LetTransMenuhelpyoutoopenyourrestauranttoaseaof

Customers!

CatlicaLisbonUniversity
LeanEntrepreneurshipProject
September2014December2014
Professors:
AntnioLucenadeFaria
JoseVasconcelosSousa
Students:
PedroMariz152113366
MariaMurasheva159114599
PaulinevonNostitz152113321

ElevatorPitch
TransMenuisaQRcodebasedmenutranslationservicesolvingthe
languagebarrierproblembetweenforeignclientsandserviceprovidersofthe
restaurantindustry.TransMenuisbetterthanconventionaltranslationmethods
suchasinternalstafforonlinetranslationasitoffersanintegratedservice
providingprofessionaltranslations,ultimatelyleadingtohighercustomer
experienceandsatisfaction.

1. ExecutiveSummary
Thefollowingbusinessplanaimstointroducetheoutcomesoftheduringthe
courseLeanEntrepreneurshipProjectdevelopedbusinessideaTransMenu.
Starting with thepresentation of thefounder team Maria, Pauline andPedro,
the report will then continue to outline TransMenus single Business Model
Canvascomponentsindepth,followedbyafinancialandexternalfactoranalysis
and the resulting key findings. Moreover, it will give a detailed overview over
TransMenus futureimplementation objectives, followedby a riskanalysisofthe
market. Finally, the report will end with main conclusions concerning
TransMenusBusinessModel.
2.Team
2.1

Whoarewe?

We are a team of young, motivated and international students. In oureyes,

we can make TransMenu workbecause wecan eachbringsomething valuable
to the table: Combined we can offer a great knowledge foundation acquired
through our various academic backgrounds,speak eight languages andoverall,
wearepassionatetoinvestallourtimeandeffortintomakingTransMenuwork!
2


2.2Whowillfulfilwhichposition?

Intheappendix2.1youcanfindadetailedprocessdescriptionforoneofthe
mostimportantprocessesofeachteammember.
3.BusinessModel
3.1Mission,Vision,Values,Oneyearobjectives

3.2BusinessModelCanvas
Inorder to provide a quick overviewoverTransMenusBusinessModel,the9
componentsoftheBusinessModelCanvasareappliedtoTransMenubelow.


4.FinancialAnalysis

WewillpresentanoverviewofourFinancialAnalysistomakeiteasyand
quicktoseewhereTransMenustandsfinacially.

4.1FinancialResultPrediction

2015

TotalSales

22.934

%of
sales

Total
Expenses

26.456

115%

COGS

15.696

Personnel
Database
Marketing
Other

10.160
400
200

EBIT
Taxes

Gain/Loss

4.933
0

91.033

55.432

30.480

200
300
4.621

22% 7.544

4.933

%of
sales

2016
83.489

4.2BreakevenPoint&CostStructure

132.356
109%

91%

93.138

30.480

200

500
8.038

9% 12.869

82

22% 7.544

%of
2017 sales
145.226

9% 12.787

9%

9%


5. Externalconditions(seeappendix5)
5.1Theeconomyenvironment
As TransMenus success is mainly determined by the positive development
of two variables, tourists and restaurants, lets take a look at them. During the
first half of 2014 the number of worldwide tourists has increased by 5% to 517
Mio. travellers and this number is forecasted to have increased even further
1

during the second half. Concerning the number of restaurant, the website
Tripadvisor states that there are 2.336 restaurants in Lisbon. Those increasing
numbersprovethatrightnowitisasuitabletimeforourstartupTransMenu!
5.2.Thecompetitors
We have identified our main competitors to be nonprofessional translators
(restaurant employees), professional translation services (translation agencies),
and Google / online translators. In the appendix value curves comparing
TransMenu to each of those identifies competitorscan be found.Tosumup,we
arebetterthan
nonprofessionaltranslationserviceintermsofsavingtime,moneyand
labourresourcesfortherestaurantowners.
professionaltranslationservicesduetotheofferingofuptodatemenu
changes.
GoogleTranslatorintermsofqualityoftranslation.
5.3Marketsize
In order to determine the potential market size a topdown technique was
used. The Total Available Market (TAM) for our business is 1,7 mil. hospitality
enterprises within Europe our initial Served Available Market (SAM) are 2.336
restaurants inLisbon andour Target Market (TM) are454restaurantsinLisbon
1 1 http://www.businesstraveller.com.ru/news/za-2014-god-kolichestvo-turistov-v-mire-vyroslo-na-5/,

5.12.2014, 12:33 pm

duringthefirstthreeyearsofthebusiness,embodying19,4%ofthemarket.
6. Implementationprogram(seeappendix6)
There are some milestones in TransMenus implementation program. They
areconcernedwith
1. Birthofthecompany(January2015)
2. Wtartofactivesalesperiod(March2015)
3. Overcomingofbreakevenpoint(December2017)
4. InternationalexpansionofTransMenu(January2018)
MoredetailedinformationyoucanfindinAppendix#3
7. RiskAnalysis
7.1LimitingFactors&Obstacles
Themainfactorsandobstacleswhichcanpossiblyembodyarisktothe
effectivenessandprofitabilityofTransMenucanbedividedintointernaland
externalones.Thegraphbelowgivesanoverviewoverthemainidentifies
possiblesones:
Firstly, internaldisagreementscould
decelerate
effectiveness.

