David Miles

 BRIGADERIA BUSINESS PLAN     1.0 Objectives1 2.0 Mission1 3.0 Keys to Success1 4.0 Company Summary1 4.1 Company Ownership3 5.0 Products/Services3 6.0 Market Analysis Summary4 6.1 Market Segmentation6 6.2 Target Market Segment Strategy8 7.0 Competition9 7.1 Competitive Edge10 8.0 Marketing10 9.0 Sales Strategy11 10.0 Web Summary12 1.0 Objectives BRIGADERIA has established several objectives that will contribute to the Company’s future success as a pastry and coffee shop: •Establish strong relationships with pastry and coffee distributors in selected market areas. Increase sales with our excellent quality service and high differentiation. Locate the company near high pedestrian traffic areas. •Double sales by the end of the second year of operations. Start operations no later than the end of June. •Increase production and sales with additional BRIGADERIA locations. Reach sales of $400,000 a year and increase 20% each year. •Create high impact marketing campaigns to increase awareness and demand for BRIGADERIA’s products. Establish BRIGADERIA as a company that gives back to the community through charity. 2.0 Mission BRIGADERIA will provide clients with an exceptional selection of pastries and coffee that are produced with the greatest care and the highest quality natural ingredients, providing high-quality pastries in a comfortable environment for clients who seek a fun "gourmet" experience outside restaurants. BRIGADERIA values their relationships with current and future customers and vendors and is committed to honoring those relationships. The Company’s commitment to their customers, employees and distribution partners will be reflected through honest and responsible business practices, personal service and efficient delivery. The Company will also keep a friendly, fair, and creative work environment, which respects diversity, new ideas, and hard work. 3.0 Keys to Success Management understands that the following items are critical for the success of BRIGADERIA: •Establishing and maintaining working relationships and contractual agreements with clients and business partners. •Maintain superior branding and strong product promotion that conveys a story to the buying public. •Developing innovative products protected by trade secret for our consumers. •Establishing new market regions. •Improving profit margins by increasing sales while controlling operating costs. •Effectively communicating, to current and potential customers, the Company’s position as a differentiated provider of pastries and coffee. Dedication to the finest quality ingredients and "make it happen no matter what" customer service. Ongoing employee education and recognition programs. Giving back to the community. Brand development. 4.0 Company Summary BRIGADERIA The name of this fine and exquisite bakery is BRIGADERIA. It is a sole proprietorship company, with Taciana Kalili as the owner of the business. The geographic location of the company will be at 4015, Crossbill Lane, Weston, FL. The products being sold in the bakery will be various desserts, cakes, breads and beverages, the signature pastry is the brigadeiro, a specialty from Brazil. Catering and deliveries will also be available under some circumstances. Customers will love this bakery because not only is it a bakery, but it’s also a cake and coffee shop with other delicious options like our ice cream. There isn’t another pastry and coffee shop like BRIGADERIA in the US, making it a huge success. BRIGADERIA is a new organic pastry and coffee shop in Florida, the Company expects to attract business people who are looking to purchase affordable catering services for their business meetings. According to Taciana Kalili, there has been a recent significant increase in demand of healthier products, so BRIGADERIA is looking to offer wheat, gluten free, and low-calorie products that are Kosher certified, at a competitive price. Due to the change in diets of Americans, it is important that BRIGADERIA focuses on meeting the needs of its customers, whether it is by offering a variety of flavors or by specializing in healthier products. BRIGADERIA also wants to set a socially responsible example for the community by using recyclable materials and reusable cups, along with offering specified areas dedicated to proper recycling techniques. In order to make sure none of the product goes to waste, at the end of the day, BRIGADERIA will donate the entire excess product to homeless shelters in Florida. BRIGADERIA took its name from the sweet Brazilian pastry brigadeiro. The Company seeks to share Brazilian cuisine and culture with the US market. The Company provides items such as brigadeiros, muffins, cookies, pastries, bagels, and coffee, all offered with four options: normal calorie, low-calorie, wheat, and gluten free that are all Kosher certified. Coffees can be made with whole milk or skim milk, and sugar or Splenda. Other businesses that offer similar products like BRIGADERIA are companies such as Starbucks, Panera, and Finagle a Bagel. BRIGADERIA will produce the highest quality pastries including brigadeiros, cake, tarts and other