Executive Summary

The Velvet Yeti Cafe is a California-inspired Mediterranean fast-casual restaurant on the Tahoe West Shore. The cafe menus avoid the standard burgers and pizza fare while providing food that remains accessible and familiar. It is the only option south of Sunnyside for casual, inexpensive, table service breakfasts. The Velvet Yeti Cafe serves the needs of both Tahoe-area locals as well as tourists looking for quick, healthy food next to the lake along the Tahoe West Shore. Velvet Yeti Cafe seeks to earn high gross margins through an innovative food offerings, partnerships with local purveyors, and the guidance of an experienced restaurateur.

Mission

To provide local, organic, sustainable food that is vegan first, dairy as a necessary enhancement, with meat as a garnish, in a fast-casual preparation with fine-dining attention to detail and quality. The Velvet Yeti Cafe is a family-oriented business that envelopes fast-casual dining with a unique mediterranean plates that are innovative yet familiar. The mission is not only to have a great tasting, destination food draw, but to cater to popular dietary restrictions with fresh, healthy, made-to-order preparations.

Keys to Success

  • Partner with existing premise to provide culinary draw that boosts alcohol & beverage sales
  • Provide exciting, unique yet accessible fast-casual food offerings with fine-dining attention to detail and quality
  • Actively manage COGS and adapt to market response to maximize profit

Objectives

  • Increase in sales from opening to end of first season (specific increase tbd based on actual numbers)
  • Maintain high gross margin through careful menu planning and costing
  • Constantly improve par holdings and inventory turnover

Market Analysis

The Velvet Yeti Cafe targets locals and tourists who are active restaurant seekers. There is a special focus on couples and families looking for good food while traveling around or vacationing on the lake. In addition to those visiting the area, The Velvet Yeti Cafe will target locals who are proximate to the West Shore. The general demographics are visitors from the Sacramento Valley and San Francisco Bay Area, retired couples residing along the North Tahoe and Tahoe West Shore, and young outdoor enthusiasts who live and work in Tahoe.


Dining opportunities for these demographics include:

  • Homewood area fast-casual dining

  • West Shore boating take-away opportunities

  • Breakfast and lunch options for individuals and families visiting the Homewood area

  • Special-event dinner service

Competitive Edge

Our first advantage is a unique service model. The customer experience is extremely important as an effective way of distinguishing The Velvet Yeti Cafe from other local businesses. All too often, area restaurants suffer from poorly trained FOH staff who diminish the customer's enjoyment of an otherwise strong menu. An exemplary dining experience will encourage repeat business. The cafe will employ a mixed service model in which customers are seated by service staff, but then place their order at the counter. Food is delivered by servers who continue to attend to customer satisfaction. We will limit standing wait times by quickly moving the customer through the ordering process and by having ready-made options available.


The second competitive advantage is a unique menu that avoids cliché tourist options while retaining familiar flavors and presentations. We fill a market-niche for breakfast venues otherwise unavailable in the area, while complimenting the existing lunch venues. The Velvet Yeti Cafe offers fast, fresh, healthy food for consumption on premises and for take-away. Food can be made cheaper and better by avoiding highly processed prepared foods and creating menu items from fresh products assembled on premises.


Tahoe area food offerings are an endless repetition of tired, unoriginal grill and deli items. Deli counters, burgers, fish tacos, steaks, and some vaguely Hawaiian-inspired dinners are available at multiple locations. By leveraging the Mediterranean theme, The Velvet Yeti cafe will provide a cohesive menu theme that lends itself well to fresh, seasonal, healthy preparations that are appropriately light for summer while remaining familiar and accessible.

Services and Products

Daily fast, healthy breakfast options
  • Unique twists on pancakes (baghrir) and eggs (shakshuka)
  • Endless potato bowls (refillable side dish)
  • Custom omelet station
  • Fresh, local, well-known meat and bakery products provided through partnerships with local businesses such as Mountain Valley Meats and Tahoe House
Daily fast, healthy lunch options
  • California-inspired Mediterranean cuisine
  • Customizable options made to order, similar to Chipotle. Choice of protein is served as
    • Sandwiches: pita pockets, lavash wraps, lettuce wraps 
    • Bowls: served on top of fresh greens
    • Toss: mixed with choice of rice or pastas, can be served hot or cold
  • Standard combinations will be suggested for those who prefer not to customize
Boat boxes: 4 options, no customization, served in 2, 4, or 6-pack quantities. Select different 2-serving options for variety. 
  • Constraints
    • Must be cold-held PHF, no heating required
    • No deli or pizza: avoid existing competition with established take-away businesses such as West Shore Market, PDF, Obexers, West Side Pizza
    • No lines, grab ‘n go only. Order ahead or walk in, pay and leave
    • No pre-packaged, processed shit. Focus on fresh, daily prep
  • Mediterranean serves this well. An array of standard options will be pre-packaged.
Customizable menu can easily support paleo, gluten-free and vegan options

Strategy and Implementation Summary

The following sections outline the strategy and implementation summary for The Velvet Yeti Cafe.

