Soup

StationContact Info:

8820 Villa La Jolla Drive Ste 111La Jolla, CA 92037

858-701-9878

Patricia AvalosNancy Braun

Summer Martin

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Table of Contents

1. Company Summary……………………………………………….………….....31.1 Mission Statement…………………………………………….……………...3

2.    Executive Summary……………………………………………….……….…...32.1 Summary of Business Opportunity and Operating Plan….………….......42.2 Products and Services Summary…………………………….……………..42.3 Team Organization and Ownership Summary……………….…………....42.4 Health Repercussions Summary…………………………….……………...52.5 Financial Potential, Marketing and Goals………………….……………....52.6 Financing Request…………………………………………….……………...5

3.   Company and Ownership………………………………………..……………..63.1 Team and Organization……………………………………….……………...6

Table 3.1 Team Member’s Strengths and Skills……….……………….63.2 Summer Martin: General Manager/ Human Resources Mgr….………….63.3 Nancy Braun: Accounting/ Marketing……………………….……………...63.4 Patricia Avalos: Food Service Manager……………………….…………...63.5 Anthony Bourdain: Culinary/ Business Consultant………….…………….73.6 Organizational Structure……………………………………….…………….73.7 Corporate Structure…………………………………………….…………….7

4.    Products and Services…………………………………………….…………...8Table 4.1 Products…………………………………………….……….....8

5.    Operating Plan……………………………………………………….…………..85.1 Hours of Operation and Schedule……………………………….….……...9

Table 5.1 Operating Cost of Major Equipment……………….……….106.    Health Repercussions and Analysis……………………………….……….107.    Market and Competitive Analysis………………………………….………..11

7.1 Target Market……………………………………………………….………..13Table 7.1 Competitive SWOT Analysis……………………….………..13

8.    Marketing Strategy and Emerging Technology………………….….…….159.    Goals, Risks, and Strategies……………………………………….………...16

Table 9.1 Short Term and Long Term Goals……………….………….1610.    Financial Assumptions……………………………………..…….…………...17

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1. Company Summary    

Soup Station is an innovative single-food concept restaurant serving health-conscious soups in an environmentally friendly and humanly sustainable manner. The founders chose soup as their main focus, because it is a versatile and convenient option in our culture’s busy on-the-go lifestyle. According to Entrepreneur Magazine and Restaurant Business Online single-food concepts are booming trends within the industry (1,2).

1.1 Mission Statement

Soup Station is dedicated to serving the public delicious and nutritionally balanced meals. Our goal is to serve healthy, organic, locally sourced soup that is good for the body as well as the whole person. Everything from the furniture to the take out containers are environmentally conscious and the employees are paid living wages.

2. Executive Summary

Soup Station was founded by 3 registered dieticians with over 15 years of restaurant experience and 1 culinary celebrity with over 20 years of experience, on the ideas and principles that healthy, delicious, and nutritious food can be served quickly, conveniently, and use organic and sustainable practices. We offer a wide variety of soups that can be enjoyed by everyone, including those with special diets and restrictions. Organic, sustainable, and nutritious foods made for people with special diet restrictions are increasingly popular and our intention is to capitalize on and serve that population. There has been a strong increase in sales of foods catering to organic and gluten-free populations, as shown in Figures 1 and 2 in the Appendix. Soups of all kinds from around the globe will be the main focus of the business and we will also offer dessert soups, sides of bread and dinner rolls, as well as beverages such as coffee, tea, and soda.

2.1 Summary of Business Opportunity and Operating Plan

The restaurant was chosen to be located in La Jolla in order to capture the wealthier and more health-conscious foodie crowd. The location is in a busy shopping center central to the nearby college and hospitals. The restaurant is modern and clean, yet comfortable and cozy, which will encourage our clientele to sit down, relax, and enjoy their meal.

Soup Station partnered with Anthony Bourdain, the internationally acclaimed chef, author, and host of several television programs, in order to propel our brand into the marketplace. The plan is to open the first location in La Jolla and then open other locations across San Diego, eventually growing nationally across the country. The marketing plan will include local billboards and commercials, a social media campaign including Facebook and Twitter, and local coupon mailers to the surrounding community.  

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2.2 Products and Services Summary

The menu will be will fluid and changing. We will offer 7 different soups a day along with 1 dessert soup and various breads as a side dish. The soups will change daily based on local produce availability, seasons, and the ingredients we have on hand.

The ingredients for the soups will be sourced from local farms and vendors and will be organic and sustainable. All of the soups will be made fresh and breads will be delivered daily.

The containers, serving utensils, and paper products will be recyclable, green, and sustainable in order to be environmentally friendly. The building materials, furniture, and cooking equipment will also be environmentally friendly and Energy Star Certified for energy efficiency.

