Presentation

Local Root

The Sustainable and

Organic Cafe

L R

Vision Our mission and vision is based on the following seven core values of our business:

1. Our Planet: Our planet earth, its resources, and our environment are not expendable. We want to save the world and make money doing it. This business aims to develop a model of community market which brings delicious, local, organically raised products to the eager public in a way that will enhance quality of life and be sustained for decades to come.

2. Our Products and Services: Our products and services will be based on local sourcing, organic, sustainable raising of food. We will not compromise our integrity in order to market to the lowest common denominator and addictions of society.

3. Our Employees: Our goal is to provide meaningful, varied, and challenging work to all employees. The happiness and retention of employees is of the utmost importance in establishing the business’ goal of becoming a community anchor.

4. Customer Service: All members of the team will be focused on customer service, satisfaction, and excitement about our products, services, and mission. Customers fund the business and are the boss.

5. Profit and Growth: All business activities and decisions, in both outlaying capital and generating incoming cash flow, shall focus on generating the greatest profit margins possible, building and maintaining investor value.

6. Community: The Market will not just serve as a retail storefront, but also a center of the community. We will offer outreach programs, classes, group meetings, artist promotion, and other services that prove valuable to the community.

7. Creativity: Our products and services must never remain static. We will always be applying new ideas to our menu, finding new and exciting products, and innovating all aspects of the business.

8. Honesty and integrity in pursuit of the Mission: In both our public relations and internal behavior, we shall never compromise the integrity of this mission be it through laziness, apathy, greed, or any other reason.

Management and Talent Main Investor: Daniel Greenwald (MSE Biomedical Engineering)

After studying and receiving his MSE in Biomedical Engineering at the University of Michigan, Daniel sought to make a positive difference in the field of teaching rather than cash in on his rigorous degree. Finding the bureaucratic restrains of public education limiting his positive impact, he moved to free enterprise and entrepreneurship and has worked as an investor for the past year and a half. After generating capital from trading in the public markets, he purchased his own farmland and started an organic farm with his family. He now finds himself with the unique opportunity of bringing local, organic, and gourmet food to the Chicago community, finally helping to save the world and build an ethical and courageous business.

Chef: Isaac Weliver (The Cooking and Hospitality Institute of Chicago), Isaac has had a wide range of food-service and start up experiences spanning the United States and recently Latin

America. During his time in Costa Rica he realized that food traveled from the farm to the table in a very holistic way. At Rancho Margot, a sustainable resort, meals were prepared from ingredients grown on the property; vegetables were harvested regularly, and livestock was brought quickly from green open fields to market. Isaac then brought his passion for sustainable, local food sourcing with him to Essence Arenal, a Backpackers & Travelers Retreat, where he built the restaurant portion of the business. Here, fresh milk was carried down the mountain daily, bananas harvested from the jungle by machete, and drinks created with Lemons which guests helped to pick. Chef Isaac created thematic dinners, along with the guided participation of his international guests to overwhelming success. (http://www.tripadvisor.com/Hotel_Review-g1075684-d1443406-Reviews-Essence_Arenal_Boutique_Hostel-El_Castillo_Province_of_Alajuela.html) Time spent in these holistic food environments caused Isaac to rethink the conventional methods used in the US Food Industry. After working briefly with the organic food distributor Zullos in Chicago, he comes to our project focused on seasonal, hormone/pesticide free, local foods. His mission is to help bring sustainability into Chicago’s food system by strengthening our connections to our local resources, tapping his strong relationships with local farmers and distributors, and delivering delicious gourmet food.

Baker: Yale Cohen (Head Baker Whole Foods Flagship Store) Yale has worked in the retail food industry for eleven years. He started working with Baskin Robbins and then joined Whole

Foods shortly thereafter. In his entry level position, he worked in the prepared food department as a chef and customer specialist. He then moved to the bakery, creating the wide array of fresh bread every day for Whole Foods. When the new flagship Whole Foods opened in Lincoln Park, he was given a promotion and placed in the Head Baker position there. Having worked in that position for three years, he is looking for more exciting opportunities to utilize his talent and work for something he believes in. He is excited for the opportunity to use local, organic materials to bring the smells and tastes of fresh bread to our project.

Business Plan Outline • Concept

• All products locally sourced or

organic • Trained and motivated staff to

deliver high quality products and service quickly (McDonalds/Subway)

• Active sustainability initiatives • Organic Pomme Frits and

gourmet sandwiches • Location

• Affluent and high foot traffic • High Visability • Loop or Streeterville • Symbiotic nearby business

• Layout • 1500-2500 square feet • 1000 square feet of seating,

open kitchen, deli/gourmet display cases, barista, and specialty grocery

Ten Business Assets Isaac’s 12 years in the food industry, including fast service

Yale’s 10 years in food industry, 4 as head baker at Whole Foods

Significant startup capital An extensive network offering help from Restaurant

Entrepreneurs to Business Valuation to Investment Analysis Farm contacts, suppliers, and letters of intent

McDonalds Operations Manuals Extensive catering client list and financial data Business plan based on innovation blended with detailed

operational plans combined with flexibility (Soft Open) Youthful idealism and strong belief in future success

Zero waste systems to drive food costs to below 10%

Ten Business Innovations Burgers and Fries, but also gourmet sandwiches

Local, not just organic: visit producers, ensure quality, reduce footprint, reduce cost (local dirt)

Sustainable, not just organic: closed circle of production Selling our compost and waste (they pay us) 24 hour kitchen use. Utilize other company waste for profit

