June 29 presentation_verf

Copyright © 2014 very50

1

Mission on the Ground (MoG)- in collaboration with HAPA and Young Leaders

TOKACHI PROJECT

Table of Content

HAPA Project Overview1

Tokachi Café Project Overview 2

Hawaii Macro Data 3

Tokachi Café Two Models 4

Food Restaurant Model (Tokachi Kitchen) 6

Comparison Matrix (Pros & Cons) 7

Take Away (Lessons) 8

Concept Café Model (Community Café) 5

HAPA Project Overview – Tokachi HAPA Project Overview

Tokachi Project, first international MoG with HAPA, aims to revitalize agriculture and tourism through regional branding.

TOKACHI HAPA Project

Place : Tokachi, Hokkaido

Date : May 24 – 28 May 28 - June 4

Stakeholders Objectives

5 Hawaii Uni Students

5 JP Uni Students

HAPA Executives

Hawaii Young Leaders

Mr. Goto Kenich

very50

JP Young LeadersTo propose a sustainable

community-centric development approach with local values.

To promote an innovative community development initiative

To establish a global brand “Tokachi” around the world through five projects: Tokachi café, sister region, Tokachi documentary, its books and Azuki competition.

IMPACT

OUTPUT

Tokachi stakeholders

*Product sales

HAPA Project Overview – Objectives (New Form of Community Development)

Tokachi Project proposes an alternative community development approach: community-centric, sustainable and local values. 　

Urban-centric Development

Community-centric Development

Connects regional communities with other nations directly on a global level.

Regional

Urban

Global Global Regional

Introduces authentic local values with traditional products and services.

Supports the natural surroundings and ecosystem in a sustainable way.

Makes the best use of traditional and regionally-unique specialties.

Connects regional communities with other nations only through urban cities.

Urbanizes regional communities by imitating big cities.

Creates one directional relationship: regional → urban → global.

Attracts tourists as a “gathering place” for people and money alone.

Partner

Prot Asia (Mr. Goto) & other Tokachi stakeholders Support

Tokachi, Hokkaido

HAPA

Young Leaders

Promising 25-40 year old leaders in various fields

Tokachi Project consists of international stakeholders with diverse backgrounds in terms of nationality, experience, education and profession.

International MoG Team

Hawaii Students JP Students

Support

very50 Staff

Experienced Professionals

Problem Solving Concept Making Marketing Branding Strategy

Successful businesspersons with social mission

HAPA Project Overview – Stakeholders

International MoG team consists of 9 students from Japan & Hawaii

Hawaii Team

Japan Team

Kurt Cullen Masato Itoh Tuan LaKaili Taniguchi

Yusuke Noguchi Megumi Kimuro Moeka Mizuno Naoto Umezawa Shunsuke Maeda

HAPA Project Overview – Tokachi Café Team

There were some big pivots in our project. The focus of the project shifted from Azuki to veggie tea cafe to Tokachi cafe

HAPA Project Overview – Tokachi HAPA Project Overview

Tokachi Azuki

Veggie Café & Prod. Sales in

Global Markets

Veggie Café in SG & Hawaii

Tokachi Café in Hawaii

April 1 May 28

• Global sales of processed food made of Tokachi Azuki

• Café & Tea product sales ? • Selecting HK, Shanghai, SG and

Hawaii markets

• Veggie tea café • Primary data and secondary data

in SG & Hawaii was collected intensively

• Two Tokachi café models were developed

Veggie Tea Cafe – Strategy in SG & Hawaii

Veggie tea café project goes through three stages of strategy development.

Tactics

Manabe G

arden etc.

Basic Info 1

Tokachi (Hokkaido)

Agricultural policy (JA and TPP etc.)

Food & Beverage Industry

Community development

Idea Generation

Brainstorming of ideal cafés by team

5P*3

Product

Promotion

Price

Place

Partner

* parts of stage 2 & 3 can be overlapping

2

Finance

Marketing

Branding

• tax system • Initial capital • running cost •etc.

• customer • country risk

•mission/vision•brand message•efficacy of tokaté

• tax system • Initial capital • running cost •etc.

• competitor • company

Primary1 Secondary1

Primary Secondary

Market*

Strategy

1 Primary & Secondary Data

In the end, Two Tokachi Café models featuring Tokachi produced food were developed.

Tokachi Café in Hawaii

Two Models were developed

Tokachi Café Overview

Tokachi Café Overview – Project Flow

Tokachi Café project have gone through three stages of strategy development.

HW Macro Info

Population Ethnicity

Disposable Income

Tourism

Legal Logistics

Mission Statement

Mission & Vision Decision to be m

ade as a result of com

parison matrix

Concept Café

Supply Side(Concept)

Demand Side(Customer/Competitor)

Product Promotion

Price Place

Food Restaurant



Step 1 Step 2 Step 3

4P

Product Promotion

Price Place

4P

Tokachi Cafe Mission – Mission Statement

Tokachi Café’s mission statement was created to convey Mr. Goto’s message in a concise way.

