Döner 2.0 – a reinvention. (business plan)

A brief explanation

A short story from Berlin…

Eating Do¨ner is integrated in everybody’s daily life. There are so many it is unbelievable. A variety that is mind blowing. I never thought about explaining this phenomenon because I got used to it but you have to understand what exactly is happening over there. During working and socializing I got to know locals, tourists, recently moved, young and old, muslims, germans, asians and so on. Every single person I know in Berlin is eating Do¨ner at least 2 times a week, naturally. I haven’t heard about them going to a famous fast food brand, at all. Personally, I have got 5 favorite Do¨ner places in Berlin. Each entirely different in terms of taste, variety and fundamental unique. As fancy as Berlin nowadays is, the expectancy of certain quality standards is extremely high. I’d never regret eating Do¨ner. There should be no reason for.

Furthermore it is fun to go out, meet friends and eat together in the absence of stressing each other out with cooking or doing the dishes. Nobody likes eating alone and anybody (should) like to share his time outside with friends.

Flatbread filled with grilled meat and chosen vegetables for 3€. A completely satisfying meal within 5 minutes.
If you forget the stereotypes in your mind, can you imagine the brilliancy?

Back to Groningen.

No variety, no (good) taste, the quality is miserable.
When I moved here I tried the 5 best recommended Do¨ner in Groningen. I payed in average 4,50 € for something I didn’t even (never) finish. I understand its reputation. I can imagine that being drunk, nobody minds. But being sober, why would I pay for a oozy, greasy “snack” whose only taste I can identify is its garlic sauce and doesn’t satisfy me hunger? Without evidence I won’t talk about the quality of the meat, but my longtime experience doubts if it is even careless and irresponsible to sell this.

The reason why we start a Do¨ner business, is because we are passionate about the idea. We are not creating a business to make profit, we are providing great fast food for everyone. Profit is coming with our customer’s satisfaction.
A reinvention. At least in Groningen.

Executive Summary

This report is written to execute our business idea. Do¨ner 2.0 is a stand in Groningen that sells superior Kebab. Serving from a reconstructed pop-up container we are not only unique in the way we present ourselves, Do¨ner 2.0 provides a yet unknown formula of serving do¨ner in Holland.

Do¨ner 2.0 provides basically two different products. Do¨ner and Durum, with three possible main ingredients: Chicken, Lamb and Vegetarian (Falafel). In addition the customer can choose from a lot more.
It is biological generated, “green” produced and served with love. To satisfy our customer needs and wants we concentrate all our energy on the taste and quality. Furthermore we see our product as a full meal, that saturates and leaves the customer pleased.

The purpose of this report is to show the feasibility of Do¨ner 2.0. Thus we categorised this document in the following sections:

• Behaviour, Management and Organisation

This section deals with the internal affairs of the business. Here we focus on our members, opening hours, work schedules, operating plan and legal section, organisational structure and more.

• Marketing

As marketers we want to create superior value for our customers. Do¨ner 2.0 sells a certain attitude and way of thinking. Therefor a segmentation and environment analysis, our position among the competition, branding and pricing strategy and a Marketing Mix can be found in detailed version.

• Managerial Accounting

The Managerial Accounting section explains the Initial costs of our business. It also deals with the Fixed costs and the variable costs. Because we had to estimate how many units we are going to sell, we included a sales mix in it as well. According to our estimation we made an inventory list. To give an accurate view on our accountants we included a balance sheet and a cash budget.

• Law

The law section explains which legal business form we are, and why. It also explains the employment issues and goes deeper into our Partnership Contract. The law section also deals with the permits and licenses.

To support our ideas, actions and gained expertise we used different sources and methods to conduct required information and gain necessary knowledge.

Introduction

As a young group of entrepreneurs we agreed on one fact. There is no affordable way to eat fast and healthy in Groningen. Especially for students, who are not able to pay for dinner in a restaurant, this is very hard. Even the healthiest fast food option around, namely Subway, is very expensive and the other fast food options in Groningen are very unhealthy. Young people often lack experience or even willpower to do their groceries properly in order to cook healthy. Eating fast food on a regular basis can be very dangerous, which has already been proofed in the documentary “Super Size Me” (2004).

Do¨ner 2.0 wants to make sure, that any inhabitant of Groningen can get a healthy and satisfying meal at an easy and affordable manner. Furthermore we want to be active in solving our generations’ biggest issue: Globalisation. With biological products and our own solar panels on the roof of Do¨ner 2.0 we try to contribute to a better, sustainable world.

To ease the understanding and reading we structured this report as followed.

Introducing the business and giving a whole overview about all the business’s activities, we start with the Behaviour, Management and Organisation section. Here all decisions regarding the organisational structure, legal forms and suppliers etc. can be found directly.

Marketing explains our target market and how we are going to sell the described products and services. Customers’ needs and wants are explored and detailed information is gathered.

In the Law section, legal affairs will be handled. The necessary licenses and permits will be discussed, and the contract between partners is set up in this part.

To proof the feasibility of our stand, we conclude with the Managerial Accounting section. Costs and profits are calculated and the financial activities are elaborated in this part.

Methodology

We used primary and secondary research to create a reliable business plan.

The primary research for our report included two different surveys. First of all we created a Facebook page and updated it with photos, quotes and information about Do¨ner 2.0. We all shared the page with our friends and we reached 51 likes (see more information on page 41).

We also conducted public research. Every group member asked 17 people (which makes a total of 100 people) about their opinion on our business plan. We asked our questions to different age groups – 40 of them were students, 30 were older than 25-years-old and another 30 people who were older than 35-years-old.

In a nut shell, we saw that Do¨ner in Groningen got rated as the worst fast food, but people still visit Do¨ner places the most in comparison with other fast food opportunities. If people in Groningen are eating Do¨ner 2.4 times a month, we expect that they will visit Do¨ner 2.0 even more often.

For our secondary research we used the internet. We compared prices from 11? Correct number shops in Groningen that sells Do¨ner. We saw that the unit price for one Do¨ner varies from €4,25 to €8,75. We expect people to prefer our product because Do¨ner 2.0 offers Do¨ner for €5,00 and durum for €6,00. That is why we see a big chance to earn great market share by offering more choices than our competitors at low price.

Behaviour, Management and Organisation

General company description

Do¨ner 2.0 will act in the fast food business. We will provide do¨ner in a new way, healthier and better tasting than our competitors.
Our mission is to satisfy our costumers needs and demands by providing a new do¨ner experience for the people in Groningen.
Our objective is to achieve the goals that are mentioned below in a time period of three years:

• That 19 out of 20 people are really satisfied with their order • Be well know in and around Groningen
• Be known as the best do¨ner provider in Groningen
• Make profit

For Do¨ner 2.0 and their employees it is important that we provide a healthier and a good choice in the fast-food business, we want to achieve this by buying from suppliers who trade in a fair way and then we know for sure that the quality of the food is high. And that we don’t overprice our products, because we want to build a good relationship with our customers.

The target market of our product is basically every person who lives in Groningen or visits Groningen. For specific market information we refer you to the marketing part of this report.

The industry that we operate in is the fast food industry in Groningen. Which is really big. There are a lot of competitors operating in the same industry, that is a threat to our business. But demands of the costumers are changing, because a lot of people want to choose for healthy and fair products these days. And that is exactly where we focus on, so we can take advantage of this oppurtinity.

Our legal form of ownership is: Private company limited by shares or a “Besloten Vennootschap met beperkte aansprakelijkheid”. We chose this because this way we are not personally liable (Ondernemersplein, 2014)
For further information you can refer to the legal part, page 59.

The best way to describe organizational structure is to say that it is the way the tasks of a company are structured. The chosen structure, we agreed on is a organic structure. Anybody should be as independent and reliable to each other as everyone else.
Any decision is going to be made and discussed together. Since we all have contributed so much for the business and agreed on how we want to lead the business it is only fair and even necessary to allocate the rights equally.

