Iron Works Cafe. Business Plan January 2015
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1 Local. Food. Education Iron Works Cafe A social enterprise of the Manistee Community Kitchen Business Plan January 2015 Executive Summary The Manistee Community Kitchen (Kitchen) works toward advancing its mission of ending hunger and obesity in Manistee County through education. The agency started in 2010 by doing cooking demonstrations and classes at local food pantries. Since, the agency has grown greatly, to include the management of a local school lunch program, a network of community gardens and a farmer s market. Through an enterprise at the Iron Works Cafe, the agency purposefully goes back to its roots, providing community space to share food culture, grow opportunities for disadvantaged workers, and provide space for culinary/nutritional instruction. Vision The Kitchen is a grassroots effort that deeply values the generational food knowledge and rich agricultural heritage of Manistee County. Families locally reminisce about the wonderful foods available to them on family farms, swap recipes handed down through generations, and are quick to celebrate the cultural foods that surround our lakeside community. The Kitchen s Iron Works Cafe (IWC) is designed as a space to share those stories, and bring people together around food. Unlike traditional restaurants, the IWC, scheduled to open in 2015 will operate more as a community center, convening groups to learn about fruits and vegetables, food preservation and celebrate what our neighbors have to offer each other. Community classes will be taught by members of our community, who are experts in their content area. No one better to teach a class on stretching a grocery budget than a now grandmother that has raised 10 kids. In the busy summer growing season, the Iron Works Cafe will operate as a breakfast and lunch establishment, with an inclusive approach to employment. Through partnership with CentraWellness, Michigan WORKS! and other local agencies, the employees that will operate the Cafe will be taking part in an educational opportunity. In this facility, they will learn about
2 local food, and the hard work that goes into preparing it. In the fall and winter months, the Cafe will host regular hours, featuring educational seminars, community meals and space to convene. About the Space Watching over the Manistee community for the past 100 years, the seventy foot tall Manistee Iron Works building located on the Manistee River Channel is as impressive a feat in masonry today as it was in 1908, when the last brick was laid. The front of the building sits on River Street, whose west end is home to Manistee s historic downtown. The yard behind this building is riverfront, gradually sloping down to the Manistee River Channel, which connects the 3 miles between Lake Michigan with Manistee Lake. Inside, workers logged hours around the clock, manufacturing the steam engines, saw mill equipment and specialty machinery that once drove local industry. The Manistee Iron Works Company employed nearly 200 workers after the opening of its new facility in The great building that housed these employees was integral to the health of the surrounding community. The jobs it provided were critical to the economic growth of Manistee, as those seeking employment were drawn to the community from other parts of the state and nation. Once hailed as Manistee s most magnificent feat of engineering, the Manistee Iron Works building remains a symbol for local growth, and is the perfect place for the birth of a new initiative. The cafe space inhabits the southwest corner of the Iron Works building. Formerly, this space housed offices for the executives that ran Manistee Iron Works. The ceilings, trim and brick inside provide a rich historical atmosphere. Organization Capacity Though the Manistee Community Kitchen is a relatively small nonprofit organization ($100,000 annual budget), the agency has leveraged great partnerships to drive this development. Jeff Seng, owner of the Iron Works building and philanthropist, provides the cafe space at no charge. The only occupancy related charges for the space are utility costs. The agency is heavily supported by the work of volunteers, having only 3 paid positions. Flagship Project The Cafe project will be the largest initiative the agency has done to date, requiring the largest amount of support and capacity. Over the past 5 years, the agency has been aligning programming, rallying support and creating an environment in which the Iron Works project could launch. Now, with nearly $80,000 in community investment in the space, the Kitchen prepares to launch this exciting new initiative. At the core of the Iron Works Cafe enterprise is a core group of volunteers. Starting with the Kitchen s Board of Directors, community gardeners, guest educators, volunteer servers and assistants are all needed volunteer roles that will drive the initiative forward. The Iron Works Cafe project has a large number of interested supporters, who the agency will soon begin courting to fill slots and assist in programming at the cafe. Parking at the cafe will be along River and Cross Streets. The dining room seats 25.