Soup Station will be conscious of the people it employs by paying a living wage higher than the minimum. It will treat its employees with respect, and it will be a part of the community by participating and giving back whenever and wherever it is able.

2.3 Team Organization and Ownership Summary

Soup Station is a Limited Liability Company and is equally owned by its 4 founders, Nancy Braun, Summer Martin, Patricia Avalos, and Anthony Bourdain. The owners have a commitment to serving its customers the freshest and most nutritious ingredients while they enjoy their meal in a relaxing and welcoming environment. They have a combined 35+ years of experience in the restaurant, nutrition, and business fields.

2.4 Health Repercussions Summary

One of Soup Station’s main goals is to provide its customers with the healthiest and most nutritious foods possible. It is committed to serving organic, sustainable, and health-conscious products. Because the owners are registered dieticians they have a very intimate knowledge of the importance in serving the community healthful options in order to help with the epidemics of obesity, heart disease, and food intolerances.

2.5 Financial Potential and Marketing Summary

Soup Station aims to fit right into the booming soup industry while catering to the health-conscious patrons of San Diego. Soup Station will be advertised at local businesses and schools, and hopes to entice and excite people about its dynamic and creative menu. Soup Station’s online presence on the internet and various social media outlets will keep customers on board with additions to its ever-changing soup selections while offering promotions and discounts to pull more customers in. Anthony Bourdain will also be a key player in the marketing and advertising strategy of Soup Station to the local foodie scene.

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2.6 Financing Request Summary

The individual owners of Soup Station will each be making a $50,000 investment to the start-up cost of $258,000 for the business. The owners of Soup Station are requesting a small business loan (7a), in the amount of $100,000 to cover remaining startup costs of $58,000, leaving a prudent reserve of $42,000 in the bank for unforeseen costs and expenses.

3. Company and Ownership

Soup Station is owned by 3 founders and 1 celebrity spokesperson. The business is a Limited Liability Company. The LLC was chosen because it offers limited liability legally to the owners and is taxed the same as a partnership or a sole proprietorship. It allows for flexibility, simplicity to run, and does not require all the paperwork of a corporation.

3.1 Team and Organization     

Soup Station has 4 partners, each providing their unique set of skills and knowledge to the burgeoning business.  The team member’s unique strengths and skills are displayed in Table 3.1.

3.2 Summer Martin: General Manager/ Human Resources Manager

Summer Martin graduated from San Diego State University with a dual degree consisting of an MS in Food Science and Nutrition and an MBA.  Summer is also a registered dietitian (RD) and has years of experience as a General Manager at various restaurants. The knowledge she acquired while working within different restaurants has given her the unique advantage of understanding the fundamentals of running a successful organization.  Working as the general manager she will oversee the entire business and make certain the operations are running smoothly. As general manager, Summer will also direct staff to ensure that customers are satisfied with their experience in the establishment and that the business is profitable (3). As a human resources manager Summer will coordinate the administrative functions of the business and also interview potential employees and hire new staff (4).

3.3 Nancy Braun:  Accounting/ Marketing

Nancy Braun got her Bachelor’s degree in 2004 from USC School of Business. For ten years she worked in the accounting/marketing field. During this time, Nancy’s love for cooking and nutrition came to blossom. In 2009, Nancy tried out for Top Chef and was picked to be one of the contestants. Nancy made it to the finale and placed third in the show. It was at this time that Nancy was introduced to Anthony Bourdain, future partner and culinary contributor to Soup Station. After her debut on Top Chef, Nancy decided to change directions in life and pursue her true passion; food and nutrition. Nancy graduated from San Diego State University in 2013 with a master’s in Food Science and Nutrition and went on to become a RD. During her internship she was introduced to 2

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other future RD’s Summer Martin and Patricia Avalos. The three became friends, and together embarked upon new experiences in the culinary world. When the idea of opening a soup restaurant was discussed, Nancy knew right away that this was her calling. With her background in business and love for cooking, this was the ideal career choice for her. Working as an accountant in the business Nancy will prepare and handle all the financial records.  She will also assess the finances and ensure that the taxes and other monetary obligations are taken care of (5).  With her added experience in marketing Nancy will also assist with creating advertisements and promotions to generate interest in the restaurant (6).

3.4 Patricia Avalos: Food Service Manager

Patricia Avalos graduated from San Diego State University with a BS in Food Science and Nutrition.  Shortly thereafter she got her certification as a RD.  Patricia has had many years of experience in the foodservice industry and her interpersonal and communication skills make her a perfect candidate for the job.  Food service managers are responsible for the daily operations of the restaurant ensuring that the day-to-day tasks are running smoothly (7).  

3.5 Anthony Bourdain: Culinary/ Business Consultant

Anthony Bourdain is an American chef, author, and television personality. He is a 1978 graduate from the Culinary Institute of America. Anthony has owned several restaurants, authored books, and has been the host of numerous television shows. His particular business acumen makes him a perfect candidate to be a consultant in both the culinary aspect and managerial aspect of the restaurant (8).  

