get into enerprise
TRANSCRIPT
December 2013
Get Into Enterprise - Business Portfolio
Directors : Sharon Gillooly – Legal Director
Willem-Jan Goossens – Innovations & Research Director
Leigh Green – Managing Director
Margaret Michie – Finance Director
Marie Noyer - PR Director
Lex Voorhout– Marketing Director
The Hearty Spoonful
Page of Contents
Title Page No.
Elevator Pitch & Vision 3Executive Summary 3Our Mission 3Business Description 3-4
Concept & Market Research 5
Marketing Strategy 6-11
Legal Strategy 12-16
Financial Strategy & Forecasts 17
Further Business Considerations 18
Summary 18
Appendices:
I Sample Menu & Price List 19-20II Staff Rotas & Hours of Work 21III Supplier Email 22IV Summer Event – Marketing Strategy 23-24V Key Segments – Business Canvas 25VI Financial Statements 26-29VII The Hearty Spoonful Trailer (with logo) 30
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Elevator Pitch & Vision - Keys to Success
There are four keys to success in our enterprise, and as proprietors of The Hearty Spoonful, we intend to work hard to ensure that these keys will give us extra respect in the public eye.
1. Great locations - visibility, high traffic pattern, convenient access.2. Highest quality products - freshest food, cleanest equipment, premium serving containers,
consistent flavours.3. Friendly staff - cheerful, skilled, professional, articulate.4. Finest reputation - word-of-mouth advertising, fun events and charitable giving.
Executive Summary
The Hearty Spoonful is a mobile food vending enterprise taking advantage of a variety of locations in the central Glasgow locale. The Hearty Spoonful comprises of a small mobile unit that provides the highest quality seasonal hot and cold food and freshly squeezed beverages using local produce in a convenient and time-efficient way to the busy commuting Glasgow public. The two manned vending cart shall indulge its customers with portable first class fresh cuisine ranging from hot porridge or warming soups on chilly days to delectable cool creamy ice creams during hot summer spells. The Hearty Spoonful will make the most of locally sourced produce to replenish and satisfy the busiest city traveller. All produce will be served by our fully trained, professional and friendly staff.
Our Mission
The Hearty Spoonful’s mission is three-fold;
Product Mission - Provide customers with the finest quality food and beverage in the most efficient time.Community Mission - Provide community support through customer involvement, supporting local growers/suppliers and maintaining sustainable and ethical practices.Economic Mission - Operate and grow at a profitable rate through sound economic decisions.
Business Description
The Hearty Spoonful offers its patrons the finest hot and cold seasonal foods, making the most of locally sourced (and where possible, organic and fair trade) produce. Our research and marketing strategists have worked hard to ensure that our seasonal offerings cater to the mass commuting population within Glasgow with produce of a high quality and ethical backbone not widely available by other mobile vending operators in the Glasgow area.
The food on offer at The Hearty Spoonful will focus on simple ingredients prepared well to create a clean attractive menu which will vary depending on season and produce available. Our narrow product based menu is divided into ‘am’ and ‘pm’ sessions, with the morning session being available from 7am through to 11am and will serve primarily porridge, however during summer periods will also have a cool granola option instead.
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The lunch menu shall be available from 11am through to 3pm and will consist of two varieties of soup; one option vegan and the other meat stock based. A fresh warm artisan roll shall complete the lunch meal. A choice of dessert will complete the lunch time menu and will consist of warm homemade muffins or mini New York cheesecake. For those watching their waistlines, a small fruit salad is available. For both morning and afternoon sessions, specialty coffees, blended teas, and other chilled beverages will be available, however only non-fizzy healthy fruit juices and water are available from The Hearty Spoonful.
(Please see Appendix I for Sample Menu)
Every month The Hearty Spoonful will have a seasonal ‘special’ either in the beverage (such as a non alcoholic mulled wine or hot apple cider punch, or in the food menu such as roasted chestnuts at Christmas time. During summer months our menu shall incorporate luxury ice creams and chilled coffee based drinks. Using a ‘customer suggestions’ box, we aim to be proactive with our customers and take on board favourite seasonal suggestions; our goal is to satisfy our patrons.
The Hearty Spoonful will focus on two markets:
The Daily/Regular Commuter – a patron travelling to/from work, out shopping, delivering goods or those specifically working in Glasgow Centre. We wish to try to attain regular custom and will offer a reward scheme to loyal patrons. Further information shall be provided in the ‘Marketing Strategy’ Section.
The Tourist – Glasgow Centre is a hot bed of multi cultural exchanges and is frequently used as a stopping point, a meeting point, a transfer point for those travelling further afield on outbound long distance journeys. The Hearty Spoonful offers individuals an original foodie experience that is not offered by any other food retailer in the station locale. Further information shall be provided in the ‘Marketing Strategy’ Section.
The Hearty Spoonful will penetrate the commuter and tourist consumer markets by deploying our mobile facilities in the most logical and accessible locations throughout the centre of Glasgow including George Square, St Enoch Square, St Enoch Centre, Glasgow Green (summer and festival pitch), Buchanan Galleries, Merchant City and also Candleriggs Market.
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Market Research
The Hearty Spoonful is a mobile street vending company that will sell a variety of seasonal foods in a variety of locations depending on the time of the year. In order to consolidate the idea, market research was conducted. This research has allowed us to find out if there is a need or desire for our product.
