Executive summary

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Pizza Rossa Ltd will create a chain of Italian-style quick service pizzerias in London.

The mission is to become the namesake brand for premium pizza al taglio (pizza by-

the-square-slice) in the UK.

Our delicious high quality square pizza is freshly made daily, easy to eat-on-the-go,

low-calorie and guaranteed to be served within 90 seconds from order. It is great

value for money too at £3.00 to £4.00 a slice. Extensive tests have already told us

customers love our pizza.

We will also serve best quality, high profit hot drinks and other great Italian food.

Key in our proposition is centralised production that leads to significant scalability in

number of outlets in prime high footfall locations.

Our business plan won the annual London Business School Business Plan

Competition and arrived second in the European final against teams from the best

European business schools.

Overview

Fast food experienced 16% growth during the crisis (Keynote) and is looking at 22%

further growth by 2016 (Mintel).

Our main competitors are Pret, Eat, MacDonald’s, Itsu, Tortilla and similar quick

service outlets, none of which sell pizza.

There is a growth trend, with seven Italian pizzerias al taglio in London in 2009,

twenty in May 2013 and a recent opening within Selfridges. All but two grew during

the period.

We don’t compete against Pizza Express and Domino’s because we target a different

segment.

Given the existence of the above pizzerias, we do not expect Pizza Express and others

to react to our presence. Should they respond, this would mean cannibalizing their

production systems, which is unlikely. If they react, once we expand, we will already

have momentum in London and start franchising elsewhere.

Industry and Competition

Pizza holds 11% share of the overall fast food market. In the last three months 40% of

restaurant goers ate Italian (Mintel, 2012).

55% of the British workforce takes lunch break every day of the working week,

spending on average 29 minutes. The average willingness to pay for a fast food meal

in central London is £6, which represents the average spend in our shops.

This is a business protected from economic cycles.

- During the recession many restaurant customers converged towards premium

quality fast food options.

- In economic boom times premium quality fast food attracts also less affluent

customers.

Pizza Rossa’s target customers are 18-45 year old, time-constrained office workers

craving a tasty, quick, easy-to-eat and light meal that is good value for money.

Target market

Our core product is pizza that tastes fantastic when re-heated and will sit at the top

of London’s pizza-by-the-slice offering.

Moreover, our pizza is served hot in less than 90 seconds from order great value for

money easy to eat on the go less than 300 calories per slice one square piece is

sufficient for a light meal.

We will also serve other Italian quality food and hot drinks to extend the selling hours

in the day.

Products

Corrado Accardi developed the business model after studying professional pizza-

making at a leading pizza school in Italy.

Subsequently he worked in a pizzeria al taglio to test the validity of the Pizza Rossa

concept.

Recently, he has run pop up events to further prove the concept by selling our pizza.

He achieved 74% average gross margin. Over 80% of the customers liked the pizza,

approved the price point and would purchase again.

Testing the Model

No incumbent London takeaway pizzeria has been able to scale up. Competitors need

kitchens in all new premises, which require restaurant or hot food takeaway. These

attract high premiums to rent licensed venues, bigger fit out costs, more labor,

inventory and equipment and lack of quality consistency between outlets.

Pizza Rossa’s dough-making process creates a competitive edge because our pizza is

made centrally and transported daily to our outlets. We do not need expensive

licensed premises and thus generate savings in rent premiums, capex and operating

expenses. Our strategy is to create a network of small retail outlets (15-40sqm, no

kitchen) in prime locations in high streets, shopping malls and railway stations, where

food will only be reheated at point of sale.

Due to our small outlet size, we do not compete for the sites with Pret, Subway, etc.

Strategy and Competitive Advantage

We will invest in online marketing campaigns, use a prominent PR agency to obtain

low-cost coverage by the media and offer loyalty schemes to local offices to maximize

repeat business.

Our initial target networks include Italians of London and the London Business School

community (i.e. over 40,000 Londoners). Access to them will be facilitated by our

being part of the London Business School’s Incubator.

Marketing

Corrado Accardi – Founder and CEO

- Executive MBA at London Business School

- 15 years in hospitality property development (incl. restaurant fit outs)

- Corrado has covered all costs to date and is committed full time to the venture

Robin Walker - Non Executive Director

- 35+ years in management of international food manufacturing, including two

major pizza plants

Luca Magnani – Co-Founder and Director of Marketing & Sales

- 15+ years in Brand Marketing and Digital

Dan Einzig – Co-Founder and Branding Guru

- 20 years in UK Food and Beverage branding

Management Team

We are seeking £430,000 seed funding in addition to our funds. The investment will

generate over 80% IRR and 16x equity return to the investors.

£280,000 will be used to cover the costs to open our initial production facility, our

first sales outlet in a prime location in or around the City of London and working

capital. Approximately 3 months later £150,000 will be used to open the second

outlet in a further nearby location.

No debt leverage has been assumed at this stage.

This business is eligible for SEIS and to date we have received verbal commitments in

excess of £200,000. We are currently discussing additional investments from angel

investors and will launch imminently a crowd-funding campaign.

Finance

Once the business model with the first two outlets is validated, we will increase the

number of outlets organically.

We foresee potential for 12 outlets to be opened in 5 years without further cash

injections. However, we believe momentum should be maintained with further

capital injections to fuel explosive growth.

Ultimately, we aim at opening 100+ outlets in London alone, expanding through

franchising in the UK and overseas and selling to supermarkets.

The most likely exit strategies will be a trade sale or a buyout by a private equity

investor.

Expansion and Exit

Expansion and Exit

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