Krumm und schief: Launching an innovative fries restaurant in Vienna
Wintersemester 2020 - Start-up project
Our project called Krumm & Schief – Organic Fries is a sustainable gastro concept that will sell organic fries in Vienna. The concept that we pursue is to make the best fries that Vienna has ever seen. The main USP of our venture is that we do this in a sustainable way by using potatoes that would otherwise be thrown away because they are not in line with high standards of bulk purchasers in terms of aesthetics and form. Additionally, all of the used groceries are organic. We add different vegetarian and vegan toppings to our fries that make the dish suitable not only as a snack but also as a main course. By partnering with farmers that supply us with unwanted potatoes we create economic value for the farmers while also creating an ecological benefit through the reduction of food waste.
While brainstorming, we identified two problems, that we wanted to solve with a single business idea. First, there is no real fries restaurant in Vienna and second, many vegetables are wasted along their value chain.
With the Build-Measure-Learn approach that was brought to us at the beginning of the course, we went through five iterations in which we were able to thoroughly design a solution for these two problems.
In addition to the extensive primary research we conducted, we also interviewed key experts in the gastronomy business such as the CEOs of Swing Kitchen and Wrap Stars and ran an online survey that proved tremendously insightful and enabled us to truly figure out to which customer segment, we appeal most to with our idea and how we can adjust our business model to suit our target group. Moreover, we got three LOI’s from our key partners.
Our research suggests that we should start with a restaurant in the 7th district of Vienna and pursue a beachhead strategy. Our survey indicated that customers aged 16 to 35 years who care about sustainability and climate issues should be our main focus point. Putting emphasis on a single customer segment will allow us to reach economies of scale faster, since we will be able to narrow down our product range while purchasing large quantities at the same time. Bit by bit, once we succeed in our original market, we will start to increase the items on our menu in order to attract other segments as well and expand geographically.
It is our goal to open new branches as soon as possible. According to our analysis the 3rd and 9th districts seem promising, as there are not only educational facilities such as university faculties and schools nearby but also shopping malls and highly frequented public spaces.
Our research has shown that new gastro-businesses experience fast growth. Most of our competitors, like Swing Kitchen or Burgerista, were founded during the past decade witch each chain having managed to open six restaurants in Vienna on average, leading to yearly sales of over one million Euros. In summary, the fast-food gastronomy sector has grown significantly within the last 5 years: from around eight to eleven billion Euros. Several new businesses emphasize sustainable and quality food. However, one major focus is still missing: fries, which is our opportunity to fill a gap in a growing market.
While conducting research and interviewing our experts, we also came up with more ideas regarding the sales channels, such as the food-truck sector or frozen supermarket products which pose great potential for growth.With regards to our financials, we found out, that we can calculate with an average receipt of €9 and can expect around 8 customers per hour.Therefore, we estimate to become profitable in the second year with revenues of around €300.000 each year.
Krumm & Schief – Organic Fries
Felix Harml, email@example.com
Tuong-Vi Sophie Quach