Sales Strategy

The North Tahoe and Tahoe West Shore markets are virtually unlimited during summer. Traffic levels meet or exceed service capacity given sufficient advertising and unique offerings. Financial anticipations are in excess of $1500/day revenue based upon similar businesses in the area.

The important elements of the sales forecast are shown in the following table (TBD, “Sales Monthly--Summer Season”, Sales Forecast, Total Unit Sales, Total Sales, COGS). Food sales will take a while to predict and stabilize, but careful management of inventory will ensure consistent break-even.

Milestones

TBD


Milestone

Start Date

End Date

Budget

Manager

Finalize kitchen LOI





Finalize menu





Finalize service schedule





Inventory estimation





Buying food for soft opening





Creation and distribution of fliers





Website





Production and completion of menus





Buying all supplies for kitchen





Staff Schedules




Restaurant Purchases

Kitchen Equipment (estimated)

Item

Quantity

Cost

Total

Cooking




Used 6 Eye Range w/ Griddle / Broiler / Dual Oven & Exhaust Hood

Garland R2831R

1

$2,795.00


$2,795.00


Used 30in Electric Char Grill 208 Volt 3 Phase

Garland ED30B

1

$650.00

$650.00

Used 44lb. Countertop Electric Deep Fryer

Keating 14TSCMR

1

$1,295.00

$1,295.00









Service




Used Beverage Air SP60-16C 60" 2 Door Refrigerated Sandwich Prep Table/Cold Line

Stock No. 19996

1

$1,295.00

$1,295.00

Champion 3 Well Electric Steam Table 208v

APW Wyott ST-3-208

1

$999.00

$999.00

Used Work Table with Undershelf and Can Opener - 72x30x34

Item #: 176825

2

$250.00

$500.00









Cold Storage




Used S/s Double Section Roll In Cooler Refrigerator

Traulsen RRI-232LUT-FHS

1

$1,895.00

$1,895.00

Used True T-23F 1 Door Bottom Mount Reach-In Freezer | Stock No. 19771

1

$1,395.00

$1,395.00

Dry Storage




Used 4 Wire Shelf 60x19 Restaurant Deli Dry Storage Rack

Item #: 172514

2

$115.00

$230.00

All Welded Pan Rack Holds 20 Full Size Pans Front Load

Advance Tabco PR20-3W-1X

Item #: 140113

1

$245.81

$245.81





Dishwash




Turbo Air 3-Compartment Sink - Left and Right Drainboards, Green World Series (TSA-3-D1)

1

$654.75

$654.75




Web Plan Summary

The Velvet Yeti Cafe will have a dedicated website. It will be the virtual business card and portfolio for the company, simple, contemporary and well designed. Our site will offer our menus, prices, reviews and happenings at the Yeti.

Our website will be used to try out new offers, starting with an on-line order feature for the Boater’s Boxes, and expanding if the concept gains favor with our customers. A customer will be able to order a selection for pickup using a credit card. Selections will be based on our pre-packaged meals available for take-away, with boaters being the target market. We will also be able to accept requests for catering.


The website will include email capabilities and online reservations and special events scheduling.

Management Summary

Shannon Madison has over 25 years of industry business management experience, with tenure growing industry icons that include Apple Computer and Google, Inc. Shannon earned her Grand Diploma in Culinary Arts from the distinguished French Culinary Institute (now known as the International Culinary Center) and received training under Top Chef Master and James Beard Award nominee Chris Cosentino in San Francisco, California. She has beens successful in single-handedly operating pop-up instances for the experimental kitchen, Lionfish, in Santa Cruz, California, and has been instrumental in the launch of their brick & mortar location.


In addition to her direct culinary experience, Shannon serves on the board of directors for the American Institute of Wine & Food, a non-profit founded by Julia Child, Robert Mondavi, and Richard Graff. During her tenure, Shannon has worked closely and continues to receive guidance from such culinary luminaries as Jacques Pépin, Daniel Boulud, Dorothy Hamilton, José Andrés and a host of others.

Financial Plan

TBD, requires additional financial information