Parkdale Meats, is a startup specialty butcher shop to be launched in the coming year. It will sell a wide menu of meats to customers including medium- and high-income residents of Parkdale, as well as high-income residents of neighboring towns, and high-end caterers.
Parkdale Meats is established as a limited liability company owned by its two co-founders. The store will be managed and directed by Robert Suidae, a veteran butcher with fifteen years experience in butcher shops and Eryka Auroch, an experienced retail food-service manager. Auroch will serve as the company's CEO and Suidae as the company's COO.
Products and Service
Parkdale Meats will sell aged beef, free-range poultry, fresh pork and domestic lamb. Upon request, the store will sell wild game such as buffalo, alligator, kangaroo, quail, and other specially requested items. The products will be purchased from suppliers within a 100-mile radius of the store to have minimal impact on the environment and to maintain product freshness. Products will be purchased as whole animals and butchered in the store by trained butchers. The sales staff will offer suggestions of substitutions or help customers fulfill their orders through special orders in order to make sure all customers leave satisfied.
The meat and poultry industry is the largest segment of U.S. agriculture. Total meat and poultry production in 2007 reached more than 91 billion pounds. U.S. meat consumption was 55% red meat (beef, veal, lamb, pork, and mutton), 8.2% fish, and 36.8% poultry in 2007. Meat is sold through retail establishments including restaurants, grocery stores, and butcher shops. Independent butcher shops have decreased in number over the last ten years, as sales of meet have fallen slightly and moved increasingly to grocery stores and big box retailers. However, this has created an opportunity for specialty butcher shops in markets which provide only basic options through these larger retailers.
Competitors for Parkdale Meats fall into the following categories:
- Grocery Stores - 7 stores in greater Parkdale area
- Big box retailers (Wal-Mart and Costco)
- Butcher shops (Red's Meats and Bay Avenue Butchers)
Parkdale Meats will establish its competitive edge through the expertise of its founders. Robert Suidae brings with him existing relationships with the best suppliers of meat as well as an understanding of the craft of butchering. Coupled with Eryka Auroch's understanding of food service management, sales record in business to business sales, and financial acumen, the pair will have an edge over the town's other butcher shops and grocery stores within its niche market.
Funding for the launch of the business will be provided primarily by equity from the two partners. Each will contribute in equal share from their savings to launch the business. The remainder of financing will be made up in temporary credit card debt taken on by the two founders and accounts payable from delayed payments on start-up costs. The business seeks a business loan to finance the purchase of the equipment needed.
The business will reach positive cash flow in its 8th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners. Revenue will top $XXXXX and profit will reach about $XXXX in the third year of operation.
Parkdale Meats will measure its success by its ability to achieve the following objectives:
- Build sales to $XXXXX annually within three years.
- Receive 60% of sales through advance orders, either by phone or Internet, with 40% of sales through walk-up traffic.
- Achieve cash flow break-even within six months.
- Become profitable by the second year of operation.
Parkdale Meats is a specialty butcher shop which seeks to serve the highest quality meats, cut to customer specifications, and become the foremost specialty meats provider in the greater Parkdale area.
Keys to Success
Parkdale Meats must follow these principles in order to achieve success in its market:
- Maintain high quality standards for its suppliers and continuously monitor this quality.
- Preserve meats in optimal conditions to maintain freshness while in the store.
- Maintain excellence in the skill of butchering meats through hiring, training, and supervision of staff.
- Listen carefully to customer needs and respond with custom-cut products, whether in person, over the phone, or through Internet orders.