Dear Usniatu, what a great project!
quick question. How many people in total do you think benefist from this in addition to direct participants?
cheers
Gaston
Actually My Child's Cafe have unlimited direct participants, means that it is depends on the area coverage of the entrepreneur. Currently one of our vendor can provide access for 2 or 3 neighborhood with the total of 200 to 400 children under five. But it is really depends on the distance from one neighborhood to another.
In the next 2 year from now, our vision is to provide more access to healthy food for children under five all over Jakarta (5 municipalities)and also targeted other urban area in Indonesia. This is also to provide more opportunity for poor entrepreneurs to sell healthy food and gets proper income for their family.
we are now in the preparation of expansion phase and plan to implement our new business model called Cooking Center as one of our viable business model to develop My Child's Cafe business.
Thank you and I am happy to share more information with you
A quick question - since your project is targeting children, does that mean ONLY children are eligible to purchase food from your cafe or they are a focus group with all community members also pitching in?
I would like to understand a bit more the business model: Are HQ, Cooking Center and Vendors different legal entities, or they all operate under the same umbrella? Ifso, you expect each unit to become self sustainable, or the idea is that each contributes so the whole model reaches self sustainability?
When are you estimating to reach break even of the model? Do you know how many vendors and how many sales you need to make to reach it. Which are the main challenges you envision to reach breakeven?
Hi Paula, thank you for your question. This is a very good question!
For us Kedai Balitaku is an innovative business idea with the potential to be highly profitable for vendors, cooking center (owners/investors) and investors-while providing healthy foods to children under five.
Based on our business study (supported by 4 of MBA students from MIT University, USA), we selected Cooking Center Business model out of 3 others business models we developed. This Cooking Center model has 3 levels of business's structure which are: Kebal HQ, Cooking Centers and vendors. This will lead to a franchise business model. Ideally, Cooking Center owner/ investor brings talent and capital to the table and have a stake in the success of the business. Kebal HQ will ensures products and brand consistency, provides quality control and new product development, and recruits new investors.
Each level has unique set of responsibilities. Again, HQ will set up some strategic directions; activates brand, monitors profitability; maintains quality standard; provides training and develops new products. Cooking Centers will set up kitchens, hire cooks and vendors, purchase ingredients and prepare food and so on. While the vendors will be selected from communities who meet the criteria, and after that their responsibilities are to purchase food from cooking center and then sell it to customers. Kebal HQ will be the umbrella for this business model while we expect that each level will be self sustaining.
Based on our financial business projection, kebal HQ will be self sustaining within 2 years.A cooking center expects to recoup initial investment within a reasonable time period (18 months) and a vendor can expect to achieve a desirable net income (>2 million/ month or >200USD/month) within a reasonable time frame of 6 months. This scenario will be achieve with at least 1 cooking center operated per quarter; each cooking center will have at least 8 vendors and the daily sales is 40 portions for meals and 60 portion for snacks/ vendor. The daily unit sales growth is 20%.
Our main challenges;
1. people; finding a CEO with the business expertise (entrepreneurial mindset) to manage transition to for-profit business; aligned with social mission
2. funding; raising enough stars-up financing to keep the business going until it is self-sustaining.
Now we are in the step of running the cooking center business to prove this model.
Hope this is will answer all your question and i am open for further discussion.
Hi,
Most kids would rather have fast food rather than something more wholesome. Especially if kids in lower income groups are not aware of the benefits of healthy food, they would prefer to go for the tastier fast food. Are there any educational programs, about the benefit of healthy food, being conducted for the children to switch to something healthier?
10 years we are working in poor urban communities, we found that knowledge about benefit of healthy food is not the main issue. There are several education program implemented by the government and other health institution focusing around the issue.
Based on our lesson learned implemented nutrition intervention, we found that most mothers are well informed about proper feeding practice as well as the benefits of healthy food, but mothers faced some constraints and fail back to the option of giving unhealthy food to the children.
It is because, there is no affordable healthy food exist in their community, while they have no enough space to cooks, limited income and too expensive to cooks healthy food by them selves (need to buy raw material, transportation and fuel) and most mothers are busiest in the morning. this Kedai Balitaku is to provide the access to healthy, nutritious and affordable food for children in poor urban communities.
Although we know that the knowledge is not the main issue, but we combine our program with the education activities to raise the awareness and strengthen their capacities to choose the healthy food. We did educational activities in PAUD (pre-school), conducted the healthy snacking day and conducted some competition involving parent and children, local leaders, etc. We did story telling using our 4 characters representing 4 food groups (carbohydrate, protein, fruits and vegetables/vitamins and minerals), besides developed other promotional materials and a catchy jingle promoting our healthy food. Those we used as part of effort to faced the challenge on influencing the children to consume healthy food and also used as part of our marketing strategy.
hopefully my explanation will answer your question and I am open for any feedback and further discussion with you.
