Fressen Catering

Buiness Plan
Sample
Table of Contents

1.0 Executive Summary

2.0 Situation Analysis

2.1 Market Summary

Target Markets

Market Analysis

2.1.1 Market Demographics

2.1.2 Market Needs

2.1.3 Market Trends

Market Forecast

2.1.4 Market Growth

Target Market Growth

2.2 SWOT Analysis

2.2.1 Strengths

2.2.2 Weaknesses

2.2.3 Opportunities

2.2.4 Threats

2.3 Competition

2.4 Services

2.5 Keys to Success

2.6 Critical Issues

3.0 Marketing Strategy

3.1 Mission

3.2 Marketing Objectives

3.3 Financial Objectives

3.4 Target Marketing

3.5 Positioning

3.6 Strategy Pyramids

3.7 Marketing Mix

3.8 Marketing Research

4.0 Financials, Budgets, and Forecasts

4.1 Break-even Analysis

Break-even Analysis

Break-even Analysis

4.2 Sales Forecast

Monthly Sales Forecast

Sales Forecast

4.3 Expense Forecast

Monthly Expense Budget

Marketing Expense Budget

5.0 Controls

5.1 Implementation Milestones

Milestones

Milestones

5.2 Marketing Organization

5.3 Contingency Planning

1. Executive Summary

1.0 Executive Summary

Fressen Catering is a kosher catering company that serves the Philadelphia market. Fressen offers creative, colorful, and unusual food
options for kosher, as well as the traditional kosher standbys. The service offerings are quite a change relative to the existing kosher
catering market which is quite stagnant. Most people make the incorrect assumption that kosher means ordinary, boring food. This
assumption prevails throughout the Jewish community so there is not much demand for new offerings.

Fressen catering will inject new life into the kosher catering market, leveraging Chef Susan Cheflly's culinary skills to develop creative
new catering options. Susan's advanced skills, industry insight, and a great market opportunity will allow Fressen Catering to reach
profitability by month 11.

2. Situation Analysis

2.0 Situation Analysis

Fressen Catering is a start-up company. Marketing is critical to its success and future profitability. Fressen offers creative, gourmet kosher
catering for a wide range of events.

The basic market need is a high quality, creative kosher catering company servicing the Philadelphia Jewish population. Fressen will meet
this demand with an ever expanding innovative repertoire of kosher meals.

2.1 Market Summary

Fressen possesses good information about the market and knows a great deal about the common attributes of our most prized and loyal
customers. Fressen will leverage this information to better understand who is served, their specific needs, and how Fressen can better
communicate with them.

Market Analysis
Potential Customers Growth 2003 2004 2005 2006 2007 CAGR

Middle class kosher customers 9% 120,547 131,396 143,222 156,112 170,162 9.00%

Upper class kosher customers 8% 80,457 86,894 93,846 101,354 109,462 8.00%

Total 8.60% 201,004 218,290 237,068 257,466 279,624 8.60%

2.1.1 Market Demographics

Geographics

• The immediate geographic target is the city of Philadelphia with a population of 3.5 million.
• A 60 mile geographic area is in need of Fressen's services.
 • The total targeted population is estimated at 201,000.

Demographics

• Families.
• A household income over $55,000.
• Jewish.

Behavior Factors

• Attend synagogue a minimum of five to 10 times a year.

• Practice kosher inside the home.
• Do not eat out much because of the difficulty of finding kosher meals at restaurants.
• Appreciate high quality, innovative food offerings.

2.1.2 Market Needs

Fressen is providing its customers with a progressive menu offering of kosher catering. Typically kosher foods are bland, traditional, and far
from innovative. Fressen is meeting the market need of a wider menu offering for events that require kosher catering. Fressen seeks to
fulfill the following benefits that are important to their customers.

• Selection: A wide selection of kosher menu items.

• Accessibility: Fressen prepares all of the meals in their certified kosher kitchen and can cater events within the greater
Philadelphia metropolitan area.
• Customer Service: Customers will be impressed with the level of attention that they receive.
• Competitive Pricing: All of the offerings will be competitive relative to the true competitors found in NYC.