3 Welcome to the Iron Works Cafe! Manistee s own Community space offering local food and fellowship! Off Season Hours Running from Oct 1 through May 30, the cafe will run on a shortened schedule, and shift from a service focused model, to an educational focused model. At the start, the hours in the Off Season will be as follows: Sunday 9:00 am 1:00 pm Serving Brunch Manistee families visiting church on Sundays and those seeking a unique brunch experience are target customers. A local foods menu will draw heavily on storage crops and local products frozen through the Farm to Freezer program. The menu will be limited, and the check average is projected at $11.00 per person. It is expected that the dining room will turn once during service. A family seeking to dine, but unable to pay will be offered the opportunity to through the cafe s Barter Program (described on pg 8).
4 Wednesday 4:00 pm 7:00 pm Serving Soup The Manistee Community Kitchen has long supported community meals, feeding programs and hunger relief efforts. It is only natural then, that the agency create space at the cafe for anyone to receive a hot meal, regardless of socio economic status. Every Wednesday, the cafe will offer pay what you can in a dinner service. Soups will be all scratch made and feature local ingredients. In addition to one staff member, volunteers will be solicited to work this service, keeping labor costs low. In addition to dining in, soup to go will be offered. Similar programs regionally show that an average of $4.00 per bowl of soup can be expected (with some paying more, and others much less). It is anticipated that the dining room will turn twice, with additional soup to go sales. Every Other Thursday 6:00 pm 8:00 pm Cooking Class The Iron Works Cafe is an educational enterprise, and has core values in providing culinary education. The program has a core value in that everyone should have access to healthy foods, and the knowledge in how to prepare them. Cooking classes will be offered two nights per month to start (more added on customer demand). These classes will feature a variety of content, and will be taught by a variety of educators (both traditional and nontraditional) from the Manistee region. Classes will average 8 participants at a fee of $ Individuals interested in participating, but unable to pay will be offered the opportunity to through the cafe s Barter Program. Off Season Revenue Projection Sunday Wednesday Thursday Revenue $ $ $ Cost Food/Supplies $ $80.00 $70.00 Cost Labor $ $60.00 $50.00 Net* $ $ $ *Does not include other overhead and other expenses reflected in the budget Summer Hours From June 1 through September 30, the Iron Works Cafe will host regular summer hours. Marketing will target both locals and visitors to the Manistee Community. The Cafe will be open from 7:00 am 2:00 pm daily, offering a local foods breakfast, lunch/brunch menu. Closing at 2:00, the cafe will play host to cooking classes and private events in the evenings. During summer hours, the average guest check is projected at $11.00 (based on average menu selection). On Wed Fri it is anticipated that the dining room will turn once, on Sat Sun it is anticipated that the dining room will turn twice.
5 Summer Revenue Projection Open 7:00 am 2:00 pm Wednesday Thursday Friday Saturday Sunday Projected Revenue $550 $550 $550 $825 $825 Cost Food $165 $165 $165 $248 $248 Cost Labor $232 $232 $232 $294 $294 Net* $153 $153 $153 $283 $283 *Does not include other overhead and other expenses reflected in the budget Buyouts and Special Events The cafe will offer Buyouts throughout the year for special events. In being open for breakfast and lunch, the schedule provides great opportunity for special dinner services throughout the year. Because the cafe is (now and for the foreseeable future) without a liquor license, traditional dinner service offers less of a financial opportunity. Through special events, the Kitchen can pull nonprofit liquor licenses to offer special dinners with wine pairings. Additionally, through customer buyouts, the cafe will offer food service for special events, wherein the host can bring in their own alcohol at their choosing. It is anticipated that in year one, the Cafe will host one such specialty event per month. It is anticipated that an average charge for buyout events will be $25 per person. This estimate is based on catering fees in the local market. A variety of local food options will be available to customers wishing to book such an event that will vary from $12 $50 per person depending on menu selection. Food and labor cost will be a standard 30 and 40 percent respectively. Buyout and Special Event Revenue Projection Private Buyout Special Wine Pairing Revenue $625 $1250 Cost Food $188 $375 Cost Labor $250 $500 Net* $187 $375 *Does not include other overhead and other expenses reflected in the budget Industry Standards / Costing Ratios Every menu item at the Iron Works Cafe is costed out to monitor food expense. Because the space is small, it will be critical that food flow through the facility, and out to the dining room with as little waste as possible. In the off season, products left over from Sunday Brunch will be turned into soup for service on Wednesday. This method of efficent product use is standard in high quality restaurant kitchens, limiting food loss and minimizing cost.