pastry specialties. BRIGADERIA will make its first move into the U.S. later this year when it opens its pastry and coffee shop in a leased 20,000-square-foot building at 4015, Crossbill Lane, Weston, FL. BRIGADERIA will be located in the heart of Weston, FL next to the financial district and will attract many clients. The company will start with about seven employees making pastries and coffee. Production should start in June of 2015. In order to be able to sell pastries and coffee in the U.S., BRIGADERIA will obtain two types of certifications/licenses. The Company must obtain a Pastry and Coffee Shop License which can take anywhere from two to three months to receive and costs about $15,000. In addition, formula and label approval (COLA – Certificate of Label Approval) is required for every product imported and/or manufactured in the U.S. This will allow the Company to sell to licensed U.S. distributors. It also takes about two to three months to receive. Initially, BRIGADERIA will target their sales and marketing efforts in Weston, FL. The Company then plans to expand their efforts to California and Colorado, with expansion throughout the country to occur gradually. BRIGADERIA - Brazil BRIGADERIA - Brazil is the foreign affiliate of BRIGADERIA. BRIGADERIA - Brazil is a family-owned and operated pastry and coffee shop located in Sao Paulo, Brazil. BRIGADERIA - Brazil was founded in 2010 and is 100% owned by Taciana Kalili. BRIGADERIA - Brazil offers top quality, unique pastries, which are produced with the highest quality ingredients. BRIGADERIA - Brazil’s award winning brigadeiros have been recognized, in 2013 the Company’s products was awarded in a competition organized by Nestle for the best brigadeiros in the country and the Company is recognized as one of the most innovative companies in Brazil. BRIGADERIA - Brazil produces and sells brigadeiros, pastries, coffee, ice cream and other specialties from the highest quality ingredients. BRIGADERIA is a Brazilian Company founded by Taciana Kalili in 2010, a chain of brigadeiro stores, the most beloved sweet in Brazil. With focus on design, the Company has become in four years a reference in the segment of pastries and coffee, innovating and creating the concept of Emotional Food. BRIGADERIA is now a desired brand that serves 30,000 customers per month in its 15 stores and is preparing to grow throughout the Brazilian and international territories. The Company’s founder, Taciana Kalili, is from the Minas Gerais state of Brazil that is characterized by its comforting and artisanal cooking. She grew up around a wood stove watching and tasting the delicious recipes of her Grandmother. 4.1 Company Ownership BRIGADERIA will be registered as a Domestic for Profit Corporation in the State of Florida in June 2015. The Company’s registered address is 4015, Crossbill Lane, Weston, FL. Taciana Kalili serves as Director and President for BRIGADERIA. With over ten years of experience in brigadeiro and pastry production, Taciana Kalili creates exquisite experiences for her clients. Taciana Kalili serves as Director and President for BRIGADERIA. With over 10 years of experience in pastry cooking, she is BRIGADERIA’s Master Chef. She will supervise the company operations and management. A passionate chef, she has studied at prestigious institutions such as Le Cordon Bleu and Nestle specializing in desserts, pastries and baking. She also holds a degree in Business Administration from FMU and technical courses in design and marketing. BRIGADERIA is wholly owned by its Brazilian affiliate, BRIGADERIA – Brazil. 5.0 Products/Services BRIGADERIA strives to deliver a personalized experience and customized products to all of its customers, infusing a true “family feel” into everything they do. BRIGADERIA is an artisanal pastry and coffee shop. Everything is handmade on-site and visitors are welcomed to witness the entire production process by touring the shop. In order to maintain the quality of their products, BRIGADERIA uses: The finest raw materials, which are free from preservatives, colorings and other additives. Tried and tested secret family recipes. A unique production process that takes place entirely in the pastry and coffee shop and includes preparing the ingredients, cooking and decorating. BRIGADERIA will offer a wide range of brigadeiros and pastries to be sold in the U.S. and internationally through licensed distributors. The Company’s product range will include: Brigadeiros Pastries Beverages Ice Cream Specialties Like BRIGADERIA -Brazil, BRIGADERIA will likely sell gifts, packages and birthday and wedding presents. BRIGADERIA sells gourmet pastries coupled with exceptional customer service in a comforting environment. Customers can dine-in and watch the chef create their pastry. And every month customers can join in the fun and take a cooking class taught by a Cordon Bleu trained chef. We will also offer special promotions such as After School Brigadeiro Club. Moms will be encouraged to bring in their children for milk and brigadeiros they help prepare! Moms are encouraged to come in with friends for some relaxing time during our Tea Time. And to promote BRIGADERIA as a choice for celebrating, we will offer a large table that can be reserved for parties. 