Part-4abc.docx

Part 4a Proposed Business Dublin is the capital and largest city of Ireland. It has an urban area population of 1,173,179. Dublin is a historical and contemporary center for education, the arts, administration and industry as a global city, with a ranking of "Alpha −", which places it amongst the top thirty cities in the world. The love of Irish people for fast food is rapidly growing. Irish people spent more money per head on fast food than 19 other European countries in 2012, according to market research firm Euromonitor International. And with the history of Ireland with potatoes potato based foods are favored by consumers. This paper Proposes to bring a well-known food kiosk business that is making a wave around the Philippines, the Potato Corner.

Brief History about Potato Corner Potato Corner, dubbed as the World’s Best Flavored Fries, has been a leading brand in the food industry for 25 years. Potato Corner opened its first outlet in the Philippines in October 1992 and began franchising the year after. Today, it has grown from small carts into in-line stores found in almost every corner of the world – in malls, schools, hospitals, bus stations, amusement parks, and even tourist destinations in multiple countries. In every corner of the world, someone wants Potato Corner. Throughout the years, Potato Corner has garnered numerous awards, mostly recognizing its excellent business model and well-loved brand. It has received the Franchise Excellence Hall of Fame Award by the Philippine Franchise Association and Department of Trade and Industry in 2003, won Best Franchise of the Year on three consecutive years, and most recently, bagged the Global Franchise Award recognized by the same institution. Potato Corner is truly an iconic brand for kids and kids-at-heart and a distinguished business venture for entrepreneurs.

Requirements and Regulatory Framework When opening a food service business in Ireland (e.g. café/restaurant), businesses are required to comply with the following: 

Register with the appropriate official agency, o

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Health Service Executive (HSE)  Typically, the HSE inspects businesses like restaurants, delis, retailers, mobile food businesses and food stalls and some manufacturing premises, including microbreweries. Contact your local HSE office for further information and to register. Department of Agriculture, Food and the Marine (DAFM) 

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Local Authority Veterinary Inspector 

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Typically, the local authority veterinary inspector inspects establishments involved in animal slaughter and handling and/or processing meat

Sea-Fisheries Protection Authority (SFPA) 

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Typically, DAFM inspects establishments involved in animal slaughter and handling and/or processing meat, dairy products and eggs

Typically, the SFPA inspects establishments handling and/or processing fish and fishery products and products of aquaculture.

Familiarize yourself with relevant food legislation, o

The following is a comprehensive list of food legislation in Ireland. It provides a reference and guide to the various Acts, Regulations and Orders made at national level as well as those Directives and Regulations made at EU level.  Aquaculture and Aquaculture Products 

Contamination of Foodstuff

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Eggs

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Fish and Fishery Products

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Flavorings

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Food Additives

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Food Enzymes

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Food Fortification

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Food Hygiene

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Food Information - FIC (Labelling)

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Food Products with Compositional Requirements

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Food Products

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Food Standards

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Food Supplements

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Foods For Particular Nutritional Uses (Parnuts)

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Foodstuffs with Specific Restrictions

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Fruit and Vegetables

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Game

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General Principles of Food Law

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General Product Safety

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Genetically Modified Organisms (GMOs)

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Imports and exports

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International Carriage of Perishable Foodstuffs

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Manufacturing And Processing Methods

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Materials and Articles Intended to Come into Contact with Foodstuffs

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Meat - Fresh Meat

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Meat - Meat Products

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Meat - Minced Meat, Meat Preparations and Mechanically Separated Meat

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Meat - Poultry meat

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Milk and Milk Products

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Novel Foods

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Nutrition and Health Claims on Food

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Official Control Of Foodstuffs

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Organic Foodstuffs

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Pesticides Residues in Foodstuffs

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Veterinary Medicines, Animal Remedies, Control Of Illegal Substances and Poisons

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Water (including bottled water)

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Zoonosis

Develop a food safety management system (HACCP) and acquire food safety training, o

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The word HACCP (Hazard Analysis & Critical Control Point) confuses many people but, simply put, it refers to procedures you must put in place to ensure the food you produce is safe. These procedures make up your food safety management system based on the principles of HACCP. Your food safety management system should allow you to identify and control any hazard sthat could pose a danger to the preparation of safe food. It involves identifying what can go wrong, planning to prevent it and making sure you are doing it. HACCP is a legal requirement but will also benefit your business.

Develop a traceability system, o

You are legally required (under Regulation 178/2002/EC on the general principles of food law), to have a traceability system in place. At its most basic, this requires that you are able to identify who you have received food and ingredients from and who you have supplied food to (except for those businesses solely supplying the final consumer e.g. retailers, caterers, who only have to trace suppliers).

