CHEESECAKE DREAM Özlem Bolat Ferhan Ercengiz
Nov 01, 2014
CHEESECAKE DREAM
Özlem BolatFerhan Ercengiz
INTRODUCTİON About Cheesecake Dream Investment Opportunity Vision Mision Prices Value Proposition Business Model Competitive Analysis Product Comparison Market Size Market Assessment Café Market Swot Analysis Competition Expected Market Share Market Segmentation Survey Sales Process Organizational Chart Gantt Chart Income Table Cash Flow Exit Strategy
CHEESECAKE DREAM CheeseCake Dream is a café that serves
delicious desserts and is specialized on cheesecakes. The targeted segment is high/middle level families, students, young adults, working people and anyone who needs to relax and have joy.
INVESTMENT OPPORTUNİTY Cheesecake Dream offers 20% equity
share of its business to a partner for 0.4M TL.
The investment in Cheesecake Dream expected to have a profit potential of 4.8M TL (NPV) or in other words 12 times of its value in 5 years. This will correspond to 1208% at the NPV or annual ROI of 187%
MİSSİON We want to satisfy every single
customer that arrives to our cafe by providing special desserts and cozy environment.
VİSİON In 5 years we expect to open 5 stores
and increase our brand value to 25M TL.
PRİCES Cheesecakes – 8-15 TL Cakes – 7-10 TL Specialities – 2-15 TL Ice Cream Specials – 8-15 TL Milkshakes – 10-15 TL Hot Drinks – 4-10 TL Iced and Frozen Drinks – 8-13 TL Soft Drinks – 4-8 TL
VALUE PROPOSİTİON Customers will get the best quality of
desserts in a relaxing and enjoyable environment. They will feel special.
BUSİNESS MODEL Our business model is “service model”.
In Cheesecake Dream, we serve desserts, hot&cold beverages.
COMPETİTİVE ANALYSIS There are lots of Coffee Stores,
Traditional Cafes or Boutique Cafes that serve cheesecakes, desserts and coffee.
However we want to differentiate in the market with our special recipe cheesecakes and elegant environment.
There are some cafe's which have the similar environment but do not have special recipe cheesecakes. So we hold a niche position in cafe&dessert market.
PRODUCT COMPARISONWhen compared
to.. Advantages Disadvantages
Coffee Stores (Sbucks, Nero..)
* Specialized products* High quality service * Elegant environment
* Higher prices* Few locations
Traditional Cafes (Mado, Özsüt,
Saray..)
* Specialized products* Elegant environment
* Higher prices* Few locations
Boutique Cafes * Differentiated products -
MARKET SIZE
Cafe & Restaurant Sector in Turkey
Total Cafe & Restaurant market size for 2011 13.6 billion TL
İstanbul Cafe & Restaurant market size 7.3 billion TL
Total Cafe market size 2.7 billion TL
İstanbul Cafe market size 1.46 billion TL
Nişantaşı Cafe & Restaurant market size 192 M TL
Nişantaşı Cafe market size (Target) 38.4 M TL
Our targetted share of market size in Nişantaşı
2 M TL
• Türkiye Gıda ve İçecek Sanayi Dernekleri Federasyonu – 2011 raporu
MARKET ASSESSMENT Demand of new tastes in dessert
market. Desire of comfort and relaxation in the
stressful city. Youth’s need for trendy places.
CAFE MARKET Cafe market in Turkey is expanding and
dynamic.
There are many cafes and many more are being opened. Customers’ interest in cheesecake is increasing by time.
Creative approaches can contribute to the market and new strategies can attract more customers.
Cheesecake Dream is trying to step forward among its competitors by introducing unique tastes.
SWOT ANALYSISSTRENGTHS:
- Special recipies- Elegant and cozy environment- Growing market- High service quality
WEAKNESSES:
- Lack of extensive market know-how
- High price range- Lack of advertisement- Risk of unsustainable brand
loyalty- Difficulty of finding exclusive
chefs
OPPORTUNITIES:
- Increasing demand on different tastes
- Being in a dynamic city- Being located in elite territory
THREATS:
- High competition- Threat of new entrants
EXPECTED MARKET SHARE In 2016, Cheescake Dream aims to
reach 900 customers per day in five stores. Yearly revenue will be 18 - 22M TL.
Cheesecake Dream will have the market value of 24 - 25M TL in 2016
MARKET SEGMENTATION
SECTOR Customer well funded?Compelling reason to
buy?
Students NO NO
Working Professionals YES NO
Young Adults YES / NO NO
A Class Families YES NO
Middle Class Families NO NO
SURVEY
SURVEY
1 2 3 4 5 6 7 8 9 10 NOT SURE
0
1
2
3
4
5
6
1
2 2
3
4
5
4
1 1
2
Would you like to try new tastes?