6.0 Market Analysis Summary The industry has surged ahead since the recession and outperformed the overall food service sector, driven largely by changing consumer preferences. Consumers are increasingly demanding healthy, gourmet and custom-made cuisine at an affordable price. Based on these trends, industry revenue is expected to grow at a strong rate per year on average over the five years to 2014. As operators add more stores in 2014 and consumer awareness of this relatively new segment increases within the food sector, industry revenue is expected to rise. The industry is expected to continue on a growth trajectory over the next five years as many of the same trends that have influenced the industry continue. A bakery industry snapshot from 2011 by the Center for Economic Vitality indicates that the U.S. baking industry was comprised of commercial and retail baking operations that combined to generate $33 billion in annual revenues. While there were fewer commercial bakeries, or 2,800, compared to 6,000 retail stores, the former produced 91 percent of the industry's profits. Further, those profits tended to be concentrated among the top commercial bakeries, whereas retail bakeries were more fragmented as a whole. Among the products sold to customers, bread and rolls surpassed cakes, pies and other retail bakery products combined.2 A growing albeit paradoxical trend in the bakery industry, noted by the industry profiler Report Linker, is that U.S. consumers are hungering for both healthy baked goods and comfort foods. The bakery industry has shown signs of recovery from the recession with an emphasis on products with natural and organic ingredients, as well as smaller portion sizes.3 The global baked goods industry is expected to exceed $310 billion in 2015, according to research from Global Industry Analysts. Demand for baked and pastry goods is being driven by changing lifestyles, which leaves little time to prepare meals. Busy consumers are increasingly quick to buy convenient baked snack foods such as wraps and sandwiches. 3 http://www.ibisworld.com/industry/bakery-cafes.html 2 http://smallbusiness.chron.com/bakery-industry-analysis-64831.html   3 http://www.reportlinker.com/ci02034/Bakery-and-Pastry.html   The global baked goods market has shown rapid recovery following the economic recession, recording strong growth over recent years. Factors fuelling market expansion include convenience, affordability and health benefits of baked goods products. Demand for healthier fortified baked products has also driven sales. 3 The baked goods industry, encompassing products such as bread, cereals, cakes, biscuits, pastries and scones, is well established in industrialized regions such as Western Europe and North America. Product innovation and healthier products and ingredients are fuelling market growth in these regions. Emerging markets such as Latin America, Middle/East Africa and Asia represent good market potential as western lifestyles and eating habits continue to be adopted in these regions. 3 Currently about 20,000 coffee shop businesses in the U.S., combined revenues of $10 billion in 2011. 70% of sales derives from the primary top 50 coffee shop operators such as Starbucks, Caribous, and Peet’s Coffee; with small local family owned coffee shops in competition. Gross Margin for a coffee shop is about 85%, operating income averaging 2.5% of net sales. 4 6.1 Market Segmentation Our market is divided into four different psychographics: Comfort Creatures, Celebrators, Soccer Moms, and Gourmet Wanna-bes. They represent groups of people sharing similar behavior patterns and reasons for patronizing BRIGADERIA.5 Comfort Creatures are mainly white collar workers who are driven by success and prestige yet miss homemade comfort foods of their childhood.  They may stop in on their own or bring clients in for a gourmet dessert experience.5 Celebrators are just that - people celebrating special occasions.  Birthday, anniversary, graduation, valentine's day, etc., families and loved ones will gather at BRIGADERIA over sumptuous desserts and a festive atmosphere.5 Soccer Moms actually encompasses all family members.  BRIGADERIA is a gathering place where families are welcome and feel comfortable.  "Moms" can come in for after school milk and brigadeiros with their children and relax while we pamper the little ones.  Or they can meet up with friends for our Tea Time - a little civilized time stolen in the midst of a busy day.5 Gourmet Wanna-bes watch the Food Network and easily spend $50 for the latest cookbook.  