Table 3.1 Team Member’s Strengths & SkillsPartner Strengths Skills

Summer Martin

Leader; will set the vision for the company; decision maker

Managerial and interpersonal

Nancy Braun Decisive; works well under pressure; rational thinker

Analytical and organizational

Patricia Avalos

Team players; customer service oriented; multi-tasker

Interpersonal and communication

Anthony Bourdain

Innovator; creative thinker Detail-oriented and organizational

3.6 Organizational StructureThe business structure of Soup Station could be called a traditional organization with an organizational chart and departmentalization.  Each employee of the organization will have their own tasks and responsibilities.  Additionally we plan to incorporate some

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innovative dimensions to the business that would encourage sociability and promote a sense of belonging to the employees of the business.  Each week we will have group meetings that will give personal consideration to each employee’s thoughts and concerns about their positions (9).

3.7 Corporate CultureThe corporate culture of Soup Station is to provide nutritious meals to health-conscious individuals who appreciate the quality of the food they are eating.  By establishing our business near a local college we plan to appeal to an educated, health-minded clientele.The following 4 partners: Summer Martin, Nancy Braun, Patricia Avalos, and Anthony Bourdain, will each have an equal share in the company providing their unique skills and abilities to raise capital quickly and relegate profits and losses efficiently.

4. Products and Services

Soup Station offers a wide variety of soups that include organic, grass-fed beef, vegetarian, vegan, gluten-free, lactose-free, sustainable, and locally sourced ingredients. Our goal is to offer unique soups not offered at any other location. This helps set us apart from competition, along with our mission to serve the healthiest, most delicious, and sustainable soups. We offer a wide, fluid, and ever changing menu and serve 7 different soups a day. The soups are made fresh in-house, and we change the menu depending on local availability, season, and the produce and stock we have available. This helps save on cost and allows us to offer our customers new and interesting products. Customers are able to visit our website or Facebook page to see what we are offering daily.

Some of the soups we offer are: The Cleansing Detox Soup, Creamy Sweet Potato and Coconut, Chicken Quinoa, Short-Rib Pappardelle, Cauliflower Roasted Red Pepper, Vegan Lentil, Spicy Thai Curry Noodle, Corn Potato & Kale Chowder, Reuben Soup, and Leek Fennel Apple & Walnut with Turmeric Soup. We also offer dessert soups, one each day such as: Banana Coconut & Tapioca Pearl, Strawberry Cream, and Chocolate Soup with Cinnamon Crostini. Along with the soup, customers will be able to add on bread as a side. We offer various breads from Bread and Cie, a local San Diego Bakery. Table 4.1 shows examples of various products, their source, their cost, our price, and profit.

Each vendor that we contract with is from San Diego and we are able to source sustainable local produce, meat, and other ingredients from them. Suzie’s Farm and Specialty Produce provide all of our organic produce and other ingredients. Central Meats and Provisions supplies all of our beef, poultry, and pork. Chesapeake Fish Company provides seafood, and Bread and Cie provides all of our bread. Our soda fountain is provided by Batch Craft Soda, a California based soda company that uses only pure cane sugar and natural spices to create their flavors. Our coffee and tea is

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provided by Cafe Moto, a San Diego based coffee roaster offering fair trade and organic products.

Customers are able to come in and place their order at the counter, are given a number, and then have their meal delivered to their table. They are invited to sit and stay in our comfortable atmosphere, which is great for relaxing and enjoying their hot bowl of soup, or focusing on their work while they sip their soup in between typing. Customers can also order their food to take-out. All of our soups, breads, and beverages are given to the customer in recyclable, green, and sustainable receptacles.

Table 4.1 ProductsProduct Source Cost / item Price Profit

Medium Cleansing Detox Soup Suzie’s Farm $3.45 $7.99 $4.54

Small Strawberry Dessert Soup Suzie’s Farm $2.60 $5.99 $3.39

Rosemary Dinner Roll Bread & Cie $0.49 $2.49 $2.00

Soda Batch Craft $0.35 $1.49 $1.14

Regular Drip Coffee Cafe Moto $0.49 $2.49 $2.00

5. Operating Plan

The Soup Station is located in La Jolla, California near UCSD, in the Whole Foods shopping center at: 8820 Villa la Jolla Drive, Ste 111. This is a very busy and upscale shopping center frequented by students, faculty, hospital staff, and the surrounding community. It has a modern feel and decor with concrete floors, wood walls, copper lighting fixtures, reclaimed wood tables and chairs. There is a large chalkboard behind the counter where the soups of the day are written and described. The restaurant space is approximately 1250 square feet and costs $30.31 per square foot. The total monthly rent is $3157.29 and yearly costs $37,887.48, with a lease agreement for 3 years.

