1 Green Bank Business Plan (WeUse Limited)

Green Bank: We think about reuse

I. Executive summary
The following plan will give an overview of the project, Green Bank, and its potential,
operation, and profitability. To reduce plastic tableware consumption in Hong Kong's catering
industry and meet the government's updated policy, we propose the idea of one-stop utensil
rental stations. We aim at raising recycling awareness and changing the throw-away culture
through reusable utensil rental services targeting youngsters and environmental activists. We
plan to promote our product in restaurants, universities, and parks. We acquire revenue from
utensil rental fees on an hourly basis and maintain sustainability by continuously investing in
R&D and marketing to improve product design and expand station networks. We invite
anyone to invest in Green Bank, build a greener future for generations to come, and gain a
healthy 20% profit margin starting from today.

II. Introduction
In Hong Kong, the plastic reduction is always a priority. Plastic tableware waste accounts for
the second-largest portion of plastic waste. Due to the increasing demand for takeaway food
after COVID-19, there has been a significant rise in plastic tableware consumption. In terms
of convenience and cost, most citizens prefer single-use utensils to reusable ones. This
consumption habit and lack of environmental consciousness are threatening the planet. We
must tackle plastic pollution. Thus, to cater to the customer need for a convenient dining
experience while reducing pollution, we launched Green Bank: a one-stop environmental
utensil rental station. Based on existing resources of reusable utensils and hygiene technology,
we developed our business concept in line with WeUse's core value of promoting zero-waste
life.
This plan will first analyze the current situation in the disposable tableware market and then
explain how Green Bank is providing ground-breaking solutions for it. We will then move on
to provide a detailed analysis of our target audience, business model, and competition. Lastly,
we will look at our financial feasibility along with the action plan.

III. Opportunity and Innovation

As the city has been locked down due to COVID-19, people are restricted from dining in
restaurants. Based on a survey conducted in 2020 by a Hong Kong-based environmental
charity, it is estimated that the number of takeaway food orders in Hong Kong has surged 55%
to reach 21.1 million every single week, up from 13.5 million before the pandemic began
(Sally Ho, 2021). Since dining utensils are complementary goods, the demand for them
increases. In this case, it boosts the cutlery market dominated by disposable cutlery which
2 Green Bank Business Plan (WeUse Limited)

creates more plastic waste for society. A survey stated at least 66% of Hong Kong residents
preferred plastic tableware (Naomi Ng, 2017). This situation has led to the consequence that
every day there are 2,312 tons of plastic being disposed of (The Environmental Protection
Department, 2019). Moreover, there is an urgency in changing the situation, because the Hong
Kong government has planned for two phases in stopping the sale and use of disposable
tableware. The first phase plans to wipe out half of the plastic tableware by 2025 (Kelly Ho,
2021). With the opportunity for reusable tableware, no effective solution has been proposed
to combat these issues.
This is where Green Bank steps in to provide a solution to plastic utensil waste. We plan to
penetrate our stations into popular public gathering spaces, predominantly restaurants,
universities, parks, etc. Consumers can rent tableware from a portable machine similar to
renting a portable power bank. The machine is equipped with Wi-Fi and sanitization functions.
Consumers can scan the QR codes on the rental station to pay a deposit and unlock the
tableware. Afterward, they can search for the nearest station to return the tableware. The
tableware will then be automatically washed, and UV sterilized within the machine. Finally,
the rental fee is calculated based on the usage time and will be automatically charged to the
customer's account.

IV. Market Analysis

WeUse is a social enterprise that aims at helping event organizers reduce single-use tableware
with its utensil rental services. We have located a huge opportunity in the utensil rental market.
In Hong Kong, each person used 1,940 pieces of plastic cutlery each year in 2019. Research
estimates that 50% of residents will switch to green tableware by 2025 as a result of
government policies and widespread environmental education. This implies that consumers
would have limited choices, i.e., purchasing biodegradable disposable tableware offered at a
higher price, or carrying their own tableware with them. However, our proposal for reusable
tableware rentals will set it apart from other options in the market.
We mainly target youngsters and environmental activists who are willing to make a difference
in the world of plastic. To reach our target customers, we are planning to partner with
restaurants, universities, and parks to raise public awareness. Currently, in Hong Kong, there
are 16,165 restaurants (Dale, 2022), more than 100,000 students in university (Statista, 2021),
and on average 10.4 million people visiting theme parks per year before the pandemic (Statista,
2021). We hope to tap into 10% of the targeted group and be one of the first to capture this
market.
Though we are the first mover in our niche market, we are facing indirect competition from
the sale of biodegradable disposable tableware and portable utensils sets. In light of this, we
establish our competitive advantages through lower pricing and promotion campaigns. First,
3 Green Bank Business Plan (WeUse Limited)

we price our rental service at HKD 3 which is lower than a set of biodegradable tableware
which costs at least HKD 5, or HKD 25 for portable stainless steel utensils. Not to mention
the fact that the biodegradable tableware in the market is virtually indecomposable in landfills
(Mingpao, 2021). Second, our rental service may be less convenient than the other options
because customers need to return utensils after use. To tackle it, we choose to place our rental
stations in areas with high and stable traffic. Also, we plan to launch a campaign called
‘Footprint to points’ which allows customers to convert steps to discount points.
We believe Green Bank will help reduce plastic pollution and provide consumers with a
cheaper, higher quality, and more meaningful takeaway experience.