2.1.3 Market Trends

The market trend for kosher catering is headed toward a more discriminating customer. The catering patron today is more sophisticated in
a number of different ways:

• Food quality: The preference for higher-quality ingredients is increasing as customers are being subjected to better kosher food.
• Innovative creations: More innovative items are being demanded as people recognize that food does not have to be dull just
because it is kosher.

The reason for this trend is that within the last few years there have been progressive caterers and restauranteurs in larger cities that have
begun to apply their culinary skill to kosher offerings, recognizing that market demand could be developed. Now that people are trying this
fare, they are recognizing there is no need to be complacent with the status quo.

2.1.4 Market Growth

In 1999, the kosher catering industry reached $16 million in sales nationally. As more options begin to be offered, market growth is
forecasted to increase. This is because people are demanding more choices now that they recognize choice is a feasible option. For years,
people that practiced kosher were duped into the belief that kosher food was stagnant, boring, and unflavorful.
2.2 SWOT Analysis

The following SWOT analysis captures key strengths and weaknesses within the company and describes the threats facing Fressen.

2.2.1 Strengths

• Strong relationships with many different congregations.

• Excellent staff who are highly trained and very customer attentive.
• Superior service offerings.
• High customer loyalty.

2.2.2 Weaknesses

• The struggle to build brand equity.

• A limited marketing budget to develop brand awareness.
• The difficulty finding someone with enough culinary skill to support Susan.

2.2.3 Opportunities

• Growing market with a significant percentage of the target market still not aware that Fressen exists.
• The steep learning curve that kosher food can be creative.
• The ability to develop many long-term customers because of a close-knit Jewish community.

2.2.4 Threats

• Competition from similar service providers in NYC.

• Local, established competitors that wake up and realize that there is a huge market in Philadelphia.
• The inherent high cost of kosher food production.
• A slump in the economy that will decrease customer's budgets for parties.

2.3 Competition

There are four other kosher caterers that serve the low to middle end of the market. These caterers compete to some degree on price (due
to budget constraints of some clients), more so on service. The quality of the food and the serving of the food are the main areas of service
that the caterers compete on.

There is one high-end caterer who will compete with Fressen. This caterer, while serving the upper-end market, often does not offer an
upper-end service. Their business has been declining over the last few years. People with knowledge of the industry recognize that this
company is not a strong competitor because of their overpriced service offerings relative to the service provided.

Lastly, one competitor for the high-end market is kosher caterers from New York City. When cost is no object, there are many people that
are willing to pay the additional cost of bringing in the caterer from NYC.

2.4 Services

Fressen Catering will provide Philadelphia with high-quality kosher catering. The catering service will be for weddings, Bar/Bat Mitzvahs,
and other assorted parties.

Kosher or kashruth is a specific, ritual/set of rules that applies to certain sects of Judaism in regards to food/drink preparation and
consumption. A kitchen or catering service must be specially set up to provide kosher meals. The explanation below regarding the
prohibition of dairy and meat served together, or made in the same kitchen by the same pots and utensils, is the reason that Fressen
Catering will require two sets of everything, including two stove top ranges and ovens.

The Hebrew word kosher means fit or proper as it relates to dietary (kosher) laws. It means that a given product is permitted and
acceptable. The sources for the laws of kashruth are of Biblical origin and expounded in Rabbinic legislation. These laws are codified in the
Shulchan Aruch (Code of Jewish Law). Though a hygienic benefit has been attributed to the observance of kashruth, the ultimate purpose
and rationale is simply to conform to the Divine Will as expressed in the Torah.

Kosher and non-kosher meat, poultry and fish:

• The Torah (Leviticus Chapter 11) lists the characteristics of permitted mammals and fish, and indicates the forbidden fowl. The
only mammals permitted are those which chew their cud and are cloven hoofed.
• The Torah does not list specific characteristics to distinguish permitted from forbidden birds. Instead, it details 24 forbidden
species of fowl.
• The Torah establishes two criteria in determining kosher fish. They must have fins and scales. All shellfish are prohibited. One,
however, should not eat fish with meat.