The Company Directors came upon the idea of commencing a street vending company via a brainstorming session and critical thinking exercise; we discussed products and services from our home towns that we miss in this moment (three Directors are non UK residents). At the end of the session and incubation time we chose to create a mobile food vending company called The Hearty Spoonful.
The Glasgow Daily times reported in July 2013 that there are at least four mobile food vendors operating in the Glasgow locale at any one time, however the exact number of vendors could not be obtained or corroborated. Brandon Kerney, the Glasgow Licence Fee Manager for Glasgow City Council has stated that the majority of food licences have been granted for barbeque vendors. It would appear that the ice cream, porridge and soup vendor within the vicinity is rare and this will be of great benefit to The Hearty Spoonful and our (potentially niche) commodity.
Newspapers, such as the Guardian, The Daily Telegraph and the Western Morning News have all written articles stating that the summer of 2013 was a good year for ice cream sales in the United Kingdom but also advise that the amount of ice consumed by UK consumers is generally decreasing. However, even with this downward trend, consumers are willing to spend more money on specialised ice creams such as Ben & Jerry’s and this is a positive opportunity for The Hearty Spoonful.
To counter balance the ice cream sales during the summer there is also a winter menu. In winter times we will sell soups and porridge. Porridge is back on the menu with a lot of UK citizens after research done by Daily Mail and the Daily Telegraph. It describes that more than half of the UK citizens eat porridge on a daily basis.
The BBC recently aired a documentary about street vending in the UK. Street vending is becoming increasingly more popular due to the easier start up process as well as the fact that a mobile vendor has a fraction of the costs of a static restaurant. The BBC researched hygiene in street vending companies and the results were very poor. Hygiene is something that the Directors of The Hearty Spoonful take very seriously and we will be working very closely with the local authority to ensure that we follow all legislation and hygiene requirements to ensure that The Hearty Spoonful can differentiate itself from other street vendors. For the purposes of verification of information, an interview was conducted with a Dutch restaurateur, who also sells seasonal produce, based within Eindhoven Railway Station. Every day two hundred thousand members of the public traverse the station hall next to the restaurant (which equates to over seven millions visitors per year). The restaurant owner shared his turnover with The Hearty Spoonful Market Research Director and during the high season of summer his daily turnover is approximately £1,600.00 while averaging a daily turnover of between £700 and £800. He advised that even during low season he still makes at least £400 per day.
The Market Research Director is confident that with The Hearty Spoonful will be a viable and successful business and can have market confidence. By making the most of seasonal locally sourced produce, The Hearty Spoonful shall endeavour to have a complete and adaptable menu of the highest quality throughout the year to minimise any ‘high’ and ‘low’ periods.
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Marketing Strategy - Target group & Costumer Segments
The first step of any communication plan is to define the target groups, research the business position on the market and set up objectives.
The Hearty Spoonful has roughly two target groups from Glasgow Centre, which can be divided into different segments:
Recurring visitors
It is estimated that 70% to 80% of the total target group are recurring visitors from Glasgow Central. Representing about 22 / 23 million people per annum.
Commuter traffic passengers
Who? - Young adults / adults (aged 20 to 50) - working in or around Glasgow.
Why? - These passengers use the station with the aim to transport themselves from their place of residence to and from work.
When? - These passengers are active on a daily basis with the emphasis on working days (Monday to Friday). More specific times are especially in the morning between 6am and 10am and in the afternoon / evening between 4pm - 7pm. This group will be less active in periods of school- and national holidays.
How often do they consume? - Although this demographic may be the most common visitor to Glasgow Central, it is not self-evident that this group will be most the likely to purchase from The Hearty Spoonful on a daily basis. The spending limit is indeed small(er) and competition is present in abundance.
Shoppers
Who? – Non business related traffic. Demographic visiting Glasgow’s shopping heart with the intention of making new purchases. This group consists of a diverse audience, both demographically and geographically. Age between 16 and 80, coming from nearby locales or Glasgow City itself.
Why? - With the goal to utilize the diverse shopping facilities of Glasgow. Enjoy a good time (consuming and relaxing).
When? – This populace also be active in Glasgow Centre during working days, they are also active during the weekends and holidays. Moreover, they fill the entire day between 8am to 10pm.
How often do they consume? - This audience is very attractive for our business, as they visit Glasgow with the intention of having good time and to consume. They also intend to spend money and may come into the City with the intention to pamper themselves. Spending average is spacious.
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Families with children
Who? – This group may be comparable with the 'shoppers' group, but there are still significant differences. The formation 'parent with child’, the child often (unconsciously) will be the one in control of consumer purchase decisions.
Why? – Family sightseeing or the possibility of making new purchases.
When? – Most likely during the weekends and holidays (free from school or work commitments).
How often do they consume? - This group has 2 micro segments. One is the parent; the parents will look out more for quality and/or healthy products. The second is children; more likely to be triggered by trends / promotions. If there is a balance to be found here, this segment group will consume with relative frequency and has the potential to become very brand loyal.
Students
Who? - According to figures from 2006 and 2007 of 'The Glasgow Government', Glasgow counts over 74,000 of both secondary and primary pupils and over 50,000 university students, all in the age range of 10 to 25 years.
Why? - Studying in Glasgow and travelling into Glasgow Centre on a regularly basis (i.e. travelling to/from school/college/university).
When? - This group will use the station less frequently than the 'commuter passenger traffic' but an estimated 1 to 3 times during the week. For example students may return to their hometown during the weekend.
