Hot Food Vending Machine

ABOUT

Hot Food — Vending machine is a product idea that will offer Indian cuisine hot meals in a vending machine. A majority of 9-To-5 Employees have huge workloads and many people don’t have the energy and time to cook their meals. A solution to this is the idea of home cooked food being affordable and easy to acquire.

Many students who have moved across states or countries will yearn to have home cooked style food.

Our vending machine will contain hot food in a warm temperature inside the machine in a microwave like environment and will come out hot and Ready to Eat.

MARKET DEMAND

The demand of homecooked food is very high specially among the bachelors, college students and Employees and workers who have migrated long distances or are yearning for home cooked meals.

Delicious yet cheap food is hard to obtain in the current market system and we are here to deliver and make it easily accessible at an affordable cost.

Relevant Products

1)Vending machines for cold drinks, snacks exist across the world and while having hot food is not unique (similar exist in Japan), it will be a new addition to India.

2) Mom meal of the moment is a brand that has experimented with food in vending machine as dabbas, cup noodle style.

Target

The main purpose is to deliver home cooked food to migrant workers and university students. One way of implementation is to place our vending machine inside firms and campuses, or place them near hot spots of offices/universities and metro stations.

Our secondary customers will come as white collars and students with a lot of work load and don’t have the time to cook a decent meal and wouldn’t want to spend on unhealthy food.

REQUIRED KNOWLEDGE/EXPERTISE

1)Hardware — the main component is the vending machine which have the heating function and the mechanism to pick up the food and place it into the tray.

2)Research — Research and communication with firms and universities will have to take place to find suitable places for the machine. Hot spots can also be in proximity of Universities, Offices.

3)Employees — Optimally the employees would be homemakers so that we get the best homemade food experience for our customers. This will help homemaker bring in a passive income.

4)Packaging — Using a bin for the packaging and containers to recycle them.

SOLUTION

The startup will bring solution like:

· Passive Income — It will help homemakers get a way of contributing to the family income.

· Food Deliverance — Providing good home cooked food in affordable price ranges.

· Employment — Employees for refilling / transportation of food to machines and also the recyclable waste. Hiring people to cook food from villages with low employment in order to give them opportunities to grow.

Budget

Assumptions –

1. Rent — Free as companies and universities may take it as a facility for their employees

2. Machine Cost will be approx. 1 Lk

3. Average selling price of a food dish would be 50 INR.

As we are buying 50 machines, the cost would be 50 Lks. On top of that we would require an additional 54.5 Lks to cover our first 3 months costs.

Our Estimated costs for the first year are as follows:

The estimated Revenue is:

Growth plan for the years 21–22 till 25–26 are:

The total cost and profit of the same:

Marketing Plan

Our marketing strategy will be to emphasize the strengths of our company and product, as we see to position ourselves as an aggressive and innovative company that supplies the market with ready to eat homemade food. The first step would be to communicate with organizations, universities and metro stations about our product and position ourselves at trade shows and events organized within these organizations. After the first set of machines are out, we can take live videos/photos and ask the employees to give feedback and we can use those in advertising across our social media as we recognize that it takes six times the effort to attract a customer than retaining one. To that end, we will operate under the principle that a satisfied customer is our marketing goal. While vending machine industry is on the rise with various organizations, our reputation to provide warm food via the vending machines is important to us.

Risk Analysis

The possibility of failure is very high on startups and all the investments and time can end being negative.

Even if the startup goes off well, there are possibilities of people not purchasing the food or only buying once a while and so the revenue would fall drastically as compared to predicted.

What we think could be some of the main risks and its solutions:

Milestone and Timeline

Getting funds and our first seeding — for the first three months.

Buying vending machines, getting employees, speaking with independent chefs and homemakers. Certifying the taste of food and kitchen’s hygiene.

Buying vehicles for transportation of food, refilling and recycling as well.

First major milestone will be the setup of our starting 50 machines and the passing through the first few months. (which would be the hardest)

After that, we hope to recover the invested money and then the business to pay itself and grow.

Every 6 months, the board will do a re-evaluation of the company and look to improve on our weakness and ways to grow faster.