Interview

We interviewed one of the owners of Mustafas Gemu¨se Kebab. Hassan, one of the owners, respond on our email. The interview with all of the question and answers is included in appendix 1. In the following text you can find a summary of this interview.

Summary

Luckily we were able to ask some questions to Mustafas Gemu¨se Kebab in Berlin, our “role model”.

We asked six questions to them (Mohamed and Hassan) and they thankfully answered. Mohamed answered.

Two friends, Mohamed and Hassan both patient about Do¨ner decided to open their own stand. Mohamed loves to improve the recipe and Hassan likes to calculate and think about numbers. He said, they are a perfect team. One is always working to improve the Do¨ner, the other one is checking the finance.

The faced a lot of bureaucratic difficulties. In Germany, they say, it is very difficult to get the permit to have a stand on the street. In Berlin even more. Every year the government charges more money from them.

Standing in front of a hostel, next to a subway an in the middle of one of the most touristic neighbourhoods in Berlin, they had no problems to attract customers at all. A lot of their customers don’t even know what they are selling, they just want one, because the row of people is incredible long.

Working in a small stand is hard. It is hot and you start sweating. During worst possible conditions you still need to be friendly and perform constantly.
They advised us to do as much on our own as possible. Or at least leave it in the family and friends. After becoming a good time, the productivity increases enormously.

Because they learned to work together and have already been good friends or family members, they have no problems with giving feedback or criticism to each other. If something is wrong, they say it.

Finally we got one very important tip from him. He said, we have to love Do¨ner. We need to put our energy in the recipe and deliver the best possible.
Every detail is important, they say.

For the raw anwers please refer to Appendix 1.

Personnel

Job roles

We will do all the work by our selves, so the owners of Do¨ner 2.0 are also be the employees. Most of the time one person will be enough to sell the products, but during the busy hours we will have one extra person working.
Everybody will work in the stand to make and sell the do¨ners, so basically keeping the business running. Next to the main process, Carlijn will keep track of our inventory. Bendix will be the contact point for suppliers etc. and he will also make appointments with the suppliersm, and Tim keeps our Facebook page up-to-date and takes care of extra promotion.

Everybody will have their shifts, so we divide all the work equally. Carlijn, Tim and Bendix will work less in the stand because they have extra work. This will be around two hours a week for Carlijn, Tim and Bendix.

Training

All the work that has to be done is basically unskilled labour so we don’t really need trained people or experts. The main processes are; getting the ingredients to the stand, after that we have to make the do¨ner/durum and sell them.
Next to the main processes we also need to do other things like cleaning, and opening and closing the stand. This is also unskilled labour. Most of us already have experience in the catering business; this is a big advantage for us because we know how to act in this kind of business.

Payment structure

We pay ever one who works for do¨ner 2.0 a salary. So by applying this payment structure, we will all get a normal income. And the most of the profit at the end of the year, we use for improving our business.

The payment structure for our costumers is as follows:

The costumer comes to the stand and orders what he or she wants, and then he or she will pay with cash or bankcard. After that we will make the order as fast as possible and also pick up other orders during the making of the order. The ordered food(s) and/or drink(s) will be given to the customer.

Contracts

Our contracts will all be the same, because we all have around the same working hours. We will get paid per working hour, next to that we devide the profit that remains.
For detailed information you can refer to the legal part page 61.

Sickness, holiday and incapacitation policies

Information about sickness and holiday is in the legal part on page 62.

Products and Services

Products and services

The products, offered by “do¨ner 2.0” are food and drinks. Our main products are the do¨ner and the durum, both made of very high quality because we only use fresh ingredients, and biological meet. For drinks we provide sodas and beer. For the products and price list we refer to the financial and managerial part.

The services we offer are making the do¨ner or durum, and serving the costumer their food and drinks.

Competitive advantages and disadvantages

Our advantage is that we are just outside of the canals of Groningen, a lot of people will walk by our stand and notice us. Our biggest disadvantage is that we have a lot of competitors in the fastfood industry, but our products are very different from the existing ones. Once people find out that our products are fresher and therefore better tasting, and that we also provide a vegetarian do¨ner and durum (which doesn’t exist yet at our biggest competitors), we will have less competition.

Pricing structure

We use the cost-based value pricing strategy. We chose this strategy because we think the do¨ners and durum’s in Groningen give you low value for your money. Our do¨ner will not be much cheaper than our competitors but it will be way better. Our downer will costs €5,and the durum will costs €6,-. You can see how we got to this price in the Marketing part page 35.

Kind of inventory

We won’t have a lot of inventory because we only use fresh products, we don’t want our ingredients to stay in stock for a long time. Our inventory will mainly consist of: bread, lamp and chicken meet, cheese and vegetables. We combine these ingredients to get the finished product.
Next to food we also sell drinks, which can be stored in the inventory for a longer time.

Average value in stock

We made a formula to calculate the avarage value in stock. Makro will come twice a week for the ingredients for the do¨ner/durum. Every second time they come they will also bring the drinks.
To see where we got the prices please refer to the managerial accounting part.
Formula:

Food: (average price of do¨ner+durum)X(sales of do¨ner+durum per half a week)=O O/2 = average value in stock for food (A)
Drinks: (average price of drinks)X(sales of drinks per week)=M
M/2 = avarage value in stock for drinks (B)

Average value in stock= A+B Food: €5,75X1500=
€8.625,-/2=Drinks: €2,65,-X1000=

€8.625,€4.312,50 €2.650,€1.325,-

€2.650,-/2=
Average value in stock= €4.312,50 + €1.325,= €5.637,50

Working day

In the following table, you can see the opening hours of our business.

In total we will be open for 97,5 hours a week

Operational plan

In the following table you can see which person works on what day, and how long that person works

* Half an hour extra work for opening the stand
** One hour extra for cleaning and closing the stand

During the day, the main process will be selling and making the do¨ners. Hygiene is important when you work with fresh products, so we pay a lot of attention to the cleaning part not only at the end of the day but also during the day.

When the Do¨ner 2.0 is closing we will make sure we clean everything very well. And again we will check how much ingredients we used during the day so we know how much we should order from our suppliers.

136 hours a week of working in the stand.

? total 29? total 26,5? total 27,5? total 28,5? total 28,5

hours a week
hours a week (+2 for inventory work)
hours a week (+2 for promotion work)
hours a week
hours a week (+2 for contact work) inapplicable=X

the stand because they also do other work which is 2 hours a

Production

Do¨ner 2.0 will be selling the following main products for our costumers:

• Do¨ner (lamb/chicken meat or vegetarian) • Durum (lamb/chicken meat or vegetarian) • Several soda’s and beer

The Do¨ner and the Durum will be prepared in the stand with all the ingredients that we get from our suppliers. This process of preparing the do¨ner and durum contains the following steps:

• Order coming in from a customer
• Prepare the meat with all the spices and all the ingredients
• Get the needed vegetables from the cooling and cut the ingredients needed for theorder
• Bake the bread and prepare to serve
• Serve the sliced vegetables and put it together
• Serve the do¨ner or durum in the package and give it to the customerProduction costsBecause Do¨ner 2.0 is not producing any products by itself, we will not have any production costs. We get all our ingredients from several suppliers so that will be our cost for serving our products. For the costs of our ingredients and products you can refer to the financial and managerial accounting part of this report.Quality controlThe personnel that open the shop in the morning will do the process of controlling the quality. The checklist, to control the quality will include the following requirements:

• Good storage and temperature of the ingredients
• Good disinfection of the equipment that we use
• Good hygiene for every single person that is working that dayDo¨ner 2.0 wants to be sure that the expectation of the customer will be satisfied and our aim is to meet their expections. Because of this we want to make it really easy for our customers to submit any complaints or suggestions that the have. We will attend the customers, that if they have any complaints or suggestions they can tell us or that they can send an email. In case of an email we will make sure that we will respond within 2 workdays.

Customer service

Inventory control

Everyday at the end of the day we will check our inventory. So we know what ingredients and products we used, sold and are spilled that day. We also label every single package of ingredients, so that we know the expiration date of every single product and ingredient in our inventory. Because of the labelling system we also make sure the fridge is ordered according to products shelf lives. The ingredients with the closest best-before-date will be used first.

