June 29 presentation_verf

Copyright © 2014 very50
1
Mission on the Ground (MoG)
- in collaboration with HAPA and Young Leaders
TOKACHI PROJECT

Table of Content
HAPA Project Overview1
Tokachi Café Project Overview2
Hawaii Macro Data3
Tokachi Café Two Models4
Food Restaurant Model (Tokachi Kitchen)6
Comparison Matrix (Pros & Cons)7
Take Away (Lessons)8
Concept Café Model (Community Café)5

HAPA Project Overview – Tokachi HAPA Project Overview
Tokachi Project, first international MoG with HAPA, aims to revitalize agriculture
and tourism through regional branding.
TOKACHI HAPA Project
Place : Tokachi, Hokkaido
Date : May 24 – 28
May 28 - June 4
Stakeholders Objectives
 5 Hawaii Uni Students
 5 JP Uni Students
 HAPA Executives
 Hawaii Young Leaders
 Mr. Goto Kenich
 very50
 JP Young Leaders
 To propose a sustainable
community-centric
development approach with
local values.
 To promote an innovative
community development
initiative
 To establish a global brand
“Tokachi” around the world
through five projects:
Tokachi café, sister region,
Tokachi documentary, its
books and Azuki competition.
IMPACT
OUTPUT
 Tokachi stakeholders
*Product
sales

HAPA Project Overview – Objectives (New Form of Community Development)
Tokachi Project proposes an alternative community development approach:
community-centric, sustainable and local values.
Urban-centric Development Community-centric Development
Connects regional communities with
other nations directly on a global level.
Regional
Urban
Global
GlobalRegional
Introduces authentic local values with
traditional products and services.
Supports the natural surroundings and
ecosystem in a sustainable way.
Makes the best use of traditional and
regionally-unique specialties.
Connects regional communities with
other nations only through urban cities.
Urbanizes regional communities by
imitating big cities.
Creates one directional relationship:
regional → urban → global.
Attracts tourists as a “gathering place”
for people and money alone.

Partner
Prot Asia (Mr.
Goto) &
other Tokachi
stakeholdersSupport
Tokachi, Hokkaido
HAPA Young Leaders
Promising 25-40
year old leaders in
various fields
Tokachi Project consists of international stakeholders with diverse
backgrounds in terms of nationality, experience, education and profession.
International MoG Team
Hawaii StudentsJP Students
Support
very50 Staff
Experienced
Professionals
Problem
Solving
 Concept Making
 Marketing
 Branding Strategy
Successful
businesspersons
with social mission
HAPA Project Overview – Stakeholders

International MoG team consists of 9 students from Japan & Hawaii
Hawaii Team
Japan Team
Kurt Cullen Masato Itoh Tuan LaKaili Taniguchi
Yusuke Noguchi Megumi Kimuro Moeka Mizuno Naoto Umezawa Shunsuke Maeda
HAPA Project Overview – Tokachi Café Team

There were some big pivots in our project. The focus of the project shifted from
Azuki to veggie tea cafe to Tokachi cafe
HAPA Project Overview – Tokachi HAPA Project Overview
Tokachi Azuki
Veggie Café &
Prod. Sales in
Global Markets
Veggie Café
in SG & Hawaii
Tokachi Café
in Hawaii
April 1 May 28
• Global sales of processed food
made of Tokachi Azuki
• Café & Tea product sales ?
• Selecting HK, Shanghai, SG and
Hawaii markets
• Veggie tea café
• Primary data and secondary data
in SG & Hawaii was collected
intensively
• Two Tokachi café models
were developed

Veggie Tea Cafe – Strategy in SG & Hawaii
Veggie tea café project goes through three stages of strategy development.
Tactics
ManabeGardenetc.
Basic Info1
Tokachi (Hokkaido)
Agricultural policy
(JA and TPP etc.)
Food & Beverage
Industry
Community
development
Idea Generation
Brainstorming of
ideal cafés by team
5P*3
Product
Promotion
Price
Place
Partner
* parts of stage 2 & 3 can be
overlapping
2
Finance
Marketing
Branding
•tax system
•Initial capital
•running cost
•etc.
•customer
•country risk
•mission/vision
•brand message
•efficacy of tokaté
•tax system
•Initial capital
•running cost
•etc.
•competitor
•company
Primary1 Secondary1
Primary Secondary
Market*
Strategy
1 Primary & Secondary Data

In the end, Two Tokachi Café models featuring Tokachi produced food were
developed.
Tokachi Café in Hawaii
Two Models were developed
Tokachi Café Overview

Tokachi Café Overview – Project Flow
Tokachi Café project have gone through three stages of strategy development.
HW Macro
Info
Population
Ethnicity
Disposable Income
Tourism
Legal
Logistics
Mission Statement
Mission & Vision
Decisiontobemadeasaresultof
comparisonmatrix
Concept Café
Supply Side
(Concept)
Demand Side
(Customer/Competitor)
Product
Promotion
Price
Place
Food Restaurant
Supply Side
(Concept)
Demand Side
Step 1 Step 2 Step 3
4P
Product
Promotion
Price
Place
4P

