Professional Documents
Culture Documents
Prepared for:
Patty Cady
English Professor 402
Washington State University
Prepared by:
Serendipity 3
Table of Contents
Page #(s)
Letter of Transmittal ....
Cover Page .
Title Page .
Table of Contents .
Executive Summary .
Introduction
Company Overview .
7-12
Market Analysis .
13-15
Population Analysis
15-16
Conclusion .
16
References
17-18
Original Pitch ..
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Executive Summary
On March 7th, our team received instruction to create a business plan proposal.
The Pullman area lacks a fun and exciting restaurant with great food and dessert
options. Our group chose the opportunity to bring Serendipity 3, a restaurant
originated in New York, to Pullman, Washington. Serendipity 3 offers a unique
variety of desserts--found in no other restaurants--and meals to its customers.
Serendipity 3 currently operates in two locations in the United States: New York
and Las Vegas. Our SWOT analysis shows if Serendipity 3 move to Pullman:
Strength of Serendipity 3 to be it's one-of-a-kind menu;
Weakness to be the high price of menu and unhealthiness;
Opportunity to be its uniqueness in the Pullman area;
Threats to be Old European, Sweet Mutiny, and South Fork competitors in
the Pullman area.
We research the population base of the three cities: Pullman, Lewiston, and
Moscow. Serendipity 3 required a population to be at least 1 million. We found,
using the US Census Bureau:
Pullman city has 31,682 residents,
Moscow has 24,767 residents
Lewiston 32,482 residents.
The total estimated population of the three cities to be 88,931 people.
We also asked people if they wished there were more late night food options:
80% replied yes.
35% said they eat at a restaurant 4-6 times in the past 30 days .
60% said they are more than willing to pay $10-$15 for desserts.
After conducting detailed research and analysis, our team believes that opening
of a Serendipity 3 restaurant in Pullman is not feasible. We do not recommend
Serendipity 3 to come to Pullman. The Pullman market only has about 10% of
the required market size for an opening of a Serendipity restaurant, majority of
the population are students. We think Serendipity 3 might be feasible in the
coming future if the Pullman population continues to grow.
Introduction
To determine whether Serendipity 3 should expand to the Pullman area, we have
to analyze the area in Pullman. Serendipity 3 is a restaurant that specialize in
desserts and meals. It requires an location with to meet its required needs. First,
we will take a look at the company overview; second, the market analysis, and
thirdly, the marketing plan.
Pullman is a small town with very little options for people who wanted varieties,
especially in dinning experience. This is the reason why we think Serendipity 3
would be a huge hit for Pullman. It would be a place for people to socialize and
more importantly, add more varieties and attractions to the city of Pullman.
Another reason is Pullman lacks a place for people to have fun and relax;
Serendipity 3 would be the solution.
Therefore, we will conduct a detailed research of the Pullman area to see if it is a
suitable area for Serendipity 3. Our research will be consist of:
Customer Base/Analysis
We use the US Census Bureau to determine the people living in Pullman
and their monthly income.
Marketing Plan (Secondary Audience)
We look majority portion of the Pullman population, mostly are student.
Location of Operations
We selected Dennys base on size and parking availability
Future Outlooks/Projections
We seek advice from Ben Erickson from Serendipity 3 in Las Vegas.
SWOT Analysis
We looked at Serendipity 3 as a whole, and analyze each section.
Competition analysis
We looked and compare the product of Serendipity 3 and Competitors.
Population Analysis
We use the US Census Bureau to find population information of the
Pullman, Lewiston and Moscow.
We found that the Pullman area only has 10% of what Serendipity 3 required.
Thus, we dont recommend Serendipity 3 to come to the Pullman area. In the
coming future as the population of Pullman increase, Serendipity 3 can then
looking to expand to the Pullman areas.
