1. n. the capacity to live, grow & develop
Krystal Daibes. Melissa Grelli. Galen Mittermann. Jonathan Riddle.
2. Sweetgreen
M Street-Washington DC M Street-Washington DC
Dupont-Washington DC Bethesda, MD
3. Vitality Team
ths
streng
product development
marketing/sales
branding
graphic design
finance
gaps
team will be consulting
with real estate, nutrition,
and food experts from
the industry
4. V i · T A L · I ·T Y
• Who We Are •
The mission: deliver healthy meals using 100%
natural ingredients to people on the go while
implementing sustainable business practices
• What We Do •
Provide an alternative to traditional, greasy QSRs
• Why We Matter•
Because there is untapped market potential and a
way for Vitality to differentiate itself with unique
product offerings
• Who We Matter To •
The health conscious and time sensitive consumers
as well as families
5. Vitality’s Value Proposition
“For the health-conscious consumer who wants a fast healthy and nutritious meal, Vitality is
a quick service restaurant that provides healthy, natural and sustainable products. Unlike
other quick service restaurants that have processed and unhealthy meals, our meals
improve health and come from natural, locally-sourced farms for only a slightly higher
premium.”
Total investor funds are forecasted at $340,000
6. Vitality: A Healthy Solution
to live, grow & develop
3 Seeds to Success
Operations
Location
Menu
7. Operations
Serve as many customers as possible & drive sales
1) Volume based business
2) High transaction speed
3) Continually work on process
improvement:
-ordering
-food prep
-packaging
-final order
-assembly
8. Operations Continued
-Vitality’s limited menu reduce costs and
help control quality
-Interactive touch screen will help
differentiate Vitality as well as allow our
drive thru to thrive
-Technology platforms that allow customers
to order online or through an Iphone/
Blackberry application
9. Marketing Mix: Place/Location
Open first location in Portland, Oregon with future expansion plans for this local market
Strive For:
Customer convenience
Easily accessible by foot & car
High traffic area
In-Store Presence:
-Eco Friendly approach to in store design
-Decor and Flooring--recycled
goods (unique dining experience)
-Drive-thru with a user friendly kiosk
(Nextep & MRI Touch Screen) for our
drive-thru operations
10. Marketing Mix: Product/Menu
Dedicated to serving great tasting “healthy” meals with 100% natural ingredients
Attributes: fresh, natural, and organic.
Mintel: 49% of adults surveyed
reported “freshness” as the
most important decision when
ordering food, followed by fat,
calories, and natural non-
processed ingredients
Oregon customer
questionnaire
“Quality” was ranked as
extremely important
Speed, Price, and
Convenience were ranked
as important
11. Marketing Mix: Product/Menu
Align with: fresh, natural, sustainable
Product Development Strategy Packaging
-Two Main Product Lines: -Biodegradable containers and
utensils
1. Salads (wraps)
2. Greek Yogurt (fruit & -Nutrition endorsed and
nut add-ins) transparency with regards to
ingredients and nutritional
-Allow for customized orders content
-Menu names will be distinct to -Future opportunities to
OR augment the product and Vitality
revenue streams
Leverage freshness & customizable options
12. i·Tal·i·T y
n. the capacity to live, grow, and develop
The Vitals The Essentials
Crescent Caesar $5 The Oregonian $7
Romaine lettuce, chicken, croutons, parmesan Romaine lettuce with chicken, mandarin oranges,
cheese, and caesar dressing. carrots, won tons, and sesame ginger dressing.
The Cobb $6 Sweet Grape $7
Romaine lettuce with avocado, turkey bacon, Spinach, grapes, chicken, candied walnuts, and
grape tomatoes, chicken, and honey dijon and red wine dressing.
dressing.
Track Town Special* Prefontaine Classic $8
1. Choose: spinach, arugula, romaine Romaine lettuce and arugula, black beans, chick
2. Up to 5 add-ins ($1): black beans, chick peas, peas, beets, broccoli, avocado, egg, almonds,
broccoli, beets, edamame, avocado, cucumber, chicken, and olive oil.
egg, corn, cherry tomatoes, carrots cucumber,
mandarin oranges, almonds, candied walnuts,
crispy wontons, croutons, feta cheese, goat Blazin’ Bachelor $8
cheese Romaine lettuce, avocado, black beans, cherry
3. Add Protein ($1) chicken, tofu, tuna, turkey tomatoes, cucumber, almonds, chicken, and
bacon ranch dressing.
4. Balsamic vinaigrette, red wine, caesar, ranch,
olive oil, sesame ginger, honey dijon *All salads can be made into wraps
*starts at $6
·
greek yo
greek yogurt.
