Little Shanty Restaurant Strategy Deck

2. Some Days You Feel Like Angus
&
Other Days You Feel Like Patty
Angus
Patty
Healthy
Indulgent

3. Angus
Indulgent
is
Cheeseburgers
Chicken Wings
Soda
Shakes
French Fries
Onion Rings
Ice Cream
Deep Fried Oreos & Twinkies

4. Health
Conscious
is
Patty
Salads
Chicken Sandwiches
Veggie Burger
Grilled Vegetable Sandwich
Bottled Water
Diet Soda
Skips Dessert
Shares an All Natural Cheesecake

5. Although She’s
Ben Known to
Indulge From
Time to Time

6. At Most Fast Casual
Restaurants Paty is
an Afterthought

7. Even Though

8. She’s the Decision
Maker

9. That’s Crazy

10. That’s Why
We Built

11. Healthy Indulgent Continuum
Healthy
Salads
Grilled
Vegetable
Sandwich
Veggie
Burger
Grilled
Chicken
Sandwiches
& Wraps
Turkey
Burgers,
BLT
Burgers, Grilled
Cheese, Fish
Sandwich,
Hot Dogs
Wings
Fries,
Chips &
Rings
Shakes,
Floats, Ice
Cream,
Desserts
Indulgent

12. Market Space
Better Burger
Healthy Fast
Casual
Traditional Fast
Food
Fast Ethnic

13. Market Space
Better Burger
Healthy Fast Casual
Smashburger
Shake Shack
Five Guys
Bobby Flay’s Burger Palace
Fuddruckers
In n Out Burger
Whataburger
Cheeburger Cheeburger
Panera Bread
Pret a Manger
Subway
Salad Works
Cosi
Au Bon Pain
Which Wich
Potbelly
Traditional Fast Food
McDonald’s
Wendy’s
Burger King
Sonic
KFC
Dominos
Papa John’s
Pizza Hut
Fast Ethnic
Chipotle
Q’doba
Panda Express
Moe’s Southwest Grill

14. Little Shanty Creates
and Exploits
New Market Space
Fresh Casual

15. Fresh Casual
• Hybrid Quick Service & Table Service
• Fresh Ingredients
• Broad Menu Selection with Frequent Menu
Updates
• Professionally Trained Chefs
• Appeals to Broad Cross Section of
Customers

16. Fresh Casual
• Bi-Polar diners
• Both health conscious & indulgent
• Healthy options are not an afterthought
they are a focus
• Recognition that family and group dining
decisions are largely driven by women
• Increasing consumer awareness of food
allergies

17. Why Fresh Casual
• Fast casual dining industry in US is $27
billion per annum
• Industry growth rate is 8.4%
• Better burger growth rate > 40%
• 50% of Americans have at least 1 burger
per week
• Healthy casual growing at a similar rate
• Busy Lifestyles leading Americans to eat out
more frequently

18. Convergence of Trends
Ideal for Little Shanty
Increased Frequency
of Dining Out
Design
Healthy Fast Casual
e
Bett
r
urge
rB

19. Customer Profile
•
•
•
•
•
•
•
•
•
Suburban/Exurban/Urban
Single, DINK, Multiple Children
Higher Income
Extremely Busy
Wants to Eat Fresh Food
Aware of Current Food Trends
Conscious of Health & Wellness
Intelligent Indulgence When Dining
Will Spend More for Quality Ingredients

20. Four Cornerstone Principles
•
We will delight our guests by serving fresh delicious food
in a beautifully designed & maintained environment every
time they visit one of our stores.
•
We endow our partners with responsibility by giving
them a voice into the operation of our business and
opportunity to share in our success.
•
We will generate a consistently superior financial return
for our financial stakeholders enabling them to invest for
the continued long-term success of our business.
•
We will give back to the communities in which we work
and live.

21. Design Matters
• Apple
• Ralph Lauren
• Warby Parker
• Prove that design driven companies can
grow faster in traditional moribund
industries

22. Where Would You
Rather Eat?

23. Five Guys
Fluorescent Lighting
Formica Tables
Fast Food Feeling
Crowded Tables

24. Smashburger
Red Color
Harsh Lighting
Cookie Cutter Franchise Layout

25. Little Shanty
Warm Colors
Stadium Kitchen
Family Style Seating
Soft Lighting
Eclectic Tables & Chairs

26. Giving Back
• Buy one Give One
• We donate to the Community FoodBank of
NJ every time a guest buys a meal
combination
• To date over 13,000 meals donated
• Creates a golden halo for the brand
• Anchors the brand to the local community

27. Social Media & Loyalty
• Extremely Active on Blog, Facebook, Twitter
and Foursquare.
• 750 Facebook Followers
• Perka Loyalty App Launched Spring 2013
over 200 subscribers.
• More than 2,600 customer visits
• 400 email list subscribers

