Business Plan

Papa Boudreauxs Kitchen

Company Name
Papa Boudreauxs Kitchen
17287 HWY 44
Gonzales, LA 70737

Founders:
Josh Boudreaux
Sam Klusman
Lauren Brown
Laura Sachse
Matthew Kudla
Matthew Johnson
Whitley Maxwell

Table of Contents
Title Page

Executive Summary

Industry Analysis

Company Description

Market Analysis

10

Economics of the Business

13

Marketing Plan

15

Design and Development Plan

18

Operations Plan

20

Management Team and Company

21

Overall Schedule

22

Financial Projections

22

Works Cited

26

Papa Boudreauxs Kitchen

I.

Executive Summary
Papa Boudreaux's Kitchen is a for-profit catering service that will provide traditional
Cajun food for various local events, including weddings, graduation parties, business luncheons,
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and trade shows. We plan to use a portion of profits to provide food to those living in
impoverished areas via our food truck. Our mission is to provide great food and an unforgettable
experience to everyone regardless of their financial circumstances. We will offer three levels of
catering services, as detailed in our Company Description. Our target market includes middle to
upper class 25-50 year olds who host events and need catering services in South Louisiana.
Marketing tactics include using signage, use of social media, and an initial press release. Upon
launch, we will focus on providing catering food to local consumers and will donate money and
food to the local St. Vincent de Paul. As the business continues to grow, we will purchase a food
truck and personally provide food to those who are undernourished. Eventually, we hope to
build a restaurant as an additional means of serving food and generating revenues. We hope
that our philanthropic focus will allow us to connect with a larger community, with a customer
base that will appreciate and support our mission.

II. Industry Analysis

Papa Boudreauxs Kitchen offers services in the catering industry to provide meals for
events such as weddings, graduation parties, business luncheons, and trade shows. The
catering industry has $8.7 billion of revenue with 1.7% annual growth. This growth is the result
of the rise in consumer spending and business profits over the last five years. During the last
five years, corporate demand has steadily increased by 4.5% per year. The size of the catering
industry is large but segmented into many different markets. The two main markets of the
catering industry are providing services to businesses, like trade shows, conference planning,
etc. and providing services to general consumers. The industry includes catering businesses
that provide middle to upper class people with event-based food services. Consumers are the
key driver for the catering industry, which is where Papa Boudreauxs Kitchen will focus.

The catering industry is in the mature phase of its life cycle. The basis of this industrys
business experiences is that of slow growth. This slow growth plays a significant part in the
mature status of the industry. It also helps that the business is widely accepted in its current
form without many technological changes. Much of the catering industrys growth is due to time
constraints experienced by households and businesses to plan and organize events. Most
people want to spend that time on the social aspect of the event. Out servicing has also led to
the opportunity for the industry to expand. The industry has the potential to enter the growth
stage of the life cycle by expanding the array of services in terms of party planning and make
individual operators a one-stop-shop for consumers looking to have an event would allow the
industry to flourish. Consumer preference is beginning to change. People are wanting higher
quality food along with healthier options. In terms of competition, operators who choose not to
adapt will see their demand fall.
Concentration in the catering industry is low. The largest companies in the industry only
account for about five percent of the available market share. Many of the companies are small
and owner operated. The businesses are often family owned and operated locally and regionally
rather than nationally. The small operations dominating the market share demonstrate that the
industry is very fragmented. Barriers to entry are low but are increasing due to health and safety
regulations. Although there are no major players in the industry, some of the largest operators
are CulinArt Group, which holds about 2.5% market share, Wolfgang Puck Catering, Lundys,
Great Performances, Occasion Caters, Prom Catering, and McCalls Catering and Events that
each own less than 1% of market share. These businesses operate in multiple locations
throughout a state, or in the case of CulinArt Group, throughout the country. Papa Boudreauxs
Kitchen would enter and fit into the catering industry easily as well as gain market share locally.
There are six important key success factors for the catering industry. Ensuring price
policy is appropriate. It is important that the prices match the event being catered. Having
access to niche markets, such as having a specialization or expertise, can ensure that an
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operator has an opportunity for a competitive edge. Another success factor is a caterer's ability
to provide goods/services for functions in diverse locations. Having a staff that is multiskilled
and flexible will make sure that the business will run at top performance. One of the most
important factors is complying with government, especially health regulations. Business owners
must take care to minimize food wastage to control cost. Although there are more, these six key
factors will be pertinent to Papa Boudreaxs Kitchens success in the industry.
The catering industry has a steady slow growth but a new trend are beginning to grow.
Many consumers are moving towards healthier food options and smaller meal sizes. On the
other side of the spectrum consumers are also requesting more exotic foods and local produce.
This trend would increase purchasing cost for operators. Even though it would cost more,
operators who choose not to adapt to the growing trends will experience a fall in their demand.

