House of Lasagna: HOL On-The-Go

Presented to:
Presented by:
Meet my cousin…

Charmaine
• Young working professional

• Lives in Manila

• Glued to her phone (i.e. FB & IG)

• Starting out her career, busy lifestyle

• Doesn’t have time to cook meals

• Healthy, cost-effective, innovative cuisines

2
What growth
strategy should
House of Lasagna
pursue to reach its
ambitious goals?

3
preferred solution
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EVALUAT
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EXPOSE

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EXPAND
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HOL On-The-Go: E3njoy Lasagna expansion strategy 4
key issues

5
key issues

- importance +
Brand Awareness
 Critical for future growth

+
Demographic Shifts
 Growing urbanization (i.e.,

urgency
increased traffic, take-out)
 Millennial population
 Increased purchasing power of
Filipinos

-
Profitability

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
analysis

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expansion financial projections
2020 Target
Income Projections to 2020 Considerations
In ₱ million

200 Company-Owned Locations

180
• ₱5.5 million to open new location
160
• Salary expenses
140
• Two chefs
120
• Ten employees/restaurant
100
Franchise Locations
80

60 • 5% franchise fee of anticipated

40 ₱1.2 million revenues
20 • Selection of franchise partners
0 • Brand equity
2018E 2019E 2020E
Business as Usual Additional 18 Company-Owned Locations
Additional Franchise Locations

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
competitive landscape
High
Number of Locations

33 cafés
Locations 7 restaurants 34 restaurants 52 restaurants
12 kiosks

Marketing Online (Facebook), Online (Facebook), Online (Facebook), Online (Facebook)

Strategies on-site ads blogs, website website, ads magazines, blogs

Low High
Price per Meal
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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
social media presence
Fragmented
Events focused
Content pages
on- promotions,
main brand & individualkey
leveraging locations Competitor Facebook
Customer engagement Tracker
holidays.
•
Location
Not Some off
leveraged
listings brand coloured
unclear
customer logos
retention and&brand
content
across channels Pancake House
awareness 336K
Mary Grace Cafe

46K 152K
Conti’s
followers 457K
Mom & Tina’s
23K

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
Manila location overview

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High Traffic Areas
7 (20 minute drive)
Current Locations
SM City Fairview
San Juan Main Branch Ortigas Center
Della Rosa Makati Sta. Lucia Grand East Mall
Eton Centris
SM North Edsa
Robinsons Place Manila
SM Mall of Asia Greenbelt
SM Mega Mall
V-Mall Greenhills

3 4
Franchised Owned

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
opportunities

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opportunities

1 2 3
Pivot Internationally Local exposure
distribution focused and expansion
strategy expansion

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
 1 pivot distribution strategy
Takeout and catering services, pivot from dine-in to cater to millennials

Benefits Addressing Key Issues

 Addresses worsening transportation issues

?
 Reduced overhead, infrastructure costs

Brand Awareness
Products accessible to larger population, greater reach

Considerations
✓ Demographic Shifts
 Brand misalignment, pivot from dine-in and ignore ambiance


Customer retention and confusion
Mapping out logistics of services X Profitability
 Lost revenue from dine-in

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
 2 internationally focused expansion
Development of Shanghai market and other regions in Asia i.e. Taiwan, Indonesia

Benefits Addressing Key Issues

 Leverage existing Shanghai location to springboard

?
 Customer base in untapped markets, market penetration

Brand Awareness
Brand recognition

Considerations
? Demographic Shifts
 Premature strategy, strategic partners in new locations

X
 Cultural alignment and product development necessary
Profitability
 Capital investment
 Decentralized management team

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
 3 local exposure and expansion
Opening small pop-ups and kiosks to enhance brand awareness and reach customers with product

Benefits Addressing Key Issues

 Physical reach of product, brand awareness and name

✓
recognition

Brand Awareness
Targeting new customer segment with accessible options
 Push to dine-in restaurants

✓
 Flexibility of locations, test market for locations
Demographic Shifts
Considerations

✓
 Re-evaluation of existing customer experience
 Tactical locations and product mix availability
Profitability
 Employee training and hiring

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
decision matrix
1 2 3
Pivot Distribution Internationally Focused Local Exposure and
factor weight Strategy Expansion Expansion

Brand awareness 0.5 3 3 4

4 3 5
Demographic Shifts 0.3
2 1 4
Profitability 0.2
3.1 2.6 4.3
TOTAL 1.0

evaluation legend 1 5
low high
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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
preferred solution

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value proposition

1
Best-tasting lasagna
 Variety of lasagna at economical prices

2
Excellent customer service
 Developing relationships with customers

3
Restaurant ambiance
 Upscale yet comfortable dining experience

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
preferred solution: HOL On-The-Go
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EVALUAT = EXPOSE