Company Overview
Mission Statement
Although the Internet was helpful in finding information, we had many questions
and, as a group, we came up with a list of questions to ask the manager of
Serendipity 3. After multiple attempts, Alejandra finally get in contact with
someone in New York but still unable to get a date for a meeting. We decided to
contact the Serendipity 3 in Las Vegas. We were lucky enough to get an
interview with Ben Erickson, the general manager of Serendipity 3 in Las Vegas,
Nevada. We asked many questions from main customer base to low peaks in
season. According to the general manager, Erickson was not aware of the
mission statement for Serendipity 3 as a whole but for the Serendipity 3 located
at Caesars Palace, its mission statement is as follow We inspire grown-up to
play (Serious Play ).
Business Goals
For Serendipitys business goals they want guests to come in and enjoy the
experience they receive. People who have a sweet tooth and want a fun place to
eat is what Serendipity provides. Like any business Serendipity 3 wants to
succeed and make correct choices when determining where to open a new
Serendipity. Serendipity believes that if a great location is selected the brand will
have a great product to sell.
Historical Direction & Results
Serendipity first began in New York as a small coffee house boutique
(Serendipity 3). Stephen Bruce was the founder of Serendipity yet his two
friends Calvin Holt and Patch Carradine helped formed the three modern-day
princes in the story for Serendipity (Hung). When Serendipity first began it
became popular within a few days. People took notice of its funky theme which
included random objects like giant clocks and church medallions as decoration
for this place looking completely different than other coffee places around town,
making it unique and stand out (Hung).It was known for its famous and inventive
Frrrozen Hot Dessertsthe Frrrozen Hot Chocolate, an ice cold chocolate drink
with the restaurants unique touch. The original motivation for Serendipity 3 was:
to satisfy the insatiable crave for sweets. Eventually Serendipity became a
restaurant and expanded its menu to include lunch and dinner. Due to Stephens
dedication to continue his business, his creative ways led to design a uniquely
restaurant that caught the attention of many. Even the name was unique since
serendipity means the art of finding the pleasantly unexpected by chance or
sagacity (Serendipity 3). This showcases the creativity Stephen Bruce had to
think outside the box.
After the success of the opening in New York, Serendipity decided to expand in
various locations. Las Vegas, Nevada was another place Serendipity expanded.
After speaking to the general manager for this specific location we got many of
our questions answered. Serendipity first expanded to Las Vegas in April of 2009.
On April 2016 Las Vegas Serendipity completed its seventh anniversary.
According to the manager, a gentleman who opened multiple different
restaurants wanted to open Serendipity there and although the rights are not his,
he gets a portion of the money. Specifically for Las Vegas location March tends
to be the busiest month since Spring Break would occur during this time and
would continue being busy until mid-November. As a seasonal restaurant,
weekends are more busier along with holidays. Being placed in a large city with
the most expensive real estate in the world, customers going to Serendipity are
not only paying for the food but also for the location. In the business world
charging for more than the item happens all the time. For example if someone
decides to purchase a small house yet the location is amazing they will not only
charge you for the physical house but also the location. Although this location
holds a maximum of three hundred twenty people in the facility, the manager
sees no expansion for this specific location at this time. The last change was
expanding the patio in 2014.
Serendipity has also expanded to Dubai, the first location outside the United
States in 2015 (Johnson). The founder Stephen Bruce quoted This is an exciting
chapter for Serendipity 3, to be launching our first overseas venture in the Middle
East. Serendipity 3 has been an iconic New York City landmark for over 60 years.
We hope that our outlets (in Dubai) will also become landmark destinations
(Johnson). Serendipity tends to select locations that are popular to place
Serendipity and Dubai is definitely world known as a tourist destination along with
New York City.
Although there are some high points in business, there are also low points. After
three years of business in Miami, Florida Serendipity decided to close its doors
due to too much competition (Benn). More than 20 high-profile restaurants
closed due to a slow season and not too many visitors (Benn). Even though
Serendipity selected a great location, at times competitors and a slow season
can affect these results.
