Krystal Daibes. Melissa Grelli. Galen Mittermann. Jonathan Riddle.

n. the capacity to live, grow & develop

Sweetgreen

M Street-Washington DC M Street-Washington DC

Dupont-Washington DC Bethesda, MD

Vitality Team

product developmentmarketing/sales

brandinggraphic design

finance

team will be consultingwith real estate, nutrition,

and food experts fromthe industry

strengths

gaps

V i · T A L · I ·T Y

Because there is untapped market potential and a way for Vitality to differentiate itself with unique product offerings

The health conscious and time sensitive consumersas well as families

• Who We Are •

• What We Do •

• Why We Matter•

• Who We Matter To •

The mission: deliver healthy meals using 100%natural ingredients to people on the go whileimplementing sustainable business practices

Provide an alternative to traditional, greasy QSRs

Vitality’s Value Proposition

Total investor funds are forecasted at $340,000

“For the health-conscious consumer who wants a fast healthy and nutritious meal, Vitality is a quick service restaurant that provides healthy, natural and sustainable products. Unlike other quick service restaurants that have processed and unhealthy meals, our meals improve health and come from natural, locally-sourced farms for only a slightly higher premium.”

Vitality: A Healthy Solution

3 Seeds to Success

Operations Location

Menu

to live, grow & develop

Operations

1) Volume based business

2) High transaction speed

3) Continually work on process improvement:

Serve as many customers as possible & drive sales

-ordering-food prep-packaging-final order -assembly

Operations Continued

-Vitality’s limited menu reduce costs and help control quality

-Interactive touch screen will help differentiate Vitality as well as allow our drive thru to thrive

-Technology platforms that allow customers to order online or through an Iphone/Blackberry application

Marketing Mix: Place/Location

Open first location in Portland, Oregon with future expansion plans for this local market

Customer convenience

In-Store Presence:

-Eco Friendly approach to in store design

-Decor and Flooring--recycled goods (unique dining experience)

-Drive-thru with a user friendly kiosk (Nextep & MRI Touch Screen) for our drive-thru operations

High traffic area

Easily accessible by foot & car

Strive For:

Marketing Mix: Product/Menu

Mintel: 49% of adults surveyed reported “freshness” as the most important decision when ordering food, followed by fat, calories, and natural non-processed ingredients

Dedicated to serving great tasting “healthy” meals with 100% natural ingredients

Attributes: fresh, natural, and organic.

Oregon customer questionnaire

“Quality” was ranked as extremely important

Speed, Price, and Convenience were ranked as important

Marketing Mix: Product/Menu

Product Development Strategy

-Two Main Product Lines:

1. Salads (wraps) 2. Greek Yogurt (fruit & nut add-ins)

-Allow for customized orders

-Menu names will be distinct to OR

-Biodegradable containers and utensils

-Nutrition endorsed and transparency with regards to ingredients and nutritional content

-Future opportunities to augment the product and Vitality revenue streams

Packaging

Leverage freshness & customizable options

Align with: fresh, natural, sustainable

i· al·i·TTn. the capacity to live, grow, and develop

The VitalsCrescent Caesar

Romaine lettuce, chicken, croutons, parmesan cheese, and caesar dressing.

The Cobb

Romaine lettuce with avocado, turkey bacon, grape tomatoes, chicken, and honey dijon dressing.

The EssentialsThe Oregonian

Romaine lettuce with chicken, mandarin oranges, carrots, won tons, and sesame ginger dressing.

Sweet GrapeSpinach, grapes, chicken, candied walnuts, and and red wine dressing.

Prefontaine ClassicRomaine lettuce and arugula, black beans, chick peas, beets, broccoli, avocado, egg, almonds, chicken, and olive oil.

Blazin’ BachelorRomaine lettuce, avocado, black beans, cherry tomatoes, cucumber, almonds, chicken, and ranch dressing.

·

Track Town Special*1. Choose: spinach, arugula, romaine2. Up to 5 add-ins ($1): black beans, chick peas, broccoli, beets, edamame, avocado, cucumber, egg, corn, cherry tomatoes, carrots cucumber, mandarin oranges, almonds, candied walnuts, crispy wontons, croutons, feta cheese, goat cheese3. Add Protein ($1) chicken, tofu, tuna, turkey bacon4. Balsamic vinaigrette, red wine, caesar, ranch, olive oil, sesame ginger, honey dijon

*starts at $6

$6

$5 $7

$7

$8

$8

y

greek yogurt.Bottled Water $1 Fuze Drinks $2greek yo Choose 2: Almonds, Granola, Candied

Walnuts, Apples, Grapes, Strawberries, Pear, and honey

Soy Milk $2 $3

*All salads can be made into wraps

Marketing Mix: Promotions

Traditional Media Social Media

Principle news outlets Facebook

Advertisements in local papers

Twitter

TV & radio ads Company Blog

Tactics

-Utilize social media to communicate special promos and incentivize people to eat Vitality

-All menu offerings endorsed by certified nutritionists

-Frequent Vitality card that has 10 unfilled trees on one side and a health or sustainable fact on the other side

-Annual online contest in May (‘Sustainable Month’) in which customers submit and name their salad creation

Marketing Mix: Price

-Value pricing strategy -Affordability is a key factor, but we expect to sell at a premium to traditional QSRs

[Mintel: $4.77-QSR (2009)]

-Food costs will not exceed 35% of the sales price

-Suppliers include: local farmers for produce and UMIF (natural foods distributor) for protein items and yogurt

-Estimate Vitality salad ranging from $6-9, depending on the complexity and ingredients and yogurt $3 with the option of two fruit or nut add-ins

Vitality’s Financials

·      Initial Costso    First Phase: personally financedo    Phase 2: $124,558o    Phase 3: $214,127

·         Assumptionso    23 customers/avg. hour sales = $496,800 initial saleso    1400 sq. ft. location at premium price of $48/foot plus $18/

foot

·         Returno    IRR of 31%, plus position to franchiseo    Year 5 earnings of over $160,000 with above 10x industry

average P/E

Forecasted Sales

Grow With Vitality.