Location

For our business it is important to be located in a busy location in Groningen. This will increase our sales because we will have a lot of potential costumers passing by. We chose to put our stand at the ossenmarkt, just outside of the canals of Groningen. Please see appendix 3 for the exact location. It is in the north of the city centre. We have had contact with the municipality, they said that if we show our plan etc. we can apply for a stand at the ossemarkt. The lady on the phone said that it won’t be to hard, because there is not a loth of trafic at the ossemarkt and there is already an other stand.

Space, type of building and utilities

Our stand will be approximately 17.5 square meters (foodtruckcompany, 2014), this may seem very small but we don’t need a lot of space to make our do¨ner. We will have a stand instead of a building, this is very efficient. The costs will be much lower, and this way it will be much easier to get a place at a busy street for a low price.

Please see appendix 4 to how the space is used.

We can get a part of our electricity from the solar penals on the roof. The rest of needed electricity is available at the ossemarkt with a electricity cable. Water is also available at the ossemarkt, next to that there is a watertank in the stand if that would ever be needed. We called “waterbedrijf Groningen”, and they gave us this information.

Access suppliers and costumers

It will be very easy for our costumers to access our business, because we have a stand at the ossemarkt, where a lot of people pass by if they go to the city centre. For the suppliers it will also won’t be a problem, there is not a lot of traffic so it will be easy to get to the stand. The ingredients etc. can be delivered through the back door of the stand which also will be easy to access.

Detailed drawing of the facility

A detailed drawing of the facility can be found in appendix 3.

Legal Plan

“Do¨ner 2.0” is a Private Company Limited by Shares or a Besloten Vennootschap met beperkte aansprakelijkheid Private. Every one of us has an equal share of the company. We chose to be a Private Company Limited by Shares because this way we are only liable to the amount of money we invested in the company (ondernemersplein, 2014). For detailed information, please refer to the legal plan on page 59.

To run our busniess the most important license we need is a operating license, this license gives us a permission to function as a business. Next to the operating license we need a: liquor license, fire department permit, environmental regulation, environmental permit, location permit, acoustic report and a acoustic report. For detailed information about these permits please refer to the law part, page 62.

To open our stand we need a location permit, there are a couple of conditions have to take into consideration. First of all we need to register at the “Centraal Registratiekantoor” in The Hague which is the Central Registrationoffice. We also need to register at the Chamber of Commerce. (gemeente groningen, 2014)

The insuraces we will cover are:

• Burglary/fire insurance • Liability insurence

Please refer to the Legal plan, page 63 for more detailed information

Makro Groningen

Nederland

Reasons for choosing supplier

Supplier

Kattegat 1A

9723 JP Groningen

We chose makro because they are one of the biggest suppliers for the catering business, so they have a loth of expierence. Also they are located close to our stand and they offer attractive prices. Because they are so big, we can rely more on them. The chance that Makro can’t provide the products that we need anymore, is much smaller than when we would operate with a small local business. There are more big suppliers like Makro, for example Hanos. But Makro also provides biological meat (Makro, 2014), that is why we chose for Makro and not an other big supplier.

Credit and delivery policies

We will order our products online and also pay online, after the payment is done the goods will be delivered the next working day, or later if we want to. After the products leave Makro they are our responsibility. The delivery cost will be 25 euros each time they . Makro delivers from monday till friday between 07.30 en 19.30. (Makro, 2014)

History and reliability

Makro was asstablished in 1968 in Amsterdam, and is now one of the biggest suppliers for businesses in Holland. Because Makro is so big, and has so much expierence, we can rely on them. Makro has a good reputation, we could not find any complaints about their delivery etc. That is why we can asume that Makro is a reliable supplier for our business. (Makro, 2013)

Lead-time for ordering

Lead-time can be agreed with Makro. We can make a date for the delivery day and time, and if we want they can deliver already the working day after the order. (Makro, 2014)

Back-up supplier

If Makro suddenly can not provide our products anymore our back-up supplier will be Sligro.

Sligro
De Hallen 4
9723 TW Groningen Netherlands Tel.: (050) 549 94 70 Fax.:(050) 549 93 72

Credit Policies

We are not going to sell on credit, because we don’t know our costumers and our products don’t have a high price. In this market nobody sells on credit so our costumers won’t expect this from us.

Refining the plan

As a do¨ner stand we are operating in the service business.

Because we are in the food industry, our key competitive factors are prices, suppliers and competitors.

The prices that Do¨ner 2.0 uses are cost based price. We want to offer our customers fair and affordable prices for our products. To see our prices please refer to the Managerial Accounting, page 56.

The labour productivity will be measured by comparing what has been done, in the time that is used. In the beginning our labour productivity will be relatively low because everything is new and our employees are not experienced, but it will increase during time.
When an customer makes his order the customer will pay right away, with cash or card. Paying the

supplier will also be done directly.

To keep client base we will use reminder marketing. We will try to stay in contact with our costumers trough our Facebook account and with advertisement. Off course we also will try to provide a much better do¨ner and durum than our competitors, this way our costumers will keep coming back.

Marketing

Marketing environment

Demographic Environment

Currently The Netherlands has a population of 16,908,402 people, of which 200,638 live in Groningen in October 2014 (CBS, 2014). Around 53,000 people of the population of Groningen are students, about 28,000 of them study at the University of Groningen (Rijksuniversiteit Groningen) and 25,000 at Hanze University of Applied Science.

Economic Environment

The Netherlands consists of a stable industrial economy. One of the things The Netherlands is known for is its open economy. It is relatively easy to set up a business in The Netherlands. But the Dutch economy also relies on foreign trade. That is one of the reasons The Netherlands suffered hard from the last economic crisis. But since 2013 we have seen a steady increase of the GDP, which means The Netherlands is on its way back. In Groningen most of the population is able to afford a fast-food meal. That is why we have no reason to assume our customers are not willing to pay our “average-low” prices.

Natural Environment

Nowadays increasingly more people are aware of the environment and the impact human have on it. To be environmentally friendly we use biological meat. A part of our energy supply comes from one of the biggest energy sources, namely the sun. With solar panels mounted on the roof of the stand we get part of our energy straight from solar panels on the roof, so we can create the tastiest Do¨ner in Groningen.

Technological Environment

Technology is becoming more and more important. Almost everyone is connected to the internet. Many people use social networks to reach out to each other, especially students, who are part of our main target group. It was decided that Do¨ner 2.0 should be present on social media so we created a Facebook account. Here people can get to know our business and ask questions when needed. It is great to have a direct contact line between us and our customers. Besides the contact aspect of social media, it is also an advertisement tool with an immense reach.

Political Environment

A stable political environment is required for a stable economic environment. And since the political environment in The Netherlands is very stable, we can assume that the economic environment stays stable as well. The Netherlands is a parliamentary democracy and a constitutional monarchy. At the moment Dutch political party VVD is in charge. This is a liberal party and supports private enterprises. This is an advantage for us. Ruud Vreeman is the current mayor of Groningen. He has been mayor since 2013 and is a member of the PvdA. Groningen also has a city council which consist of 39 members. The current seat division is: http://gemeente.groningen.nl/gemeenteraad/fracties

 

Figure 2.1 Allocation of seats (Gemeente Groningen, 2014)

Cultural Environment

The Dutch culture is a diverse culture with many foreign influences thanks to the merchant and exploring spirit of the Dutch and the influence of immigrants. The Netherlands has played an important role for centuries as a culturally liberal and tolerant centre. The official language spoken in The Netherlands is Dutch. The Frisian language is also recognised as language, this is spoken in the province of Friesland. There is a tradition of learning foreign languages in the Netherlands: about 89% of the total population have good a knowledge of English, 70% of German, 29% of Fren-

ch and 5% of Spanish. An estimated 49.6% of the population call themselves non-religious. The remaining are 26% Roman Catholic, 16% Protestant and 5% Muslim (CBS, 2014).