They'll be the adventuresome diners at BRIGADERIA, as well as the first to sign up for our cooking classes.5 Demand for baked goods has been changing to reflect evolving consumer lifestyles and eating habits. Satisfying both health concerns and indulgence, consumers are opting for whole grain baked goods free of trans-fats with more butter, high-quality chocolate spread and creamy icing, reports Global Industry Analysts.5 4 http://www.stephanieburnett.weebly.com/.../coffee_shop_market 5 https://sites.google.com/site/gaildoldolea/ge-325-j/business-plan 5 https://sites.google.com/site/gaildoldolea/ge-325-j/business-plan Demand for baked products promising functional and health benefits will continue to climb as consumers opt for products with low-carbohydrate, organic and natural ingredient products. Gluten-free products are one such range benefiting from rising demand from gluten-sensitive consumers. Moving forward manufacturers will likely adapt their products to remove trans fats, include more natural ingredients, and limiting the amount of additives and synthetic products used. Other innovations keeping in line with evolving consumer preferences include changes in packaging, with smaller size packs in particular proving popular.6 7 Growing consumer awareness regarding health and nutrition in the US has pushed bakeries to respond to changing demand by offering healthier products made with high-quality ingredients. There has also been a renewed interest in comfort food and eating at home, according to research from Packaged Facts. The market is forecast to record more than 25% growth in the five year period ending 2014, when it should exceed $20 billion.8 The US bread and roll market reached almost $17 billion in 2010, having recorded 3% yearly growth in the four preceding years, reports MarketLine. Industrial bread and rolls represented the segment generating the highest sales, exceeding $10 billion in 2010, and accounting for almost 61% of the overall market. Market growth is expected to accelerate to exceed a yearly rate of 3.5% between 2010 and 2015, when it should hit over $20 billion.8 6 http://www.reportlinker.com/ci02034/Bakery-and-Pastry.html 7 https://sites.google.com/site/gaildoldolea/ge-325-j/business-plan 8 http://www.reportlinker.com/ci02034/Bakery-and-Pastry.html 6.2 Target Market Segment Strategy BRIGADERIA is a new pastry and coffee shop in an increasingly competitive industry. To help BRIGADERIA stand out, Management’s strategy must appeal to their consumers’ need to be informed and educated. Management also believes that it is important to provide insightful background about the ingredients, process and inspiration found in their products to create a sense of belonging or a common bond amongst consumers who are loyal to the Company. We have specifically targeted segments of people with an appreciation for delicious desserts and a need for comfort and relaxation.  BRIGADERIA is a haven for the busy & successful who want to treat themselves to something soothing. It doesn't take a lot of time, yet it’s so rewarding.  These people will value the high quality product presented without pretension.  Our customers will also appreciate the fun and fast service - whether celebrating a birthday or stopping in for any special occasion. Clients are attracted to products with stories -- because it allows them to feel that by consuming the product they are participating in the story. And they like to use brand stories as social currency. In this way, foodie culture has infiltrated eating rituals, and though consumers don't necessarily need to know where their pastries actually come from, they do want to have a sense that they understand what they are eating. To ensure that BRIGADERIA is able to distinguish itself as an artisanal pastry and coffee shop, Management will position the Company and their products as being masterfully crafted, providing discerning clients with a meaningful gourmet experience. Management will present the BRIGADERIA family as experienced chefs that bring knowledge, and passion to meet the demand for authentic artisanal pastries. BRIGADERIA wants to present the Company as an integral part of the gourmet renaissance taking place in U.S. Management will develop a public relations effort with the goal of gaining publicity in the form of articles in local and regional media as well as reviews by noted judges and critics. Similar to gourmet food, coffee consumption is a social activity. People love to socialize while enjoying their favorite coffee and people enjoy talking about their favorite brigadeiros. 7.0 Competition The Bakery Cafes industry exhibits a medium level of market share concentration. The top four industry operators are expected to account for 69.3% of the market, which is largely due to the scale of Panera Bread Company (Panera), which accounts for a dominating 53.3% of the market. Panera is able to capture such a significant portion of the market due to its scale and spread of franchise locations. Most industry operators do not enjoy the same luxury, and Panera's annualized growth rate of 10.5% in the five years to 2014 outpaces the industry's growth rate through the same period. Consequently, market share concentration has been increasing in the five years to 2014 and this trend is expected to continue.9 While it may be true that small bakeries don't boast the profit margins of their big-time competitors, neighborhood outfits are still making an impression. Consider pastry chef Dominique Ansel's eponymous New York City bakery, which