(stock production)

Embrace paper saving technology: Digital menu, farm webcams, Recycling, Waste, and Compost tracking and reporting

LEED certified buildout and reclaimed materials App technology to track customers and offer rewards

Thorough employee training, incentive to add skills Build, Measure, Adapt

Why we will succeed

=

+

+

Fast

Market Analysis Example

Hannahs Bretzel:

3000 square foot location

20-140 customers per hour

Average ticket $12.50

$750/hour average

$9000/day

$2.7 million/year

Market Research

0

20

40

60

80

100

120

140

160

0

200

400

600

800

1000

1200

1400

1600

1800

Hannahs August Weekday

$/hr

Cust/hr

2 per. Mov. Avg. ($/hr)

Market Research

0

20

40

60

80

100

120

140

160

180

200

0

200

400

600

800

1000

1200

1400

1600

7:3

1

7:4

4

7:5

8

8:1

4

8:2

8

8:4

4

8:5

9

9:0

4

10:0

0

11:5

0

12:0

5

12:2

0

12:3

5

12:5

0

12:5

7

1:3

0

2:3

0

2:4

4

3:1

5

3:4

5

4:0

9

4:4

5

5:3

6

5:5

2

6:0

8

Corner Bakery August Weekday

$/hr

Cust/hr

2 per. Mov. Avg. ($/hr)

At this Location year one

0

5

10

15

20

25

30

35

40

45

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

24 HR Clock

McClurg Summer Weekday

$/hr

Cst/hr

Profit and Growth

-$500

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Initial Startup

Running Costs

Revenue

Profit

(Projections in Thousands)

Return on Investment (ROI)

Year one

Startup Costs: $220k

Expenses: $560k

Revenue: $680k

ROI year one: 121%

Year two

Expenses: $800k

Revenue: $1.3million

ROI year two: 165%

Business Valuation Initial Capital of $270,000

Forward Earnings at $500,000 P/E ratio at 3

Current Business value: $1,500,000 $150,000 per 10% share

Talent Sweat Equity 40% $270k for 60% of business

45k for 10% of business

Business value after establishment of revenue for two years (projected): $6 million (P/E of 5) $300,000 per 5% share

Beyond? $$$ per share?

5 Year Forward Projections

-$1,000,000.00

-$500,000.00

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

$4,500,000.00

$5,000,000.00

$5,500,000.00

$6,000,000.00M

arc

h-1

2

Ma

y-1

2

Ju

ly-1

2

Se

pte

mb

er-

12

No

ve

mb

er-

12

Ja

nu

ary

-13

Ma

rch

-13

Ma

y-1

3

Ju

ly-1

3

Se

pte

mb

er-

13

No

ve

mb

er-

13

Ja

nu

ary

-14

Ma

rch

-14

Ma

y-1

4

Ju

ly-1

4

Se

pte

mb

er-

14

No

ve

mb

er-

14

Ja

nu

ary

-15

Ma

rch

-15

Ma

y-1

5

Ju

ly-1

5

Se

pte

mb

er-

15

No

ve

mb

er-

15

Ja

nu

ary

-16

Ma

rch

-16

Ma

y-1

6

Ju

ly-1

6

Se

pte

mb

er-

16

No

ve

mb

er-

16

Ja

nu

ary

-17

Worst

Mid

Best

5 Year Projections With

Catering

-$1,500,000.00

-$1,000,000.00

-$500,000.00

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$3,500,000.00

$4,000,000.00

$4,500,000.00

$5,000,000.00

$5,500,000.00

$6,000,000.00

$6,500,000.00

$7,000,000.00

Ma

rch

-12

Ma

y-1

2

Ju

ly-1

2

Se

pte

mb

er-

12

No

ve

mb

er-

12

Ja

nu

ary

-13

Ma

rch

-13

Ma

y-1

3

Ju

ly-1

3

Se

pte

mb

er-

13

No

ve

mb

er-

13

Ja

nu

ary

-14

Ma

rch

-14

Ma

y-1

4

Ju

ly-1

4

Se

pte

mb

er-

14

No

ve

mb

er-

14

Ja

nu

ary

-15

Ma

rch

-15

Ma

y-1

5

Ju

ly-1

5

Se

pte

mb

er-

15

No

ve

mb

er-

15

Ja

nu

ary

-16

Ma

rch

-16

Ma

y-1

6

Ju

ly-1

6

Se

pte

mb

er-

16

No

ve

mb

er-

16

Ja

nu

ary

-17

Worst

Mid

Best

Monthly Profit Projections

-$50,000.00

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

Ma

rch

-12

Ma

y-1

2

Ju

ly-1

2

Se

pte

mb

er-

12

No

ve

mb

er-

12

Ja

nu

ary

-13

Ma

rch

-13

Ma

y-1

3

Ju

ly-1

3

Se

pte

mb

er-

13

No

ve

mb

er-

13

Ja

nu

ary

-14

Ma

rch

-14

Ma

y-1

4

Ju

ly-1

4

Se

pte

mb

er-

14

No

ve

mb

er-

14

Ja

nu

ary

-15

Ma

rch

-15

Ma

y-1

5

Ju

ly-1

5

Se

pte

mb

er-

15

No

ve

mb

er-

15

Ja

nu

ary

-16

Ma

rch

-16

Ma

y-1

6

Ju

ly-1

6

Se

pte

mb

er-

16

No

ve

mb

er-

16

Ja

nu

ary

-17

Ma

rch

-17

Worst

Mid

Best