Customer Base/Analysis
For Serendipity it tends to vary in regards to their customers based on each
location. After the team member Alejandra visited the Serendipity location in New
York, from her experience she said most of the customers at the time she went
were young people around the age of 21-28. Alejandra stated there were no kids
at the time she went. However, after we spoke to Las Vegas manager he stated
that his customers were not specific. Serendipity has a diverse group of people
coming like a wide range of children, families, and even older couples. Everyone
from a 6-month old to older citizens enjoy Serendipity. In general people who
want to satisfy their sweet tooth and want a fun place to go eat are the people
that go to Serendipity. The Serendipity in Las Vegas also caters to children by
providing a menu and crayons so the kids will be entertained while waiting for
their food or dessert. Serendipity would be perfect if it came to Pullman because
most of the population would be college students around the same age group as
in New York and families would partake as well.
as in New York and families would partake as well.
Marketing Plan (Secondary Audience)
In order to
make the arrival of Serendipity to the Pullman market well known, our team has
developed many strategies that will attract people of all ages. The first plan of
action is to post flyers all around the WSU and Idaho campus to grab the
attention of students. We designed flyers that advertise the arrival of the
Serendipity restaurant and it includes pictures of foods and desserts. We have
also created pages on social media websites such as Twitter, Instagram,
Facebook, and Snapchat. On these pages, our marketing team will post updated
news and pictures that appeal to a wide variety of consumers. Along with these
two strategies, we plan to use coupons in order to attract customers. WSU and U
of I handout coupon books at the campus bookstore at the beginning of each
semester. We plan to have our coupons included in these coupon books in hopes
that students will be encouraged to come to Serendipity. Our last marketing
strategy is to reserve billboard space along the highway between Moscow and
Pullman. The highway is heavily populated and will grab the attention of many
consumers in the area.
Like in any business there tends to be problems that at times cannot be
controlled. After speaking to the general manager for Serendipity he told us
Serendipity as well tends to be affected negatively by low peaks. Like we stated
before Serendipity is a seasonal restaurant. March is the busiest month of the
entire year. When there are low peaks, Serendipity located at Las Vegas has
great techniques under its belt. Serendipity tends to offer free frozen hot
chocolate desserts when guests check in to the hotel. This is a great way to
market because by giving guests something for free they most likely will go enjoy
it and purchase another item while they are there. Another way they market to
guests is by offering groupons, taxi caps, and adds in hotel rooms. By doing this
not only does this market Serendipity to a broader amount of potential customers
but can also spread the word about their business. For example if an individual
sees a taxi caps with Serendipity, their interest may have peaked and become
interested in learning more about it especially tourists. Since Serendipity is
located at the Caesars Palace, there are multiple restaurants surrounding
Serendipity. One way Serendipity tends to do business is by cross promoting with
other restaurants. At first this concept seemed foreign to the group but as a team
we concluded this is a great way to market the business. The example the
general manager gave us was assume Serendipity is cross promoting with
Bobby Flays restaurant. If servers inform guests that if they take their receipt to
Serendipity they will receive a frozen hot chocolate for free, many customers
would be willing to go and obtain their free item as well as enjoy a different
experience of dining.
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team contacted the manager of the Serendipity restaurant located in Las Vegas,
Nevada to get an idea of how many employees we will need. The Serendipity
restaurant in Las Vegas has about 40 employees working during a single shift,
and in total, roughly 110 employees. The Serendipity in Las Vegas is always very
busy due to the large amount of vacationers in the area. Our team believes that
the restaurant in Pullman will be less busy and will require fewer employees to be
working at one time. The projected number of employee we will need is about 20
during one single shift, and 55 in total. This number will meet the demands of
operating a Serendipity restaurant in Pullman and will allow us to save money in
wage expenses.
Location of Operations
After extensive research and not finding results, the group came to the
consensus that most likely the headquarters for Serendipity 3 would be located in
New York. The reason why we selected New York is because it was the first
Serendipity that opened and the owner resided there.
