Sweet Belgian Waffle BUSINESS PLAN

RH-International 2 Eagle Nest Lane

Long Valley, NJ 07853 Tel. 908 684 1998, Fax. 908 684 1112

Skype: rh99international e-mail: rh99int@aol.com

Web: www.rh99-international.com

Table of contents 1. INTRODUCTION .............................................................................................................................................. 3 2. THE PRODUCT................................................................................................................................................. 3

2.1 BRAND NAME .............................................................................................................................................. 3 2.2 STYLING ...................................................................................................................................................... 3 2.3 QUALITY...................................................................................................................................................... 4 2.4 SAFETY........................................................................................................................................................ 4 2.5 PACKAGING ................................................................................................................................................. 5 2.6 WARRANTY ................................................................................................................................................. 5 2.7 MAINTENANCE ............................................................................................................................................ 5 2.8 ACCESSORIES AND SERVICES ....................................................................................................................... 5

3. MARKET – ANALYSIS.................................................................................................................................... 6 4. SWOT – ANALYSIS.......................................................................................................................................... 6

4.1 WAFFLES ..................................................................................................................................................... 6 4.2 DOUGH MIX ................................................................................................................................................. 7 4.3 WAFFLE IRON .............................................................................................................................................. 7

5. NUMBERS.......................................................................................................................................................... 8 A. Making the dough yourself ......................................................................................................................................8

5.1 L26.............................................................................................................................................................. 8 B. Ready-made waffles.................................................................................................................................................9

5.2 L26.............................................................................................................................................................. 9 6. CONCLUSION................................................................................................................................................. 13

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1. Introduction We are presenting you a whole new product, unknown in the States, at least not in the form we offer it. Right now you may think that this is going to be the same as millions of other products but what if we tell you that with a very small investment, you can make hundreds of thousands of dollars? Not possible? Well, take a few moments to go through the next pages and we assure you that at the end, you’ll be convinced!

2. The Product We would like to introduce you to the Sweet Belgian Waffle. For almost a 1000 years, the sweet Belgian waffle is a success. It got it’s contemporary form in AD 1200 when a smith invented a new baking tin. Because his new form looked like a honeycomb, he called it “wafel” (= waffle) because “waffle” in French meant “honeycomb”. Now, 800 years later, they’re sold in numerous outlets all over the world, from Europe over Asia to South America. And when you think about it, that’s not even so surprising…

2.1 Brand Name The waffles are called Sweet Belgian Waffle because, in contrast to the Belgian waffles everybody knows, they contain sugar. The Belgian waffles are in fact Brussels waffles and the Sweet Belgian Waffles are the Liège waffles which is a total different thing. In America the Brussels waffles are served as breakfast together with eggs, bacon or sweets like strawberries, whipped cream… The Sweet Belgian Waffle however is served on its own, possibly with toppings but nothing else. So, because it’s a Belgian Waffle but made with pearl sugar, we call this the Sweet Belgian Waffle.

2.2 Styling The size of a Sweet Belgian Waffle is 6 x 4 ½ inches and it’s approximately 1.3 inches thick and it weighs approximately 5 oz. A Sweet Belgian Waffle can be distinguished from a Belgian waffle by the number of holes, namely 24. It has a firm structure but because the dough is light it’s easy to eat. The firm structure is perfect to allow it to be served with toppings going from ice cream to chocolate to whipped cream,…

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2.3 Quality The quality of both the iron and the dough is very high. The dough mix is directly imported from Belgium where it is made conform a long tradition of inheritance from father to son for over 60 years. It has a shelf life of 14 months and it is transported in the best possible conditions to ensure that the product arrives here as it would have been made here. Because the waffles are being made on the spot, the timeframe between making the dough and baking the waffles is very little. However, it is possible that you make the dough, bake the waffles in advance and heat them up later on, especially when you still had some dough at the end of the previous day, but this doesn’t cause any problems. After heating the waffle up for 30 seconds, it is ready to be served and will taste as fresh as it would have been made on the spot. The waffle irons are handmade in Belgium. They’re pure craftsmanship. We have two versions, the “A57” which is a 4 waffle iron and the “L26” which is a 2 waffle iron. Our waffle irons are patented and are conform to the rules of the National Sanitation Foundation. The irons are made from cast iron, in contrast to the machines in the USA which are made from aluminium. The advantage of cast iron is that it contains the heat and as a result, the waffles are baked. Aluminium however loses heat so after the first couple of waffles they aren’t baked anymore but more boiled which gives them a lesser nice taste. The heating of our irons is transported through a copper plate which has the advantage that the heating is spread equally over the whole baking plate so the waffles are equally heated and browned

2.4 Safety Whenever you’re dealing with hot products, there is a possibility that someone hurts him- / herself. However, as mentioned before, our waffle irons are conform to the NSF regulation which means that they have been approved and recognized as safe for the American market. The critical parts of the iron are covered in Bakelite which is a nonconductive and heat-resistant material and therefore, irrespective of the temperature of the iron, it won’t heat up.