5.1 Hours of Operation and Schedule

The restaurant will be open 7 days a week from 11:00 am until 10:00 pm. During operating hours we have 2 cooks, 1 prep cook, 1 dishwasher, 2 - 3 food runners/ bussers, 2 -3 cashiers, and a 1 -2 managers. Each employee, excluding the manager and cooks, will work 6 hour shifts in order to avoid paying any overtime. Each employee will be given a 10 minute break and an unpaid 30 minute meal period during their 6 hour shift, with an additional 10 minute break for an 8 hour shift. The 3 founders, Summer Martin, Patricia Avalos, and Nancy Braun manage the restaurant and are scheduled for 8 hour shifts, 5 days a week. Anthony Bourdain, our celebrity spokesperson, does not work any shifts within the restaurant. He is an investor, menu consultant, and

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spokesman. Figure 3 in the Appendix shows a sample of a partial weekly schedule. The Organizational Chart is shown in Figure 4 in the Appendix.

Utility costs are the responsibility of the lessee and include water, electric, and gas. The owners purchased Energy Star equipment whenever possible to save on costs Table 5.1 shows five of the pieces of kitchen equipment that use the most energy in BTU’s.

Table 5.1 Operating Cost of Major EquipmentEquipment Brand/ Model Cost Energy

Consumption(BTU)

Hours Used

Cost/ Day

Cost/ Month

Cost/ Year

60in 2 Burner 2 Convection Oven Range

American Range AA-10-CC

$6312.72 120,000/ hr 10 $5.56 $166.80 $2002

Low Temp Vertical Commercial Dishwasher Energy Star Certified

CMA Dishmachines

$2951.18 393/ hr 8 $2.26 $67.80 $814

Under Counter 150 lb Ice Maker Machine- Energy Star Certified

ScotsmanCU1526MA-1

$1695.18 3100/ hr 11 $1.97 $59.10 $709

6x10 Walk In Freezer w/ Floor

KolpakQS7-610-FT

$8096.49 710/ hr 24 $3.84 $115.20 $1382

11 Qt Round Insulated Soup Warmer

APW WyottRW-2V-SP

$224.48 2390/ hr 11 $0.10 $3.00 $36

Total $19,280.05 $13.73 $411.90 $4943

6. Health Repercussions and Analysis

Soup Station is a company focused on nutrition, convenience, and sustainability with an eye for advancing health and well-being for its patrons and employees.  With chronic disease levels and obesity on the rise, as well as unfavorable environmental practices, businesses have a responsibility to challenge and diminish these issues.

All of Soup Station’s soups will be prepared fresh daily with organic ingredients purchased locally.  Purchasing organic ingredients from local farms will also promote our committment to good nutrition and health. Soup Station plans to offer a selection of soups throughout the day that cater to various food intolerances and food preferences, such as a vegan option and a low-sodium option.  The main component to making soup

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a healthy food option is to make sure it is concentrated in the vegetables that we want to increase in our diet and not full of what we need to reduce, like sodium and saturated fats.  Soup can also be an option for someone who is conscious about weight control. Our nation’s portion sizes have grown substantially in the last twenty years contributing to our societies rise in obesity (10).  Soup Station desires to provide nutritious food options for a health conscious society.

Soup Station will likewise reduce its carbon footprint by striving to obtain a platinum LEED certification within the first year.  The certifications are earned by gaining points in 5 areas consisting of: sustainable sites, water efficiency, energy and atmosphere, materials and resources, and indoor environmental quality (9). Platinum certification is achieved by gaining 80 points or more in the combined categories (11).

Soup Station will be utilizing solar panels as well as LED lights to save on energy cost and energy usage.  There will be water conservation methods in place such as a grey water system that recycles wastewater and underground water storage to harvest rainwater.  All the major equipment will be Energy Star certified, and the employees will be trained in proper equipment operation and further trained in waste management. Soup Station will also certify our restaurant as a Certified Green Restaurant through the Green Restaurant Association and by doing so the association will provide annual employee education and content for educational signage throughout the restaurant (12).

The facility will additionally feature an herb garden on the roof, which improves the energy performance of the building and reduces storm water runoff.  Furthermore, Soup Station will feature a collection of compostable plates and bowls provided by VerTerra, a company specializing in compostable dinnerware.  The plates and bowls are made from 100% renewable and BPI-certified compostable fallen leaves and water.  Building performance institute (BPI) is a recognized standard for home efficiency (13). By putting these practices into use, Soup Station will not only benefit their customers with the most up-to-date health trends but also be contribute to promoting a green lifestyle for the local environment.

