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Reinventing online food retail
*The joy of cooking
*
Product. Ingredient sets for fun and easy cooking of restaurant-class dishes at home Current state. Online shop poradovat.ru, launched in June, with a 50-80% return rate and av. ticket of RUB800 Growth. First year revenue goal: RUB16 mn turnover, 2300 clients. Long-term goal: building a $50 mn turnover company. Promotion. Organizing weekend events for customers and media. Social networks, context ads, flyers, partnership projects.
Quick summary
Investment need. RUB 4 mn( $125,000) 40% share in capital $50,000 already subscribed IRR 76% - 5 years, incl. exit, before taxes Payback period 1 year Contacts. Irina Nazarova, founder +7 926 232 2250 [email protected]
Product
We deliver sets of ingredients with all-inclusive approach for cooking delicious and stylish dishes at home.
Each set contains the right amount of each ingredient - fresh and high-quality - and a step-by-step recipe.
A small miracle made by you
Stylish dishes from gourmet magazines seemed like a fairy tale – now you can get everything you need to make them at home!
Our step-by-step recipes make cooking simple for all.
Idea
Amuse yourself and your beloved
We reinvent cooking as a creative entertainment and the best way to cherish your family and friends
How it works
Choose a dish on our website poradovat.ru and get a complete set of ingredients and a step-by-step recipe same day Delivery across Moscow and a pick-up point are provided
Target audience 25-40 years
Income above $2,000 per family member
Couples (73% of current sales), groups of friends (17%), single men (10%)
Businessmen, valuing style, simplicity, quality, and their own time
Customers of premium supermarkets, cooking magazines, farmers’ projects
Buyers of takeaway food in cafes and restaurants
Market and competition
• Shefmarket – direct competitor, market maker
Sales launched: July, 2012. Website launched: May 2012. Mass market
• LavkaLavka – recipe sets (4) Premium market Organic and farmers’ products only
• Azbuka Vkusa – “Almost ready” (half-prepared meals)
• Белая дача, Фруктовая почта, Sen Soi sets of vegetables for salads and soups, sold through supermarkets
• Cafes and restaurants selling take-away food
Prospective market
Restaurant industry
2011, $bn
Intesco Research Group
Av. ticket in cafes & restaurants, Moscow
Rosstat
Audience of premium cooking magazines in the largest Russian cities, 2012
«National Readership Survey»
Th.
33%
31%
20%
13% 500-1000
1000-1500
1500-2000
2000-3000
30
4.5
0
10
20
30
40
Russia Moscow
0
200
400
600
800
1000
1200
Gastronom Shkolagastronoma
Afisha Eda
Growth perspective
Target revenue over $50 mn
Target audience 1,000,000
Target market share 40%
Average orders per customer per year
4
Average ticket, $ 30
Revenue, $ 48,000,000
Our target audience is over 1,000,000 people in the largest
Russian cities
Moscow,St. Petersburg, Kazan, Ekaternburg, Novosibirsk, Krasnodar, N.Novgorod,
Volgograd, Samara, Ufa
Audience of cafes and restaurants
and buyers of takeaway food
Audience of premium cooking
magazines
Promotion
Weekend full day festival of home cooking: cooking classes from us and popular bloggers, tasting, sale of our sets and kitchenware from our partners, kids’ entertainment, charity market of home-cooked bakery
Promotion of the event through media (afisha.ru, bg.ru, the billage) and blogs
Partnership projects with bloggers, magazines, restaurants, farmers’ projects, fitness clubs
Sales through coupon services
Business magazines and websites
Contextual ads Social media ads and content Flyers directly into target companies
Advantages of the business model as compared to…
… restaurant / cafe Cheap location for a production unit No expenses on interior design and
equipment, no costly kitchen equipment No need in professional cooks, less
expensive line team
… food store Higher margin No need in storage facilities A much smaller assortment works well
(like in a restaurant)
Advantages of the business model as compared to…
… another internet project Monetization from day one Service already sees demand and loyalty from customers Blue unsaturated market – only one direct competitor
Current state*
22.06 Launch of sales
42% gross margin
RUB800 Average ticket
55% Clients returning within
1 month
83% Return rate from July
into August
RUB1050 In August
Key conclusions
• Confirmation of central hypothesis – high share of returning clients proves their satisfaction with the product
• Pricing strategy is about right – dishes in lower price segment are even less popular. Higher price segment can be explored
• Orders in weekend are more frequent than in workdays, thus a special offer for workdays is needed
• New dishes stimulate sales – menu needs weekly additions
• There is a differentiation between experienced cook-lovers and newcomers, they need different offerings
• A choice of side dishes and other extensions to menu are needed
• A choice of accessories may grow the ticket
Forecasts. 5 years Key assumptions
New clients growth: 10% y/y (high growth in year 2 due to the low base of year 1).
