VERSION 1.

0
OCTOBER 15, 2016

START-UP BUSINESS PLAN

BUSINESS IDEA: GIGAKITCHEN

Prepared by:
Neelesh Vasnani
5th Year Industrial Engineering Student
Submitted to:
Engr. Bernabe Ponla
IE ELEC 3 Entrepreneurship Instructor
University of San Carlos Technological Center
Nasipit, Talamban, Cebu City, 6000 Cebu, Philippines

TABLE OF CONTENTS

I.

Business Description ..........................................................................................................1

A. Rationale ..........................................................................................................................1
B. Industry Background ........................................................................................................2
C. General Description ..........................................................................................................3
D. Goals and Milestones........................................................................................................4
E. Uniqueness of the Business Idea .......................................................................................7

II. Marketing ...........................................................................................................................9

A. Market Research and Analysis ..........................................................................................9
1.

Target Market ...............................................................................................................9

2.

Market Size and Trends.................................................................................................9

3.

Competition ................................................................................................................ 11

4.

Estimated Market Share .............................................................................................. 12

B. Marketing Plan ............................................................................................................... 15

1.

Market Strategy Sales and Distribution .................................................................... 15

2.

Pricing ........................................................................................................................ 17

3.

Promotional Assets ..................................................................................................... 18

4.

Advertising Strategy ................................................................................................... 19

III. Operations ........................................................................................................................ 20

A. Location ......................................................................................................................... 20
B. Operational Procedure .................................................................................................... 21
C. Personnel Requirements ................................................................................................. 22
D. Proximity to Suppliers .................................................................................................... 23
IV. Bibliography ..................................................................................................................... 24

I. Business Description
A. Rationale
As human beings here on earth, we require essential nutrients and minerals in order to
live a healthy life. We obtain these nutrients and minerals by ingesting food and water.
Moreover, the quality of the food we eat highly affects the physical and mental performance
of our body, after all, we are what we eat.
Traditionally, people used to set aside a time in their day to buy ingredients for cooking
food on a routinely basis. One or two members of the family, usually the housewife, would
then prepare the daily meals using these ingredients. This lifestyle promoted healthy living
and wellness among the people, resulting in high life expectancy rates.
However, as our world has evolved over the last few decades or so, and people have
become more and more busy with their lives due to stressful jobs and the like. Consequently,
people do not get the time to cook fresh and home-made food anymore, except in some rare
existing families with housewives, maids, or responsible individuals who are actually
willing to cook for themselves. One must be aware that this phenomenon is definitely
increasing and eventually everyone will end up eating restaurant meals especially from fastfood chains. The epidemic problem is that the entirety of these restaurants offer food that is
flat out unhealthy for us. The main reason why this food is unhealthy is because restaurants
want their food to taste delicious while being prepared at a low cost at the same time. To
achieve this, they use artificial and unhealthy ingredients. People simply do not have time,
and they are forced to eat restaurant foods, even if most of these people realize that they are
losing valuable years of their lives by doing so. There might be people who actually cook
for themselves, but they are in the minority. A 2015 study published in The Washington

GIGAKITCHEN | BUSINESS PLAN

Post revealed that less than 60 percent of suppers served at home were actually cooked at
home during the year 2014 (Ferdman, 2015). Only thirty years ago, this percentage was
closer to 75 percent. With that being said, it can be confidently said that we definitely have
a problem here, which must be addressed.
The proposed business idea attempts to solve this problem. What if people could eat
healthy meals at home without cooking for themselves? What if there was a business venture
that served as a kitchen for everyone in the city? In order to answer these questions, the
proposed idea is explained in detail in next sections.

