Secret Recipe Franchise Analysis

mysterious Recipe Franchise AnalysisExecutive abridgmentSecret Recipe, Dubai, UAE leave al single be a franchise of catering high society called Secret Recipe owned by ALAMERI Group. The crinkle is in aliment serve pains and has winnerfully established its brand name in Malaysia, Singapore, Ind atomic number 53sia, Thailand, China, Philippines, Pakistan, Brunei, and Australia by virtue of its fine quality cakes, fusion viands and distinctive service.The purpose for this headache image is to provide a written guide for managing the franchise of Secret Recipe, Dubai, UAE and seek financing from relevant institution and investors by providing detailed funding championship plan. This franchise of secret recipe go out be owned by Taleb AlAmeri and provide be primarily involved in the provision of variety unspoiled food products such as cheese, chocolate and fresh, cream cakes, health cakes and brownies.The business mission statement is to be solution oriented innovatively a nd the vision is to be one of the leading telecommunication companies in Africa. The objective of the corporation is to provide job opportunities youths, generate income for owners and to give 10% of the revenue back to the community.The fundamentals of this business success rest with the capacity to deliver appraise to the customer at competitive prices (Ajami, Cool Goddard, cc6).With the background knowl exhibit of stiff competition in the food industry within Dubai, this franchise aims at attracting and retaining its customer through the provision of fine quality food products and distinctive service. In appurtenance to the above, the fundamentals of this business get out encapsulate best demonstration of ethical practice within both the internal and external environment. This is because of the backdrop knowledge of the stringent measures and legislations that govern the food industry.The food industry is expected to grow in the near and innovative approaches to food service and delivery result define success within this industry. Changing consumer demographics and more(prenominal) and more complicated customers argon pushing food service businesses to the drawing boards (Toyne Nigh, 1999). The success of this franchise will depend on the capacity to create a right on market niche that cannot be broken.General follow DescriptionWhat makes the business very unique is the realization that businesses and consumers are increasingly demanding more leading edge in service and product delivery in the most efficient, time saving and reliable way (Hill, 2008).The Secret Recipe situated at Dubai Mall, UAE a franchise of Secret Recipes will be primarily involved in the provision of fine quality cakes and fusion food. This will encompass the provision of more than 20 lineaments of fusion food, 40 cake creations and pastries, with a flavorful range of ice cream and beverages.Mission statement To provide world class food services to the customer.Vision To be come a leading provider in fine quality cakes and fusion food.The company will offer value addition services innovatively using the existing technology for reliability and efficiency. With a powerful website to be developed, the customers will be able to sample and purchase their preferred filling of quality fine cakes and fusion foods online. The website will be used to advertise and sell the products and services offered by the company.Company Goals and ObjectivesGoalsTo have the franchise operating but collar months after receiving adequate funding.Obtain $ 200,000 of capital by 31st December 2010 to staff and launch the business towards achieving its long term goals.To attain the express year goal of recruiting employees by the beginning of the year 2011.ObjectivesAchieve excellent levels of high ethical standards within the food industry.Have a healthy, fortunate company that is a leader in customer service and that has a loyal customer following.Achieve a sales print of $ 20,000 within the first three months of the operation.Business Philosophy The most important aspect of this business is to provide value to the customer through distinctive service and in a path that guarantees their return.The more than 20 types of fusion food, 40 cake creations and pastries, with a flavorful range of ice cream and beverages will be sold to all customers of different backgrounds in United Arabs Emirates. However, I envisage to draw the larger bulk of my customer base from the residents of Dubai City. Because of the increasing innovative marketing approaches, the marketing strategy will strive to reach customers of diverse backgrounds and will then be narrowed down to touch on the specific market niche.Food industry is a growth industry that has leaped from one phase to the other and is expected to record tremendous growth in the future. Changes that will arise in the future will mainly be in regard to changing demographics and the complexity in the demands of the customer. This will also include changes in technology that will define the operations and customer service delivery (Singh Delios, 2005). My company will stay in tandem with the changes in the food industry and at pace with technological onward motion to reap the most out of the benefits presented by these two growth scenarios.My greatest strength and competency that will also be my competitive advantage is the uncomparable experience in the food industry and chain management. As the owner of this franchise, I plan to put in an aggressive and innovative marketing ply within this industry that will immediately smoke away competition and enhance my entry and strong regional presence in Dubai.I strongly believe my competitors strength will be based on tears of operation that have made them acquire a deeper sense of understanding of the customer. In fact, after an intensive explore on the competitors strengths and weaknesses, the company realized that the competitors strengths a re based on the experience, location, advertisement, employee, technology, financial, political