7. Market and Competitive Analysis   The market for soup has remained in high demand for many years, and soup has always been a popular item for American consumers of all ages. Recently, soup sales have seen a shift from the grocery stores to restaurants, both quick and full service (14). It is estimated that 48% of soup is consumed at lunch, and 46% consumed at dinner, either as an entree or a side option (14). As Americans are becoming more health-conscious, more restaurants are seen incorporating soup into their menus. It is reported that 6 out of the top 10 health-conscious restaurants have a wide selection of soups on their menu. In regards to consumers, an appeal for fresh, homemade soups sold at restaurants is ever present (14). Consumers gravitate towards soups found in these establishments because they offer selections that they could not buy at a grocery store or make at home (14).

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Soup Station is ideal for San Diego’s health conscious population. It also offers customers the luxury of quick-service, which is essential for working individuals, students, and families. Soup Station also caters to the needs of those who are looking for a social, relaxed environment, where they can come to enjoy good, healthy food while being in the companionship of other people.

Single-concept restaurants are rising in popularity and consumers are drawn to the simplicity of being able to choose from less options. These restaurants are also showing to be more profitable for business owners in that they allow for less waste as well as perfection of dishes (15,16). Competitors such as Panera Bread and San Diego Soup Shoppe have a heavy focus on soups as part of their menu, but also serve a variety of other options. Soup Station is unique to these places in that soup is the only entree that is sold. The small menu of Soup Station allows for the creation of exotic and flavorful soups, created with love and dedication to providing healthy meals for its customers made with the finest, most wholesome ingredients. In order to keep customers excited with soup, Soup Station offers variety within their concept (15). Soup Station’s menu changes every day, with new creations being added to it based on customer satisfaction surveys and new trends. The single-concept idea behind Soup Station also allows for less labor and equipment, allowing for more resources to be allocated towards delicious and nutritious soups (15).

Soup Station uses only locally sourced, organic products in the creations of all their menu items. According to the National Restaurant Association (NRA), consumers want to know where their food comes from, and ranks locally sourced meats and produce as number 1 and 2 on their top 10 restaurant trends of 2014 (17). Soup Station is also an eco-friendly, sustainable restaurant. In addition to the usage of only locally sourced and organic products, Soup Station reduces its carbon footprint by using only biodegradable, recycled paper products. Soup Station also recycles all waste and either composts or donates any leftover food (17, 18). Also contributing to Soup Station’s sustainability is the usage of Energy Star and Water Sense equipment. The Sustainable Restaurant Association reports sustainability as being the number 1 trend in restaurants in the upcoming 10 years, stating that consumers will pay 10% more for a meal in a sustainable restaurant (17).

7.1 Target Market

Soup Station will be located in La Jolla, CA, directly outside of the UCSD campus. This locale is optimal for students, workers, and families residing in the area. The location of Soup Station was based on numerous factors, such as consumer interest and profitability. Soup Station’s convenience and social atmosphere will draw in local college students from UCSD, one of the most populous college campuses in California. Soup Station’s late hours and take-out options are perfect for college students stopping in to get a quick bite between classes, or for late night study sessions with friends. Soup Station will also draw in workers in the La Jolla area looking for a speedy lunch break meal that is both filling and nutritious. La Jolla is home to major hospitals, such as the

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VA Medical Center, Scripps Memorial Hospital, Scripps Green Hospital, and UCSD’s Thornton Hospital. These hospitals employ thousands of workers, some with irregular lunch breaks that would contribute to the sales at Soup Station. There exists even a greater market within the La Jolla community. According to recent soup statistics, 42% of soup consumers make more than $75,000 annually (14).The mean annual income for La Jolla residents is $142,197, and a further breakdown of income is illustrated in Figure 7.1 in the Appendix. In regards to age, the top 4 age brackets of residents in La Jolla are 35-44, 18-24, 25-34, and 45-54, as illustrated in Figure 7.2 of the Appendix. According to surveys of soup consumers, it was found that 27% of those ages 35-49 consume soup on a regular basis, followed by 21% of 50-64 age bracket, and 17% of the 25-34 age bracket (14). This corresponds well with the age demographics of people residing in the La Jolla community. La Jolla is also a health-conscious community, which is why Soup Station would be an asset to the local quick-casual restaurant scene.

