entrepreneur class business plan assignment

Christopher Stowell

Hui Ma

Yaqian Shi

Ying Wang

Chisty Market

Business Plan Parts Ⅱ and part Ⅲ

Industry Analysis

The industry we are entering is a industry that has recently been brought to the lime light and has been called “grocerants.” This name comes from the combination of “grocery” and “restaurant” and it describes exactly what the members of this industry offer. This industry is rapidly growing and traditional restaurants are actually afraid of their market shares being eaten away. Working people are becoming busier and busier and are turning to more conveinient, non-traditional methods to get dinner. Grocerant sales have increased 30% over the past eight years, accounting for $10 billion of consumer spending in 2015. By NPD’s count, more than 40% of the U.S. population purchases prepared food from grocery stores — and this number could grow as Millennials increasingly are drawn to the industry (forbes.com).

The grocerant industry is a fragmented industry. There is alot of opportunity in the grocerant industry to take a leadership position above the competition. Whole Foods and Publix offer both groceries and prepared foods, but it is indirect competition to the grocerants because they are much larger and really just grocery stores. My Fit Foods is gaining ground in the industry, but only has stores in four states, all in the western united states. Another player in the industry is Papa Murhphy’s with over 1,300 stores. Other industry participants range from the new yuppy-chic to conventional-seeming grocers, like H-E-B Grocery, Buehler’s, and Hy-Vee. Right now, the clear leader in the industry is Whole Foods. The industry is very broad and manifest in business ideas. For example, buying a meal at a restaurant and taking another meal to go fits into this industry. Most firms in the industry are more innovative and are taking advantage of new opportunities.

In order to grow in this industry, firms must be constantly monitoring the wants and needs of their customers. The current major trends are towards offering fresher foods, offering healthier foods, and offering lower prices. There are also trends towards a large variety of foods and faster service. The industry offers great long term prospects. This is because the industry appeals mainly to millenials who are in the work fore fully and here to stay for a while. Their interests are a driving force in today’s economy.

Company Description

General Description

The name “Chisty” is a combination of the words “Chinese” and “tasty”, which means it aims to bring the tastiest Chinese food to customers. In Miami, there are no small stores that combine the conveinice of a grocery with the deliciousness of a restaurant. Chisty will be a Chinese food mini mart with a restaurant-buffet section that offers the convenience of eating and buying food at the same place. Most Chinese restaurants and markets are far away from the University of Miami. With our conveinient location close to the Coral Gables campus, we will be able to capture a large market of students and employees as well as othe traffic in Coral Gables.

Company History

The idea for the company came from seeing the potential in the grocerant market and a gap in the marketplace of Chinese food at the University of Miami in Coral Gables. Since the majority of our founding team is Chinese, we had the idea to bring real Chinese food to the University of Miami in a convenient and tasty way.

Mission Statement

1) To ensure that each guest receives professional, friendly and prompt service.

2) To provide a safe, clean, and attractive place for guests to enjoy.

3) To provide a fair price with highest standard of quanlity.

4) To provide a convenient manner for guests to obtain their food.

Products and Services

We are dedicated to providing quality oriental food to our guests. With over 3,000 products, we have one of the largest ranges of Chinese and Oriental foods and ingredients.

· Drinks: alcoholic beverages, soft drinks, tea/hot drinks

· Noodles: instant noodles, other noodles.

· Sauce/oil: cooking oil, chilli sauce, soy sauce.

· Fresh/ Frozen: fresh vegetables, fruit, frozen meat, dumplings.

We have invested in modern fridge and freezer units, making it easier for you to find exactly what you need in our store. We have also had four state of the art conveyor belt tills installed, which will allow us to serve you at the check out more effectively; meaning shorter line times.

Chisty will have a “City of the Week” promotion. From Monday to Friday every week, Chisty will have a breakfast special and three lunch specials from a particular Chinese city. The city will change every week. All of the other regular foods will still be offered in addition to the specials. In the eating area, a television will play relaxing Chinese programming, either popular Chinese movies or television programming. This will keep customers entertained while they eat. Chisty will also have specials for the Chinese holidays. Chisty will sell the representative food of the holiday and many free samples will be available for customers.

Current Status

Address: 1101 S Dixie Hwy, Coral Gables, FL, 33146.

Contact: 305-666-8888

Legal Status and Onership

Chisty will start as Limited Liability Compay. Because the majority of our owners are Chinese (not U.S citizens), we cannot form an S corpration. An LLC elect to be taxed as a sole proprietor, partnership, S corporation, or corporation which proved much alot of flexibility. Unless otherwise specified by the Articles of Organization, LLC's enjoy perpetual continuity similarly as in a corporation. In this situation,there are no restrictions that exist on the number of shareholders. So, we will welcome any people who are interested in investing in Chisty. Profits are taxed only at the shareholder level which avoids double taxation. Even though there are some disadvantages of LLC, we believe we can overcome them. Based on other Chinese restaurant and markets’ experiences, we don’t think it will be too hard to start up in Miami. Chisty will communicate with some chinese restaurants and markets at first, and may get their support or investment. We will try our best to avoid legal disputes in order to keep our operations stable.