B. Industry Background
Due to the increasing health-consciousness amongst many, there have been some
efforts in the food industry to provide for healthy food. These efforts are outside the
restaurant industry, which has not and cannot change to being healthy due to economic and
taste reasons that drive demand. To address the need, the first efforts came in around 2010
through ingredients delivery services, in which fresh chopped ingredients are shipped at
your door, and all you have to do is to cook them. These services were first introduced in
the Americas and Europe, where they were most needed at the time. Some popular services
in the U.S. include Blue Apron and HelloFresh. Overtime, some services started to offer full
meals instead of just the ingredients, and these services also found success in the industry
together with the ingredient delivery services. The industry leader in meal delivery services
in the U.S is currently a company called Plated. Today, both the meal and ingredient
delivery services are equally poised in the market.
However, these types of businesses are practically non-existent in Cebu, Philippines,
the city where the business idea is being proposed. Despite the blooming restaurant and caf
GIGAKITCHEN | BUSINESS PLAN

industry in the city, meal delivery services are nowhere to be found. The closest business to
this is Chef-on-Demand, which started delivering meals to working professionals in I.T.
Park, Cebu, and are currently delivering in more areas around Cebu. However, even their
meals arent exactly healthy, partially defeating the purpose.

C. General Description
To address the aforementioned need, the proposed business idea is a large-scale
healthy meal delivery service located in the heart of Cebu, Philippines with an aim to
provide healthy and delicious meal kits to a vast number of customers with affordability and
convenience in mind. The healthy meals would include a plethora of non-vegetarian as well
as vegetarian choices. Generally speaking, the business venture would basically have one
headquarter where meals are freshly produced each and every day based on weekly/monthly
meal subscriptions received online or by telephone by the customers. These healthy meals
would then be delivered at the doorstep of the customers in a systematic and logistical
manner, in order to accommodate many customers within a limited meal duration period
(breakfast, lunch, dinner). The only way the customers would be able to avail of the healthy
meal kits would be to subscribe to a weekly or monthly customizable meal plan. There
would be no one-time orders or take-outs similar to those in restaurants. Lastly, customers
would able to select, monitor and change their meal subscription plan using a website and
accompanying app for a seamless experience.
The aforementioned just describes the highlights or the general description of the
business idea, which is expounded in further detail in the sections to come throughout this
business plan.

GIGAKITCHEN | BUSINESS PLAN

D. Goals and Milestones

Without proper planning and goal-setting, any business venture is bound to fail. This
concept applies even more to out-of-the-box and innovative businesses since these businesses
are not readily grasped by the market. Primarily speaking, it is important to first set the big
picture for the business, which can be done by setting the vision, mission and the organizational
core values. These provide a direction and motivation for all the activities that occur over the
life cycle of the business. Every move of the business shall be steered in adherence to these.
Vision
To lead the way in fostering a healthier community.
Mission
To provide a vast array of delicious, affordable, and healthy meals to a large customer base in
order to help people live healthier lives more conveniently.
Organizational Core Values beliefs that run the business

Quality: It is an obligation to embed superior quality into the healthy meal kits, with
continuous improvement being key. Food quality is a major determinant of the meals
healthiness.

Customer Satisfaction: Satisfying and delighting customers, and always surpassing

customer expectations by providing excellent service.

Integrity: Acting with ethics and always adhering to standards and laws.

Interaction: Maintaining fun and worthwhile relationships with customers and business
partners, as well as a united kitchen thats in it together.

Purpose-driven: Always keeping the big picture in mind (the health and wellbeing of
people) rather than the money - by working hard to achieve this purpose, profits and
growth will follow automatically.

GIGAKITCHEN | BUSINESS PLAN

With the vision, mission, and core values there to provide an initial direction for the
business venture, it is now possible to set the goals that will ensure success of the business
idea. These goals of course will steer the business venture to where it wants to be. Moreover,
to achieve these goals, it is important to set corresponding milestones for each goal. These
goals can also be categorized as either short term goals or long term goals.

Short Term Goals

Goal 1: Get the business up and running
Milestones:

Pitch presentation to investors and get funding approved

Finalize contracts with suppliers for meat, vegetables, and other food
ingredients; and a third-party provider for meal kit packaging materials.

