mocha directional concept

MoKa Kafe Directional Concept

Sherif Afifi

Prepared by Sherif Afifi

MoKa Kafe Company Profile

Sherif Afifi

Menu Reengineering & planning

Menu Analysis & Profitability

Using The Menu for Decision

making

Menu Planning & Design

Using the Menu For Budgets & Ratio Analysis

Menu Analysis & profitability

The only real way to maximize

profit from a menu is to:

• ANALYSE the SALES performance of

each menu item over a period of time.

Menu Analysis & profitability

How should menus be evaluated

• To determine whether the “right”

menu items are being sold?

Menu Analysis & profitability

By answering the two BIG Questions

Is it PROFITABLE

for my business?

Is it POPULAR

for my Customer ?

Menu Analysis & profitability

NOT Popular BUT

Profitable

NOT Popular &NOT

Profitable

Popular BUT NOT

profitable

Popular &

Profitable 4 ways to classify Menu Items

Menu Analysis & profitability

Low Profitability High

Po

pu

lari

ty

Low

High

Hot Drinks

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

-2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00%

Co

ntr

ibu

tio

n

Menu Mix %

Chart Hot drinks

Pricing Objectives

1. Target sales volume

2. Avoid price competition.

3. Influence competitive pricing

4. Profit maximization

5. Maximize return on investment

6. Achieve optimum cost, sales volume, price and profit.

7. Assure short term survival

8. Achieve target growth rates for profit objectives

Pricing Strategy • MoKa pricing will be comparable to the competition,

but with the value-added feature of immediate thru service and convenience.

• Our food and drinks options are priced to give us an attractive margin while at the same time offering value to the consumer.

• We want repeat business.

• We also want the experience to remain fresh

Our Pricing Tactics

• Maybe what will make big money for you is a small change in what you're offering. One of the tactics shows you how to break down what you're selling into pieces of value -- then how to build it back up into a product worth much more than previously.

• Maybe it will be a pricing tactic that shows you how to reposition your product in your customers' minds. If you change their perception of your value to them - they'll be happy to pay more

• Our brains are set up to notice some things in our environment and not others -- even when they're right in front of us.

• For example, you've probably already noticed that many merchants price at 9.99 instead of 10. Those who have tested the two prices have found that they can increase orders 5-15% by dropping that penny.

• We are less In prices than Starbucks by -17% and we are more than Dr.Cafe by 17%

Price Elasticity

• Price Elasticity of Demand is a measure of how responsive demand is to a change in price. If a price change leads to a considerably bigger change in quantity demanded, we would consider the good to be responsive to a price change: hence elastic. If, however, a similar price change leads to a much smaller change in demand, we would consider it inelastic.

• To get a more precise measure than this of the responsiveness to a price change we can calculate a value for price elasticity of demand. We use the formula:

