Logan Square Executive Summary
Running Head: La Cocina en Stickney ® Logan Square is
La Cocina en Stickney ® Logan Square
Marketing Plan
DeVry University
Essie Fregoso
Business 319
La Cocina en Stickney
Logan Square
Table of Contents Page Executive Summary 4 1. Company Description 4 2. Strategic Focus Plan 5 Mission 5 Goals non-financial 5 Goals Financial ……………………………………….…………………………………………….………………………………5 Competitive advantage …….…………………………………………………………………………………………………..6 3. Situational Analysis………………………………………………………………………………………………………………..6 SWOT Analysis 6 Environmental Scan Chart 7 Environmental Analysis 8 Social 8 Economic……………………………………………………………………………………………………………………………9 Technological …………………………………………………………………………………………………………………….9 …show more content…
Competitive………………………………………………………………………………………..………………………………9 Regulatory..………………………………………………………………………………………………………………..………9 4. Customer Analysis 10 Marketing and Product Objectives 4 Market-Product Grid 5 Target Markets 6 Points of Difference 6 Positioning 6 5. Industry Analysis 10 6. Market Product Focus 11 Market Grid 12 7. Financial Projections 13 Price Points 14 Break Even Analysis 15 Sales Forecast Chart……….…………………………………………………………………………………………………….16 8. Promotional Strategy 16 Gantt Chart 18 Advertising Strategy 18 9. Organization ……………………………………………………………………………………………………………………….19 10. Evaluation ………………………………………………………………………………………………………………………….20 Appendices Appendix A: La Cocina en Stickney ® Logan Square menu 21 Appendix B: La Cocina en Stickney ® Logan Square menu 22 Appendix C: La Cocina en Stickney ® Logan Square photos 24 11. Bibliography ………………………………………………………………………………………………………………………..25
Executive Summary La Cocina en Stickney ® Logan Square is a recently opened restaurant in the Logan Square community. Dedicated to offering the finest quality food, service, and social entertainment we aim to make this location a sought after experience, not just dinner. Essie Correa-Fregoso an experienced food service manager with a degree in Business Management has over twenty years in the food industry and will bring the expertise in operations management that has made the Stickney location famous to the Logan Square location. Ben Correa, Evelyn Hernandez, and Edith Beardsmore, collectively have over 30 years of experience as chefs and their commitment to quality food preparation and design will make this location successful. The Logan Square community offers an amazing opportunity for success due to location and demographics of the population. One of Chicago’s most distinguished neighborhoods with its mansions and wide boulevards it boasts the Logan Square Auditorium, the Logan Square Theatre, and Stan Mansion as entertainment venues within walking distance. These venues will consistently offer La Cocina en Stickney ® Logan Square an elite clientele. 1. Company Description
La Cocina en Stickney ® launched its signature restaurant in Stickney, Illinois in the spring of 2008. Founded by Ben Correa along with his wife Essie Correa-Fregoso and his sister Evelyn Hernandez, La Cocina en Stickney ® brought a new flavor to this just- south of Chicago village. Each an amazing chef in their own right, they have teamed up to create and offer the Logan Square community the same authentic and high quality fare as the Stickney location.
Puerto Rican cooking at its finest is what you will find at this sit down restaurant offering a full service bar and desserts by renowned pastry Chef Edith Beardmore, including her sought after Guava Ribbon Cheesecake. Not to be confused with similar restaurants located near Humboldt Park, this restaurant is a full service restaurant serving only made to order dishes from its limited menu intended in that manner as to not diffuse the attention to detail each dish requires. Details is what this restaurant is all about from its easily accessible location, ample parking lot and beautiful interior, you will definitely feel that nothing has been left to chance as you enjoy a spectacular meal. 2. Strategic Focus and Plan
La Cocina en Stickney ® has proved successful; this marketing plan will detail how the owners having followed a successful strategy at the Stickney location of finding a location with ample parking, creating a beautiful dining room, providing high quality meals off a limited menu intend to apply this same strategy at its Logan Square Location. This next section will include 1) the mission, 2) the goals both financial and non-financial and 3) competitive advantage of La Cocina en Stickney ®.
Mission
La Cocina en Stickney ® Logan Square will provide a beautiful dining experience by offering high quality, authentic Puerto Rican food, with service that guests will not soon forget.
Goals / non-financial 1) To become a well established presence in the Logan Square community. 2) To contribute to the development of the Logan Square community by providing assistance in its beautification projects as well as providing a mentor in their Business Mentor Program. 3) To be named one of Chicago Magazines “Restaurants to Watch”.
Goals / financial 1) To achieve break-even point in the first two years. 2) To achieve 15% profit by the third year in operation. 3) To attract investors for future expansion/additional restaurants.
Competitive Advantage
La Cocina en Stickney ® has the competitive advantage of being the only Puerto Rican restaurant of its kind in the area. A limited specialty menu, full service bar and its own pastry chef make this restaurant unique. 3. Situational Analysis This SWOT analysis provides the key strengths and weaknesses that La Cocina en Stickney ® is influenced by in implementing its operating strategies.