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However, the more detail you can include in your traceability system the better able you will be to deal with possible food recalls involving your product. Time is of the essence in such situations with implications for public health, your finances and business reputation.

Obtain a copy of the relevant National Standards Authority of Ireland (NSAI) Guidelines

Employment and Labor The employees of Potato Corner will be Filipinos who are already in Ireland and also have the knowledge and experience about food business in Ireland. At least three employees will be hired to operate the food kiosk. Their wage will be based on the statutory minimum wage in Ireland which is 1,613.95 EUR per month. They will be working at least 13 hours per day (including the preparation, operating and cleaning hours). Potato Corner’s staff will be comprised of the following: o

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Service attendant  They take customer’s orders, serve food and beverages and cleans the customers left overs Branch manager  Oversees the whole branch. The manager opens and closes the branch, purchases food and beverages inventory, opens the register, tracks inventory, trains and manages employees, works with suppliers, and manages the branch’s advertising. Cook  The cook is responsible for all that goes on in the kitchen

Initial Capital and Investment To start up the Potato Corner franchise, the figures presented are the breakdown of the cost of the possible initial investment needed by the investors to open it in Ireland. The amounts and values are presented both in Philippine Peso and Euro at a spot rate of the foreign exchange a s of writing of this paper. All are rounded off to the nearest hundred peso. Expenses

Philippine Peso

Euro

Franchise Fee

335,000

5,650

Customization of the Kiosk

300,000

5,060

Licenses and other Permits

180,000

3,040

Location Rent Expense

70,000

1,180

Monthly Labor Cost

664,000

11,200

Utilities

320,000

5,400

Total

1,869,000

31,530

Target Date of opening of the Business Due to the strict requirements and regulatory framework in Ireland, it is expected to take a while in registration and submission of requirements to the appropriate legal agencies in Ireland. The investors also need time to familiarize with the relevant food legislation in Ireland in order to comply with the requirements. Considering these factors, the franchisors of Potato Corner targets the year 2020 between months of April and September to be able to start their business in Ireland.

Part 4b Product and Service Offerings

Potato Corner is known for their tasty flavored fries with a lot of variety of flavors to offer. They are offering fries that are of high quality and at the same time, affordable for its market. Potato Corner’s Current Market Offerings

Potato Corner offers different sizes of fries and different flavors. With its unique flavoring, every flavor on its menu is a bestseller. Cheese, Barbeque, sour cream, and chili barbeque are popular in every corners of the Philippines.

Additional Menu to be offered in Ireland

Cinnamon and Sugar fries The French fry went to the bakery and fell in love with a cinnamon sugar doughnut and together they made this hot, starchy, fluffy and sweet fry

Garlic and Parmesan Fries Mixed Parmesan, salt, and garlic powder together in a small bowl. Drizzle the oil over the potatoes and toss to coat. Sprinkle the Parmesan mixture over the fries and toss again until evenly coated.

Chicken Wings That is generally deep-fried then coated or dipped in a sauce consisting of a flavor of the customer’s choice prior to serving

Chicken Tenders coated chicken meat in a breading mixture and then deep frying them

The figures below are the initial prices that are to be offered once the Potato Corner is operating in Ireland. The prices are based of the current values of the said dishes in the market. It is presented in Philippine Peso and Euro. Menu

PHP

EUR

Regular Fries (any flavor)

29

.5

Large Fries (any flavor)

55

1

Jumbo Fries (any flavor)

85

1.5

Mega Fries (any flavor)

110

2

Giga Fries (any flavor)

179

3

Tera Fries (any flavor)

209

3.5

Chicken Wings

99

1.75

Chicken Tenders

99

1.75

Bottled Water

25

.5

Part 4c Competitive Advantage of the Company 1. Ease of Establishment  Potato Corner has a lot to offer. The business has been a rapidly cascading business structure which offers first time entrepreneurs to explore food industry with small capital and relatively small cost to construct which can be also beneficial for them to gain experience that would be beneficial in the near future when they expand their horizon and venture into another related business. 2. Competitive Pricing  Since the food kiosk type of business is cheaper to establish than other type of food business, it will likely result to lower prices of the products which is favorable to customers. The more the customers, the more sales can be expected to the business which will result to more profit as it will likely result to a good customer-seller relationship. 3. Continuous Training and Development for Staffs  To cope up with the dynamic nature of food industry due to changes in taste preferences of each country, Potato Corner wants their staffs to be more adaptive to these changes by engaging them to several training programs that will enhance their interpersonal skill which will be essential in conducting business. Moreover, seminar workshops regarding innovations in the food industry of Ireland will also be tackled to them in order to familiarize themselves with traditions attached in sesaling business with customers.

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