Mission Statement

Mission & Vision

Tokachi Cafe Mission – Mission Statement


We Tokachi Café create “Ba” where the authentic culture of a region manifests into a unique localized experience to showcase Tokachi to the world while nurturing a sense of pride in identity to people in the region.

Mission Statement

Mission statement was broken into missions (why Tokachi Café exists) for customers and community (region) respectively.

Words to our Customers

We Tokachi Café create “Ba” where the authentic uniqueness of the people, food and scenery in the region manifests into a localized experience to continue providing inspirational experiences and ambiance through our core values such as “perfection”, “honesty” “hospitality” and “relationship” with five senses.

Tokachi Cafe Mission – Words for our Customers

The concentration of wealth, human resource and knowledge in urban cities is getting more intense everywhere around the world. This phenomena bring about the depopulation of regions and loss of their unique values.

Tokachi exists as a region that supports nature and agriculture living together. We tell the world while building the “Tokachi model” which utilizes available resources in the region.

The new model is created by Tokachi people which focus on the richness of people’s lives tomorrow with the vision like this everyone will benefit from a successful business growth.

Like 130 years ago pioneers developed the area of Tokachi independently from the government. We accomplish Tokachi Café with people’s dream and hope. By succeeding this business, the new role model will be built up that can be shared between Japan and the world. We believe this experience will change people’s values and create a better future.

Mission for Tokachi

Tokachi Cafe Mission – Mission For Tokachi

Mission statement was broken into missions (why Tokachi Café exists) for customers and community (region) respectively.

Tokachi mission statement and mission/vision for customers and community were created respectively.

Tokachi Cafe Mission – Vision for Customer and Community

By 2020, we would like people to recognize concept of “Ba” all over the world especially in Asian Pacific Region and provide high-quality and inspirational experiences.

Vision for Customer

Vision for TokachiWe do not rely on government support. We collect capital from the private sector. We will have “Tokachi Café” in Hawaii, Singapore, Hong Kong and Shanghai in 5 years. Companies from other prefectures will open shops overseas in 7 years. Tokachi Cafe will be introduced at Tokachi memorial museum after 20 years.

Hawaii Macro Data – Population, Ethnicity, Income, Tourism, Legal , Logics

Hawaii macro information was researched to get an overview of what Hawaii market looks like.

Hawaii Macro Info

Population ・ Ethnicity

Disposable Income

Tourism

Legal ・ Logistics

Hawaii Macro Data – Population, Ethnicity, Median Income

Highlights of Hawaii are 1) dense population 2) large Asian community and 3) higher disposable income than the mainland.

Population

Median Income

Density

Asian White Hispanic Mixed Race Black Native0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Ethnicity Distribution

Hawaii:Honolulu: Oahu:Obihiro:

1,404,000391,000

983,000 168,000

Honolulu:Obihiro:

2,152 /km2

271 /km2

$58,000/ house hold/ year

Hawaii Macro Data – Tourism

Volume7,800,000 visitors (2013 State)4,500,000 (2012 Oahu)

Per person per day spending:$214.20 (2012 Oahu)

US West Coast;

3,180,000

US East Coast; 1,700,000

Japan; 1,470,000

Canada; 499,000

Other; 951,000

The largest number of tourists come from the mainland U.S., followed by Japan.

Hawaii Macro Data – Legal: Incorporation Method & Biz Operation Requirement

Legal

Incorporation Method (LLC or C-corp)1

Hawaii Business Operation Requirements• Business Registration (Department of Commerce and

Consumer Affairs)• Operating License (General Exercise License)• Liquor License (Liquor Commission)• Health Department Permits (Health Safety)• Fire Permits• Zoning and Land Use Permit (Commercial Use)• Other U.S customs and Import Laws (all commercial imports

of food products required filing of Prior Notice with Food and Drug Admin (FDA)- foreign manufacturer must register)(no restriction on tea, coffee, spices)

2

2

Hawaii Macro Data – Legal: Insurance & Visa

Legal Cont.

InsuranceCommercial Insurance (~10k/yr)(ACW group)• General Liability Insurance (~$4-5K/yr)• Business Property Insurance (~$2-3K/yr)• Workers Compensation Insurance (~2-3K/yr)Personal Insurance (medical,disability,life)

Working Visa for Temp Foreign EmployeesFile petition with US immigration serviceOnce approved, apply for either type:• H-2B: temp non-ag worker (1yr stay)• L: intra- company worker (3yr stay)

3

4

Hawaii Macro Data – Logistics and Shipping

Matson Shipping Company Quote: Tokyo Shanghai Honolulu

Tea products, milk, cheese, confectionaries, pastries

$4,915 for 20ft Refrigerated Container

$6,640 for 40ft Refrigerated Container

+ Surcharges $781 - $1,095

Two Tokachi models are developed and thought of from both supply and demand sides.