SWOT Analysis | Strengths | Weaknesses | Internal Forces | • Unique product | • High start-up costs | | • Professional chef staff and highly skilled management team | • Convincing customers that we are not the typical Puerto Rican restaurant filled with fried foods. | | • Beautiful and appealing restaurant | • Advertising costs | | • Located in an area that will expect to pay what we charge for a meal | • Hiring and training of employees that reflect the flavor of the restaurant at the caliber of employee we want | | • Attention to detail, each dish made to order | | | Opportunities | Threats | External Forces | • Only ethnic restaurant of its kind in the area | • Huge ethnic population might consider duplicating our process |
External Forces | • Property next door will soon become available and lead to addition of patio | • Bad weather would close this area, lose potential customers | | • Excellent and convenient location with ample parking and accessible from all areas of the city by train or bus | • Other restaurants in the area | | • Yearly street fest provides free advertising as residents drive in for the fest. | • High volume of outside traffic my discourage some driving into the area | | • Trains run all night accommodating our late night closing | |
ENVIRONMENTAL TREND INDENTIFIED BY ENVIRONMENTAL SCAN FORCE
SOCIAL
* AREA IS HIGH ENERGY * GENTRIFICATION IN PROCESS * VERY DIVERSE
ECONOMIC
* PROFESSIONALS WITH DISCRETIONARY INCOME LIVE AND TRAVEL THROUGH THE AREA * REAL ESTATE PRICES STABLE * NO CHARGE FOR PARKING
TECHNOLOGICAL
* EASY ACCESS TO VENDORS AND SUPPLIES * ABLE TO MASS EMAIL * ONLINE DINING SPECIALS TO INTRODUCE BUSINESS
* SAME ETHNICITY RESTAURANT NEARBY, DIFFERENT CONCEPT * ONE PATIO RESTAURANT ON SAME BLOCK * NO ONE ELSE OFFERS OUR LIMITED MENU, HIGH END FOOD
COMPETITIVE
REGULATORY * EASY ONLINE PROCESS FOR BUSINESS LICENSE * FOOD SANITATION LICENSES IN PLACE * CONCERN OVER FUTURE ZONING CHANGES THAT WOULD AFFECT PATIO *
Environmental Analysis
Social
The Logan Square community has been in a gentrification process for the past 7 years. It still maintains a lot of its diversity with a mix ethnicities and age groups. In may in fact be more diverse than ever before. Young professionals, musicians, artists, and entrepreneurs all live in a mixed neighborhood of single family homes, two and three flats buildings, apartments above storefronts as well as multi unit condo buildings. This high energy group, always out and about will present a great customer base for the restaurant; they can easily walk by or bring company over for a great meal.
Located immediately across the street from the Logan Square Blue Line train stop, this location is very visible to those traveling through the area and makes a great meeting place. As a stop along the Blue Line, after enjoying a meal here patrons can easily hop back on the Blue Line, go one stop over to enjoy the nightclubs on Milwaukee Avenue.
Economic
Due to gentrification, the community has been able to change its image from a low income neighborhood to a desirable one where investors have spared no expense in changing the look of storefronts and even its small park. At this point in the process prices of real estate have become stable and are no longer skyrocketing. This has made it possible to buy the property the restaurant sits on and to also allow us to negotiate to buy the adjacent property to add a patio dining area. The City of Chicago has provided a parking lot that accommodates more than 150 vehicles discreetly hidden behind a line of trees directly across from the train stop, this makes it possible for us use the adjacent property for the patio versus the parking lot addition we initially intended it for. Professionals with discretionary income perceive value in paying higher prices; this allows us to charge more for our meals at this location increasing our profit potential.
Technological
Advances in software allow us to track supplies as they are used; this makes ordering stock easy, reduces waste, saves time, money, and effort in the process. These same advances in software also allow us to buy email lists that help us target a specific demographic that we can then market to. We can offer tasting nights where smaller portions are served so they can sample more than one dish, this will help us retain our high end image while offering the patron a reason to come in and sample us.
Competitive
A challenge we see is that nearby is another Puerto Rican restaurant, its prices are lower and service is faster as its “fast food”. The image is completely different but this something we need to consider as some foods will be very similar and price justification may come into play. Our concept of a limited menu and to offer what is authentic Puerto Rican foods, not the Americanized Puerto Ricans version which mainly consists of fried foods will set us apart. We will also serve some seafood which they do not. On the same strip of the square there are two other restaurants, one Mexican with a patio seating area and one Italian restaurant. These too will present a challenge as they have the same accessibility that we do and are after the same market that we are.
Regulatory
Business and sanitation licenses are already in place and this will not present a problem as the staff is all well trained in food safety and cleanliness. The restaurant itself meets or exceeds inspection standards. Seating and dining areas are all within capacity allowed by law. As the patio is a future plan and not yet in place, zoning is an issue that we are concerned as challenges might come into play in the future. The same gentrification that has helped us in establishing prices is also being met by concern from those that have long ago established themselves in this neighborhood, do not like the changes and want to limit them. Should they prove successful before our patio is built, we will not be “grandfathered” in and will have to eliminate that plan. 4. Customer Analysis La Cocina en Stickney ® Logan Square, intends to mold its image to appeal to couples, groups and those out for a special evening where you can get away from the stress of work and kids at home. Our dining room will be designed in such a way that we will offer intimate seating as well as a larger seating area where diners can see and be seen. As our society moves towards healthier eating options we will with our limited menu be able to prepare meal s that will appeal to those desiring smaller portions as well as to those with a hearty appetite desiring comfort food with a healthy twist. A night out on the town would not be complete without a toast or two and with our full service bar our diners can enjoy a cocktail before dinner, during or after. Desserts on a cart, a blast from the past will be offered to give our diners the impression they are fully being catered to and to motivate them to make it a complete meal. Our research shows that the median age in Logan Square is 31, an age where socializing is a major part of life, our customer is young enough to be hip and old enough to want the finer things in life; which we can offer for the evening. Our price point is designed to so that diners perceive high value for their meals without having to travel to downtown Chicago. 5. Industry Analysis According to National Restaurant Association and Deloitte & Touche LLP, sales in the full service restaurant industry nationwide are projected to reach $194.6 billion in 2011. Sales in Chicago alone based on the 2007 census were 2,130,271 and taking into consideration the forecast of the National Restaurant Association, we can expect sales to continue to grow in Chicago. The Logan Square community with a population of 96,200 has tremendous potential as the average household expenditure averages $46,000 per year.
Concern Source of information What type of dishes would drive the customer out of their home and into the restaurant | Surveys in the community | Would offering a banquet or party room area change the image of the restaurant | Foodie survey / underground restaurant community | Limited menu – will this concept be successful | National Restaurant Association / web search | Local sourcing trends and customer perception | National Restaurant Association / web search |
6. Market Product Focus La Cocina en Stickney ® Logan Square’s aim is to market itself as a lifestyle product sending the message that we are a sexy, high quality, and unique social environment that the customer must be seen at. We provide a high quality social environment offering top shelf products at our bar and a very intimate yet contemporary atmosphere. Our menu is unique as it is very limited and all dishes are made to order; substitutions or additions are encouraged as we want the customer to feel they are truly being catered to. In order to tap into new markets La Cocina en Stickney ® Logan Square will begin offering chef consultations for parties of ten or more celebrating a special occasion. Our chefs will consult with the client and the floor manager to offer a unique menu and a desirable dining room location. Our head bartender will offer specialty service with drinks designed to complement each dish. Our pastry chef will design desserts appropriate for the occasion and with the guest of honor in mind. To further create the atmosphere of exclusivity, La Cocina en Stickney ® Logan Square will have invitation only Wednesday price fixed menu dining. Only three different meals will be prepared on this day and for one price the customer will have a sample of each in addition to a drink of choice and a trio dessert sample.