Vitality Milestones

Q2 Y1 Q3 Y1 Y2 Y3 Y2Prove our

concept

Raise capital

Add new

location

Expand our client

base

Break Even

V i · T A L · I ·T Y

We life fast lives & want fast food

America’s Fast Food Problem Vitality’s SolutionRed Ocean Blue Green Ocean

we also want to eat healthy.but

-Approx. 500,000 restaurants in US combined revenue $400 billion

-Highly fragmented (full and limited service (QSR and fast casuals)

-200,000 QSRs combined annual revenue $120 billion

-Current QSR establishments provide unhealthy food to patrons

-Healthy QSR (imagine Cafe Yumm with a drive-thru)

-Offer a diverse menu with health at the core of our products

-Core target audience: parents and health-conscious consumers on the go

-Emphasis on lunch sales as this accounts for the majority of QSR sales

Hoover: US Restaurant Industry Overview

500,000 restaurants combined annual revenue $400 billion

Highly fragmented (FSR and limited service (QSR and Fast Casuals)

Approximately 200,000 QSRs with combined annual revenue $120 billion

National Restaurant Association (NRA) reports: “A typical fast food restaurant

generates $670,000 annually and a franchised one, $1 to $ 2 million

http://www.hoovers.com/fast-food-and-quickservice-restaurants/--ID__269--/free-ind-fr-profile-basic.xhtml

IBIS-Fast Food Restaurants Key Statistics

KEY FACTS

The top 5 players account for 41% of industry revenue:

- McDonald's Corporation  12.7%

- Yum! Brands, Inc.  9.7%

- Wendy's/Arby's Group, Inc.  6.6%

- Starbucks Corporation  5.9%

- Burger King Corporation  5.1%

http://www.ibisworld.com.libproxy.uoregon.edu/industry/executivesummary.aspx?indid=1676

Mintel Reports: QSR Usage & Frequency

“In the past three months, how many times have you eaten at, picked up food from, or have had food delivered from each of the following restaurants?

Base: 1,884 internet-using adults aged 18+ who have used a restaurant in the past year, May 2009

Restaurant Usage % Frequency #

McDonalds 66% 3.5

Subway 54% 1.9

Burger King 46% 1.4

Wendy’s 43% 1.4

KFC 46% 1.1

http://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393467/display/id=477525#hit1

Mintel Reports-Ingredient Attributes “Healthy Meal”

Fresh Ingredients 49%

Less Fat 39%

More Vegetables 29%

Lower Calories 26%

Made with natural, non-processed ingredients

23%

Less Sodium 20%

Smaller Portions 17%

Less Sugar 11%

More Fruit 10%

Base: 1,726 adults February 2009

“When it comes to choosing a ‘healthy meal’ at a restaurant, which, if any, of the following are the most important to you in your ordering decision?”

http://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393496/display/id=460714#hit1

Portland, OR

Portland earned the second spot on Cooking Light top 20 cities due to its: ‘acres of parkland per capita; percent of population that reports to be in good or better health; percent of population that exercised in the last month; and its walkability.’

Cooking Light Best Cities Award

http://www.cookinglight.com/healthy-living/travel/cooking-light-best-cities-portland-oregon-00400000001413/

Mintel Reports: Pricinghttp://academic.mintel.com.libproxy.uoregon.edu/sinatra/oxygen_academic/search_results/show&/display/id=393467/display/id=477501?select_section=477504

Cuisine Type Q1 2008 $

Q1 2009$

QSR 4.06 4.77

Sandwich 5.75 5.45

Fast Casual 5.86 6.09

Average price per entrée, by restaurant segment- 2008 and 2009

QSR Magazine-Top Drive-Thrushttp://www.qsrmagazine.com/articles/news/story.phtml?id=9413&microsite=drive_thruThrus

Top Performers

Chic-Fil-A 3.54 vehicles in line96.4% accurate

Taco Bell

Del Taco

Wendy’s 1.77 vehicles processed with an avg. time of 134

seconds

Based on: speed of service, vehicles processed, accuracy, and customer serviceAverage speed of service (2008) 131 seconds

NE Milestones

Proven Our Concept: Q2 Y1

We believe that we will be able to prove our design and concept by the beginning of the 2nd quarter of year 1. At this point NE will have successfully entered the market by opening its first store in Portland, Oregon.

Raise Capital: Q3 Y1

By the beginning of the 3rd quarter of year 1, we will have access to $300,000.

Expanding our Client base: Y2-Y3

During years 2 and 3 we will strengthen our business model. We intend to increase our client base by adding more locations, improve our product offerings, and establish good relationships with current and potential clients.

Achieving Breakeven: Y2

We intend to break even by year 2.

Exit Strategy:

As a startup company we must take into consideration a viable exit strategy for NE. If our we are unsuccessful, we will sell our business to another competitor looking to sell healthy fast food offerings

Defending the Brand

-First mover advantage

-Current competitors in the marketplace will need to redefine their image and brand

-New entrants will simply be unauthentic NE imitators

Customers are trading down from fast casuals to quick service

Current QSRs are trying to offer more nutritious and premium meals

Vitality Brand