Tokachi Café – Two Models: Concept Café and Food Restaurant

Concept Café



Product Promotion

Price Place



4P

Product Promotion

Price Place

4PFood Restaurant

Two different models of Tokachi Café, namely Concept Café and Food Restaurant were developed.

Tokachi Café – Two Models: Concept Café and Food Restaurant

Concept

Part of revenue is pooled into Tokachi Café Fund, which is used to support community activities for local people.

Open-home kitchen restaurant featuring healthy, natural, fusion-Tokachi style food prepared & served by your own personal (mother) Tokachi Chef

Targeted Customer

20 ~ 40 Females Medium Income ($58,000)

Male & Female Professionals

Lead Menu1. Veggie tea 2. Fusion 3. Butado

Fresh, natural, and locally produced traditional Tokachi

fusion (w/ Hawaii) foods.

Concept Café(Community Café)

Food Restaurant(Tokachi Kitchen)

Concept café model, “Community Café” was developed and thought of from both supply and demand sides. And 4P was elaborated in greater details.

Concept Café – Community Café

Concept Café



Product Promotion

Price Place

4P

Concept Café Model – Product : Concept (Overview)

Part of revenue is pooled into Tokachi Café Fund, which is used to support community activities, of local people, by local people, for local people. By doing so, it becomes a platform of community activities where people, information and places are connected.

Community Café

1

2

3

4

Tokachi Café Fund support local people and its community

Personnel expresses hospitality through welcoming attitudes

High quality drinks (teas) & food are provided

Transparency toward customers is in thorough

Action

1: KSF - Key Success Factor

2: CA – Competitive Advantage

“Ba” concept for local people

Hospitality

Perfection

Honesty

Core Value KSF1

○◎

○○

CA2

◎


All aspects of the café are organically connected to convey the Mr. Goto’s vision of “Ba” to customers.

Menu

Entertainment

InteriorPersonnel

Tokachi Hawaii

Community

Café

Customer

Information CustomerPersonnel

By decomposing items that make up of a café, important factors contributing to a successful café are to be analyzed and worked upon.

Menu

Round Table

Long Table

Black Board

Workshop

Concert

Exhibition

Fringe Benefits

Japanese Style

Events

Combo

Fusion Menu

Veggie Tea

Café Concept

Entertainment Interior Personnel


Butadon

Guide Books

Fund Free Samples

Combo Menu

Concept Café Model – Product : Concept (Menu)

Menu was decided based on the concept of connecting a region (Tokachi) with the world (Hawaii).

Fusion – Mixed Ingredients Menu + Combo Menu 1

Introduction of Tokachi dishes to the world 2

Mixed Ingredients Menu

1: High recognition in Hawaii 2: High demand in the States 3: Easy to export from Tokachi

1: Info on ingredients, calories & producers 2: Tokachi info/sayings in the bottom of the plate 3: Seasonal foods combo 4: Samples for next order

e.g. Bite-sized foods with a six hollowed plate

e.g. Mixing Tokachi produced Kinako with milk produced in Hawaii Kinako Latte

Butadon

Concept Café Model – Product : Concept (Menu)

Menu was decided based on the concept of connecting a region (Tokachi) with the world (Hawaii).

Fusion – Mixed Ingredients Menu + Combo Menu 1

Introduction of Tokachi dishes to the world 2

Veggie Tea

1: No competitor serves veggie tea (CA*) 2: Advantage of Tokachi as “agricultural kingdom”3: Easy to export

1: High popularity among Hawaiian people 2: Original Tokachi dish (Tokachi’s uniqueness)

*: CA – Competitive Advantage

Concept Café Model – Product : Concept (Atmosphere/Interior)

Configuration of Tokachi Café is shown below.

On the huge black board, included are community activities, seasonal events, product/info and mission statement.

One person counter

Long Table with Toakchi relevant materials

Open Kitchen

Hug

e In

fo B

lack

Boa

rd

Round Table

Toilet

Tra

nspa

rent

She

lf


Atmosphere/Interior was decided based on the concept of connecting customers with other customers and information.

Connecting customers with other customers

Round tables with round chairs

Long tables with long chairs

1

2

1. Tables and chairs to be shared together

Make comfortable and friendly atmosphere so that customers can have talks

2. Tokachi / Hawaii guide books to be prepared

Make Tokachi and local information accessible to customers

3. Seasonal foods and processed foods to be tried Make processed foods made of Tokachi ingredients such as jams and dressings available for free to customers


Atmosphere/Interior was decided based on the concept of connecting customers with other customers and information.