Market Grid
MARKET SEGMENT GRID | | | | TUESDAY | WEDNESDAY | THURSDAY | FRIDAY | SATURDAY | SUNDAY | TOTAL | LOCAL/DINNER | | 1 | 1 | 2 | 3 | 3 | 2 | 12 | LOCAL/DESSERT | | 0 | 0 | 1 | 2 | 3 | 1 | 7 | LOCAL/DRINKS & APPS | | 0 | 1 | 3 | 3 | 3 | 1 | 11 | LOCAL/LUNCH (SAT/SUN ONLY) | | | | | | 3 | 3 | 6 | | | | | | | | | | NON LOCAL /DINNER | | 0 | 2 | 3 | 3 | 3 | 2 | 13 | NON LOCAL /DESSERT | | 0 | 0 | 0 | 2 | 3 | 1 | 7 | NON LOCAL/DRINKS & APPS | | 0 | 0 | 3 | 3 | 3 | 1 | 7 | NON LOCAL/LUNCH | | | | | | 3 | 2 | 5 | | | | | | | | | | SCALE OF WHERE 3 IS BEST AND 0 NOT | | =3 | =2 | =1 | =0 | | | | | | | | | | | | |
Our market analysis grid show that in might be in the best interest of La Cocina en Stickney ® Logan Square, to operate only Wednesday through Sunday and remain closed on Mondays and Tuesday. The majority of our business is from locals. It is expected that when the patio is open we will drive business in during the summer months as people strolling by will become part of the scene. Our Saturday and Sunday lunch hour has been successful; opening at 2pm thru 2am has meant a bigger share of the local market as patrons are able to stop by for a late lunch or very early dinner allowing them to have dinner and then enjoy one of the local shows. Our weekday opening of 4pm is essential to sustain our image of a high end dinner restaurant and to attract the customer we are targeting. Our Thursday thru Saturday crowd is diverse and our fully stocked top shelf bar has proven successful for after dinner drinks and even to those that stop by for only appetizers and drinks. Our desserts have become an attraction and we draw from locals walking by wanting to sit and enjoy something sweet before calling it a night; we are contemplating of designating a seating area for this type of customer. POTENTIAL NEW CUSTOMERS | POINTS OF DIFFERENCE | NEW PRODUCTS | Corporate Business Lunch | Intimate dining area, high end dining | Lighter lunch options, low carb meals such as lobster salad, green bananas escabeche salad, lunch portion braised pork | Catering | Meal offering completely different from traditional catering menus | Escabeche bacalao, olive oil tomato avocado plate, Edam soft and hard cheese platter, pastelon de plantain served with steak and tomato tower | Pre-event dinner designation tie- in | Tied into at ticket office we would offer on time menu offerings, quicker service | Smaller meal options tapas style steak and tomato tower, mini stuffed plantain, empanadas with mixed greens and spinach salad, bite size desserts |
7. Financial Projections STAGE OF THE PRODUCT LIFE CYCLE
INTRODUCTION GROWTH MATURITY DECLINE
+
0
-
La Cocina en Stickney ® Logan Square is currently in its growth stage. A recently introduced restaurant we are trying to gain market awareness through promotional strategies such as advertising in our current location in Stickney, advertising in Chicago Magazine, through placement at the local events ticket office as well as through radio advertisement. Product differentiation is what sets us apart from other restaurants in this area. Filled with Mexican, Italian, fast food, and Chinese restaurants we offer a different menu items in a setting that is not rushed and not casual. Our brand “La Cocina en Stickney ®” is becoming well known for high end dining and we will count on its recognition and expectation of its product to drive business in.
La Cocina en Stickney ® Logan Square will focus on the following two price objectives, maximizing current profit to be able to quickly measure the success rate of the Logan Square location. The other objective will be unit volume as this will help determine inventory and staffing needs as well as provide a foundation that will direct how much advertising and promotional tools will be needed. Price constraints that will be considered will be demand for product. As the only high-end Puerto Rican restaurant in the area and the only full service restaurant on the square, La Cocina en Stickney ® Logan Square is poised to be in high demand. We are confident our pricing strategy will add value to our product. The second price constraint we will consider is single product versus product line. With a limited menu we only have so many options to offer and our focus will be quality of product that demands a higher price. The third price constraint will be the type of competitive market we will operate in within our region. Once again being the only high-end, full service restaurant on the square and with very few restaurants that even offer similar food we are in a unique great position to reap the majority of the market share.
PRICE POINTS Light Meal / Brunch | No alcohol or dessert | 24.00 ea | Dinner full meal | With alcohol (2) and dessert (1) | 62.00 ea | Appetizers and drinks | Alcohol (2) and dessert (1) | 37.00 ea |
Using the above chart, the average price of a meal at La Cocina en Stickney ® Logan Square is $41, the price to produce each meal is $18. This includes cost of employee production, food cost, and other miscellaneous costs. We will also demonstrate break-even point for meal unit price at $38 and at $45. The total fixed costs are $120,000.
BEP = [FC ÷ (P – UVC)]
BEPQuantity = [$120,000 ÷ ($41.00 – $18.00)] = 52,174 meals BEPRevenue = 52,174 meals × $41.00/meal = $2,139,134.00 BEPQuantity = [$120,000 ÷ ($38.00 – $18.00)] = 60,000 meals BEPRevenue = 60,000 meals × $38.00/meal = $2,280,000.00
BEPQuantity = [$120,000 ÷ ($45.00 – $18.00)] = 44,444 meals
BEPRevenue = 44,444 meals × $45.00/meal = $1,999,998.00
BEPQuantity = [$120,000 ÷ ($47.00 – $16.00)] = 38,709 meals BEPRevenue = 38,709 meals × $47.00/meal = $1,819,223.00 BEPQuantity = [$120,000 ÷ ($49.00 – $16.00)] = 36,363 meals BEPRevenue = 36,363 meals × $49.00/meal = $1,781,787.00 BEPQuantity = [$120,000 ÷ ($50.00 – $16.00)] = 35,294 meals BEPRevenue = 35,294 meals × $50.00/meal = $1,764,700.00
Based on the competition from other restaurants, quality and type of product being offered, and location of the restaurant, we are confident we can raise our prices and without compromising the quality of the food use some local vendors that will allow us to adjust our unit production.
