All the Comforts of Home - Personal Chef Service

All the Comforts of Home

Personal Chef Service

Executive Summary

All the Comforts of Home will provide catered gourmet dinners in the Ahwatukee area of the East Valley. This “personal chef” service with a goal of providing supplemental income to the owner, will focus on intimate dinners and small dinner parties. The meals will be prepared in the client’s home with fresh ingredients purchased specifically for the selected meal. Serving sizes will be for 2-8, with a focus on intimate dinners for two.

A market analysis shows that spending on meals away from home is substantial and growing. Within Arizona, 2004 sales are projected to grow 6.5% to $6.27 billon. As spending on meals away from home increases, a shift in the demand for quality and convenient options has been observed by the Economic Resource Service (ERS) of the US Department of Agriculture. They suggest that there is a trend toward meals with more variety and amenities usually associated with full-service restaurants. This trend provides a growing opportunity for a “full-service” meal provided by a professional in the convenience of the home. According to an Entrepreneur Magazine article by Paul and Sarah Edwards, today’s 24/7 lifestyle leads to busy people who love to have meals fixed for them in their own homes.

All the Comforts of Home will focus on the Ahwatukee area of Phoenix, where the annual income exceed $100,000 in 35% of the 30,000+ family households and exceed $150,000 in 14%. The result is 10,000 households in the target market, with 4200 households that will get more consideration based on annual income.

Research on direct competitors indicates that most want a commitment for a week of meals with prices of $16.25 per person. However, these prices are much lower than charges from those few direct competitors that will prepare a meal for a single event. Single event prices range from $140-$440 depending on the menu selection. All the Comforts of Home will be competitively priced for single event service with a “per person” pricing scheme and simplified menu to put all meals at about the same costs. A typical meal would cost $39 per person and $46 with coffee and soda included.

Business promotions will use simple and low-cost methods. A web page will be developed to provide extensive details about the business, the service, and the pricing. Newspaper and print advertising will be used to build awareness and provide promotional discounts in the target market. Labels on food containers will also be used to maintain business awareness, and press releases will be provided to all community newspapers and radio stations.

Projected sales for the last 2 months of 2004 are $2,340. With the COGS accounting for 36.54% of the sales, after start-up costs and operating expenses All the Comforts of Home will essentially break even with a profit of only $165. Sales projections for 2005 are $12,012 with operating expenses at $2,488. After COGS and taxes, 2005 net profit is projected at $3,697. The projected net after tax profit for 2006 is $5,276 accounting for an increase in sales and slight reduction in operating expenses as promotion activities are scaled back.

Market Assessment

A market analysis shows that spending on meals away from home is substantial and growing. In a July 2003 report, the Bureau of Labor Statistics indicated that the top 40% income group in the US spent 1 of 3 food dollars on meals away from home. In reviewing restaurant industry sales, the National Restaurant Association projects sales of $440.1 billion in 2004. This is a 46% increase over the $239 billion in sales in 1990. Sales are expected to increase by 31% to 577 billion by 2010. Within Arizona, 2004 sales are projected to grow 6.5% from 2003 levels to $6.27 billon.

As spending on meals away from home increases, a shift in the demand for quality and convenient meal options has been observed. A January 2004 analysis of the demand for meals outside the home conducted by the Economic Resource Service (ERS) of the US Department of Agriculture shows a “sustained shift in consumer demands” impacting the food service industry. The ERS predicts that between 2000 and 2020, per capita spending could rise by 18 percent at full-service restaurants, versus about 6 percent for fast food. The ERS suggests that, while consumers value convenience, there is a trend toward meals with more variety and amenities traditionally associated with full-service restaurants.

In considering options for consumers to have full-service restaurant comforts without having to shop, cook, and then clean up after meal preparation, use of personal chef services stands out.