Executive Summary: Ali’s Mobile Food Service is a business concept which is new and also unique and focuses on revenue streams from two business ideas that could be carried out using one delivery method. The focus here is on two areas of business – a restaurant within a bus and food delivery services that could be used as a means of business diversification and decreases risks associated with a new venture.
Although the business idea is still at its conceptual stage, some preliminary work has been done and Ali’s Mobile Food Service has been registered as an independent travel and hospitality service and initial investments of 50,000 AUD have already been made. Ali’s Mobile Food Service (Ali’s MFS) is an innovative food service idea and business concept that will provide and deliver food at homes and also have an in-built mobile restaurant for individuals who are unable to visit restaurants situated far away from their homes.
Ali’s Mobile Food Service will provide food services in a bus complete with restaurant like facilities including seating area and menu services, wine services and cuisines such as Oriental, African, Continental, English, American, Australian etc. Thus the targeted customers are old people although young people who want parties for special occasions could also be potential customers.
There is a lack of instant food services that serves takeaway and restaurant purposes together and this Mobile food service seeks to alleviate or close a gap in the market as it brings a wide range of food at a person’s doorstep so individuals suffering from disability or people who are too old to visit restaurants can take advantage of this service. Although restaurant services will be particularly feasible for occasions, takeaway services and food delivered at homes could compensate for early losses on restaurant service if any.
The benefit of the idea is that it is clearly an innovative new idea and from young students and professionals to older aged people everyone can take advantage of such a service and enjoy good meals in the mobile restaurant. At this time, this is just a business concept and investments and aggressive advertising could make this a commercial success. The market for such service is quite big and there is an increase in turnover within the retail food sector of Australia.
According to Australian Food Statistics, 2006, ‘In 2005-06, retail turnover in the food and liquor sector increased by 6. 1 per cent to $97. 4 billion. This result exceeded the 4. 3 per cent rise in total retail turnover in 2005-06, and thus slightly increased food and liquor’s historical share of total retail turnover to around 46. 5 per cent. A number of factors contributed to the rise in food and liquor turnover in 2005-06’ (DAFF, 2006). So it is seen that in the last 2 years there has been a growth in the food service market within Australia.
According to Euromonitor’s Consumer Foodservice in Australia report there is an increase in profits and growth of takeaway, fast food and cafe, bars in Australia and this is given as follows – ‘In 2006, cafes/bars, fast food and 100% home delivery/takeaway experienced the greatest increase in current value growth. Many cafes/bars expanded their menus by offering light meals, such sandwiches, wraps and salads, in addition to the usual coffee and tea. Consumers, therefore, found it more convenient to arrange meeting up at these venues as it allowed consumers to stay longer after their meals and
over coffee. Fast food and 100% home delivery/takeaway became popular as they provided consumers with the convenience and comfort of dining at home. In addition, many fast food and 100% home delivery/takeaways offered healthier menu choices’. These studies and reports show that the market is growing steadily over the last few years and thus the investment and business initiative is expected to be highly profitable. Considering that many aged individuals stay at home and yet are incapable of cooking their own meals, this could be a helpful service for the aged as well.
Considering In the past 2 years, home delivery and takeaway services have become increasingly popular in major Australian cities (Euromonitor and DAFF, 2006/2007 reports). Thus Ali’s Mobile Food Service thus has a commercial prospect. The customers that we really seek are aged people above 65 years of age who will benefit from these services, especially the takeaway home delivery services. Young professional too busy to cook could also be potential customers for home food delivery.
Students and youngsters looking to party could use the mobile restaurant service. Considering that the total set up costs would be around 500,000 AUD, an initial investment of 200,000 AUD from a pre-seed investor could be sought and we also intend to apply for a loan. Profits of up to 200,000 AUD per month could be generated by the company within two years of business and 10% of the share of profits could be derived by the investor. The investor’s decision is sought considering realistic profit outlook and expectations. Memorandum Purpose.
This Information Memorandum will bring out the benefits, advantages and conceptualization of a business idea related to a mobile food service that would serve the dual purpose of takeaway and home food delivery services as well as a mobile multi-cuisine restaurant. The commercialization of this business concept is only possible with appropriate investments and a pre-seed business investor’s cooperation and decision is sought in this regard. The benefits of this service as well as the royalty structure, the profits expected and the current market trends showing increase growth in food service industry will be presented here.
This service could be considered unique as from an international perspective, this sort of service does not exist or has not become very popular either in Australia or aborad. Although takeaway home delivery services do exist and there are restaurants in cruise ships and some mobile vehicles, etc, the idea of having a full restaurant for the dual purpose of touring and dinner could be quite unique. Also providing multi cuisine restaurant services to older people or young professional and food delivery at home could be considered unique.
Although there are some mobile food services in some parts of the world, the idea of a takeaway and mobile multi cuisine restaurant that shows the sights and sounds of the city would be quite unique and especially suited for special occasions. The mobile food service could be a delivery take away service cum a restaurant although pre-orders/bookings for restaurants would be necessary. However people can also place orders from the menu offered. Ali’s mobile food service is designed for people who want the benefits of takeaway services and can also choose a selection of food from a wide variety of cuisines.