Set up the construction of the facility (the GigaKitchen). Procure three

(3) shuttles for delivery of meal kits to customers.

Preparation and training of staff (Manager, Chefs, Sanitary workers,

Drivers, etc.)

Development of website, app, and social media materials

Public Launch

Goal 2: Establish the business in the market

Milestones:

Create awareness in the market through aggressive start-up marketing

Register nutritional information of meal kits in FDA (Food and Drug

Administration) of the Philippines.

GIGAKITCHEN | BUSINESS PLAN

Deliver to major areas of Cebu city like Lahug, Apas, Mabolo, Guadalupe,
Kaputhaw, Banilad and Downtown.

Provide soft opening promos (i.e. free trial of meal kit subscription for
first week)

200 subscribed customers in the first month

Goal 3: After 6 months, start delivering to the other areas of Cebu province like
Mandaue City, Lapu Lapu City, etc.
Milestones:

Set aside marketing budget to establish customer base in these areas

Procure 5 more delivery shuttles

Goal 4: High financial profitability

Milestones:

Return on Investment within 1 year

Net profits of 50% more than expenses after 1 year

Profits of at least Php 500,000 a month. Invest in cost reduction for

production of meals if this number is not yet achieved

Financial growth of at least 20% from year 1 to year 2

Goal 5: After 1 year, attempt necessary changes in product based on customer

feedback in terms of consumer behavior, likes, patterns etc. towards the products
and services of GigaKitchen.
Long Term Goals
These long-term goals can be seen as the goals that will enable GigaKitchen to
achieve its vision and mission in the long run. The goals shall turn into projects in

GIGAKITCHEN | BUSINESS PLAN

times when GigaKitchen is facing smooth operations and stable profitability.

Although not prioritized, these long-term goals are very important in achieving the
true GigaKitchen, as envisioned from a founders point of view.
Goal 1: Invest in eco-friendly GigaKitchen
Goal 2: Provide more customization for meal kits (Make-to-Order) to customers
Goal 3: Open two more GigaKitchens within Cebu to mitigate transportation time
and costs in order to provide fast service to more locations in an efficient manner
Goal 4: Invest in a study for optimal routing to reduce transportation delay
Goal 5: Attempt independence from investors and release private stocks
Goal 6: Expand the business nationwide (Philippines) by offering exclusive
distribution franchises per location
Goal 7: Become a worldwide known brand and icon for healthy meals, in line with
the vison of being a kitchen for everyone
Goal 8: Establish annual charity fund to provide food for homeless people in less
privileged areas of poor countries.

E. Uniqueness of the Business Idea

Generally speaking, there are two types of business start-ups. The first type of business
sells products that are already existing and tries to differentiate itself using what
businessmen call bloody tactics such as competitive price reduction. On the other hand, the
second type of business offers a new or modified product or service and creates value
through its innovation and out-of-the-box thinking. GigaKitchen belongs to this second
category in which uniqueness comes as an obligation.

GIGAKITCHEN | BUSINESS PLAN

The concept of GigaKitchen is unique in more than one way. Firstly, the main
differentiation aspect is that the meal kits are healthy. Healthy is a word that can be
advertised easily, but one can rarely find healthy food in the commercial food industry.
Through a large factory-like clean kitchen with fresh and organic ingredients, GigaKitchen
would promise 100% fresh and healthy meals to the market. This is the biggest aspect of
the idea's uniqueness.
Secondly, the healthy meals can be subscribed to at once, and the food would
automatically be served to you for the remaining duration of your subscription be it weeks
or months thereafter. This is unique in a sense that it differs from the current norm of
restaurants and take out centers that require you to order for every meal rather than through
a subscription plan. A subscription plan serves as a hassle-free approach for the customers.
The third and last point of the idea's uniqueness is the logistics of delivering the meals
to the customers. This differs from the traditional food delivery in restaurants since the
healthy meals would be routed through shuttles that would go around the city delivering
meals to subscribers in an efficient and orderly manner. Furthermore, one may argue that
GigaKitchen could always take aid from delivery services such as FoodPanda. However,
with the large scale nature of the business as well as the customer satisfaction at stake, it
would be best to employ a customized logistics service within the business operations rather
than opting for third party services. Combining the aforementioned aspects forms a very
unique business venture by the name of GigaKitchen. After all, it would allow customers to
be guilt-free in eating their meals and it would give them the feeling of eating home-cooked
healthy meals. People long for this feeling in their meals, but they can't find a service that
addresses their need. This makes GigaKitchen unique and highly demanded in the market.

