PR action plan
... Looks for speed of service. • Wants an entertaining dining experience. • Insists upon a clean, friendly, and attractive dining environment. 4.3 Service Business Analysis The restaurant industry in the U.S. has experienced rapid growth in the last 20 years and is now moving into the mature stage of its life cycle. Many factors contributed to the large demand for good restaurants in the U.S. today. People want more leisure time. There are more two-wage earner families today, and more discretionary income. The competition is strong, with many formidable chains competing for the consumer dollar. It is almost impossible today to strike off into a new, unique, untried venue. Only the strong will survive and prosper. Due to intense competition, restaurateurs must look for ways to differentiate their place of business in order to achieve and maintain a competitive advantage. The founders of Yazoo’s realize the need for differentiation and strongly believe that combining the popularity of sandwiches and wraps made to order in a trendy environment is the key to success. 4.4 Business Participants In the United States today, there are 3,349 chain restaurants that compete for the U.S. restaurant dollar. This number does not take into account the thousands of sole proprietor restaurants that dot the American landscape. These chain restaurants accounted for $108,238,150,121 dollars of business in 2003. In the segments that competed against us there were: • 40 chains in the cafeteria segment • 1,421 chains in the casual dining segment • 274 chains in the family dining segment • 1,676 chains in the quick service segment Among our closest competitors, six are listed in the largest 200 restaurant chains, ranked by sales volume. All have a large national or strong regional presence. 4.5 Competition and Buying Patterns 2003 was a prosperous year for the restaurant industry. While not every chain was as successful as it could be, consumers stepped up and continued to increase their use of restaurants. They appeared to have happily paid a bit more for a meal. They don't seem to need promotions to be inspired to buy. At the same time, operators, particularly chains, appeared fairly cautious. No incremental units were built for the first time since the early 1990's. Though there were some rocky points in the American economy over the course of the year, things finished up on a high note, and prospects bode well for 2004. Gross Domestic Product (GDP) percolated along at a growth rate of roughly 4%. The remarkable thing about the GDP is how strongly it finished the year. Disposable personal income grew a little under the pace it set the past two years. The unemployment rate continued to decline throughout the year, and the Consumer Price Index (CPI) popped above 2% but stayed remarkably low. Among chains as a whole, however, smaller chains (under 99 units) were the ones that saw unit counts decline. The most aggressive growth group remains the chains that number between 100 and 500 units. The conservative behavior of the operator community might have led to a disappointing year for the industry if it weren't for the fact that consumers kept right on buying more restaurant prepared foods. In 2003, the number of meals and snacks purchased from a restaurant per person grew to 158 occasions per year, another all-time high. The combined boosts in traffic counts and guest check averages resulted in a 6.5% increase in consumer spending at restaurants. The industry has achieved the longest and strongest expenditures growth ever recorded in the 25-year history of CREST. 4.6 Meeting Tomorrow’s Needs We must first look at how our population is segmented in order to understand tomorrow's needs. Below is typically how we segment the various generations. Generation Birth Years Population Baby Boomers 1946-1964 78 Million Gen X/Baby Bust 1965-1978 44 Million Gen Y/Echo Boom 1979-1994 70 Million The good news is that Gen Y is almost the same size as the Baby Boomers. With their numbers so large, our industry will have to cater to their tastes more to continue increasing revenue. This generation will have different tastes and interests; therefore, we will also need to market to them differently. We will see a gradual menu evolution. Mexican, Tex-Mex, and Italian will play an even larger part in the future. Hot and spicy foods will continue to increase their presence. Chinese and Asian recipes will be the growth of the future. Two very important reasons exist for the rise in food temperature and menu expansion: 81% of the teens today like spicy food, and 79% are very likely to try new foods. We will also see that the majority of tomorrow’s consumers will continue to be fussy about healthy eating; always looking for the “easy solution.” Below is a table depicting recent consumer trends concerning diet and calorie counting: 1990 2003 Always watch calories 26% 34% Limited snacking 41% 29% Avoid fat 51% 41% Avoid carbohydrates 29% 60% 4.7 Main Competitors Everyone that sells prepared meals is our competition because we all compete for the same home meal replacement dollar. However, there