Connecting customers with information

Big info sharing black board 1

“Community Board” is used to encourage communications between customers 1. Social / community activities

e.g. recruit helpers for the elderly living alone & volunteers for cleaning parks

2. Regular / seasonal events

e.g. sports event, music festival, bazaar, flea market, tea ceremony

3. Café information & product information

e.g. mission statement, café history, production process

Concept Café Model – Product : Concept (Entertainment)

Entertaining parts of the café was though of based on the concept of connecting the café with surrounding areas

Events – Workshop, Concert, Exhibition 1

Tokachi Café Fund – Funding for community activities 2

Workshop

Concert

Exhibition

• Theme is decided by local people’s proposals & voting• Tokachi & Hawaii food day for local wives • Azuki beans mosaic art workshop for local kids

• Locals play ukulele & other music instruments and sing local songs to deepen understanding local cultures

• Local school kids show their arts • Scenery pictures of Tokachi and Hawaii • Make a short movie with customers and broadcast it 　

Concept Café Model – Product : Concept (Entertainment)

Entertaining parts of the café was though of based on the concept of connecting the café with surrounding areas

Events – Workshop, Concert, Exhibition 1

Tokachi Café Fund – Funding for community activities 2

Sales Fund Community

＄ 1000

＄ 1

Park cleanup program

Education program

Event organizing

Part of revenue is pooled into Tokachi Café Fund, which is used to support community activities, so that its benefits are shared with everyone

Concept Café Model – Product : Concept (Personnel)

Personnel aspect of the café was though of based on the concept of connecting personnel with customers.

Education – Japanese style, Fringe benefits 1

Relationship – Joint workshop, free sample 2

Fringe Benefits

Japanese Style

1: Both polite and friendly attitudes toward customers2: Bow deeply and give back money with both hands

1: Motivate personnel while getting to know Tokachi more 2: Visit farms and production sites and learn more

Personnel who work for more than 3 years can fly to Tokachi

Concept Café Model – Product : Concept (Personnel)

Personnel aspect of the café was though of based on the concept of connecting personnel with customers.

Education – Japanese style, Fringe benefits 1

Relationship – Joint workshop, free sample 2

Free Samples Served

Joint Workshop

1: Opportunity for personnel to build good relationships with customers even beyond cafe 2: Share info and knowledge about Tokachi with customers

1: Opportunity for personnel to interactive with customers 2: Free samples to be made at workshops

Concept Café Model – Product : Concept (Summary)

Level of Attraction(New Customer)

Feature

Low Social High

Low Tokachi Middle

High Menu Low

Middle Experience Middle

Level of Attraction(Repeater)

Although menu has to attract new customers to come there in the first place, “social part” of Community Café is certainly the differentiating factor.

In order to attract customers, four aspects (menu, atmosphere/interior, entertainment and personnel) of the café are thought of creatively, but the concept of “Ba” was expressed most in a way that Tokachi Café Fund supports local people and its community.

Concept Café Model – Product : Customer (Persona)

Three potential customers were interviewed to find unmet needs more precisely.

1 Jessica, University Student (21 years old)

Tea Farm Café Reasons: working by herself after work

2 Kaili, University Student (21 years old)

1) Starbucks Coffee 2) Bogart’s Café Reasons: 1) working after work 2) go for a lunch

3 Chie, Aesthetician (39 years old)

1) Nordstron Café 2) Café Julia Reasons: 1) go for a lunch 2) go for a lunch with acquaintance

From proximate purposes of going to a café, underlying needs, and in turn possible solutions were considered.

Concept Café Model – Product : Customer (Customer Behavior Analysis)

Possible Solutions

Underlying Needs

Proximate Purpose

Café

Serving tea with pots

Movie theatre

Relaxing background music

Kitchen timer

Pictures

Outside seats

Staying long

Easy to concentrate

Easy to gather

Having conversations

Different atmosphere

Going for lunch Guide books

Working

Concept Café Model – Product : Competitor

List of potential competitors with a focus on The Pacific Place Tea Garden Café.

Cafe Food Facilities Demographics Locations Key Factor Sucess Age Price

Tea Farm Café

Wide selection of tea, sandwiches, soups, desserts

Small size, limited seating, no kitchen

Students, tea lovers, tea

enthusiasts, Hawaiians, visitors

S. King St, Honolulu

Quality, wide tea selection

18-24 $3-$30

The Pacific Place Tea Garden

Café

60 specialty teas and coffees,

pastries, sandwiches

Small size, limited seating, no kitchen

Health conscious consumers, tea and

coffee lovers

Ala Moana, Honolulu

Innovative products: tea and fruit fusions,

tea lattes; award-winning specialty

drinks

20-40 $3-$10

Fresh Cafe

Fresh sandwiches,

salads, soups, and drinks

Small size, limited seating, large

warehouse space in back

Artists, students, musicians,

entrepreneursKaka'ako

Large warehouse in back, host events for

local community20-40 $3-$10

Kahumana Cafe

Local, fresh organic meals

straight from farm to table

Medium size, big windows, located

on a farm

Health conscious consumers,

students, chefs, cooks

WaianaeFarm to table concept,

located on a farm, serve local food

20-40 $15-$20

Concept Café Model – Product : Competitor

Summary of competitor analysis

No competitor has an unique competitive advantage (CA).

