Introduction
Chef Vending, LLC, which is a family-owned start-up, imports Spanish food & beverage equipment and vending machines. We will penetrate the vending industry with innovative, first to market, high quality vending machines. We plan to establish our own vending outlets in the Southern Florida and Central Florida areas. We intend to be a part of the $321 billion food-and-beverage industry by providing high-quality, innovative equipment. We are confident that we will easily exceed our financial projections with the formation of one strategic alliance, which includes a national brand in either of our vending line brands.
The Company
Chef Vending’s mission in life is to be the best at introducing quality, innovative vending machines and equipment to restaurants. We will satisfy our customers’ needs wherever possible through close customer contact and strong relationships.
Chef Vending, LLC, which is a Florida private corporation, maintains an Office and a Small Warehouse in a Mixed-Use Area of North Miami Beach, Florida.
Three of the four investors are fully responsible for the operation. Javier Palmera and Mauricio Odonez, the co-founders have extensive industry and entrepreneurial knowledge. Charles Mulligan adds financial management and operational management to the operation.
The Products
Chef Vending is going to have two product lines. Each one will be for different markets. Our vending products include the Multi-line Dispenser, Fresh Orange Juice Machine, and our Sandwich Express machine. We will also be selling restaurant equipment such as toasters, fresh juices squeezers, and espresso machines.
Sandwich Express is one of Chef Vending’s most innovative products. It has functions and benefits that are not available in other vending machines today.
We intend to continue expanding our product line. We plan to expand our Sandwich Express line with a larger version that offers more sandwiches and a wider range of products, including pizza. We are also exploring other products.
We are also pursuing supplier relationships with large nationally-branded juice and sandwich manufacturers, to customize our machines to their products. This would allow Chef Vending, to supply machines for national companies and allow them brand the machines with one of their product lines.
The Market
According to the Automatic Merchandiser magazine’, the U.S. Vending Industry Report, the revenue generated from consumable merchandise reached $24.5Billion in 2012. This was an increase of 4.9%. With sales below $1 million, small businesses accounted for 5.8% and projected sales of $1.35 trillion. Three quarters of all vending machines are classified under the small category.
The industry’s largest product segments are snacks and cold drinks. These two categories are the main driving force. According to the Automat Merchandiser (AM), food sales increased at a rate exceeding 7% in 2013. Last year, cold storage machines grew at a staggering 42%. However, this growth came at the cost of shelf-stable goods.
According to the National Restaurant Association (NRA), restaurant revenues are projected to exceed $321 billion. This is a healthy sector in our economy and it is expected that suppliers will benefit from the growth.
This all shows that a company that is innovative and fast-moving can gain significant market share quickly by introducing new products to customers of vending machines/restaurant equipment.
Chef Vending will market the machines to three market segments: distributors, juice and sandwich manufacturers and end users. We will be focusing on restaurants, hotels, and equipment suppliers for our restaurant equipment business.
Considerations for Financial Planning
The company has an initial start-up cost of approximately $157,000 of which $125,000 will come from a ten year SBA loan. Short-term borrowing will provide us with an additional $2,500 and the rest will be provided by investment capital.
Our monthly breakeven is estimated to be about $93,000 per unit or 27 vending systems. We are confident that our unique vending machines and restaurant equipment will attract customers at a level well beyond this break-even. On $2.8 million in sales, we expect to make $500,000 in net profit.
1.
1 Objectives
Chef Vending’s objectives in our first year of operation are:
- You can sell 400 vending machines.
- We will install 10 vending machines directly in South Florida.
- Get $500,000 in sales with our restaurant equipment range.
We have two growth objectives for the coming years:
- Each year, we aim to grow our vending machine- and equipment-related business by 20%
- Increase revenues by 25% using our directly operated vending machine.
1.2 Mission
Chef Vending strives to be the market leader in innovative, high-quality restaurant equipment and vending machines. We will fulfill the needs of our customers by maintaining close customer relations and establishing excellent relationships. Chef Vending will secure sufficient profits from free cash flow from operations, to sustain its stability and finance future growth. We will add value to our community by maintaining a friendly, familial work environment.
Success keys 1.3
As a start up company, new to this industry, and trying to introduce new products, we need to remain focused and work hard in order to get acceptance from the marketplace. Our success is based on these key factors:
- Quality support and service, recognizing that Chef Vending’s success depends most critically on the relationships it’s able to create.
- High-quality, innovative products that will expand existing markets and open new opportunities for our customers.
- Steady, disciplined pattern of growth.
- We care about our customers and how they feel.
