Operations Page - Copy Deck

8/2/2019 Operations Page - Copy Deck

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STAFFING AND CULTURE

As a food service business, the companys front-line staff are of the upmost priority in

achieving success. As gatekeepers to the product and creators of the guest experience,

a targeted strategic plan for recruitment, selection and retention needs to be well-designed to ensure a core group of FAVE carnivore converters bring the guest back

time-and-time-again.

Staff Recruitment

The first step in attracting a hyper effective core staff starts with recruitment, and the

strategy in finding people that share likeminded values and attitudes. The following

represents a priority listing of the locations where these staff candidates are most likely

to be found:

Executive Management and Co-Founder social networks

Targeted headhunting from within local food service and retail environments

Targeted messaging in local neighborhoods, online media and networks

Once local social networks have been canvassed and additional hiring needs are still

required, a cheeky, game-changer message will be used to find candidates who fit the

selection criteria. Where possible, a selection of high-performing industry service staff

may be recruited from food service and/or retail stores.

By utilizing the leased storefront of the first restaurant location, the local neighbourhood

of the first FAVE will be leveraged as a billboard for the right candidates while providingadditional marketing horsepower for the store launch. Additionally, university campuses

and a selection of the right online mediums (and message) will be used to attract a

variety of potential staff.

Once FAVE launches a revised recruitment strategy would need to be developed.

Staff Selection

Staff selection will be based on two attribute spheres:

Personality, self-image and attitude Skill set, abilities and work-ethic

Within the personality, self-image and attitude attribute sphere, the ideal FAVE frontline

staff would be under the age of 30 (Generation Y), independent and confident, embrace

a clean, authentic yet slightly bohemian image, and live life with a bit of a swagger. As

part of this collection of ideal characteristics the FAVE frontline employee would need to


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hold themselves energetically, engage positively with guests of all type and enjoy a

meat-free diet, if only partially. The ideal mix would see a positive ratio of female

frontline staff, some of who are vegan or vegetarian and some only lightly flexitarian, and

all of who view the future as important, aligning values of positive change through their

employment with the FAVE brand. Additionally, the mix of selected staff members

should include a handful of natural promoters with the ability to entice trial within theirown social networks.

The second attribute sphere would be much more tangible in nature, proving a staffs

work ethic and ability to achieve success within the employment role. Each position

within FAVE would be cross-position flexible, requiring staff to be cross-trained on each

role within the operation. Legal age of majority would be required for all staff members

as a bartending, Serving it Right position would be included in the rotation of roles in the

restaurants operation. Conversely, staff would be required to cook simple foods, work a

point-of-sale and even dig deep in the cleaning and care of the back-of-house operation

and facility. All employees would need to be trusted, bondable and generously available.

Selection criteria will be heavily weighted toward the more intangible attribute sphere of

personality, self-image and attitude. Like-mindedness, value alignment and positive

attitudes are critically important in achieving a celebrated staff culture.

Staff Retention

Once a high performing team of staff have been recruited and selected, the effort shifts

to retaining great employees. Through an effort of providing value-based perks,

competitive compensation and benefits, preferred work schedules, effective orientation,

on-going training, educational opportunities, and a fun, friendly, social environment, apositive culture workplace is built. A number of these tangible benefits would be include:

Competitive minimum wage plus $1 per hour to start

Complimentary perks including transit passes, one menu meal per shift, on-the-

job culture building such as spontaneous after hours dinners with drinks in the

restaurant, an in-store discount for off-shift meals, and staff funded RRSP plan

(FAVE just facilities the deduction from their paycheck and deposit to the

investment co)

Possible incentive of profit sharing at year-end and retroactive (subject to Board

of Director approval)

A value-centric, brand-based orientation and training program that is both fun

and educational Annual management workshops

An in-store educational bookshelf made up of brand-related reading including

meat-free diets, recipes, aspirational branding guides, and popular happiness-

related life reads. The bookshelf would be available to offer a greater level of

depth in core values of the FAVE brand for eager and/or off-track employees


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In the end, a clear mission with easy to understand, shareable values is the key in

driving positive staff culture. As FAVE has a values-based mandate, the combination of

the tangible benefits fused with a vision to change the way people eat should attract

and retain a core staff contingent who are loyal brand enthusiasts dedicated to the

guests positive experience.

REQUIRED ASSETS

Along with satisfying food and beverage and excellent staff, the guests in-store

experience is equally as influential to success. Pulling on organic farmhouse design

elements, FAVE will place itself in the urban centre of Vancouver, British Columbia. The

interiors will host approximately 50 seats and be made up of mixed mode seating:

banquet-two-tops, tables for four and a larger communal table. FAVE is clearlycategorized as a fast casual dining restaurant: a mostly self-serve format combined

together with an upscale, highly developed fast food interior.