Table 7.1 Competitive SWOT AnalysisAttributes Soup Station Panera Bread San Diego Soup Shoppe

Products Soups, Dessert soup,Bread

Soups, Sandwiches,Salads, Breads,Pastries

Soups, Panini, Salads

Services Quick ServiceCounter-order/Pick-upDine-In/Carry OutCall-in

Quick ServiceCounter-order/Pick-upDine-In/Carry OutCall-in Delivery

Quick ServiceCounter-order/Pick upDine In/Carry OutCall-in

Quality OrganicLocally-sourcedFreshHand-Crafted

FreshNatural ProductsAntibiotic/Hormone free

FreshHandcrafted

Pricing Soups: $5.99-$9.99Dessert Soup: $4.99Bread: $2.49

Soups: $5.49-$6.19Bread/Bagel: $0.79-$5.79Sandwiches: $6.99-$9.69Salads: $7.39-$9.99Pastries: $0.99-$3.99

Soups: $6.99                 Lobster Bisque $7.99 Bread Bowl: $2.00    Panini: $8.99Salads: $7.99-$8.99

Location 8820 Villa La Jolla DriveSan Diego, CA 92182(La Jolla, UTC)

5620 Balboa Ave.San Diego, 92117(Clairemont/La Jolla)

2850 El Cajon Blvd. San Diego, 92104(North Park)

Hours Mon-Sun (11am-10pm)

Mon-Sun (6am-9pm) Tues-Fri (11am-4pm)Sat-Sun (12pm-4pm)Closed Monday

Target Upper class working

College students, Middle-class working

Working professionals,Local residents

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Market professionals and local residents, Health-conscious individuals, College students

professionals, families

Advertising College flyers, local newspapers, Social media, Corporations and neighboring hospitals

Social Media, Mail coupons

Social media, Local newspapers

Strengths Innovative, Sustainable, Comforting food and environment, Nutrition focused, Culturally diverse, Locally sourced, Wi-fi

Strong brand image, Artisan foods, Strong customer loyalty, Fresh ingredients, Wi-fi, Comfortable ambience

Fresh, Handcrafted soups, Simple menu, Trendy, Customer loyalty,

Weaknesses Growth of clientele, High costs of local/organic products, Competitive prices, Competitor’s customer loyalty

Static menu, Minimal customer growth within past two years, Slower service

Slow business growth, lower advertising,

 Soup Station’s competitive advantage over similar businesses such as Panera Bread and San Diego Soup Shoppe is that all ingredients used in the variety of soups served are locally sourced and organic; this pertains to produce and meats. The founders of Soup Station, with their background in nutrition, feel as though small impacts on a community can make a much larger impression on society as whole. Soup Station’s unique focus on organic and locally sourced products correspond with rising trends in both of those areas, something that Panera Bread and San Diego Soup Shoppe don’t offer. Soup Station’s own herb garden inside the restaurant provides customers with the feeling that they are in their very own garden, optimizing the “fresh” and “home-grown” concepts that ultimately define Soup Station and its founders.

Soup Station offers gourmet soups and does not have a static menu like its competitor's Panera Bread and San Diego Soup Shoppe. Each soup recipe at Soup Station is crafted with love and nutrition knowledge, aimed at optimizing health benefits for each of its consumers. Ingredients in the soup are also designed to complement one another, encompassing a wide variety of micro and macronutrient needs for each individual. Recipes are inspired by celebrity chef Anthony Bourdain, with a special emphasis on ethnic foods from around the world. These non-traditional soups and the fluid menu at Soup Station will keep its customers coming back to see which area of the world they will vicariously get to visit via their taste buds. The wide variety of soups from

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throughout the world also brings in customers of all ethnicities and can provide a sense of comfort and home if a soup from their culture is being served.

8.1 Marketing Strategy

The market niche for Soup Station is aimed at health-conscious individuals; those with a defined interest in organic, locally-sourced products offered at an establishment that values the environment and promotes sustainability both internally and externally. The nutrition expertise of the founders of Soup Station allows for customization of the soups being created in a way to tailor specific dietary requests from its customers; such as vegan, vegetarian, lactose-free, gluten-free, grass-fed, etc. Soup Station is located in La Jolla, and is aimed at serving upper-class clientele, who can afford to take a heightened interest in their health and will pay more for optimal ingredients. The marketing strategy of Soup Station is aimed to target the specific populations in its market niche. Creating a strong web presence is the key to targeting potential customers and aims to convert them into sales. New clientele is necessary for Soup Station’s growth as a new business and vital to future success.

Soup Station will use customer relationship marketing (CRM) to build relationships and loyalty with its clientele, while building their brand and business performance. One way of how Soup Station will use CRM is through web-based surveys and questionnaires that customers will be invited to take part of once they register their email address with a cashier. Customers will be able to leave feedback on their experience at Soup Station in regards to service and quality of food. They will also be invited to comment on any type of soup they would like to see served in the future at Soup Station. Each month, a customer inspired soup will be added to the menu. Soup Station’s genuine interest in its customers will help drive clientele and brand loyalty.

Soup Station will also use social media outlets such as Facebook, Twitter, and Instagram to advertise itself to its target market. These social media outlets will allow Soup Station to interact with and better understand the needs of its customers, creating a sense of customer loyalty while drawing in more potential customers. The social media outlets used by Soup Station will also provide customers with pictures and descriptions of featured food products as well as keep customers aware of any events or promotions being held at the establishment. Facebook or Twitter followers of Anthony Bourdain, co-founder of Soup Station, will be able to keep track of any surprise visit Anthony might make to Soup Station. This is sure to create a buzz among local residents of La Jolla while drawing in customers from outside communities as well, increasing Soup Station’s popularity and increasing chances for future business growth.

