I. EXECUTIVE SUMMARY One- to three-page description of the project II. PROBLEM List the top three problems your product/service is addressing.The Gram’s Kitchen offers outstanding services that will be able to address the current problems in the area. In AREA, there are no restaurants with an ethnically diverse kitchen, few places for people to expose themselves to different cultures, and no restaurant that grants the opportunity to enjoy a true home cooked meal. With a goal of enhancing the community, the Gram’s Kitchen offers a direct solution to these problems. First, most restaurants have type of food they serve whether it is Chinese, American, or Italian. By opening the Gram’s Kitchen, there would be a place to enjoy food from all over the world. Because our location is in an ethnically diverse neighborhood, we would be bringing the community together to share a variety of foods. In addition to enhancing the community with culturally diverse foods, we will be able to address the problem of lack of opportunity for others to share their culture. At the Gram’s Kitchen, all of our chefs will be grandmas from all around the world. These grandmas will be able to share their story of how they ended up here through their food. Not only will this be a great opportunity for the elderly community, the guests will love to expose themselves to other cultures through their dining experience. Lastly, there are no other restaurants that offer a healthy, home cooked meal. With the large number of business people in the city of Chicago, people often struggle to find time to shop and prepare a meal for themselves or their families. The Gram’s Kitchen gives those an opportunity to avoid quick-serve restaurants and replace it with food that will be prepared from the heart of our chefs. III. CUSTOMER SEGMENTS A thorough process that was broken down by market segmentation determined the location of Gram’s Kitchen. A variety of locations were considered, but this location stood out from the rest and met the goals of Gram’s Kitchen. Morgan Schenk and Madison Zeller decided the location by researching the geographic, demographic and psychographic of the Chicago area. Our goal is to have a place available where all ethnicities can come together for a meal. Gram’s Kitchen will have a primary target market of people with an diverse ethnic background and couples. The secondary target market will be millenial business people. Demographic: Geographic: Psychographic: Who are the target customers? IV. UNIQUE VALUE PROPOSITION What is the single, clear, compelling message that states why your product/service is different and worth buying? Our slogan, “Where everyone feels at home” is the message we want to communicate to our target market and guests. The combination between having home cooked meals and grandmas in the kitchen preparing the dishes demonstrates why our products and services are worth buying. When people are in the city, everyone is looking for a place to go out to eat, and business people especially do not want to cook for themselves. Gram’s Kitchen is perfect for people in the city to go out and eat authentic, home cooked meals. It reaches the target market perfectly by allowing everyone with different backgrounds to “feel at home” while dining with us. V. SOLUTION The main problem in the area that Gram’s Kitchen is addressing is the lack of ethnically diverse dining options and no opportunity for a home-cooked meal. By opening Gram’s Kitchen, we are addressing this problem and more. The top three features of our service are we offer are a solution to the need of this type of restaurant, personalized meals with a story, and an environment that feels welcoming and family-friendly. Our restaurant is going to be the perfect location to bring different races and ethnicities together. This area needs a place where people with all different types of backgrounds can enjoy their dining experience for a night out with friends, family or significant other. It is the perfect place to try a new, homemade meal with your loved ones. Every meal will have a different origin as the grandmothers are also gathering from different parts of world. The dishes will be prepared with the stories of their favorite dish they ate growing up or a dish cooked around the holidays in their culture; the server can share these stories to enhance the connection between the guest, meal, and cook. The connection will start as soon as the guest walks through the door. The environment created will attract our target market and keep them returning. They will feel like they are welcomed into our business when we give them great customer service, interesting stories, home cooked meals, and an overall forgettable experience. VI. CHANNELS In