Competitor’s Key Success Factors (KSF) are the following:

Unmet Needs: There are very few café’s that focus on Japanese tea and fusion tea.

In conclusion, there is a market for a café that focuses on vegetable tea and fusion tea experience.

Quality products, innovativeness, wide selection, along with a focus on health and sustainability.

Concept Café Model – Promotion

Promotion will be broken down into two focuses: media blitz and buzz campaign.

Social Campaign

Media blitz will include coverage via newspaper articles, T.V. highlights, magazines, etc.

Coordinated effort to encourage sharing via social media through engagement with active consumers. E.g. Facebook, Instagram, Twitter, Yelp events, soft opening, etc.

Media Blitz

• Newspaper: Midweek and Honolulu Star Advertiser

• Local T.V. stations: KGMB, KHNL, and KFVE

• Magazines: Pacific Business News, Hawaii Business Magazine, Honolulu Magazine etc.


Listed are several promotion ideas for the café, and we’ll focus in on two of them.

Promotion Ideas

1. Teach agricultural techniques to local Hawaiian farmers.

2. Collaborate with locals living in Hawaii.

3. Give out an annual Tokachi Pioneer Award. Will be given out at Startup UH or Startup Weekend Honolulu to the team that exemplifies a pioneer spirit.

4. Have a Tokachi Queen. Partner with the Cherry Blossom Festival and their beauty pageant.

5. Flash mob with Tokachi inspired music.


These promotion ideas are explained more in-depth.

Ideas Description

Teach agricultural techniques to Hawaiian farmers.

The farmers from Tokachi can share and teach their agricultural techniques to Hawaiian farmers. This will be beneficial to the local Hawaiian community, and in return, the Hawaiian farmers can share their knowledge with Tokachi. This will promote awareness to the agricultural community and will be mutually beneficial.

Collaborate with locals living in Hawaii

Through collaboration, the café will gain a wider audience. For example, the café can partner with Peter Dods, the president of Easy Music Center, and host a live music event featuring local Hawaiian music and Tokachi music. In addition, we can use other locals in different industries to create awareness and buzz.

Concept Café Model – Price : Cost (Financial Model)

Café ModelRevenue 33,761$ Revenue/sqft/month 47.48$ Cost of Goods Sold 11,141$ Cost of Labor 13,600$ COGS revenue multiple: 0.33Gross Profit 9,020$ Tusbo: 20.0

SQFT of property 711 Seats 25Rent 2,631$ SQFT Rental rate/month $3.70Common Area MX 1,067$ NNNProperty Taxes 284$ NNNBuilding Insurance 200$ NNNUtilities 2,500$ Marketing 1,688$ Marketing Rev multiple: 0.05Insurance 650$ Sub Total 9,020$

EBITDA -$ Interest -$ Depreciation -$ Tax 30% -$ Net Income -$

Cash flow -$ Enterprise Value -$

Avg Daily Sales 1,125.35$ Avg Occupied Seats 10 Hours Open 12Avg Sales/Hr 93.78$ Seat Hours: 120 Sales/Seat 9.38$

Break Even Revenue:$33,800 / month$1,125 / day~$10 / customer

Costs:33% COGS40% Cost of Labor27% Gross Margin

Size:711 SQFT20 Tsubo25 Seats

Staff:GM: 1Kitchen: 1Hourly: 5

Concept Café Model – Price : Competitor Comparison

Perceptual Map of Tea Cafes in Hawaii

Quality

$20

$10

$0

$5

$15

5 Star*1 Star** Global Review Site, Yelp’s star (evaluation) is assumed to reflect the quality of cafes

Pri

ce

Minimum price per customer from a cost point of view

Tea Farm Café

Tea Garden

Starbucks

Tokachi Café


Pictures of other Tea Cafes in Hawaii.- Tea Farm Cafe


Pictures of other Tea Cafes in Hawaii.- The Pacific Place Tea Garden Café


Pictures of other Tea Cafes in Hawaii.- Taste Tea

Concept Café Model – Place : Secondary Info (Land)


