Docstoc

Connecticut Venture Group Busine

Document Sample
Connecticut Venture Group Busine Powered By Docstoc
					Business Plan – Cosmos Pizzeria & Family Restaurant

1. The Business

Cosmos Pizzeria and Family Restaurant is a locally owned & operated 120-seat pizzeria conveniently and centrally
located at 147 Connecticut Avenue - US Route 1 - in the City of Norwalk, Connecticut. The site offers high
visibility situated on a major arterial roadway in close proximity to the city’s major retail outlets. Additionally, the
location offers quick and easy access to travelers motoring the main Northeast Interstate corridor of I-95. Cosmos
Pizza was built on the concept of offering patrons fresh and affordable homemade-quality fare, a pleasant,
comfortable family atmosphere and a cheerful, accommodating staff. The Tsionis family has been successfully
fulfilling this traditional concept since 1980.

2. Market Opportunity

Bridgeport-Stamford-Norwalk is one of 366 Metropolitan Statistical Areas in the nation. Its 2007 population of
890,595 ranked 56th in the nation.1 As of 2009, Norwalk's population is 83,456 people. Since 2000, Norwalk has
had a population growth of 1.49 percent2, particularly in important age cohorts such as middle-age families (35 to
54), near senior (55 to 64) and seniors (65 and over). The increase in middle-age and older residents has important
financial implications for local retail establishments. Residents in the middle-age family cohort typically are at their
peak earning potential, are more inclined to have children, establish longer-term community ties and support the
local area housing market. This investment in community is also typically demonstrated through greater financial
use and support of local goods and services.

The overall growth in retail sales (1992 to 2002), as well as the average sales per store in the City of Norwalk,
indicates an increasing strength in the retail market. More particularly, many selected store types in Norwalk serve
a broad geographic area, indicating a regional draw and/or a retail magnet (destination) upon which future retail
development in Norwalk may capitalize. 3

        Regional population of 890,000 -                        Bridgeport-Stamford-Norwalk MSA


        Norwalk’s pop. approx 10% of that - 83,000
        93% of Americans eat AT LEAST one pizza per month                                            .(Source: Bolla Wines.)


        Local minm consumption - 77,000 pizzas per month or 925,000
         annually!
        Pizza accounts for more that 10% of all foodservice sales                                         (Source: Food
         Industry News.)

        Avg CT price for 14” take-out cheese pizza is $10.55                                      (prices quoted DF from CT
         Pizza Hut, Dominos, Papa Johns, Bertucci’s 11-3-2009)




3. Targeted Market

Traditionally, Cosmos has largely catered to neighborhood or Norwalk
based clientele, who typically are brand aware due to “brand” quality, consistency & historical longevity of the
business at present location. The Tsionis family would like to broaden their market reach and feels targeting non-
Norwalk based retail shoppers, drawn to various strip mall plazas that exist in heavy concentration slightly west of
the restaurant (see map above), Interstate I-95 travelers and the younger nightclubbing crowd regionally drawn to
the SONO Seaport, especially during holidays and weekends, are natural choices for targeted marketing based on
the following psychographics (see next page).
Targeted Market Psychographic Statistics4

       18 to 24-year-olds eat out and drink alcohol outside the home more often than other age groups.
       Generation Y – those born since 1978 – tend to eat more often at quick-service and pizza restaurants.
       Generation X – those born between 1965 and 1977 – tend to prefer quick-service or casual establishments
        with comfort and a good perceived value.
       Smaller households eat out more often than bigger households.
       Empty nesters eat out more and spend more when they eat out. They typically spend 65% more on dining
        out than couples living with children.
       Empty nesters are generally more concerned about the quality of food and the elegance of the atmosphere
        than the price.
       People with more income tend to eat out more frequently.
       People who work long hours eat out more than people who have enough free time to cook their own meals.
       Working wives tend to prefer eating out more than housewives.
       Traditionally, the older people get, the less frequently they eat out. However, this may change soon, since
        many baby boomers grew up eating out often.
       Seniors tend to eat early and slowly, and they look for good values with small portions.
       Wealthy, well-traveled consumers, particularly the wealthier baby boomers and the next generation, are
        more likely to look for ethnic or exotic food when they eat out.