6 The Cafe s business plan and budget target industry standards in food and labor ratios. Food cost will be held at 30% of sales and labor is planned at 40% of sales. These ratios are on par with other restaurants of similar size and scope. People Executive Chef Consistency is critically important in building a brand and following in any food based enterprise, especially in a small community like Manistee. The Iron Works Cafe will employ an executive chef to ensure standards of quality and service at the cafe. This chef will also be charged with mentorship and classic education of students/employees working at the cafe. The executive chef will be an hourly position, averaging 24 hours per week in the off season, and 50 hours per week in the busy summer months. This chef will be the face of the Iron Works Cafe, and have significant knowledge in local agriculture, preparing dishes using local foods, and an empathy in working with individuals with disadvantages. The right fit in this position is critical to the success of the enterprise. The Executive Chef is responsible for meeting the goals laid out in the Cafe budget, and serves in all other positions as needed. It is proposed that the Executive Chef receive compensation commensurate with experience. The agency knows that only through close engagement and strong leadership, will the cafe cash flow to plan. In addition to an hourly rate, the executive chef will be compensated a percentage of overall cafe profits, paid at year end. Salad / Prep Cook Because the Iron Works Cafe has a.5 acre garden on site, this position provides great opportunity for the cafe. This position works directly with the executive chef in the kitchen at the Iron Works Cafe, harvesting vegetables, preparing salads and garnish for service. The salad / prep cook position is a culinary education / externship track position. Line Cook This position works directly with the executive chef in the kitchen at the Iron Works Cafe, and is responsible for preparing hot food for service. A line cook is only scheduled on days when the dining room will turn more than twice. When a line cook is on, the Executive Chef shifts to the position of expediter. The line cook position is a culinary education / externship track position. Server The Iron Works Cafe dining room is small, and therefore will only require one server on the floor. Prep Cooks, Line Cooks and the Executive Chef will fill in running food as necessary to assist the Servers. Servers will be charged with greeting guests, taking orders and serving. In addition, the server will manage beverage service for the cafe. The server position is an Michigan WORKS! track position.
