Franchise Discovery Day

Franchise Discovery Day
Discovery Day Agenda
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Concept Overview
Industry Overview
Press, Reviews and Social Media
Franchise Program Overview
Restaurant tour, sample menu, observe
shift and unit level management systems
The Founder
Qaiser 'Kaz' Kazmi: Founder / CEO
Born in England, Kaz witnessed the nation’s taste buds
evolve from Fish & Chips to Chicken Tikka Masala and the
proliferation of Indian restaurants in between the pubs
on seemingly every corner! Kaz worked for multiple food
operators while studying for his degree in London, but
left the food industry upon moving to the United States in
1997. Kaz studied business technology and spent close to
10 years with CIENA Corporation in Maryland, a global
company leading in optical network technology. It was
here that he learned the discipline required for business
operations that he translated into his true passion:
food.
The inspiration for Merzi marries Indian
flavors and the English influence of his
youth. Kaz worked with renowned culinary
chefs to create an eclectic mix of flavorful
entrées.
Fast Facts
Founded: 2010
Headquarters: Penn Quarter in Washington, D.C.
Segment: Fast Casual Indian-Inspired
Dayparts:
• Lunch
• Dinner
• Take Out
• First Location:
• 415 7th Stree
Washington, D.C.
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Concept Overview
 Segment: Fast Casual/Quick Service
 Positioning: Authentic, homestyle
Indian food. Served fast.
 Delivery: Chipotle style assembly line
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Dining Format: Dine in and carryout
The Merzi Difference
 Be the leader in the Indian Fast Casual segment
 Break through the operational barriers of traditional Indian
restaurants
 Take Indian food to mainstream America
 Pioneer healthconscious cooking methods for Indian
restaurants, including menu nutrition facts
 Create an efficient business model that doesn’t require
prior cooking experience
 Simple equipment package; No cooking hoods needed
The Merzi Revolution
Bite by bite, Merzi is changing the way Indian cuisine is served and eaten.
Our Indian-inspired meals are:
• Simple to order
• Healthy, fresh, flavorful and delicious
• Custom built with complementary ingredients
Complex Indian flavors interpreted in a revolutionary and exciting
new way…
The Merzi Concept
Menu
Development:
Limited, concise menu “Chipotle model”
High quality ingredients
Efficient production and delivery
Simple to prepare, proprietary recipes using
limited number of core ingredients
• No chef required
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Merzi Menu
‘Merzi’ Means ‘Choice’
Merzi’s 3-step ordering process allows customers to choose exactly what they
want, and lives up to the definition of the word ‘Merzi’
Base = rice, naan, salad,
etc.
Protein = chicken, beef, lamb or
vegetarian
Top off with a choice of sauce or
chutney, at varying levels of
spiciness
Merzi Menu
In addition to
displaying
calorie counts of all
items on their menu
boards, Merzi offers a
nutritional calculator
on their website that
allows you to see the
full nutrition facts of
your customizable
meals
2014 Industry Trends
Nation’s Restaurant News – 10 Trends Shaping The Restaurant Industry
In 2014
“An improving economy. Real disposable income is forecast
to grow, inflation will remain moderate, and unemployment will
continue to inch down in the year ahead.”
“Segment strengths. NPD forecasts
indicate that traffic will build for fastcasual restaurants”
Nation’s Restaurant News – NPD Forecasts Traffic, Spending
Growth In 2014
“NPD Group’s data showed that fast-casual and quick-service
restaurants, particularly the kind that are strong at breakfast and snack
times, have had more success than other concepts in 2013 and should
have continued success in 2014.”
Nation’s Restaurant News – NPD Forecasts Traffic,
Spending Growth In 2014
Visits to quick-service restaurants rose 1 percent for
the 12 months ended in September, led by an increase
in traffic for the category comprising gourmet-coffee,
doughnut and bagel chains. NPD Group’s quickservice classification also encompasses fast-casual
brands, and those restaurants collectively reported an
8-percent increase in traffic for the 12 months ended in
September.
2014 Industry Trends
“According to some of fast casual's top execs, the No. 1
demand will be healthy, tasty fare.” - FastCasual
Nation’s Restaurant News – 10 Trends Shaping
The Restaurant Industry In 2014
“Healthful menu offerings. Consumers’ interest in healthful meal
options is tied to the health needs of boomers and older individuals,
the growth in ethnic groups accustomed to fresh food preparation,
and greater awareness of the need for and benefits of healthful
eating among younger patrons.”
“I believe today's diners are becoming
more educated about food
ingredients and their relation to
individual health. For that reason, I
think minimally processed items will
continue to grow in popularity.”
“Food franchises dominate the Franchise
500®, making up half of the top 10 and
more than a quarter of all ranked
companies. It's no surprise, since the
category contains some of the oldest and
biggest franchises around. But there are
plenty of newer, smaller franchises making
their mark, too.”
Restaurant Execs Predict What’s Coming In 2014 –
Nation’s Restaurant News
“We expect more growth and competition in the fast-casual segment as consumers continue to
appreciate and migrate toward quality, healthful and affordable alternatives to fast food and
traditional casual dining. With nearly 50 percent of all food expenditures taking place in
restaurants, we expect to see more growth — and more competition — in our fast-casual
segment.” — Eric Ersher, founder and managing partner of Zoup! Fresh Soup Company,
Southfield, Mich.