Hi Usye,
Thank you so much for the explanation. In this world of fast/junk food, encouraging healthier food options for children is very important. Michelle Obama has also been encouraging children in the US to switch over to healthy food.
For homes with working mothers especially, I can understand that fast food becomes a habit out of necessity rather than choice - not just for children, but all working adults as well face the same problem. So all the best for your initiative.
Thanks so much for the very encouraging message. I'm thrilled to hear that Michelle Obama has the same interest like our project. It will be a life time dream that came true if one of these days she came and see our project.
Please I am open for more feedback and input from you.
Now, the main target (or consumers) of kedai balitaku is children under five. It is because the purpose of this project is to address nutrient deficiency among children under five and to achieve well nourished children. Mothers usually purchased from our vendors and then served it for their children.
Even though there are also a lot of interest from adult to buy our food and request to provide healthy food for their own consumption. But in this phase we are focusing to serve children under five to have access to healthy food.
Are you asking about social business in general or my child's cafe model?
Specifically for my child's cafe model, the biggest challenge that we are facing is getting investors who are committed for business development as well as maintenance of the quality of the products (hygiene and nutrition standard of the food). We realize that actually it is easier to gain more profit if they lowered the hygiene and nutrition standard.
The other challenge is to develop variety of menu that meets the nutrition standard while keeping the price low.
I hope this answer your question, let me know if you have further question and I'll be happy to share our experience.
Thank you Mr Gaston, based on my experience there are at least 3 main barriers for social business. First is finding the funding or investors who interested in trying to invest to keep the business going until it is self supporting. It is because of social business will earn less profit and not grow as fast as private business to recoup initial investment. Second is finding the people with entrepreneurship skills and mindset, since especially in our country most people prefer to be as a regular employee rather then become an entrepreneur. Most people not really interested to be an entrepreneurs, because to be an entrepreneurs need creativity, innovation, self confident and competition. And third is keep focus to social mission when business is growing.
Those all my experience and I am open to hear another barriers especially base on your experience.
Comments
Dear Usniatu, what a great project!
quick question. How many people in total do you think benefist from this in addition to direct participants?
cheers
Gaston
Dear Mr Gaston,
Thank you for your question
Actually My Child's Cafe have unlimited direct participants, means that it is depends on the area coverage of the entrepreneur. Currently one of our vendor can provide access for 2 or 3 neighborhood with the total of 200 to 400 children under five. But it is really depends on the distance from one neighborhood to another.
In the next 2 year from now, our vision is to provide more access to healthy food for children under five all over Jakarta (5 municipalities)and also targeted other urban area in Indonesia. This is also to provide more opportunity for poor entrepreneurs to sell healthy food and gets proper income for their family.
we are now in the preparation of expansion phase and plan to implement our new business model called Cooking Center as one of our viable business model to develop My Child's Cafe business.
Thank you and I am happy to share more information with you
Best,
Usye
A quick question - since your project is targeting children, does that mean ONLY children are eligible to purchase food from your cafe or they are a focus group with all community members also pitching in?
Thanks!
Congratulations for this initiative, Usniati!
I would like to understand a bit more the business model: Are HQ, Cooking Center and Vendors different legal entities, or they all operate under the same umbrella? Ifso, you expect each unit to become self sustainable, or the idea is that each contributes so the whole model reaches self sustainability?
When are you estimating to reach break even of the model? Do you know how many vendors and how many sales you need to make to reach it. Which are the main challenges you envision to reach breakeven?
Thanks a lot!
Paula
Hi Paula, thank you for your question. This is a very good question!
For us Kedai Balitaku is an innovative business idea with the potential to be highly profitable for vendors, cooking center (owners/investors) and investors-while providing healthy foods to children under five.
Based on our business study (supported by 4 of MBA students from MIT University, USA), we selected Cooking Center Business model out of 3 others business models we developed. This Cooking Center model has 3 levels of business's structure which are: Kebal HQ, Cooking Centers and vendors. This will lead to a franchise business model. Ideally, Cooking Center owner/ investor brings talent and capital to the table and have a stake in the success of the business. Kebal HQ will ensures products and brand consistency, provides quality control and new product development, and recruits new investors.
Each level has unique set of responsibilities. Again, HQ will set up some strategic directions; activates brand, monitors profitability; maintains quality standard; provides training and develops new products. Cooking Centers will set up kitchens, hire cooks and vendors, purchase ingredients and prepare food and so on. While the vendors will be selected from communities who meet the criteria, and after that their responsibilities are to purchase food from cooking center and then sell it to customers. Kebal HQ will be the umbrella for this business model while we expect that each level will be self sustaining.
Based on our financial business projection, kebal HQ will be self sustaining within 2 years.A cooking center expects to recoup initial investment within a reasonable time period (18 months) and a vendor can expect to achieve a desirable net income (>2 million/ month or >200USD/month) within a reasonable time frame of 6 months. This scenario will be achieve with at least 1 cooking center operated per quarter; each cooking center will have at least 8 vendors and the daily sales is 40 portions for meals and 60 portion for snacks/ vendor. The daily unit sales growth is 20%.