Another element of kosher meat consumption applies to the way in which the meat is slaughtered. There are several different methods:

• Shechita: Only a trained kosher slaughterer (shochet) certified by rabbinic authorities is qualified to slaughter an animal. The
trachea and esophagus of the animal are severed with a special sharp, perfectly smooth blade causing instantaneous death with
no pain to the animal.
• Bedika: After the animal has been properly slaughtered, a trained inspector (bodek) inspects the internal organs for any physical
abnormalities that may render the animal non-kosher (treif).
• Glatt Kosher: Some Jewish communities or people only eat of an animal that has been found to be free of all adhesions. "Glatt"
means smooth, that the meat comes from an animal whose lungs have been found to be free of all adhesions. "Glatt Kosher" is
used more broadly as a consumer phrase meaning kosher without question.
• Koshering: The Torah forbids the eating of the blood of an animal. The two methods of extracting blood from meat are salting
and broiling. Meat once ground cannot be made kosher, nor may meat be placed in hot water before it has been "koshered."
• Salting: The meat must first be soaked in salt. After the salting, the meat must be thoroughly soaked and washed to remove all
salt.
• Broiling: Liver may only be koshered through broiling, because of the preponderance of blood in it. Both the liver and meat must
first be thoroughly washed to remove all surface blood. They are then salted slightly on all sides. Then they are broiled on a
perforated grate over an open fire, drawing out the internal blood.

One of the main tenants is the prohibition of meat and dairy in the kitchen together. The Torah forbids cooking meat and milk together in
any form, eating such cooked products, or deriving benefit from them. As a safeguard, the Rabbis extended this prohibition to disallow the
eating of meat and dairy products at the same meal or preparing them on the same utensils. One must wait up to six hours after eating
meat products before any dairy products may be eaten.

Fressen Catering will serve a wide variety of dishes. This is offered for two reasons.

1. The larger repertoire of menu items is a benefit to the customers.

2. A large selection is required because meat and diary cannot be mixed within the meal, therefore, in essence you have to have
two different menus, one with dairy and one with meat.

Some of the menu offerings will be traditional Kosher/Jewish meals such as beef brisket with potatoes and vegetables and a roasted chicken
with rice and spinach. More inventive meals will also be offered to appeal to the higher end, more discriminating customers such as chicken
pesto dishes or a red pepper couli sauce, or maybe salmon with curry couli and plum chutney.

Kosher catering is not cheap. The ingredients cost more, as well as the additional equipment that is needed to eliminate the mixing of dairy
and meat products. Per person costs range from $45-110.

2.5 Keys to Success

• Generate repeat business.

• Increase transaction amount per person.
• "Knock" the socks off customers with impressive food quality.

2.6 Critical Issues

Fressen Catering is still in the speculative stage as a caterer. The critical issues will be handled by:

• Taking a modest fiscal approach; expand at a reasonable rate, not for the sake of expansion, but because it is fiscally wise to.
• Continue to build brand awareness which will drive customers to increase their usage of Fressen as well as be vocal to their
friends about the positive experience they had.
3. Marketing Strategy

3.0 Marketing Strategy

Fressen's marketing strategy will be based on developing visibility among Philadelphia's kosher community. This will be accomplished
through two ways. The first method is a targeted advertising campaign. Advertisements will be placed in various Jewish newsletters.
There are a couple of Philadelphia-wide newsletters. Additionally, Fressen will advertise in a few Synagogue's specific newsletters. These
advertisements should yield a decent amount of service inquiries since they are fairly targeted toward the target population that utilizes
kosher catering.

The other marketing strategy which is less formal is a networking campaign among the Philadelphia Jewish population. Susan has been an
active member of the Philadelphia Jewish community for five years. While the Jewish population is of decent size, numbering around
350,000, it is a close-knit community where people tend to know each other. Susan will leverage her contacts within the Jewish community
to raise awareness for her catering activities. While the networking might not cast as large of a net as advertisements will, it costs far less
and the relationships that it builds will be far stronger because of the trust relationship that has already been established.

