Current StatusRevenue Generating, Pre-Profit
Amount InvestedRM500,000
Funding RequiredRM2.5million
DescriptionThe Hotpot is now a 1.5 years old steamboat restaurant at Publika (KL) that is well-known for its signature soup base, homemade ingredients, Japanese sake pairing and dine-in karaoke rooms. The idea is to transform the hotpot culture in Asia to one that combines entertainment with good food and convenience. We plan to expand The Hotpot’s current capacity to meet the demand from customers – more hotpot karaoke rooms, more selection of Japanese sake, full-on delivery service / catering.
Business Opportunity(1) Hotpot chains in Malaysia are limited to the Grand Imperial and Paradise Groups which are banquet-style restaurants. There is a gap in the market for hotpot chains that offer casual environments with focus on homemade and msg-free ingredients. 

(2) Hotpot with karaoke is a trend that is picking up fast. To test the market, the current restaurant has 1 private karaoke room with dine-in hotpot. Even with a minimum spend requirement of RM800, the room is booked almost daily with waiting list. Spending per room goes up to RM1,200 on average per table of 8 pax; and customers range from big families, groups of friends to corporate dinners. 

(3) Online food delivery is on the rise but not many hotpot restaurants offer food delivery. The Hotpot is the first of its kind to sign up with Delivereat, Foodpanda and Honestbee for hotpot delivery. With only 2 types of set menu on the food delivery platforms, there are already at least 20 delivery orders monthly. There is potential for the market to expand further especially with ease of online orders and even catering.
Revenue / Business ModelThe business will generate revenue via:
1) Joint ventures as first expansion
2) Franchise locally and internationally
3) (Ultimately) Sale of business to big corporations
Management TeamThe current team managing The Hotpot are the co-founders themselves. 

Mandy Woo is Co-founder and Chef of the restaurant. She is responsible for the conceptualizing of the menu, including recipes for all homemade items and soup base. She is also responsible for the food presentation, food quality and food inventory. 

Joe Teh is the Co-founder and General Manager of the restaurant. She is responsible for hiring, finance, procurement, marketing, overall inventory and general day-to-day management of the restaurant. 

Other planned members of the management team to be hired:
Finance and Procurement Officer
• Manage all financial and procurement management activities for the restaurant including bank account and petty cash reconciliations; accounts payable; sourcing and contracting of suppliers; review and verification of invoices; data entry into accounting systems; fund transfers; cheque and cash payments.
• Establish and manage systems for cash payments and fund transfers to staff including per diems, accommodation/travel allowances, expense claims and petty cash.

Assistant Operations Manager
• Supervise daily operations of organization. 
• Develop productive, profitable and achievement oriented working environment for employees.
• Address operational issues and concerns in a timely fashion.
• Supervise operations team to ensure operational excellence and excellent customer services.

Marketing Executive
• Develop marketing plans including advertising, PR and social media activities
• Work closely with external creative freelancer to design menu and marketing materials 
• Produce creative content, including videos and social content 
• Source and secure partnerships or event opportunities with social influencers or relevant brands that complement the restaurant
• Maintain and update customer databases
Company BackgroundLooking back at the business milestone 2017 – 2018 
April 2017: 
• Secured partners; established Good Food Ventures
• Sourced for restaurant location
• Trial and error on menu items and soup bases

Jun 2017:
• Secured location at Publika, Solaris Dutamas
• Pre-seed, 1st capital – RM200,000
• Renovation commenced
• Hiring of restaurant staff

Aug 2017: 
• Renovation completed
• Full team of 7 staff hired for the restaurant
• Pre-seed, 2nd capital – RM150,000
• Restaurant officially opened

Sep 2017: 
• Sales started to pick up
• 1st Facebook review received and it was positive
• Engaged blogger reviews 

Nov 2017:
• Experienced first staffing crisis – loss of local staff
• Engaged foreign worker agency
• Pre-seed, 3rd capital – RM60,000
• Sales doubled since opening
• Introduced all-you-can-drink sake promotion to encourage sake pairing with hotpot

Dec 2017:
• Full team onboard again – all foreigners
• Menu is updated to include more items and new pricing
• Achieved highest sale ever – RM93,000
• Facebook and Google reviews rated at 5/5 based on 25 reviews 

Feb 2018
• Pre-seed, 4th capital – RM80,000
• Operations stabilized, restaurant team turnover reduced to 0%
• Food costs adjusted to 40% (from 45%) of sales revenue
• Suppliers granted restaurant 30-day payment terms

Jul 2018
• Engaged delivery partners – Delivereat and Honestbee 
• Sake choices increased from 6 types to 25 types, supplier granted consignment
• Food costs adjusted to 35% of sales revenue

Oct 2018
• Trend of sake drinking is apparent; 7 out of every 10 tables will order sake with hotpot
• Engaged delivery partner – Foodpanda
• Achieved YoY growth of 36% for sales

Nov 2018
• Achieved YoY growth of 15% for sales

Dec 2018
• Menu is updated to include even more items 
• Year-end review of the business revealed the challenges and strengths of The Hotpot
• Kick started research and plan for Seed funding
Funding MilestoneMonth 0: 
• New restaurant site confirmed – site downpayment budget at RM 100,000
• Seed, 1st capital investment – RM 1 million
• Renovation commences 
• Hiring of restaurant and management teams

Month 2: 
• Renovation completed
• Pre-opening trial
• Rebranding + Photography 
• Influencer Marketing 

Month 3: 
• Seed, 2nd capital investment – RM 500,000
• Restaurant official opening
• Promo-driven Marketing to re-ignite customer interest / reconnect with regulars 

Month 4: 
• Achieve RM93,000 in monthly sales (as per forecast below)
• Secure payment channel partners
• Secure delivery partners
• Secure catering partners
• Development of mobile app with loyalty programme + ordering platform
o Integrated with payment channel (ipay88 / Paypal)
o Integrated with delivery partners (Honestbee / Foodpanda / Grab Food)
o Integration on catering 

Month 7: 
• Seed, 3rd capital investment – RM 150,000
• Launch of mobile app
• Marketing of mobile app
• Promotion on loyalty programme
• Marketing of catering offer
• Source for potential joint venture partner for 2nd restaurant

Month 9:
• Secure joint venture partner
• Source for 2nd restaurant location

Month 12: 
• Secure 2nd restaurant
• Seed, 4th capital investment – RM500,000
• Renovation commences
• Hiring of restaurant team

Month 14:
• Renovation completed
• 2nd restaurant pre-opening trial

Month 15:
• Seed, 5th capital investment – RM255,000
• 2nd restaurant official opening
• Fundraising for Series A in preparation for regional joint venture / franchise – RM8 million 

Month 19:
• 2nd restaurant achieves positive cash flow operation
• Secure Series A
% Equity Allocation49%
Expected ROIAchieve 11% return on investment to investors after the first two years and 14% after the next two years.
Risks and Mitigation• Copy-cat competitors
• Staffing issues
• Risk of infection outbreak
Exit Strategies• Merger and acquisition
• Selling of equity
• Selling of business
Company NameGood Food Ventures
Business AddressD1-G4-9 Solaris Dutamas, Jalan Dutamas 1, 50480 KL Malaysia
Contact PersonJoe Teh
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