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Gourmet Meats. Business Plan for Balboa Burgers. Agribusiness Venture Management Ray Lei Biancia Rolle Kyle Templeton Dean Serdachny. Client Info. Currently producing lean hamburgers on a small scale (6 animals slaughtered)

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Gourmet Meats

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Gourmet meats

Gourmet Meats

Business Plan for

Balboa Burgers

Agribusiness Venture Management

Ray Lei


Kyle Templeton

Dean Serdachny

Client info

Client Info

  • Currently producing lean hamburgers on a small scale (6 animals slaughtered)

  • Hamburgers are incorporated with special family recipes developed in the summer of 2004

  • Sales are driven by word of mouth and family

Industry info

Industry Info

  • Beef Consumption In Canada:

  • After bovine spongiform encephalopathy (BSE) was discovered per capita consumption in Canada actually increased

  • Before (BSE) 13.5kg/annum per person

Industry info1

Industry Info

  • After (BSE) 14.2kg/annum per person

  • A significant portion of the per capita increase was geared to organic and natural beef products

  • Few competitors in his market currently

Operations plan

Operations Plan

Incorporation of:

Gourmet Meats

Work plan and flow of work

Work Plan and Flow of Work


Gourmet Meats

Processing Facility

Seasoning and Filler Ingredients

Freezer Storage

Local Grocers


Working capital planning and management

Working Capital Planning and Management

Working capital planning and management1

Working Capital Planning and Management

  • Cost of Goods Sold

Working capital planning and management2

Working Capital Planning and Management

  • Total Cost of Goods Sold

Working capital planning and management3

Cash Management

Minimal requirement necessary

Initial investment of $15,000

No large inventories

No large capital costs

Working Capital Planning and Management


Flexible production

More in winter, Less in summer

30 days in average

Inventories replenished in 4 days


Accounts receivable


15 days credit


Incurring customers

Small company

Accounts Receivable

Accounts payable

Accounts Payable

  • Larger purchasing options only

    • Processing fees

    • Trim cost from Natural Valley Farms

Cash conversion cycle

Cash Conversion Cycle

  • Calculated to be 18 days

  • Variable with seasonal demand

    • Low turn around due to production capabilities

Marketing plan

Marketing Plan



Gourmet meats

Product Overview

  • The Product

  • Hamburgers combined with ingredients for flavour

  • Four different flavours:

    • Teriyaki

    • Spice

    • Honey Mustard

    • Original

    • Cajun Maple

  • Size - 5 oz

  • Natural - follows current industry regulation standards

Gourmet meats

Market Objective

  • Focus on pub and grill market

  • Target 19-45 year old males

  • Promote a differentiated product

  • Push strategy

  • First step of market penetration

  • GOAL = Product awareness

  • Pull strategy for summer retail market

  • ie) BBQ season

Gourmet meats

Market Analysis

Market Size

36 733 000 lbs of beef consumed in Saskatchewan

14 693 200 lbs of ground beef consumed in Saskatchewan

3 367 330 lbs of hamburger eaten in Saskatchewan

Gourmet meats

Market Analysis

Market Size

3 367 330 lbs of hamburger eaten in Saskatchewan

14 693 000, 4 oz hamburger consumed in Saskatchewan

637 500 burgers/ year sold in non-franchised pubs and grills throughout Saskatchewan

Market needs flavour consistent taste cooking characteristics no shrinkage

Market Analysis

Market Needs


Consistent taste

Cooking characteristics:

no shrinkage

Gourmet meats

Customer Analysis

Target Market

Primarily male demographic

Aged 19-45

Blue collar workers

Interested in new experiences and new tastes

Gourmet meats

Competitor Analysis

Companies Supplying Pubs & Grills

Gourmet meats


Gourmet meats

Key Planning Assumptions

Beef consumption will not decline dramatically

Consumers are looking for a consistent and flavourful product

Steady and dependable supply of materials

4.Reliability of manufacturing and distribution channels

Gourmet meats

Business Proposition

Gourmet meats


Target wholesale price:

$1.17/ burger

final production/logistic costs

Average wholesale cost:

4 oz $0.50-$0.70/ burger

5 oz $0.60-$0.70/ burger

6 oz $0.90-$1.15/ burger



Non Franchised bar and grill establishments

  • Immediate access to their entire customer base

  • Increased demand for flavour

    • Ribs, wings

  • Reduced advertising costs

  • High traffic

  • Diverse Crowd

  • Place1


    Local Grocery Stores and Gourmet Shops

    • Sask Made Store

      Internet sales



    To Consumers

    • Table talkers and posters in establishment

    • Table talker website promotion

    • Sponsor beer and burger nights

    • Taste testing



    Financial performance

    Financial Performance

    Risk analysis

    Risk Analysis

    Razor thin margins high risk good profit potential irr 70 7 err 48 9 no dividends early on


    Razor thin margins

    High risk

    Good profit potential

    IRR= 70.7%

    ERR= 48.9%

    No Dividends early on

    Can your buns handle our burgers



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