III.Company Description

Papa Boudreauxs Kitchen was conceived in 2015 on a simple idea: great food with a
Cajun flare that helps the less fortunate. Our mission is to provide great food and an
unforgettable experience to everyone regardless of their financial circumstances.

We will offer three different levels to our service.

1 Papas Cajun Gold
2 Papas Taste-a-da south
3 Papas Envie

All levels of service have soft drinks, tea, and coffee included.

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The business is currently in the preparation stage of entering the market. It will be set up
as a limited partnership, where we will have at least one general partner. We will provide the
option for investors to become either general or limited partners, pending on the amount of
investment.
The company will be set up in a manner that diversifies the assets. The land purchased
will be owned by a parent company. Two separate divisions will be formed: one for the catering
and the other for the food truck.
We will need to acquire a liquor license, a food and beverage license, a property license,
a food truck permit, a fictitious name permit, fire department permits, a sales tax license, an
alarm permit, a building permit, a business license, a health permit, a signage permit, and tax
registration.
We will establish a key partnership with St. Vincent De Paul. This partnership will allow
us to provide monetary and food donations until we purchase our food truck and establish this
division of the company. We will also partner with local DJ companies and provide their services
included in party packages. Additionally, we will partner with bakeries, florists, photographers,
and videographers so that we may service our clients in the easiest way possible by offering all
inclusive packages.

IV. Market Analysis

Our target market is businesses, organizations, and middle to upper class 25-50 year
olds who host events and need catering services in South Louisiana. We also hope to attract
and fill the need of those who live in underprivileged neighborhoods and dont have the financial
ability to consistently feed their families. Our market segmentation is unique because we are
seeking to attract two distinct customer bases. We plan to use the profits from one market to
help sustain our presence in another market.
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Though most companies in our industry dont have the low-income food truck aspect to
their businesses, we have many direct competitors in the general catering industry. A few of
them include Al Smith Catering, Parc 73, Oak Lodge, The Venue, Ashley Manor, Houmas
House, Nottoway Plantation, and Elegant Affairs. These businesses also are catering services
that rent out venues for special events in South Louisiana. However, our food truck business,
which provides food to the impoverished, differentiates us from our competitors, as our
competitors do not emphasize any philanthropic goals.
In the catering industry, there are no companies who dominate this market share. The
catering industry is in the maturity of the industry life cycle and has many established
companies. Our estimated sales are roughly $748,000/year. There are no dominant forces in
this market. The market mostly includes small catering business that make up a small
percentage of the market share.

