. Jordan will develop the metrics

by which emotional connections with the market and FAVE can be analyzed. This data is

essential in growth decisions that will be made in future.

Joseph will work to achieve budgeted results and a profitable operation by month six ofoperations. Should this be achieved, FAVE will undergo a second round of financing

whereby the group of investors will have first right of refusal. This second round of

investment will finance the opening of the second, third and fourth FAVE. The second

FAVE is targeted to open one calendar year after the first FAVE opens. The third FAVE

is targeted to open four months after the second FAVE opens. The fourth FAVE is

targeted to open at the end of year two.

Throughout Phase One, Jordan will be responsible for managing communication

strategies, online guest feedback and all contractors responsible for the consumer

engagement with the FAVE brand. This will include social media partners, traditional

public relations, and the converter agent-based promotional program discussed in later

sections of this plan. Opportunities for brand and business development, including new

strategic relationships, partnerships and real estate location scouting will also fall under

Jordans sphere of responsibility.


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Allocation of FAVE Profits

FAVE, at the discretion of the Board of Directors will reinvest all of its profits after

dividends during the first phase of growth. Reinvestment areas will be additional

restaurants, employee development (from training to retention programs and financial

incentives), product development, marketing programs, distribution and supply-chainefficiencies.

Second Phase Growth and Financing Strategy

The first four FAVE outlets are targeted to all open within 2 years of the first day of

operations of the first outlet. These outlets are all targeted to open in Vancouver. During

Year 2, a third round of financing will commence whereby the shareholders will be given

the first right of refusal. This third round of financing will be set for $1.35 Million. This

third round of financing will fund the expansion of FAVE into the Southern California

market. FAVE will also be in a position to reinvest earnings to contribute to the

expansion.

FAVE will initiate a fourth round of financing in year three and year four to raise the final

$1.5 Million that will propel the company to build a total of 17 outlets within five years of

operations. At the end of year five, FAVE is targeting to have a presence in the West

and East of Canada, as well as the US, via west coast USA.

The Option of Franchising vs. Financing

The co-founders are not targeting a franchising model for growth. As customer

experience and detailed delivery to ensure conversion in the marketplace, a corporately

owned business model for the outlets is desired. This model allows for greater controlover quality of service, product delivery and guest experience.

Investors Exit Option

FAVE will be built to attract an acquisition from a larger, and publically traded quick-

serve or fast food company. The industry average price to earnings ratio among

publically traded comparable companies is 22 times. FAVE will position itself to be

traded at 7.5 (See Investor Model section for further analysis) times. As multiple rounds

of financing will occur, this will also provide investors with multiple options for them to

pull their investments out.

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Keys to Success Page - Copy Deck