order to get our business started and prepared for growth, we will need a strong pathway to customers. We plan to use local promotion to develop a strong pathway between our business and the customers in the community. In the chart below, we have created a plan to spread the word of our business opening in fall and continue to build a brand continuing in the winter months. We want to create awareness and interest through promotion. Our focus within the plan will be sales promotion and social media. Sales promotion is necessary to have different deals that will attract new customers and keep older customers coming back. By advertising on social media, we will be able to reach our target market very effectively. Twitter and Instagram will attract business people, people in the community, and the millennial generation. The displays on social media will be informative, persuasive, and entertaining, so we can gain a good reputation within the community. We will In addition, word of mouth will be an important for aspect of our opening. Our environment and unique features will encourage our guests to share their dining experience with others. Promotional PlanFall OpeningWinter Sales Promotion$4.99 drink specials on Thursdays to go along with our Indian dishesWhen purchasing a $50 gift card, get another $10 bonus card, perfect for the holidays. Direct MarketingDirect mail to our target market highlighting our openingEmails explaining our services and upcoming promotionsAdvertisingCreate Twitter, and Instagram to advertise the opening.Instagram and Twitter postings of pictures the dishes and grandmas.Personal SalesHire people to inform guests at local hotels about the opening by handing out flyers and answering questionsServers inform their guests of current and upcoming specialsPublic RelationsPress Release to newspapers about opening.Online press release on booming success of openingVII. REVENUE STREAMS What is the revenue model and what are the lifetime values? Typical Month:Mon-CloseTuesMexicanWedsChineseThurIndianFridayItalianSatFamily BowlsSunFamily BowlsWeek 1$0300030003000500060004000Week 2$0300030003000500060004000Week 3$0300030003000500060004000Week 4$0300030003000500060004000Week 5$0300030003000500060004000Mexican:DrinksMicheladaA Mexican cocktail made with beer, lime juice and tomato juice or clamatoMargarita Reposado Tequila, Cointreau, fresh lime juice, and a lime wedge as a garnishAgua Fresca Non-alcoholic drink that everyone can enjoy as a refresher, a sweetened fruit drink Horchata Made from the jicaro seeds ground with rice and spices such as ground cocoa, cinnamon, sesame seeds, and vanilla DishesDesert Caramel Flan Creamy custard pastry with a caramel twist Chinese:Drinksqing dou beerTeaDishesDesert Indian:DrinksSugarcane Juice Liquid sap of the sugar cane plant with mildly sweet tasteFeni A spirit alcohol from India that has a fruity taste and smell, but also has a sharp aftertasteLassi A blend of yogurt, water, spices and sometimes fruit to create a savoury drinkDishesTelangana Chicken Curry Chicken cooked with curry leaves, black peppercorn, and coconutParsi Kheema Per Eeda Parsi spiced minced lamb topped with fried runny eggsBengali Dimer Dalna (Vegetarian) Egg and potato curry with tomato, cumin, chilli & turmericDesert Berry Bhapa Doi Bengali steamed yogurt with cardamom and strawberry pureeItalian:DrinksNegroli Campari with gin and sweet vermouth and is served with a twist of orange peel, has a bitter flavor and known for its dark red colorBarbera d’Asti Light-bodied wine with a high acidity giving it a ‘juice’ tastePeroni Light italian beerItalian hot chocolate Thick hot chocolate that isn’t too sweetDishesFarro Pappardelle with mushroom bolognese Farro noodles with a light tomato sauce and chopped mushroomsSeafood StewWine tomato broth with squid, mussels, clams, and shrimp with fresh parsley, lemon peel, and garlic as a garnishFarro Zucchini Cakes (Vegetarian) Shredded zucchini, breadcrumbs, green onions, and whole wheat farro served with a red pepper sauceDesert Zuppa Inglese Alternating layers of the cookies or sponge cake and pastry cream; then finished with a layer of meringue, sliced almonds, or shaved chocolate.Family Bowls: We are taking the most popular meals and putting them into family “bowls” $23 per semester. Bowls include the main meals from two types of our most popular dishes. VIII. COST STRUCTURE What are the customer acquisition costs, distribution costs, human resources costs and other additional costs? IX. DETAILED FINANCIALS A. Projected income and expenses 1. Projected income statements by month for the first year’s operation (sales, expenses, profit loss) TotalRevenueFood SalesGross ProfitExpensesFood ExpensesAdvertising Community