RUB \ year 1 2 3 4 5
Revenue 16,474,180 39,451,501 45,762,851 53,969,324 62,583,236
%growth 139% 16% 18% 16%
EBIT - 3,385 8,724,389 10,103,345 11,958,351 13,842,825
%margin 22% 22% 22% 22%
Investment
NPV: $470,000 (discount rate 50%) IRR: 76% 5 years, terminal value based on 5.0 EV/EBIT, before taxes
RUB USD RUB/USD
Investment 3,963,814 123,869 32.0
Operating costs (6 months) 2,163,814 67,619
payroll 1,108,814 34,650
promotion 575,000 17,969
rent 480,000 15,000
Equipment 600,000 18,750
Certification 200,000 6,250
Contingencies 1,000,000 31,250
Investment schedule
Expected need for investment (ex. contingencies)
37,810
13,997 12,641 11,657 10,352
6,163
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
1 2 3 4 5 6
$
month
Principles
• We develop a new product, a new market and a new habit – we follow the principles of the lean startup and agile development, testing our assumptions, improving our product consistently and trying new ideas, measuring our success by clients’ behavior and our key internal indicators.
• Our mission is to help people share their love and cherish their loved ones, apply their creativeness and create comfort in their homes.
Founder
Irina Nazarova
24 years
Education: Computer science in MSU, Economics in the New Economic School
Experience: J.P. Morgan Equity Research, J.P. Morgan IB M&A, Wermuth Asset Management, software engineer, studio photogrpher
Foodie
Appendix
If you are used to eating in cafes
Create a truly homely atmosphere
Impress and cherish your beloved one: your home-cooked dinner is the shortest way to his or her heart
Set up a creative party for your friends – best party is always at your place with hot, stylish, fresh, and delicious meals
Master graceful and easy cooking with us: our recipes are straightforward, while the dishes you make are always atop notch
Your benefits
If you cook
Extend your menu and venture new recipes
Save your time: no need to search for all ingredients, including the rare ones
Say no to leftovers: buy only needed amount of each ingredient
Enjoy the dinner prepared by your loved one (who don’t usually cook)
Your benefits -2
Romantic night
The special dinner, prepared by yourself, is the best way to express your feelings, gain sympathy and love
Impress and cherish your loved one by cooking a delicious and graceful meal, just like a chef from the best Moscow restaurant
Only at home, in private with your loved one, may you both feel a truly welcoming and relaxing atmosphere
Our accessories – elegant candles, candlesticks, wine glasses, serviettes – will add to the special atmosphere, while the most of it will remain in your warmth, embodied in the dishes and your attitude
Home party
Enjoy all the benefits of a home party: feel relaxed, unwatched and unlimited in time, watch photographs, play games and taste the fresh, hot, stylish and delicious home-cooked food. Cook together following our step-by-step recipe with a great fun! Preparing the party has never been never easier – with our all-inclusive sets Follow the mood of our thematic sets and turn the whole party into retro American, chic Italian, or hot Mexican style The best party is always at yours – friends will remember!
Sales
0
100
200
300
400
500
Июнь Июль Август
+145%
+63%
RUB
Average daily revenue
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
18.6 25.6 2.7 9.7 16.7 23.7 30.7 6.8 13.8 20.8
RUB
Weekly revenue June July August
Internal measures last 30 days average
1
1.5
2
2.5
3
23-Jun 7-Jul 21-Jul 4-Aug 18-Aug
Порций в заказе
Заказов на клиента
500
600
700
800
900
1000
1100
23-Jun 7-Jul 21-Jul 4-Aug 18-Aug
Средний чек
р.
Servings per order
Orders per client
Average ticket
Financial model Key assumptions
Average ticket: growth from RUB800 to RUB1200 during a year due to
- Party sets (larger number of servings)
- Accessories
- Desserts, salads, soups, beverages
Daily traffic: growth to 80 tickets per day during a year on the back of promotion
- Cost of promotion per new client RUB500
After 12 months: 2400 orders per month, 1000 clients per month
Gross margin: 50% over ingredients and package cost
Forecasts. First year First month, RUB Last month, RUB
Revenue 27,750 3,180,000
COGS 13,200 1,440,000
Gross profit 14,550 1,740,000
gross margin 52% 55%
SG&A 530,833 910,833
Payroll 295,000 595,000
Rent 100,000 100,000
Promotion 95,833 95,833
EBIT - 495,913 829,167
EBIT margin 25%
Contacts Irina Nazarova founder 8 926 232 2250 [email protected] Irina Ostasheva PR, promotion 8 905 711 8285 [email protected]
poradovat.ru facebook.com/poradovat
vk.com/poradovat
We don’t bring the ready-made food – we bring the joy of cooking!