Customers

European people tend to think the most about the food they consume. Locally made products and animal-free testing are strong points (Nielsen, 2014).
Sustainability and the origin of products are getting more important for Europeans, which leads to an increased awareness of general consumption. Greater awareness turns into more thinking about health and nutrition. Unfortunately healthy food is often too expensive, because biological products are often more expensive to produce than non-biological products. Most students aren’t able to afford the healthy food they desire.

Competitors

Direct competitors

Our direct competitors are Do¨ner shops in Groningen. We conducted primary research amongst 14 competitors by searching and comparing prices online. In the following table you can see how many different types of Do¨ner are offered, their price range, included ingredients and offered menus.

Figure 2.3 Comparison graph

The unit price, our competitors charge for one Do¨ner varies from 4,25 € to 8,75 €.
Averagely 6,50 €.
Do¨ner 2.0 offers Do¨ner for 5,00 € and Durum for 6,00 €.
The number of possible ingredients also vary greatly, which means that there is no specific way of serving Do¨ner in Groningen. The majority serves Do¨ner in a flatbread with normal meat, garlic sauce, lettuce and onions. A list of our ingredients can be found in the section augmented product of the marketing part.

Only a few shops offer special menus, some provide a “Do¨ner Box”.
A list of our special offerings can be found in the section promotion of the marketing part.

Indirect competitors

There are numerous different Fast food possibilities in Groningen. We particularly picked the three biggest competitors of do¨ner businesses in Groningen, namely McDonalds, Subway and Dominos Pizza. These three are our strongest indirect competitors in Groningen.

McDonalds

Figure 2.4 McDonalds

Subway

Figure 2.5 Subway

Dominos Pizza

Figure 2.6 Doninos

SWOT Analysis

Strengths

• The following strengths make our business unique: • Healthy and fresh
• Biological and sustainable
• Great taste

• Smooth service
• Customisation of the product • Famous product
• Pre-drink
• Full experience

We are confident that our do¨ner is going to be the most delicious do¨ner in Groningen. Focussing on the taste and the sustainability we have developed a passion, to satisfy our customers. Our product is biological. We do not use mass produced meat or chemical vegetables and we will stand out to the consumer because of this.

We attract students with cheap beer and combined menus with Do¨ner or durum. Because we offer menus and beer people will come to us to meet and eat, drink and chill.

Weaknesses

• We have to overcome the following weaknesses: • No reputation amongst the public
• A lot of competitors, both direct and indirect
• We don’t have a lot of experience

• We are not known yet

We are all still young and do not have a lot of experience. We never ran a business before but we are young entrepreneurs and we’ll do whatever it takes to succeed. However it will be tough since we have a lot of direct competitors which are the many Do¨ner shops in Groningen. We also have indirect competitors like Subway and McDonald’s.

Opportunities

Since Do¨ner already is an accepted and popular form of Fast Food in Groningen, people will not hesitate to try our product. We offer a better tasting and biological do¨ner or durum which should trigger peoples curiosity. When people have tried our reinvented do¨ner, they will make our business well known through word-by-mouth.

Threats

• Product is not new
• Not located inside the city centre
• Possible adaption of our product by competitor • Bad reputation of Do¨ner

We do face some major threats in the likes of our competition. Anything from big franchises to smaller chains is a threat. Most of them are located within the city centre or like us just outside of it. Besides that, Do¨ner has been around for quite a long while and it has a bad image, many people see Do¨ner as greasy and unhealthy.
It is going to be difficult to stand out among established businesses.

Segmentation

We use market segmentation to find out what the wants and needs of our customers are and how we can meet them.

Geographical Segmentation

We choose our location at the Ossenmarkt, because it is a busy location and a permit is easy to get. Many people travel through that area to get into and out of the city centre. In the nearby surroundings we have popular locations like the park “Noorderplantsoen” and the University of Groningen. During warm days in summer a lot of students spend their time outside in parks and in streets of Groningen. Many of them are going to pass by for a quick snack. Before, after or in between meeting with friends.

The Grote Markt is only 600 meters away. It is a great location with many travel routes surrounding it. This is why it is a great location for our stand.
Easy to find and our main target group surrounds us naturally.

Demographic Segmentation

Groningen is a young city with an average age of 36.4 years (toerisme Groningen, 2014). The biggest share of inhabitants, 15.9 %, is in the age group of 20-25. Approximately 25 % of the inhabitants are students and nearly 67% of the total number of inhabitants is employed (CBS Nederland, 2014).

The gender distribution in Groningen is balanced. 49.6 % of the inhabitants are male and 50.5 % are female (Gemeente Groningen, 2014). Since we are targeting a wide range of ages our target market is very big, our main target would be Generation X and the Millennials, but mostly the Millennials. In Groningen this are more than 105.000 people.

Behavioural segmentation

We are proud of our product and enjoy preparing it. Our customers should feel the same way about it. We target people who think one step further, who care about nutrition and conscience. If somebody doesn’t feel good eating at, e.g. McDonalds, but can’t waive consuming fast food for any reason, they are more than welcome at Do¨ner 2.0.
Our intention is to provide a green product with a very good taste and quality in order to attract, but more to hold customers in the long run. They should be as proud of eating a Do¨ner at our place as we are and tell their friends and colleagues.
Perfect for students or working people who desire a fast and satisfying meal in their break. Because of the fast preparation there won’t be a long waiting line in front of our container. We ensure consistency in speed and quality, on top of this we offer special offerings for students who like to go out. Having a few beers before going out plus a satisfying meal that helps to get through the night is a common behaviour amongst students in Groningen. We provide both beer and Do¨ner in affordable menus.

Psychographic segmentation

There will be a big variety in lifestyle between our customers. Most will probably be students. But we target everyone who is in need of a quick meal without feeling guilty afterwards for eating something greasy, since our Do¨ner will be healthy. We will also target vegetarians and more environmentally conscience people. Many will be just coming by for a quick snack but we will also get people who come to enjoy an entire meal, especially during lunch and dinner time. You can take our product home and enjoy it at home or stay at the stand and eat it there. There will be a great atmosphere around the stand.

Positioning

Price in comparison in terms of freshness

Here we want to show where we place Do¨ner 2.0 in terms of freshness and price.
McDonald’s, Do¨ner in Groningen and usual Pizza shops serve food, which is often very greasy because of the used cheese, cheap meat and oil.
We want to be even fresher and more qualitative than subway for a more affordable price.

Product diversity:

Here you can see the relation between
in-product diversity ( possible adjustments in a product / number of ingredients you can add or exclude to a product, e.g. ingredients you can choose from at the salad bar in subway ) and
product alternatives ( the number of different products offered in a shop; e.g. number of different burgers in McDonald’s ).

Do¨ner 2.0 concentrates its offer on one Do¨ner/ Durum with many possibilities for the customer to personalise it as favoured.

Figure 2.7 Positioning diversity (The terms “in-product diversity” is made by us)

Product

Core product

We offer a very fast prepared, satisfying and healthy meal to take away or eat at our stand.

Actual product

Our proposal is to start a food business, based in a pop-up shipping container, called Do¨ner 2.0 selling Do¨ner Kebab and durum. We vary between the basics: Chicken, Lamb and Vegetarian (Falafel) Kebab with the choice of either a pita bread for Do¨ner or wrap for the durum. The meat has a low amount of fat and is flavoured to have an aromatic taste. After choosing the basis there are a lot more ingredients to choose from in further processes.

The sauce

There are always four different sauces that can be used apart from each other, but also combined. Our sauces are not like common Do¨ner sauces. We bribe the bread with only one filled, large spoon of sauce instead of putting a lot of sauce on top of the meat. This is to prevent that the Do¨ner gets wet at the bottom and that every single ingredient tastes like the sauce.

We have spicy, herbal and garlic sauces.

Vegetables

The customers chooses the vegetables of their preference and “personalises” his or her Do¨ner. He or She can choose from: lettuce, tomato, cucumber, mint and onion.

Grilled Vegetables

Pieces of grilled zucchini and potato are added.