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Of course, people can’t be cautious enough so, with every iron, we provide insulated gloves and in the manual we included a non exhaustive list of the dangers. On top of the NSF regulation, our electric components carry the UL certification mark for the US. This means that the UL, “Underwriters Laboratory”, has tested it and that it meets their requirements for safety.

2.5 Packaging The waffle irons are transported in wooden boxes. The dough is packed up in different materials to assure that they are transported in the best possible way.

2.6 Warranty Because we know our irons are from the best material we offer a 20 year warranty on the baking plates. The electric components have a one year guarantee.

2.7 Maintenance The maintenance of the irons is very easy. The only thing that has to be done is clean it every day after the waffles are made. This takes only 15 min and is easy as pie. The cleaning ensures that the waffles keep their high level of quality so it is absolutely imperative that the cleaning is done properly.

2.8 Accessories and services We have manuals available of…. Of course, we provide you with information going from setting up the iron to baking the waffles to what to do when there’s a problem. If you have any questions concerning the product, don’t hesitate to contact us, RH-International.

RH-International 2 Eagle Nest Lane

Long Valley, NJ 07853 Tel. 908 684 1998, Fax. 908 684 1112

e-mail: rh99int@aol.comWeb: www.rh99-international.com

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3. Market – Analysis The market is fairly new. There exist Belgian Waffles but they are served with eggs, bacon,… as breakfast. The Sweet Belgian Waffle however can be served at any time and you don’t have to sit down to eat it, you can easily walk around with it. Because the Sweet Belgian Waffle is totally new in America, the possibilities to exploit the market are countless. You don’t have to segment to a niche market, you can do whatever you think is best. At the moment there is no substitute, so when the customer wants to eat a Sweet Belgian Waffle, they have only one place to go to, yours.

4. SWOT – Analysis

4.1 Waffles Strengths Weaknesses

- delicious - simple - huge profit - great aroma - can be sold 24/7 - no “waste” - everywhere where there are a lot of people, it’ll be a success - toppings

Opportunities Threats

- increase in sales in combination with other products like ice cream, toppings,…

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4.2 Dough mix Strengths Weaknesses

- fresh - easy to prepare - can be done in advance - great aroma - no “waste” - firm, easy to use - made conform a long inheritance from father to son for over 60 years

Opportunities Threats

4.3 Waffle Iron Strengths Weaknesses

- patented - conform NSF - UL certification mark for electric components - cast iron - 20 year warranty on baking plates - one year warranty on electric components

Opportunities Threats

You may think we’re vain and unrealistic when we’re not listing any weaknesses or threats but it’s just because we didn’t find any.

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5. Numbers The irons are the tools for making the waffles which are the real money-makers. This makes that the initial investment is very low, $2.300 for the 2 waffle iron, $3.300 for the 4 waffle iron. The biggest investment is finding the good location. Every location where lots of people are passing by is good. The more people that pass by the better because 10% will buy a waffle.

A. Making the dough yourself

5.1 L26

(2 waffle iron) Store

# waffles Revenue* Expenditures Profit

Day 10h 12h

200 240

$870

$1.044

$170 $204

$700,00 $840,00

Week (7 days)

10h 12h

1.400 1.680

$6.090 $7.308

$1.190 $1.428

$4.900,00 $5.880,00

Month (4 weeks)

10h 12h

5.600 6.720

$24.360 $29.232

$4.760 $5.712

$19.600,00 $23.520,00

Year (12 months)

10h 12h

67.200 80.640

$292.320 $350.784

$57.120 $68.544

$235.200,00 $282.240,00

* Suggested retail price: $3.75 / waffle + $0.75 / topping Calculation: 8/10 takes topping * Baking 2 waffles takes 3 minutes, handling included

Note: from the final profit calculation you have to deduct the initial investment for the waffle iron, the rent and the taxes. This calculation gives you an idea about the profits investing in a 2 waffle iron can yield.