La Cocina en Stickney ® Logan Square will offer a 10% discount to patrons dining and then visiting one of its partner locations such as the Logan Square Auditorium or the Logan Square Theatre. Final price $50 – 10% + 20% gratuity = $54 The following is the sales forecast for the first two years of operation for La Cocina en Stickney ® Logan Square. La Cocina en Stickney ® Logan Square is a direct channel. We will perform all duties related to marketing our restaurant to our clients using no intermediaries.
8. Promotional Strategy The target audience for La Cocina en Stickney ® Logan Square is the mature person, couples, and business people with discretionary income. In order to set ourselves apart from restaurants in the area our strategy is price our menu to reflect the clientele we are seeking. In order to promote the new venue we will place high end art boards inside the Stickney location as well as two theatres in the area. The Logan Square Chamber of Commerce will highlight us in an article which will include photos of the inside of the restaurant featuring a dining couple, a couple having drinks at the bar and an illustration of the future patio. Chicago Restaurant Magazine, a monthly magazine features what is new and happening around Chicago. We have submitted our details for consideration in their first fall publication. This feature will highlight the intimacy of the dining area and will feature the fireplace and our privacy booths. High-end glossy placards once again featuring the fireplace will be made available to four-star and above hotels in the area to leave with their welcome packets; this promotion too will run thru the fall to create business during the winter season when we may potentially slow down as the holiday season approaches. We want to create excitement for the spring when our new patio opens. To gauge responsiveness to our promotions and see which placements are generating the most response we will instruct our staff to casually in the way of conversation ask if the customer has dined with us before and if not try to ascertain how they became aware of us, a mark next to their reservation or in a log will help track responsiveness. A second option to gauge responsiveness will be to give each customer seated at the bar or at the dessert bar a survey to fill in. A third option will be “contest cards” filled out and dropped in a box at an entertainment venue, with this option the customer will check off the appropriate boxes and enter to win a gift card to be used at the restaurant. For those that have offered us an email address, we will follow up after this visit to rate their experience at the restaurant, this will give us direction in areas that need focus. Each promotion tool sends a consistent message that we are high-end, detail oriented and ready to serve and delight the customer with our location and offerings. All will feature the intimacy and elegance of the restaurant. The following chart is our implementation schedule for promotions.
| | | | | | | | Task | May | June | July | August | Sept | Oct | Nov | Schedule meeting hotel managers | | |
| | | Schedule meeting with theatre managers | |
| | | | | | | Order prints ads | | | |
| | | schedule Chicago Magazine interview | | | | | | distribute print ads | | | | | |
| | | | | | | | | | | | | | | | | Green - begin Planned completion date Actual completion date | |
Advertising Strategy For advertising La Cocina en Stickney ® Logan Square, will use a mix of magazine ads, local outdoor posters at the theatres, internet, as well as any free features in local magazines.
Radio advertisement at this time is not feasible as part of the experience is visual, it is emotionally tied but what you are seeing. Internet options such as offering discounts through social sites such as Living Social will create awareness and create demand as we will make offers that are irresistible to those that would want to try us but are a little be concerned about the cost. Once they purchase the discount coupon we will limit how much time is available for them to use so we can create urgency. Premiums in which we will offer price reductions to venue managers so that they can promote our business for us will also be used. With premiums hotel managers will be able to pass the savings to select guests as a reward or to compensate for a service.
9.
Organization La Cocina en Stickney ® Logan Square is solely owned by Ben Correa and Essie Correa-Fregoso. The operations manager is Essie Correa-Fregoso who operates the day to day business of the restaurant including its promotions and advertising as well as the financial aspect of the business. The three chefs and their assistant work together to create the menu, order the product, and schedule kitchen staff based on level of need. The floor manager oversees scheduling wait staff and day to day functions of the dining areas as well as the bar. Special functions are overseen by the floor manager.
10. Evaluation and Control The goals set for La Cocina en Stickney ® Logan Square, will be tracked and evaluated to see if they align with projections. Monthly sales goals will be set in an effort to meet break-even point on schedule. Customer satisfaction surveys will provide feedback to as to areas that need improvement, expansion or cutbacks. The surveys will also provide guidance on promotions that are effective and which ones can be eliminated or modified.
Appendix A
Menu
La Cocina en Stickney
Logan Square
Appetizers Desserts
Plantain with Braised Beef 9
Mojo de Ajo Yucca 9
Empanada s 12
Whipped Avocado 9
Entrees
Angus Beef Caribbean Steak 32
Cornish Hen Stew 22
El Pescador Sea Bass 22
Pork Loin in Onion 18
Mofongo del Mar 26
Salad
Lobster Salad 18
Caribbean Fruit Salad 15 with Grilled Chicken
Green Banana Salad with 15
Bacalao
Signature Guava Cheesecake 12
Fresh Fruit Sorbet 9
Chocolate Volcano 9
Pastelillo de Manzana with 12
Rich Vanilla Bean Ice Cream
Coconut Flan 9
Rum Mango Cake 9
Appendix B
La Cocina en Stickney
Logan Square
Drinks Menu
Wine
Bottle varies
Glass varies
Mixed Cocktails
Simple 15
Sensational 17
Beer Imported 11
Beer Domestic 9
Appendix C
Promotional Photos for Magazines
(Bloomberg Business Week, nd)(Timesunion.com, 2010)
Bibliography
Restaurant: Divo (nd) Bloomberg Business Week . Retrieved on June 19, 2011 from http://images.businessweek.com/ss/07/12/1220_groovy_london/source/6.htm Timesunion.com. (2010). Retrieved on June 18, 2011 from http://blog.timesunion.com/payitforward/can-you-find-it-in-your-heart-to-forgive-me/791/ Stensson, A. (2011). Restaurant Industry Sales Turn Positive in 2011 after Three Tough Years.