Extra-Plus

Last but not least the customer can add Feta cheese and fresh lemon juice.

What about the look and smell?

Our Kebab is going to look like a fresh and healthy meal:We layer each element of the Kebab from the meat to the vegetables.
Important to say is, that meat is the main part of the Do¨ner, but in total, there is as much meat as there are vegetables in the bread.

The customer will hold a warm pita bread with do¨ner or wrap with durum in his hands that looks and smells fresh. Every layer can be observed equally. Meat, tomatoes, cucumber, feta cheese, potatoes and lettuce. Thus, in every bite the customer takes, he or she will taste every single ingredient at the same time.

Toasted warm bread surrounds flavoured, aromatic meat in combination with just added fresh and grilled vegetables. Reinforced with melting feta cheese on the top and recently pressed lemon juice.

Quality

Everything we are going to serve is fresh. The quality of each element is as good as possible. Vegetables are bought fresh every day and the meat comes only from chosen suppliers who meet our hygiene and quality standards.
Both of the spits are grilled in front of the customer and the meat is cut off the spits when the customer is requiring it.
The meat has a low amount of fat and is flavoured to have an aromatic taste.

Augmented product

Sustainable and green aspect

Eating without feeling guilty.

We dissociate our business from mass production and vegetables that have been sprayed with chemicals and come from very far away. If somebody eats our Do¨ner, we can tell exactly where its ingredients come from and provide information about suppliers and production processes.Additional products

Soft drinks and beer are going to be offered separately and in combination with the meal as a menu.
Since our product is mainly to take away, we offer packaged bags with Do¨ner, drinks and napkins.

Our general price strategy is based on a Cost-Based pricing strategy.

Pricing

Figure 2.9 Pricing

Price tactics

Our general price tactic is a market penetration. We enter the market with low prices to be able to compete with our direct competitors.

Promotion

Introduction weeks

We will participate (as a partner) in the KEI-week and ESN-introduction week. Both take place in September and February.
Participants are able to get a whole Do¨ner menu for 5,50 €.
Thus they will save 1,00 € and get a full meal plus one 0,33l drink.

We will make 1,00 € less profit but hopefully gain profitable customer relationships which will lead to greater profit in the long run.

Additionally we will reduce the price per beer by 1,00 €.
Which leads to 1,00 € for one beer 0.33l and 1,50 € for one beer 0.50l.
Again: We will loose 1,00 € profit per sold beer but we will be seen as a young business which participate in social events and understands the wants and needs of students.
It’s worth it.

Our goal is to reach as many new students coming to Groningen as possible, as fast and as effective as possible.
Furthermore we will provide party-music during the introduction weeks to meet all of our customer (new students in Groningen) needs and wants: food, alcohol and music.

By providing a cheap meal, cheap drinks and music, we build a strong customer relationship by providing the ultimate first impression in Groningen.

Happy Hours

Happy-Lunch-Hour

Every day Do¨ner 2.0 will have a “happy-lunch-hour”.
From 12.00 15.00 o’clock the price for one menu is going to be reduced from 6,50 € to 6,00 €.

People who are working or studying are going to include Do¨ner 2.0 as a trustful venue to spend their time and money for lunch.

Pre-Going-Out

Wednesdays, thursdays, fridays and saturdays there will be a “happy-drink-hour”. From 09.00 to 12.00 o’clock pm we offer beer 0,33l for 1,00 € and 0,5l for 1,50 €.

Both “Happy-Lunch-Hour” and “Pre-Go-Out” create regularity and long term customer relationships. We will be seen as spot to meet before going out in the city. By providing this service, young students will hopefully reward us with buying our products regularly.

Bonus

If you buy 10 Do¨ner or Durum, you get the 11th for free.
Our customers can get a card and receive a stamp every time they buy one Do¨ner or Durum.

Branding Strategy

The branding contains a strong name and a nice slogan.

Brand Name

The name of our business is going to be Do¨ner 2.0.
It represents the idea of a new way of Do¨ner. The common expression of “2.0” means that it is new. Not only new, 2.0 stand for an improved version of a previous one with a stronger image and future orientated style.

Brand Logo

Our Logo contains our name and a animated person.
Therefor we express the happy attitude that comes with our product. Delicious, biological and green food without any bad feelings eating it.

Slogan

The slogan is: A reinvention.
People are attracted by something new. We promise something they already know and like, but reinvented. In a new style, better shape and improved quality.

Marketing goals

We want to satisfy consumer needs and wants by building a strong long-run customer relationship. At the same time we would like to be an established Do¨ner in Groningen and gain market share and profit.

Marketing objectives

Short term objectives

If we want to make profit, we have to sell at least 80 units per day. It is important to sell as many Do¨ners a day as possible. That’s why we need to get famous in Groningen as fast as possible. Do¨ner 2.0 needs to become a well-known address for fast food in the city. Consumers need to be aware of us to experience the real and big difference between us and our competitors. We don’t offer just another Do¨ner in town, we reinvent the idea of Do¨ner and consumers need to try, taste and experience us once to have the ability to determine the difference.

At the same time we must satisfy our customers good enough to ensure being recommended to their friends and family.

Long term objectives

Our long term goal is to always be consistent and reliable in terms of quality, taste and service. During gaining popularity we can improve consistently our methods.
After successfully establishing Do¨ner 2.0 we can think about varying our product range and expand our business in Groningen with a second stand.

SMART Goals

Specific

To attract as many customers as possible in the beginning. We need to promote our business good enough to break even and to be able to survive the first time.

Measurable

To use our start budget of 60.000 € as efficient as possible.
We have to buy a stand for 15,000 € and initial costs of €18,674 with a total fixed costs of €40.646,04 a year.

Attainable

To make profit we have to accomplish selling 2400 Do¨ner’s a month which is around 80 do¨ners a day. On average it would be around 8 Do¨ner’s an hour.
We consider it as hard in the beginning, but doable.

Relevant

This seems like a worthwhile business to pursue, since it will make profit in the end. With our combined skill sets we are more than capable to pull it off.

Time-bound

We firmly believe that we can make a profit after 1 year of running. We also have a very tangible goal, we want to have the people taste how good a Do¨ner can be and that it can be so much more than a greasy late night snack. When your goal is tangible you have a better chance of making it specific, measurable and thus attainable.

Secondary Research

MUSTAFAS Gemu¨se Do¨ner in Berlin

After comparing do¨ners in Groningen with do¨ners in Berlin, we saw and understood the big difference between them.

Mustafas “Gemu¨se Kebab”(eng. vegetable kebab) is Berlin’s most popular Do¨ner. Tourists and locals are willing to wait up to an hour in a long line to get the “best Do¨ner in Berlin”.
(gogemany, 2014)
Those Gemu¨se Kebab are quite new in Berlin. Mustafas exemplified the enormous potential in the market. After its competitors understood how profitable it can be most of them either added a chicken spit to an existing lamb spit, replaced the lamb spit with a chicken one or opened a new “Gemu¨se Kebab”.

For instance “Kottiwood” got also very famous in Berlin for its “Gemu¨se Kebab”. They offer basically the same as Mustafas. Nevertheless all of them claim to have a special recipe of their meat and sauces.

Mustafas is famous for its “fresh vegetable and juicy chicken Do¨ner kebabs” (Amondson, B.). Gemu¨se Kebabs are getting more famous every day. The main differences between those and “normal” Do¨ners are the chicken meat and a different range of ingredients. You can in addition get grilled vegetables (aubergine, zucchini, potato), feta cheese and pressed lemon juice.

Mustafas’ ingredients include the following:

Chicken meat, grilled vegetables, tomato, cucumber, onion, feta cheese, fresh lemon juice, sauce (spicy, herbal, garlic)
One chicken do¨ner costs 2,90€, a durum 3,90€.
The taste, quality and price is extremely good. But for an adult it wouldn’t be enough as a complete meal (Do¨ner 2.0 is also going to fulfil this need). The quantity is reasonable with the price.