are two segments of the restaurant industry that are our main competition: the gourmet sandwich shops concept and existing fast service deli’s. 5.0 Marketing Our strategy is based on serving our niche markets well. The college students, baby-boomers, families with young and older children, middle income individuals, and most of mid-America can all enjoy the dining experience at Yazoo’s. What begins as a customized version of a standard product tailored to the needs of a local clientele can become a niche product that will fill similar needs in markets across the U.S. We are building an infrastructure so that we can replicate the product, the experience, and the environment across broader geographic lines. Concentration will be on maintaining quality and establishing a strong identity in each local market. The identity becomes the source of "critical mass" upon which expansion efforts are based. Not only does it add marketing muscle but it also becomes the framework for further expansion, using both company-owned and possibly franchised-store locations. 5.1 Marketing Strategy A combination of local media and local store marketing programs will be utilized at Yazoo’s. Local store marketing is most effective, followed by radio, then print. As soon as a concentration of stores is established in a market, then broader media will be explored. We believe, however, that the best form of advertising is still "word-of-mouth." By providing an entertaining and trendy environment, with unbeatable quality at an unbelievable price in a clean and friendly restaurant, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. 5.2 Positioning Statement Our main focus in marketing will be to increase customer awareness in the surrounding community. We will direct all of our tactics and programs toward the goal of explaining who we are and what we are all about. We have no plans to join in the coupon/discounting wars nor the birthday or frequent buyer clubs upon which others have embarked. We will price our products fairly, keep our standards high, and execute the concept so that word-of-mouth will be our main marketing force. Furthermore, we will do no outside marketing for the first 90 days of business. The "honeymoon period" brings in all the guests we can handle properly. It would be a mistake to bring in more customers than we can serve at our peak quality level. 5.3 Marketing Tactics We will employ three different tactics to increase customer awareness of Yazoo’s. Our most important tactic will be word of mouth/in-store marketing. This will be by far the cheapest and most effective of our marketing programs. The second marketing tactic will be Local Store Marketing (LSM). These will be low-budget plans that will provide community support and awareness for our facility. We plan on doing approximately two or three LSM programs per marketing quarter. The last marketing tactic will be local media. This will be the most costly and will be used sparingly to supplement where necessary. 5.4 Marketing Programs Word Of Mouth/In-Store Marketing • Table tents. • Wall posters. • V.I.P. party. • Grand Opening celebration. • Yearly anniversary parties. Local Store Marketing • School programs – UGA off-campus meal plan, Dean’s List • Local charity carwash site. • Free Yazoo’s "T" shirts to random customers Local Media • Direct mail piece - containing interior pictures of our restaurant, specialty menu items, and our prices. • Radio campaign - complete with live remotes on our parking lot. We will try and pick the three top local stations with which to place our short and catchy ads. We will also sponsor radio call-in contests with free meal coupons to Yazoo’s as the prize. We will trade our complementary dinner coupons for free radio time. We will also make "live on the air" presentations of our food products to the disk jockeys, hoping to get the reactions broadcast to the listening audience. • Newspaper campaign - placing several large ads in The Red & Black, Flagpole Magazine, and The Athens-Banner Herald throughout the month to explain our concept to the local area. • Cable TV - will be a possibility if we can secure favorable rates with enough frequency. 5.5 Sales Programs Below are the programs that we will develop to kick open Yazoo’s. Grand Opening -- Each new store will have outdoor signs in place as soon as possible. We want the banners and road sign to announce that something new and exciting is coming to the neighborhood. Once the shell of the building is up, we will begin mounting large banners announcing that we will open soon. At the grand opening, we will attach rows of pennants to our building, outdoor sign, and pole lights to attract attention. All of this is low cost but has proven to be highly successful. VIP Parties -- We will host a VIP lunch. This will serve the dual purpose of training our staff and introducing ourselves to the community. The list of individuals we invite will come from the Chamber of Commerce. We will choose a local charity to be the beneficiary of our event. All guests will receive an invitation for themselves and one other, to attend