The Ali’s Mobile Food Service could be called by phone, fax, email or food can be bought directly without pre-order when the Ali’s Mobile Food Service van visits the customer neighbourhoods and localities. Considering the potential market for such an idea, the investor could be involved in the commercialization through investing 1/3 rd of the set up costs which would be 200,000 AUD. Market Analysis Market study of consumer food services shows that takeaway and delivery services do have precedence over regular dining as many young professionals and busy individuals prefer to order food delivery services within the comfort of their own homes.
However these takeaway services are limited in their opportunity to provide any kind of real ambience and there is a need to integrate fine dining with takeaways. Ali’s mobile service intend to close the gap that exists in consumer food service in which takeaway and home food delivery services are strictly separate from any kind of dining experience. With the concept of a mobile restaurant within a bus, takeaways of different cuisines could be arranged along with fine dining inside the bus while touring the city.
This is expected to be an innovative service and being different from the existing takeaway services or restaurant services, this can attract many potential customers. Interviews with some potential customers have revealed that such a business concept will be a welcome addition to any consumer food service initiative. Service Ali’s Mobile Food Service will provide food services in a bus complete with restaurant like facilities including seating area and menu services, wine services and cuisines such as Oriental, African, Continental, English, American, Australian etc.
As the van passes with its food services across the neighbourhoods, young professionals as well as old people who may not have the time or opportunity to visit restaurants are encouraged to use the services and taste food of different parts of the world according to their preferences. The service has not yet been launched and is still a concept and in the initial stages of making it to a business plan. For the initial launch 1-2 vans have to be ordered with sufficient decoration to make them look like pleasant inbuilt mobile restaurants.
Since the Ali’s Mobile Food Service will be a travelling service as well people will be encouraged to join the Ali’s mobile restaurants for a tour across the city and this will integrate a touring opportunity along with having a dining experience and will be specifically beneficial for parties and special occasions and also for tourists. The available resources we have would be market trends and studies on consumer food services in the last few years.
Studies on food services required within specific localities and surveys were conducted and responses taken from professionals, older people and students who are incapable of cooking due to time or physical constraints. Most responses have been positive from professionals and elderly who were quite curious about a mobile restaurant offering cuisines from around the world. Many disabled individuals have also shown interest in the project as they are incapable of actually visiting many different restaurants and they can get all the cuisines in one restaurant and also visit important places within the city while on the mobile restaurant.
This service is targeted as especially good for birthdays and anniversaries and elderly people incapable of travelling long distances could benefit from such Ali’s mobile restaurants when they can celebrate their anniversary inside a restaurant while imbibing views of night lights in the city. The clients for this sort of service are thus people of all age groups although young people, professionals, students and elderly would especially benefit from the service. Team Managing Director – Ashik Ali– Mr.
A. Ali has been in the food industry as a manager of a five star hotel and restaurant for more than 15 years. He has a BA in food and nutrition studies, and an MBA in hotel management. Mr. A. Ali has also been recognised as a food expert and has been interviewed on radio and local television in Australia. However this is his first independent venture after working as manager and expert in the food and hospitality industry for 15 years. Assistant Director – Shahzad Ali – Mr. S.
Ali has been educated in management sciences and has Bachelors in management and a diploma in hotel and restaurant studies. Previously he has worked for a travel company and also as a restaurant assistant manager for a major pizza company for 5 years. Secretary and Accountant – Sofia Ali – Ms Ali worked as an assistant secretary and treasurer for a travel and tours company and has a BA in accountancy. She is also trained as a secretary and has previously worked in hospitality and travel industries as well as in restaurants and hotels and has more than 10 years of experience in the field.
The core competences in the project thus involves experience in food services, Mr Ashik Ali will be responsible for overlooking the entire business from its conception. Mr. Shazad Ali is responsible for the mobile restaurant section including the decoration and renovation of mobile units. Miss Sofia Ali will be responsible for financials as well as funding and investment management issues. Other management professional will be employed gradually. Target Market The Market possibilities are steady with growth of takeaway and home food delivery services in Australia.
Professional reports on consumer food services in Australia show that chain food outlets and consumer food services have expanded rapidly in recent years (Euromonitor, 2007). This allowed for lower operating costs and increased profits for food service owners and managers. This trend could be tapped and a new approach to consumer food services will be able to increase market potential even further by above 10% and coupled with lowered operating costs and high demands of such services, this could be very successful and bring 100% profits over few years.
The target market here will be within the major cities of NSW and the primary customers for the takeaway services are expected to be older people who stay at home due to illness/old age/ disability. However for the restaurant service, young professionals and youngster or students who want to have parties inside a bus are expected to be major customers. Also the cuisines from different parts of the world would be an attractive option for trying out the service as Australia is growing with New Migrants. For mobile service units, mobile pizza and takeaway services are already present across the world as in UK and US.
A full mobile restaurant is present in UK, India, US and also in Brisbane, Australia. However the concept is not yet very popular and a chain of such mobile units could be used for popularizing the business concept. The realization of commercialization will be through aggressive advertising on print media and internet as also using banners and hoardings or leaflets. Having the necessary resources and infrastructure such as the well set mobile units as well as the employees and management personnel would be essential along with requisite funds and investment.