National Restaurant Association. Retrieved June 18, 2011 from http://www.restaurant.org/
La Cocina en Stickney ® Logan Square
Marketing Plan
DeVry University
Essie Fregoso
Business 319
La Cocina en Stickney
Logan Square
Table of Contents Page Executive Summary 4 1. Company Description 4 2. Strategic Focus Plan 5 Mission 5 Goals non-financial 5 Goals Financial ……………………………………….…………………………………………….………………………………5 Competitive advantage …….…………………………………………………………………………………………………..6 3. Situational Analysis………………………………………………………………………………………………………………..6 SWOT Analysis 6 Environmental Scan Chart 7 Environmental Analysis 8 Social 8 Economic……………………………………………………………………………………………………………………………9 Technological …………………………………………………………………………………………………………………….9 …show more content…
Competitive………………………………………………………………………………………..………………………………9 Regulatory..………………………………………………………………………………………………………………..………9 4. Customer Analysis 10 Marketing and Product Objectives 4 Market-Product Grid 5 Target Markets 6 Points of Difference 6 Positioning 6 5. Industry Analysis 10 6. Market Product Focus 11 Market Grid 12 7. Financial Projections 13 Price Points 14 Break Even Analysis 15 Sales Forecast Chart……….…………………………………………………………………………………………………….16 8. Promotional Strategy 16 Gantt Chart 18 Advertising Strategy 18 9. Organization ……………………………………………………………………………………………………………………….19 10. Evaluation ………………………………………………………………………………………………………………………….20 Appendices Appendix A: La Cocina en Stickney ® Logan Square menu 21 Appendix B: La Cocina en Stickney ® Logan Square menu 22 Appendix C: La Cocina en Stickney ® Logan Square photos 24 11. Bibliography ………………………………………………………………………………………………………………………..25
Executive Summary La Cocina en Stickney ® Logan Square is a recently opened restaurant in the Logan Square community. Dedicated to offering the finest quality food, service, and social entertainment we aim to make this location a sought after experience, not just dinner. Essie Correa-Fregoso an experienced food service manager with a degree in Business Management has over twenty years in the food industry and will bring the expertise in operations management that has made the Stickney location famous to the Logan Square location. Ben Correa, Evelyn Hernandez, and Edith Beardsmore, collectively have over 30 years of experience as chefs and their commitment to quality food preparation and design will make this location successful. The Logan Square community offers an amazing opportunity for success due to location and demographics of the population. One of Chicago’s most distinguished neighborhoods with its mansions and wide boulevards it boasts the Logan Square Auditorium, the Logan Square Theatre, and Stan Mansion as entertainment venues within walking distance. These venues will consistently offer La Cocina en Stickney ® Logan Square an elite clientele. 1. Company Description
La Cocina en Stickney ® launched its signature restaurant in Stickney, Illinois in the spring of 2008. Founded by Ben Correa along with his wife Essie Correa-Fregoso and his sister Evelyn Hernandez, La Cocina en Stickney ® brought a new flavor to this just- south of Chicago village. Each an amazing chef in their own right, they have teamed up to create and offer the Logan Square community the same authentic and high quality fare as the Stickney location.
Puerto Rican cooking at its finest is what you will find at this sit down restaurant offering a full service bar and desserts by renowned pastry Chef Edith Beardmore, including her sought after Guava Ribbon Cheesecake. Not to be confused with similar restaurants located near Humboldt Park, this restaurant is a full service restaurant serving only made to order dishes from its limited menu intended in that manner as to not diffuse the attention to detail each dish requires. Details is what this restaurant is all about from its easily accessible location, ample parking lot and beautiful interior, you will definitely feel that nothing has been left to chance as you enjoy a spectacular meal. 2. Strategic Focus and Plan
La Cocina en Stickney ® has proved successful; this marketing plan will detail how the owners having followed a successful strategy at the Stickney location of finding a location with ample parking, creating a beautiful dining room, providing high quality meals off a limited menu intend to apply this same strategy at its Logan Square Location. This next section will include 1) the mission, 2) the goals both financial and non-financial and 3) competitive advantage of La Cocina en Stickney ®.
Mission
La Cocina en Stickney ® Logan Square will provide a beautiful dining experience by offering high quality, authentic Puerto Rican food, with service that guests will not soon forget.
Goals / non-financial 1) To become a well established presence in the Logan Square community. 2) To contribute to the development of the Logan Square community by providing assistance in its beautification projects as well as providing a mentor in their Business Mentor Program. 3) To be named one of Chicago Magazines “Restaurants to Watch”.
Goals / financial 1) To achieve break-even point in the first two years. 2) To achieve 15% profit by the third year in operation. 3) To attract investors for future expansion/additional restaurants.
Competitive Advantage
La Cocina en Stickney ® has the competitive advantage of being the only Puerto Rican restaurant of its kind in the area. A limited specialty menu, full service bar and its own pastry chef make this restaurant unique. 3. Situational Analysis This SWOT analysis provides the key strengths and weaknesses that La Cocina en Stickney ® is influenced by in implementing its operating strategies.