GIGAKITCHEN | BUSINESS PLAN

II. Marketing
A. Market Research and Analysis
1. Target Market
Demographic Segmentation
GigaKitchen would be initially geared towards the middle to high class
population of Cebu City. Specifically, it targets the working class who do not have
any time to cook their own meals, or those who do not know to cook healthy meals
in general. Hence, the demographic segmentation is based solely on the economic
class of the customers, and not other demographic factors. For instance, the healthy
meal kits can be consumed by kids, adults, or even old people, so there is no age or
even gender consideration in the demographic segmentation.
Geographic Segmentation
Another requirement of the customers comprising in the target market is that
they should be able to specify a place to deliver the meals, either their house,
apartment or workplace. This however is always the case when we talk about
middle class to high class households. Their delivery locations should be within the
major areas of Cebu city, which is the geographic target of GigaKitchen.

2. Market Size and Trends

Now that the target market has been specified, it is important to research and
analyze its size in order to estimate the potential demand of GigaKitchen. The market
size resembles the maximum reach of customers that GigaKitchen can cater to. Of
course, it is impossible to convert 100% of the market into customers, but aiming for

GIGAKITCHEN | BUSINESS PLAN

a significant chunk is essential. The entire market eats food/meals for sure, the task is
then to get them to eat healthy meals from GigaKitchen.
According to a large survey by the Philippine Statistics Authority (PSA)
conducted in the year 2015, the number of households, average household size, and
proportion of non-rural population of Metro Cebu is as follows:
Number of households
Average household size
Proportion of non-rural population

565,583
4
37.6

Based from the statistics shown in the table above, it is now possible to
compute the market size for GigaKitchen. This market size is also the potential
maximum amount of meal subscribers. The computation is as follows:
= . %
= 565,583 4 37.6%
= ,

A market size of 850,636 is very large regardless of the type of business. The
market size is large because Cebu is a developing country and is very densely
populated as well. This makes the target market size a great avenue for business and
at the same time pseudo-optimal for a business like GigaKitchen to prosper in its
merits.
Aside from the large size of the market size, there are other factors about the
market that are in favor of GigaKitchen. Among the target market, there has been a
great surge of awareness to eat right and eat healthy. According to Gagliardi (2015),
a whopping 88% are willing to pay more just to eat healthy. This market trend of
customers wanting to eat healthy is highly beneficial for GigaKitchen. Moreover,

GIGAKITCHEN | BUSINESS PLAN

10

another noticeable trend among the market is the busy work life that does not allow
for home-cooked meals. These two market trends are inevitably driving the demand
for services in the niche of GigaKitchen. However, the supply of such services is
practically nonexistent in Cebu City. Hence, these trends make GigaKitchen a
powerful and timely business venture.