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EXPAND
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E3njoy Lasagna: HOL On-The-Go expansion strategy

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
marketing funnel

 Pop-ups in high traffic areas

 Promotional videos
Awareness

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
marketing funnel

 Pop-ups in high traffic areas

 Promotional videos
Awareness
 Centralized marketing campaign
Interest  3rd party restaurant websites

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
marketing funnel

 Pop-ups in high traffic areas

 Promotional videos
Awareness
 Centralized marketing campaign
Interest  3rd party restaurant websites

 Social content, promotional posts, event invites

Consideration  Sampling

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
marketing funnel

 Pop-ups in high traffic areas

 Promotional videos
Awareness
 Centralized marketing campaign
Interest  3rd party restaurant websites

 Social content, promotional posts, event invites

Consideration  Sampling

 Lasagna Loyalty Cards

Loyalty

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
marketing funnel

 Pop-ups in high traffic areas

 Promotional videos
Awareness
 Centralized marketing campaign
Interest  3rd party restaurant websites

 Social content, promotional posts, event invites

Consideration  Sampling

 Lasagna Loyalty Cards

Loyalty
 Influencer collaboration, photo wall
Advocacy  Customer posts for bonus stamps

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
evaluate | expose | expand timeline: Nov ’18 – May ’19
E3njoy Lasagna

Pop-Up Logistics Human Capital Marketing Efforts

Component Owner
Identify target locations
Yasmin Unda
 Test market for physical locations

Location licenses Yasmin Unda, Jannah Torres

Source pop-up material & infrastructure

Yasmin Unda, Jannah Torres
“HOL On-The-Go”

Food preparation logistics Erick Cogmon

 Limited menu (beef lasagna & fried chicken)

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
evaluate | expose | expand timeline: Nov ’18 – May ’19
E3njoy Lasagna

Pop-Up Logistics Human Capital Marketing Efforts

Component Owner
Cook Storage Delivery Sell
HireChef’s
additional
prepare staff to runCooked
pop-ups & chef at Each morning to Products displayed
Jannah Torres & HR
dine-in location for prep at locations
after dinner
rush for next
products stored pop-up locations,
leverage
under heat lamps,
warmed for
day 02 over night 03 delivery 04 customers 05
system

Develop new workflows & processes to

Yasmin Unda
incorporate pop-up needs

Train
Hirenew employees on pop-up set up,
& Train Pack &
New chef per Yasmin Unda Replenish
operations
location to cook
Store and clean
for pop-ups
daily
01
Food Prep Logistics 06

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
evaluate | expose | expand timeline: Nov ’18 – May ’19
E3njoy Lasagna
Marketing Funnel Tracker
Pop-Up Logistics Human Capital Marketing Efforts
Awareness

Interest
Component Owner
Crush 10 orders of Consideration
Centralized marketing campaign lasagna & you get a
 New pop-up hype content “HOL On-The-Go” free order on us! Loyalty
 Franchisee marketing guidelines
Advocacy
 Across Facebook Jannah Torres & Social Media
Manager
Social media updates
 Pop-up event pages
 Customer relationship management

Loyalty program development Some restrictions may apply. Valid at pop-up shops
Jannah
only. Torres
Free meal redeemable at dine-in locations
 Drive to dine-in locations only. Offer ends 12.12.20.

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
evaluate | expose | expand timeline: June ’19 – Dec ’20
E3njoy Lasagna
Marketing Funnel Tracker
Marketing Efforts Pop-Up Logistics houseoflasagna
Awareness
46K

Interest
Component House ofOwner
Lasagna
Restaurant
#EnjoyLasagna
Consideration
Follow us on Facebook:
https://www.facebook.com/houseoflas Loyalty
agna/
Launch Instagram page and maintain
Advocacy
Facebook page
New Social Media Manager
 Promotional video (#EnjoyLasagna)
 Leverage popular Filipino influencers
(@berkcankat)

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
evaluate | expose | expand timeline: June ’19 – Dec ’20
E3njoy Lasagna
Marketing Funnel Tracker
Marketing Efforts Pop-Up Logistics
Awareness

Interest
Component Owner
Consideration

Loyalty
10 pop-ups HOL On-The-Go Advocacy
 Hours of operation: 10 am - 9 pm
 Free sampling Yasmin Unda, Jannah Torres,
 Loyalty card extra stamp if post on social Erick Cogmon
media
 Flyers for dine-in locations

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
evaluate | expose | expand timeline: Dec ’20 +
E3njoy Lasagna
Marketing Funnel Tracker
Location Expansion
Awareness