Based on the above, the targeted market demographic would be people of driving age (16+), families – especially
dual working parents, who, for the previous 3-decades, have been the mainstay of Cosmos Pizza patrons. As such,
an investment or partnership with an outdoor billboard specialist company, for a two-sided electronic billboard on
the family-owned business property is being considered, along with implementation of a website offering online
ordering capability for dine-in, take-out and delivery service and possible implementation of other technological
mediums such as text message ordering and wireless LAN internet access offered through the Cosmos website; the
latter two ideas seen as appealing to a younger, possibly highway traffic confined or bound, late-night market
audience.

4. Competitive Positioning

Dominos Pizza (3 miles northeast)
301 Main Ave., Norwalk, CT
     Chain store. Web presence - chain website. High visibility location. Network TV advertiser. Typically,
       no on-premise dining room - only offers delivery and take-out service.

Piazza Pizza (0.9 miles east)      http://www.piazzapizzaandpasta.com/about_us.html
Darinor Plaza (Kohl's Dept. Store)
500 Connecticut Ave., Norwalk, CT
     Largely caters to local strip mall traffic & delivery. Low visibility location. Deli-style, to-go atmosphere.
        Limited seating capacity. Has web presence.

Pasta Fair (1.3 miles east)       http://www.allmenus.com/ct/norwalk/247500-pasta-fair/menu/
690 Connecticut Ave, Norwalk, CT 06854
     Limited web presence through locale-type informational websites. Marketed as Italian restaurant, also
        offering pizza. Longevity at present location.

Bertucci's Brick Oven Restaurant (1.6 miles east) http://www.bertuccis.com/#Restaurant%20Locator
54 Post Rd, Darien, CT 06820
     Chain store. Web presence - chain website. High visibility location. Network TV advertiser.
Davinci’s Pizza (0.4miles west) http://tommcgphotohosting.com/davinci_brochure1.pdf
60 Connecticut Ave, Norwalk, CT 06850

          Lower visibility location. Limited seating capacity. Very low tech web presence.

Competitors typically either do not have real estate ownership control that would enable them to consider billboard
marketing, or their location does not provide the convenience and visibility to and for both local and interstate
traffic. Large area competitors are chain stores that rely on corporate marketing plans and strategies in hopes these
will attract new customers; these strategies obviously are not therefore focused on a particular store location or
local/area population. To reach this more local/area population the trend in marketing for both large and small
competitors, including Cosmos, is to follow the traditional print/mail coupon-type advertising.

Due to heavy regional consumer traffic in this area, premium lease rates are typical and for start-ups this would have
to be considered the major barrier to market entry. Additionally, the amount of established area competition would
be worthy of consideration.

"Embedded Value"

There are many local pizzerias in Norwalk. Cosmos has a competitive advantage in that it is located on Connecticut
Avenue, one of the busiest commercial shopping strips in the city and proximity to Interstate-95. While location is
key to any business, Cosmos, over the years, has adopted several customer-centric practices and benefits aimed at
providing all customers, both old and new, with the highest standards of quality throughout all aspects of the
business to include:

    -      Constant ownership presence in both kitchen and dining area.
    -      All food is fresh, homemade daily.
    -      Owner-attention-to-detail in creating warm, accommodating family atmosphere.
    -      An emphasis on cleanliness in all operations as evidenced by positive health inspections every 90-days.
    -      Key foodstuff purchases overseen and made by owners.
    -      Free delivery service available.
    -      Gift certificates available.
    -      Catering
    -      Corporate accounts exist/available – Norwalk Hospital, Jefferson Elementary, Roton Middle School,
           Norwalk Police Department
    -      All major credit cards are accepted

Website:

    -      Online menu
    -      Gift certificates available for purchase
    -      Online orders
    -      Contact information
    -      Coupons and promotions
5. Management Team

Mr. Dimitrios Tsionis – Dimitrios Tsionis was born in Greece and came to the United States in his early twenties to
pursue the dream of owning and operating his own business. Mr. Tsionis learnt the restaurant business working at
Essex Restaurant in downtown New York City where he began as a waiter. He moved to Connecticut and continued
gathering restaurant experience eventually becoming manager of the Country Diner on High Ridge Road in
Stamford, Connecticut. In 1980, he opened Cosmos Pizzeria and Family Restaurant. Experience taught Mr. Tsionis
that quality, fresh food and customer service were key in establishing a successful pizzeria restaurant. This attention
to detail and customer demand enabled Mr. Tsionis and his family to open a leased pizzeria restaurant operation that
eventually moved and then purchased the current family owned property at 147 Connecticut Avenue. For almost 30
years Cosmos has remained a viable and successful business as Dimitrios instilled in the operation his original
commitment to quality, freshness and customer service.