“I think the business environment in 2014 is going to be the strongest we have seen in years. In
terms of restaurants, real estate is still relatively inexpensive. The poor economy over the last
four to five years has also weeded out a lot of the inexperienced players and made their spaces
and assets, including lease reassignments, easy to snatch and grab. This will in turn allow for
quicker openings, more jobs available for the community and potentially lower, or stable, pricing
for the consumer — all in all, a formula for a stronger economy.”
— Andrew Gruel, co-founder and corporate chef, Slapfish Restaurant Group LLC, Huntington
Beach, Calif.
In Nation’s Restaurant News’ Annual Restaurant Operator
Survey, half of respondents said that they expect their 2014
profit to better than 2013, while 56% said that they expect
their sales to be better this year
2014 Industry Stats
The National Restaurant Association predicts
Restaurant Industry Sales for 2014 in the U.S.
to reach $683.4 Billion
National Restaurant Industry 2014 Facts At
A Glance:
• 990,000 Restaurant locations in the
United States
• $1.8 billion in (typical) daily restaurant
industry sales
• 13.5 million restaurant industry
employees
• 3.6% increase in restaurant industry
sales
QSR Industry Trends
“Americans’ love affair with ethnic food doesn’t seem to be ebbing. The number of
various cultures’ restaurants continues to grow as diners seek new flavors and ingredients
from around the world.” – QSR Magazine
According to data from global market research
firm Mintel, four in every five Americans who ate
out in March 2012 dined at an ethnic restaurant.
American palates have become more
sophisticated and adventurous, so “we
are looking for new flavors”
Growing Demand for
Indian Cuisine
Indian food curries favor with Americans
By Ann Levin
“The American palate is no longer bland,” says
Andrew F. Smith, editor of the Oxford Encyclopedia
of Food and Drink of America, who predicts that
Indian food will take off in the next decade the way
sushi bars did in the 1980s and Thai food did in the
’90s.”
Merzi v. Traditional Indian Food
Traditional Indian Food
Complex and long cooking
process
Merzi
Easy, customizable meals;
Quick assembly line style
Difficult to standardize recipes
and ensure consistency
Merzi has taken the Chipotle model
and streamlined the cooking process
into an easy and scalable serving line
Chef typically required
Merzi requires no chefs (and no
cooking hoods either)
Not Health Conscious
Merzi meals are healthier and made
from higher quality ingredients;
menu boards labeled with calorie
counts
Flavor profiles not mainstream
Flavors are “Americanized” and more
subtle, to appeal to a broader range of
customer
Food is fried or prepared with
ghee (clarified butter)
Not at Merzi!!
Merzi Press
Merzi Press
Merzi Press
Merzi Press
"When you walk into Merzi, you will be
surrounded by delicious aromas try to focus on
the meal you are about to order. . . ."
“Merzi, which means “choice” in Urdu, Hindi and
Punjabi, stays true to its name. Guests can pick and
choose what they want with their ovenbaked naan or
basmati rice, for around $8 a meal. Think Chipotle.”
Merzi Press
Merzi Press
It's being billed as the Indian Chipotle, but
Merzi is so much more than that, starting with
the fact that it's locally owned, and the interior
design is thoughtful and contemporary with
overhead lighting made to look like colorful jars of
spices and natural wooden booths. It feels like
you're about to eat something good when you walk
in instead of wanting to wash your hands.
Merzi Press
Reviews
Calories and food
allergens clearly labeled
Vegetarian friendly
Reviews
Multiple
reviewers
compare Merzi
to Chipotle
Merzi on Social Media
Merzi’s Franchise Program
Merzi franchisees have access to delicious recipes and proven
systems which can handle high volumes in small, flexible formats.
Franchisees can expect superior support in the following
areas:
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Real Estate and Site Selection
Lease Approval
Operations Support and Systems
High Quality MultiUnit Training Support
Business/Cash Flow Planning Support
Marketing and Brand Building Support
PreOpening/Grand Opening Support
Purchasing and Distribution
Vendor Selection and Equipment
What do we look for in a franchisee?
Market partners that want to build and run a professional
multiunit restaurant company. Ideal candidate will have:
• Minimum financial net worth of $500K and liquidity of $250K
• Knowledge of real estate and trade areas in development
territory
• Enthusiasm, drive and passion for our concept
• Desire to organically expand into a multiunit business, and
become an eager, collaborative member of our growing team
FDD Includes:
Company History
Management Experience
Litigation
Trademarks & Patents
Financial Statements
List of Franchisees and Restaurants
Fees and Initial Investment
Franchisor and Franchisee Obligations
Forms of Franchise and Development
Agreements
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Next Steps
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Headquarter meeting and all parties decide to move
forward
Letter of intent (LOI) is signed by franchisee and
franchisor outlining deal terms
Draft executable contracts sent to prospects
Franchisees fully execute agreements and send to
Merzi with franchise fees
Franchisor executes and send copies back to franchisee
Access to resources, assistance with business plans and
funding
Real estate process begins – local brokers, market & site
analysis