3.1 Mission

Fressen Catering's mission is to provide the customer with the finest kosher catering. We exist to attract and maintain customers. When
we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

3.2 Marketing Objectives

1. Maintain positive, steady growth each month.

2. Experience an increase in new customers who are turned into long-term customers.
3. Decrease the market expenses as a percentage of sales.

3.3 Financial Objectives

1. A double digit growth rate for each future year.

2. Reduce the variable operating costs.
3. Increase the profit margin per event.

3.4 Target Marketing

The target market segment strategy will not be significantly different to address the two groups. Both groups, regardless of income,
typically belong to the same group of religious congregations. Therefore, to reach the different groups does not require a distinctly different
strategy. What differentiation it will require is different menu offerings are needed to satisfy the different groups. The upper end menu
items are simply cost prohibitive for the middle class target segment.

Fressen Catering has two distinct target populations:

1. Middle-class kosher clients: This group of people does not have huge amounts of disposable income, recognizes that it is costly
to sponsor a kosher dinner party, and is willing to incur the expenses, but will try to minimize them.
2. Upper-class kosher clients: This group has intertwined kosher values throughout their lives and is willing to spend whatever it
takes to throw a high-end kosher dinner function. Typically, this group is characterized by a wealthy one income family where
the male works and the female does not. The female of the household typically enjoys the planning of these events.

3.5 Positioning

Fressen will position itself as an innovative, high-quality kosher caterer. Philadelphia Jews who keep kosher will recognize the unique, high-
quality service offerings of Fressen.

Fressen's will leverage their competitive edge:

• Fressen Catering's competitive edge is based in their customer attention and inventive approach to kosher cuisine.
• Fressen's customer attention differentiates them in the world of kosher catering which is dominated by several companies that
have plenty of demand. The consequence of having a lot of demand is a decreased pressure to accommodate customers. When
you have a lot of customers, you have to modify your business plans less to deal with them.
• Fressen is approaching the market as if there was significant competition between the different service providers. By making
customer satisfaction a priority, over time, local customers will come to appreciate the attention that their needs are given and
form a long-lasting relationship with Fressen Catering.
• Fressen's other competitive edge is their nouveau cuisine approach to kosher food. Traditionally, kosher food has remained
stable and unimaginative for a long time. Most people believe that there are large compromises that must be made when
serving kosher. These compromises need not be made however, and Fressen is changing these misperceptions. Just because
there are strict rules regarding the types of foods that may be used and the way it must be prepared does not eliminate
creativity. Fressen is taking their knowledge of nouveau cuisine and creating inventive, colorful, and delicious kosher
alternatives.
3.6 Strategy Pyramids

The single objective is to position Fressen as the premier kosher caterer in the Philadelphia area, commanding a majority of the market
share in five years. The marketing strategy will seek to first create customer awareness regarding their service offerings, develop a
customer base, and work toward building customer loyalty and referrals.

The message that Fressen will seek to communicate is that Fressen offers the highest quality, most innovative catering offerings for people
who observe kosher. This message will be communicated through two methods. The first method is by way of advertisements placed in
various Jewish newsletters. Additionally, Fressen will advertise in several synagogue specific newsletters. The second method is by
developing a networking campaign among the Philadelphia Jewish community. The networking activities will leverage Susan's five years of
active participation in the community.

3.7 Marketing Mix

Fressen's marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service.

• Pricing: Fressen's pricing scheme is based on a per plate, or per person charge.
• Distribution: Fressen serves the greater Philadelphia area in any type of facility.
• Advertising and Promotion: This will be done through ads in various newsletters as well as a networking campaign.
• Customer Service: Obsessive customer service is the mantra. Fressen's philosophy is whatever needs to be done to make the
customer happy must occur, even at the expense of short-term profits. In the long term, this investment will pay off with a
fiercly loyal customer base who is extremely vocal to their friends with referrals.