3. Competition
Competition includes businesses that the potential market would go to instead
of GigaKitchen. Competitors could be further categorized as either direct or indirect
competitors. Direct competitors are businesses offering similar services while indirect
competitors are businesses offering slightly different services while still
accommodating the same group of customers (Oman, 2015).
As far as the direct competition is concerned, GigaKitchen would only have
one direct competitor in Cebu city, a business called Chef-on-Demand. Chef-onDemand delivers meals to working professionals mainly based in the I.T. Park area,
However, their meals do not have a healthy factor. Moreover, they rely on a thirdparty courier service for delivery, as opposed to what is proposed for GigaKitchen.
They also have a website of their own where customers can order. If GigaKitchen is
to dominate the market, it would have to provide key product differentiation relative
to Chef-on-Demand, mainly through the affordability, service quality and time, and
healthiness of the meal kits. GigaKitchen aims to be a large-scale meal subscription
service, so it would be able to overthrow Chef-on-Demand and grasp its customers in
no time, since Chef-on-Demand is a relatively small business.

GIGAKITCHEN | BUSINESS PLAN

11

Through common sense, it is no rocket science to be able to figure out that

meal subscription services must be healthy, or else the potential market can just buy
food from restaurants or cafeterias. GigaKitchen aims to offer this healthiness factor
in its meal kits, by means of which it can eat its competitor, Chef-on-Demand.
On the other hand, it is no doubt that the sales of GigaKitchen will get affected
by its indirect competitors. The indirect competitors are simply those businesses that
offer food or meals to the market through conventional means. These include
restaurants, fast food chains, cafes, cafeterias/eateries, and pantries. From the
market size stated above, if you exclude those that eat home-cooked food, at least 9
out of 10 people eat at one of these indirect competitor types. This is because there are
no alternatives at the moment, aside from Chef-on-Demand. When GigaKitchen
arrives in the market, it has to try its best to capture the market and steal customers
from its indirect competitors, because most of the market is going to these indirect
competitors. It can easily accomplish this by strong marketing and advertising of its
core differentiation healthiness. With the demand for healthy food, customers will
surely avail the services of GigaKitchen.
4. Estimated Market Share
The method used to estimate the market share of GigaKitchen is the share of
customers served method. That is, the more customers it can cater to, the higher its
market share.
To estimate the market share, a small online poll was conducted among the
100

earning

members

of households

or

families

through the

use

of

surveymonkey.coms survey service. It is important to note that the meal subscription

GIGAKITCHEN | BUSINESS PLAN

12

service works on a weekly or monthly payment basis, which is why the survey was
conducted only to respondents who are earning, since they would have the buying
power for the proposed service. On the contrary, it would not be appropriate to survey
say, students, since they might be willing to eat the meal kits, but would not be able
to pay for the service. So, the only way normal students can avail is if their parents
decide to subscribe for them as well. From the survey, the 100 respondents were
representing a total of 407 possible customers (resembling the market size), since
they were to consider their family members as well. Moreover, these 407 customers
have 3 meals each, amounting to 1221 possible meals that GigaKitchen can provide
based on this poll.
The results showed that out of 1221 possible customer meals, the services of
GigaKitchen would be availed by 153 of them. The ratio of availed meals is 12.5%.
The main reasons why the remaining 87.5% would not avail are (1) their maids make
home-cooked food for them, (2) those working in offices buy food from their offices
pantry, (3) some people are not willing to wait for delivery of meal kits, and (4) some
people just eat cereals for breakfast (for breakfast meals). That being said, considering
the entire market of Metro Cebu, 12.5% is still a large percentage, and can be
estimated as the market share of GigaKitchen in due time.
Using this market share ratio, the captured market can be roughly computed
and estimated as below. It does not necessarily mean that the captured market will
avail of GigaKitchens service for all of their 3 meals.
=
= 850,636 12.5%
= ,

GIGAKITCHEN | BUSINESS PLAN

13

This figure is a rough estimate and is made based on certain limitations and
assumptions. Furthermore, we must take note that a single customer of GigaKitchen
might not be a customer forever, so it is important to tap new customers as well. With
that, GigaKitchen can maintain a healthy cycle of customer turnover.
To summarize, a pie chart below shows the estimated market share conditions
of the food industry of Metro Cebu upon the entry of GigaKitchen in the market.