Interest
Component Owner
Monitor sales demand at each pop up Consideration
Jannah Torres
location Loyalty

Increase physical store expansion based on Advocacy

Jannah Torres
highest demand location
Future considerations

Physical store expansion

 Test pop-ups in Shanghai & other Philippines locations Jannah Torres
outside of Manila

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
HOL On-The-Go cost projections
E3njoy Lasagna

Cost

Pop-up infrastructure and licensing ₱ 8.7 million

Personnel costs ₱ 6.8 million

Sampling costs ₱ 27 million

Promotion ₱ 1 million

TOTAL PROJECTED COSTS ₱ 43.5 million

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
HOL On-The-Go revenue projections
E3njoy Lasagna

Revenue

Pop-up revenues ₱ 135 million

Additional revenue to restaurants ₱ 45 million

TOTAL PROJECTED REVENUES ₱ 180 million

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
key success factors

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key success factors

FACTOR Increase customers in Brand awareness Physical store

dine-in stores expansion

TARGET
20% 85% 25

TIMELINE

2019 2020 2023

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
risks & mitigation

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risks & mitigation

risk trigger likelihood impact mitigation strategy

Cannot
Pivot to city centres/high traffic
Unable to enter malls obtain Low High
areas (carts vs. pop-ups)
permits

Unable to keep up with Insufficient

Monitor/increase purchasing of
pop-up product food product Medium Medium
ingredients, hire additional staff
demand for pop-ups

In-store
Consider pushing alternate
Unable to convert pop- traffic
Medium Medium distribution channels (i.e.
up customers remains
delivery)
unchanged

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key issues analysis opportunities preferred solution implementation key success factors risks + mitigation appendices
HOL On-The-Go will gain brand awareness and
reach its growth targets
houseoflas
agna
46
K
House of L
asagna
Restaurant
#EnjoyLasa
gn a
Follow us o
n Facebook
https://www :
.facebook.c
oflasagna/ om/house

EVALUAT EXPOSE

=
=
=

EXPAND
E

#EnjoyLasagna
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APPENDICES

Short Term Cost Projections 39

Medium Term Cost Projections 40

Medium Term Revenue Projections 41

Company Owned/Franchising Analyses 42 - 43

New 2023 Target Projections 44 - 46

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E3 short-term cost projections
Short-Term Costs

Pop-up Costs ₱ 6.2 million

Number of Pop-ups 10

Infrastructure cost/pop-up ₱ 500,000

Signage cost/pop-up ₱ 20,000

Food handling equipment/pop-up ₱ 100,000

Personnel Costs ₱ 400,000

Social Media Manager ₱ 400,000

TOTAL PROJECTED SHORT-TERM COSTS ₱ 6.6 million

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E3 medium-term cost projections
Medium-Term Costs
Pop-up Costs ₱ 2.5 million

Number of Pop-ups 10

Personnel Costs ₱ 6.4 million

Pop-up staff (2 per location) ₱ 4 million

Additional Restaurant Chefs (6) ₱ 2.4 million

Promotional Costs ₱ 27 million

Cost of sampling/lasagna promotion ₱ 27 million

Marketing Costs ₱ 1 million

Influencer ₱ 500,000

Paid Content ₱ 500,000

TOTAL PROJECTED SHORT-TERM COSTS ₱ 6.6 million 40

E3 medium-term revenue projections
Medium-Term Revenues

Pop-up Revenues ₱ 135 million

Number of portions sold/day/pop-up 140

Average ₱ per portion ₱ 275

Number of operating days/pop-up 350

Additional Restaurant Revenues ₱ 45 million

Revenue Increase 10%

TOTAL PROJECTED SHORT-TERM COSTS ₱ 180 million

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analysis of 2020 target – company owned

42
analysis of 2020 target – franchising

43
new 2023 target projections – new customers
New Customers from Pop-Ups New Customers from Social
Content
Number of pop-up kiosks 10 Target # of Instagram followers by 40,000
2020
Number of customers/day/pop-up 200 Conversion to restaurant customers 2%

Number of operating days/pop-up 350 Influencer followers 600,000

Number of total customers 700,000 Conversion to restaurant customers 3%

Conversion to restaurant customers 25% Additional customers from paid 5,000

content

New Customers from Pop-Ups 175,000 New Customers from Pop-Ups 23,800

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new 2023 target projections
In ₱ million
₱700 30

₱600
25

₱500
20

₱400

Locations
Income

15
₱300

10
₱200

5
₱100

₱- 0
2017 2018E 2019E 2020E 2021E 2022E 2023E

Net Income Number of Locations

45
new 2023 target projections

45