How often do they consume? – Most likely due to restricted funding, this group has a somewhat lower spending pattern but does frequently spend money on consumer goods. As this demographic has a tendency to consume regularly external to the homestead, this is an attractive segment to build a brand with.
Non-recurring visitors
In addition to the extensive ‘recurring visitor’ segment, there is also the second target group, the ‘non-recurring visitor’. This group is potentially visiting Glasgow for a shorter period of time. The big difference between the two groups is that the non recurring visitor is very difficult to approach in an early trading stages and it is also difficult to build a customer relationship during a short/single visit. This group will consist mostly out of tourists, but to approach this target group on an advanced level, also this group is divided into two segments.
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International Tourists
Who? - Derived from almost any age and nationality segment.
Why? - Visits Glasgow for leisure or cultural purpose (holidays or business trips).
When? - International tourists visit Glasgow throughout the year but especially during the summer and Christmas periods where there is a measurable tourism peak. In addition, this group will be represented each day of the week.
How often do they consume? - This consumer group is known to have an above average spend. These tourists visit Glasgow with the objective of relaxing and enjoying their holiday often with a larger budget available than local tourists.
National Tourists
Who? - These consumers, from every age group, differ from the international visitor in the sense that Scottish/English is the native language (in almost every case) and possibly a shorter visit is planned.
Why? - The national visitor lives outside the vicinity of Glasgow and visits the city as a form of a city trip. The background of this visit may vary (cultural or entertainment).
When? - The national tourist is to be found in Glasgow throughout the whole year mainly during weekends and the holiday period.
How often do they consume? - This segment also has a wider average spending pattern and is inclined to spend more on consumer goods and entertainment.
Analysis of Market
A Survey Monkey was created and conducted over the initial research period and the following information was gleaned:
Upwards of 26 million commuters going through Glasgow Central alone per year
Tea/Coffee / water / soft drinks and sandwiches are bought the most
53% of all purchases are bought between 11am and 3pm (lunch time)
76% of consumers are happy to pay UP TO £3.99 for a single purchase.
In order to choose our position and set up the objectives, we made a global analysis of the external environment and then an internal one.
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Risk Assessment Analysis of The Hearty Spoonful: Strengths, Weaknesses, Opportunities, Threats (SWOT)
Regards our market positioning, there are two key points:
Positioning by benefits offered:
Soups and ice creams are fast to prepare and serve and also easy to eat. These criterions answer the demand of workers or those in a hurry. Soups are uncommon and will be a unique selling proposition in George Square. Products are adapted to the seasons and temperature and will reflect the needs of the customer. The collection provides entertainment and interest.
Positioning by Price/Quality:
Products are made with locally sourced natural and fresh ingredients; the tourist may find this quality of interest. The unit price will be approximately £4 (depending on item) but guarantees the quality of the good and of the service.
As we are in the introduction phase of the product life-cycle, there are particular goals:
i) Brand awareness
The association of physical characteristics such as brand name, logo or packaging. We will stimulate brand recognition with the use of a logo and packaging in advertising using the same colours and formats. Consumers will be better able to recognize the brand.
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ii) Brand knowledge
The objective of information, brand image and lifestyle positioning. We will show the characteristics and the benefits of the service and products; it is both fast and nutritious.
iii) Brand attitude
The perceived value of a brand to the consumer. The Hearty Spoonful is different from the competition. Our products are nutritious, fresh and local. We have an original concept which is to change the selling proposition according to the seasons. The point of sale is mobile, it is not a formal and static shop and this will take us closer to our customers.
iv) Brand purchase intention
We will make the product attractive to entice future buyers. This could be done by the use of special offers.
The next stage is to choose the tools we will use to catch customers’ attention.
The Hearty Spoonful website and Facebook page are both in creation stage; a Twitter account will also be created, therefore increasing consumer exposure. These tools shall offer an answer to every communication need of the business such as the information, advertising, trade and the exchange with the market. The design and production of these pages has been taken very seriously to ensure the most positive outcome of our brand and selling proposition.
Social Media
On our Facebook page we will publish advertisements, messages and special offers. We will also answer frequently asked questions about our company, our brand, our ethics and our suppliers to establish a good quality service and promote recognizable community spirit through word-of-mouth. To make a website and social pages, a content management system (CMS) is required.
Traditional Advertising
Street marketing will be utilised. We will distribute flyers in the City centre, the Central Station and George Square. We chose crowded places during busy periods to reach a mass of people. We want to personally address and encourage consumers to act and react. We want to make them interested in our product. Direct marketing enables to adapt the speech to the interlocutor and finally to prompt the purchase. Thanks to broads in the city, we will focus on the repetition of the message we want to convince and make the consumers ‘salivate’.
An important question is how we will entice the customer to make a purchase as the customer must feel involved by the activity and participate actively. We have therefore decided to create an original trend to incite the purchase.
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The concept is to include (or not) inside the cups of soups and ice creams a picture about Scotland. It can be a landscape, a symbol, a humoristic or Gaelic sentence. These images will form several puzzles, texts or themes. We will fix the different combinations and explain their senses. According to these, we will offer discounts, gifts or special offers. Consumers will be able to see the possible combinations on the website, the Facebook Page and on a hang poster up the van. During the years, flyers will change and new combinations will be printed back. This animation enables to provide both motivation for the purchase and entertainment. The children will want to ‘play’, students will be interested in discounts and adults will want to create their own collection at home for example. Tourists from all around the world will want to learn about the country through the pictures and their meanings and to take reminders of Scotland. By this way, we will differentiate from the competition and also pick customers’ curiosity.