our event free-of-charge. All we will ask of our patrons is that they make a small contribution to the hosting charity. Point of Purchase (P.O.P.) – We will sell gift certificates, announce job openings, and possibly mention future franchise opportunities. Brochures and handouts will explain that we can cater to large parties, banquets, or buses. Another brochure will list our daily featured items. Direct Mail Piece --A stand-alone piece will be produced in full color on heavy weight paper. Inside will be all the important details of Yazoo's Deli. We will explain our menu, prices, hours of operation, method of service, and provide a locator map. Radio --We will create one short, humorous, music-based radio commercial, in both a 30- and a 60-second spot. Both commercials will have a 10-second blank bed where we can mention something specific about the restaurant. Newspaper --We will create several different size ads, generic in nature, to be used for any store in the chain. Local Store Marketing (LSM) -- We envision having over two dozen LSM promotions for use by Yazoo's. The three that we will use during the initial marketing wave are the customer raffle, charity carwash (free carwash when you dine in with us), and our school program (UGA off-campus meal plan and Dean’s List discounts). 5.6 Milestones The following table lists important milestones, with projected dated, management and budget responsibility. The milestones schedule indicates our emphasis on planning for sales strategies. Milestone Start Date End Date Budget Manager Department Grand Opening Materials 10/1/2004 12/1/2004 $500 CS Executive VIP Lunch Party 11/1/2004 12/1/2004 $2,825 CS Executive In Store POP - Table Tents, Posters 10/1/2004 1/1/2005 $2,500 CS Executive Direct Mail Piece 11/1/2004 1/1/2005 $7,500 CS Executive Radio 1/1/2005 2/1/2005 $7,500 CS Executive Newspaper 11/1/2004 1/1/2005 $7,500 CS Executive LSM project #1 2/1/2005 3/1/2005 $500 CS Executive LSM project #2 3/1/2005 4/1/2005 $500 ? Store Mgmt LSM project #3 4/1/2005 5/1/2005 $500 ? Store Mgmt Totals $29,825 6.0 Management The initial management team depends on the founders themselves, with little back-up. As we grow, we will take on additional help in certain key areas. Part of our basic philosophy will be to run our executive management "lean and mean." We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to "wear many hats," so to speak. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our restaurant. At present time, both Chris Springfield and Chris Gibby are firmly committed to the Yazoo Deli’s concept. Others, who have helped on the development of this business plan, have expressed a desire to join in this venture at the appropriate time. Yazoo's is currently the creative idea of Chris Springfield and Scott Gibby. As the company is small in nature, it requires a simple organizational structure. Implementation of this organization form calls for both owners to make all of the major management decisions in addition to monitoring all other business activities. 7.0 Financial Plan Sales – Yazoo’s is basing its projected sales on the assumption that the unit will open on November 1, 2004. We have projected sales on the low side using $1 million dollars per year. We did not factor in any sales growth for subsequent years. Cost of Goods Sold -- The cost of goods sold was determined by taking actual Profit and Loss statements from various restaurant concepts and then using our pricing structure and guest counts to arrive at costs. Management Payroll -- Figures are based upon the use of two managers at our maximum bonus and salary levels. However, if we use only one manager, this will lower our payroll. Fixed and Variable Expenses -- The various fixed and variable expenses were determined by taking actual numbers from several different restaurant concepts. Marketing Fees -- These funds will be used for the production of various marketing materials. Advertising -- These funds will be used, if necessary, to maintain our sales at projected levels. If we are running significantly ahead of our sales projections, then these funds may not be necessary. The financial plan depends on important assumptions. Some of the more important underlying assumptions are: • We assume a strong economy, without a major recession. • We assume, of course, that there are no unforeseen changes in consumers' tastes or interests to make our concept less competitive. 7.1 Key Financial Indicators Food costs must be kept at, or below, 35%. Unit level employee costs must be kept at, or below, 17%. One of the other important indicators is inventory turnover. In the restaurant business, turnover exceeds 50 per year, with product being purchased and sold often within the week. Above all, controls must be instituted and maintained. Yazoo’s Deli will use state-of-the-art restaurant control and inventory systems. All systems will be computer-based, allowing for accurate off-premises control. 7.2 Break-Even Analysis VARIABLE COSTS 35.00% - Cost of goods sold. 17.00% - Employee payroll. .25% - Credit card charges. .33% - Marketing fees. 2.00% - Management fees. 2.00% - Advertising. 