Demographics – 2320 South King Street

Population (2012) 1-mile radius 3-mile radius 5-miles radius

Male Population 34,652 107,089 149,830

Female Population 35,829 111,275 154,419

Total Population: Adult 62,205 187,995 255,005

Total Daytime Population 96,881 314,622 417,525

Total Employees 64,438 209,448 265,437




Total Population: Median Age 41 44 43

Total Population: Adult Median Age 46 49 50

% Total Population: 10 – 19 years old 8.93% 8.63% 9.91%









% Asian Alone 51.30% 53.58% 55.98%

% White Alone 23.97% 21% 17.68%

% Two or More Races Alone 15.32% 16.62% 16.27%

% Native Hawaiian and OPI alone 6.66% 6.71% 8.27%

% Hispanic 5.31% 5.04% 4.86%

% Black or African American 1.48% 1.09% 0.91%



Housing (2000) 1-mile radius 3-mile radius 5-miles radius

Housing Units 38,443 102,843 128,083

Occupied Housing Units 31,358 88,431 112,004

% Owner Occupied Housing 33.17% 41.38% 44.40%

% Renter Occupied Housing 66.83% 58.62% 55.60%

Vacant Housing Units 18.43% 12.98% 1255%



Income (2012) 1-mile radius 3-mile radius 5-miles radius

Household Income: Median $44,352 $54,591 $57,740

Household Income: Average $63,099 $77,008 $82,644

% Household income: Less than $25,000 26.12% 22.33% 21.38%

% $25,000 - $50,000 24.74% 19.94% 18.92%

$50,000 - $75,000 18.14% 17.59% 17%

$75,000 - $100,000 10.81% 12.25% 12.08%

$100,000 - $150,000 9.16% 13.76% 14.82%

$150,000 or more 6.34% 10% 11.84%




Male Population 17,943 82,510 125,055

Female Population 19,123 85,200 129,785

Total Population: Adult 31,259 144,268 217,599

Total Daytime Population 31,533 203,206 360,155

Total Employees 13,119 122,419 235,581




Total Population: Median Age 46 44 44

Total Population: Adult Median Age 52 50 50










% Asian Alone 58.46% 52% 54.19%

% White Alone 16.36% 23.36% 20.69%

% Two or More Races Alone 19.5% 16.63% 16.64%

% Native Hawaiian and OPI alone 4.52% 5.98% 6.55%

% Hispanic 4.35% 4.88% 4.81%

% Black or African American 0.47% 1.03% 0.99%



Housing (2000) 1-mile radius 3-mile radius 5-miles radius

Housing Units 13,653 78,927 115,132

Occupied Housing Units 12,990 66,687 99,995

% Owner Occupied Housing 60.54% 46.08% 45.07%

% Renter Occupied Housing 39.46% 53.92% 54.93%

Vacant Housing Units 4.86% 15.51% 13.15%



Income (2012) 1-mile radius 3-mile radius 5-miles radius

Household Income: Median $78,459 $57,351 $58,047

Household Income: Average $98,407 $85,087 $83,872

% Household income: Less than $25,000 11.64% 20.42% 21.03%

% $25,000 - $50,000 14.34% 19.29% 18.88%

$50,000 - $75,000 17.44% 17.3% 16.87%

$75,000 - $100,000 14.08% 11.85% 12.32%

$100,000 - $150,000 22.83% 14.12% 14.51%

$150,000 or more 15.03% 12.82% 12.31%



Product Promotion

Price Place

4PFood Restaurant

Food restaurant model, “Tokachi Kitchen” was developed and thought of from both supply and demand sides. And 4P was elaborated in greater details.

Food Restaurant Model – Tokachi Kitchen


We Tokachi Café create “Ba” where the authentic culture of a region manifests into a unique localized experience to showcase Tokachi to the world while nurturing a sense of pride in identity to people in the region.

Mission Statement

Food Restaurant Model – Recap of mission statement

Food Restaurant Model – How can we create “Ba”?

Kita no yatai

Junko-san’s kitchen

Homey atmosphere

customer

customer

chef

customer

Food Restaurant Model – Product : Concept (Overview)

TOKACHI KITCHEN

An open-home kitchen concept restaurant featuring healthy, natural, fusion-Tokachi style food prepared and served by your own personal (mother) Tokachi Chef


Homey Healthy Tokachi

TOKACHI KITCHEN

Foods are not like so-called “Japanese food”(Sushi, sashimi…)

Chef serves healthy meals.

Customer can easily talk with chef.


Kitchentable

chef

customerFood is prepared and served by customer’s own personal chef.

Homey atmosphere

Healthy Tokachi meal

Fresh, natural, and locally produced traditional Tokachi fusion (w/ Hawaii) foods is served.

Food Restaurant Model – Product : Concept (interior)

Large, Open-home Kitchen

4-6 seats 4-6 seats

Move-able divider

Tables can combine

Wall art of Tokachi farmer/food/town/culture

Prep kitchen/cabinets

Head chef

Cooking student

Cooking student

sous chef

Food Restaurant Model – Product : Concept (Personnel)

Head chef / Sous chef1

Personable, friendly Tokachi Food and Culture Knowledge Skilled in Cooking

Cooking Student (Apprentice Program)

From local culinary school (KCC) Potential to move to Chef Position

2

Food Restaurant Model – Product : Concept (Menu)

Locally produced traditional Tokachi fusion (w/ Hawaii) foods can be new for customer.

Japanese restaurants in Hawaii

There are no specific lead items. Menu will be like tapas style(small-plate dishes) based on Junko-san’s recipes.

Food Restaurant Model – Product : Concept (Key Success Factors)

Key Success Factors (KSFs) = experience of personalized healthy home meal prerared and served by personable chef.