Mr. John Tsionis – John Dimitrios Tsionis is the youngest son of Dimitrios, and as such, Cosmos has become a
way of life for John who has worked closely by his father and brother George. At a young age John worked in the
kitchen as a chef and learnt all aspects of the business from his family. John has grown up with those customers
who have become loyal Cosmos patrons and they each other as family. John plans to continue and expand the
business to other areas.

Mr. George Tsionis – George is the oldest son of Dimitrios and the Cosmos way of doing business is now also
firmly ingrained in him. George also works in the kitchen as a chef and alternates with John. George equally knows
the business and plans to continue and support his brother and father with any future expansions.

Aside from its management/owner team, Cosmos staff is composed of ten full time employees. Two assistant chefs
who have each been employed for over ten years. Five waiters and waitresses each employed for over five years,
and three delivery people who are often needed to work the same night due to brisk business.

6. Product Development

Cosmos Pizzeria Restaurant has been serving the local area for 29 years. Increasing “brand” awareness to a broader
market through the use of technology and a targeted marketing plan should enable Cosmos to increase market share
and further enhance sustainable profitability. Focused marketing research of what the targeted market demographic
views as unavailable from area restaurants is currently being sought, and if not available, plans to collect such
pertinent data will be made.

Should the proposed billboard/highway marketing plan fail to increase market share as expected, this would be a
significant financial outlay that would be most difficult to cost-justify for the business. Partnering with one of the
outdoor billboard specialist companies such as – Barrett or Lamar Outdoor – may provide alternatives that would
mitigate such financial risk while still providing for the benefits seen in targeting a broader market. Initial meetings
to discuss such alternatives are currently being arranged.

7. Business Strategy

Cosmos was established in 1980 and has since become a well-known part of the Norwalk restaurant community.
Cosmos was one of the first area Greek pizzeria restaurants offering fresh, homemade, quality food. Additionally,
Cosmos offers family-value pricing and an environment where families can unwind from the area hustle and bustle,
eat great food and feel at home. From their fresh pizza, delicious salads and homemade dressings to their exquisite,
traditionally authentic Greek fare, Cosmos is all about giving the customer what they want. After 10-years of
operation, Cosmos needed to expand the restaurant footprint due to high patronage demands. In 1991, Cosmos
purchased its own property and moved to its current location at 147 Connecticut Avenue. This location increased
business visibility to the community due to the location on the most heavily traveled shopping byway in Norwalk.
Cosmos has always remained a family-owned restaurant and founder, Dimistrios Tsionis’ wish is to pass on the
family business through successive generations. He has two sons, who are very involved in the business, working
alongside him. As the family continues to expand, Cosmos hopes to follow.
Cosmos’ most important clients are local area families whose children grew up frequenting the restaurant or buying
from the take-out/delivery menu and area passerby shoppers. These patrons have allowed Cosmos to sustain a
positive cash flow for the past 29- years! Even through economic recession customers have found their way to
Cosmos, as Cosmos has never compromised on the founding commitment to quality to save money because the
Tsionis family knows that no matter what their customers deserve the best. To continue positive cash flow, Cosmos
will emphasize what it has been doing for so many years. Quality, fair portions, freshness, family friendly
atmosphere and reasonably priced food. With the help of its website and other possible marketing efforts, the
Tsionis family hopes to reach more people in Norwalk and other communities. Cosmos will continue to treat its
customers as more than just customers; they will continue to be family.




