Assure Foods UK Ltd

Business Plan

2019-2022
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About Our Business

With a well-established business in Algeria we are now focussed on investing in the UK, operating, managing and
selling franchises for businesses in the hospitality sector with opportunities to open and manage shops, restaurants
and food stands in both Algeria and the UK in partnership with leading British businesses. This will not only support
UK business growth but will also enhance GDP through the export of product concepts to Algeria.

Our Vision Statement

To become one of the largest master-franchise holders in the UK and Algeria within 10 years

Our Mission Statement

We will achieve our vision through the promotion of innovative new food offers delivered through franchise
systems. To achieve this, we will offer franchises for fast food and desert parlours with unique recipes and instantly
recognisable branding.

What is your Unique Selling Proposition?

We will have franchises that no one else will have access to by bringing Algerian food business concepts to the UK
and vice versa, with significant barriers to entry for competitors, particularly within the Algerian market.
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Our Objectives
Year 1
• To identify a UK office location
• To recruit key staff
• To identify key suppliers and service providers
• To develop our brand
• To invest in our marketing collateral
• To establish 2 innovative master franchise agreements with exclusivity for the UK and/or Algeria
• To open 2 dessert parlours – either shops or kiosks
• To open 2 Korean Chicken fast-food outlets

Year 2
• To open a further 5 dessert parlours
• To open a further 8 Korean Chicken outlets
• To secure a further 3 master franchise agreements
• To develop and pilot 2 further fast-food concepts
• To create training programmes for new franchisees

Year 3
• To open a further 5 dessert parlours
• To open a further 4 Korean Chicken outlets
• To secure a further 2 master franchise agreements
• To open the first 3 stores for at least one new food concept
• To develop and pilot 2 further fast-food concepts
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Managing Our Business

Mr Mourad Djabali is a very experienced chef and caterer with over thirty years’ experience in the hospitality sector.
He has built up a company that today supplies catering services to over 250 businesses throughout Algeria including
canteens in factories, schools and universities, special events including weddings and conferences and public events
including food festivals.

Since 2006 Mourad has been managing food courts and small restaurants in Algeria, supported with the knowledge
and experience gained whilst studying Hospitality and Management at University in 1994, which was followed up
with a French MBA, “specialite entreprise PME”

To ensure that he is able to focus fully on the new business family and long-serving staff will manage the existing
business to ensure there is no disruption and that a complete focus can be placed on the Assure Foods UK Ltd.

Staff

Initially it is anticipated that two additional staff will be Outsourced Services

required to support the business:
Marketing & Communications
Business Development Manager £30,000 per annum The Wave Bots. www.thewavebots.com
Administration executive £15,000 per annum
Accountants
To service catering contracts the business will work closely To be confirmed
with carefully selected recruitment agencies able to provide
high quality and well-trained staff with experience in the Legal Advice
hospitality sector. To be confirmed

Marketing activity will be managed through a marketing

agency.

Catering Suppliers

Our initial list of suppliers is detailed below:

Krogab Ltd Waffle Parlour Supplier www.krogab.co.uk/waffles

Wing wing To be confirmed www.wingwing.co.uk

Chocolat de Paris Truffles supplier www.chocolate-from-paris.com

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Our Sectors

We will be investing £150,000 into this new business in the UK and £50,000 into the Algerian operation.

In the UK we will be focussing on four areas of our business:

• Securing short term catering contracts in the UK, Algeria, and from exclusive food distribution agreements
• Developing relationships with organisations where there are franchise opportunities and kiosk spaces
available, in particular within the education sector. We anticipate that each kiosk will require a £15,000
investment. We will use these kiosks to test the market for franchise-able brands and product ranges which
will then inform our strategy for developing and selling franchises in the UK.
• Assessing opportunities to tender for contracts to manage catering services in large organisations
• Developing and selling franchises for innovative product concepts we have market tested

In Algeria we will be focussing on four, potentially five, areas of our business:

