Hedgehog Ventures

1
Hedgehog Ventures
Jill Sawyer, Amanda Craig, Danielle
Bonneau Jeremy Hartwell Amanda Plante, John Rose
Of Foxboro
2
The Sonic Strategy Differentiation

• Innovative
• Personal carhop service
• Convenience
• Excellent customer service
• Features
• Outrageously unique menu options
• Fun overall experience
• Patriots-affiliated promotions

3
FOCUS Norfolk County

• Reasons
• Rt. 1
• Vast amount of attractions
• College environment
• Gillette Stadium
• Patriots, Lacrosse, Revolution traffic

4
Norfolk County Statistics

• Population
• Restaurants in area
• Sonics main competition in area
• Au Bon Pain, DAngelos, Panera Bread

5
Start-Up Construction

• There is space to build on Rt. 1
• Most zoning districts allow fast food
  restaurants
• By looking at comparable land for sale, cost of
  land is approximately 200 thousand
• Cost of construction is 250 thousand
• Cost of building permit is 14 for every 1,000
  spent on construction
• Hedgehog Ventures will make sure our Sonic store
  looks attractive, which is required for the
  building permit

6
Running our Sonic Store

• 9 AM 11 PM Seven Days a week
• Staffing
• At least two carhops on duty at all times
• General Manager Partner
• Two Shift Supervisors
• 1 Assistant Manager
• 2 Carhops on Duty at least at all times
• Training Provided by Sonic Franchise Support and
  In house
• Pricing
• Equipment
• Inbound Logistics

7
Marketing Promotional Objectives

• Marketing
• Penetrate 10 of households in our target market
• Become a leader in the fast food restaurant
  market in
• the Foxboro, MA area
• Promotional
• Create brand awareness at consumer level
• Increase interest and comprehension of Sonic
  product offerings
• Leading to action and conviction on behalf of
  the consumer

8
Advertising

• Franchise Supported Advertising
• Television
• Newspapers
• Radio
• Outdoor
• Local Advertising
• Key to creating buzz around grand opening
• Press releases to local publications and news
  journalists

9
Promotions

• Gillette Stadium
• Patriots game ticket holders receive discount
• Advertising billboards in stadium
• Use signage in front of store to advertise
  promotions

10
Funding

• 725,000 from the Arthur Schwartz Franchise Fund
• Managed by Hedgehog Ventures
• 378,210 in long term debt
• Total opening cost of 1,103,210

11
Initial Costs

• PPE 502,000
• Other (franchise fees, royalties, licensing,
  advertising, etc.) 68,500

12
Earnings Predictions

Profits
8 yrs
Break-even point

• Break even after approx 8 years of service
  (assuming a 4 SSS growth)
• Earnings predictions give us a total of
  2,300,000 over the initial 20 year franchise
  period

Losses
10
20
Time