Customers' source of meals

Market Share

GigaKitchen

12.5%

Home-cooked food

15.6%

Restaurants/Fast food chains

63.4%

Office Pantries

4.0%

Cafeterias/Eateries

4.4%

Chef-on-Demand

0.1%

Estimated Market Share

1%
4%

4.4%

GigaKitchen
12.5%

Home-cooked food
15.6%

Restaurants/Fast food chains

(Including Home delivery and Take-out)

Office Pantries

63.4%

Cafeterias/Eateries
Chef-on-Demand

GIGAKITCHEN | BUSINESS PLAN

14

B. Marketing Plan
1. Market Strategy Sales and Distribution
The primary goal of the marketing strategy is to get people to buy the
products and services offered by GigaKitchen. The sales and distribution part of the
marketing plan details how this is going to happen.

Distribution Method
The subscription to the healthy meal kits of GigaKitchen can be
done by the customers either using the online website or app of GigaKitchen
or by going to GigaKitchens location and subscribing to a meal plan there.
Once a customer is subscribed, the healthy meal kits will be
delivered to the desired location of the customer via one GigaKitchens own
delivery shuttles, an example of which is shown below.

Customers also have the option to pick up their meals from

GigaKitchens headquarters themselves if they dont want to have it
delivered for whatever reasons. The delivery shuttles would have optimized
conditions for storage of the meals, to preserve maximum quality en route.

GIGAKITCHEN | BUSINESS PLAN

15

The distribution method discussed above is known as the direct

distribution channel, wherein the healthy meals would go directly from the
manufacturer (GigaKitchen) to the customers with no parties involved in
between.

Sales Transactions
The transaction between GigaKitchen and the customer would be
made upon the subscription. When the customer subscribes to a weekly,
monthly, or a customized plan (ex. meals for 5 alternating days; minimum
subscription is atleast 5 meals), that customer has to pay the amount due
beforehand either online or at the location of GigaKitchen. However, the
customer can also opt for cash on delivery or credit card on delivery for its
payments. If any payments remain after the end of the subscription duration,
fines/penalties will be incurred. On the other hand, full payments (as opposed
to 50% down payment for example) beforehand will result in discounts.
Moreover, after some time, consistent customers would be given bills at the
end of the month instead of them having to pay beforehand. GigaKitchen
would be using a small enterprise software to track these subscriptions,
payments, inventory, etc.
Customers will also be given service quality guarantees. This would
include freshness guarantee and delivery punctuality guarantee for the meal
kits. Any deviation from this enables the customers to return the meals, and
GigaKitchens delivery service would personally go to the location to replace
the healthy meal alongside a gift certificate for apologies.

GIGAKITCHEN | BUSINESS PLAN

16

Finally, the last aspect of the sales transaction is the customer

feedback. Customers will be given customer feedback forms upon delivery,
the digital version of which can also be filed up on GigaKitchens website.
If they take time to provide feedback, they would earn certain points that can
be converted into money debited into their subscription dues. This marketing
strategy would enable GigaKitchen to get customer feedback, which is vital
to the success of the business.

Sales Strategy
One sales strategy that will be used by GigaKitchen is the
commission on referrals. This means that if a current customer invites his
friends or acquaintances to subscribe, then that current customer will get
corresponding discounts on his meal subscription.

2. Pricing
The price of the meal subscription plans would have to be affordable for
GigaKitchen to succeed in the market. However, quality cannot be compromised in
trying to achieve minimum cost. The price is not obtained by mark-up, but rather
by market dictated fixed price. The pricing would not be a problem since it is proven
that the current generation is willing to pay more for healthy meals. A rough
estimate of the price of a meal kit is Php 75.00. This would however change when
discounts and incentives are applied based on the specific subscription plan of each
customer. For instance, the monthly plan would yield cheaper per meal price than
the weekly plan, while a family plan can yield cheapest prices depending on how