• Securing short term catering contracts in Algeria

• We will use our kiosks to test the market for franchise-able brands and product ranges which will then
inform our strategy for developing and selling franchises in the UK.
• Importing UK food products into Algeria will require a focus on selling to distribution partners
• Selling franchises in Algeria will rely on our existing networks of hospitality business professionals and
investors
• We may make a further investment into the business in order to open a franchise of our own within Algeria
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Market Research
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Our Marketplace
The UK Franchise Market1

The total contribution of franchising to the UK economy is reckoned to be in excess of £17 billion, up over £2 billion
since the previous stats in 2015. Furthermore, there has been a significant increase in the estimated overall number
of people working in franchising, with over 700,000 people employed in the sector, with a little over half in full-time
employment.

There are an estimated 48,600 franchised units in the UK, the highest number ever and nearly two times more than
25 years ago, with the number of franchisees reckoned to be around 20,000. That’s because around a third of
franchisees own and run multiple units. One in three franchisors also have international operations. Of those who do
not currently operate internationally, 4% have a definite business plan to do so, and a further 30% are considering it
an as option.

The biggest growth areas for franchising remain personal services and hotel and catering, although store retailing
also shows some growth, despite a challenging environment for retail.

Franchisees claimed profitability remains high at 93%, and over two-thirds of franchised units that have been
running for five years or more report being either quite or highly profitable. 60% of franchised units turn over more
than £250,000. Failure rates for franchises remain very low, with fewer than 1% per year closing due to commercial
failure.

4 in 5 of UK franchise systems are run by the owner of the system. The remainder are split evenly between
subsidiaries and master licence holder. The chart below illustrates the ownership of franchises in the UK.

1 2018 Franchise Landscape, Natwest and the BFA

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Number of Franchise Systems by Sector

Number of Franchise Units by Sector

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Franchise Unit Ownership by Unit Status

Annual Turnover of Franchise Units by Sector

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The Algerian Franchise Market2

The attractiveness of the Algerian investment environment is reduced by commercial laws and measures that are
imposed suddenly, without consultation with the business community. This unpredictability underscores the
importance of appointing well-established Algerian partners who can alert U.S. firms in advance of such rule
changes.

The government pursues many policies meant to favor domestically produced goods over imports. Consumer credit
is available only for the purchase of locally manufactured goods. Importation of used construction equipment is also
banned. In late 2010, the government retroactively banned commercial loans from shareholders abroad made after
July 2009. The government has limited the duration of letters of credit for export transactions by Algerian firms to 60
days.

Algeria’s licensing of generic pharmaceuticals and lack of clear coordination between the Ministry of Health and the
Patent and Trademark Office exacerbates the uncertain landscape for the registration and sale of brand-name
consumer and health products. The Algerian government has banned the import of over 360 medicines and medical
devices in order to stimulate domestic pharmaceutical production. The Ministry of Health previously implemented a
policy encouraging foreign pharmaceutical firms to settle in Algeria while simultaneously promoting generics to
reduce the import bill (USD 1.9 billion in 2017). The government is reviewing this policy in an effort to increase
domestic production of pharmaceutical products.

Legislation that would regulate franchising in Algeria remains pending. It is currently difficult for franchisees to pay
royalties and, as a result, foreign franchises are limited in Algeria. Staff, skilled and unskilled, can be difficult to
recruit, manage, and retain in Algeria, despite high unemployment. Most employees speak French and Arabic but
not English.

Companies routinely face delays of multiple weeks or months for customs clearance. Companies that find
themselves in this situation are encouraged to contact the Commercial Section of the U.S. Embassy in Algiers for
assistance.3

The UK Franchise Food Service Sector

A report by Barclays4 shows that Fast Food and Takeaway sales were up 11.5 percent to year end July 2018. Demand
for fast food and takeaways is steadily increasing, with overall sales growth of 20.6 per cent compared to 7.2 per
cent growth in ‘full service’ restaurant sales. While restaurants still claim the largest market share at 65.7 per cent,
this represents a 2.6 per cent decline over the last year. By contrast, fast food and takeaway sales are up 20.6 per
cent, now capturing 34.3 per cent of the market.