Tokachi Cafe Mission – Mission Statement
Tokachi Café’s mission statement was created to convey Mr. Goto’s message in
a concise way.
Mission Statement
Mission & Vision

Tokachi Cafe Mission – Mission Statement
a concise way.
We Tokachi Café create “Ba” where the
authentic culture of a region manifests into a
unique localized experience to showcase
Tokachi to the world while nurturing a sense
of pride in identity to people in the region.
Mission Statement

Mission statement was broken into missions (why Tokachi Café exists) for
customers and community (region) respectively.
Words to our Customers
authentic uniqueness of the people, food and
scenery in the region manifests into a localized
experience to continue providing inspirational
experiences and ambiance through our core
values such as “perfection”, “honesty”
“hospitality” and “relationship” with five senses.
Tokachi Cafe Mission – Words for our Customers

The concentration of wealth, human resource and knowledge in urban cities is
getting more intense everywhere around the world. This phenomena bring about the
depopulation of regions and loss of their unique values.
Tokachi exists as a region that supports nature and agriculture living together. We tell
the world while building the “Tokachi model” which utilizes available resources in the
region.
The new model is created by Tokachi people which focus on the richness of people’s
lives tomorrow with the vision like this everyone will benefit from a successful
business growth.
Like 130 years ago pioneers developed the area of Tokachi independently from the
government. We accomplish Tokachi Café with people’s dream and hope. By
succeeding this business, the new role model will be built up that can be shared
between Japan and the world. We believe this experience will change people’s
values and create a better future.
Mission for Tokachi
Tokachi Cafe Mission – Mission For Tokachi
Mission statement was broken into missions (why Tokachi Café exists) for
customers and community (region) respectively.

Tokachi mission statement and mission/vision for customers and community
were created respectively.
Tokachi Cafe Mission – Vision for Customer and Community
By 2020, we would like people to recognize concept of “Ba” all
over the world especially in Asian Pacific Region and provide
high-quality and inspirational experiences.
Vision for Customer
Vision for Tokachi
We do not rely on government support. We collect capital from
the private sector. We will have “Tokachi Café” in Hawaii,
Singapore, Hong Kong and Shanghai in 5 years. Companies
from other prefectures will open shops overseas in 7 years.
Tokachi Cafe will be introduced at Tokachi memorial museum
after 20 years.

Hawaii Macro Data – Population, Ethnicity, Income, Tourism, Legal , Logics
Hawaii macro information was researched to get an overview of what Hawaii
market looks like.
Hawaii Macro Info
Population ・ Ethnicity
Disposable Income
Tourism
Legal ・ Logistics

Hawaii Macro Data – Population, Ethnicity, Median Income
Highlights of Hawaii are 1) dense population 2) large Asian community and 3)
higher disposable income than the mainland.
Population
Median Income
Density
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Asian White Hispanic Mixed Race Black Native
Ethnicity Distribution
Hawaii:
Honolulu:
Oahu:
Obihiro:
1,404,000
391,000
983,000
168,000
Honolulu:
Obihiro:
2,152 /km2
271 /km2
$58,000/ house hold/ year

Hawaii Macro Data – Tourism
Volume
7,800,000 visitors (2013 State)
4,500,000 (2012 Oahu)
Per person per day spending:
$214.20 (2012 Oahu)
US West
Coast,
3,180,000
US East
Coast,
1,700,000
Japan,
1,470,000
Canada,
499,000
Other,
951,000
The largest number of tourists come from the mainland U.S., followed by Japan.

Hawaii Macro Data – Legal: Incorporation Method & Biz Operation Requirement
Legal
 Incorporation Method (LLC or C-corp)1
 Hawaii Business Operation Requirements
• Business Registration (Department of Commerce and
Consumer Affairs)
• Operating License (General Exercise License)
• Liquor License (Liquor Commission)
• Health Department Permits (Health Safety)
• Fire Permits
• Zoning and Land Use Permit (Commercial Use)
• Other U.S customs and Import Laws (all commercial imports
of food products required filing of Prior Notice with Food and
Drug Admin (FDA)- foreign manufacturer must register)(no
restriction on tea, coffee, spices)
2

2
Hawaii Macro Data – Legal: Insurance & Visa
Legal Cont.
 Insurance
Commercial Insurance (~10k/yr)(ACW group)
• General Liability Insurance (~$4-5K/yr)
• Business Property Insurance (~$2-3K/yr)
• Workers Compensation Insurance (~2-3K/yr)
Personal Insurance (medical,disability,life)
 Working Visa for Temp Foreign Employees
File petition with US immigration service
Once approved, apply for either type:
• H-2B: temp non-ag worker (1yr stay)
• L: intra- company worker (3yr stay)
3
4