28. We are Creating a Rabidly Loyal Fan Base
& Executing When the Guests Visit our Store
•
For me and my wife, everything about this place is outstanding. Better-than-Five-Guys burgers, the fries and chips are to
die for, outstanding shakes, even the interior design is great. The service is always good. I love this place and REALLY
want them to succeed.
•
Awesome. Food is great and atmosphere is inviting (love the industrial look and feel) Grandma's fries are simply spectacular! Staff is very
friendly and welcoming, especially the one man (i believe he was the owner?)
I really like the idea of ordering at the counter and then sitting down and having the food brought to you, wasn't sure if i should have left a
tip... so i did.. lol.
I definitely recommend this place, and definitely get the fries when you go!
•
I got take out at the Little Shanty last night and let me tell you I am definitely pleased with my meal!I ordered two sets of three sliders and
•
I will be meeting this burger again- either in my dreams or during my next visit. I picked up the Livingsocial for this place
that gave a friend and me a burger, drink, and fries of our choice. Some of the really cool perks of this place- unlimited
toppings that include avocado and jalapenos, a burger bill of rights and Tabasco at every table, and above all a
partnership with the Food Bank of NJ
•
“The food is delicious and bursting with original combinations of flavors. Little Shanty is decidedly not fast food. It is a
welcome addition to an area lacking good food choices. I’ve eaten here twice and both times the food was excellent.
The fries are the best I have ever eaten.”
•
“Hey moms I’d like to send a special shout out to Little Shanty, a new healthy alternative to a local burger joint in Warren.
They are doing amazing things down there with homemade/handmade FRESH, food. Many healthy food options, a fun
environment with a philanthropic mission.”
a burger for me and my two kids. Everything was cooked to perfection and the burgers had a nice spice-flavor to them. The
brioche buns were fresh and delicious. The thing that I was most impressed by was the freshness of the toppings: I got lettuce,
tomato, onion and pickles on my burger and they were all super fresh- im talking not even a spot on the lettuce!Overall a great
meal and next time i'll try to eat in- but i'll definitely be back!

29. Customer Feedback
Living Social
Groupon

30. restaurant.com survey results
How would you rate the quality of the food?
AVERAGE SCORE: 4.63 out of 5
How would you rate your overall dining experience at Little Shanty?
AVERAGE SCORE: 4.62 out of 5
1 (Poor)
1 (Poor)
0
0
2 (Fair)
2 (Fair)
0
0
3 (Neutral)
3 (Neutral)
0
1
4 (Good)
4 (Good)
10
8
5 (Excellent)
5 (Excellent)
17
17

31. Growth Initiatives
•
•
•
Delivery -- slated to begin October 2013
Breakfast -- menu development in progress now
Little Shanty Kiosk at TD Bank Park Home of Somerset Patriots
(Independent Minor League Baseball Team) Summer 2014
•
•
•
•
•
•
2012 Attendance over 525,000
Mobile Food Truck for corporate catering & events
Basking Ridge Little League Snack Shack -- 2013 Gross Revenue 100m
Expansion of Live Music Programming
Merchandising (T-Shirts, Toys, Hats, BBQ Rub & Sauce)
Packaged Sales of Potato Chips, Guacamole, Mango Salsa, Bruschetta &
Other Proprietary Recipes

32. Operational Levers
Food Costs
Labor Costs
Operating
Costs
Identify unnecessary
expenses & improve
process control to
drive operating
profit

33. Financial Outlook
•
•
•
•
•
•
•
•
Gross Margin Steadily Improving
Selectively Increased Prices
•
Working with Vendors to Reduce Food Costs
Eliminated several positions
Reduced working hours for numerous employees
Performing energy audit to reduce utility costs
Eliminated free employee meals
Eliminated costly promotions
Monthly Breakeven reduced to $54,000

34. Tactical & Strategic Challenges
•
Tactical
•
•
Strategic
•
Find Source of
Capital
•
Improve Gross
Margins
•
•
•
•
Drive Top Line
Growth
Market Brand to
Potential Investors
Improve Internal
Controls
•
Identify Secondary
Locations
Reduce Labor Costs
Reduce Promotions
and Discounts

35. Why Warren?
• High Per Capita Income
• Mix of Commercial & Residential
• Few Quick Service Restaurants
• High Traffic Location Between 78 & 22
• Small Footprint
• Comparatively Low Rent

36. Projected Financials at Scale
• Gross Margin 70-72%
• Labor 25%
• Operating Expenses 28%
• EBITDA = 19%
• At scale the Warren Store should reach
$950,000 in sales

37. Conclusion
•
•
•
•
Exploiting New Market Space
•
Executing quality product & quality service delivery
Brand Concept Resonates with Guests
Food Resonates with Guests
Intentionally limited risk by choosing Warren
location