Visual Experience (beautiful and real home kitchen) Emotional Experience (important, special, warm,

safe, fun, and Ohana/Family feeling) Taste Experience (fresh, natural, healthy, local

product, made from scratch) Service Experience (excellent service/ personal

attention) Knowledge/Social Experience (Tokachi culture, food

source, cooking, socialize with friends, chef, student)

Key Success Factor

2

Food Restaurant Model – Product : Customer image

• Locals • Works in a professional field• Median Income in Honolulu (greater than $58,000) • Health conscious: nutrients/food awareness and support local products)• Likes Asian/Japanese food• Often goes to the restaurant with his family

Peter Dods (35 yrs old, male)

Food Restaurant Model – Product : Customer Analysis

Interviewed with HawaiiansCultural Differences:

1. Transportation:

Most of people go out to eat dinner by car: Legal issue difference

2. Food & Menu

•Already familiar with Japanese foods such as Kushiage, shabushabu,

izakaya menu and sushi

→Needs parking lot

→Legal limits of alcohol in Hawaii is .08%

→ Menu of foods need to be differentiated

→Serving food with forks instead of

chopsticks could be rude

2


Cultural Differences:

2. Food & Menu

•Menu written in Japanese shows

authenticity

•In the United State, most of food menu is

Categorization of Japanese food is

different

•Secret menu does not exist often in

Hawaii

•Less knowledge about some Japanese

food to stimulate ordering more

→ Written in both Japanese and English

→ categorized from appetizer and then main food menu

→ Useful for repeat customers

→Special menu/Today’s menu with description are effective

2


Popular Food :

1. Butadon 豚丼

2. Robatayaki 　炉辺焼き

2. Korean BBQ 焼肉 KAGURA

4. BBQ@ 千年の森

4. Dinner 　懐石料理＠十勝川温泉

4. Asparagus

4.Junko-san’s cone soup

Desert ：

1.Soft cream 　ソフトクリーム

2. 　 Ohagi おはぎ

2.Soy bean pudding 豆乳プリン

Food Restaurant Model – Product : Competitor

Potential competitors would be Fresh, Healthy and Natural restaurants.

Food Restaurant Model – Product : Competitor

Potential competitors would be Fresh, Healthy and Natural restaurants.

Competitor Summary No Competitor has any unique competitive advantage

Competitor’s key success: able to just provide consumer need for vegan and healthy food. However, there are limited offerings to meet the growing trend of locally produced and healthy organic offerings.

Un-Met Needs: There are very few healthy restaurants. Other needs are met by Whole Foods or Healthy Grocers. Whole Food is very profitable in Hawaii, and is already planning a third location opening in Ward-Ala Moana area.

Thus, there is still room for a successful health-conscious restaurant

Food Restaurant Model – Promotion

Promotion Plan 1) Similar to Café2) Need for public promotion of Chef or Visionary

Paid Promotion $5,000 budget prior to open 5% of sales in perpetuity Weekly Magazines (Light House, KauKau, MidWeek)

Media Promotion 3-Month media campaign, begin before hard open Features in documentary, local TV, radio, and print Arrange access to restaurant/cafe

Social Engagement Active social media (Facebook, instagram, yelp!) Employ “freemium” advertisement on Vivinavi, Yelp Host or attend culture, agriculture events

Food Restaurant Model – Price : Company (Financial Model)

Break Even Revenue:$53,180 / month$1,770/ day~$22 / customer

Costs:35% COGS44% Cost of Labor20% Gross Margin

Size:1000 SQFT28.1 Tusbo40 Seats

Staff:GM: 1 Kitchen: 2Hourly: 8

Restaurant ModelRevenue 53,175$ Revenue/ sqft/ month 53.18$ Cost of Goods Sold 18,611$ Cost of Labor 20,910$ COGS revenue multiple: 0.35Gross Profit 13,654$ Tsubo: 28.1

SQFT of property 1,000 Seats: 40Rent 3,500$ SQFT Rental rate/ month $3.50CAM 1,500$ NNNProperty Taxes 400$ NNNBuilding Insurance 200$ NNNUtilities 4,000$ Marketing 2,659$ Marketing Rev multiple: 0.05Insurance 800$ Sub Total 13,059$

EBITDA 595$ Interest -$ Depreciation 595.24$ Non CashTax 30% 0$ Net Income 0$

Cash flow 595$ Principle PMT, DepEnterprise Value 79,365$

Avg Daily Sales 1,772.51$ Avg Occupied Seats 10 Hours Open 8Avg Sales/ Hr 147.71$ Seat Hours: 80 Sales/ Seat 22.16$

Food Restaurant Model – Price : Company, Competitor & Customer

Prices driven by cost and market

COST: Income model requirement: 35% Cost of Goods Sold (COGS) and 44% labor COST + Pricing: divide costs by 79% (ex. Cost of Pizza is $6.50: 6.5/.79 = $8.22) 21% gross margin and compare with market value