GIGAKITCHEN | BUSINESS PLAN

17

may family members are hooked. That being said, the pricing policy would be to
have the customers pay for the whole subscription plan, rather than paying for
one meal at a time. Moreover, the price would be inclusive of all taxes and delivery
charges already, to avoid hidden charges to the customers.
3. Promotional Assets
The main promotional asset of GigaKitchen is its brand/name and logo,
shown below. The name GigaKitchen means a large kitchen that prepares meals for
everyone; similar to the GigaFactory term coined by Tesla Motors. As far as the
logo is concerned, the green color in the logo resembles healthiness, while the chef
hat resembles a kitchen. The spoon, fork and the leaf in between portray a healthy
meal kit. Lastly, the three lines on the left add a spark of swiftness for the delivery.

Other promotional assets would include the meal kit itself, the delivery
shuttle, website/app, and the GigaKitchen headquarter itself.

Meal Mockup

GIGAKITCHEN | BUSINESS PLAN

Delivery Shuttle Mockup

18

4. Advertising Strategy
Advertising would be vital to ensure the success of GigaKitchen in the
market. The main challenge would be to be able to convince people to try the meal
subscription services of GigaKitchen. Primarily, advertising will be used to create
awareness in the market, and then, aggressive strategies will be used to win over
customers. After which, maintenance strategies will be used to ensure repeat
customers alongside new customers. GigaKitchen has to pay attention to its quality,
so that it is able to provide what is advertised.
The following media of advertising would be optimal for Gigakitchen to
implement, as listed below:

Public Launch (Offer free meals)

Social Media advertising (primarily Facebook)

Passive advertising through Shuttles

Billboard advertisement

Promotion stall in malls

Word of mouth through referral system

Partnership with corporate offices or workplaces

FM Radio

Brochures in various locations (i.e. gyms, wellness centers etc.)

For these advertising media, there must be an allocated budget. GigaKitchen

would be using an allocated advertising budget for sales and marketing. This budget
would be obtained using percentage of sales method. Naturally, low sales would
call for a higher advertising budget.
GIGAKITCHEN | BUSINESS PLAN

19

III. Operations
A. Location
Since GigaKitchen will be delivering meals to the Metro Cebu area, it has to be
located somewhere at the heart/center of the city, so that it can easily carry out the logistics.
Moreover, the area has to be large enough to house the Giga or large kitchen, with enough
parking space for the delivery shuttles.
Accordingly, the proposed lot is a 912 sq.m. lot located in Salinas Drive Road, Lahug,
Cebu City, Philippines. Its specific location is 1019'50.6"N 12353'58.8"E, indicated by
the red pointer in the map below. A top-view of the lot is also shown in the second image.

GIGAKITCHEN | BUSINESS PLAN

20

B. Operational Procedure
This section briefly describes the operational procedure or process that GigaKitchen
would undergo on a routinely basis, starting with the purchase of raw materials down to the
delivery to the customer and customer feedback. The following steps outline the procedure:
Step 1: Purchasing of food ingredients from suppliers
Step 2: Cleaning of ingredients to maximize quality
Step 3: Cooking the meals based on confirmed subscriptions/orders
Step 4; Packaging of meal kits
Step 5: Delivery to customers/subscribers
Step 6: Customer feedback
Step 7: Utilize customer feedback to improve the next cycle of operations
GigaKitchen is a simple business to operate, as shown in the 7-step procedure above.
What is needed is just proper management and guidance towards the vision and mission of
the company.
At this point, it is important to mention the process that the customer undergoes in
order to transact with GigaKitchen. This is emphasized because GigaKitchen is a customerdriven company at the end of the day. GigaKitchens average customer would go through
the following steps:
Step 1: Pick or customize a meal subscription plan through website or office
Step 2: Payment terms and methods
Step 3: Enjoy the meal kits delivered to desired location on a routinely basis
Step 4: Provide customer feedback
Step 5: Renew plan or unsubscribe