Competitor Analysis
Elegant Affairs

The venue

Parc 73

Value proposition

Services provided inhouse, pre-bridal portraits,

availability of music

Large open floor,

commercial kitchen, wifi,
music availability

Natural Light, true in-door

out-door venue, handcrafted milwork, elegant
chandeliers

Differentiation

In house services

Only a venue to be used

however the renter wants

In-door out-door venue

Persona

Versatility of events

basic, no frill

warm, natural, elegant

atmosphere

Audience

Young adults to senior

Young to middle aged

Young adults to senior

Relationship

Old friend, reliable

Handy, non-committal

Elegant, back to roots,

natural, organic
experience

Range of Authority

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Variable

East Baton
Rouge Parish,
LA

Louisiana

Ascension
Parish, LA

USA

# Total Households
with Public Assistance
Income or Food
Stamps/SNAP, 2015

30,413

343,744

6,275

17,288,551

Housing (Household
Average), 2015

$17,235.87

$17,328.53

$19,540.85

$18,933.80

Food at home
(Household Average),
2015

$3,884.63

$3,970.89

$4,329.09

$4,226.95

Food away from home

(Household Average),
2015

$2,602.66

$2,637.61

$3,046.63

$2,960.02

Food (Household
Average), 2015

$6,485.22

$6,604.76

$7,372.83

$7,183.78

# Population, Female,
in Poverty, Total, 2015

49,087

498,906

8,158

27,451,325

# Population, Male, in
Poverty, Total, 2015

38,128

381,063

5,179

22,791,533

# Population (Pop),
2015

447,046

4,665,649

117,903

319,986,83
4

% Population, Female,
in Poverty, Total, 2015

10.98%

10.69%

6.92%

8.58%

% Population, Male, in
Poverty, Total, 2015

8.53%

8.17%

4.39%

7.12%

# Households w/
Income $15,000 to
$24,999, 2015

16,559

186,265

2,569

10,641,096

# Households w/
Income Less than
$15,000, 2015

22,112

251,557

3,357

13,099,154

15

This table identifies the need in the market for our business as evidenced by the large
segments of the underprivileged in society. We would be able to provide food through operating
our business for those eight to ten percent of the male and female populations who are in
poverty in both the East Baton Rouge and Ascension parishes.

V. The Economics of the Business

Papa Boudreaux's Kitchen has three main revenue drivers, all of which are effectively
profitable. As mentioned earlier in the plan, our products consist solely of three catering
packages with escalating quantities of food in each. The first, and most profitable, of the three
packages is Papas Cajun Gold plan. With a gross margin of 68% and a contribution margin of
$5,378.46, the Gold Plan recovers its investment fairly easily. The other two packages, Papas
Taste-a-da South and Papas Envie, both have comparable gross margins, reigning in at 64%
and 65% respectively.
In addition to the startup costs, which will be discussed later, Papa Boudreauxs Kitchen
has $31,058.33 in monthly fixed costs. Because this is somewhat lower than our projected
monthly variable costs of $25,420.90, we can say that our business has a fairly even degree of
operating leverage. However, with the addition of our startup costs ($74,351.64), our operating
leverage becomes quite high. This means that, relative to businesses with a low degree of
operating leverage, we will take longer to break-even but more of our revenues will fall to the
bottom line once we do.
Papa Boudreaux's Start Up Costs
Equipment
50 lb. gas fryer
8 ft. prep table
Heat Cabinet

P.P.U
$778.00
$
969.47
$

# of Units

Total Price

$ 1,556.00

$ 1,938.94

$ 2,269.00

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2,269.00
Gas Range (10
burners)

$
2,479.00

$2,479.00

Double Deck Oven

$
6,730.00

$6,730.00

Exaust hood

$
1,793.00

$1,793.00

Char broiler

$
2,517.25

$2,517.25

Chafer/ rec

$35.99

$287.92

Chafer/ round

$45.59

$136.77

$
7,375.00

$7,375.00

Dishwasher
Round tables

$119.00

40

$4,760.00

Chairs

$21.79

400

$8,716.00

Ice machine

$
3,136.00

$3,136.00

Walk in cooler

$
8,125.00

$8,125.00

Reachin freezer

$
4,336.95

$8,673.90

Ice scoops

$18.49

$36.98

Ice caddy

$769.00

$769.00

$
1,200.00

$ 2,400.00

Quick disconnect

$225.00

$225.00

Carving station

$298.65

$298.65

Serpantine tables

$116.00

$696.00

81" Round table

cloths/ dozen

$255.00

$1,275.00

Table covers

$109.00

40

$4,360.00

Necessary cooking
supplies

17

14 oz. glass (3
dozen case)

