The Homecare project is important to help bedridden patients. Our focus is to work out business plans that will benefit all our business partners.
Each business owner should see value in our proposals. It is important to help the community, and rewards for that alone is often received without our support.
The Homecare Board however believes that our only chance for success will be when the Foundation can provide services to business partners that will result in more income for them.
We ask restaurateurs to donate vouchers until December 2017. The vouchers will for the interim period be used to reward financial advisors and estate agents for their monthly contributions while we set-up the network. The different sales teams will also buy vouchers at full price for personal use and for clients they want to thank for supporting them during the month.
The Homecare Foundation will mail their clients vouchers with communication where we inform their clients that the sales person has been registered as an Ambassador who took up the responsibility to help fund bedridden patients. . (It is part of our strategy to help the sales people get additional clients via “word of mouth” marketing.)
The Homecare Foundation can inform their clients that we rely on these people to support the patients. We also tell their clients about our project that will in future play an important role in supporting people in frail care. We also explain the partnership with the restaurant and we ask these people to Enjoy Life and to spend time at our restaurant partner. Herewith an example of such letter that will be send to people who bought properties.
The sales people will donate funds to the Homecare Foundation, and our accountants will immediately pay the full amount of these vouchers into the restaurant’s bank account. Sales executives also participate in a competition where they earn entries for every Rand spent at the restaurant. Estate agents will for example buy restaurant vouchers instead of buying flowers for the new property owners.
We encourage people to write down the EL Logo on the till slips when they enter to earn points for bucket list support. If a person decides to donate for example R5 towards the fund, the person will then write R5 next to the EL logo and will also pay an additional R5 at the restaurant. There is a separate field on the phone app where they type in the amount donated. The phone app allocates 1 point per Rand spent at the restaurant. The software will allocate 10 points for every R1 donated. Example: Person spend R80 at restaurant and decides to donate R5. He will earn 80 points plus 50 points, thus 130 points in total.
The phone app will immediately inform the person that we will notify him/her once we received payment from the restaurant.
The software will provide management with a report of which invoices for the last week received donations from the public. We will ask the business owners to transfer the donations on a weekly basis. As soon as the Homecare software registers the payment from the restaurant, the software will log the report as being paid and the software will notify the different app users that donations have been received. This will encourage the public to donate more, because they will see that the Foundation actually receives their contributions and they can also view reports of how the donations have been distributed amongst patients nationally.
5% Of all revenue is directly re-invested into restaurant partners. Our drive is to ensure that the Enjoy Life app provides the best restaurant deals ever! 2% Of revenue will go into separate projects aimed to draw foreigners to restaurants.
Our business plan is to work with a small number of restaurants, in order for us to work as a team. The strategy is to increase table bookings where restaurants need more clients. It will not be wise to publish exceptional deals for time-slots where the restaurant is already full. We will rather plan media to draw people for earlier sessions, or for days where the restaurant in general has open tables available.
We believe that it will be possible to distribute R3.3 million per month amongst 105 restaurants nationally:
Restaurant footprint needed before launch of app
We implement and manage business plans to the finest detail to ensure that restaurateurs benefit immediately while we set-up the businesses nationally in preparation for our national launch.
We ask restaurateurs to support us with the following voucher requests per area:
Major towns and cities (Category A) – Accept 4 x R150 vouchers per month.
Medium sized towns (Category B) – Accept 4 x R100 vouchers per month.
Small towns (Category C) – Accept 4 x R50 vouchers per month.
These are our “Donation vouchers”. We will issue 4 vouchers to the property company. The restaurant will not receive cash for these vouchers. Restaurants will receive the full amounts on other vouchers we issue.
The property principal use 2 vouchers per month for personal use. The property principal will use the remaining 2 vouchers he/she received as reward gifts for their top sales person and for their agent with the most property listings (new properties the agency can sell/let) per month.
We will explain (Category A) town in our example:
Research amongst restaurants in larger towns revealed that the average dinner bill for two people, where they bought a bottle of wine with their meals, exceeds R300. The restaurant will receive 4 table bookings per month where 4 couples will dine. We encourage the people to spend large amounts to support our restaurant partner.
We therefore expect that all 4 bills will exceed R300 each. We estimate that a restaurant on average works on 50% gross profit per meal. The restaurant therefore makes a small gross profit on these 4 vouchers we arranged. These vouchers are for business owners and we can ask them to spend within the Region of R300 plus.
The restaurant will also be supported with additional business. In certain “Category A” areas, the Foundation has business partners who employ more than 15 estate agents. They also employ admin staff. The estate agency focuses on selling and renting properties.
They might order vouchers that will differ from R50, up to R500, depending on the commission earnings they made on a transaction. The agency might have sold 10 properties and signed 10 new rental agreements. The agents will order vouchers so the Homecare Foundation can inform their clients about the exceptional partnership with the agents. We will e-mail their client the vouchers and we will inform their clients about the project to fund bedridden patients and we will talk about the partnership with the restaurant as well. (It is people that will be living in your catchment area who will be notified that the restaurateur helps us with this important project.)
We foresee that a restaurant might receive up to 20 table bookings out of property clients. The full voucher amounts will be paid into the restaurant’s bank account. Property clients will pay the rest of their bills at the restaurant. (Agents only earn points on the voucher amounts.)