The average do¨ner in Berlin costs about 3,50 € (estimated)

Primary data

Facebook

We pretended to be a real Do¨ner company that is going to open in Groningen soon.
Therefore we created a Facebook page and kept it updated with pictures, quotes and information.

Figure 2.10 Facebook imaginary stand

After sharing the page with friends and our timeline we accomplished a top post-reach of 69 people.

and in total, 51 likes.

Do¨ner 2.0 went online on the 12th of October and reached 51 likes in 1.5 months. Here you can see a comparison with the highest rated do¨ner shops in Groningen:

Figure 2.13 Facebook Comparison

As you can see, Do¨ner 2.0 is already the second most popular do¨ner on facebook in Groningen.

Public research

We asked 100 people to give their opinion about fast-food in Groningen.
Each team member of group 2 asked 17 people. The people questioned were: 40 students, 30 older than 25 years old and another 30 older than 35 years old.
You can see the satisfaction of taste (blue) compared to the what the customer get for his money (green). In black we show the total satisfaction of each type of fast-food.

Conclusion

Although do¨ner in Groningen got rated worst in terms of taste satisfaction and price/ service satisfaction, people visit them the most.
We assume the satisfaction of Do¨ner 2.0 will increase by 90% (in comparison to normal Do¨ner shops in Groningen)

Which leads to a higher total satisfaction than subway. That is because our prices are still lower than subway’s prices. An increase of satisfaction turns into a higher amount of people visiting us a month.

If people in Groningen are even eating do¨ner 2.4 times a month, they are going to visit Do¨ner 2.0 more often, if they are aware of our quality, than our competitors.

Male / Female

We asked again 100 people to examine the different tastes between male and female. Ensuring a 50:50 male:female rate and the same age diversity as before ( 40 students, 30 older than 25 years old and another 30 older than 35 years old).

The questions were:
• Do you eat do¨ner (vegetarian or with meat, doesn’t matter) ?

Surprisingly almost half of the female persons we asked don’t eat do¨ner. • If you do not eat do¨ner, why? (Mark the correct possibility)

There are several reasons why they don’t like it.

• If you don’t don’t like do¨ner because of the given reasons, would you like to try a new do¨ner with improved taste, quality and health issues?

By providing a real difference in terms of taste, quality and health issues almost everyone who is not likely to eat Do¨ner would try an improved, new Do¨ner in Groningen.

Here we do see a big chance. If people would consider to try us, instead of another do¨ner in Groningen we are not only serving usual do¨ner eater. We would have a greater market share than our direct competitors.
Although it is going to be difficult to convince them to try us.

Managerial Accounting

Initial Costs

To start our company we will need a venue, appliances and permits.

Venue

As a venue we chose to use a Pop-Up container from the Food Truck Company. This container already has a small kitchen which includes a fridge, a sink, and an oven. We contacted the Food Truck Company and asked them about the prices. The information they gave us is stated below:

• To rent a container: €2.500 a month
• Transport one way: €200
• Cleaning cost after rent: €150
• To buy standard container with a small kitchen: €15.000-€20.000

If we would rent this container it would cost us €2.500 x 12 months = €30.000 a year. To buy will only cost us €15.000. This means that if we buy the container it will cost us as much as 6 months of rent, so it is more suitable to buy.

Appliances

All appliances will be bought at www.horecacompany.nl, www.bgwinkelinventaris.nl, www.horecaworld.biz, www.shirtsenzo.nl and Ikea.

Permits

We need several permits to be able to start our business. First we need to register at the Chamber of Commerce and this will be a one-time cost of €50. The next step is to apply for an operating permit and an alcohol and catering permit these will cost €929 annually. We also need a permit for a stand which will cost approximately €250. So €50 + €929 + €250 = €1229 are the initial permit costs.

Total initial costs

If we add the costs of the venue, appliances, and permits we get the total initial costs: €15.000 + €2.695 + €1229 = €18.924

Fixed costs

Fixed costs tend to remain the same in amount, regardless of variations in level of activity. (Horngren 2012)

Utilities

With utilities we mean: water and electricity. Because we will also get a small amount of power from the solar panels on our roof, we have made an estimation of the utility costs and concluded that we will most likely spend the following amounts:
Water: €30

Electricity: €150
Total: 30 + 150 = €180 a month 180 x 12 = €2.160 a year (Numbeo, 2014).

Insurances

For insurances we have estimated an monthly amount of €29,17, 29,17 x 12 = €350 a year. For more information about the insurances please refer to the law part page 63.

Wages

We as a team will work at Do¨ner 2.0 ourselves, there will not be any employees hired outside of the partnership. The schedule stated below shows an example of a work week as seen in the BMO part. Our Do¨ner 2.0 is functioning an estimated 142 man-hours a week. These hours are based on our opening hours and extra work hours see the BMO part page 17. We will all get paid €6,50 per hour.

Total

Fixed costs

Total Fixed Costs per month:

Total Fixed Costs per year:

Variable costs

Variable costs are those costs that increase or decrease in total in direct proportion
to increases or decreases in the volume of activity (Horngren 2012).
As a business we will sell multiple products, below we will state the following products and their ingredients:

Product 1

Do¨ner kebab lamb (1 piece):

*the customer can choose from spicy sauce, garlic sauce, and herbal sauce. **feta cheese is optional and will be charged extra for.
***we expect half of the orders will be with feta cheese (3,24+(0,20X0,5))=3,34

Product 2

Do¨ner kebab chicken (1 piece):

*the customer can choose from spicy sauce, garlic sauce, and herbal sauce. **feta cheese is optional and will be charged extra for.
***we expect half of the orders will be with feta cheese (2,65+(0,20X0,5))=2,75

Product 3

Do¨ner kebab vegetarian (1 piece):

*the customer can choose from spicy sauce, garlic sauce, and herbal sauce. **feta cheese is optional and will be charged extra for.
***we expect half of the orders will be with feta cheese (2,05+(0,20X0,5))=2,15

Product 4

Durum kebab lamb (1 piece):

*the customer can choose from spicy sauce, garlic sauce, and herbal sauce. **feta cheese is optional and will be charged extra for.
***we expect half of the orders will be with feta cheese (3,24+(0,20X0,5))=3,34

Product 5

Durum kebab chicken (1 piece):

*the customer can choose from spicy sauce, garlic sauce, and herbal sauce. **feta cheese is optional and will be charged extra for.
***we expect half of the orders will be with feta cheese (2,65+(0,20X0,5))=2,75

Product 6

Durum kebab vegetarian (1 piece):

*the customer can choose from spicy sauce, garlic sauce, and herbal sauce. **feta cheese is optional and will be charged extra for.
***we expect half of the orders will be with feta cheese (2,05+(0,20X0,5))=2,15

These recipes are our own and make our do¨ner the best do¨ner there is.

Product 7

Coca-Cola cans 33 cl:

Product 8

Spa bottle 500 ml:

Product 9

Sprite cans 33 cl:

Product 10

Grolsch Premium Pilsener cans 33 cl:

Prices:

The calculation of these prices can be found in appendix 5. These prices are based on information from http://www.centerhoreca.nl, http://www.ah.nl/appie/, http://www.koopbiovlees.com/, and http://www.hanos.nl, and http://www.hetlekkerstebiologischevleesgratisbijuthuisbezorgd.nl/. In the future we will buy our products at Makro, the real prices will probably be lower because Makro is much cheaper than the online sites for individuals.

Inventory

The inventory we will keep is enough to provide us 2500 units a month.

Turnover

We expect to sell 2500 units per month and this will result in a turnover of €9.625

Sales mix

To calculate the sales mix we have to take an average of our products.
Product 1,2,3,4,5 and 6 are do¨ners, product 7,8,9 and 10 are drinks. To keep the sales mix even we will take an average of product 1,2,3,4,5,6 and an average of product 7,8,9,10.