Our main challenges;
1. people; finding a CEO with the business expertise (entrepreneurial mindset) to manage transition to for-profit business; aligned with social mission
2. funding; raising enough stars-up financing to keep the business going until it is self-sustaining.
Now we are in the step of running the cooking center business to prove this model.
Hope this is will answer all your question and i am open for further discussion.
thank you
Usye
Thank you so much for you answer, it was really clarifying for me. And congratulations on this great social business!
Hi,
Most kids would rather have fast food rather than something more wholesome. Especially if kids in lower income groups are not aware of the benefits of healthy food, they would prefer to go for the tastier fast food. Are there any educational programs, about the benefit of healthy food, being conducted for the children to switch to something healthier?
Hi Rachna, Thank you for the question!
10 years we are working in poor urban communities, we found that knowledge about benefit of healthy food is not the main issue. There are several education program implemented by the government and other health institution focusing around the issue.
Based on our lesson learned implemented nutrition intervention, we found that most mothers are well informed about proper feeding practice as well as the benefits of healthy food, but mothers faced some constraints and fail back to the option of giving unhealthy food to the children.
It is because, there is no affordable healthy food exist in their community, while they have no enough space to cooks, limited income and too expensive to cooks healthy food by them selves (need to buy raw material, transportation and fuel) and most mothers are busiest in the morning. this Kedai Balitaku is to provide the access to healthy, nutritious and affordable food for children in poor urban communities.
Although we know that the knowledge is not the main issue, but we combine our program with the education activities to raise the awareness and strengthen their capacities to choose the healthy food. We did educational activities in PAUD (pre-school), conducted the healthy snacking day and conducted some competition involving parent and children, local leaders, etc. We did story telling using our 4 characters representing 4 food groups (carbohydrate, protein, fruits and vegetables/vitamins and minerals), besides developed other promotional materials and a catchy jingle promoting our healthy food. Those we used as part of effort to faced the challenge on influencing the children to consume healthy food and also used as part of our marketing strategy.
hopefully my explanation will answer your question and I am open for any feedback and further discussion with you.
thank you
Usye
Hi Usye,
Thank you so much for the explanation. In this world of fast/junk food, encouraging healthier food options for children is very important. Michelle Obama has also been encouraging children in the US to switch over to healthy food.
For homes with working mothers especially, I can understand that fast food becomes a habit out of necessity rather than choice - not just for children, but all working adults as well face the same problem. So all the best for your initiative.
Hi Rachna,
Thanks so much for the very encouraging message. I'm thrilled to hear that Michelle Obama has the same interest like our project. It will be a life time dream that came true if one of these days she came and see our project.
Please I am open for more feedback and input from you.
Best
Usye
Hi Rachna,
Now, the main target (or consumers) of kedai balitaku is children under five. It is because the purpose of this project is to address nutrient deficiency among children under five and to achieve well nourished children. Mothers usually purchased from our vendors and then served it for their children.
Even though there are also a lot of interest from adult to buy our food and request to provide healthy food for their own consumption. But in this phase we are focusing to serve children under five to have access to healthy food.
Thank you
Usye
That sounds reasonable, since young children would need more nutrition at an early age for proper development. All the best for your project.
Thank you for your support and all the questions. Please I am open if you have any thought on it.
I'd love to share more if you have another question.
Usye
Dear Usniatu, according to your experience what are the main barriers or challenges so that social business models can thrive?
cheers
Gaston
Dear Gaston,
Are you asking about social business in general or my child's cafe model?
Specifically for my child's cafe model, the biggest challenge that we are facing is getting investors who are committed for business development as well as maintenance of the quality of the products (hygiene and nutrition standard of the food). We realize that actually it is easier to gain more profit if they lowered the hygiene and nutrition standard.
The other challenge is to develop variety of menu that meets the nutrition standard while keeping the price low.
I hope this answer your question, let me know if you have further question and I'll be happy to share our experience.
Best,
Usye
Thanks Usiniati, I am talking about in general, what are the main barriers for social businesses to thrive according to your experience?
cheers
gaston
Thank you Mr Gaston, based on my experience there are at least 3 main barriers for social business. First is finding the funding or investors who interested in trying to invest to keep the business going until it is self supporting. It is because of social business will earn less profit and not grow as fast as private business to recoup initial investment. Second is finding the people with entrepreneurship skills and mindset, since especially in our country most people prefer to be as a regular employee rather then become an entrepreneur. Most people not really interested to be an entrepreneurs, because to be an entrepreneurs need creativity, innovation, self confident and competition. And third is keep focus to social mission when business is growing.
Those all my experience and I am open to hear another barriers especially base on your experience.
Thank you very much
Usye
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