Hawaii Macro Data – Logistics and Shipping
Matson Shipping Company Quote: Tokyo  Shanghai  Honolulu
Tea products, milk, cheese, confectionaries, pastries
$4,915 for 20ft Refrigerated Container
$6,640 for 40ft Refrigerated Container
+ Surcharges $781 - $1,095

Two Tokachi models are developed and thought of from both supply and
demand sides.
Tokachi Café – Two Models: Concept Café and Food Restaurant
Concept Café
Supply Side
(Concept)
Demand Side
Product
Promotion
Price
Place
Supply Side
(Concept)
Demand Side
4P
Product
Promotion
Price
Place
4P
Food Restaurant

Two different models of Tokachi Café, namely Concept Café and Food
Restaurant were developed.
Tokachi Café – Two Models: Concept Café and Food Restaurant
Concept
Part of revenue is pooled into
Tokachi Café Fund, which is
used to support community
activities for local people.
Open-home kitchen
restaurant featuring healthy,
natural, fusion-Tokachi style
food prepared & served by
your own personal (mother)
Tokachi Chef
Targeted
Customer
20 ~ 40 Females
Medium Income ($58,000)
Male & Female Professionals
Lead Menu
1. Veggie tea
2. Fusion
3. Butado
Fresh, natural, and locally
produced traditional Tokachi
fusion (w/ Hawaii) foods.
Concept Café
(Community Café)
Food Restaurant
(Tokachi Kitchen)

Concept café model, “Community Café” was developed and thought of from
both supply and demand sides. And 4P was elaborated in greater details.
Concept Café – Community Café
Concept Café
Supply Side
(Concept)
Demand Side
Product
Promotion
Price
Place
4P

Concept Café Model – Product : Concept (Overview)
Part of revenue is pooled into Tokachi Café Fund, which is used
to support community activities, of local people, by local people,
for local people. By doing so, it becomes a platform of community
activities where people, information and places are connected.
Community Café
1
2
3
4
Tokachi Café Fund support local
people and its community
Personnel expresses hospitality
through welcoming attitudes
High quality drinks (teas) & food
are provided
Transparency toward customers
is in thorough
Action
1: KSF - Key Success Factor 2: CA – Competitive Advantage
“Ba” concept
for local people
Hospitality
Perfection
Honesty
Core Value KSF1
○
◎
○
○
CA2
◎

All aspects of the café are organically connected to convey the Mr. Goto’s vision
of “Ba” to customers.
Menu
Entertainment
InteriorPersonnel
Tokachi Hawaii
Community
Café
Customer
InformationCustomerPersonnel

By decomposing items that make up of a café, important factors contributing to
a successful café are to be analyzed and worked upon.
Menu
Round Table
Long Table
Black Board
Workshop
Concert
Exhibition
Fringe Benefits
Japanese Style
Events
Combo
Fusion Menu
Veggie Tea
Café Concept
EntertainmentInterior Personnel
Butadon
Guide Books
Fund Free Samples

Combo Menu
Concept Café Model – Product : Concept (Menu)
Menu was decided based on the concept of connecting a region (Tokachi) with
the world (Hawaii).
 Fusion – Mixed Ingredients Menu + Combo Menu1
 Introduction of Tokachi dishes to the world2
Mixed Ingredients Menu
1: High recognition in Hawaii 2: High demand in the
States 3: Easy to export from Tokachi
1: Info on ingredients, calories & producers
2: Tokachi info/sayings in the bottom of the plate
3: Seasonal foods combo
4: Samples for next order
e.g. Bite-sized foods with a six hollowed plate
e.g. Mixing Tokachi produced Kinako with milk produced
in Hawaii  Kinako Latte

Butadon
Concept Café Model – Product : Concept (Menu)
Menu was decided based on the concept of connecting a region (Tokachi) with
the world (Hawaii).
 Fusion – Mixed Ingredients Menu + Combo Menu1
 Introduction of Tokachi dishes to the world2
Veggie Tea
1: No competitor serves veggie tea (CA*)
2: Advantage of Tokachi as “agricultural kingdom”
3: Easy to export
1: High popularity among Hawaiian people
2: Original Tokachi dish (Tokachi’s uniqueness)
*: CA – Competitive Advantage

Concept Café Model – Product : Concept (Atmosphere/Interior)
Configuration of Tokachi Café is shown below.
On the huge black board, included are
community activities, seasonal
events, product/info and mission
statement.
One person counter
Long Table with Toakchi
relevant materials
Open Kitchen
HugeInfoBlackBoard
Round Table
Toilet
TransparentShelf

Atmosphere/Interior was decided based on the concept of connecting
customers with other customers and information.
Connecting customers with other customers
 Round tables with round chairs
 Long tables with long chairs
1
2
1. Tables and chairs to be shared together
Make comfortable and friendly atmosphere so that customers can have talks
2. Tokachi / Hawaii guide books to be prepared
Make Tokachi and local information accessible to customers
3. Seasonal foods and processed foods to be tried
Make processed foods made of Tokachi ingredients such as jams and
dressings available for free to customers