*Our sales price for a do¨ner is €5,and for durum it is €6,-. But we expect half of the orders to be with feta cheese, which will cost €0,50.
((5+5,5)/2)=€5,25
((6+6,5)/2)=€6,25

Weighted-average contribution margin per unit:

Breakeven point in units:
Fixed Costs / Weighted-average contribution margin per unit = Required sales in units €4.584,56 / €1,852 = 2475 units a month.

Law

The ease of creation The need for capital The liability
Tax considerations The continuity

Legal form

The ease of creation

A BV is created by drawing up a contract between partners. The five members of our group will all be equal partners. Please refer to the partnership contract in appendix 2.

The need for capital

Setting up a BV requires legal capital, which means that capital belongs to the company and is to be used for the company activities. There is no minimum capital required for a BV. An additional requirement has been added to the law, effective as of October 1, 2012 which requires board members to approve any distributions of dividends. If the company is later unable to pay its debts and the board members should have been able to foresee such financial trouble they may be held personally liable. The shares in a BV are always personal, which means that the company always knows who the shareholders are (BPP: Law Reader, 2013). Every group member will bring €10.000 into our company. This makes that we have a starting capital of €50.000.

The liability

‘’In a NV/BV the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. So they are not liable with their personal capital. One exception is that if a managing director does not act in accordance with the Articles, it is possible that they will be personally liable.’’ (BPP: Law Reader, 2013: 12). We think the fact that each group member is only liable for the €10.000 they brought into the company is very attractive, because this means they will not get in trouble with their own assets if the company isn’t preforming well.

Tax considerations

There are several taxes we need to pay when the legal form of our business is a BV. We need to pay ‘Belasting Toegevoegde Waarde’ which in Dutch is abbreviated to ‘BTW’ and in English it is Value Added Tax, VAT. The VAT is 6% on top of our selling price (Belastingdienst, 2014). The customer will pay for a do¨ner, durum or drink and the selling price already includes VAT. We also need to pay tax on wages because, even though we don’t hire anyone outside our partnership, we do pay ourselves salary. These taxes are roughly 36% of the wages of that month (Belastingdienst, 2014). Additionally we need to pay corporation tax. The corporation tax is divided into two tariffs: 20% of the profits made up to the amount of €200.000 and 25% of the profits if the profit is higher than €200.000 (BPP: Law Reader, 2013: 13).The corporation is also liable to pay the dividend tax, which must be withheld from shareholders dividend.

The continuity

Because a BV is a legal entity the continuity of the company is assured. In principal the company is independent of the shareholders and the managing directors (BPP: Law Reader, 2013: 13).

Employment issues

Since we will not hire anyone there will be no employment issues with people who are not in the partnership. We do however need to agree on some rules and regulations concerning e.g. working hours, remuneration, sick leave, unemployment, disability and maternity for the partners. These rules and regulations will be formalised in the partnership contract. For this contract please refer to appendix 2.

Partnership Contract

The following points will be formalised in the Partnership Contract, for the full content of the Contract please refer to appendix 2.

Nature of Business

The purpose of our business will be selling do¨ner, durum and (alcoholic) beverages to consumers.

Name

We will conduct the partnership under the name of Do¨ner 2.0 and shall maintain office at the Ossenmarkt.

Day-to-Day Operation

Our day-to-day operations will be conducted by all 5 of the partners. Each partner has equal rights to manage and control the partnership and our business. Should there be differences between the partners concerning ordinary business matters, a decision shall be made by unanimous vote (Entrepreneur, 2014).

Capital Contribution

Each of the 5 partners will contribute €10.000 to our business. We will all have a 20% share in the company (Entrepreneur, 2014).

Profits and Losses

The profits and losses will be divided at the end of each calendar year, to each of the partners according to the percentage of shares the partners have (Entrepreneur, 2014).

Term/termination

The Contract will be valid for a period of 10 years, unless the partners mutually agree in writing to a shorter period. When the partnership is terminated, the assets and cash of the partnership shall be used to pay all creditors, with the remaining amounts to be distributed to the partners according to their proportionate share (Entrepreneur, 2014).

Disputes

If there are any disputes between the partners of Do¨ner 2.0 as a result of our Partnership Contract, they shall be settled by arbitration in accordance with the rules of the Dutch law (Entrepreneur, 2014).

Withdrawal/Death of a Partner

In case a partner withdraws or retires from the partnership for any reason, including death, the remaining partners may continue to operate the partnership using the same name. If one of the partners withdraws he/she is obligated to give sixty (60) days’ prior written notice and shall be obligated to sell his/her interest in the partnership (Entrepreneur, 2014).

Non-Compete Agreement

When a partner retires or withdraws from the partnership, he/she shall not directly or indirectly engage in a business which is or which would be competitive with the existing or then anticipated business of the partnership for a period of 5 years, in the province where the partnership is currently doing or planning to do business (Entrepreneur, 2014).

Working hours

The partners shall be available for at least 30 hours per week. This will provide Do¨ner 2.0 with an always available workforce. The partners have to work the hours they agreed upon in the schedule applicable to that specific week.

Remuneration

Each of the partners will get paid equally. The wage of each person is €6,50 per hour. The profits and losses will also be equally divided amongst the partners.
Sick leave
In case a partner gets sick they will get paid 70% of their wages. Organ donors, pregnant women, or women who just delivered a baby and got sick because off this, get 100% of their days wages (Rijksoverheid, 2014). These payments will continue for the first year of the sickness of a partner.

Disability

In the event a partner gets permanently disabled and isn’t able to perform their job, they will have to sell their share to the other partners. If the disabled partner is able to perform their pay will continue during the first year of recovery. After this year they have to get back to work.

Maternity

When a partner gets pregnant she has a right to a 14 weeks maternity leave, time off for ante-natal care, and she is not allowed to work at night during the pregnancy (BPP: Law Reader, 2013: 21).

Holiday

Each employee is entitled to an amount of vacation days of 4 times the hours they work per week, and a yearly allowance of 8% of their gross yearly income (Rijksoverheid, 2014). In our company each of the partners is entitled to 15 vacation days, which equals 120 hours. Because each of the partners gets a part of the profits we will not give each partner an 8% vacation allowance.

Health and safety

‘’The European Union has tried to harmonize rulings in [the] field [of health and safety] through the Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 (commonly referred to as The Working Time Directive) concerning certain aspects of the organisation of working time.’’ (BPP: Law Reader 2013: 20).

‘’The Directive establishes in particular:

• A minimum daily rest period of eleven consecutive hours a day
• A rest break when the working day is longer than six hours
• A minimum rest period of one day a week
• A maximum working week of 48 hours on average including overtime
• A right to four weeks of paid annual leave
• Normal hours of work for night workers may not exceed an average of eight hours in any 24-hour period’’ (BPP: Law Reader 2013: 20).Our business Do¨ner 2.0 will apply these rulings to all of the partners.
  

  Permits and licenses

  Operating license

  Because our business sells food and drinks, we need an ‘exploitatievergunning’ which is an operating license. This license will cost €560 and will give us the permission to function as a business. (Gemeente Groningen, 2014).

  Liquor license

  Since we will sell beer, which is an alcoholic drink, we need a ‘dranken horecavergunning’ which is a liquor license. This liquor license will provide us with the permission to sell alcoholic beverages. These will cost €369 (Gemeente Groningen, 2014).

  Environmental regulation

  The ‘Wet milieubeheer’ is the law that states what companies need an environmental permit. Because we are a small food business we do not need to apply for a environmental permit, we do however need to submit an environmental notification to the municipality. By this notification wedeclare to meet the requirements stated in the AMvB (Passie Horeca, 2014). AMvB is an ‘Algemene Maatregel van Bestuur’. This is a decision the government makes, which states the content of a law further elaborated. An AMvB isn’t controlled by the First Chamber and the Second Chamber so it is a speeded up version of legislation (Rijksoverheid, 2014).

Environmental permit

Because we will have advertisement on our container to show that the container is Do¨ner 2.0, we will need an ‘omgevingsvergunning’ which is an environmental permit. This permit gives us the permission to advertise on our container and to place a small billboard on our premises (Gemeente Groningen 2014).