2.00% - Management bonus. 3.03% - Employee payroll taxes and benefits. 1.50% - Paper and cleaning. 63.11% - Total variable costs. ANNUAL FIXED COSTS $70,000 - Management salaries. $17,000 - Management payroll taxes and benefits. $16,410 - Group insurance. $137,100 - Controllable expenses minus credit card charges and paper/cleaning. $40,208 - Other expenses minus marketing fees, advertising, and management fees. $85,000 - Depreciation. $365,718 - Total fixed costs. 8.0 Evaluation Methods Because Yazoo’s Deli is a new business, evaluating the company’s goals and objectives will not be possible until the deli has established itself. However, plans for customer satisfaction surveys and suggestion boxes are already being developed. Judging results ultimately shows in sales and customer loyalty. 1.0 Executive Summary This Public Relations Action plan is designed for a new restaurant operation, called Yazoo’s Deli. The plan includes the company’s goals and objectives, timetables, various research methods, key publics, messages, strategies, and budget. Finally, a media plan and methods of evaluating the success of the Public Relations Plan are described. Yazoo’s deli will be unlike any typical sandwich shop in Athens, Ga. It will provide a unique combination of excellent food at value pricing with a fun and trendy atmosphere. Yazoo’s deli is the answer to an increasing demand. The public 1) wants value for everything it purchases 2) is not willing to accept anything that does not meet its expectations, and 3) wants a trendy and entertaining dining experience. In today's highly competitive environment, it is becoming increasingly more difficult to differentiate one restaurant concept from another. Yazoo’s deli does this by offering new and creative deli offerings with only the finest quality of ingredients. They also provide a fun place to dine in or take out. While waiting in line, customers can admire the trendy paintings of various fresh ingredients on the wall, created by a local artist. 1.1 Objectives Yazoo’s objectives for the first three years of operation include: • Growing one unit per year for the first three years of operation. • Keeping food cost under 35% of revenue. • Keeping employee labor cost between 16-18% of revenue. • Averaging sales 1-2 million dollars per year. • Maintaining tight controls on costs and operations by hiring a managing partner/proprietor and utilizing automated computer/Internet control. The keys to success in achieving our goals are: • The creation of a unique, innovative, entertaining, mid-scale atmosphere that will differentiate us from the competition. • Execution of our primary goal to serve nothing but the highest quality food at unbelievably low prices in a clean, fun environment. We must deliver on this pledge 100% of the time, without exception. • Controlling costs at all times, in all areas. • Hiring the best people available, training, motivating and encouraging them, and thereby retaining the friendliest, most efficient staff possible. 1.2 Mission Yazoo’s Deli will strive to be the premier deli restaurant in the local marketplace. We want our guests to have the total experience when visiting Yazoo’s. Not only will our guests receive a great meal, they will also be provided with a fun atmosphere. We will be doing unique things (such as having contests for creating new menu items) that will set us apart from the competition. We will want the dining experience to be as pleasing to the senses as it is to the palate. Our main focus will be serving quality food at a great value. We will feature a large selection of freshly-prepared food, most in full view of our guests. We will feature items daily that are full of flavor and zest at an unbelievable price. Customer satisfaction is vital. When approached by a customer with a request, our motto will be, "Yes is the answer; what is the question?" We will strive for broad appeal. We want to be the restaurant of choice for everyone: families and singles, young and old, male or female. Employee welfare will be equally important to our success. All will be treated fairly with the utmost respect. We want our employees to feel a part of the success of Yazoo’s Deli. Happy employees make happy guests. We will combine menu variety, atmosphere, ambiance, and friendly staff to create a sense of "place" in order to reach our goal of over-all value in the dining/entertainment experience. 2.0 Company Ownership Yazoo’s Deli is a duel proprietor business. Chris Springfield Scott Gibby are the principal owners. Mr. Springfield holds a BS degree in business management from the University of Georgia. He is currently the owner of two extremely successful bars/nightclubs in Athens, The Winery and The Firehouse. Mr. Gibby also holds a BS in business management from the University of Georgia. Besides the creation of the deli, he is also in the real-estate business. 3.0 Services Yazoo’s Deli will provide quality dining seven days per week. We will only close our locations on Christmas and Thanksgiving. We will be open for lunch and dinner, starting at 10 a.m. and closi...