Atmosphere/Interior was decided based on the concept of connecting
customers with other customers and information.
Connecting customers with information
 Big info sharing black board1
“Community Board” is used to encourage
communications between customers
1. Social / community activities
e.g. recruit helpers for the elderly living alone & volunteers for cleaning parks
2. Regular / seasonal events
e.g. sports event, music festival, bazaar, flea market, tea ceremony
3. Café information & product information
e.g. mission statement, café history, production process

Concept Café Model – Product : Concept (Entertainment)
Entertaining parts of the café was though of based on the concept of connecting
the café with surrounding areas
 Events – Workshop, Concert, Exhibition1
 Tokachi Café Fund – Funding for community activities2
Workshop
Concert
Exhibition
• Theme is decided by local people’s proposals & voting
• Tokachi & Hawaii food day for local wives
• Azuki beans mosaic art workshop for local kids
• Locals play ukulele & other music instruments and sing local
songs to deepen understanding local cultures
• Local school kids show their arts
• Scenery pictures of Tokachi and Hawaii
• Make a short movie with customers and broadcast it

Concept Café Model – Product : Concept (Entertainment)
Entertaining parts of the café was though of based on the concept of connecting
the café with surrounding areas
 Events – Workshop, Concert, Exhibition1
 Tokachi Café Fund – Funding for community activities2
Sales Fund Community
＄1000
＄1
Park cleanup program
Education program
Event organizing
Part of revenue is pooled into Tokachi Café Fund, which is used to support
community activities, so that its benefits are shared with everyone

Concept Café Model – Product : Concept (Personnel)
Personnel aspect of the café was though of based on the concept of connecting
personnel with customers.
 Education – Japanese style, Fringe benefits1
 Relationship – Joint workshop, free sample2
Fringe Benefits
Japanese Style
1: Both polite and friendly attitudes toward customers
2: Bow deeply and give back money with both hands
1: Motivate personnel while getting to know Tokachi more
2: Visit farms and production sites and learn more
Personnel who work for more than 3 years can fly to Tokachi

Concept Café Model – Product : Concept (Personnel)
Personnel aspect of the café was though of based on the concept of connecting
personnel with customers.
 Education – Japanese style, Fringe benefits1
 Relationship – Joint workshop, free sample2
Free Samples Served
Joint Workshop
1: Opportunity for personnel to build good relationships with
customers even beyond cafe
2: Share info and knowledge about Tokachi with customers
1: Opportunity for personnel to interactive with customers
2: Free samples to be made at workshops

Concept Café Model – Product : Concept (Summary)
Level of Attraction
(New Customer)
Feature
LowSocial High
LowTokachi Middle
HighMenu Low
MiddleExperience Middle
Level of Attraction
(Repeater)
Although menu has to attract new customers to come there in the first place,
“social part” of Community Café is certainly the differentiating factor.
In order to attract customers, four aspects (menu,
atmosphere/interior, entertainment and personnel) of the café are
thought of creatively, but the concept of “Ba” was expressed most
in a way that Tokachi Café Fund supports local people and its
community.

Concept Café Model – Product : Customer (Persona)
Three potential customers were interviewed to find unmet needs more precisely.
1 Jessica, University Student (21 years old)
Tea Farm Café
Reasons: working by herself after work
2 Kaili, University Student (21 years old)
1) Starbucks Coffee 2) Bogart’s Café
Reasons: 1) working after work 2) go for a lunch
3 Chie, Aesthetician (39 years old)
1) Nordstron Café 2) Café Julia
Reasons: 1) go for a lunch 2) go for a lunch with
acquaintance

From proximate purposes of going to a café, underlying needs, and in turn
possible solutions were considered.
Concept Café Model – Product : Customer (Customer Behavior Analysis)
Possible
Solutions
Underlying
Needs
Proximate
Purpose
Café
Serving tea
with pots
Movie theatre
Relaxing
background music
Kitchen timer
Pictures
Outside seats
Staying long
Easy to
concentrate
Easy to gather
Having
conversations
Different
atmosphere
Going for lunch Guide books
Working

Concept Café Model – Product : Competitor
List of potential competitors with a focus on The Pacific Place Tea Garden Café.
Cafe Food Facilities Demographics Locations Key Factor Sucess Age Price
Tea Farm
Café
Wide selection of
tea, sandwiches,
soups, desserts
Small size, limited
seating, no kitchen
Students, tea lovers,
tea enthusiasts,
Hawaiians, visitors
S. King St,
Honolulu
Quality, wide tea
selection
18-24 $3-$30
The Pacific
Place Tea
Garden
Café
60 specialty teas
and coffees,
pastries,
sandwiches
Small size, limited
seating, no kitchen
Health conscious
consumers, tea and
coffee lovers
Ala Moana,
Honolulu
Innovative products:
tea and fruit fusions,
tea lattes; award-
winning specialty
drinks
20-40 $3-$10
Fresh Cafe
Fresh
sandwiches,
salads, soups,
and drinks
Small size, limited
seating, large
warehouse space
in back
Artists, students,
musicians,
entrepreneurs
Kaka'ako
Large warehouse in
back, host events for
local community
20-40 $3-$10
Kahumana
Cafe
Local, fresh
organic meals
straight from farm
to table
Medium size, big
windows, located
on a farm
Health conscious
consumers,
students, chefs,
cooks
Waianae
Farm to table concept,
located on a farm,
serve local food
20-40 $15-$20