P.R.
For the opening ceremony, we will use a press release. It can be broadcasted by newspapers, internet, and memorandum or to the radio trough a sponsorship. The idea is to promote an outdoor event in George Square. It will be a simulation of seaside during holidays. This kind of event will help the brand to win notoriety. We want to make a big publicity stunt to attract customers in mass and to get ourselves talked about. (Cf. Appendix for the description of the event).
The promotion of our new activity and product must be organized in the time.
Jan Feb March April May June July August Sept Oct Nov Dec
Flyers
Flyers
Flyers
Preparation Event
Flyers
Event Prep
Press release launch
Event FlyersFlyer
sFlyers
New flyers1
New flyers
New flyers
New flyers
Further information relating to the summer event can be found in Appendix IV.
Logo Description: The playful creation
As one of our key objectives is to be creative by allowing our customers to select their own ingredients, this logo is all about creative imagination. The font radiates a creative ‘open minded’ drawing as does the heart which is in fact drawn by a pencil. The colours are bright and represent love.
Full Business Canvas can be found in Appendix V.
1 New Flyers to prepare the new season11
Legal Strategy
Our business, The Hearty Spoonful is aware that we must meet the following legal requirements in advance to allow the business to operate legally.
Limited company
Our business will be a Limited company which means that it is a company in its own right and is responsible for its own debts. As owners of the company we are only liable for its debts up to the capital that we have invested. The Hearty Spoonful is run by six directors with equal share in the company. Each director is legally responsible for using their skills and expertise to try and make success of the company. The director must follow the rules in the articles of association. They must ensure they are making correct decisions that will benefit the company. If the director is going to personally benefit from transactions from the company, then they must inform any other shareholders. The director must also keep records and report any changes to company’s house and revenue and customs. They must see to that the company accounts are ‘true and fair view of the business’ finances and it is their responsibility to register for self assessment and their own personal tax return assessment every year.
Our food business will be registered with Glasgow City council at least 28 days before trade commences. This allows time to schedule the relevant inspections. The council will send an Environmental Health Officer to inspect our mobile unit and provide a food hygiene rating; therefore we will ensure that we comply with the food hygiene regulations. We have to provide them with the completed food premises registration form. The registration is free and the form can be found at:
http://www.glasgow.gov.uk/index.aspx?articleid=4668
Registration Form this complies with the (Regulation (EC) 852/2004) http://www.glasgow.gov.uk/CHttpHandler.ashx?id=14085&p=0
We have made a decision to sell our food products in a variety of sites in the centre of Glasgow city. To do this we must first apply for a street trading licence from the Glasgow City Council. This is done by application form and each person working would need a licence, the cost of each licence is £62 per year (each). We must get permission from environmental services (Glasgow City Council) for the areas we wish to pitch.
HACCP (Hazard analysts control point) this is a food safety management system. It identifies points during food preparation and production that are critical in food safety. It helps food business operators look at how they handle food and shows them procedures to ensure food is safe to eat. A routine inspection is carried by the enforcement office (in our case Glasgow City Council environmental service). This must be in place to ensure our business is complying with the legal requirements EU food hygiene legislation (Regulation (EC) 852/2004). There is a document CookSafe that is guidance on how to comply with the requirements of the document.http://www.glasgow.gov.uk/index.aspx?articleid=5951
In the UK food handlers are not required to have a food hygiene certificate to prepare or sell food. Although many food businesses prefer they do and The Hearty Spoonful shall comply with this requirement.
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REHISS Elementary Food Hygiene Certificate - City of Glasgow College – all of our staff have attended the one day course at a cost of £55 per person. The Directors of The Hearty Spoonful have decided that this would be the very minimum requirement of training from each of our employees.
Food Hygiene law
Food Standards Agency (FSA) work in conjunction with the Food Safety Act 1990, any amendments to this Act since 1999 mainly apply to Scotland. The FSA Scotland implements food safety and standards policy in Scotland. The FSA work in partnership with local authorities and food hygiene rating schemes. Laws relating to food are not necessarily made under the Food Safety Act 1996; therefore it is important to us that we keep up to date with the FSA Scotland and the requirements. It is their job to ensure food is safe to eat the companies selling it are producing to the required standard. They deal the following issues: food standards, nutrition and diet, general food hygiene, fish, shellfish, milk hygiene. Regulate animal feeding stuffs, and novel foods, radiology safety and emergencies.
A link to the Food Standards Agency code of practice for Scotland: http://www.food.gov.uk/multimedia/pdfs/enforcement/copscotland0903.pdfhttp://www.food.gov.uk/multimedia/pdfs/scottishcoppg.pdf
Employment Law
As our company will have employees we will have a contact of service therefore under the employment rights Act 1996 our common law duties are to provide our employees with pay at the least minimum wage set by the government. We must provide with work (even if we have no work we must still pay wages for their contracted hours). As employers it is our duty to treat our employees with trust and respect, and safety under the Health and Safety at work Act 1979. We must indemnify our employees; insure them against loss and liabilities which could possibly incur while carrying out their work duties. As an employer our employees also have common law duties that must be adhered to these are. To render personal service, this means our employees are not allowed to delegate their tasks to another person. Obedience is where the employee must obey all lawful and reasonable orders given to them. Competence and care they must take care in the execution of their work. Employees must have good faith and work honestly and avoid any conflict of interest e.g. it would be a breach of their common law duties to divulge confidential information. The full Employment Rights Act 1996 is available:
http://www.legislation.gov.uk/ukpga/1996/18/contents
A staff rota has been created to ensure that all staff work the same number of hours and shifts in a four weekly rota. This rota can be found in Appendix II.
