By Gina Behrend & Tammy Koopmans. Fast & Fresh ItalyImagine the Pasta-bilities!! Industry Analysis Sales increase of 4.9% Daily Sales of $1.3 Billion

By

Gina Behrend & Tammy Koopmans

Fast & Fresh Italy Imagine the Pasta-bilities!!

Industry Analysis

• Sales increase of 4.9%

• Daily Sales of $1.3 Billion

• Annual Sales (projected 2005): $476 Billion

Restaurant Industry

US Food & Drink Sales (in billions)


$43

$174

$296

$476

$0

$100$200$300$400$500

Sal

es

(in

bill

ion

s)

1970 1985 1995 2005

Year

Source: NRA Forecast

Distribution of Restaurant Types in Sioux City, IA


Source: US Department of Labor & Statistics

Special6%

Full-Service

48%

Limited-Service

46%

Food Dollars Spent in US


Source: National Restaurant Association

25.0%

46.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1955 2005Year

% o

f F

oo

d D

oll

ar S

pen

t

RestaurantSpendingNon-RestaurantSpending


Industry Analysis

• Opportunities– Growing demand for fast-casual restaurants– Newly developing retail area– Busy lifestyles & health conscious individuals– Introduction of ethnic foods– Brand Recognition

• Threats– Consumer spending– Local competitors– Supplier relations & securing supplies at reasonable costs– Budgeting


Customer Analysis

• Target Market– Empty-nesters, childless couples, singles, business people

• Dine out an average of 2.5 times per week

• Trends– Consumer Demand for Choices– Consumer Demand for Convenience

Market Analysis


Source: Sioux City Chamber of Commerce Statistics

Potential Customers

Growth 2006 2007 2008 2009 2010 CAGR

ResidentialCustomers 1.90% 5,500 5,605 5,711 5,820 5,931 1.90%

Business Customers 2.30% 7,500 7,673 7,849 8,030 8,215 2.30%

Total 2.06% 13,000 13,278 13,560 13,850 14,146 2.06%

Competitor Analysis

• Local Competitors– Limited Service– Full-Service


Dining Out CharacteristicsResults


Qualitative Survey of Marketing Administration Students – October 2005

Qualitative Survey (October 2005 )

1 2 3 4 5 6 7 8 9 Total Score Importance Rating

Food Quality 1 1 1 1 2 1 2 1 1 11 1

Service 2 3 3 2 4 4 3 2 4 27 2

Menu/Variety 5 4 2 4 1 5 5 3 3 32 3

Price 4 5 5 3 3 2 1 4 5 32 4

Environment 3 2 4 5 5 3 4 5 2 33 5

Competitive Analysis


Weight Fast & Fresh Italy

Wgt Score

Fast & Fresh Italy

Sbarro Wgt Score Sbarro

McDonald’s Wgt Score McDonald’s

Quizno’s Wgt Score Quizno’s

Food Quality .35 4 1.4 3 1.05 3 1.05 3 1.05

Service .25 4 1.0 3 .75 3 .75 3 .75

Menu/Selection

.15 3 .45 3 .45 4 .60 3 .45

Price .15 3 .45 3 .45 4 .60 3 .45

Environment .10 3 .30 2 .20 2 .20 3 .30

Combined Score

3.60 2.90 3.20 3.00

Source: Qualitative Survey - October 2005


Internal Analysis

• Strengths– High quality food – Quick and friendly service– Variety of ethnic menu items– Healthy choices– Affordable prices– Great Location

• Weaknesses– Limited Budget


Fundamental Marketing Strategies

• Local Suppliers– Metz Baking Company/Old Home Bread– Tyson Foods

Demand Forecast

• Potential– 13,000 customers x 130 meals out x $ 7.50

• $12,675,000

• Fast & Fresh Italy Projections (First Year)– 9,750 customers x 8 meals x $7.50

• $585,000


Demand ForecastFast & Fresh Italy


$650,880

$585,000

$617,458

$540,000

$560,000

$580,000

$600,000

$620,000

$640,000

$660,000

2006 2007 2008Year

Sal

es


• Positioning Strategy

• Competition Strategy– Differentiation


Marketing Mix Strategies

• Product

• Promotion



• Price– $2.40 (cost of food) / .32 (food cost percentage) = $7.50

• Personnel– 6 full-time employees– $7.75 per hour x 160 hours per month x 6 employees

= $7,440 per month ($89,280 for first year)



• Place– 5801 Sunnybrook Drive

Sioux City, IA


Implementation & Control


Conclusion


Appendix

• 12 Month Sales Forecast• 12 Month Personnel Forecast• 12 Month Profit & Loss Forecast• Promotional Materials

– Advertisements– Menu


Questions?

Documents

By Gina Behrend & Tammy Koopmans. Fast & Fresh ItalyImagine the Pasta-bilities!! Industry Analysis Sales increase of 4.9% Daily Sales of $1.3 Billion