mocha directional concept
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TRANSCRIPT
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
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