Future Outlooks/Projections
This is a difficult area to estimate because we dont have any historical data. But
in our situation, we seek advice from Ben Erickson of Serendipity 3 from the Las
Vegas branch. Erickson gave an estimate of a non-seasonal daily revenue of
$15,000; in busy season, it can range between $55,000 to $60,000 per day for
Las Vegas. This is when the maximum capacity of the restaurant can handle. On
a busy day, people have to waiting in line to get a spot. The daily expense can
vary due to seasonal fluctuations; Erickson mentioned that the most taxing
expense is the labor force. Currently, Serendipity 3 at Las Vegas employed 110
employees. During holidays, such as March and Mid-November, Serendipity 3
usually carried at it max capacity. Erickson considered the Pullman area for
Serendipity 3, he gave an estimate that at most the daily sales would be around
$25,000 to $35,000 based on the population of the Pullman area we provided.
Pullman is an area where people move in and out. This is not a bad thing
because it brings business, but this can be a problem. As Serendipity 3 liked a
stable population over a flexible one, Pullman is a small town. If Pullman has a
larger population, Serendipity 3 would consider opening a branch in Pullman.
With a population largely consist of students, this means business will be less
stable.
After speaking with the general manager for Serendipity 3 in Las Vegas, in his
opinion Serendipity has potential to grow. After opening Serendipity in Dubai they
are looking to open another one in Dubai along with Abu Dhabi. People in Dubai
and Abu Dhabi will be able to taste the wonders and culture the restaurant in the
coming year. Even with continuous growing popularity, Serendipity will keep its
unique atmosphere--the unique old-European vintage theme. Being exposed in
a new place definitely gave positive results. This is great news since these new
openings will expand their customer base and introduce a restaurant that is out
of the ordinary compared to most. For the United States the general manager
stated he could possibly see something opening in Los Angeles in the future but
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Market Analysis
Strengths:
As a team we evaluated the strengths of Serendipity 3 were numerous. First
Serendipity has a large menu to select from. They have breakfast, lunch, and
dinner along with amazing desserts. According to the general manager the most
popular dessert and food dish they have in Las Vegas is the Frozen hot
chocolate which is huge. This dessert tends to be shared among friends and
family. Also the Hangover Omelet is a popular food choice especially when
people may not be well rested from the night before. Not only is the food amazing
and diverse but Serendipity is a family friendly place. They even provide children
with kids menus and crayons so they can entertain themselves when their food is
getting prepared. People from all age groups want to come and enjoy the great
service and food offered at this location. Next, Serendipity is open until 1 am
which is beneficial for people who are trying to go eat late at night will have an
opportunity to do so. If Serendipity were to be placed in Pullman, college
students would go satisfy their cravings. Serendipity also tends to be a notoriety
restaurant that has been visited by celebrities from Andy Warhol to multiple
United States presidents since the time it was opened (Serendipity 3). This
gives Serendipity an edge from any other restaurant. In its repertoire Serendipity
holds the Guinness World Record for the worlds most expensive dessert named
The Golden Opulence Sundae which is a great accomplishment (Johnson).
These strengths highlight why Serendipity would be a great fit for the Pullman
area.
Weaknesses:
One main weakness of bringing a Serendipity restaurant to Pullman is that not
many people in the area have heard of Serendipity. This will require much more
work from our marketing team to make sure the consumers in the market are
aware of the new arrival and what the restaurant has to offer. Large amounts of
advertisement will result in higher costs. Another weakness that Serendipity
poses is its high priced menu options. This can be a major problem because the
majority of consumers in the area are college students with very little disposable
income. The high priced menu items might drive students away from this
restaurant and lower the amount of sales made. Another weakness that our team
identified was that Serendipity does not offer healthy foods. Many young college
students care about their health and fitness, and do not eat out at places that are
unhealthy. The fact that Serendipity only offers fatty foods and unhealthy
desserts may decrease the amount of possible customers in the area.
Opportunities:
Pullman is an area where residents and students are constantly looking for new
restaurants or dessert places to try, since there are not a lot of options already.