$61.19

14

$856.66

Rocks glass (3 dozen

case)

$ 67.99

$203.97

Wine glasses (2 dzn

case)

$78.19

$312.76

Coffee cups

$6.59

80

$ 527.20

Glass plates 10" (2

dz case)

$ 99.59

17

$1,693.03

Fork (dozen)

$1.59

33

$52.47

Knives (dozen)

$3.29

33

$108.57

Spoons( dozen)

$1.29

33

$42.57

TOTAL

$
74,351.64

According to our breakeven analysis, assuming we cater 14 events per month, we

should easily pay off our startup costs within two and a half months or after about 35 events.
VI. Marketing Plan
Papa Boudreauxs Kitchen will utilize a wide variety of strategies to market its unique
product line and services. Initially, Papa Boudreauxs will create signage and design a distinct
logo that is recognizable and effectively portrays the unique character of the business. This will
assist in creating a brand for the business. This logo will be featured on all marketing materials,
including catering supplies, so this is a crucial and essential stage of our marketing plan. In this
initial design stage, Papa Boudreauxs will establish and carefully design a website that will
include appetizing color photos of menu items, a complete list of menu items, and a description
of services offered. News broadcasts will illustrate efforts to feed the less fortunate and our
support of nonprofit agencies in the community, our success stories. A well-designed website

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page must be implemented in initial stages of the marketing design since most potential
customers, when interested in a product, will look for more detailed information on a website.
Social media plays a crucial role in advertising a catering business. Papa Boudreauxs will make
a Facebook page, design an interesting and attractive layout for a Pinterest page, and will
establish a Twitter account. A huge portion of the target market utilizes social media extensively.
Care will be taken to ensure that Papa Boudreauxs Kitchen shows up in all directories; a
Google Alert will be set to help the company identify when Papa Boudreauxs is mentioned on
the web.
In the preliminary marketing stage of the campaign, Papa Boudreauxs will send out a
business press release, including a colorful history on those creating the company, their
qualifications and expertise, and illustrating the unique services offered by Papa Boudreauxs to
the catering industry. This press release will be provided to community bulletins, the events
section of local papers, culinary magazines, social magazines, The Business Report, and bridal
magazines and journals. Press releases are a wonderful alternative to advertising for a startup
because there is no cost associated with a press release. A target release will ensure
information is provided directly to our target market. A business blog will be established to tell
the story of Papa Boudreauxs Kitchen and share its personality with a digital audience. Blogs
have been demonstrated to be an effective means of demonstrating a companys expertise
while promoting its story. This alternative is attractive because there is minimal expense related
to maintaining a blog. This blog will target potential customers, including those seeking
information from wedding blogs. The blog will help the company identify customer feedback
while portraying the expertise of the companys owners and staff. In addition, an expertise blog
can help increase trust by potential customers.

Word of mouth will be a crucial strategy for marketing the business. A potential customer
list will be developed, a list of everyone known personally by the owners, including phone
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numbers, business affiliations, email addresses and social media accounts. A loyalty program
will be established, offering discounts to established customers who make referrals that are
transformed into new customers. Papa Boudreauxs Kitchen will contact local pharmaceutical
representatives in the area, non-profit organizations, and become a part of local business
organizations like the United Way and Rotary. Pharmaceutical companies utilize catering
services extensively, and representatives can spread the word about Papa Boudreauxs Kitchen
to other representatives. Nonprofit organizations will benefit from the connection between Papa
Boudreauxs Kitchen and their organization; by partnering with well-established nonprofits, Papa
Boudreauxs Kitchen can quickly enhance its credibility in the region. By notifying these
businesses and organizations, we can more readily market by word of mouth. It is essential that
these business contacts are made to ensure the rapid development of the potential customer
list.

In the third stage of our marketing plan, Papa Boudreauxs Kitchen will market its
products. This stage will include participating in free local non-profit food truck events, reserving
booths at bridal fairs, donating food to local soup kitchens, and providing local schools free
baked goods for local bake sales. Popular but inexpensive products of Papa Boudreauxs
Kitchen will be featured at festivals, flea markets and farmers markets.