connection and goodwill.I plan to plough in my vast experience in management within the food industry to his business and ascertain its survival. In addition to the above, my capacity to raise capital that will cover important business start-up areas will provide me a competitive advantage against my competitors who has struggling with waning confidence in small and medium size entrepreneurs by banks. Furthermore, I expect to reap from the efforts of the main company in regards to brand and image building.This will be a bushel proprietorship type of business. This is because I believe the inability to raise adequate capital compliances the reason behind enlargement and partnerships. Capital is not a problem in my case. Furthermore, sole proprietorship offers the best and simplest environment in regard to decision making (Cherunilam, 2004). I plan to execute my decisions and discharge m y duties within this business without any electrical resistance and inhibition.Products and ServicesThis will be an entirely food business that will only palm with the products of the mother company. I will sell the more than 20 types of fusion food, 40 cake creations and pastries, with a flavorful range of ice cream and beverages offered in allSecret Recipeoutlets.After an intensive research on the competitors strengths and weaknesses, the company realized that the competitors strengths are based on the experience, location, advertisement, employee, technology, financial, political connection and goodwill. These will form the areas that will define my competitive disadvantages.As a new franchise, I plan to get into the market at a slightly reduced sales fee in comparison to my competitors. This will form the introductory offer of the business that is aimed at drawing the customer to the business.Marketing PlanMy marketing ill revolve around the need to adapt my brands to endure local anesthetic and regional culture because of the understanding that branding act as a kernel of linking items that are part of product line and emphasizes the individuality of product items. This emphasis can only be achieved in instances where products items fit into the local or regional culture of the target market. This is a food industry and because I expect very little conflict with the culture of the people in Dubai.In addition to the above, the adapting of these brands to fit into the local and regional culture of the target market is a competitive advantage that is commonly used by competing firms engaged in the sale of similar or substitute products. In essence, this means that a firm that outperforms the others in the primary goal of performance- favorableness-has competitive advantage. A reference back to the branding generic model of firms can be made, where the question of whether firms are branding strategies is cost driven or value added arises. Value added co mpetitive advantage arises in instances where competing firms attach strong cognizance to the understanding of local or regional culture before launching their product lines. Companies succeed in branding strategies that their rival because their products are positioned to capitalize on their unique characteristics of a local or regional group and which, in one or more aspects, their rivals find hard to emulate. This competitive advantage gives it a basis for outperforming competitors because of the value that firms are able to present to the customer. These will define my marketing plan. way and OrganizationAs I have stated, the day to day management of the business will be my primary duty with the support of other individuals that will form part of employees in the company. The procedure of running the business will be through delegation as per the chain of current bellowDIRECTORS CEOsSENIOR MANAGERFINANCE MANAGERASSISTANT AGENTSWATCHMENHUMAN RESOURSE MANAGERThe managers and the s taff are very important for the company as they are the means through which goals are realized, duties are carried out and they provide the links between the organization and the clients.5.2 Management teamThe initial management team consists of the founders who will be working jointly as shareholders. The founders of the company share a vision for the success of Secret Recipe Franchise situated in Dubai, UAE. Their duty will involve day to day running of the business which involves finance, logistics and human resource.In future the company will have a general manager, finance manager and human resource manager who must have a degree or diploma with the relevant course from a recognized University or College.5.3 Other personnelApart from the management team, the company is having three (3) supervisors at the head office and one (1) assistant supervisor in every department. The company is planning to employ watchmen, office messenger and more assistant agents as we will be expandi ng. These personnel have and will have minimum qualification of O level education and diverse knowledge in the food industry.5.4 RecruitmentThe management team has been able to recruit other personnel through networking and train them within the already existing outlets before they are posted to the new outlets. The business will also consider advertising through posters, internal memo, friends and relatives, internet, electronic media like radio and printed media like newspapers.The recruitment process will involve short-listing of the applicants, interviewing of the shortlisted applicants, selection of the successful applicants and finally issuing the appointment letter. We will also recruit through confirmation of the interns and the volunteers.5.5 Orientation, training and developing of staffSecret Recipe Franchise Company will carry out orientation, training and development of staff through induction, on the job training, contract training, refresher courses, internship and eva luation after training.The company is spirit forward to become custodians of a very fragile yet integral good customer trust, therefore