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Community Unltd.: Business Plan

Community Unltd. proposes a two-part organizational structure to address food insecurity and economic disparity in South Asia. The first part is a network of affordable tea cafes ("Communitea Café Co.") that generates income. Part of the revenue goes to the second part: community kitchens ("Communeaty Kitchen Co.") and indoor vertical farms ("Project Biome") operating under a franchising model where profits empower local communities. The plan projects establishing 10 cafes, 1 kitchen, and 1 farm in year 1, with annual turnover of ₹12 crore, and expanding to 300+ cafes and 1000+ franchises positively impacting 10 million people by 2030.

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neeraj kumar
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32 views2 pages

Community Unltd.: Business Plan

Community Unltd. proposes a two-part organizational structure to address food insecurity and economic disparity in South Asia. The first part is a network of affordable tea cafes ("Communitea Café Co.") that generates income. Part of the revenue goes to the second part: community kitchens ("Communeaty Kitchen Co.") and indoor vertical farms ("Project Biome") operating under a franchising model where profits empower local communities. The plan projects establishing 10 cafes, 1 kitchen, and 1 farm in year 1, with annual turnover of ₹12 crore, and expanding to 300+ cafes and 1000+ franchises positively impacting 10 million people by 2030.

Uploaded by

neeraj kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Community Unltd.

A network of community enterprises paid for by your favourite cup of tea

Business Plan

Executive Summary

Accelerated drastically by events over the past few years, new generations of consumers want to buy products
that create deep, transparent impact that reflect their values. Brands that offer these products are rewarded with
loyal customers that spend more, more frequently. In a bold statement of reclaiming humanity in this machine
world, to blur social boundaries, mitigate wealth disparity and elevate the global standards of living, disruptive
new enterprises are revolutionising existing economic models and dismantling corporate supply chains to reset the
plunging socio-economic realities.

Organization

Community Unltd., a potential B Corp, employs an ambitious mutually symbiotic 2-part organisational structure to
tackle food insecurity and socio-economic disparity, initially in India and further the rest of South Asia, where a
third of the global poor live, while steadily reversing the toll of the food industry on this planet, in as humanistic a
way as possible.

The first enterprise, or the face of the organisation, is a network of brick-and-mortar tea cafes, under the brand
Communitea Café Co. (CC), offering the middle and working classes their favourite cup of chai, an integral South
Asian daily necessity, within ambient built spaces in urban hotspots at an affordable price. The CC is the primary
income-generator in the wider definition of the organisation, a part of whose revenue directly goes into the
establishment and operation of the second enterprise.

The second enterprise, the predominantly 'social' enterprise, constitutes community kitchens under the brand
Communeaty Kitchen Co. (CK), and the experimental venture nicknamed Project Biome, both operating under an
innovative franchising model. Each unit of CK aims to deliver healthy and hygienic staple meals at least twice a day
to at least 1000 eligible individuals in its proximity, at highly subsidised rates. The kitchens may also function as
conventional quick-service restaurant (QSR) catering to non-eligible individuals who can avail healthy homely
meals at affordable prices. Project Biome is a franchise of indoor vertical farms growing viable crops under
controlled environments, reducing usage of water and fertilizers by more than 90%, completely eliminating the use
of chemical pesticides and increasing yield per unit area by up to 350 times as compared to conventional
horizontal farming.[1] These farms may be the primary suppliers of fresh produce to the CKs, while also addressing
wider market demands.

Franchising is among the most powerful corporate tools for business expansion. However, the existing franchising
model is designed to funnel massive profits towards corporate giants, while weakening micro-economies and
furthering economic disparity. Both CK and Project Biome aim to follow a disruptive franchising model, henceforth
called the community franchise model, where a major share of profits from individual franchises is invested back
into the local communities where each unit operates. This model aims to dismantle the exploitation enforced by
the conventional franchising model, while holistically empowering disadvantaged communities.

The community franchise model is the core idea and innovation offered by Community Unltd.
The CC is essentially a powerful tool to realise this idea in the geographic context.

1
Plenty, a vertical farming startup based in the US
Markets, Competition and Advantage

With a market size of around 300 million urban tea drinkers in India alone, the potential of this market remains
greatly untapped. The existing market players include traditional tea vendors catering primarily to low- and
middle-income groups, and high-end tea cafes catering primarily to the higher income groups. The local vendor
provides a highly affordable product (₹8-12/cup) but without meeting expectations of hygiene or seating spaces. In
contrast, the tea cafes, a relatively new and growing market player, offer premium products within elegant spaces
at high prices (₹60-100/cup). A median solution catering to major customer expectations of quality, hygiene and
ambient seating at an affordable budget is largely non-existent. This creates a distinctive socio-economic divide
within a community while also forcing a large section of the customers to choose either extremes, often sacrificing
personal expectations. The CC is intended to fill this slot through a cost-driven model.

The CK is primarily a social service venture whose market is defined by the income demographics of a place.
Functioning as a conventional eatery, it competes with local eateries including hotels and restaurants. However,
instead of a wide menu, the CKs offer prefixed-menu meals at highly affordable rates. Again, this cost-driven
model aims at volume for profit. Project Biome competes within a novel market of unconventional farms and
farming practices aiming to sustainably cater accessible, affordable and diverse food produce to tackle food
insecurity posed by a booming population with very limited scope for arable land expansion.

Revenue and Growth projection

By the end of the first operational year, Community Unltd. aims to establish a central office, at least 10 brick-and-
mortar units of CC, a unit of CK and an experimental CEA farm under Project Biome.

Estimated annual turnover for Year 1: ₹12,00,00,000 ($1.5 million)


Break-even point: Year 5 of operation[1]

5-year projection: 300+ CC outlets and proportionate community enterprise franchises[2]


10-year projection: 10000+ CC outlets 1000+ community enterprise franchises, market diversification and
international expansion, positively affecting outcomes for 10 million people by 2030

Financing

Strategic locations for CC outlets to achieve expected sales volumes, brick and mortar establishments for CC units
and CK franchises and capital-intensive farms, all with heavy technological integration, key partners providing
expert solutions and continual innovation research, would imply large one-time capital investments.

Estimated capital investment to start operations: ₹60,00,000


Estimated capital investment for Year 1: ₹7,00,00,000 ($1 million)

Impact

In addition to the evident impact of tackling chronic hunger and creating direct employment, Community Unltd.
works to create deeper, long-term impact by redesigning the existing socio-economic blueprint which dictates
growth behaviours of micro- and macro-economies. The organisation promotes direct supply links and local
producers to impact the grass-roots economies and minimize corporate exploitation. Integration of technology and
innovation would increase efficiency, minimise stagnancy and wastage of resources, and replace inefficient
conventional techniques. The community franchising model intends to empower the underprivileged, increase
social inclusivity and establish a stronger sense of community.

1
Heavy capital reinvestment for expansion in the initial years complicates calculation of break-even.
2
Considering 10 cafes in initial year and at ₹ 450000/month/café and capital investment/café at ₹6000000.

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