Investments for interim period (continues)
How will the investment option benefit a restaurateur?
First, we need to explain that all the restaurants supporting the Launch competition will benefit for years to come. Each restaurant will receive a percentage of the Restaurant marketing budget.
We predict to raise approximately R67 million per month out of our own economy. This will include funds out of our 3 000 plus fundraising drives per year.
We will also secure finances from organizations abroad. For planning purposes, we only focus on income streams that we can manage with more certainty out of the South African based platform.
It is a unique project where 50 restaurants will actually earn income out of other restaurants and fast-food businesses nationally. The commission that the Foundation will earn on beverage sales from the entire restaurant network will be utilized to secure more clients for the 50 partners.
Our focus is to push exceptional specials towards the public when the restaurants need additional clients. Restaurateurs will be able to manage the process themselves.
We offer each restaurant that participate in the launch competition 0.5% of our Restaurant marketing fund budget. It will within a short period be
+ R16 580 per month that will be available for the restaurateur to discount meals on the Enjoy Life phone app.
We also offer restaurateurs the option to donate fees. These restaurateurs will receive an additional allocation out of the marketing budget.
We give restaurateurs the option to “purchase” additional percentages out of the National Restaurant marketing fund. The restaurateur can pay off the additional allocations over a 4-month period.
The restaurateur will receive an additional 0.5% of our marketing budget for every R10 000 donated. It is for example possible to receive 2.5% of our marketing budget when a restaurateur donates R40 000 over a 4-month period. It will bring in a large number of clients when we use R82 000 per month to discount meals and push the deals to people in the catchment radius phones.
How will the marketing funds be utilized to source additional business?
Our objective is to help fill the restaurant within time-slots that the restaurateur needs additional business. It will not be wise to offer exceptional specials for Friday night if the restaurant in general is full on a Friday.
There might be a need to fill the restaurant for an earlier session on Friday night (for example clients before 19H00), or the restaurant might need to target people for Thursday night.
Our strategy is to publish exceptional specials for Thursday night. For example: A steak is listed on the menu for R150. The Enjoy Life app want to push a special for R20 per steak to people in the catchment area. A restaurant can eventually have access to R82 000 per month in order to help subsidize exceptional deals.
We might decide as a team that it will be great to offer 3 steaks for Thursday night at R20 per steak to specific people we target. The first 3 people to book these specials will be able to buy the steaks at the low cost.
The result will be that 3 couples visit the restaurant and that the restaurant makes profit on the rest of the menu items bought by the guests. (It is only one person per table that get the R20 steak, the partner will dine at normal menu rates)
The software will know that 3 vouchers were used and that the shortfall to sponsor the 3 persons must be paid over to the restaurant.
The funds that were not used will be carried over to the next month. The restaurateurs will have a web-based report that will provide all the detail needed about the “Restaurant marketing fund”. The Homecare accountants will on a weekly basis transfer funds to the restaurants to refund the specials posted on the Enjoy Life software.
We can use software and the marketing budget to ensure that the restaurant partner will have a large client base.