Location permit

We called the municipality and they confirmed that it was possible to set up a stand at the Ossenmarkt.

Acoustic report

Because we will play music on certain occasions we might need an acoustic report. This report has to show that we meet the norms from the ‘Activiteitenbesluit’. It also has to show that we have taken precautions concerning the facilities so we won’t exceed the norms (Infomil, 2014).

Stand permit

We have had contact with the community about the stand permit. They said, it would costs around € 2200 a year. This was an estimation, because the actual costs will depend on several variables. Please refer to the Managerial Accounting section.

Insurance

As a company you always should be prepared for things that are not expected. For a lot of these events you can insure yourself. The following text will include the insurance that we are going request at the Unive Verzekeringen. We did the “Ondernemersscan”, this scan gives you a general overvieuw about the insurances you need. After that we contacted the office of Unive in Groningen, and they advised us about what insurances we need, and gave us an estimation of the cost. Please refer to appendix 7 for our personal report about the “Ondernemersscan” we did.

This insurances us if we make any damages at someone else his/hers property. For us this probably won’t happen because we only sell a product, we don’t touch their property or anything and we also don’t have a car. What could happen is that someone gets sick from our food or drink. If this is really serious than we are insuranced for the costs.

The burglary insurance covers the costs if someone steals from us, we will get a compensation for the stolen money or inventory.
The fire insurence covers the costs if there is a fire or explosion etc.

Conclusion

The purpose of this report was to show the feasibility of Do¨ner 2.0. The report also shows that our goals are reachable and we are able to make profit while delivering a superior product.

The Behaviour, Management and Organisation section proved that we are a great team. Focussing on fairness and efficiency we found a way everyone is content about. We all contribute our best regarding personal skills and capabilities.

Because of a high level of competition, the Marketing section demonstrated how we will stand out among others. Emphasising the biological and green aspect of Do¨ner 2.0, by participating in many student activities and offering menus with a reduced price at lunchtime, a higher attraction of costumers is guaranteed.

The Law section showed that the licenses that are necessary are not hard to come by for our business, and that the legality of our business is guaranteed. The partnership contract explains all the agreements between the partners.

Our starting capital was €50.000, and as shown in our Managerial Accounting section we do not need to loan any capital from the bank. This backs up our business because we are only responsible towards the partnership and not to anyone outside of our business.

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Appendix

Interview:
Why did you open the stand:

1

Ich, Mohamed und mein guter Freund und Partner Hassan wollten schon immer unseren eigenen Do¨ner besitzen. Unsere Familien sind beide in der Gastronomiebranche ta¨tig.

Ich liebe Do¨ner und bin ein Perfektionist. Ich sitze Tage lang mit Experten in unserer Ku¨che um den Geschmack zu verbessern. Es ist wie eine Sucht.
Hasan ist der, den das Geld lockt. Er denkt u¨ber Zahlen und Profit nach. Ich denke wir erga¨nzen uns gut.

Did you face any difficulties when starting the company?

Deutschland ist die reinste Bu¨rokratie. Es dauert Jahre bis man die Erlaubnis bekommt, einen Stand zu ero¨ffnen. Vorallem in Berlin, auf einer so viel benutzen Straße. Das schlimmste ist, wenn man soweit ist und der Staat Dich reguliert und einschra¨nkt.

How do you attract customers?

Wir haben eine super Standort. Direct neben der U-Bahn, vor einem Hostel und mitten in Kreuzberg. Es kommen so viele Menschen bei uns vorbei, es ist perfekt. Manchmal ist es so voll, und die Schlange so lange, dass viele sich einfach aus reiner Neugir anstellen. Ein Drittel unserer Kunden weiß gar nicht was wir verkaufen…

Are there any problems working together in a small stand? You have Tips?

In der Anfangszeit ist es hart. Die Hitze und Enge ist erdru¨ckend. Man fa¨ngt an zu schwitzen und muss trotzdem freundlich bleiben.
Nach der Eingewo¨hnung hatten wir eine unglaublich gute Zusammenarbeit. Die Geschwindikgeit mit der wir produzieren ist legenda¨r in Berlin.

Das Geheimnis ist, dass wir eine Familie sind. Oder wenigstens gute Freunde. Wir kommen gut miteinander zurecht und haben deswegen eine sehr hohe Produktivita¨t.

How do you give feedback?

Wie gerade beschrieben, wir sind alles gute Freunde und Familienmitglieder. Jeder von uns mo¨chte sein Bestes geben. Wenn Jemand etwas nicht gefa¨llt sagt es am Ende der Schicht und wir alle versuchen es zu verbessern.
Natu¨rlich habe ich gewisse Standards, die allerdings von Jedem gut erfu¨llt werden. Bekannterweise sind wir relativ erfolgreich sprich ich zahle auch dementsprechend.

Do you have any good Tips for our business?

Ja! Das aller wichtigste ist, ihr mu¨sst verru¨ckt nach Do¨ner sein. Es kommt nicht auf das Design an oder den Stand, in dem ihr ihn serviert. Wir haben einen kleinen Stand mitten auf der Straße und sind der erfolgreichste Do¨ner in Berlin.
Entwickelt ein super gutes Rezept und ihn mit Liebe zubereiten.

U¨berlegt euch, as wu¨rdet ihr haben wollen?
Und gebt euch mit nichts minderwertigem zufrieden. Jedes Detail ist wichtig. Brot, Fleisch etc.
Ihr mu¨sst Do¨ner lieben.

APPENDIX price calculation ingredients

• Onion: €0,35 for one; €0,35 : 4 = €0,09
• Lettuce: €1,20 for 200 grams; €1,20 : 200 = 0,006 for 1 gram; 0,006 x 25 = €0,15
• Pita bread: €1,00 for 5 pieces; €1,00 : 5 = €0,20
• Lamb meat: €41 for 10 kg; €41 : 10.000 = 0,0041 for 1 gram; 0,0041 x 150 = €0,62
• Cucumber: €0,89 for two; €0,89 : 2= 0,445 for 1; 0,445 : 25 = €0,02 per slice, x 4=€0,08
• Mint: €1,49 for 40 grams; €1,49 : 40 = 0,03725 for 1 gram; 0,03725 x 6 grams/2 sticks =€0,22
• Potatoes bio: €3,39 for 3 kilo; €3,39 : 3 = 1,13 for 1 kilo; 1,13 : 1000 = 0,00113 for 1 gram;0,00113 x 50 =€0,06 for 50 grams/3 slices
• Tomatoes: €2,49 for 750 grams; €2,49 : 750 =0,00332; 0,00332 x 55 =€0,18 for 55 gram/3slices
• Zucchini: €0,89 for one; €0,89 : 15 = 0,059 for 1 slice; 0,059 x 2 =€0,12 for 2 slices
• Lemon: €1,79 for 5; €1,79 : 5 =0,358 for 1; 0,358 : 10 = 0,04 for 1/10th
• Sauce: €10,50 for 10 litre: €10,50 : 10 =1,05 per litre; 1,05 : 1000= 0,00105; 0,00105 x 2 =€0,01
• Feta cheese: €2,09 for 300 grams; €2,09 : 300 =0,00697 for 1 gram; 0,00697 x 30 =€0,20for 30 grams
• Wrap: €2,39 for 12 wraps; €2,39 : 12 =€0,20 for one wrap
• Falafel: €2,79 for 234 grams = 12 balls; €2,70 : 12 =0,225; 0,225 x4 = €0,90 for 4 balls
• Lamb meat: €1,39 for 100 grams; 1,5 x 1,39 = €2,09 for 150 grams
• Chicken meat: €1,00 for 100 grams; 1,5 x 1,00 = €1,50
• Coca-Cola: €12,07 for 24 cans of 33 cl; €12,07 : 24 = €0,50
• Spa: €8,65 for 24 bottles of 500 ml; €8,65 : 24 = €0,36
• Sprite: €12,39 for 24 cans of 33 cl; €12,39 : 24 = €0,52
• Grolsch: €15,13 for 24 cans of 33 cl; €15,13 : 24 =€0,63