3.8 Marketing Research

During the initial phase of the marketing plan development, several focus groups were held to gain insight into a variety of people that
observe kosher. These focus groups provided helpful insight into the decision making processes of potential customers.

An additional source of dynamic market research is a feedback mechanism based on a suggestion card system. The suggestion card has
several statements that customers are asked to rate in terms of a given scale. There are also several open ended questions that allow the
customer to freely offer constructive criticism or praise. Fressen will work hard to implement reasonable suggestions in order to improve
their service offerings as well as show their commitment to the customer that their suggestions are valued.

4. Financials, Budgets, and Forecasts

4.0 Financials, Budgets, and Forecasts

This section will offer a financial overview of Fressen as it relates to the marketing activities. Fressen will address break-even analysis, sales
forecasts, expenses forecasts, and how those link to the marketing strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates $23,566 will be need in monthly revenue to reach the break-even point.
Break-even Analysis:
Monthly Units Break- 5
even
Monthly Revenue $23,566
Break-even

Assumptions:

Average Per-Unit $5,000.00

Revenue
Average Per-Unit $1,500.00
Variable Cost
Estimated Monthly $16,496
Fixed Cost

4.2 Sales Forecast

The first month will be used to set up the kitchen and office. There will be no sales activity during the first month. The second month will
see a few catering jobs, but still will not be a significant source of income. Months three and four will see a steady increase in sales. Word
will have gotten out from the advertising as well as networking that Fressen is the new kosher caterer in town and offers a high-quality
service.

Throughout the year it is forecasted that sales will incrementally grow in size until profitability is reached toward the end of year one.

Sales Forecast
Sales 2003 2004 2005

Middle class kosher $83,017 $170,992 $183,774

customers
Upper class kosher $95,422 $196,543 $211,234
customers
Total Sales $178,439 $367,535 $395,008

Direct Cost of Sales 2003 2004 2005

Middle class kosher $24,905 $51,298 $55,132

customers
Upper class kosher $28,627 $58,963 $63,370
customers
Subtotal Direct Cost of $53,532 $110,261 $118,502
Sales
4.3 Expense Forecast

Marketing expenses are to be budgeted so they peak several months before a busy period, providing visibility at a time that people are
scheduling future parties.

Marketing Expense Budget

2003 2004 2005 2006 2007

Advertising $9,600 $14,000 $18,000 $0 $0

Other $1,200 $1,500 $2,000 $0 $0

------------ ------------ ------------ ----------- -----------

- -
Total Sales and $10,800 $15,500 $20,000 $0 $0
Marketing Expenses
Percent of Sales 6.05% 4.22% 5.06% 0.00% 0.00%

Contribution Margin $114,107 $241,775 $256,505 $0 $0

Contribution Margin / 63.95% 65.78% 64.94% 0.00% 0.00%

Sales

5. Controls

5.0 Controls

The purpose of Fressen's marketing plan is to serve as a guide for the organization.

The following areas will be monitored to gauge performance:

• Revenue: monthly and annual.

• Expenses: monthly and annual.
• Repeat business.
• Customer satisfaction.

5.1 Implementation Milestones

The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget.
Milestones
Milestone Start End Date Budget Manager Department
Date
Marketing plan 1/1/2001 3/1/2001 Susan Marketing
completion
Jewish newsletter ad 1/1/2001 12/31/2001 $6,930 Susan Marketing
capaign
Synagogue 1/1/2001 12/31/2001 $6,930 Susan Marketing
newsletter ad
campaign
Networking activities 1/1/2001 12/31/2001 $2,900 Susan Marketing

Totals $16,760

5.2 Marketing Organization

Susan Chefly is responsible for the marketing activities. This is in addition to her other responsibilities. Susan will rely on outside help for
graphic design and general creativity.

5.3 Contingency Planning

Difficulties and risks:

• Problems generating visibility.

• Lower than forecasted demand.
• The entry of another already established competitor that recognizes the market potential.

Worst case risks may include:

• Determining that the business cannot support itself on an ongoing basis.

• Having to liquidate equipment to cover liabilities.