Choose 2: Almonds, Granola, Candied
Walnuts, Apples, Grapes, Strawberries,
Pear, and honey
$3
Bottled Water $1 Soy Milk $2 Fuze Drinks $2
13. Marketing Mix: Promotions
Traditional Media Social Media
Principle news outlets Facebook
Advertisements in local
Twitter
papers
TV & radio ads Company Blog
Tactics
-Utilize social media to communicate special promos and
incentivize people to eat Vitality
-All menu offerings endorsed by certified nutritionists
-Frequent Vitality card that has 10 unfilled trees on one side and a
health or sustainable fact on the other side
-Annual online contest in May (‘Sustainable Month’) in which
customers submit and name their salad creation
14. Marketing Mix: Price
-Value pricing strategy
-Affordability is a key factor, but we expect to sell at a
premium to traditional QSRs
[Mintel: $4.77-QSR (2009)]
-Food costs will not exceed 35% of the sales price
-Suppliers include: local farmers for produce and UMIF
(natural foods distributor) for protein items and yogurt
-Estimate Vitality salad ranging from $6-9, depending on
the complexity and ingredients and yogurt $3 with the
option of two fruit or nut add-ins
15. Vitality’s Financials
· Initial Costs
o First Phase: personally financed
o Phase 2: $124,558
o Phase 3: $214,127
· Assumptions
o 23 customers/avg. hour sales = $496,800 initial sales
o 1400 sq. ft. location at premium price of $48/foot plus $18/
foot
· Return
o IRR of 31%, plus position to franchise
o Year 5 earnings of over $160,000 with above 10x industry
average P/E
18. Vitality Milestones
Prove Raise Add Expand Break
our
concept
Q2 Y1 capital Q3 Y1 new
location
Y2 Y3 our client
base
Y2 Even
19. V i · T A L · I ·T Y
We life fast lives & want fast food but we also want to eat healthy.
America’s Fast Food Problem Vitality’s Solution
Red Ocean Blue Green Ocean
-Approx. 500,000 restaurants in US -Healthy QSR (imagine Cafe Yumm with a
combined revenue $400 billion drive-thru)
-Highly fragmented (full and limited -Offer a diverse menu with health at the
service (QSR and fast casuals) core of our products
-200,000 QSRs combined annual revenue -Core target audience: parents and
$120 billion health-conscious consumers on the go
-Current QSR establishments provide -Emphasis on lunch sales as this
unhealthy food to patrons accounts for the majority of QSR sales
20. Hoover: US Restaurant Industry Overview
http://www.hoovers.com/fast-food-and-quickservice-restaurants/--ID__269--/free-ind-fr-profile-basic.xhtml
500,000 restaurants Highly fragmented (FSR and limited service
combined annual revenue $400 billion (QSR and Fast Casuals)
National Restaurant Association (NRA)
Approximately 200,000 QSRs with reports: “A typical fast food restaurant
combined annual revenue $120 billion generates $670,000 annually and a
franchised one, $1 to $ 2 million
21. IBIS-Fast Food Restaurants Key Statistics
http://www.ibisworld.com.libproxy.uoregon.edu/industry/executivesummary.aspx?indid=1676
KEY FACTS
The top 5 players account for 41% of industry revenue:
- McDonald's Corporation
12.7%
- Yum! Brands, Inc.
9.7%
- Wendy's/Arby's Group, Inc.
6.6%
- Starbucks Corporation
5.9%
- Burger King Corporation
5.1%
22. Mintel Reports: QSR Usage & Frequency
http://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393467/display/id=477525#hit1
Base: 1,884 internet-using adults aged 18+ who have used a restaurant in the past year, May 2009
“In the past three months, how many times have you eaten at, picked up food from, or have had food delivered
from each of the following restaurants?
Restaurant Usage % Frequency #
McDonalds 66% 3.5
Subway 54% 1.9
Burger King 46% 1.4
Wendy’s 43% 1.4
KFC 46% 1.1
23. Mintel Reports-Ingredient Attributes “Healthy Meal”
http://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393496/display/id=460714#hit1
Base: 1,726 adults February 2009
“When it comes to choosing a ‘healthy meal’ at a restaurant, which, if any, of the following are the most
important to you in your ordering decision?”
Fresh Ingredients 49%
Less Fat 39%
More Vegetables 29%
Lower Calories 26%
Made with natural, non-processed 23%
ingredients
Less Sodium 20%
Smaller Portions 17%
Less Sugar 11%
More Fruit 10%
27. NE Milestones
Proven Our Concept: Q2 Y1
We believe that we will be able to prove our design and concept by the beginning of the 2nd quarter of year 1. At this point NE
will have successfully entered the market by opening its first store in Portland, Oregon.
Raise Capital: Q3 Y1
By the beginning of the 3rd quarter of year 1, we will have access to $300,000.
Expanding our Client base: Y2-Y3
During years 2 and 3 we will strengthen our business model. We intend to increase our client base by adding more locations,
improve our product offerings, and establish good relationships with current and potential clients.
Achieving Breakeven: Y2
We intend to break even by year 2.
Exit Strategy:
As a startup company we must take into consideration a viable exit strategy for NE. If our we are unsuccessful, we will sell our
business to another competitor looking to sell healthy fast food offerings
28. Defending the Brand
Customers are trading down from fast casuals to quick service
Current QSRs are trying to offer more nutritious and premium meals
Vitality Brand
-First mover advantage
-Current competitors in the
marketplace will need to
redefine their image and brand
-New entrants will simply be
unauthentic NE imitators