TransMenus
Weekly

team

meetings, in which allthe founders

opinions about past and future
activities will be reflected, are planned in order to eliminate this problem.
Secondly, as TransMenus servicewill be based on atechnology,an extremely
reliable IT system needs to be developed in order to prevent technical failures.
This will be ensured by outsourcing the entire IT development & maintenance
processtoareliableITserviceprovider.
8

Considering external limiting factors & obstacles, TransMenu is trying to

establish longterm business relationships with its customers. This is extremely
important for TransMenu, as a one of the revenue sources components of its
Business Model is based on subscriptions fees, which will only be chargeable
when obtaining longterm customer relationships. In order to reach those, a
minimum contract length of six months will be established between TransMenu
and its customers. By providing a hopefully excellent service for this time,
TransMenu hopes to have build up enough customer satisfaction resulting in
customer loyalty and retention. Lastly, one main external concern TransMenu
will face is the restaurant industries adversviness against technology.
Throughout the validation process, TransMenus team has spoken with many
restaurant owners and realised, that their main fear using TransMenu is that
customers will miss the human interaction with the waiters. By using marketing
activities outlining the benefits of using the service (saving of time, money &
manuallabour),TransMenuhopestoovercomethisfear.
7.2Criticalsuccessfactors
One of the most critical success factors for
TransMenu is to raise external equity due to is
need of establishing a rather costly IT database
and its maintenance. In order to ensure this
critical step being achieved, an especially
wellstructured, logic and detailed business plan
andinvestorspitchhavebeendeveloped.
The second criticalsuccess factor TransMenus operationsis thesuccessful
establishment of efficientlongtermpartnershipswithitskeypartners(translation
9

& printing companies). In order to ensure those partnerships to be efficient &

healthy, after an extensive possible supplier research process, at least two
companiesofeachexpertisewillbechoseninordertoreducesupplierrisks.
7.3Specialrisk&countermeasures
One special risk stems from the low protection possibilities of the business
model. Using a for everybody available technology such as QRcodes,
TransMenu might soon be faced by competition from its own customers.
Restaurant owners couldeasily generate QRcodesthemselves, usinga simple
QRCodeGenerator app(available forfreeintheiPhoneAppStore)andinclude
those in their menus.In ordertoavoid thisproblem, TransMenuneeds to make
sure to emphasise its main competitive advantage throughout its marketing
activities: the offering of an integrated service as outlined in the Value
Proposition component of the business model. TransMenu takes care of the
whole process starting with theprofessional translationofthe menuand ending
with the printing of the new menus. Furthermore, TransMenu needs to make
sure to emphasise the highquality in which the translations will be delivered,
ensuredbythepartnershipswithreliabletranslationagencies.
8. Conclusion
Summarizing it can be said that right now is theperfecttimeforTransMenu as
the number of tourists travelling around theworld will increase steadilyoverthe
next few years, which will lead to increasing language barriers within the
restaurantindustry. Furthermore, technology isintegrated into peoplesdailylife
like never before which will contribute to TransMenus wide acceptance. Also
TransMenusundeniableadvantagesoveritsavailablecompetitorsspeakforthe
potential of the idea itself. Helping restaurants owners / staff to solve the

10

language barrier problemwhilstatthesametimesavingresourcessuchastime,

money andmanual labour lets TransMenuovertake its competitorsand emerge
as the winner in averycompetitivemarket. However, TransMenu also needs to
pay attentionto potential threats stemmingforinthis reportidentified obstacles.
Following the developed countermeasures and constantly evaluating
TransMenus relative performance and implementing improving processes
should however secure TransMenus strong competitive advantage. Lastly,
TransMenus founder team is loving the idea and is willing to invest all their
blood,sweatandtearsintoTransMenutoultimatelymakeitwork.

11

Appendix

2. Team

2.1Processes

2.1.1ProcessPauline(HeadofMarketingandSales)

12


2.1.2ProcessPedro(HeadofCustomerService)

2.1.3ProcessMaria(Operationmanager)

13

2.2PositionDescriptionGrids
2.2.1ChiefofOperations

14

2.2.2HeadofCustomerService

15

2.2.3HeadofMarketing&Sales

16

5. ExternalConditions
5.1ValueCurves

17

5.2WhyisTransMenubetterthanitscompetitors?
5.2.1Employees

18

5.2.2TranslationAgencies

5.2.3GoogleTranslate/OnlineTranslations

19

6. ImplementationprogramofTransMenu.

20