Concept Café Model – Product : Competitor
Summary of competitor analysis
 No competitor has an unique competitive advantage (CA).
 Competitor’s Key Success Factors (KSF) are the following:
 Unmet Needs: There are very few café’s that focus on Japanese tea
and fusion tea.
In conclusion, there is a market for a café that focuses on
vegetable tea and fusion tea experience.
Quality products, innovativeness, wide selection, along with a
focus on health and sustainability.

Concept Café Model – Promotion
Promotion will be broken down into two focuses: media blitz and buzz
campaign.
Social Campaign
Media blitz will include
coverage via newspaper
articles, T.V. highlights,
magazines, etc.
Coordinated effort to
encourage sharing via
social media through
engagement with active
consumers. E.g.
Facebook, Instagram,
Twitter, Yelp events, soft
opening, etc.
Media Blitz
• Newspaper: Midweek and
Honolulu Star Advertiser
• Local T.V. stations: KGMB,
KHNL, and KFVE
• Magazines: Pacific Business
News, Hawaii Business
Magazine, Honolulu Magazine
etc.

Listed are several promotion ideas for the café, and we’ll focus in on two of
them.
Promotion Ideas
1. Teach agricultural techniques to local Hawaiian farmers.
2. Collaborate with locals living in Hawaii.
3. Give out an annual Tokachi Pioneer Award. Will be given out at Startup
UH or Startup Weekend Honolulu to the team that exemplifies a pioneer
spirit.
4. Have a Tokachi Queen. Partner with the Cherry Blossom Festival and
their beauty pageant.
5. Flash mob with Tokachi inspired music.

These promotion ideas are explained more in-depth.
Ideas Description
Teach agricultural techniques
to Hawaiian farmers.
The farmers from Tokachi can share and teach their
agricultural techniques to Hawaiian farmers. This will
be beneficial to the local Hawaiian community, and in
return, the Hawaiian farmers can share their
knowledge with Tokachi. This will promote awareness
to the agricultural community and will be mutually
beneficial.
Collaborate with locals living
in Hawaii
Through collaboration, the café will gain a wider
audience. For example, the café can partner with
Peter Dods, the president of Easy Music Center, and
host a live music event featuring local Hawaiian music
and Tokachi music. In addition, we can use other
locals in different industries to create awareness and
buzz.

Concept Café Model – Price : Cost (Financial Model)
Café Model
Revenue 33,761$ Revenue/sqft/month 47.48$
Cost of Goods Sold 11,141$
Cost of Labor 13,600$ COGS revenue multiple: 0.33
Gross Profit 9,020$ Tusbo: 20.0
SQFT of property 711 Seats 25
Rent 2,631$ SQFT Rental rate/month $3.70
Common Area MX 1,067$ NNN
Property Taxes 284$ NNN
Building Insurance 200$ NNN
Utilities 2,500$
Marketing 1,688$ Marketing Rev multiple: 0.05
Insurance 650$
Sub Total 9,020$
EBITDA -$
Interest -$
Depreciation -$
Tax 30% -$
Net Income -$
Cash flow -$
Enterprise Value -$
Avg Daily Sales 1,125.35$ Avg Occupied Seats 10 Hours Open 12
Avg Sales/Hr 93.78$ Seat Hours: 120 Sales/Seat 9.38$
Break Even Revenue:
$33,800 / month
$1,125 / day
~$10 / customer
Costs:
33% COGS
40% Cost of Labor
27% Gross Margin
Size:
711 SQFT
20 Tsubo
25 Seats
Staff:
GM: 1
Kitchen: 1
Hourly: 5

Concept Café Model – Price : Competitor Comparison
Perceptual Map of Tea Cafes in Hawaii
Quality
$20
$10
$0
$5
$15
5 Star*1 Star*
* Global Review Site, Yelp’s star (evaluation) is assumed to reflect the quality of cafes
Price
Minimum price per customer
from a cost point of view
Tea Farm Café
Tea Garden
Starbucks
Tokachi
Café

Pictures of other Tea Cafes in Hawaii.
- Tea Farm Cafe

- The Pacific Place Tea Garden Café

- Taste Tea

Concept Café Model – Place : Secondary Info (Land)

Demographics – 2320 South King Street
Population (2012) 1-mile radius 3-mile radius 5-miles radius
Male Population 34,652 107,089 149,830
Female Population 35,829 111,275 154,419
Total Population: Adult 62,205 187,995 255,005
Total Daytime Population 96,881 314,622 417,525
Total Employees 64,438 209,448 265,437

