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 will create our own vending lines in the Southern and Central Florida regions. We plan to supply innovative, high-quality equipment and participate in the $321 million food & drink industry. We anticipate exceeding our financial forecasts due to the formation of a strategic alliance with a nationally recognized brand in one of our vending lines.
The Company
Chef Vending’s goal is to be the leading in introducing high-quality, innovative vending machines to the market. We strive to meet all of our customers’ needs through excellent customer relations and close customer contact.
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 shareholders have total operational responsibility. Javier Palmera & Mauricio Ordonez have both business and entrepreneurial experience. Charles Mulligan is an experienced financial manager and operator.
The products
Chef Vending will offer two product lines for each market. Our vending products line will include our unique Sandwich Express machine, our Fresh Orange Juice machine and our Multi-line Dispenser. Toasters, fresh juice squeezers, and espresso makers will all be part of our restaurant equipment.
Sandwich Express is one of Chef Vending’s most innovative products. It has functions and benefits that are not available in other vending machines today.
We intend to continue expanding our product line. In the immediate future, we plan to introduce a larger Sandwich Express model that will offer more variety in sandwiches as well as a wider product range, such a pizza. Other products are currently in the exploratory stage.
We are also seeking supplier relationships to large sandwich and juice manufacturers that have national brands. This will allow us to tailor our machines to their products. This would allow Chef Vending to supply machines national companies, and allow them to brand their machines with their product lines.
The Market
According to the Automatic Merchandiser magazine’s most recent State of the Vending Industry Report, revenue from U.S. vending consumable products was $24.5 billion in 2013. This is an increase of 4.9%. Market share was 5.8% for small companies that have sales of less then $1 million. This market had sales projections of $1.35billion. 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. The food category grew at a rate of 7% last year, according to the Automatic Merchandiser. The impressive growth of cold storage machines last year was 42%, which was significantly higher than the rise in shelf-stable products.
According to the National Restaurant Association (NRA), restaurant revenues are projected to exceed $321 billion. This is a large and healthy industry in our economy, and suppliers to this industry are expected to benefit from this growth.
These facts indicate that a fast-moving and innovative company that can offer enhanced products for vending machine/restaurant equipment customers will be able to gain significant market shares in a short period of time.
Chef Vending plans to market its machines in three different markets: distributors (brand sandwich and juice makers), end users, and retailers. Our restaurant equipment business will focus on hotels and restaurants as well as equipment supply companies.
Financial Considerations
The company’s initial start-up costs are approximately $157,000. $125,000 will come from an SBA loan for ten years. An additional $2,500 will be available for short-term borrowing, and the rest will come from investment capital.
Our monthly breakeven is estimated to be about $93,000 per unit or 27 vending systems. We will be able to generate a much higher sales level due to our innovative vending machine and restaurant equipment. In the first year, we anticipate generating $500,000 of net income on sales of $2.8million.
1.
1 Objectives
The following are Chef Vending’s objectives for our first year in operation:
- Rent 400 vending machines.
- We will place 10 vending machine machines in your area.
- In our restaurant equipment product line, you can achieve $500,000 in revenue.
In the two years to come, our growth goals are:
- Grow our vending machine and equipment business by 20% each year.
- Grow revenues by 25% in our directly operated vending machines.
1.2 Mission
Chef Vending is committed to being the leader in the introduction of high quality, innovative vending machines and other restaurant equipment to the marketplace. We will fulfill the needs of our customers by maintaining close customer relations and establishing excellent relationships. Chef Vending will make enough profits from its operations to finance future growth and maintain its stability. We will add value to our community by maintaining a friendly, familial work environment.
1.3 Keys to Success
As a startup company in the new industry and introducing products to the market, it is important to be focused and to work hard to gain acceptance. These are the keys to our success:
- Chef Vending is committed to providing quality support and service. We understand that the success of Chef Vending depends on the relationships it can build.
- Innovative and high quality products that can both expand existing market opportunities and create new markets for customers.
- Steady, disciplined pattern of growth.
- We care about our customers and how they feel.