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B. Ready-made waffles We have a new proposal made for you: when you take our ready-made waffles, you only need to heat them up for 20 seconds and you don’t need as much place as you would when you want to bake them yourself. Plus, when you have a line of 20 people and want to bake the waffles yourself, they have to wait half an hour!!! If you use our ready-made waffles, they only have to wait 20 seconds. Of course, that is with one 2 waffle iron, if you have two irons, that halves the time and you can serve up to 12 waffles a minute.

5.2 L26

(2 waffle iron) Store

# waffles Revenue* Expenditures Profit

Day 10h 12h

200 240

$870

$1.044

$250 $300

$620,00 $744,00

Week (7 days)

10h 12h

1.400 1.680

$6.090 $7.308

$1.750 $2.100

$4.340,00 $5.208,00

Month (4 weeks)

10h 12h

5.600 6.720

$24.360 $29.232

$7.000 $8.400

$17.360,00 $20.832,00

Year (12 months)

10h 12h

67.200 80.640

$292.320 $350.784

$84.000

$100.800

$208.320,00 $249.984,00

Note: the only thing you have to do is heat the waffle up in the iron for 20 seconds

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(2 waffle iron) Fair

# waffles Revenue Expenditures Profit

Day 10h 12h

1200 1440

$5220 $6264

$1500 $1800

$3720 $4664

Week

10h 12h

8400

10.080

$36.540 $43.848

$10.500 $12.600

$26.040 $31.248

10 days 10h 12h

12.000 14.400

$52.200 $62.640

$15.000 $18.000

$37.200 $44.640

* Suggested retail price: $3.75 / waffle + $0.75 / topping Calculation: 8/10 takes topping * Heating up takes 20 seconds Note: From the final profit calculation you have to deduct the rent for your location and the cost

of your stand. This calculation is based on ready-made waffles only.

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Mall / train station / … Each shopping mall has different numbers of visitors a day, week,… Also, each shopping mall has a different rent. In the next calculation we left out the rent. We think that 250 waffles a day is realistic. In the Palisades mall, the three women sell 300 waffles a day from Monday till Thursday and 1200 a day from Friday till Sunday. For the time from Friday till Sunday we think that 1000 waffles a day isn’t exaggerated, of course it depends on how busy the mall is, how many people pass by.

Monday - Thursday Friday - Sunday

1* 2* 3* 1 2 3

Day 12h

300

$1.305

$375

1.000

$4.350

$1.250

Week 12h

1.200

$5.220

$1.500

3.000

$13.050

$3.750

Month 12h

4.800

$20.880

$6.000

12.000

$52.200

$15.000

Year 12h

57.600

$250.560

$72.000

144.000

$626.400

$180.000

*1 = # waffles 2 = revenue 3 = expenditures

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Total Profit

1 2 3 2 – 3

Day

600 $2.610 $750 $1.860

Week

4.200 $18.270 $5.250 $13.020

Month

16.800 $73.080 $21.000 $52.080

Year

201.600 $876.960 $252.000 $624.960

*1 = # waffles 2 = revenue 3 = expenditures

The revenue calculation is based on the assumption that 8/10 people that buy a waffle, also want topping. 2 out of 10 just buy the plain waffle. The expenditures in this table consist only of the expenditures for the waffles. It is based on the assumption that you only sell ready-made waffles because we don’t know if your location will allow you to make the waffles yourself plus our ready-made waffles offer you the convenience of not having to make the waffles yourself and still offer a high-quality product. We calculated 7 days in a week, 4 weeks in a month and 11 months in a year.

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6. Conclusion It’s a whole new product in a fairly new market. It had numerous advantages and is a real money-maker which will increase your primary sales as well as the sales of the products used for toppings. A good location is the key to success, but that won’t be a problem because the location possibilities are countless: shopping malls, train stations, sports games, airports, shopping streets,… in short, everywhere where there’s a lot of people. Once you have the good location, the waffle iron together with the dough mix will do the rest. Together they create one of the finest foods there are available and together with the great aroma, people won’t be able to resist it. On top of that, once they’ve tasted a fresh Sweet Belgian Waffle, they will be hooked on it, tell their friends, family,… and you will profit from it. We told you that with a small investment you could make hundreds of thousands of dollars. Well, we explained our case and now it’s up to you!! Act quick and the competitive advantage is yours!!

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