the company will maintain refresher courses to ensure all our staffs are properly aligned when it comes to personal integrity.5.6 Remuneration/incentives5.6.1 Salaries/wagesThe company will offer to the personnel a very competitive elemental salary according to the qualification, experience, position and expertise. The salary will also be based on what the competitors offer and the companys returns. There will be a accusation for the sales personnel and prompt payment for wages.5.6.2 Fringe benefitsIncentive is also another factor that the company has put at the top of priorities. Incentives will enable, stir up or encourage a particular course of action which in turn will contribute to the company success. We will offer allowances in name of overtime, leave, millage, hardship and many more as they may arise. There will be bonuses including awa rds in terms of value for money and certificates.Currently the company provides tea, compressible drink and has installed a television system. The business will soon embark on taking our staff to the trips, have insurance cover for them and remit shares on their behalf to their respective insurance companies.5.7 Support servicesThe company will require the following support services financial advisor, legal advisor, banking system, security support services, floor and insurance services.9. FINANCIAL PLANThe company has at its disposal a sum total of $20,000 as a financial source from directors personal savings. We are therefore looking for funding from other investors and banks. The business finance will be used to for the facilities, equipments, materials, cash for operating expenses and salaries, fees and other costs.9.1 Capitalization9.1.1 Own contributionCapitalization based on the shareholders contributions is $20,000.9.1.2 Proposed funds from acceptance sourcesFor the busi ness to operate as proposed, the start-up cost must be met. The company is therefore proposing funds from borrowing sources of $ 20, 0009.1.3 Total investmentTotal investment is the sum of own contribution and the proposed funds from borrowing sources which is $40,000.The following sections lay out the details of the financial plan for rapid, but controlled growth for the next one year. The simple structure to be adopted by the company will provide a great deal of flexibility resulting in few coordination problems hence quick reaction to changes in the market.7.3 hard cash flow projection for the year 2011JanFebMarAprilMayJuneJulyAugustfamilyOctNovDecTotal silver INCash carriedForward3001,866.671,733.341,800.011,851.681,903.352,005.022,056.692,088.362,180.032,216.72,303.3722,305.22 bestow2,000000000000002,000Cash from gross sales2006008008508509009009001,0001,0001,0501, atomic number 610,150CASH OUTSalary3504504505105105105105105505505505506,000Rent404040454545454545505050540Offic e RunningCosts505050505050507070707070700LOAN PAYMENT93.3393.3393.3393.3393.3393.3393.3393.3393.3393.3393.3393.331,120Drawings1001001001001001001501501502002002001,650CASH BALANCE1,566.67-133.3366.6751.6751.67101.6751.6731.6791.6736.6786.67136.672,140.04CUMULATIVE1,866.671,733.341,800.011,851.681,903.352,005.022,056.692,088.362,180.032,216.72,303.372,440.04NOTE All values are in $ (00)7.3 Cash flow projection for the year 2011JanFebMarAprilMayJuneJulyAugustSepOctNovDecTotalCASH INCash carriedForward2,440.042,487.792,535.542,583.292,631.042,678.792,726.542,774.292,822.042,869.792,917.542,965.2932,431.98LOAN0000000000000Cash from Sales1,099.581,099.581,099.581,099.581,099.581,099.581,099.581,099.581,099.581,099.581,099.581,099.5813,195CASH OUTSalary6506506506506506506506506506506506507,800Rent58.558.558.558.558.558.558.558.558.558.558.558.5702Office RunningCosts58.3358.3358.3358.3358.3358.3358.3358.3358.3358.3358.3358.33700LOAN PAYMENT93.3393.3393.3393.3393.3393.3393.3393.3393.3393.33 93.3393.331,120Drawings2002002002002002002002002002002002002,400CASH BALANCE39.4239.4239.4239.4239.4239.4239.4239.4239.4239.4239.4239.42473.04CUMULATIVE2,487.792,535.542,583.292,631.042,678.792,726.542,774.292,822.042,869.792,917.542,965.293,013.04NOTE All values are in $ (00)7.3 Cash flow projection for the year 2012JanFebMarAprilMayJuneJulyAugustSepOctNovDecTotalCASH INCash carriedForward3,013.043,196.493,379.943,563.393,746.843,930.294,113.744,297.194,480.644,664.094,847.545,030.9948,264.18LOAN0000000000000Cash from Sales1,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.51,429.517,153.5CASH OUTSalary84584584584584584584584584584584584510,140Rent76.0576.0576.0576.0576.0576.0576.0576.0576.0576.0576.0576.05912.6Office RunningCosts757575757575757575757575900LOAN PAYMENT0000000000000Drawings2502502502502502502502502502502502503,000CASH BALANCE183.45183.45183.45183.45183.45183.45183.45183.45183.45183.45183.45183.452,201.4CUMULATIVE3,196.493,379.943,563.393,746 .843,930.294,113.744,297.194,480.644,664.094,664.095,030.995,214.44NOTE All values are in $ (00)9.6 break-even levelsCheese CakesChocolate and Fresh choice CakesHealth CakesBrowniesRevenue6,342,0001,080,0001,000,0001,008,000720,000Selling Price (SP)/unit325632,2507080Units198,18819,2863114,4009,000Variable cost/unit..5428,37515Variable cost..1,041,444879,625135,000Contribution6,342,00038,556120,3751,008,000585,000Weighted Average Contribution (WAC) = total contribution/total revenue (Johnson Turner, 2003).= $ 80,939.31/$ 101,500= 0.8Break Even-Point (BEP) = Fixed cost/WAC= 90,500 Units9.7 Measurement of profitability9.7.1 Operating profit marginOperating profit margin = (operating profit/Revenue) x100First yearOperating profit margin = (1,400/101,500) x 100= 1.38% here and now yearOperating profit margin = (4,730/131,950) x 100= 3.58%Third yearOperating profit margin = (22,009/171,530) x 100= 12.83%9.7.2 Current balanceCurrent Ratio = Current assets/Current liabilitiesProjected Cu rrent Ratio by the end December 31, 2011 = 21,000/11,200= 1.8759.7.3 Return On Investment (ROI)Return On Investment (ROI) = Net Profit/InvestmentReturn On Investment (ROI) for the ended December 31, 2010 = 1400/23,000= 0.06