fastceviche final presentation patricia silva javier verme november 2006 baen 580b

FastCeviche

Final Presentation

Patricia SilvaJavier Verme

November 2006BAEN 580B

The Project Restaurant Chain Peru Specialized in Ceviche Fast Food concept

Ceviche 1 of the 3 favourite dishes “In the same way Americans eat

hamburgers, Peruvians eat Ceviche” (Acurio, 2006)

Characteristics Cold fish salad Effect of key lime on fish

The Problem Top priorities of potential customer

Cleanliness & Freshness

Price (S/.)25191510

The Problem Available options

Price (S/.)

Cleanliness & Freshness

251910

OpportunityA

B

15C

D

The Problem Why?

Business Model of traditional cevicherias

Food Suppliers Kitchen Restaurant Customers

Food Suppliers Kitchen Restaurant Customers

The Solution FastCeviche’s Business model

Opportunity

Food Suppliers Kitchen Restaurant

Restaurant

Restaurant

Customers

Customers

Customers

DeliveryFood Suppliers Kitchen Restaurant Customers

Food Suppliers Kitchen Restaurant Customers

ServingArea

Small Kitchen

Customer Area

The Restaurant

Cold / Raw area

Warm / cooked area

Working table

Pans

The KitchenCentralized KitchenSmall Kitchen

The Market

District Restaurants Cevicherias Fast Food

La Molina 35 8 4

Surco 83 14 12

San Isidro 101 10 10

Miraflores 156 18 12

TOTAL 375 50 38

The Market Demand estimated by experts 40-250 Capacity

15 seats / ½ hr x 5 hrs = 150 / day

TARGET PER RESTAURANT

50 customers / day achieved in the 6th month

Rapid expansion

Financials - Income

Before Start 1st Semester 2nd Semester Year 1 Year 2Net Sales 33,413$ 151,427$ 184,840$ 341,244$ Gross Margin 17,457$ 79,113$ 96,570$ 178,284$ Operating Margin 2,581-$ 16,605-$ 24,705$ 8,101$ 69,468$ Net Income 2,581-$ 16,605-$ 22,969$ 6,364$ 48,627$

Income Statement Forecast US$Fast Ceviche

Concept Year 2 %Net Sales 341,244$ 100.0%Gross Margin 178,284$ 52.2%Operating Margin 69,468$ 20.4%Net Income 48,627$ 14.3%

Total Investment 75,857$

Sensitivity Analysis

% Net Profits-25% 55,833$ -20% 54,392$ -15% 52,951$ -10% 51,510$ -5% 50,068$ 0% 48,627$ 5% 47,186$

10% 45,745$ 15% 44,304$ 20% 42,863$ 25% 41,422$

170% 1,696-$

Labour37.8% of the Fixed Cost

Sensitivity Analysis

% Net Profits-50% 59,964$ -40% 57,697$ -30% 55,429$ -20% 53,162$ -10% 50,895$

0% 48,627$ 10% 46,360$ 20% 44,093$ 30% 41,825$ 40% 39,558$ 50% 37,291$

200% 1,791-$

Rent32.7% of the fixed cost

% Net Profits-25% 55,833$ -20% 54,392$ -15% 52,951$ -10% 51,510$ -5% 50,068$ 0% 48,627$ 5% 47,186$

10% 45,745$ 15% 44,304$ 20% 42,863$ 25% 41,422$

170% 1,696-$

Labour37.8% of the Fixed Cost

Sensitivity Analysis

% Net Profits-50% 59,964$ -40% 57,697$ -30% 55,429$ -20% 53,162$ -10% 50,895$

0% 48,627$ 10% 46,360$ 20% 44,093$ 30% 41,825$ 40% 39,558$ 50% 37,291$

200% 1,791-$

Rent32.7% of the fixed cost

% Net Profits -25% 66,540$ -20% 62,957$ -15% 59,375$ -10% 55,792$ -5% 52,210$ 0% 48,627$ 5% 45,045$

10% 41,462$ 15% 37,880$ 20% 34,297$ 25% 30,715$ 70% 2,182-$

Fish Cost75% of the Variable Cost

% Net Profits-25% 55,833$ -20% 54,392$ -15% 52,951$ -10% 51,510$ -5% 50,068$ 0% 48,627$ 5% 47,186$

10% 45,745$ 15% 44,304$ 20% 42,863$ 25% 41,422$

170% 1,696-$

Labour37.8% of the Fixed Cost

Sensitivity Analysis

% # Profits-40% 30 1,846-$ -30% 35 11,188$ -20% 40 23,668$ -10% 45 36,147$

0% 50 48,627$ 10% 55 61,107$ 20% 60 73,587$ 30% 65 86,067$ 40% 70 98,547$ 50% 75 111,027$ 60% 80 123,506$

200% 150 298,225$

Number of CustomersGoal: 50 Customers per Day

% # Profits-40% 30 1,846-$ -30% 35 11,188$ -20% 40 23,668$ -10% 45 36,147$

0% 50 48,627$ 10% 55 61,107$ 20% 60 73,587$ 30% 65 86,067$ 40% 70 98,547$ 50% 75 111,027$ 60% 80 123,506$

200% 150 298,225$

Number of CustomersGoal: 50 Customers per Day

% Net Profits -25% 15,843-$ -20% 853$ -15% 12,797$ -10% 24,740$ -5% 36,684$ 0% 48,627$ 5% 60,571$

10% 72,514$ 15% 84,458$ 20% 96,401$ 25% 108,345$ 30% 120,288$

Price ChangeAverage Price S/. 15.2

Sensitivity Analysis

Cash Flow Analysis

4,491 3,116

37,02430,001

-20,367

-72,740

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

0 1 2 3 4 5 6 7 8 9 10 11 12

Month

US $

Real cash flow Zero Investment

Investment in3 New Restaurants

Total InvestmentUS$ 75,587

Conclusions New business model achieving

economies of scale Good price-cleanliness relationship Recover investment: 2.5 years Potential for expansion

Q & A

If you visit Peru, try ceviche at FastCeviche…