The in-store experience is meant to highlight the ingredients of the food: fresh fruit and

vegetables. Overall design inspiration has been pulled from the rustic farmhouse or

farmer market, the ultimate human source of great produce. Emotionally, guests are

meant to be comfortable, the design summery and fun, and the layout operationally

smooth. With each store design (from the first to the tenth), a local approach in

customizing signage and making small tweaks to ensure a unique experience will be an

important in attracting guests from the local community.

The Store (To-Market Vehicle)

When one enters a FAVE, they will be comfortably awed by the eclectic mix of materials

used in the design. A local and authentic store design will use handcraft-looking

materials including colourful glazed concrete tiling, weathered woods, lush organics,

hand painted signage and mosaic flooring. By drawing guests to the back of the space

through deliberate feature signage, attention will be snapped to the quick-serve food

theatre: food being freshly prepared, a flashy soda station and friendly faces behind the

ordering counter.


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Once at the back of the space, the ordering experience starts with a sunny, oversized

menu board and point-of-sale, continues down the line as food is assembled fresh, and

completes with a dynamic soda-tender handcrafting house made beverages. The long

multi-coloured tile ordering counter will continue to entice the guests as they are lifted

through completion of a warm and interactive ordering experience.

Each of the theatres stages are meant produce a memorable experience with staff hired

and trained to be able to inter-change into and out of the various roles of a FAVE. While

a core menu offering will be available from opening to closing, a deliberate shift in group

share and alcoholic soda items will take place into dinner service to accommodate the

youthful urban foodie.

The communal table brings together the youthful Gen Y guest, the largest emerging

consumer marketing in North America, in a socially progressive eating environment. An

extension of the soda beverage theatre, the dynamic environment will keep the

experience live and memorable.


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SUPPLY OF PRODUCT (SUPPLIERS)

Proprietary Recipes

FAVEs USP is within its product offering: Great food that just happens to be meat-free.

The great food comes from an intensive process of recipe development in which

vegetarian chefs, vegan chefs, raw chefs, macrobiotic chefs, omnivorous chefs,

carnivorous chefs, consultants, food stylists all came together to create a product

offering that can strike a chord with simple diners. The recipes are designed so that each

guest can discover a few menu items that create a WOW-factor, and keep them coming

back. They have also been designed to avoid any vegan-twang that exists with most

vegetarian/vegan food on the market. Moreover, the ingredients within the recipes have

been kept clean, low in

sodium, low in high-fructose

corn syrup, low in cholesterol

and low in all other negatively

trending items.

Consumer leverage FAVE will

be able to employ on request

is full disclosure of the

ingredient profile within the

menu items. Given current

tones used in mainstream

media today when it comes torestaurant and prepared foods,

this is a significant advantage

FAVE is starting with. Although

simple in their ingredient

profile, the recipes are

complex enough to avoid

duplication from competitors

and fans of their favourite

items.

Non-Partner Supply Chain

Supply chain plays an integral role in the companys operational success. Key partners

are undergoing scrutiny to provide FAVE restaurants with its proprietary recipe

production. In-house commissary work will be kept to a minimum after all production

partners have been selected. General produce will be purchased from local distribution

firms (chosen by cost and quality metrics) on a daily basis through their online ordering

Proprietary

Soda Bases

(bi-weekly)

Processed +

general

produce (daily)

Strategic

Supply

Partnership

Goods

weekl

Proprietary

dressings +

sauces (bi-

weekly)


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system, to be managed by the restaurant leader and supervisor. Upon securing a

location, letters of intent are to be issued from the chosen suppliers.

SOURCING

FAVE is not branding itself as local or organic. This recent uprising trend will not be a

theme within the core message, nor will it be a goal with respect to sourcing of product:

meat-free will be the major hook used. Fully processed produce will be purchased from

the large distributors. Prepared dressings and sauces are to be purchased from the

processing plants that FAVE awards the contracts to. Further to these areas, FAVE will

aim to operate its supply chain in the same manner as a typical fast food restaurant. For

the consideration of keeping the business model scalable, aligning with the right

distributors and processers with distribution capabilities is the most important aspect ofthis issue. As such, FAVE is interviewing and meeting with a range of suppliers,

processors, and distributors to determine which one will be right for FAVE to partner

with.

RISK ANALYSIS &CONTINGENCY

The restaurant industry is commonly recognized as one with above-average risk both

from an investment standpoint as well as an operational standpoint. The management

teams experience allow for a risk prevention plan to be executed in order to drastically

minimize these risks.