When the funds become available, advertising of the concept will become important. Thus some necessary measures include attaining the license, ordering and buying the mobile units, attending to the restructuring of these units, advertising the concept, arranging the employees and personnel and launching the service in a locality of a region. Expansion of the services will be sought later. Competition The competition is present as mobile food services already exist in the US and UK although expansion of such services by the owners to Australia are not expected.
This could be innovative as no such services that blend takeaway with a mobile restaurant exist within the region. Although takeaway services are provided by many food stores and restaurants, Ali’s mobile food service also serving customers who want to have a restaurant experience within a bus would be a new and innovative idea. A food service such as this is thus very effective, new and efficient for all kinds of customers who may want to enjoy the sights at night, want to enjoy a meal while touring the city or want to enjoy many cuisines within the comfort of their own homes and on a bus.
The competition offered by takeaway services and restaurants is present but these services are not of this similar type so no great competition is provided or expected in this. This service could in fact provide competition and challenge to traditional restaurants and takeaway services. Financial analysis The costs of setting up this service would be quite high as the initial investments will have to include buying the 10 buses or mobile units and refurnishing and restructuring them. The total costs for setting up the buses and redecorating and reconstructing these will be around 300,000 AUD.
Complete launching and set up costs of this service will be at 500,000 AUD. An investment requirement of 500,000 AUD could be projected and loans are expected to provide 200,000 AUD. The projected profits from the investment would be at 200,000 AUD per month so a return on investments would be expected within the next 2-3 years by 2009. The loan will cover 1/3rd of the expenses and set up costs and the investor’s contribution of 200,000 AUD will add to the effort. Another 100,000 AUD would be sought from other sponsors with some company contribution as well.
The company is now about to be launched so the business starts from scratch although sponsors and loans will be sought as well. The investor is expected to get his return on investments within 3 years by end of 2010. The total sales of takeaway food services in Australia touched $97. 4 billion in the last financial year (DAFF, 2006) and thus a large potential for this sort of service exist in the near future. At least . 10% of the market share would mean a turnover of over 100 million in a year. We are optimistic about our service once we can enter and establish a firm foothold in the consumer food service industry.
Costs 2007-2010 Set-up costs Advertising costs Operating Costs (pm) Employee Salary (pm) Earnings Expected (pm) Profits expected (pm) 350,000 AUD 150,000 AUD 200,000 AUD 500,000 AUD 1,000,000 AUD 250,000 AUD The service here could be extended as this represents a blend between two business concepts and one can be used to compensate losses if any from the other. The integrated restaurant cum takeaway service within a touring bus could also attractive within its innovative use and concept. Intellectual Property.
Patent protection for trademark Ali’s Mobile Food Services (AFS) will be sought.
Recommendations for Action Hiring managers and chefs, other employees Filing for licensing application for restaurant service Approaching investors and banks Collecting or arranging funds/investments Filing patent application for trademark – AFS Endnotes: Retail food market in Australia from DAFF 2006 document http://www. daff. gov. au/__data/assets/pdf_file/0007/196081/afs-2006. pdf Consumer Foodservice in Australia, Euromonitor 2007 from http://www. euromonitor.
com/Consumer_Foodservice_in_Australia Appendix I – Stage 1 Mobile units will have to be ordered and will require sufficient decoration and renovation as well as reconstruction to fit in a mobile kitchen, toilet for the staff and a full restaurant in each of these vans along with a counter for selling and distributing the food. Stage 2 The prices will be kept comparatively low when services in a restaurant or hotel is considered and the mobile vans can also cater to parties as guests can be catered on Ali’s mobile restaurants along with sightseeing facilities across the city.
Music and live musicians can also be arranged for special occasions such as birthdays. Stage 3 An online presence of the company and branding needs will also have to be considered with proper business logo, motto and website. Ali’s Mobile Food Service could be sold as brand name AMFS with a colourful website and a motto stating ‘Eat on’ or ‘Mobile treats here and now’. The website would be especially useful for placing orders or for booking a van during occasions and any requests for special cuisines, wines or live music can also be made through online booking form.
Appendix 2 – Preliminary SWOT Analysis STRENGTHS WEAKNESSES OPPORTUNITIES Ali’s Mobile Service could meet the needs of all who need a takeaway and home delivery service Potential growing and upbeat market Can develop a brand image Quite new and innovative integrating takeaway and restaurant services along with touring facilities The concept is not completely tested and defined Risks could be unexpected. THREAT Less revenue in the initial months due to slow acceptance of the concept Lot of investments and initial funds and hard work necessary to make the project idea a success.
Appendix 3 – Initial survey with five potential customers Do you think a mobile restaurant service along with a home food delivery service would be a good idea? – Yes (all 5 positive response) Would you want to book a mobile restaurant in a bus during special occasions such as anniversaries and birthdays and also tour the city? – Yes (all 5 positive responses) Do you want to enjoy many different cuisines within the comfort of your home or within a mobile restaurant that will pick you up from your doorstep? Yes (all 5 positive responses).
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