By Gina Behrend & Tammy Koopmans
Fast & Fresh ItalyImagine the Pasta-bilities!! Industry Analysis Sales increase of 4.9% Daily Sales of $1.3 Billion Annual Sales (projected 2005): $476 Billion Restaurant Industry
US Food & Drink Sales (in billions) Fast & Fresh ItalyImagine the Pasta-bilities!! Source: NRA Forecast
Distribution of Restaurant Types in Sioux City, IA Fast & Fresh ItalyImagine the Pasta-bilities!! Source: US Department of Labor & Statistics
Food Dollars Spent in US Fast & Fresh ItalyImagine the Pasta-bilities!! Source: National Restaurant Association
Fast & Fresh ItalyImagine the Pasta-bilities!! Industry Analysis Opportunities –Growing demand for fast-casual restaurants –Newly developing retail area –Busy lifestyles & health conscious individuals –Introduction of ethnic foods –Brand Recognition Threats –Consumer spending –Local competitors –Supplier relations & securing supplies at reasonable costs –Budgeting
Fast & Fresh ItalyImagine the Pasta-bilities!! Customer Analysis Target Market –Empty-nesters, childless couples, singles, business people Dine out an average of 2.5 times per week Trends –Consumer Demand for Choices –Consumer Demand for Convenience
Market Analysis Fast & Fresh ItalyImagine the Pasta-bilities!! Source: Sioux City Chamber of Commerce Statistics Potential Customers Growth CAGR Residential Customers1.90%5,5005,6055,7115,8205, % Business Customers2.30%7,5007,6737,8498,0308, % Total2.06%13,00013,27813,56013,85014, %
Competitor Analysis Local Competitors –Limited Service –Full-Service Fast & Fresh ItalyImagine the Pasta-bilities!!
Dining Out Characteristics Results Fast & Fresh ItalyImagine the Pasta-bilities!! Qualitative Survey of Marketing Administration Students – October 2005 Qualitative Survey (October 2005 ) Total ScoreImportance Rating Food Quality Service Menu/Variety Price Environment
Competitive Analysis Fast & Fresh ItalyImagine the Pasta-bilities!! WeightFast & Fresh Italy Wgt Score Fast & Fresh Italy SbarroWgt Score Sbarro McDonald’sWgt Score McDonald’s Quizno’sWgt Score Quizno’s Food Quality Service Menu/ Selection Price Environment Combined Score Source: Qualitative Survey - October 2005
Fast & Fresh ItalyImagine the Pasta-bilities!! Internal Analysis Strengths –High quality food –Quick and friendly service –Variety of ethnic menu items –Healthy choices –Affordable prices –Great Location Weaknesses –Limited Budget
Fast & Fresh ItalyImagine the Pasta-bilities!! Fundamental Marketing Strategies Local Suppliers –Metz Baking Company/Old Home Bread –Tyson Foods
Demand Forecast Potential –13,000 customers x 130 meals out x $ 7.50 $12,675,000 Fast & Fresh Italy Projections (First Year) –9,750 customers x 8 meals x $7.50 $585,000 Fast & Fresh ItalyImagine the Pasta-bilities!!
Demand Forecast Fast & Fresh Italy Fast & Fresh ItalyImagine the Pasta-bilities!!
Fast & Fresh ItalyImagine the Pasta-bilities!! Positioning Strategy Competition Strategy –Differentiation
Fast & Fresh ItalyImagine the Pasta-bilities!! Marketing Mix Strategies Product Promotion
Fast & Fresh ItalyImagine the Pasta-bilities!! Marketing Mix Strategies Price –$2.40 (cost of food) /.32 (food cost percentage) = $7.50 Personnel –6 full-time employees –$7.75 per hour x 160 hours per month x 6 employees = $7,440 per month ($89,280 for first year)
Fast & Fresh ItalyImagine the Pasta-bilities!! Marketing Mix Strategies Place –5801 Sunnybrook Drive Sioux City, IA
Fast & Fresh ItalyImagine the Pasta-bilities!! Implementation & Control
Fast & Fresh ItalyImagine the Pasta-bilities!! Conclusion
Fast & Fresh ItalyImagine the Pasta-bilities!! Appendix 12 Month Sales Forecast 12 Month Personnel Forecast 12 Month Profit & Loss Forecast Promotional Materials –Advertisements –Menu
Fast & Fresh ItalyImagine the Pasta-bilities!! Questions?