The report also revealed that while customers appear to be dining more frequently, they’re doing so at a lower cost.
Average transaction values have fallen slightly, by 1.5 per cent, over the two years covered by the analysis. This
trend, coupled with the growth in online sales, clearly favours lower price-point outlets. Online transactions soared
by 26.7 per cent, compared to 8.9 per cent for face-to-face sales. This growth has been fuelled by the growing
popularity of easy-to-use delivery apps and online directory services.

Brand loyalty down according to the data, showing consumers are selecting to spend on a greater variety of
restaurant and takeaway brands, reflecting more adventurous tastes and the growing variety of dining options
available, such as vegan choices. The average customer bought from 7.5 brands last year, compared to 7.2 the year
before.

Consumers are increasingly opting for the convenience and affordability of fast-food outlets and eating at home.
However, despite the emergence of digital-first delivery apps that we’ve become so accustomed to using,

2 2018 Franchise Landscape, Natwest and the BFA

3 https://www.export.gov/article?id=Algeria-Market-Challenges
4 https://www.hospitalityandcateringnews.com/2018/10/report-shows-twenty-percent-growth-fast-food-takeaway-sector/
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restaurants still claim an overwhelming majority of the market share. Outlets looking to get an upper hand and
compete must be quick and nimble enough to react to shifting consumer tastes and evolve their in-store experience.

According to the Takeaway Economy Report, which uses data compiled by The Centre for Economics and Business
Research – spending on takeaway food grew by 34% between 2009 and 2016 - to £9.9bn - and now equates to
12.1% of total spending on food. Since 2013, the number of takeaway outlets has increased by 10% - to 36,855. The
largest takeaway markets are in London and the South East, it says, which account for over a quarter (£2.7bn) of
spending on takeaway in 2016 – up 5.5% from 2014.

However, the report stresses that the industry is buoyant across the country. Since 2014, the areas with the highest
growth are Northern Ireland (21.3%) and the North West (13.2%). The report, which was commissioned by food
delivery business Just Eat for the British Takeaway Campaign, calls on the Government to support an industry that
will create 30,000 more jobs by 2021, equating to a nationwide workforce of 261,000 – up 37% on 2010. It says
demand for takeaways is estimated to have added £4.5bn in value to the UK economy in 2016 – a figure which is
expected to rise to £5.1bn per year by 2021. 5

A report by Deloitte 6 shows that brands can broadly be segmented into premium, mid-market and fast, based on
price proposition and service standards. EBITDA margins have fallen over recent years across all segments, with the
premium sector more adversely affected than others

5https://www.bighospitality.co.uk/Article/2017/07/11/Takeaway-food-market-to-swell-to-11.2bn-in-five-years
6https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/ConsumerIndustrialProducts/deloitte-uk-casual-dining-
market.pdf
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The UK Food Service Sector

Coffee Shops & Takeaways

Research from Allegra World Coffee Portal 7, estimates that there are 22,845 outlets, delivering a 6% growth in the
number of outlets and a 12% increase in overall turnover to reach £8.9bn in 2016. The report notes that “after 18
years of considerable continued growth, the coffee shop market is one of the most successful in the UK economy
and is set to outnumber pubs by 2030 as coffee shops become the new local”. This growth is expected to continue
with 2021 forecasts suggesting that just amongst the branded retailers the sector will deliver £6bn in annual revenue
and that there will be 32,000 outlets across the UK, outnumbering pubs by 2030. Allegra does suggest that a hard
Brexit and drop in value of the pound could be an issue in terms of operating costs and access to labour.
Unsurprisingly the report cites Costa Coffee, Starbucks Coffee and Caffe Nero as the UKs leading chains, but does not
consider those businesses which focus on a more balanced café offer (Pret-a-Manger, Eat) who also have rowing
market share and offer a wider range of food options. Allegra also noted that small and medium sized boutique
chains such are gaining momentum and driving comparable sales growth across the sector, ahead of the leading
chains. A number of large operators have also purchased some of these smaller boutique brands, which bodes well
for new operators looking to develop an exit strategy by growing and selling a small chain of coffee shops with a
distinct USP which could complement rather than compete with the groups existing brand and market position.
Fast-Food

Value of the fast-food restaurant market in the UK in 2018 by type8.