Health and safety at work Act 1974
The health and safety at work Act 1974 states that all employers must take reasonably practicable care to ensure the health, safety and welfare of those at work. As an employer we must protect against any risks to the health and safety in relation to the activities of the employees work. We must prevent unlawful acquisition, possession and use of dangerous substances.
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We must control certain emissions into the atmosphere. The main parts of the Act that applies to our business are the duty of employers to their employees and the general duties of the employees at work. I have copied a note of these from the Health and Safety at Work Act 1974: General duties of the employer at work:
(a) The provision and maintenance of plant and systems of work that are, so far as is reasonably practicable, safe and without risks to health; (b )arrangements for ensuring, so far as is reasonably practicable, safety and absence of risks to health in connection with the use, handling, storage and transport of articles and substances; (c) the provision of such information, instruction, training and supervision as is necessary to ensure, so far as is reasonably practicable, the health and safety at work of his employees; (d )so far as is reasonably practicable as regards any place of work under the employer’s control, the maintenance of it in a condition that is safe and without risks to health and the provision and maintenance of means of access to and egress from it that are safe and without such risks; (e) The provision and maintenance of a working environment for his employees that is, so far as is reasonably practicable, safe, without risks to health, and adequate as regards facilities and arrangements for their welfare at work.
General duties of employees at work.It shall be the duty of every employee while at work— (A) To take reasonable care for the health and safety of himself and of other persons who may be affected by his acts or omissions at work; and (b)as regards any duty or requirement imposed on his employer or any other person by or under any of the relevant statutory provisions, to co-operate with him so far as is necessary to enable that duty or requirement to be performed or complied with health, safety and welfare of persons at work, for protecting others against risks to health or safety in connection with the activities of persons at work, for controlling the keeping and use and preventing the unlawful acquisition, possession and use of dangerous substances, and for controlling certain emissions into the atmosphere; to make further provision with respect to the employment medical advisory service.http://www.legislation.gov.uk/ukpga/1974/37
Public Liability & Employee Insurance
It is essential that we purchase Public liability insurance it is an insurance that covers legal costs and compensation that may incur due to accidents. It will pay for any mistakes that cause injury to customers or members of the public. It also covers damage to the property. The Hearty Spoonful is insured by AXA Ltd; Public Liability cover of £1 million and Employer Liability of £10 million. The monthly amount is £46.16.
Gas and Electrical Certificate
Under the Health and safety at work Act 1974 we must ensure the safety of our customers and our employees. Therefore we are obliged to have annual gas and electricity test. The LPG gas installation this must be carried out by a certified gas engineer for example Perry technical services and the cost is £150 excluding parts and VAT.
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This gas certificate also means that we are complying with The Gas Safety (installation and Use) Regulation 1998. The PAT test must be carried out by a certified electrician. I spoke to an electrician from Wilson and Calderwell and was quoted £10 per appliance.
http://www.legislation.gov.uk/uksi/1998/2451/introduction/made
Vehicle insurance
As with any other type of vehicle, our mobile trailer shall be inspected, MOT’d and insured annually.
Fire Risk assessment
Our current plan is to hire three full time staff members and under current legislation a fire risk assessment is not required. However, should be employ further staff (especially during busy seasonal periods) then we will require a Fire Risk Assessment is a legal requirement under the Fire Scotland Act 2005. We can have a fire safety risk assessment done by Fire Scotland prices from £220 or Code Red fire safety. This assessment will look at and survey our premises to determine hazards and review fire safety. It will show us how to organise for safety and achieve the objectives. It will outline a fire emergency plan, so we and employees know what to do in the event of a fire. It will also give us a Personal Emergency Egress Plan (PEEP's) which is a fire evacuation plan for staff or customers with disabilities.
This is a link to the full legislation on the Fire Scotland Act 2005 http://www.legislation.gov.uk/asp/2005/5/contents
Further Staff Considerations
It could be a potential opportunity for our company to recruit an apprentice. The apprentice would receive full training in a real workplace while earning a wage. It allows us to keep up to date with fresh ideas as the apprentice will be bringing new skills to the business. Young people are a good for the business they are good for bringing fresh energy and generate new ideas for us. It will also mean that while we are still paying loans and trying to generate a profit we will have a valuable member of staff that will cost us less to employ.
We will be helping to provide a Recognised qualification. The apprentice is getting the opportunity to gain on job experience. We will be increasing the chances for younger generations, and helping to tackle unemployment. This is better for the economy. It is showing our business is socially responsible, and will raise our profile. We will also be supporting Scottish Government strategy in helping young people into employment.
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In general an apprentice:
• will work at least 30 hours per week• Training is usually a minimum of 1 year to 4 years• Minimum wage is currently £2.96 for under 19 year olds in their first year• If over 19 years old and past 1st year training they get the rate for their age which is currently
£4.98 for 18-20 year olds• 21 or over £6.19• Apprentices have the same rights as other employees; we have to provide paid study time
For us to recruit an apprentice:
• We will register with Skills development Scotland – contribute towards the cost of training• We will choose our training provider such as Polaris Learning Ltd or Intraining• We will pay the apprentice wage, and skills development Scotland pay for the training.• We will register with government gateway• Register with universal job match, and post our vacancy. The vacancy will appear on jobcentre
plus and my world of work.