The product is the food that will be served. See individual food choices above. As
mentioned earlier, Papa Boudreauxs Kitchen will try to appeal middle to upper class people.
The price range goes from $11.99 to $24.99. Many restaurant review sites categorize the price
level by dollar signs. Papa Boudreauxs Kitchen would be a two dollar restaurant ($$). By
appealing to this target audience, the catering company will be classified as a high quality place.
Promotion will be done in many different ways including social media, word of mouth, and
through charity events. The company prides itself on giving back to the community and
20

promoting this will help people associate Papa Boudreauxs with a respectable mission. The
distribution will occur through the catering events.

The sales process is simple. We want to create the best possible dining and catering
experience for our guests. By doing this, people will be inclined to try Papa Boudreauxs Kitchen
and come back as repeat customers. We need to be able to sell ourselves before the food is
even served and that is done by having a great staff. The workers at Papa Boudreauxs Kitchen
will create an irreplaceable environment that customers will not forget.

Going along with the sales process, it is crucial that Papa Boudreauxs Kitchen
establishes a fun environment that lets guests know that they are always welcome. This will
help in the promotion of the business and lead to positive word of mouth marketing. Another key
aspect of sales is making phone calls to the potential catering customers. The Director of Food
and Marketing will need to be able to attract these people into becoming potential customers.

VII. Design and Development Plan

Currently, we have not purchased a location for our business. We are aiming to acquire
a location that has a unique outdoor ambience which would satisfy the needs of brides-to-be
and party planners alike. We do not currently own any of our kitchen equipment, but have
conducted research to find the most affordable, best quality equipment. We have also looked
into acquiring tables, chairs, table cloths, and buffet equipment. We are currently working to
add more items to our menu so that clients may have the most autonomy in their events. We
will continue to develop our company after our catering division is well-established by
purchasing the food truck so that we can begin to provide the free meals to the underprivileged
in the area ourselves instead of what we were previously doing in donating monetarily and food

21

products to St Vincent de Paul. Eventually, we plan on adding a restaurant to our services

offered.

One challenge that we may face as a company is that it is frequently difficult to enter the
catering food market. The market is somewhat regulated so it can sometimes be challenging to
get into the market. These standards are set due to the Food and Drug Administration's
regulation of food based products. The Affordable Care Act requires caterers to post the caloric
content of items on its menu. If we have 50 or more employees that work 30 hours a week, we
must provide health care for them under the Affordable Care Act. This is risky due to the time in
between sales and the actual events. Many things can change in the span of three to six
months in some cases other offers come up that sound better than the current situation. This is
risky for a business of this sort due to the time and money invested in this event to not end up
getting the full payment. Due to this nature we would require down payments that are nonrefundable and a late cancellation fee.

Projected development costs include items such as the food truck and a restaurant. The
food truck will cost $89,000 to purchase and then operating expenses will include gas,
equipment, and wages to be paid to the operators of the truck. The restaurants development
costs will be much more than the food truck. An estimate of what the restaurant will cost is
around $400,000. The projected development costs for the restaurant include purchasing or
constructing a building. Then, we will design the interior to best fit our target audience. Another
major expense will be all the equipment that the restaurant will need to be successful.

VIII. Operations Plan

We will recruit clients to host events at our venue. We offer a range of options that
clients can choose from to make their event as memorable as possible. All events include a
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three-hour rental of the venue. We offer different food packages to choose from so that
customers can have the ultimate party of their choosing. We also offer different packages for the
bar. Clients can add different items to their package to enhance it and can use our selected
recommended vendors. We will have two to four bartenders per event depending on bar
package and size. We will have one server for every 50 people attending an event. We will also
have an event coordinator on staff in order to plan the ideal event for the client. If the level of
business escalates, we will have another event coordinator on staff so that they could have
some time off if they needed it. We will provide everything needed for a successful event. We
will have an Executive Chef on staff as well as some cooks to assist the Executive Chef. We
will set up for the client's event ahead of time and begin preparing the food. We make sure we
have the alcohol and food for the event a week ahead of the event so we can make last minute
orders to accommodate any changes in the event. We will set up a DJ table and cake tables
along with the buffet tables. We will require a downpayment of ten percent of the event costs
and the remaining amount is due at the conclusion of the customers event.