Dessert Parlours9

Like coffee shops, dessert parlours were relatively unknown on the UK high street and leisure scene as recently as 7
years ago, but we have witnessed them becoming more and more sought after and a regular in the F&B line up on
retail and leisure schemes that we are bringing to the market, both in town and out-of-town.
Interestingly, apart from the US giants, Dunkin Donuts and Krispy Kreme - both of whom have only relatively recently
themselves re-entered the UK market - the current demand for sites is largely being driven by independent
operators and shows little sign of being a mere fad.

7 http://www.ukcoffeeleadersummit.com/yet-growth-uk-coffee-shop-market-coffee-shops-become-new-local/
8 https://www.statista.com/statistics/711976/fast-food-market-value-united-kingdom-uk-by-type/
9 https://rapleys.com/wp-content/uploads/2017/10/2017-10-Retail-dessert-parlours.pdf
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Independent operators Data released by The Local Data Company (LDC) and British Independent Retailers
Association (BIRA) shows that independents opened more shops in the first half 2017 than in the same period last
year, whilst national chains continued to fall.

Café style operations, such as dessert parlours, is one of the key growth areas and this looks set to continue as
independent operators and franchised operators such as Creams - who lead the franchised sector with over 50
outlets - look to roll the concept out nationally from London and the South East. Hot on their heels are brands such
as Kaspas, Treatz and Heavenly Desserts, as well as a number of newer and smaller operations, all of whom already
have double digit outlets in multiple locations with a variety of trading formats - operating on high streets, in
shopping centres and on out-of-town retail and leisure schemes.

These operators have all evolved to take advantage of the culture developing among young people, students and
families of going out in the evenings for a dessert. Just like the quick service restaurant franchisees, the fortunes of
these operators also look set to soar and accordingly add incremental value to the property assets they occupy.

The Algerian Food Services Sector

The food industry is one of the largest industrial sectors in Algeria, private companies generally dominate the food
sector in Algeria10. In particular a report by the Algerian Embassy highlights a number of trends:

• Strong potential and opportunities that need to be seized;

• A strong demand for agribusiness products;
• Food makes up 45% of Algerian households’ expenditure;
• Algeria ranks 3rd worldwide for milk and dairy product imports;
• The Food Industry: 2nd industry in the country after the oil industry;
• The Algerian food industry makes up 40% of national industrial turnover;
• The sector is 95% private;

The sector is dominated by the private sector and supermarket and grocery stores are evenly spread around the
country. It is estimated that there are 8,000 traditional restaurants, 18,000 fast food companies and 600 bars.

10http://www.embassyofalgeria-rsa.org/index.php/en-gb/economy/algeria-economic-and-invest-opportunities/126-the-food-
industry
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SWOT Analysis

Please complete the following analysis for your business

Strengths

In Algeria:
• Strong Algerian Network
• Significant oil and gas reserves
• Renewable energy and tourism potential
• Strong external financial position (very low external debt, large foreign exchange reserves)
In the UK
• Competitive and attractive tax regime
• Opportunities for Visa’s for innovative business concepts
• Strong UK marketing partners
General
• Expertise in the Food industry
• Expertise in Franchise industry
• Funds available for necessary investments

Weaknesses

Algeria
• High youth unemployment rate
• Overly large public sector
• Red tape, financial sector weaknesses and problematic business environment
• Limited opportunities to develop franchise businesses
UK
• Uncertainties about the future relationship with the EU
• High government and household debt (124% of disposable income)
• Weak UK network
General
• No staff in place to help grow the business
• Low productivity and lack of training not conducive to innovation

Opportunities
• Algeria-UK relationship is growing quickly
• There are opportunities in both countries to capitalise on positive trends in the food and beverage sectors
• Both economies are performing well, particularly within the UK