Training providers
Polaris Learning LtdIntraining
Level 2 • intermediate app in food production and cooking (kitchen services)• Maintain food safety
Level 3 – advanced app in hospitality, supervision and leadership • Provide leadership for your team• Develop productive working relationships with colleagues• Contribute to the control of resources• Maintain the health, hygiene, safety and security of the working environment • Lead a team to improve customer service • Plus other units such as ensure food safety practices followed in prep and serving food and
drink
It is our intention to have two full time working staff and one Modern Apprentice. During high volume periods we may require to hire staff on short contracts; all legislation shall be followed.
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Financial Strategy & Forecasts (See Appendix VI)
We have basic starting capital of £2000 from each of the directors, creating an initial investment of £12,000.
After careful consideration we then generated a loan £10,000 which is repayable over 36 months with a 7.5% interest rate and no bank charges in the first year.
We then considered that our equipment should be used or reconditioned to fall in with our ethical stance of not wasting any food it would be more environmentally conscious at this stage to start with items that still have the ability to allow us to produce the best culinary experience for our clientele so with this in mind we have purchased a trailer at the cost of £6,000 which included a lot of valuable equipment.
Due to the extent of sales we are hoping to generate we have calculate that VAT will be payable as we exceed £80,000 sales.
We have assumed tentative sales figures to begin with but hope that once the quality of product and service have been tested by our consumers we will achieve a 10% increase in the second year.
We have calculated our purchases to sales ratio slightly higher than most companies as we will be selling a gourmet experience rather than conventional so this has been based on 40% using locally sourced products where possible.
Due to storage capacity we have kept stock levels to a minimum so would have a basic pre start level of £1000.
Other purchases made for the pre start-up are of course the trailer, branding of the trailer, logos. Marketing of the company, electrical generator, gas storage and cooking equipment.
The rental costs are as low on a monthly basis as some of the pitches that we will utilize are free and only one has a weekend rental charge £40.
We have also calculated in the figures the following vehicle contingency plan of £160 a month to allow for any repairs, mot etc. to be completed during the year. There is a separate contingency plan in place that covers equipment.
We have also had pre start-up cost in regards to legalities Inc. street traders licenses, Fire assessment, NCASS registration, Food Hygiene Certificates, gas and electrical certification.
Due to the fact we will have no premises we will use a mobile contracted phone £40 monthly.
Other marketing expenses include costing for a summer event which the costs have been spread over several months.
Heating and lighting will cover the costs all electricity costs and the costs for the gas cylinders.
Sundries will include the equivalent of petty cash, float or any unexpected expenses of which we have no other contingency plan in place.
We have allowed for employment of three members of staff based on minimum wage for the first two trading quarters once we see an increase during the summer months more staff may be hired.
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Further Considerations & Summary
Contingency Planning
Further to the Risk Assessment Analysis (page 9), the Directors of The Hearty Spoonful have created a contingency plan for multiple and various incidents that may (or may not occur). Financial contingencies have been made to cover costs of specific capital risks, however back up suppliers have also been sourced for all fresh, local produce. Staffing contingencies have been implemented to cover busy periods, holidays and sickness.
Environmental Considerations
The Hearty Spoonful shall recycle all possible materials with due care and consideration. We shall endeavour to be as minimally wasteful as is practical.
Ethical Considerations
Where possible, stock and produce are off ethical, fair trade and organic origin. Every attempt shall be made to provide at least one daily vegan or vegetarian choice.
Future Plans and Prospects
Over the course of trading, new/additional equipment may be purchased to allow for further product variance.
Expansion
Depending on sales and profitability, the Directors of The Hearty Spoonful may wish to purchase a second trailer, employ further staff and expand the business either in Glasgow or city centres throughout Scotland.
Charitable Donations
To ensure that all edible (but not sellable) food is not wasted, all leftover food will be delivered and donated to Cadogan Street Soup Kitchen in Glasgow.
Summary
The Hearty Spoonful is the product of innovation, solid market research and strong ethical business practices. The Directors of The Hearty Spoonful have every confidence that the brand will be a well respected and trusted addition to the current mobile food vending environment.
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Appendices
Appendix I
Sample Menu & Price List
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Am(7am- 11am)
Porridge Porr Porr Porr Granola Gran Gran Gran Porr Porr Porr Porr
Pm (11am – 3pm) Soup Soup Soup Soup Soup Soup Soup Soup Soup Soup Soup Soup
Summer Variation n/a n/a n/a n/a Ice
CreamIce
CreamIce
CreamIce
CreamIce
Cream n/a n/a n/a
Summer Variation n/a n/a n/a n/a Fruit
SaladFruit Salad
Fruit Salad
Fruit Salad
Fruit Salad n/a n/a n/a
Annual Cake Cake Cake Cake Cake Cake Cake Cake Cake Cake Cake Cake
Two soup varieties shall be available per day – one meat based the other vegan friendly. All soups come with a choice of bread roll and butter.
Lunch ‘Meal Deal’ available (soup, roll, cake/fruit salad and drink of choice)
We shall endeavour to provide a gluten and vegan friendly cake per day to cater to a broader customer base.