MARKET: Comparables are Medium to High-end Japanese Restaurants in Honolulu Per-person Dinners range from $12 - $50 based on type of food (Udon to Sushi)

Ultimately the customer determines value and makes the decision to buy based on his/her own perception of: Quality (ingredients, taste, hospitality/service) Convenience (distance from home/work, speed of service, parking) Price

Food Restaurant Model – Price : Competitor Comparison (Healthy Food)

Price range of Healthy Restaurant in Hawaii

Price $10

Chef Chai

Simply JoyLoving Hut

Andy’s Sandwich

Green & Vines

Veggie Star

Peace Cafe

$40

$20

Break Even Revenue : ～＄ 22

$60

$30

$50Tokachi Kitchen

Food Restaurant Model – Price : Competitor Comparison (Healthy Food)

Price range of Japanese Fusion Restaurant in Hawaii

Price $10

$40

$20

Break Even Revenue : ～＄ 22

$60

$30

$50

Hiroshi Eurasion Tapas

Alan Wong’s Restaurant

Roy Yamaguchi’s

Izakaya Naru

Tokachi Kitchen

Food Restaurant Model – Price : Competitor Comparison

Pictures of other Japanese-Hawaiian fusion Restaurant in Hawaii- Izakaya Naru(Okinawa style)


Pictures of other Japanese-Hawaiian fusion Restaurant in Hawaii- Hiroshi Eurasion Tapas(Japanese chef, fusion)


Pictures of other Japanese-Hawaiian fusion Restaurant in Hawaii-Roy Yamaguchi’s(chef:Hawaiian, born in Japan)


Pictures of other Japanese-Hawaiian fusion Restaurant in Hawaii-Alan Wong’s Restaurant (chef’s father is Japanese)


Open kitchen style restaurant- Nanzan Girogiro(Kyoto Kaiseki)

Food Restaurant Model – Place : Cost (Financial Model)

Location: Central Honolulu- High concentration of Japanese restaurants- Rental Rate: ~$3.50/Sqft $124/ 坪 per month

KAKA’AKO

WAIKIKI

ALA MOANA

MOILIILI

MAKIKIDOWNTOWN

Food Restaurant Model – Place (Competitor & Customer)

KAKA’AKOMedian Income: $62,440 (Honolulu: $58,000)15-year redevelopment plan (Population 12,000 50,000 in 2030)Access to downtown for lunch servicesUrban lifestyle


Ala MoanaMedian Income: $45,307 (Honolulu: $58,000)High Concentration of Japanese RestaurantsAccessible by Waikiki Tourists


MOILIILIMedian Income: $43,800 (Honolulu: $58,000)Near Waikiki and University of HawaiiConcentration of Japanese Culture

＋

＋

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There are pros and cons to both Concept Café Model and Food Restaurant Model.

Food Restaurant

Concept Café

PROS CONS

-• Elaborate Tokachi food dishes can

be served (High Quality)• Experience of healthy home meals

are prepared and served by personable chef (Hospitability)

• Local cooking students in community are trained (Concept of Ba)

Comparison Matrix – Concept Café and Food Restaurant

• Initial capital required (rent & kitchen equipment) and running cost are high (High Cost)

• Success is highly dependent on chef (High Risk)

• There are many high-quality JP food restaurant (High Competition)

• Thanks to Tokachi Café Fund, the relationship with community can be easily established (Concept of Ba)

• Initial capital required (rent & kitchen equipment) and running cost are relatively low (Low Cost)

• Fusion meals and veggie tea can be competitive advantage (CA)

• Elaborate Tokachi food dishes cannot be prepared (Less Tokachi)

• Sales per customer is low and rotation rate is slow (Low Sales)

• Concept resonates only among people who share Community Café’s values and lifestyle (Less Reachable)

• Difficult to understand Goto-san’s univerzalized thoughts for Tokachi and communicate it to Hawaiian side

Verbalizing Client’s Thought

• Difficult to understand what other members are doing• Overtask• Feeling of trust

Language

• Students’ strength= can get primary information• Interviewed 75 people and did online survey for 62 people

Primary data / secondary data

Take Away – 　 Lessons we learned from Tokachi Project

Common difficulties of conventional MoG projects are intensified further in Tokachi project.

• Likely to lose our positioning, role• Listening to professions and private things from a variety of

professionals in HAPA

Big Scale

• Few fixed conditions• Difficulty of understanding real clients’ desire and vision • Great change in plan or strategy by small change

Starting from scratch

• Gap of motivation between Hawaii and Japan side• Gap of how to think • – Think about what we can do first, not what we want to do • Information organizing in Communication – Skype, Google drive

Global Project

Take Away – 　 Lessons we learned from Tokachi Project

Tokachi project’s uniqueness made it even more difficult to finalize it.

June 29 presentation_verf

Documents

Transcript of June 29 presentation_verf