SWOT Analysis | Strengths | Weaknesses | Internal Forces | • Unique product | • High start-up costs | | • Professional chef staff and highly skilled management team | • Convincing customers that we are not the typical Puerto Rican restaurant filled with fried foods. | | • Beautiful and appealing restaurant | • Advertising costs | | • Located in an area that will expect to pay what we charge for a meal | • Hiring and training of employees that reflect the flavor of the restaurant at the caliber of employee we want | | • Attention to detail, each dish made to order | | | Opportunities | Threats | External Forces | • Only ethnic restaurant of its kind in the area | • Huge ethnic population might consider duplicating our process |
External Forces | • Property next door will soon become available and lead to addition of patio | • Bad weather would close this area, lose potential customers | | • Excellent and convenient location with ample parking and accessible from all areas of the city by train or bus | • Other restaurants in the area | | • Yearly street fest provides free advertising as residents drive in for the fest. | • High volume of outside traffic my discourage some driving into the area | | • Trains run all night accommodating our late night closing | |
ENVIRONMENTAL TREND INDENTIFIED BY ENVIRONMENTAL SCAN FORCE
SOCIAL
* AREA IS HIGH ENERGY * GENTRIFICATION IN PROCESS * VERY DIVERSE
ECONOMIC
* PROFESSIONALS WITH DISCRETIONARY INCOME LIVE AND TRAVEL THROUGH THE AREA * REAL ESTATE PRICES STABLE * NO CHARGE FOR PARKING
TECHNOLOGICAL
* EASY ACCESS TO VENDORS AND SUPPLIES * ABLE TO MASS EMAIL * ONLINE DINING SPECIALS TO INTRODUCE BUSINESS
* SAME ETHNICITY RESTAURANT NEARBY, DIFFERENT CONCEPT * ONE PATIO RESTAURANT ON SAME BLOCK * NO ONE ELSE OFFERS OUR LIMITED MENU, HIGH END FOOD
COMPETITIVE
REGULATORY * EASY ONLINE PROCESS FOR BUSINESS LICENSE * FOOD SANITATION LICENSES IN PLACE * CONCERN OVER FUTURE ZONING CHANGES THAT WOULD AFFECT PATIO *
Environmental Analysis
Social
The Logan Square community has been in a gentrification process for the past 7 years. It still maintains a lot of its diversity with a mix ethnicities and age groups. In may in fact be more diverse than ever before. Young professionals, musicians, artists, and entrepreneurs all live in a mixed neighborhood of single family homes, two and three flats buildings, apartments above storefronts as well as multi unit condo buildings. This high energy group, always out and about will present a great customer base for the restaurant; they can easily walk by or bring company over for a great meal.
Located immediately across the street from the Logan Square Blue Line train stop, this location is very visible to those traveling through the area and makes a great meeting place. As a stop along the Blue Line, after enjoying a meal here patrons can easily hop back on the Blue Line, go one stop over to enjoy the nightclubs on Milwaukee Avenue.
Economic
Due to gentrification, the community has been able to change its image from a low income neighborhood to a desirable one where investors have spared no expense in changing the look of storefronts and even its small park. At this point in the process prices of real estate have become stable and are no longer skyrocketing. This has made it possible to buy the property the restaurant sits on and to also allow us to negotiate to buy the adjacent property to add a patio dining area. The City of Chicago has provided a parking lot that accommodates more than 150 vehicles discreetly hidden behind a line of trees directly across from the train stop, this makes it possible for us use the adjacent property for the patio versus the parking lot addition we initially intended it for. Professionals with discretionary income perceive value in paying higher prices; this allows us to charge more for our meals at this location increasing our profit potential.
Technological
Advances in software allow us to track supplies as they are used; this makes ordering stock easy, reduces waste, saves time, money, and effort in the process. These same advances in software also allow us to buy email lists that help us target a specific demographic that we can then market to. We can offer tasting nights where smaller portions are served so they can sample more than one dish, this will help us retain our high end image while offering the patron a reason to come in and sample us.
Competitive
A challenge we see is that nearby is another Puerto Rican restaurant, its prices are lower and service is faster as its “fast food”. The image is completely different but this something we need to consider as some foods will be very similar and price justification may come into play. Our concept of a limited menu and to offer what is authentic Puerto Rican foods, not the Americanized Puerto Ricans version which mainly consists of fried foods will set us apart. We will also serve some seafood which they do not. On the same strip of the square there are two other restaurants, one Mexican with a patio seating area and one Italian restaurant. These too will present a challenge as they have the same accessibility that we do and are after the same market that we are.
Regulatory
Business and sanitation licenses are already in place and this will not present a problem as the staff is all well trained in food safety and cleanliness. The restaurant itself meets or exceeds inspection standards. Seating and dining areas are all within capacity allowed by law. As the patio is a future plan and not yet in place, zoning is an issue that we are concerned as challenges might come into play in the future. The same gentrification that has helped us in establishing prices is also being met by concern from those that have long ago established themselves in this neighborhood, do not like the changes and want to limit them. Should they prove successful before our patio is built, we will not be “grandfathered” in and will have to eliminate that plan. 4. Customer Analysis La Cocina en Stickney ® Logan Square, intends to mold its image to appeal to couples, groups and those out for a special evening where you can get away from the stress of work and kids at home. Our dining room will be designed in such a way that we will offer intimate seating as well as a larger seating area where diners can see and be seen. As our society moves towards healthier eating options we will with our limited menu be able to prepare meal s that will appeal to those desiring smaller portions as well as to those with a hearty appetite desiring comfort food with a healthy twist. A night out on the town would not be complete without a toast or two and with our full service bar our diners can enjoy a cocktail before dinner, during or after. Desserts on a cart, a blast from the past will be offered to give our diners the impression they are fully being catered to and to motivate them to make it a complete meal. Our research shows that the median age in Logan Square is 31, an age where socializing is a major part of life, our customer is young enough to be hip and old enough to want the finer things in life; which we can offer for the evening. Our price point is designed to so that diners perceive high value for their meals without having to travel to downtown Chicago. 5. Industry Analysis According to National Restaurant Association and Deloitte & Touche LLP, sales in the full service restaurant industry nationwide are projected to reach $194.6 billion in 2011. Sales in Chicago alone based on the 2007 census were 2,130,271 and taking into consideration the forecast of the National Restaurant Association, we can expect sales to continue to grow in Chicago. The Logan Square community with a population of 96,200 has tremendous potential as the average household expenditure averages $46,000 per year.
Concern Source of information What type of dishes would drive the customer out of their home and into the restaurant | Surveys in the community | Would offering a banquet or party room area change the image of the restaurant | Foodie survey / underground restaurant community | Limited menu – will this concept be successful | National Restaurant Association / web search | Local sourcing trends and customer perception | National Restaurant Association / web search |
6. Market Product Focus La Cocina en Stickney ® Logan Square’s aim is to market itself as a lifestyle product sending the message that we are a sexy, high quality, and unique social environment that the customer must be seen at. We provide a high quality social environment offering top shelf products at our bar and a very intimate yet contemporary atmosphere. Our menu is unique as it is very limited and all dishes are made to order; substitutions or additions are encouraged as we want the customer to feel they are truly being catered to. In order to tap into new markets La Cocina en Stickney ® Logan Square will begin offering chef consultations for parties of ten or more celebrating a special occasion. Our chefs will consult with the client and the floor manager to offer a unique menu and a desirable dining room location. Our head bartender will offer specialty service with drinks designed to complement each dish. Our pastry chef will design desserts appropriate for the occasion and with the guest of honor in mind. To further create the atmosphere of exclusivity, La Cocina en Stickney ® Logan Square will have invitation only Wednesday price fixed menu dining. Only three different meals will be prepared on this day and for one price the customer will have a sample of each in addition to a drink of choice and a trio dessert sample.