Seasonal Variations
Chilled summer soups (Gazpacho, Vichyssoise)Hearty winter broths (one meat based, one vegan based)‘Customer Requests’ – items voted for from our ‘customer suggestions’ box
Drinks Menu
Coffee Latte, Cappuccino, Americano, Espresso (All with Decaf Option)
Tea Traditional Blends as well as a variety of herbal and decaf options
Water Still and Sparkling – Highland Spring 500ml
Smoothies and Milk Shakes
No fizzy drinks are available at The Hearty Spoonful.
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Seasonal Variations
Winter Cider PunchChristmas Mulled Wine (non alcoholic)Egg Nog (non alcoholic)
For both food and drink products we shall also incorporate seasonal holidays (Chinese New Year, Easter, Halloween, Diwali, Thanksgiving, Hanukkah etc) into our menu.
Price List
What are we selling Days Available Unit Price
Medium Ice Cream - one size (summer months (April to September - 180 days) 180 £2.00
12 oz Milk shake (all year round - 361 days per year) 361 £2.00Porridge (September to April - seven months - 210 days) 210 £3.00Granola (May to September five months 150 days) 150 £3.00Soup - vegetarian - comes with a roll/bread & butter 361 £4.00Soup - non vegetarian? - comes with a roll/bread & butter 361 £4.00Tea (decaf / regular ) 361 £2.00Tea (Herbal - choice of three flavours) 361 £2.00Coffee (Latte / Americano / Cappuccino) - choice of decaf 361 £2.50Water - 500ml Sparkling / Still 361 £1.00Smoothie 361 £2.00Seasonal Variations (to be confirmed – subject to availability) 90 £3.00
Cake 361 £2.00Fruit Salad Portion 361 £2.00Meal Deal - Breakfast - Porridge / Granola and Drink of choice 361 £3.50
Meal Deal - Lunch - Soup and bread & Drink of Choice 361 £4.50
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Appendix II
Staff Rotas and Hours of Work
Normal Working Hours 0700 – 1500 hours During busy summer/holiday periods, this may change and overtime will be offered.
WORKING SHIFT PATTERNPERSON A
PERSON B
PERSON C
WE HAVE THREE FULL TIME STAFF WEEK 1 MON TUE WED THUR FRI SAT SUNA A A A A - -
THERE WILL BE 2 ON PER DAY IN A 3 WEEK SHIFT ROTA - - B B B B BC C - - - C C
WEEK 2 B B B B B - -- - C C C C CA A - - - A A
WEEK 3 C C C C C - -- - A A A A AB B - - - B B
EACH MEMBER OF STAFF WORKS 152 HOURS PER 4 WEEKS - THEY WILL BE PAID 4 WEEKLY TO ACCOMMODATE THIS SHIFT PATTERN
MIN WAGE (OVER 21'S) 6.31 152 959.12
PRE TAX & NI CONT
£868.61 NET PAY EVERY 4 WEEKS
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Appendix III
Email from Harry Heron, Proprietor of Harry’s Fruit Shop, 14a Thornhill, Johnstone confirming credit terms.
Nov 14 at 6:14 PM
----- Original Message -----
From: harry's fruit shop
Sent: Thursday, November 14, 2013 1:49 PM
Subject: THE HEARTY SPOONFULL
REGARDING OUR CONVERSATIONABOUT THE SUPPLY OF FRUIT & VEG TO YOUR BUSINESS. I CAN CONFIRM THAT I AM WILLING TO PROVIDE A MONTHLY CREDIT LIMIT OF £1000.00 TO BE PAID ON THE LAST DAY OF EACH MONTH.THIS SHALL BE REVIEWED ON A TWO MONTHLY BASIS.
REGARDS
H.HERON
{HARRY'S FRUIT SHOP)
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Appendix IV
Marketing
We allocated £8,000 for the marketing budget. £3,000 has been placed in the pre start section of the cash flow. This would be required for branding of the trailer and the cups/bowls. We would set up the collection by printing a selection of Scotland related pictures. We evaluated the annual cost of flyers at £2,520 and the Summer Event at £2,479.72.
The promotion of our new activity and product will be organised in advance. The cost of the press release and the event has been split between January and May rather than having one large cash payment in May. We have also been split the costs of flyers over the year.
References:
www.innovation-productions.com www.bestbuy.com Vista print Press dispensary
Summer Event May 2014
The event will take place in George Square, Saturday 25th May 2014. We will organize scenery which will remind the public of summer holidays. We will bring sand and accessories to create a small fictional beach. We will install a beach umbrella, beach towels, toys, ice compartment, sandcastles and a volley court. We will make some noise with music, sound of the waves and gulls. The screen in the background will show the sea, humoristic pictures of safeguards like Baywatch or a party with friends on the beach. We want to catch the attention of the pedestrians. Chairs and tables will be used to push people to stop, listen and consume. The hearty spoonful van will be next door, ready to sell.
We will devote a part of the day to the presentation of our business and products. We will tell why and how we decided to create an enterprise. We want a personal relationship with customers; it is important to talk to them directly and express our feelings in front of them. We will highlight the fact we use local and fresh produce and point out that it is fast when they are busy and hurry. It will be also the moment to explain the combinations of the pictures and the prizes.
To make the weekend attractive and to finish on a positive image, we will organize a contest of the best sandcastle and a match of beach volley.
At the end, we will invite the public to share their impressions of the brand; the feedback received will be critical and allow us to make any necessary changes. The date and the programme of the event will be written down on flyers.
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Here is the plan of the place and the detailed programme of the day.