Another market niche for Soup Station is at the local university, UCSD. Soup Station will advertise its opening with the local college UCSD. Soup Station will also advertise itself and any weekly promotions in UCSD’s newspaper the Guardian and on their local radio station, inviting students and faculty to come eat or socialize at the new green eatery in La Jolla. Soup Station will also be available to host different university events at its

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location, therefore creating a strong business presence with clubs, organizations, and students at the university.

Soup Station encompasses the ideals and values of sustainable, organic, and locally sourced products and truly wants to deliver the most nutritionally-sound soups for its customers. For that reason, it is important that Soup Station creates a connection with those who advocate for the same causes. Soup Station will seek to share their concepts and business goals at local college campuses, inspiring people to get inspired about their health and the health of the planet they live on. Farmer’s markets and local retail stores will also be other advertising outlets for Soup Station, whether it be business cards or coupons.

8.2 Emerging Technology

Soup Station will employ the use of mobile apps and online ordering to keep up with technological advances in today’s market. The mobile app will offer a customer loyalty card for those who use it, which will feature daily discounts or special promotions for those who sign up with an account. The mobile app will also enable customers to place orders online for pickup or dine-in, expediting the ordering and payment process. This self-service option is ideal for market segments like college and universities as well as businesses and industries. The mobile app will engage people by providing details of upcoming soups, specials, and recipes inspired by Anthony Bourdain.

Another emerging technology in food service is the use of eco-friendly products and energy and water efficient equipment. Soup Station takes great pride in being a green business and reducing its carbon footprint. Soup Station buys and uses only recycled- content paper products and uses less toxic cleaning products. Soup Station also uses energy efficient lighting systems and the toilets and faucets at the facility are designed to use less water. Soup Station’s commitment to reduce energy and conserve water has earned them a place in San Diego’s Green Business Network. Soup Station’s standing in this network also serves as networking opportunity, promoting their brand outside of the La Jolla community.

9. Goals, Risks and Strategies  

Soup Station has compiled a set of short-term and long-term goals and aspirations. Growing the company and paying back 25% of the loans is one of the short-term goals, along with saving at least 30% of the energy costs within the first year.  This may seem ambitious and formidable but Soup Station has implemented strategies to set these goals in motion.  One of the issues of growing the company and paying back loans may be the unseen costs that could arise. Soup Station is prepared to handle any unseen monetary problems with a reserve account put in place to cover costs that arise unexpectedly.  Also, with the guidance of the Soup Station accountant, there will be a

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budget in place from which there will be no deviation.  With these strict guidelines Soup Station hopes to grow its company and pay back a portion of its loans within the first year.  Another short-term goal is to save at least 30% of the energy costs in the first year.  One of the barriers in achieving this goal is the high cost of energy-saving equipment.  However, with effective use of the equipment the initial cost will be absorbed throughout the year and ultimately save on the yearly energy cost.  Also, Soup Station will be training all its employees on efficient waste management to assist the company in reaching its goals.

One of the long-term goals of Soup Station is to expand locally throughout San Diego, and eventually to spread nationally.  Finding locations that will be profitable is one of the risks to this goal, nonetheless Soup Station will implement strategies to survey the town and find a location that will best serve the needs and demographics of the company.Additionally, a long-term goal of the company is to pay back its loans in their entirety. The barriers to this goal would be unseen costs as well as competition from other restaurants that would encroach on profitability.  One of the strategies to safeguard against these occurrences would be to focus on customer satisfaction and also to keep our prices competitive to ensure a loyal clientele.   

Table 9.1 Short Term and Long Term GoalsGoals Risks Strategies

Short-Term:Pay back 25% of loans within first year. Grow the company.

Unseen costs.  Company lacks clientele to facilitate growth.

Keep a reserve account to abet with unexpected expenses.  Zero deviation from the budget.  Use of networking to facilitate company growth.  

Short-term:Save at least 30% of energy cost in first year.

High cost of energy-saving equipment; high-energy usage.

Effective use of equipment.  Waste management training for employees.

Long-term:Expand restaurant to include second shop.

High food costs may hamper growth.  Finding the right location.

If food costs are high could shop around for different farms.  Survey town for the right location.

Long-term:Payback 100% of loans within ten years.

Rising costs of property, upkeep of facility, and rising food costs could hinder financial growth.

Focus on marketing strategies to keep up with food trends and keep restaurant relevant.  Focus on customer satisfaction and competitive prices to grow clientele.