Our business location will chosen based on its access to the intended market. We plan
to have a venue to host receptions and parties, a nice area to have weddings on a lake, and the
kitchen/office space. We will also have a lighted parking lot with a gate at the front of the
complex. The choosing of our location is key to our success. If we do not have a prime location
then we can never meet our target market.
Our main facility is our catering venue, the kitchen, the office, the food truck, and after
the business is well-established, the restaurant. We will require kitchen equipment such as
fryers, ovens, dishwashers, freezers, coolers, and gas ranges. We will also need bar taps, a
public address system, an alarm system, lawn care equipment, a fire suppression system, and
cable.
IX. Management Team and Company
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Josh Boudreaux is the CEO and Founder of Papa Boudreauxs Kitchen. He has a vast
knowledge of the catering business, and has six years of experience in the food industry. He
has noticed inefficiencies in the food and catering industries, and hopes to revolutionize the
culinary experience.
Executive Chef Scott Dardenne has fifteen years of experience, including experience as
Executive Chef of Parc 73 for five years and Chef de Cuisine at The Island Country Club. He
hopes to use his Cajun roots to provide an ever lasting taste.
Chef de Cuisine Thien Nguyen is scheduled to graduate from the Chef John Folse
Culinary Institute at Nicholls State University. He is excited to use his new skills in a unique
environment, using several techniques he learned from the famous Chef John Folse.

Because of our limited start-up capital, we plan to utilize our knowledgeable Board of
Directors regularly so that we may plug competency gaps before can hire someone with this
expertise. We plan to form a diverse Board of Advisors, including those with years of experience
in the culinary industry, marketing executives, and various small business owners from the
Baton Rouge area.

As profits emerge, we plan to hire a Director of Food and Beverage to direct marketing
and sales and a Catering Coordinator. Additional positions will be added to the business,
dependent upon the success of the business.

X. Overall Schedule
Our overall schedule includes the following events:

Obtain Financing
Rent Facilities
Launch Business
First Sale
Begin Donations to St. Vincent de Paul
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Initial Press Release

Utilization of Various Marketing Tactics
Accumulate a Strong Customer Base
Acquire Food Truck
Bring Food via Food Truck to Impoverished Areas
Build Restaurant
XI. Financial Projections
Sources and Uses of Funds Statement
Uses
Gas fryer
1156
prep table
1938.94
heat cabinet
2269
gas range
2479
double check oven
6730
exaust food
1793
char broiler
2517.25
chafer/rec
35.99
chafer/round
45.59
dishwasher
7375
round tables
119
chairs
21.79
ice machine
3136
walk in cooler
8125
reach in freezer
4336.95
ice scoops
18.49
ice caddy
769
necessary cooking supplies
1200
quick disconnect
225
carving station
298.65
serpantine tables
116
round table cloths
255
table covers
109
glass
61.19
rocks glasses
67.99
glasses
78.19
coffee cups
6.59
glass plates
99.59
utensils(99)
1.29
Total
74,351.64
Sources
Family and friends
40,000
Small business Loan
20,000
Personal investments
15,000
Total
75,000
Assumptions

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Papa Boudreauxs Kitchen believes that the economy will become stronger over the next few
years. We also believe that the catering market will be in high demand the for the next 10
years. We also believe that over the next few years established clients of our competition will
switch to us due to the fact that we give back to the community.

ProForma Income Statement

26

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https://www.theknot.com/marketplace/elegant-affairs-gonzales-la-383359
Page, K. (2015). The Average Salary of Catering Staff. eHow. Retrieved from
http://www.ehow.com/info_7758320_average-salary-catering-staff.html
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http://www.parc73.com/index.php

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