The first principle of enterprise risk management is to have in place a clear strategy and

purpose for the organization, which defines what will and will not take place in a series of

future events. Decisions for the organization follow this strategy and have been laid out

below.

Cashflow

During the first year of operations, as is the case for many restaurants, cash-flow

requirements often exceed the restaurants ability to meet them. In order to reduce this

risk, FAVE has identified two areas whereby cash may become an immediate

requirement: 1, during the tenant improvement phase; and 2, during the first year of

operations to meet payroll, supplier accounts payables, and leasehold payments. To

address the risk during the tenant improvement plan, FAVE has built in an additional

$40,000 contingency fund through over estimating kitchen build-out costs and real-


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estate commissions. This contingency fund is equal to just over 10% (of hard build-out

costs), whereby, 5% is industry standard for a TI contingency fund. To address the

operational cash-flow risk, FAVE has built into its investor proposal a $211,000 working

capital fund to address post-opening cash requirements. Projected cash flow statements

show that this is well above the needed levels of cash required to maintain service

standards until standards of performance are achieved. This projected surplus of cashallows the management team of FAVE to focus on ensuring staffing levels that are

appropriate to keep service levels at a premium as well as initiating marketing activities

to drive and promote business growth. Remaining funds in this account will be

considered for reinvestment into the second FAVE when the second round of financing

begins.

Labour Cost

Aside from food and beverage costs of goods sold and leasehold payments (both of

which can be considered somewhat fixed) labour costs are typically the single highest

point of contention with restaurant management and often the first expense lines to sinka restaurant or get cut when times get tight. The labour and staffing strategy addresses

this potentially high-risk (cost) area by hiring flex-teams. Flex-teams are teams of staff

who are ready, willing and able to work in all facets of an operation. This method of

hiring, training and grooming allows FAVE to keep the highest levels of service while

keeping a very approachable labour cost. FAVE will hire so that a grill cook can work the

point of sale station as well as clear tables (Gratuities at FAVE are pooled and shared

equally based on hours worked). As a contingency to address rising pressure of

reducing labour costs while the business levels are built, the Co-Founders have agreed

to work hourly positions in the restaurant without a wage to maintain service levels while

lowering labour costs to 26% on average.

Food Safety

Food safety issues can potentially fail a restaurant should a guest be exposed to a food-

born illness while dining at FAVE. Joseph Cooke is certified in both Food Safe as well as

HACCP Level 1 and will implement a comprehensive Food Safety Management System.

This system is managed by having checkpoints at all critical control points along the

process of delivering food to the guest. Check points include receiving, storage,

temperatures of fridges, cooking surfaces as well as a dated labelling system which

tracks ALL food coming and going through a FAVE restaurant. Checklists at these

control points are to be filled, witnessed and signed and are kept on file for two yearsfollowing.

In the event of a guest suspecting that they acquired a food-born illness from a FAVE, a

Food-Born Illness Investigation Process is triggered. The staff member receiving the

call reads from script and records specific information. The Co-Founders are

immediately called and the item called into question is quickly identified. Samples of the

item are contained and sent to a health lab for testing. Item tracking takes place on the


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date in question and the quantity of the questionable items order during the reported

time period is recorded. A summary of all of the information is recorded and assembled

into a package, which can be presented to the BC Coastal Health official if they visit

FAVE for a site inspection. Additionally, the records of fridge and cooking temperatures,

receiving logs and dating systems are all presented to the BC Coastal Health official

during their visit. To close the case, the Co-Founder makes direct contact with the guestwho suffered the illness, explains the process and notifies them that lab samples and

results will be given to them. Once FAVE receives all results and package is complete, it

is mailed to the guest along with an invite to return to FAVE for a complimentary

experience for the guests and another as to enjoy the FAVE experience and remember

the brand in a better light. FAVE will never discredit that the guest was sick, however it

will never acknowledge that the illness was caught from FAVE. The process is to show

transparency about FAVEs cleanliness, sanitation and food safety management system

as well as act above the industry standard in dealing with such claims.

MARKET READINESS

A significant amount of work to bring FAVE to life has already been completed. But

currently, the business concept still requires a significant amount of sweat equity to bring

the product to market. The following list is a comprehensive set of actions that are still

required, some of which represent timelines that are incredibly difficult to definitively

understand:

Leasehold search and acquisition

Store and kitchen design changes Menu engineering and finalization

Provincial, municipal and trade permits and approvals

Store build-out

Operational pre-opening planning and readiness

Staff recruitment, selection and training

Store opening, launch marketing and initial operational period

Documents

Operations Page - Copy Deck