Introduction
Chef Vending, LLC, a family business, specializes in the import of vending machines and commercial food and beverage equipment from Spain. We aim to be the first to market with innovative, high-quality vending equipment in the vending industry. We plan to establish our own vending outlets in the Southern Florida and Central Florida areas. We plan to supply innovative, high-quality equipment and participate in the $321 million food & drink industry. With the establishment of one strategic alliance with a national brand name in either of our vending lines, we expect to easily exceed our financial forecasts.
The Company
Chef Vending is committed to being the market leader in the introduction of innovative, high quality vending machines as well as restaurant equipment. We are committed to meeting the needs of all our customers through personal contact and great relationships.
Chef Vending, LLC is a Florida privately-held corporation. It maintains an office in North Miami Beach, Florida, as well as a small warehouse.
Three of the four investors in the company have full operational responsibility. Javier Palmera and Mauricio Odonez, the co-founders have extensive industry and entrepreneurial knowledge. Charles Mulligan is an experienced financial manager and operator.
The Products
Chef Vending will offer two product lines for each market. Our vending products will include our Sandwich Express machine, Fresh Orange Juice machines and our Multi-line dispenser. Our restaurant equipment products will be toasters, espresso makers, and fresh juice squeezers.
Sandwich Express, one of our innovative products, is a machine that offers functions and benefits not found in the current vending machines. This gives Chef Vending an edge over other established vendors.
In the future, we plan to expand our current line. We are currently planning to add a larger Sandwich Express, which will have a greater selection of sandwiches, as well as a more diverse product range like pizza. Additional products are still in development.
We are also interested in establishing supplier relationships with major sandwich and juice companies. This would allow Chef Vending machines to be supplied to national companies and allow them the opportunity to brand the machines with their product lines.
The Market
According to the Automatic Merchandiser magazine’s latest State of the Vending Industry Report. Revenue from U.S. Vending Consumables was $24.5 Billion last year. That is an increase of 4.9%. Small companies, with sales of less than $1 million, accounted for 5.8% of the market and had projected sales of $1.35 billion. Three quarters (75%) of all vending companies are in the small category.
The industry’s largest product segments are snacks and cold drinks. These two categories are the main driving force. According to the Automat Merchandiser (AM), food sales increased at a rate exceeding 7% in 2013. The growth in cold storage machines was even greater at 42% last year, while shelf-stable products suffered.
According to the National Restaurant Association (NRA), restaurant revenues are projected to exceed $321 billion. This is a huge and vital industry for our economy. It will be a boon to suppliers.
This all shows that a company that is innovative and fast-moving can gain significant market share quickly by introducing new products to customers of vending machines/restaurant equipment.
Chef Vending will market its machines to three distinct market segments including; distributors, branded sandwich and juice manufacturers, and end users. We will be focusing on restaurants, hotels, and equipment suppliers for our restaurant equipment business.
Financial Considerations
The initial startup cost for the company is approximately $157,000. $125,000 of that amount will be paid by a ten-year SBA loan. We will need to borrow $2,500 for short-term financing, while the remainder will come from investment capital.
Our monthly break-even point is approximately $93,000, or 27 vending machines. We expect to achieve a higher level of sales due to the attractiveness and functionality of our innovative vending machines. On $2.8 million in sales, we expect to make $500,000 in net profit.
1.
1 Objectives
Chef Vending’s objectives in our first year of operation are:
- You can sell 400 vending machines.
- Directly place 10 vending machines, that we will operate, in the South Florida area.
- We are able to achieve $500,000 sales for our restaurant equipment line.
Our growth goals for the next two years are:
- Increase our vending machine, equipment and business growth by 20% per year.
- Grow revenues by 25% in our directly operated vending machines.
1.2 Mission
Chef Vending’s goal is to be the industry leader in providing innovative, high-quality vending machines as well as restaurant equipment. We will satisfy our customers’ needs wherever possible through close customer contact and strong relationships. Chef Vending will generate enough cash flow to continue its stability and fund future growth. By providing a welcoming, family-friendly environment for our employees, we can add value to our community.
Success keys 1.3
We must focus and work hard as a start-up company that is new to the market and introduce new products. The key to our success is:
- Quality service and support, Chef Vending recognizes that Chef Vending’s success relies on the relationships it is able to build.
- Innovative, quality products that are able to both expand existing markets and create new ones for our customers.
- Steady, disciplined pattern of growth.
- Our customers and keeping them happy.
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