ServiceInsurance(liability and property)Legal and AccountingMaintenance Employee Payroll$10 per grandma plus tips ServersPayroll TaxesLoanSalaryManagersSalary Tax Sales TaxesSuppliesUtilitiesMiscellaneousTotal ExpensesOperating ProfitNet Profit2. Projected cash flow by month for the first year’s operationJanFebMarApriMayJuneTuesdayWednesdayThursdayFridaySaturdaySundayTotalRevenueJuly AugSpeOctNovDecMondayTuesdayWednesdayThursdayFridaySaturdayTotalRevenue 3. Projected balance sheet, end of first year Balance Sheet Year OneAssetsLiabilitiesStockholders EquityLiabilities Equity4. Projected three-year plan Three year planYear OneYear Two(10% increase)Year Three(15% increase)RevenueGross ProfitExpensesAdvertising Community ServiceInsuranceLegal and accountingMaitainencePayroll Payroll taxesLoanSalarySalary TaxSales TaxSuppliesUtilitiesMiscellaneousTotal ExpensesNet Profit5. A brief narrative description of the planned growth of the proposed business, including financial resources and needs Start Up CostsFirst Months Rent$3,750First Month Utility-including internet and phone services$2,500Restaurant tables and furniture $40,000Tableware, utensils, dishes, kitchen, and bar equipment $80,000Initial supply of food and beverage $8,000Total Start Up $134,250B. Proposed plan to meet capital needs 1. Personal and internal sources 2. Earnings, short-term and long-term borrowing, long-term equity 3. External sources 4. Repayment plans LoanTotal LoanDown Payment Amount of money being loanedMonthly Payment5. Plan to repay borrowed funds or provide return on investment to equity funds X. KEY METRICS Sales revenue: Sales revenue needs to be watched closely because we need to correlate our sales to advertising campaigns, price changes, seasonal forces, competitive actions, and production costs. In addition, we must watch and measure our return on investment asset turnover ratio in order to make sure we are where we need to be. We can use these numbers to compare with other companies and find trends. To find our measure sales revenue, we take our income from customer purchases of goods and services, minus the cost associated with things. Customer loyalty: We are going to be measuring customer loyalty because we know it is a key component for success. If we are able to attract the right customer, we can get them to come again and bring even more people to our course as they spread the word and this is how we will build our loyalty within the community. In order to measure satisfaction, we will conduct customer surveys, have direct feedback after their meals, and complete purchase analysis. We will do these regularly to explore patterns and produce solid conclusions. According to Fred Reichheld and other experts, a 5% improvement in customer retention will yield between a 20 to 100% increase in profits across a wide range of industries (Zwilling, 2011).Cost of customer acquisition: The cost of customer acquisition is simply the cost of acquiring a new customer found by dividing total acquisition expenses by total new customers over a given period. We hope that overtime the cost of acquisition goes down as growth and your brand image goes up through marketing and sales. Because promotional is a key role in our plan, we need this to determine whether your marketing and advertising investments are paying for themselves. Monthly profit or loss: We have created a projected monthly profit; however, we need to measure to see how accurate we were. Profit is important in the first year of business as we develop or strengths and weaknesses. By measuring our profit, we will be guided in the right direction to obtain maximize growth. XI. COMPETITIVE ADVANTAGE The Gram’s Kitchen major competitive advantage is the uniqueness of our service. There are a variety of places to eat in Chicago; however, Gram’s Kitchen offers something that no other business has. All the food we serve will be prepared by a man or women who is from another country giving every dish a story. This will be beneficial for the grandma’s cooking who get to share their family recipes for other people to enjoy, and our guests will get the opportunity to come to Gram’s Kitchen for a home cooked meal. These qualities cannot be copied which will ultimately lead to success. On top of our services, no other business will have the welcoming, worldly atmosphere we are going to create. The front dining room of our restaurant will represent the culture of Mexican, Chinese, Indian, and Italian through art, music, lighting, and service with an urban appeal. By incorporating all of these countries into our restaurant, it will keep our guests interested in what we are offering, and it will keep them coming back as we offer variation in food origin and energy from night to night.