Threats
• Although market entry may be difficult it is not impossible
• There are well-established franchise operators in the food sector in the UK including KFC, McDonalds, Krispy
Kreme, Creams and many others
• Legislative and financial environment in Algeria is not setup to support franchise businesses
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PESTLE Analysis
Political
• Brexit may have an effect in economic terms (below) but there is unlikely to be any political impact on the
UKs relationship with Algeria.
• Algeria is politically unstable, but stability will return after the next election. As there is s desire to attract
inward investment to the country there should be an interest and willingness to encourage the business
development proposed by Assure Foods.

Economic
• Fiscal and monetary policy in the UK will have an effect on the business, but this is likely to be minimal with a
reasonable economic stability expected even after Brexit, especially as a no-deal Brexit is very unlikely to
happen
• Exchange rates will be a consideration and advice will be taken to establish the best way to manage the
trading relationship between business activities in each country.
• Algeria risks economic uncertainty of the next elections do not bring about the stability that is anticipated

Socio-Cultural
• UK food trends are very diverse and pressures around healthy eating and the environmental implications of
food production will mean that it is essential the business is aligned with the food growth opportunities and
the need to incorporate vegan, gluten free and sugar free concepts in our franchises.
• The UK market is open to trying new foods and new products, which bodes well for the future success of the
business in the UK.
• The Algerian market may be more conservative, but a greater European influenced range of foods will have
appeal to both local communities and to visitors to the region.

Technological
• Technology is a key issue for marketing and for food production and food transport. However, there are no
technological factors which are likely to exert any particular pressure on the business.

Legislative
• The legislative environment is challenging, but legal advice will be sought to ensure full compliance with
import and export regulations and financial regulations.
• As a business in the hospitality sector compliance with legislation and training around food hygiene and risk
management is a priority for the business for both operational and reputational reasons.
• We will need to make sure we have a good insurance because of the nature of our product and services.

Environmental
• Given increasing trends around environmental issues such as food miles and ethical food production, these
factors will be carefully considered in our business. In addition we will seek accreditation schemes which we
can use to identify our business as ethically and environmentally responsible.
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Investment Risk
Assessments
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Investing in the UK11

Risk Assessment

The magnitude of the slowdown in growth in 2019 will depend on the terms of Brexit. At the beginning of
January 2019, these remained uncertain, with Parliament preparing to vote on the agreement presented by the
government. If approved, the UK will leave the EU at the end of March 2019. If rejected, Prime Minister Theresa May
could try to continue negotiations with the EU, resign, or face a vote of no confidence from the opposition (Labour).
The latter two scenarios would lead to new elections. If necessary, the UK’s withdrawal from the EU could be
delayed, in order to avoid a no-deal Brexit while elections with an uncertain outcome are being held. Labour,
although torn between backing a second referendum or negotiating a permanent customs union with the EU, could
then succeed. While a no-deal Brexit scenario in March 2019 – which would severely curtail activity – is unlikely, it
cannot be entirely ruled out.

Persistent uncertainty will be a key factor in the recovery of business investment, which was already affected in
2018. Household consumption is expected to slow slightly due to less dynamic job creation and low real wage
growth, even though inflationary pressures are set to ease in line with the stabilisation of oil prices. Moreover, given
their low level of confidence, households are likely to rebuild their savings after significantly reducing them in recent
years (4.4% of disposable income in mid-2018 compared with 9.2% in 2015). However, subject to approval of the
2019 budget, household consumption will be supported from April onwards by the 4.9% increase in the minimum
wage, which will affect almost 10% of employees, and by the 5.5% increase in the income tax exemption threshold
(up to GBP 12,500 per year). Fiscal policy would be accommodative in 2019 (estimated growth effect of
0.3 percentage point of GDP) with a sharp increase in public spending, particularly in the National Health Service
(NHS). Moreover, unless there is a no-deal Brexit, exports should remain resilient despite the slowdown of the main
partners (eurozone, China, United States). Nevertheless, with imports set to rebound in 2019, the positive
contribution of foreign trade to growth will decline. In the current setting of financial constraints and low household
confidence, which is not conducive to major purchases, the automotive sector is expected to remain among the
most affected, after recording a 7% drop in new vehicle registrations over the first ten months of 2018 and a 6%
decline before that in 2017.