Total Population: Median Age 41 44 43
Total Population: Adult Median Age 46 49 50
% Total Population: 10 – 19 years old 8.93% 8.63% 9.91%

% Asian Alone 51.30% 53.58% 55.98%
% White Alone 23.97% 21% 17.68%
% Two or More Races Alone 15.32% 16.62% 16.27%
% Native Hawaiian and OPI
alone
6.66% 6.71% 8.27%
% Hispanic 5.31% 5.04% 4.86%
% Black or African American 1.48% 1.09% 0.91%

Housing (2000) 1-mile radius 3-mile radius 5-miles radius
Housing Units 38,443 102,843 128,083
Occupied Housing Units 31,358 88,431 112,004
% Owner Occupied Housing 33.17% 41.38% 44.40%
% Renter Occupied Housing 66.83% 58.62% 55.60%
Vacant Housing Units 18.43% 12.98% 1255%

Income (2012) 1-mile radius 3-mile radius 5-miles radius
Household Income: Median $44,352 $54,591 $57,740
Household Income: Average $63,099 $77,008 $82,644
% Household income: Less than
$25,000
26.12% 22.33% 21.38%
% $25,000 - $50,000 24.74% 19.94% 18.92%
$50,000 - $75,000 18.14% 17.59% 17%
$75,000 - $100,000 10.81% 12.25% 12.08%
$100,000 - $150,000 9.16% 13.76% 14.82%
$150,000 or more 6.34% 10% 11.84%

Male Population 17,943 82,510 125,055
Female Population 19,123 85,200 129,785
Total Population: Adult 31,259 144,268 217,599
Total Daytime Population 31,533 203,206 360,155
Total Employees 13,119 122,419 235,581

Total Population: Median Age 46 44 44
Total Population: Adult Median Age 52 50 50

% Asian Alone 58.46% 52% 54.19%
% White Alone 16.36% 23.36% 20.69%
% Two or More Races Alone 19.5% 16.63% 16.64%
% Native Hawaiian and OPI
alone
4.52% 5.98% 6.55%
% Hispanic 4.35% 4.88% 4.81%
% Black or African American 0.47% 1.03% 0.99%

Housing (2000) 1-mile radius 3-mile radius 5-miles radius
Housing Units 13,653 78,927 115,132
Occupied Housing Units 12,990 66,687 99,995
% Owner Occupied Housing 60.54% 46.08% 45.07%
% Renter Occupied Housing 39.46% 53.92% 54.93%
Vacant Housing Units 4.86% 15.51% 13.15%

Income (2012) 1-mile radius 3-mile radius 5-miles radius
Household Income: Median $78,459 $57,351 $58,047
Household Income: Average $98,407 $85,087 $83,872
% Household income: Less than
$25,000
11.64% 20.42% 21.03%
% $25,000 - $50,000 14.34% 19.29% 18.88%
$50,000 - $75,000 17.44% 17.3% 16.87%
$75,000 - $100,000 14.08% 11.85% 12.32%
$100,000 - $150,000 22.83% 14.12% 14.51%
$150,000 or more 15.03% 12.82% 12.31%

Supply Side
(Concept)
Demand Side
Product
Promotion
Price
Place
4P
Food Restaurant
Food restaurant model, “Tokachi Kitchen” was developed and thought of from
both supply and demand sides. And 4P was elaborated in greater details.
Food Restaurant Model – Tokachi Kitchen

a concise way.
authentic culture of a region manifests into a
unique localized experience to showcase
Tokachi to the world while nurturing a sense
of pride in identity to people in the region.
Mission Statement
Food Restaurant Model – Recap of mission statement

Food Restaurant Model – How can we create “Ba”?
Kita no yatai
Junko-san’s kitchen
Homey atmosphere
customer
customer
chef
customer

Food Restaurant Model – Product : Concept (Overview)
TOKACHI KITCHEN
An open-home kitchen concept restaurant
featuring healthy, natural, fusion-Tokachi style
food prepared and served by your own
personal (mother) Tokachi Chef

Homey Healthy Tokachi
TOKACHI KITCHEN
Foods are not like so-
called “Japanese food”
(Sushi, sashimi…)
Chef serves healthy
meals.
Customer can easily
talk with chef.

Kitchen
table
chef
customer
Food is prepared
and served by
customer’s own
personal chef.
Homey atmosphere
Healthy Tokachi meal
Fresh, natural, and
locally produced
traditional Tokachi
fusion (w/ Hawaii)
foods is served.

Food Restaurant Model – Product : Concept (interior)
Large, Open-
home Kitchen
4-6 seats 4-6 seats
Move-able
divider
Tables
can combine
Wall art of
Tokachi
farmer/food/to
wn/culture
Prep
kitchen/ca
binets
Head chef
Cooking
student
Cooking
student
sous chef

Food Restaurant Model – Product : Concept (Personnel)
Head chef / Sous chef1
 Personable, friendly
 Tokachi Food and Culture Knowledge
 Skilled in Cooking
Cooking Student (Apprentice Program)
 From local culinary school (KCC)
 Potential to move to Chef Position
2

Food Restaurant Model – Product : Concept (Menu)
Locally produced
traditional Tokachi fusion
(w/ Hawaii) foods can be
new for customer.
Japanese restaurants in Hawaii
There are no specific lead items.
Menu will be like tapas style(small-plate dishes) based on
Junko-san’s recipes.