PRICE ELASTICITY OF DEMAND = percentage change in demand

percentage change in price

Price Elasticity of demand

Price

Demand

Quantity

The strength of the brand will

affect the elasticity

MoKa Kafe

Menu Board Items

MoKa Kafe Cold Drinks Reg Med Large

1 Ice MoKa 11.99 13.99

2 Moka Smoothies 11.99 13.99

3

Ice Latte 11.99 13.99

10 MoKa Klassic 11.99 13.99

11 Ice Kappucino 11.99 13.99

9 Ice White ChoKolate 11.99 13.99

10 Toffee Koffee 11.99 13.99

11 Ice White ChoKolate 11.99 13.99

12 Ice Kappucino 11.99 13.99

13 Almond MoKa 11.99 13.99

14 Irish MoKa 11.99 13.99

15 Persian 11.99 13.99

16 BlacK Forest 13.99 15.99

17 RocKy Road 13.99 15.99

Bottled Drinks

1 Beer 3.99

2 Bison 3.99

3 Bison Diet 3.99

4 Cade Blue 3.99

5 Cade Pink 3.99

6 Cade Green 3.99

7 Cade Red Grape 3.99

8 Cade Cranberry 3.99

9 Cade Apple 3.99

10 Mineral Water 1.99

MoKa Kafe Pastries

1 Original Glazed 5.99

2 Strawberry Glazed 5.99

3 ChoKlate Glazed 5.99

4 Cinnamon Apple Filled 5.99

5 Karmel Kreme Krunch 5.99

6 MoKa Muffin 5.99

7 Blueberry Muffin 5.99

8 ChoKolate Muffin 5.99

9 Cheese Kroissant 5.99

10 Butter Kroissant 5.99

11 ChoKolate Kroissant 5.99

13 Date Pinwheels 1.99

14 Cheese Cake Ring 5.99

15 CooKies' 1.99

Bagels Sandwiches

Bagels Sandwiches

MoKa Kafe Food Items

Bagels Sandwiches

1 Colorful Shrimp Spread Bagel 9.99

2 Artichoke Cream Cheese Spread 7.99

3 Olive Paste Bagel 7.99

3 Vegetable & Cheese Bagel Sandwich 7.99

5 Blue Cheese Pecan Spread 7.99

6 Mini Bagel Sandwich 5.99

Sandwiches

1 Four Seasons Sandwich 15.99

2 Smoked MacKerel Sandwich 15.99

3 Smoked Salmon Sandwich 17.99

4 Roast Beef With Blue Cheese 13.99

5 Roast Beef 13.99

6 Caesar ChicKen 13.99

7 Panini Sandwich Cheese 11.99

8 Panini Sandwich Tuna 11.99

9 Panini Sandwich TurKey 11.99

10 Falafel Rolls 7.99

11 Tuna Sandwich 9.99

12 ChoKolate & Halawh Sandwich 11.99

Salads

1 Potato Salad 9.99

2 Italian Salad 9.99

3 Greek Salad 9.99

4 Beans Salad 9.99

5 Vine Leaves 9.99

Pizza

1 Pizza Pepperoni 19.99

2 Pizza Mushroom 19.99

3 Pizza Margarita 19.99

Hot Drinks Menu Board Images

Cold Drinks Menu Board Images

Desserts Menu Board Images

Food Items Menu Board Images

Menu Flyer

Menu Flyer

Our Strategy MoKa's strategy is to show people that it has an excellent product and convenient accessibility.

To execute on this strategy, Mocha is placing the Drive-Thrus and

Mobile Cafes at easily accessible locations throughout the country. MoKa is pricing its product competitively and training the production staff to

be among the best Baristas in the country. Then, through coupons and display ads at the locations, In so doing, Mocha has: 1. Provided a customer with a quality product at a competitive price. 2. Provided the customer with a more convenient method for obtaining their

desired product. 3. Provided the customer direct -mailing programs and community involvement

programs

Site Selection Strategy

Price

Traffic

Accessibility

Size/expansion options

Potential evolution of the neighborhood

Safety and security

Image of the neighborhood

Duration of Lease

Lease/terms

Visibility

Site Selection Strategy

• • Company Locations and Facilities MoKa Kafé International will open ten-eleven facilities on Riyadh over the first year. Twenty five or more facilities will be placed throughout KSA over the next three years.

The demographic and physical requirements for a location are:

1. Traffic of 40,000+ on store side. 2. Traffic of 20,000 + for the malls. 3. Location Evaluation Form To exceed 75% 4. Visible from roadway {Drive –Thru, In-Line}. 5. Easy access with light if less than 30,000 {Drive –Thru, In-Line}. 6. Suitable capacity for customers {In-Line } 7. Established retail shops in area. 8. To meet the Break-Even point in the second year of operations 9. By the third year of operations to achieve 15% net profit.

Feasibility Study For Locations Because a feasibility study serves as the foundation for the Business Plan, we cannot develop a Business Plan for a project unless we have

conducted a feasibility study. . Our work includes the following:

Site Analysis, Data Collection and Research gather data necessary in developing key operating assumptions, and review the potential site(s). We review local competition in the market area, identify characteristics and sources of customers, and look to establish a basis for expected demand through identification of potential traffic generators. Our analysis includes area demographics, area business and industry, area colleges, construction activity (residential and non-residential) and traffic counts and patterns.

Along with a study of the potential demand for the facility, an analysis of the competition is also undertaken. Our competitive analysis includes a profile of area cafes and their offerings and an assessment of market opportunities discovered in the competitive research along with the strengths and weaknesses of each.

Development of Assumptions and Revenue Projections The information developed above is used to estimate the proper size of the facility and the cost of its development. We then prepare operating projections for the facility; revenue estimates are based on seasons, periods, anticipated customer counts and anticipated check

averages. We consider all revenue centers established in the work described above. Sales are estimated for three scenarios; worst-case, best, and most-likely. In addition, we project the facilities' staffing requirements along with the project's labor cost. We will prepare pro forma income and expense statements for the first year of operation. We then proceed to refine the preliminary estimates in order to determine an appropriate budget for construction .

Profit and Loss Statements and Break-Even Analysis During this phase, we develop a potential break-even sales level for the facility and conduct sensitivity analysis of key cost variables in order to determine changes in profits resulting from future escalation or reduction in operating costs. We also provide a detailed Profit and Loss Statement for the first 3 years of operation using the "Most Likely" scenario developed above. We also establish an appropriate level of Capital Expense based upon the scope of work required and potential return on investment. Feasibility Studies

The Break –Even Analysis For The Business

2,000,000-

1,500,000-

1,000,000-

500,000-

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1 2 3

Ba

lan

ce

Years

Break -Even Analysis

Break even point

Site Selection Process

Mocha Org. Structure After 3 Years

Process Structure

Chairman

M.D.

General Manager

Finance Manager

Chief Accountant

Cost Controller

Operations & Training Manager

Area Manager

Outlet Managers

Equipment Care & IT Specialist

Marketing Manager

Corporate Events Sales

Exec

Purchasing Manager

Warehouse/Site Manager

Thank You