Agenda of Events
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Hours Activities
10a.m to 12a.m Extract of Baywatch on the screen
12a.m to 1p.m Presentation of the company
1p.m to 2.pm Tasting of ice cream
2p.m to 3p.m Sandcastle contest
3p.m to 5p.m Beach volley tournament
Stage with the screen in the background
Fictional beach
Seats and tables
« The Hearty spoonful » Trailer
Appendix V – Marketing – Key Segments – Business Canvas
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Appendix VI – Financial Statements
Business Name The Hearty Spoonful VAT % = 20% Loan Months 36
Cashflow Loan Rate (%) 7.50%
YEAR 1 Pre-Start Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
£ £ £ £ £ £ £ £ £ £ £ £ £ £
Income
Sales 10,703 10,703 10,703 11,136 11,502 11,502 11,502 11,502 12,002 12,457 12,457 12,457 138,626
Owners Capital 12,000 12,000
Loan 10,000 10,000
Other Funding 0
Grants 0 0 0
0
VAT 2,141 2,141 2,141 2,227 2,300 2,300 2,300 2,300 2,400 2,491 2,491 2,491 27,725
TOTAL 22,000 12,844 12,844 12,844 13,363 13,802 13,802 13,802 13,802 14,402 14,948 14,948 14,948 188,351
Expenses
Stock 1,000 0 0 0 0 0 0 0 0 0 0 0 0 1,000
Purchases 0 4,281 4,281 4,281 4,454 4,601 4,601 4,601 4,601 4,801 4,983 4,983 4,983 55,450
Furniture 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Equipment 3,596 0 0 0 0 0 0 0 0 0 0 0 0 3,596
Computer 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Rent and Rates 0 160 160 160 160 160 160 160 160 160 160 160 160 1,920
Vehicle Purchase 6,000 0 0 0 0 0 0 0 0 0 0 0 0 6,000
Vehicle Operating Costs 1,184 160 160 160 160 160 160 160 160 160 160 160 160 3,104
Vehicle Insurance 505 0 0 0 0 0 0 0 0 0 0 0 0 505
Other Insurances 461 0 0 0 0 0 0 0 0 0 0 0 0 461
Company Mobile Telephone Costs 0 40 40 40 40 40 40 40 40 40 40 40 40 480
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Repairs and Maintenance 500 0 0 0 0 0 0 0 0 0 0 0 0 500
Professional Fees 605 0 0 0 0 0 0 0 0 0 0 0 0 605
Postage, packaging And Stationery 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Bank Charges 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Advertising + Promotion 3,000 100 100 1,100 1,100 1,900 100 100 100 100 100 100 100 8,000
Heating + Lighting 0 199 199 199 199 199 199 199 199 199 199 199 199 2,388
Sundries 0 50 50 50 50 50 50 50 50 50 50 50 50 600
Loan Interest 0 63 63 63 63 63 63 63 63 63 63 63 63 750
Loan Capital Repayment 0 278 278 278 278 278 278 278 278 278 278 278 278 3,333
Employee Wages 0 3,400 3,400 3,400 3,400 3,400 5,000 5,000 5,000 5,000 5,000 5,000 5,000 52,000
ERNI 0 367 367 367 367 367 540 540 540 540 540 540 540 5,616
Drawings 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VAT 3,177 988 988 1,188 1,223 1,412 1,052 1,052 1,052 1,092 1,128 1,128 1,128 16,609
VAT Payment 81 3,141 3,805 7,027
TOTAL 20,028 10,086 10,086 11,286 11,574 12,629 12,242 15,383 12,242 12,482 16,506 12,700 12,700 169,945
Net cash flow 1,972 2,758 2,758 1,558 1,789 1,173 1,560 -1,581 1,560 1,920 -1,557 2,248 2,248 18,406
Opening balance 0 1,972 4,730 7,488 9,046 10,835 12,008 13,568 11,987 13,547 15,468 13,910 16,158
Closing balance 1,972 4,730 7,488 9,046 10,835 12,008 13,568 11,987 13,547 15,468 13,910 16,158 18,406
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Business Name The Hearty SpoonfulProjected Profit & Loss AccountYEAR 1
£Sales 138,626
Less Cost of SalesPurchases 56,450 Employee Wages 57,616
114,066
GROSS PROFIT 24,560
ExpensesRent and Rates 1,920 Vehicle Operating Costs 3,104 Vehicle Insurance 505 Other Insurances 461 Company Mobile Telephone Costs 480 Repairs and Maintenance 500 Professional Fees 605 Postage, packaging And Stationery 0 Bank Charges 0 Advertising + Promotion 8,000 Heating + Lighting 2,388 Sundries 600 Loan Interest 750 Depn - Furniture 0 Depn - Equipment 899 Depn - Computer 0 Depn - Vehicle 1,500
21,712
TRADING PROFIT 2,847 Add Grants 0 PROFIT BEFORE DRAWINGS 2,847 Less Drawings 0 PROFIT AFTER DRAWINGS PRE TAX 2,847 Tax 0 PROFIT AFTER TAX 2,847
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Business Name The Hearty SpoonfulProjected Balance SheetYear 1
£
FIXED ASSETSFurniture 0 Equipment 2,697 Computer 0 Vehicle Purchase 4,500
7,197
CURRENT ASSETSBank and cash 18,406
CURRENT LIABILITIESLoans Outstanding 6,667 VAT 4,089 Tax 0
10,756
NET ASSETS 14,848
CAPITAL AND RESERVESCapital 12,000 Profit & Loss Account 2,847
14,848
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Appendix VII
The Hearty Spoonful Van (with Logo)
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