Market Grid
MARKET SEGMENT GRID | | | | TUESDAY | WEDNESDAY | THURSDAY | FRIDAY | SATURDAY | SUNDAY | TOTAL | LOCAL/DINNER | | 1 | 1 | 2 | 3 | 3 | 2 | 12 | LOCAL/DESSERT | | 0 | 0 | 1 | 2 | 3 | 1 | 7 | LOCAL/DRINKS & APPS | | 0 | 1 | 3 | 3 | 3 | 1 | 11 | LOCAL/LUNCH (SAT/SUN ONLY) | | | | | | 3 | 3 | 6 | | | | | | | | | | NON LOCAL /DINNER | | 0 | 2 | 3 | 3 | 3 | 2 | 13 | NON LOCAL /DESSERT | | 0 | 0 | 0 | 2 | 3 | 1 | 7 | NON LOCAL/DRINKS & APPS | | 0 | 0 | 3 | 3 | 3 | 1 | 7 | NON LOCAL/LUNCH | | | | | | 3 | 2 | 5 | | | | | | | | | | SCALE OF WHERE 3 IS BEST AND 0 NOT | | =3 | =2 | =1 | =0 | | | | | | | | | | | | |
Our market analysis grid show that in might be in the best interest of La Cocina en Stickney ® Logan Square, to operate only Wednesday through Sunday and remain closed on Mondays and Tuesday. The majority of our business is from locals. It is expected that when the patio is open we will drive business in during the summer months as people strolling by will become part of the scene. Our Saturday and Sunday lunch hour has been successful; opening at 2pm thru 2am has meant a bigger share of the local market as patrons are able to stop by for a late lunch or very early dinner allowing them to have dinner and then enjoy one of the local shows. Our weekday opening of 4pm is essential to sustain our image of a high end dinner restaurant and to attract the customer we are targeting. Our Thursday thru Saturday crowd is diverse and our fully stocked top shelf bar has proven successful for after dinner drinks and even to those that stop by for only appetizers and drinks. Our desserts have become an attraction and we draw from locals walking by wanting to sit and enjoy something sweet before calling it a night; we are contemplating of designating a seating area for this type of customer. POTENTIAL NEW CUSTOMERS | POINTS OF DIFFERENCE | NEW PRODUCTS | Corporate Business Lunch | Intimate dining area, high end dining | Lighter lunch options, low carb meals such as lobster salad, green bananas escabeche salad, lunch portion braised pork | Catering | Meal offering completely different from traditional catering menus | Escabeche bacalao, olive oil tomato avocado plate, Edam soft and hard cheese platter, pastelon de plantain served with steak and tomato tower | Pre-event dinner designation tie- in | Tied into at ticket office we would offer on time menu offerings, quicker service | Smaller meal options tapas style steak and tomato tower, mini stuffed plantain, empanadas with mixed greens and spinach salad, bite size desserts |
7. Financial Projections STAGE OF THE PRODUCT LIFE CYCLE
INTRODUCTION GROWTH MATURITY DECLINE
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0
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La Cocina en Stickney ® Logan Square is currently in its growth stage. A recently introduced restaurant we are trying to gain market awareness through promotional strategies such as advertising in our current location in Stickney, advertising in Chicago Magazine, through placement at the local events ticket office as well as through radio advertisement. Product differentiation is what sets us apart from other restaurants in this area. Filled with Mexican, Italian, fast food, and Chinese restaurants we offer a different menu items in a setting that is not rushed and not casual. Our brand “La Cocina en Stickney ®” is becoming well known for high end dining and we will count on its recognition and expectation of its product to drive business in.
La Cocina en Stickney ® Logan Square will focus on the following two price objectives, maximizing current profit to be able to quickly measure the success rate of the Logan Square location. The other objective will be unit volume as this will help determine inventory and staffing needs as well as provide a foundation that will direct how much advertising and promotional tools will be needed. Price constraints that will be considered will be demand for product. As the only high-end Puerto Rican restaurant in the area and the only full service restaurant on the square, La Cocina en Stickney ® Logan Square is poised to be in high demand. We are confident our pricing strategy will add value to our product. The second price constraint we will consider is single product versus product line. With a limited menu we only have so many options to offer and our focus will be quality of product that demands a higher price. The third price constraint will be the type of competitive market we will operate in within our region. Once again being the only high-end, full service restaurant on the square and with very few restaurants that even offer similar food we are in a unique great position to reap the majority of the market share.
PRICE POINTS Light Meal / Brunch | No alcohol or dessert | 24.00 ea | Dinner full meal | With alcohol (2) and dessert (1) | 62.00 ea | Appetizers and drinks | Alcohol (2) and dessert (1) | 37.00 ea |
Using the above chart, the average price of a meal at La Cocina en Stickney ® Logan Square is $41, the price to produce each meal is $18. This includes cost of employee production, food cost, and other miscellaneous costs. We will also demonstrate break-even point for meal unit price at $38 and at $45. The total fixed costs are $120,000.
BEP = [FC ÷ (P – UVC)]
BEPQuantity = [$120,000 ÷ ($41.00 – $18.00)] = 52,174 meals BEPRevenue = 52,174 meals × $41.00/meal = $2,139,134.00 BEPQuantity = [$120,000 ÷ ($38.00 – $18.00)] = 60,000 meals BEPRevenue = 60,000 meals × $38.00/meal = $2,280,000.00
BEPQuantity = [$120,000 ÷ ($45.00 – $18.00)] = 44,444 meals
BEPRevenue = 44,444 meals × $45.00/meal = $1,999,998.00
BEPQuantity = [$120,000 ÷ ($47.00 – $16.00)] = 38,709 meals BEPRevenue = 38,709 meals × $47.00/meal = $1,819,223.00 BEPQuantity = [$120,000 ÷ ($49.00 – $16.00)] = 36,363 meals BEPRevenue = 36,363 meals × $49.00/meal = $1,781,787.00 BEPQuantity = [$120,000 ÷ ($50.00 – $16.00)] = 35,294 meals BEPRevenue = 35,294 meals × $50.00/meal = $1,764,700.00
Based on the competition from other restaurants, quality and type of product being offered, and location of the restaurant, we are confident we can raise our prices and without compromising the quality of the food use some local vendors that will allow us to adjust our unit production.