incited near-hysteria following the inspired creation of its now-signature item, the "cronut." Then there's Magnolia Bakery, also in New York City, which is largely credited with jump-starting what became a global cupcake craze. And San Francisco's Tartine Bakery & Cafe often has lines out the door on weekends.10 Another successful neighborhood bakery is Bien Cuit, a New York City shop with locations in Cobble Hill and the West Village. "I think there's always going to be a place for that kind of artisanal product that's made with more of a sense of craftsmanship and quality, above anything," Alex Copeland, the bakery's office manager, told HuffPost. "And I think there are always going to be people who not only have a heightened appreciation for that, but more means to pay for it."10 11 Indeed, prices at Bien Cuit tend to skew upward. At its West Village location, croissants are priced between $3.25 and $5.00, a salesperson said. In comparison, a croissant at the Panera location in Manhattan's Chelsea neighborhood costs only $1.89, according to a salesperson in that store.10 Panera might be the biggest threat to small-scale bakeries. As of March 2013, the chain boasts 1,673 bakery-cafes in 44 states and in Ontario, Canada, helping to secure its spot as the top-performing bakery cafe chain. In 2012, Panera enjoyed $3.7 billion in sales, according to Technomic.12 "Panera is very dominant, and [has been] the largest player in that segment for at least five years," Technomic's Tristano said. "It has really capitalized on the segment."12 For the moment, though, the superpower in the world of American coffee remains Starbucks, with revenues of more than $13bn and 10,924 locations in the US. Dunkin’ Donuts has just over 7,000 stores in the US, and is especially strong in the northeast and New England, particularly in Boston. But in terms of sales, Starbucks leaves everyone else in the dust: it has 32.8% of the US market share, more than double that of Dunkin’ Donuts, which has 16.1%.13 The war is fought on several fronts. First, geographic: Dunkin’ Donuts is traditionally based in New England but is aggressively expanding south and west. Krispy Kreme is from the South; its first attempt at expansion failed miserably, but a new one is underway. Starbucks started in Seattle, but, like McDonald’s, it is now ubiquitous, with market penetration pretty evenly spread across the US.13 9 www.wpp.com/annualreports/2009/downloads/ar09_complete.pdf 10 www.huffingtonpost.com/.../bakery-chain-industry 11 https://www.pinterest.com/pin/-/ 12 www.huffingtonpost.com/.../bakery-chain-industry 13 http://www.alternet.org/economy/coffee-wars-heat-starbucks-faces-stiff-competition Starbucks is considered 24th of the 50 most innovative companies in the world. They read their consumer preferences well and integrate them into a long-term strategy for growth and profit. They are able to introduce a lot of new and different products quickly, keeping the customers interested and motivating them to come back to try something different Ex. Seasonal flavors. They have also increased their healthier options. The App they have makes it fun for customers to use their phone to pay, as well as making it easier for them to offer free songs, games, and eBooks through a link to iTunes.14 7.1 Competitive Edge As Management considers BRIGADERIA’s competition, it is apparent that the Company has several competitive advantages that will help them establish sizable market share within the pastry and coffee industry. Our competitive edge is our unique niche in an old market.  Although restaurants, cafes, bakeries, and ice cream shops have an established position in the marketplace, none are quite like BRIGADERIA.  We are offering the customers a completely new experience and far higher quality products.  Nowhere else will clients find a professional chef preparing gourmet pastries right in front of them. The amazing popularity of the Food Network is proof of the public's new-found interest in being a spectator in the kitchen. BRIGADERIA will be competitive through continuous development of new high quality products for our clients. The products are from Brazil and will be protected under the intellectual property law by industrial secrets. The Company will develop the brand and industrial designs for the brigadeiros being a unique Brazilian pastry. Our products will be gourmet Brazilian specialties such as the brigadeiro. The company will develop and protect the trade secret, brand development and industrial design. BRIGADERIA is differentiated from its competition by its ability to deliver its products (with a minimum purchase of $50) by request of its customers, which will save customers the valuable resource of time that they would be taking away from their business, in order to get the goods.  Businesses can place an order online, with a minimum of 24 hours before the scheduled delivery time. BRIGADERIA will also have a conference room that gives businesses the opportunity to conduct a meeting for a small fee in a comfortable office-like environment, and be able to provide nourishments to the attendees. They can also reserve this room by using the online feature, and place their order in advance.  