There is also a big chance that the staff working at the agency will support the restaurant during the month. They might only buy lunch or a coffee, and they can perhaps encourage their spouses to support the restaurant. Remember that only two staff members received vouchers as gifts.
The same principal applies to the financial advisors. They will also support restaurants with coffee purchases etc. They often meet clients at restaurants for presentations and prefer to arrange with their client to take an hour off work and meet them at a restaurant of coffee shop for presentations.
A restaurant could easily receive up to 40 table bookings within our partnership, and this is only during Phase 1. This is truly an exceptional reward for assisting the Foundation with 4 vouchers which will more likely result in a small gross profit in the 4 table bookings.
The same principal applies to “Category B and C” towns. Each restaurant will immediately benefit from our partnership. It might be with less clients and smaller voucher amounts, but there will be no financial loss to participate in this important project.
We work hard to get the companies nationally ready so we can launch all our media campaigns.
The people receiving vouchers during the interim period will only receive it until we launch the media campaigns.
Our restaurant partners will benefit immediately as we ensure that high LSM income people support our partners straightaway.
Monthly fund distribution after we launched the phone app
The Foundation will use 5% of revenue (we foresee R3.3 million per month) to help fund the 105 restaurants that we negotiate with during the next 6 months. We will use another 2% of revenue (we foresee R1.3 million per month) in separate projects aimed to ensure that foreigners on holiday will visit our restaurant partners.
The revenue will grow on a monthly basis, as we will negotiate with more companies to use the Enjoy Life app for media exposure. We foresee to raise more than R66 million per month from the different industries and from the public directly. We predict to start with R750 000 revenue in December 2017.
We developed the phone app so that the public can donate without any hassles. Our business plan is to use restaurants, fuel stations and fast-food businesses as “collecting points” to help gather funds from the public. Restaurants can register donations as a Non-VAT item on their systems. There will be no TAX implication for restaurants when they collect donation fees on behalf of the Homecare Foundation. The following link explain SARS rules when collecting donation fees.
The Phone app will notify users which restaurants (and other companies) are able to collect donations from the public. We believe that the public will more likely donate funds towards the patients, especially when they are dining out themselves. (Again, not all app users will use the Bucket list. The people that do, will also be more inclined to support patients)
The software enables us to create deals that would otherwise not have been possible. We can plan specials where there are for example an oversupply of stock (For example too much fish was ordered).
In general, when a restaurateur wants to plan specials, he/she cannot limit the specials to a small number. Companies such as Wikideals, Groupon (when they were still open in SA) will negotiate with a restaurateur to offer for example a steak at a huge discount, and the offer must be open for a set period. They also ask commission (in general 50% of the price) to market the specials to the public. This makes it very risky and expensive as numerous people can take up the specials.
The Enjoy Life app can plan specials better. We can notify the people we target that only 3 steaks are on offer for a specific time. We can also target less people. The first 3 people to respond will receive the special. The software will also know which people took up exceptional specials for a specific period, and the software will therefore not post such great deals within the next month.
The software can also plan which income bracket clients to target (based on the towns/suburbs they reside in). The Enjoy Life app will eventually support all the fast-food businesses and they have clients that we do not necessarily want to target for our restaurant partners. Their clients will receive specials and communication from the fast-food industry. We will target some of their clients when we know these clients live in suburbs and towns that will benefit our restaurant partners.
The funds that we will pay towards restaurateurs can only be used to subsidize costs of meals. We will - on a monthly basis - work with restaurateurs to plan how the available funds can be utilised to secure more business for the restaurant.
The following example explains:
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: we can say that the actual cost to company for a steak is R60, and the steak is listed on the menu for R150. Category A restaurant will eventually have access to R43 109 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 R25 per steak to specific people we target. The phone app user will only be able to book one steak. 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.
The software will know that 3 vouchers were used and that R35 times 3 must be paid over to the restaurant to help fund the shortfall on actual costs. It will be possible to list a large number of exceptional deals on the phone app per month.
The funds that were not used will be carried over to the next month.
The Foundation will source up to 1 231 clients per month (58 clients per day excluding Fridays and Saturdays) if we need to use R35 to subsidize the shortfall.
Most restaurants cannot cater for an additional 58 clients per day. Our intention is to systematically change the specials towards week-ends and also to gradually pay more funds to the restaurateur, so that he/she do not offer the one steak at cost.
We will support the restaurant even if we need to pay the total cost of the one steak in future. We want our 105 restaurant partners to make huge profits… we want to reward them for assisting us during the launch period.
This partnership is unique and the financial benefits for restaurants is enormous. The Category A restaurant will eventually receive more than
R517 000 per year to structure more deals that will source more clients. The restaurateur benefits immediately as people already support the restaurant. As mentioned, we manage that the restaurant makes smaller gross profits during the implementation period on 4 vouchers we arranged. To receive cell phone marketing support for years to come is worth millions. The largest benefit is not only the financial support, but the fact that we ask a large number of business owners to support the restaurants at least once every two months. This is a reasonable request and people will be inclined to help our partners.
The Homecare Foundation values life… we believe people should enjoy every moment. We believe that great food and a pleasant atmosphere contribute to a person enjoying special moments. The fact that we build our financial support towards bedridden patients around a business relationship with top restaurants will benefit our partners endlessly.