GIGAKITCHEN | BUSINESS PLAN

21

C. Personnel Requirements
The success of GigaKitchen would highly depend on its employees and workers,
after all, its the people that make up the company. GigaKitchen would have employees
that would work together as a family with their corresponding functions/uses. However,
it would be against the organizations core values to arrange them in a hierarchy through
an organizational chart. The following positions would be needed initially to get
GigaKitchen up and running:
1. Founder and CEO oversees the entire companys operations and makes the
decisions of highest importance. CEO also performs hiring (H.R) duties.
2. Operations Manager stays at the GigaKitchen facility and supervises the chefs
and workers. Makes sure that timeliness and quality is achieved while minimizing
costs and wastes.
3. Sales and Marketing Officer in charge of promoting and advertising
GigaKitchen to the market. He/she also processes customer feedback and initiates
implementation for improvement. Lastly, he makes sure the company stays updated
with market trends and the like that affect demand.
4. Chefs responsible for cooking the healthy meals.
5. Workers responsible for receiving, packaging and moving around goods.
6. Delivery Drivers drive the shuttles to deliver food to the customers.
7. Food Safety Officer in charge of checking and ensuring quality of the meal kits,
especially in adherence to the Food and Drug Administration (FDA). This officer
is also responsible for the applications to FDA.

GIGAKITCHEN | BUSINESS PLAN

22

8. Accountant/Finance Officer in charge of the finances of the company as well as

keeping legal records and books to comply with government agencies
9. Customer Service Representative in charge of handling customer inquiries and
complaints. This representative also replies to the online chat service of the website.
10. PRDD (Product Research, Design and Development) Officer in charge of the
overall look and feel of GigaKitchens brand, image, and products. This person
needs to be highly innovative to be able to introduce new product designs or
effective manufacturing techniques.
D. Proximity to Suppliers
GigaKitchen would be dealing with suppliers for its food ingredients and packaging
materials. It is essential that the suppliers are easily accessible and are in the same city so
that there is minimal delay in the transportation of supplies. Accordingly, one factor that
GigaKitchen would take into consideration (after the cost) while choosing its suppliers is
the proximity to each suppler.
Specifically, the table below outlines the different supplies needed, the
corresponding proposed supplier for each, and the geographical proximity to each supplier.

Supplies Needed

Supplier

Proximity to Supplier

Vegetables

South Road Farmers Market

6.9 km

Meat and Poultry

Laderas-Tenchavez Meatshop

5.3 km

Ingredients/Groceries

JY Square Mall

0.1 km

Packaging plastics

iPak Packaging Cebu

5.2 km

GIGAKITCHEN | BUSINESS PLAN

23

IV. Bibliography

Ferdman, R. (2015). The slow death of the home-cooked meal. Retrieved from
https://www.washingtonpost.com/news/wonk/wp/2015/03/05/the-slow-death-of-thehome-cooked-meal/

Gagliardi, N. (2015). Consumers Want Healthy Foods--And Will Pay More For Them.
Retrieved from http://www.forbes.com/sites/nancygagliardi/2015/02/18/consumers-wanthealthy-foods-and-will-pay-more-for-them/#645f05bf144f

Oman,

J.

(2015).

Understanding

Your

Competiton.

Retrieved

from

http://smallbusinessbc.ca/article/understanding-your-competition/

PSA. (2015). Cebu QuickStat 2015. Retrieved from https://psa.gov.ph/content/cebuquickstat-january-2015

Willet, M. (2015). FOOD WARS: I tried a bunch of subscription meal services, and one is
way better than the others. Retrieved from http://www.businessinsider.com/blue-apronplated-hello-fresh-difference-2015-4

GIGAKITCHEN | BUSINESS PLAN

24

Approved by:

______________________
Venture Capitalist

Im convinced that about half of what separates the successful entrepreneurs

from the non-successful ones is pure perseverance.
- Steve Jobs, co-founder and CEO of Apple. -

___________________________________________________

TH E END
~ nothing follows ~