The Company will sell brigadeiros at market price so they can be accessible to our clients. Our star product, the brigadeiros, will be a unique sweet pastry from Brazil that our clients will adore. The segment is for mid to higher income clients who prefer to spend some extra money on a unique, quality and gourmet product in a nice setting. The Company will count with highly trained and skilled chefs and human resources and our secret recipe will only be known by our top Chef, Taciana Kalili, and some highly trusted team members in order for BRIGADERIA to remain the best Brazilian brigadeiros supplier in the US. 8.0 Marketing BRIGADERIA will promote word of mouth marketing. Bakeries thrive on this and what better source of trusted clients to have in and out of your bakery. Eating and eating something good will make people talk. Next thing you know, your clients have successfully marketed your product to hundreds and possibly thousands of potential customers. 14 stephanieburnett.weebly.com/.../coffee_shop_market The Company will build a marketing plan in order to achieve the marketing objective. The plan will cover items as competition, social media, press releases, advertisements, direct mail-outs, joining local and regional organizations, building a website, creating the logo, and business cards. The Company will write press releases including information about the company, its history and company values. Local newspapers and magazines will be included. BRIGADERIA will invite the press occasionally for tasting and get more promotion. The Company will give away coupons and special discounts on site and through our sales team. BRIGADERIA will donate and give free samples at community events, selected business sites and charity organizations. BRIGADERIA will develop a powerful and unified marketing strategy that is capable of building brand awareness and compels customers to adopt the brand as their personal favorite. With pastries this is as much about the flavor of the brigadeiro as it is about what the company stands for. 9.0 Sales Strategy BRIGADERIA’s sales strategy will involve contracting caterers and restaurants to offer our products. The company will offer free samples and customer rewards programs. The clients will fall in love with our products and come back to buy some more. The Company will buy advertising through various mediums such as print ads in local papers, magazines and direct mailers. We will also advertise on television and contact local news stations and volunteer to do baking segments. The Company will participate in direct mail campaigns by purchasing residential mailing lists and sending postcards with information about BRIGADERIA and coupons. The Company will branch out to baking for special events such as weddings and birthday parties. The Company will collaborate with select restaurants, such as The Cheesecake Factory, to sell our brigadeiros. The Company will offer baking and cake decorating classes which is appealing for many mothers who wish to prepare something special for their family. BRIGADERIA will create a special environment that is similar to Brazilian culture to appeal to returning customers. It will be cozy and attractive to keep customers in the store enjoying their meal while they take a moment to relax. There will be warm décor with reading material and appealing music. The Company will set up a rewards program to earn free items and other prizes. We will establish a competitive price that will appeal to our clients. The company will develop intellectual property and will have monopoly protection differentiated by a trade secret, its processes and gourmet recipes, just as industrial designs and lastly, with market positioning. 10.0 Web Summary Management will have a website developed for BRIGADERIA. The site will likely share similar branding, graphics and copy with BRIGADERIA - Brazil’s website: http://www.brigaderia.com.br The site will provide visitors with information about the brand, the Company’s rich history in the pastry industry and information regarding the Company’s products with pictures. The site will also provide visitors with information about where to purchase their products. BRIGADERIA will also leverage the Company’s presence on Facebook and other social media sites. The Company’s Facebook page provides BRIGADERIA with a vehicle to discuss new products, special events and activities and causes the Company supports. This also allows people to become fans of the brand. Management will use this fan base and others like it to understand where their existing and future customers live and how they enjoy their favorite BRIGADERIA products. The Company’s website will feature an active and maintained blog. Where social media like Facebook offers more conversation opportunities, the Company’s blog will be able to provide updates and a behind-the-scenes look at the art of brigadeiros. Posts made to the blog will be shared with followers on social media sites and are intended to provide cross-promotional opportunities.