Food Restaurant Model – Product : Concept (Key Success Factors)
Key Success Factors (KSFs) = experience of personalized healthy home meal
prerared and served by personable chef.
 Visual Experience (beautiful and real home kitchen)
 Emotional Experience (important, special, warm, safe,
fun, and Ohana/Family feeling)
 Taste Experience (fresh, natural, healthy, local
product, made from scratch)
 Service Experience (excellent service/ personal
attention)
 Knowledge/Social Experience (Tokachi culture, food
source, cooking, socialize with friends, chef, student)
Key Success Factor

2
Food Restaurant Model – Product : Customer image
• Locals
• Works in a professional field
• Median Income in Honolulu (greater
than $58,000)
• Health conscious: nutrients/food
awareness and support local products)
• Likes Asian/Japanese food
• Often goes to the restaurant with his
family
Peter Dods (35 yrs old, male)

Food Restaurant Model – Product : Customer Analysis
Interviewed with Hawaiians
Cultural Differences:
1. Transportation:
Most of people go out to eat dinner by car: Legal issue difference
2. Food & Menu
•Already familiar with Japanese foods such as Kushiage, shabushabu,
izakaya menu and sushi

2
Cultural Differences:
2. Food & Menu
•Menu written in Japanese shows
authenticity
•In the United State, most of food menu is
Categorization of Japanese food is
different
•Secret menu does not exist often in
Hawaii
•Less knowledge about some Japanese
food to stimulate ordering more

2
Popular Food :
1. Butadon 豚丼
2. Robatayaki 炉辺焼き
2. Korean BBQ 焼肉KAGURA
4. BBQ@ 千年の森
4. Dinner 懐石料理＠十勝川温泉
4. Asparagus
4.Junko-san’s cone soup
Desert ：
1.Soft cream ソフトクリーム
2. Ohagi おはぎ
2.Soy bean pudding 豆乳プリン

Food Restaurant Model – Product : Competitor
Potential competitors would be Fresh, Healthy and Natural restaurants.

Food Restaurant Model – Product : Competitor
Potential competitors would be Fresh, Healthy and Natural restaurants.
Competitor Summary
 No Competitor has any unique competitive advantage
 Competitor’s key success: able to just provide consumer need
for vegan and healthy food. However, there are limited
offerings to meet the growing trend of locally produced and
healthy organic offerings.
 Un-Met Needs: There are very few healthy restaurants. Other
needs are met by Whole Foods or Healthy Grocers. Whole
Food is very profitable in Hawaii, and is already planning a
third location opening in Ward-Ala Moana area.
 Thus, there is still room for a successful health-conscious
restaurant

Food Restaurant Model – Promotion
Promotion Plan
1) Similar to Café
2) Need for public promotion of Chef or Visionary
Paid Promotion
 $5,000 budget prior to open
 5% of sales in perpetuity
 Weekly Magazines (Light House, KauKau, MidWeek)
Media Promotion
 3-Month media campaign, begin before hard open
 Features in documentary, local TV, radio, and print
 Arrange access to restaurant/cafe
Social Engagement
 Active social media (Facebook, instagram, yelp!)
 Employ “freemium” advertisement on Vivinavi, Yelp
 Host or attend culture, agriculture events

Food Restaurant Model – Price : Company (Financial Model)
Break Even Revenue:
$53,180 / month
$1,770/ day
~$22 / customer
Costs:
35% COGS
44% Cost of Labor
20% Gross Margin
Size:
1000 SQFT
28.1 Tusbo
40 Seats
Staff:
GM: 1
Kitchen: 2
Hourly: 8
Restaurant Model
Revenue 53,175$ Revenue/sqft/month 53.18$
Cost of Goods Sold 18,611$
Cost of Labor 20,910$ COGS revenue multiple: 0.35
Gross Profit 13,654$ Tsubo: 28.1
SQFT of property 1,000 Seats: 40
Rent 3,500$ SQFT Rental rate/month $3.50
CAM 1,500$ NNN
Property Taxes 400$ NNN
Building Insurance 200$ NNN
Utilities 4,000$
Marketing 2,659$ Marketing Rev multiple: 0.05
Insurance 800$
Sub Total 13,059$
EBITDA 595$
Interest -$
Depreciation 595.24$ Non Cash
Tax 30% 0$
Net Income 0$
Cash flow 595$ Principle PMT, Dep
Enterprise Value 79,365$
Avg Daily Sales 1,772.51$ Avg Occupied Seats 10 Hours Open 8
Avg Sales/Hr 147.71$ Seat Hours: 80 Sales/Seat 22.16$