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10. Financial Assumptions

Start-up costs for Soup Station were estimated at $258,000. This amount will cover the lease deposit and the first month’s rent, the remodel of the rental space including the installation of appropriate equipment and décor, interior and exterior signage, and the cost of start-up food and supplies to sustain over the first month. Also included in the start-up expense analysis was any corresponding business licensing, health permits, utility deposits and monthly estimation, advertising and marketing associated costs and deposits, website design, and legal fees.

Monthly costs for Soup Station were approximated to be $29,000. This amount includes monthly rent, utility costs (water, sewage, electricity, gas and trash), liability and property insurance, food and supplies costs, labor, equipment maintenance and advertising/website maintenance fees. Table 10.1 gives a complete breakdown of the associated costs. Numbers were estimated by looking at other similar quick-service restaurants with similar square footage. (Note: Due to the perishability of organic products, these will be purchased on a weekly basis. The weekly cost of organic products was multiplied by the corresponding weeks in the month to determine the monthly food cost amount).

For the Soup Station to sustain over a three-month period, a total of $87,252 will be needed. This number does not take into account any revenue collected in the first three months of business. Soup Station has projected the potential sales for Month 1, 2, and 3 at $30,000, $34,000, and $40,000 respectively. This would add up to a potential 3 month profit of $16,748.

The start-up cost for Soup Station will be combined from an equal investment of $50,000 from each of its four founders. This leaves $58,000 for the remaining start up cost which will be covered by the SBA’s 7(a) loan program. The owners have applied for a 7(a) loan in the amount of $100,000. This amount will cover remaining start-up costs, while leaving $42,000 to be kept in the account for expenses unforeseen.

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Table 10.1 Start-Up/ Monthly Cost Analysis

Type of Cost Item/Expense AmountONE-TIME Lease Deposit (3 months rent) $9,417.87

Rental Space Remodel/Green Rennovation $200,000.00CA Business Tax Certificate/License $54.00CA Filing Fee $70.00Health Permit $708.00Kitchen Equipment $20,000.00Dining Room Products (Dishes, Décor) $10,000.00Start-Up Food $4,600.00Start-Up Supplies (Cleaning, Offi ce) $1,000.00Start-Up Advertising/Marketing $1,500.00Website Design $800.00Utility Deposits $2,695.00Signs $2,500.00Legal Fees $2,000.00POS and Credit Card Machines $4,000.00

total: $257,994.87MONTHLY Rent $3,157.29

Utilities (gas, water, electricity, sewage) $600.00Labor $12,000.00Food Cost and Delivery $11, 550.00Supply Cost and Delivery $475.00Advertising $350.00Website Maintenance $175.00Equipment Maintenance Fees $200.00Liability and Property Insurance $200.00Cleaning $250.00Internet/Phone $129.99

sub-total (1 month): $29,084.28

total (3 months): $87,252.84

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References

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Appendix

Fig. 1 (19)

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Fig. 2 (20)

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Fig. 3 Inspiration for Decor (22)

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Fig. 4 Sample Partial Weekly ScheduleEmployee Name

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Manager

Summer 8:00 - 4:30 X X 2:30 - 11:00 2:30 - 11:00 8:00 - 4:30 8:00 - 4:30

Patricia 2:30 - 11:00 2:30 - 11:00 2:30 - 11:00 X X 2:30- 11:00 2:30 - 11:00

Nancy X 8:00 - 4:30 8:00 - 4:30 8:00 - 4:30 8:00 - 4:30 X 8:00 - 4:30

Cook

Miguel X X 8:00 - 4:30 8:00 - 4:30 8:00 - 4:30 8:00 - 4:30 8:00 - 4:30

John 8:00 - 4:30 8:00 - 4:30 X X 2:30 - 11:00 2:30 - 11:00 2:30 - 11:00

Stephanie 2:30 - 11:00 2:30 - 11:00 2:30 - 11:00 2:30 - 11:00 X X 2:30 - 11:00

FR/Busser

Leticia 10:30 - 5:00 X 10:30 - 5:00 X 10:30 - 5:00 10:30 - 5:00 X

Ahmed 12:00 - 6:30 10:30 - 5:00 12:00 - 6:30 X X X 10:30 - 5:00

Jerry 4:00 - 10:30 X 4:00 - 10:30 4:00 - 10:30 X X 4:00 - 10:30

Sophia X 12:00 - 6:30 X X X 12:00 - 6:30 12:00 - 6:30

Cornelio X 4:00 - 10:30 X X X 4:00 - 10:30 X

Alex X X X 10:30 - 5:00 4:00 - 10:30 X X

Fig. 5 Organizational Chart

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Fig. 7.1 Income Analysis

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Owner/Managers

Cooks

Prep Cook

Dishwasher

Foodrunners/ Bussers Cashiers

Head Chef

Figure 7.2 - Age Analysis

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