Serendipity is a special restaurant that is made to give its customers a great and
unique experience. Pullman does not yet have a place for people to go where
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they can get a themed experience while enjoying a yummy dessert, or unique
meal. We saw an opportunity in Pullman because of the four universities near to
the area that would come to eat at Serendipity. In the survey we conducted, we
found that 35% of the people eat out 4 to 6 times a month. That is means there
are a good amount of people willing to spend their money to eat out. Serendipity
is also known for being open late, until 1:00 AM. We learned that about 82% of
the people said they wish there were more late night food options, giving us
another reason why it would be beneficial to bring a restaurant that is able to stay
open for those late hours. Moscow and Pullman have a high concentration of
people in a small amount of space because of the amount of students at
Washington State University and University of Idaho. This would bring a lot of
business to the restaurant because people do not have to travel far to get there.
Washington State University and the University of Idaho have events for students
many times a year that bring outsiders to the area. There are Moms and Dads
weekends, graduation and football games that attract people from all over. When
students have their families in town, it is common for them to go out for a nice
meal or dessert where they can celebrate and spend time with their loved ones.
Serendipity brings a great atmosphere for this type of occasion. When we asked
in our survey where people like to go out to eat when their families are in town,
we found that the majority of the respondents named restaurants like SouthFork,
La Casa Lopez, Black Cyprus, and Paradise Creek Brewery, which are all in the
similar price range as Serendipity. Since these visitors have a reason to come to
Pullman, it will start to get a lot of recognition and can help spread the word to
others when they return to their homes from Pullman. Eventually, Serendipity
could become a tourist attraction that will bring people from other cities, since
there is no other restaurant like it near us.
Threats/Competition Analysis:
One of the most important aspects of the SWOT analysis is examining the
Threats. The main threats are Serendipitys would-be competitors. Here in
Pullman, there are some fairly low barriers to entry. Rent is pretty affordable and
there is easy access to lots of cheap labor (college students). Pullman would be
the least expensive location to operate, not having to deal with the horrific rent for
incredibly small spots in New York City and Las Vegas. As a group we identified
at least 10 realistic competitors in the Quad-Cities area, but narrowed it down to
3: The Old European, Sweet Mutiny, and South Fork.
As a group we discussed Old European as a viable competitor. The restaurant
serves mostly breakfast food, gourmet coffee and sweet desserts. The price point
at Old Euro is similar to Serendipity. It's not a part of a chain, and there is great
customer service and presentation. On Moms and Dads weekends (and any
weekend in general) Old Euro is busy from open to close. Old Euro has been
around for a good amount of time and is a staple for good food in the area.
Another main competitor we analyzed was Sweet Mutiny. Sweet Mutiny is
located on Bishop Ave, right down the street from our proposed location, making
it a direct competitor already. They specialize in froyo and cupcakes. Froyo is an
increasingly popular dessert choice for Millennials, and this gives Sweet Mutiny a
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large appeal. Our group talked about the possibility of froyo at Serendipity, but
this was not a realistic option, based upon the large equipment necessary to
make froyo. Where Old Euro is stronger in food, Sweet Mutiny only has treat
items.
The final potential competitor to Serendipity would be South Fork. South Fork is
located in a very high traffic area not far from the proposed Serendipity location,
and is a American grill type restaurant. South Fork can get just as busy as Old
Euro, and reservations are a must on certain days and weekends. Many
fraternities and sororities rent it out to hold special events. More recently, they
began catering events and setting up a food truck on Greek row on weekends.
South Fork has the world famous Cougar Gold mac n cheese, as well.
Competitors arent the only threat Serendipity faces if they were to move to
Pullman. One factor to consider is the threat to Serendipitys brand. As of right
now, Serendipity is in New York and Las Vegas. When you think of brand image
and reputation, a lot of attention can focus on location and exclusiveness. Louis
Viton prides themself on being based in Paris,France and the quality or
fanciness associated with this.
New York and Las Vegas are seen by many as high profile cities full of lavish
entertaining and dining. Pullman is no doubt a great city in its own right, but its a
college town, not a worldwide destination city like New York or Las Vegas.
Population Analysis:
Being a college town, we were pretty interested to take a look at the population
and demographics. We knew that Pullman was comprised mostly of college
students.