8. Marketing and Sales

Product differentiation through marketing of the wholesome quality aspects associated with traditional family-run
restaurant. Marketing concepts to promote & conjure images of homemade food & associated freshness & quality,
in combination with relaxed, comfortable family atmosphere & accommodating service. Additionally, consider
investment in plans for increased highway signage (possible installation of highway visible billboard at restaurant
location) & technology to include website with online & SMS ordering capabilities. This will spread brand
awareness & knowledge of highway accessibility/convenience of location to both the largely untapped & unaware I-
95 motorist traffic and non-Norwalk based strip mall shoppers. Other worthy marketing considerations are:

       Local cable channel marketing
       Local area radio spots.
       Distribution of print marketing materials/coupons to area strip malls & associated parking areas
       Community volunteering and donations of time and product to local area charities.
9. Projected Financials


    Income             2008            2009            2010            2011             2012             2013

Total Sales       $996,787.00 $1,050,850.00 $1,110,700.00 $1,230,140.00 $1,359,480.00 $1,511,775.00

Total Change
From Year
Prior                      0.0%            5.4%             5.6%           10.8%            10.5%            11.2%


     Costs
                   $                            $                  $               $                $
Taxes & Utilities 41,844.00        $ 43,936.00 46,133.00           48,440.00       50,862.00        53,405.00
                   $                            $                  $               $                $
Labor             356,000.00       $366,680.00 385,014.00          404,265.00      424,478.00       445,702.00

Equipment          $                              $                $               $                $
Maintenance       23,000.00        $   23,990.00 25,190.00         26,450.00       27,772.00        29,160.00

                $                      $             $             $             $
Variable Costs 190,000.00 $ 196,150.00 205,957.00    216,255.00    227,067.00    238,420.00
                $                      $             $             $             $
               610,844.00 $630,756.00 662,294.00     695,410.00    730,180.00    766,687.00
Total Change
From Year
Prior                   0%        3.3%            5%            5%            5%            5%

                  $                $              $                $               $
Net Income        385,943.00       420,094.00     448,406.00       534,730.00      629,300.00       $734,088.00
Total Change
From Year
Prior                         0%           8.8%             6.7%           19.3%            17.7%            16.7%




10. Requested Funding / Use of Funds

Funds for establishing & maintaining new technologies – website with online and possible SMS ordering
capabilities – and for improvements to current operational facilities. Additional funding may be sought from outside
sources for billboard/highway signage marketing efforts depending on initial and current research efforts,
negotiations and outcomes. An effort to spread the larger portions of the marketing expenses amongst targeted local
neighborhood businesses that would increase the convenience aspect of the area as an alternative highway “rest
stop” may also be considered.
                                    USE OF FUNDS:
                             Upgrade kitchen equipment:
                                                Pizza Oven     $ 12,000.00
                                             Additonal Grill   $ 3,000.00
                             Dining room upgrade:
                                          Tables and chairs    $ 2,000.00
                                  Plates, Silver wear, Cups    $ 1,000.00
                             Marketing Plan                       TDB
                                     Bathroom refinished       $ 5,000.00
                             Website & Hosting                 $ 1,275.00
                             Total:                            $ 24,275.00


11. Design Plan

11.1- Style Guide

        11.1.1 Site View/Wireframe (Features)


                                                 HOME PAGE




           HOME             MENU                PROMOTIONS       ABOUT US     CONTAC US


    SAVINGS PASS            APPETIZERS
                                                         COUPONS             DIMITRIOS
                            PIZZA                                            COUPONS

                                                      MAILING LIST           GEORGE D.
                            SALADS
                                                                             JOHN D.
                            BURGERS/WRAPS

                           GREEK SPECIALITES
Mock Ups:
This is Cosmos Pizza and Family Restaurant’s contact page. The colors, design and navigation bar are the same on
all the web pages.

        11.1.3 Navigation Design

        The navigation design is very easy to use. There are tabs on the top that customers can click to take them
        to the web page of their choice. The Contac Us page above lists all the different way customers can contact
        cosmos as well as an e-mail box which allow customers to e-mail cosmos directly from the site.

        11.1.4 Visual Design

        Cosmos’ colors scheme is red, yellow, and black with navigation gray navigation tabs. There are pictures
        of the food prepared at Cosmos Pizza. We have created customer coupons and preferred savings card for
        customers to take advantage many savings when they eat at Cosmos.