La Cocina en Stickney ® Logan Square will offer a 10% discount to patrons dining and then visiting one of its partner locations such as the Logan Square Auditorium or the Logan Square Theatre. Final price $50 – 10% + 20% gratuity = $54 The following is the sales forecast for the first two years of operation for La Cocina en Stickney ® Logan Square. La Cocina en Stickney ® Logan Square is a direct channel. We will perform all duties related to marketing our restaurant to our clients using no intermediaries.
8. Promotional Strategy The target audience for La Cocina en Stickney ® Logan Square is the mature person, couples, and business people with discretionary income. In order to set ourselves apart from restaurants in the area our strategy is price our menu to reflect the clientele we are seeking. In order to promote the new venue we will place high end art boards inside the Stickney location as well as two theatres in the area. The Logan Square Chamber of Commerce will highlight us in an article which will include photos of the inside of the restaurant featuring a dining couple, a couple having drinks at the bar and an illustration of the future patio. Chicago Restaurant Magazine, a monthly magazine features what is new and happening around Chicago. We have submitted our details for consideration in their first fall publication. This feature will highlight the intimacy of the dining area and will feature the fireplace and our privacy booths. High-end glossy placards once again featuring the fireplace will be made available to four-star and above hotels in the area to leave with their welcome packets; this promotion too will run thru the fall to create business during the winter season when we may potentially slow down as the holiday season approaches. We want to create excitement for the spring when our new patio opens. To gauge responsiveness to our promotions and see which placements are generating the most response we will instruct our staff to casually in the way of conversation ask if the customer has dined with us before and if not try to ascertain how they became aware of us, a mark next to their reservation or in a log will help track responsiveness. A second option to gauge responsiveness will be to give each customer seated at the bar or at the dessert bar a survey to fill in. A third option will be “contest cards” filled out and dropped in a box at an entertainment venue, with this option the customer will check off the appropriate boxes and enter to win a gift card to be used at the restaurant. For those that have offered us an email address, we will follow up after this visit to rate their experience at the restaurant, this will give us direction in areas that need focus. Each promotion tool sends a consistent message that we are high-end, detail oriented and ready to serve and delight the customer with our location and offerings. All will feature the intimacy and elegance of the restaurant. The following chart is our implementation schedule for promotions.
| | | | | | | | Task | May | June | July | August | Sept | Oct | Nov | Schedule meeting hotel managers | | |
| | | Schedule meeting with theatre managers | |
| | | | | | | Order prints ads | | | |
| | | schedule Chicago Magazine interview | | | | | | distribute print ads | | | | | |
| | | | | | | | | | | | | | | | | Green - begin Planned completion date Actual completion date | |
Advertising Strategy For advertising La Cocina en Stickney ® Logan Square, will use a mix of magazine ads, local outdoor posters at the theatres, internet, as well as any free features in local magazines.
Radio advertisement at this time is not feasible as part of the experience is visual, it is emotionally tied but what you are seeing. Internet options such as offering discounts through social sites such as Living Social will create awareness and create demand as we will make offers that are irresistible to those that would want to try us but are a little be concerned about the cost. Once they purchase the discount coupon we will limit how much time is available for them to use so we can create urgency. Premiums in which we will offer price reductions to venue managers so that they can promote our business for us will also be used. With premiums hotel managers will be able to pass the savings to select guests as a reward or to compensate for a service.
9.
Organization La Cocina en Stickney ® Logan Square is solely owned by Ben Correa and Essie Correa-Fregoso. The operations manager is Essie Correa-Fregoso who operates the day to day business of the restaurant including its promotions and advertising as well as the financial aspect of the business. The three chefs and their assistant work together to create the menu, order the product, and schedule kitchen staff based on level of need. The floor manager oversees scheduling wait staff and day to day functions of the dining areas as well as the bar. Special functions are overseen by the floor manager.
10. Evaluation and Control The goals set for La Cocina en Stickney ® Logan Square, will be tracked and evaluated to see if they align with projections. Monthly sales goals will be set in an effort to meet break-even point on schedule. Customer satisfaction surveys will provide feedback to as to areas that need improvement, expansion or cutbacks. The surveys will also provide guidance on promotions that are effective and which ones can be eliminated or modified.
Appendix A
Menu
La Cocina en Stickney
Logan Square
Appetizers Desserts
Plantain with Braised Beef 9
Mojo de Ajo Yucca 9
Empanada s 12
Whipped Avocado 9
Entrees
Angus Beef Caribbean Steak 32
Cornish Hen Stew 22
El Pescador Sea Bass 22
Pork Loin in Onion 18
Mofongo del Mar 26
Salad
Lobster Salad 18
Caribbean Fruit Salad 15 with Grilled Chicken
Green Banana Salad with 15
Bacalao
Signature Guava Cheesecake 12
Fresh Fruit Sorbet 9
Chocolate Volcano 9
Pastelillo de Manzana with 12
Rich Vanilla Bean Ice Cream
Coconut Flan 9
Rum Mango Cake 9
Appendix B
La Cocina en Stickney
Logan Square
Drinks Menu
Wine
Bottle varies
Glass varies
Mixed Cocktails
Simple 15
Sensational 17
Beer Imported 11
Beer Domestic 9
Appendix C
Promotional Photos for Magazines
(Bloomberg Business Week, nd)(Timesunion.com, 2010)
Bibliography
Restaurant: Divo (nd) Bloomberg Business Week . Retrieved on June 19, 2011 from http://images.businessweek.com/ss/07/12/1220_groovy_london/source/6.htm Timesunion.com. (2010). Retrieved on June 18, 2011 from http://blog.timesunion.com/payitforward/can-you-find-it-in-your-heart-to-forgive-me/791/ Stensson, A. (2011). Restaurant Industry Sales Turn Positive in 2011 after Three Tough Years.
National Restaurant Association. Retrieved June 18, 2011 from http://www.restaurant.org/