V. Execution and Management

We have defined 3 keys to success which are the product, place, and promotion.
A. The utensil rental station is our core product of the business.
 We would design the product with 4-5 engineers and product managers who have
experience in developing dishwashers or power bank stations. The product will
prioritize durability and low maintenance cost.
 During this stage, we would conduct 3 rounds of testing and user surveys to enhance
the user experience and determine our pricing model. Now Green Bank adopts the
recurring revenue model. We plan to charge HKD 3 per hour for a set of utensils, and
HKD 30 for a monthly membership.
B. Place, the location of our machine
 We would first install our utensil rental stations in the Hong Kong University of
Science and Technology, the University of Hong Kong, and 30 restaurants in Central
and Causeway Bay with high traffic.
 Then we would gradually expand the station networks.
C. Promotion
 For online promotion, we would set up official accounts on WeChat, Alipay, and
other social media. We would post campaign information on these channels. For
example, we would discuss a partnership with Alipay to allow consumers with
enough Sesame Credit Score to use our rental service without a deposit.
 We would look for collaboration with the government. We have participated in the
Green Road Pilot Scheme, and we would seek opportunities to join Green$ App, an
official application for citizens to earn points through recycling.

VI. Timeline and Financial Plans

We would execute our plan in three phases. First, we would conduct half-year research,
4 Green Bank Business Plan (WeUse Limited)

development, and supplier reach. They are crucial to designing a good prototype before we
test them out in the second half of the year. In the next year, we are launching our business.
We would pitch to the Government Environmental Protection Department and start deploying
our stations in public areas. Marketing campaigns are also rolled out to establish our branding.
Finally, we would expand our services to schools and parks starting from year 3. As we grow
over time, we would optimize the costs for better profitability.
With all-rounded execution, we are confident in achieving strong financials. We target a 5%
market penetration by year 3 and 10% by year 5. That means 400 machines would be put in
place by then. This is attainable with the support from ESG-focus Millennials and a huge
pipeline of possible partnerships.
The following would be the financials of Green Bank in 5 years. We hope to achieve 10%
market penetration that will allow us to gain greater monthly profits, thus increasing the return
on investment to 20%.
Number of machines 400
- Year 1: 50
- Year 2: 80
- Year 3: 160
- Year 4: 280
- Year 5: 400
Number of utensil rental hours per machine per year 26,280 hours 1
Utensil rental fee charged to customers $ 3 per hour
One-time installation cost per machine $ 15,000
Other annual operational costs (e.g. water, electricity, $ 28,800
rent, marketing, R&D) per machine
Expected annual profitability per machine $ 50,040 2
Time to breakeven Nearly 1 year 3
Annual investment target $ 2 million 4
Return on investment 20%

VII. Conclusion and Recommendation

Through this plan, we have introduced you to our project Green Bank, stating the opportunity,
potential market, profitability, and future development. The utensil rental business is highly

1 365 days * 24 hours * 10% rental usage rate* 30 sets of utensils in a machine=26,280 hours per year per machine
2
26,280 hours * HKD 3 per hour – 28,800 operating cost = $50,040
3
(28,800 operating cost * 50 machines + 15,000 fixed cost * 50 machines)/(50,040 profit per machine * 50)=0.88
year ≈ 11 months
4
40% on initial cost, 60% on operational cost
5 Green Bank Business Plan (WeUse Limited)

profitable with the market opportunity and our execution. We strongly recommend you invest
HK$ 2 million which gives you over 3 times of return in 5 years.
Green Bank is not an idea that solely aims at profits but emphasizes on making contributions
to save the planet from a plastic disaster. Our innovation would save 36 million one-time
utensils by year 5, reducing a huge amount of plastic disposal. We are reaching out to over
700 thousand citizens and 80 thousand students as we achieve 10% penetration. Promoting
environmental awareness is the key to waste reduction.
We are Green Bank. We think about reuse. We are looking forward to everyone joining us to
be a part of the solution instead of pollution. Invest in us and invest in the plastic-free future.

(Word Count: 1,772 words)

6 Green Bank Business Plan (WeUse Limited)

References
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Mingpao. (2021, September 11). Biodegradable tableware accused of being 'pseudo-green'.
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