Food Restaurant Model – Price : Company, Competitor & Customer
Prices driven by cost and market
COST:
 Income model requirement: 35% Cost of Goods Sold (COGS) and 44% labor
 COST + Pricing: divide costs by 79%
 (ex. Cost of Pizza is $6.50: 6.5/.79 = $8.22)
 21% gross margin and compare with market value
MARKET:
 Comparables are Medium to High-end Japanese Restaurants in Honolulu
 Per-person Dinners range from $12 - $50 based on type of food (Udon to Sushi)
Ultimately the customer determines value and makes the decision to buy
based on his/her own perception of:
 Quality (ingredients, taste, hospitality/service)
 Convenience (distance from home/work, speed of service, parking)
 Price

Food Restaurant Model – Price : Competitor Comparison (Healthy Food)
Price range of Healthy Restaurant in Hawaii
Price $10
Chef Chai
Simply JoyLoving Hut
Andy’s Sandwich
Green & Vines
Veggie Star
Peace Cafe
$40
$20
Break Even Revenue :
～＄22
$60
$30
$50
Tokachi
Kitchen

Food Restaurant Model – Price : Competitor Comparison (Healthy Food)
Price range of Japanese Fusion Restaurant in Hawaii
Price $10
$40
$20
Break Even Revenue :
～＄22
$60
$30
$50
Hiroshi
Eurasion Tapas
Alan Wong’s Restaurant
Roy Yamaguchi’s
Izakaya Naru
Tokachi
Kitchen

Food Restaurant Model – Price : Competitor Comparison
Pictures of other Japanese-Hawaiian fusion Restaurant in Hawaii
- Izakaya Naru(Okinawa style)

- Hiroshi Eurasion Tapas(Japanese chef, fusion)

-Roy Yamaguchi’s(chef:Hawaiian, born in Japan)

-Alan Wong’s Restaurant (chef’s father is Japanese)

Open kitchen style restaurant
- Nanzan Girogiro(Kyoto Kaiseki)

Food Restaurant Model – Place : Cost (Financial Model)
Location: Central Honolulu
- High concentration of Japanese restaurants
- Rental Rate: ~$3.50/Sqft $124/坪 per month
KAKA’AKO
WAIKIKI
ALA MOANA
MOILIILI
MAKIKI
DOWNTOWN

Food Restaurant Model – Place (Competitor & Customer)
KAKA’AKO
Median Income: $62,440 (Honolulu: $58,000)
15-year redevelopment plan (Population 12,000  50,000 in 2030)
Access to downtown for lunch services
Urban lifestyle

Ala Moana
High Concentration of Japanese Restaurants
Accessible by Waikiki Tourists

MOILIILI
Near Waikiki and University of Hawaii
Concentration of Japanese Culture

＋
＋
-
There are pros and cons to both Concept Café Model and Food Restaurant
Model.
Food
Restaurant
Concept Café
PROS CONS
-
• Elaborate Tokachi food dishes can
be served (High Quality)
• Experience of healthy home meals
are prepared and served by
personable chef (Hospitability)
• Local cooking students in
community are trained (Concept
of Ba)
Comparison Matrix – Concept Café and Food Restaurant
• Initial capital required (rent &
kitchen equipment) and running
cost are high (High Cost)
• Success is highly dependent on
chef (High Risk)
• There are many high-quality JP
food restaurant
(High Competition)
• Thanks to Tokachi Café Fund, the
relationship with community can be
easily established (Concept of Ba)
• Initial capital required (rent &
kitchen equipment) and running
cost are relatively low (Low Cost)
• Fusion meals and veggie tea can
be competitive advantage (CA)
• Elaborate Tokachi food dishes
cannot be prepared (Less Tokachi)
• Sales per customer is low and
rotation rate is slow (Low Sales)
• Concept resonates only among
people who share Community
Café’s values and lifestyle (Less
Reachable)

• Difficult to understand Goto-san’s univerzalized thoughts for
Tokachi and communicate it to Hawaiian side
Verbalizing Client’s Thought
• Difficult to understand what other members are doing
• Overtask
• Feeling of trust
Language
• Students’ strength= can get primary information
• Interviewed 75 people and did online survey for 62 people
Primary data / secondary data
Take Away – Lessons we learned from Tokachi Project
Common difficulties of conventional MoG projects are intensified further in
Tokachi project.

• Likely to lose our positioning, role
• Listening to professions and private things from a variety of
professionals in HAPA
Big Scale
• Few fixed conditions
• Difficulty of understanding real clients’ desire and vision
• Great change in plan or strategy by small change
Starting from scratch
• Gap of motivation between Hawaii and Japan side
• Gap of how to think
• – Think about what we can do first, not what we want to do
• Information organizing in Communication – Skype, Google drive
Global Project
Take Away – Lessons we learned from Tokachi Project
Tokachi project’s uniqueness made it even more difficult to finalize it.

June 29 presentation_verf

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