According to the draft budget to be voted on in the first quarter of 2019, the government will implement a less
restrictive fiscal policy in 2019 to support activity. The new measures include notably a spending increase of
GBP 10.9 billion (0.5% of GDP), two thirds of which will be allocated to the NHS, with the remainder going to
education, social assistance and defence. On the revenue side, while the main measure concerns raising the
thresholds for the first and last income tax brackets (estimated cost of GBP 2.8 billion, or 0.1% of GDP), taxes on fuel
and alcoholic beverages will ultimately remain frozen (cost of GBP 1 billion). Consequently, the UK’s government
deficit will rise again, but will remain well below 3%. The public debt will continue to decline.
While remaining largely in deficit, the current account balance is expected to continue to improve in 2019, despite
the widening goods deficit. The latter is not offset by the balance of services, which shows a substantial surplus. As in
2018, the improvement in the current account balance will therefore be driven by the contraction in the income
deficit, in connection with the increase in investment income abroad. Despite the uncertainty related to Brexit, the
United Kingdom will continue to easily finance its large current account deficit through investment flows.

11 Country Risk Assessments provided by Coface

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Investing in Algeria

Risk Assessment

Higher oil prices allowed the Algerian economy to recover in 2018. Revenues from hydrocarbon exports, which
represent 93% of exported volumes, have risen, easing the pressure on budget revenues and allowing the
government to keep providing support to activity. However, export volumes shrank over the year due to the decline
in production, which remains hobbled by the lack of investment and the maturity of the fields. To meet these
challenges, the government is expected to put in place a new oil law that will be effective in 2019, aimed at
attracting foreign investment.

Despite a favourable oil market for hydrocarbon exporters, Algeria’s economic activity is set to slow slightly in 2019.
The government should have additional budgetary leeway, but on the eve of the 2019 presidential elections, this is
expected to be put towards social measures. Social transfers are thus expected to increase, which should support
household consumption, but public investment spending will slow. The economic slowdown outside the
hydrocarbon industry, especially in sectors that are heavily reliant on public spending, coupled with an unfavourable
business climate will be a drag on private investment. Inflation is expected to stabilise, but at a high level. The non-
conventional financing policy (including the use of monetary creation) put in place in September 2017 will be
continued to meet the government’s financing needs.

Despite the government's expansionary fiscal policy, the improvement in the oil market led to a slight reduction in
the government deficit in 2018. This trend is expected to continue in 2019 but the deficit remains significant. The
Finance Act, which is based on a relatively conservative oil price forecast of USD 50, anticipates a slight increase in
government revenues. Fiscal revenues should also benefit from the depreciation of the Algerian dinar, whose
administered exchange rate is estimated to be DZD 118 per USD 1, compared with DZD 115 per USD 1 in 2018. The
government does not plan to introduce new taxes and duties, and the budget allocated to subsidies, which
represents 8% of GDP, will probably remain unchanged. Recurrent expenditure and social transfers (especially those
in support of families) are expected to increase at the expense of capital expenditure. As in 2018, the government
deficit will likely be financed directly by borrowing from the central bank. Public debt will increase accordingly but
will remain predominantly domestic. For the time being, the public authorities are ruling out the use of external
debt.

The current account deficit narrowed significantly in 2018. Import control measures combined with an upturn in
export earnings have led to a decline in the large trade deficit, which is expected to continue in 2019 despite a slight
increase in imports. The import bans on a list of 851 products were replaced in September 2018 by a new tariff
system. The provisional additional safeguard duty (DAPS), which will probably continue to be applied in 2019, sets
additional customs duties ranging from 30% to 200% on a product list drawn up by an inter-ministerial commission.
Foreign exchange reserves, which were equivalent to 16 months of imports in 2018, continue to shrink, but at a
slower pace. Inward FDI should nevertheless increase, notably thanks to the new law on investment in the oil sector.