        11.1.11 Editorial Design

        The language used in this website is very simple. All people who know how to use the internet will be able
        to comfortably navigate the Cosmos website.
11.2 Technical Specifications

        11.2.1 User Platform Requirements

        X86 computers with minimum of Windows XP and recommended memory and an internet browser.


                          11.2.2 Developer Platform Requirements

                          - Dreamweaver CS3

                          - Photoshop CS3

12.0 Test Plan

        12.1 Consumer Testing

        Consumer testing has been conducted by the long time Cosmos customers.

        12.1.1 Design/Interface Testing

        Design and interface testing will be done by the web designers. We will determine if the design is
        appropriate for the concept of a pizzeria. However, the final testing will be done by the Cosmos Pizza
        owners and will be launched upon their approval of the design.

        12.1.2 Navigation Testing

        Navigation testing will be performed by Cosmos Pizza and Family Restaurant owners and employees and
        selected clients. Testers will be assigned specific pages and asked to click through on specific links writing
        down where the link leads.

        12.1.3 Usability Testing

        Prior to go-live, trusted long-time Cosmos customers will be asked and incentivized to critique the site,
        submit test orders and any provide any additional comments/thoughts through the website – also, they will
        be asked to test a text-to-order system.

12.2 Business Testing

        12.2.1 Content Checking

        Promotions need to constantly be updated and aligned with off-line activities. Menu and prices changes
        will need to be updated and one or more of the Cosmos ownership/staff will need to take on the
        website/new technology systems as their assigned area of concern to ensure consistency of brand.

        12.2.2 Functionality testing

        It is very important that functionality testing is done often. Orders placed online or by text need to be
        executed immediately. If they are not received and a customer comes to pick up their order, not having the
        order can cause customer frustration. The customer will be very likely to go to another pizzeria.
12.2.3 Browser/OS Compatibility Testing

        Browser and compatibility testing will be done prior to site launch. We will test IE, Firefox and Safari
        compatibility.

13.0 Marketing Plan

        13.1 Website Marketing Strategy:

        13.1.1 Positioning

        We hope that with this website we can expand our customer base to other towns surrounding Norwalk.
        Cosmos hopes to educate customers on what makes it different from other pizzerias. Cosmos Pizza and
        Family restaurant represents fresh and affordable homemade-quality fare and a pleasant, comfortable
        family atmosphere with cheerful, accommodating staff. For those who know Cosmos and are loyal
        customers, a website is a representation that Cosmos is striving to serve their needs better and more
        conveniently.

        13.1.2 Threats to Substitution

        Cosmos is one of many pizzerias located in Norwalk. Cosmos has overcome threat and substitution since
        1980 and is still standing strong. Although there are many pizzerias in the area, many of them do not have
        a functioning website. Cosmos will provide a website that will educate the customer and will show
        pictures of their food that will convince customers to buy from Cosmos instead of other pizzerias.
        Customers will be aware that all food is made fresh and value priced. Coupons will be offered online to
        further enhance Cosmos dining value.

        13.2 Channel Management

        Cosmos has the advantage of being right off Interstate 95. Cosmos plans a billboard visible to all passing
        traffic, which will also be used to advertise the web address. In addition, Cosmos plans to market the
        website on menus and pizza boxes. Cosmos additionally plans to invest in search engine marketing for
        those searching online for family friendly pizza restaurants in the Norwalk area.

        13.3 Brand Management

        Cosmos has established and maintained a quality brand since 1980. Cosmo will continue to maintain the
        brand by providing fresh, high quality food at reasonable prices with a friendly atmosphere to all guests and
        the website will be an extension of the Cosmos brand and commitment to brand quality outside the
        traditional market area.

        13.4 Customer Relationship Management

        Customers care has been at the forefront of the on-going Cosmos Pizza business for almost thirty years.
        The owners are the managers and because they realize the importance of quality customer care and
        relations, an owner is always on-site.

Sources:
1
  http://www.bea.gov/regional/bearfacts/action.cfm?yearin=2007&areatype=MSA&fips=14860
2
  http://www.bestplaces.net/city/profile.aspx?ccity=&city=Norwalk_CT
3
  http://www.norwalkct.org/ReDevelopment/RKGstudy.pdf
4
  http://www.foodservicewarehouse.com/education/restaurant-marketing/demographics.aspx

				
DOCUMENT INFO