7 Dishwasher / Busser The Dishwasher / Busser position is critical to a quality customer service experience. This position will work with the cafe team to ensure a clean dining room and manage the flow of dirty dishes. The cafe washes all dishes and flatware by hand. This position is absolutely crucial to overall programmatic success. When a dishwasher is not on site, all other positions will fill in as necessary. The Dishwasher / Busser position is a Centra Wellness track position. Staffing Needed To Open Cafe During Summer Hours Wed Fri 1 Executive Chef 6:30 2:30 $12) 1 Salad / Prep 8:30 2 $9) 1 Dishwasher/Busser 9 1 $9) 1 Server 7:30 1 $9) Total Cost: $232 (on projected revenue of $550 = 42%) Sat Sun 1 Executive Chef / Wheelman 6:30 2:30 $12) 1 Cook 8 2 $9) 1 Salad / Prep 7 1 $9) 1 Dishwasher/Busser 9 1 $9) 1 Server 8 2 $9) Total Cost: $294 (on projected revenue of $825 = 36%) Staffing Needed To Open Cafe During Winter Hours Sunday Brunch 1 Executive Chef 6:30 2:30 $12) 1 Salad / Prep 8:30 2 $9) 1 Dishwasher/Busser 9 1 $9) 1 Server 7:30 1 $9) Total Cost: $232 (on projected revenue of $550 = 42%) Souper Wednesday 1 Executive Chef 3 8 $12) 1 Volunteer Server 5 8 $0) 1 Volunteer Dishwasher/Busser 5 8 $0) 1 Volunteer Cook 3 6 $0) Total Cost: $60 (on projected revenue of $400 = 15%) Cooking Class 1 Instructor (flat $50) 1 Volunteer Assistant 5:30 8:30 $0) Total Cost: $50 (on projected revenue of $240 = 21%)
8 Partner Agencies The Role of CentraWellness Network Centra Wellness (formerly Community Mental Health) has a longstanding relationship with the Manistee Community Kitchen. The Kitchen plays host to cooking classes for Centra consumers, has provided garden education, CSA boxes and also employes Centra Wellness consumers in the school lunch program at Manistee Catholic Central. At Manistee Catholic Central, individuals with disabilities are employed by the Kitchen to serve as dishwashers. Centra Wellness provides scheduling, transportation and on the job coaching support for these individuals. At the cafe, the Kitchen will look to Centra Wellness to provide similar supported employment service for the position of dishwasher/busser. This position will provide new opportunity for individuals living with disabilities, while ensuring that proper case management/supports are in place to ensure participant success. This case management has been found to be an increasingly important (and expensive) support for employees with disabilities. Leveraging the Centra Wellness Network to provide such support would create a win win opportunity for the two agencies. The Role of Michigan WORKS! Michigan WORKS! will be a referring agency for placement and ongoing support of the Server position. Tipping Unlike other traditional restaurant establishments, each member of the Iron Works Staff is paid at a rate above minimum wage. To foster a team atmosphere, the tips from each service will be split among the team members working that day. This way, each member has a vested interest in providing world class customer service, and assisting their teammates as needed to improve the customer experience. This policy will be in place for summer hours and Sunday Brunches. Any donations coming in through cooking classes, Souper Wednesdays or community events will be allocated to the Kitchen s general fund. Barter Programs Work Share A competitive advantage presented by small communities is the quaintness that it offers residents and visitors. The Iron Works Cafe greatly values feeding our hungry neighbors, and providing opportunities for all individuals in our community to get connected. Through the Barter Program, individuals who choose to work in our large garden, producing foods for use at the cafe, and for the distribution to area food pantries will earn credit for their participation. For 2 hours of service in the garden, a meal ticket will be provided for each laborer. If a community member would rather use their earned meal ticket for a cooking class, the cost of doing so will be 2 tickets per class. Barter work in the garden will take place on regular Kitchen gardening days, wherein the volunteer laborers can be supervised and verified by the Kitchen s Community Garden Leads.
9 Pay It Forward The wonderful thing about community is that together we are so much greater than we are individually. We all contribute. We all matter. Someone one day may need a hand up, then return to pay the favor days, weeks or even years later. The principle behind the Cafe s Pay It Forward program is simple. You can choose to buy a meal ticket for a member of our community who is hungry. Your meal ticket is placed in a take a meal, leave a meal jar on the lunch counter. The next individual that visits the cafe who can t afford their meal, can take and redeem the meal ticket for a regularly priced menu item. This way, the Kitchen hopes to leverage every member of our community in our effort to end hunger. Farm Trade The Kitchen knows that some of the most cash strapped residents in our community are our farmers. Through working with the Executive Chef, farmers can trade their product at the Cafe for meal or class vouchers, or for credit on their booth rental fees at the Manistee Farmer s Market, also a program of the Kitchen.
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