Campaigning for the presidential elections in April 2019 appeared to already be underway in 2018, although the
political status quo does not look to be under threat. While he has yet to reveal his intentions, and despite poor
health, President Abdelaziz Bouteflika will likely run for a fifth term. He will continue to be supported by a large
swathe of the political class, which is calling for him to stand for re-election. For now, the current head of state does
not seem to have any opposition, but Algeria's period of slow growth is beginning to have social repercussions.
Despite the implementation of a distributive policy at the expense of fiscal consolidation, protests are on the rise.
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Marketing
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Our Marketing Plan

Our Marketing Budget

We plan to invest £30,000 in our initial marketing activities for the first year of operation. Further marketing spend
will be financed through revenue.

Our Target Markets

In the UK:

Event catering services: private functions, wedding and party organisers and events and festivals where there is no
in-house catering provision

Contract catering: We will initially target the education sector and will then look to broaden our reach to other
businesses

Kiosks and product development: We will look for shopping mall and University campus sites where we can develop
kiosk offers which will allow us to test product ideas, develop brands and create franchise opportunities

Franchise Opportunities: We will promote opportunities through trade shows such as the National Franchise Show
and will then develop potential sales relationships with warm leads from these events to sell North African themed
food franchise opportunities in the UK

In Algeria:

Event catering services: private functions, wedding and party organisers and events and festivals where there is no
in-house catering provision

Kiosks and product development: We will look for shopping mall and University campus sites where we can develop
kiosk offers which will allow us to test product ideas, develop brands and create franchise opportunities

Franchise Opportunities: We will target our existing network of business contacts in Tunisia, Algeria and Morocco to
explore opportunities to sell franchises we have developed in the UK

Our Marketing Activities

Website
We will develop a website for our business to demonstrate to potential partners the range of business activities we
are engaged in and that are available as franchises. The website will be designed in English and in French and
targeted at the UK and Algerian markets respectively. Each individual franchise brand we develop will also have it’s
own website.

Social Media
Social media will be an important driver for our business. Facebook and Instagram will be used to engage people in
our brands and our product ranges. LinkedIn will be used extensively to develop our business relationships and sales
opportunities.

Trade Shows
We will attend trade shows. In the UK there are a number of franchise shows we can target to promote business
opportunities.
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Our Competitors
There are a number of competitors in the sectors we seek to work in. In terms of our Algerian market our
main competitors are, as a result of the Government’s protectionist policy, primarily Algerian businesses.
Our food offer in Algeria will be significantly differentiated from the rest of the market.

In the UK we will be competing against major operators such as Sodexo for contract catering, but our lower
prices and smaller structure will make us a commercially attractive competitor.

There area small number of Algerian food suppliers, restaurants and grocery stores in the UK, but there is
potential to grow this market further. There are no established franchised business models in this sector.
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Financial Performance
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Our Financials
Investment Details

Our intial£150,000 investment is comprised of:

£40,000 salaries
£30,000 marketing
£45,000 product development in kiosks

Assumptions:
No bank charges in Years 1 and 2

Presentation of Cashflow

The cashflow presented with this business plan is a high-level forecast based upon profit from 4 different business
operations:

1. Revenue from directly operated shops and kiosks Est. £60,000 profit per unit per year
2. Revenue from events Est. £2,500 profit per event
3. Revenue from contract catering Est £60,000 per contract per year
4. Revenue from franchise sales Est. £10,000 per franchise*

*For simplicity, royalties and monthly franchise fees excluded from the forecast

Costs presented in this cashflow relate to Head Office operational costs only. All costs related to individual business
units have been considered in separate financial models.

Summary Financial Performance

Summary Financial Performance

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
End of Year 1 End of Year 2 End of Year 3 End of Year 4 End of Year 5

Total Revenue Operating Income

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