1 2 3 4 5 6 7 8 9 10 NOT SURE
0
1
2
3
4
5
6
7
1 1
3
5
6 6
2
1
Do you think that our prices are sensible?
Only 5 people voted below 5, meaning that most people are open to taste different desserts.
Most of the people find prices sensible.
SURVEY
People would like to visit Cheesecake Dream frequently.
High percent of attendees are willing to advice Cheesecake Dream to others.
Small part of the attendees do not find Cheesecake Dream attractive enough to tell others.
1 2 3 4 5 6 7 8 9 10 NOT SURE
0
1
2
3
4
5
6
7
1
3
4
6
4
3
1
3
Would you come to our café frequently?
1 2 3 4 5 6 7 8 9 10 NOT SURE
0
1
2
3
4
5
6
3 3
5 5
3
2
4
How strong would you recomment our café?
SURVEY According to 5th question:
Customers look for lower pricesBrand value is important to themThere is some hesitation to try unknown
tastes
SALES PROCESS
ORGANİZATİONAL CHARTFerhan Ercengiz
Özlem BolatCo-founders & Owners
Özlem BolatR & D Manager
Özlem BolatSupply Chain &
Logistics Manager
Özlem BolatSales & Marketing
Manager
Ferhan ErcengizFinancial Operations
Manager
Ferhan ErcengizPurchasing Manager
Ferhan ErcengizOperations &
Personnel Manager
John FernandezMaster Chef
Hasan KayaChef
Ahmet BaltaWaiter
Neşe KuralWaitress
Leyla BozanWaitress
Ayşe KurtWaitress
Bilal KaraCleaning Staff
Mehmet TaşCleaning Staff
John FernandezMaster Chef
Hasan KayaChef
GANTT CHART
INCOME TABLE (TL)2011 2012 2013 2014 2015
Total Net Sales 2.345.1253.117.206
3.739.450
4.905.274
6.387.849
Cost of Goods Sold 770.150 927.0481.460.275
1.752.330
2.262.090
Gross Profit 1.574.9752.190.158
2.279.174
3.152.943
4.125.759
General Cost 1.058.4801.058.480
1.058.480
1.058.480
1.058.480
Replacement Cost 0 0 0 0 0
Operating Profit (EBITDA) 516.4951.131.678
1.220.694
2.094.463
3.067.279
Depreciation -45.000 -50.000 -55.000 -60.000 -65.000
Earnings Before Interest and Tax (EBIT) 471.4951.081.678
1.165.694
2.034.463
3.002.279
Financial Income/Expense 0 -19.671 162.270 326.876 616.237
Profit Before Tax 471.4951.062.008
1.327.965
2.361.339
3.618.516
Total Tax 94.299 212.402 265.593 472.268 723.703
Profit After Tax 377.196 849.6061.062.372
1.889.072
2.894.813
Depreciation 44.000 48.000 52.000 56.000 60.000
(Gross Profit)/Net Sales 67% 70% 61% 64% 65%
Profit Before Tax/Net Sales 20% 34% 36% 48% 57%
(Profit Before Tax+Depr.)/Net Sales 22% 36% 37% 49% 58%
CASH FLOW (TL)2011 2012 2013 2014 2015
EBITDA 516.495 1.131.678 1.220.694 2.094.463 3.067.279
Tax 94.299 212.402 265.593 472.268 723.703
Bank Loan 200.000 0 0 0 0
Fixed Investments 20.000 20.000 20.000 20.000 20.000
Free Cash Flow 202.196 879.606 1.097.372 1.929.072 2.939.813
Terminal Value 18.373.829
Discount Rate 1,25 1,25 1,25 1,25 1,25
Cumulated Discount Rate 1,12 1,40 1,75 2,18 2,73
Discounted Cash Flow 180.850 629.395 628.172 883.412 1.077.022
Discounted (NPV) Cumulated Cash Flow 180.850 810.245 1.438.417 2.321.829 3.398.851
NPV OF ACCUMULATED CASH (TL) 3.398.851
NPV OF TERMINAL VALUE (TL) 6.731.388
TOTAL NPV (TL) 10.130.239
DISCOUNT RATE (%) 25
EXİT STRATEGY The investor is offered three options for
exit. The first and preferable one is for the investor to buy Cheesecake Dream at the value calculated above. The second option is an IPO in İMKB, and the third one is to purchase the investor’s 20% shares by Cheesecake Dream at the book value of Cheesecake Dream.
THANK YOU!