After doing some research, we found some interesting facts. It turns out Pullman
(as of 2014) has over 29k students (WSU 2014) living in Pullman! According to
the US Census 2 years ago, there is just under 3000 residents who arent
students! Because of this, the number of people aged 16+ that are a part of the
workforce was 55% (2014 US Census).This means that the amount of
disposable income for treats like Serendipity is little.
When looking at Moscow, we found that the population is less than Pullman, at
around 25k (2014 US Census). Unlike Pullman though, only half of the people
living in Moscow are students (2016 University of Idaho). Many of the nonstudents are retired, some work as professors at the University and others in
various occupations. Moscows total population aged 16+ that are a part of the
workforce (and more disposable income) is 63.7% (2014 US Census). Moscow
would be a opportunity to draw some of these older (and more wealthy) people to
Pullman for the Serendipity experience.
Lewiston and Clarkston are two other cities from which Serendipity could draw
customers from. Much to some of our group members surprise, the 2 cities have
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16
References
Benn, Evan S. "A Bloodbath: Brutal Summer Spells Doom for Miami
Restaurants." Miami Herald. Miami Herald, 2 July 2015. Web. 17 Apr.
2016. <http://www.miamiherald.com/living/fooddrink/article26197933.html>.
Hung, Wendy. "Interview With Stephen Bruce: Frrrozen Hot Chocolate Dreams of
Serendipity 3." Jetset Times. Jetset Times Corporation, 21 Sept. 2012.
Web. 17 Apr. 2016. <http://jetsettimes.com/2012/09/21/interview-withstephen-bruce-frrrozen-hot-chocolate-dreams-of-serendipity-3/>.
Johnson, Stacie Overton. "New York City's Iconic Restaurant Serendipity 3 Is
Coming to Dubai." The National. Abu Dhabi Media, 15 Sept. 2015. Web. 17
Apr. 2016. <http://www.thenational.ae/blogs/bites/new-york-citys-iconicrestaurant-serendipity-3-is-coming-to-dubai>.
About LC. Lewis-Clark State College. Web. 11 Apr. 2016.
<http://www.lcsc.edu/about-lc/>.
"About the University of Idaho." University of Idaho. Web. 11 Apr. 2016.
<http://www.lcsc.edu/about-lc/>.
Quick Facts: Clarkston city, Washington. United States Census Bureau. Web.
11 Apr. 2016.
<http://www.census.gov/quickfacts/table/PST045215/5312630,1646540,5356625
>.
Quick Facts: Las Vegas city, Nevada. United States Census Bureau. Web. 11
Apr. 2016.
<http://www.census.gov/quickfacts/map/PST045214/3240000>.
Quick Facts: Lewiston city, Washington. United States Census Bureau. Web. 11
Apr. 2016.
<http://www.census.gov/quickfacts/table/PST045215/1646540,5356625>.
Quick Facts: New York city, New York. United States Census Bureau. Web. 11
Apr. 2016.
<https://www.census.gov/quickfacts/table/PST045215/3651000>.
Quick Facts. Washington State University. Web. 11 Apr. 2016.
<https://wsu.edu/about/facts/>.
"Serendipity 3." Serendipity 3. Web. 17 Apr. 2016.
<http://www.serendipity3.com/history.htm>.
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INTEROFFICE MEMORANDUM
To: Patty Cady
From: Alejandra Urueta-Garcia
Subject: Pitch Proposal Serendipity 3
Date: March 1, 2016
The purpose of this memo is to present my pitch proposal to bring Serendipity 3
to Pullman. My goal is to explain why my pitch proposal would appeal to the
people who live within the Pullman/Moscow area.
Summary
In general although there are many places to eat and enjoy around the
Pullman/Moscow area, Serendipity 3s menu will offer items that are unique to
the area especially their dessert options.
Discussion
Serendipity 3 opened in the year 1954. Serendipity 3 includes multiple options on
its menu from omelets to soups to even burgers. The menu section that would
capture the Pullman/Moscow residents would be the desserts section.
Serendipity 3s desserts include sundaes with multiple flavors to choose from like
butterscotch, caramel, or raspberry. Their signature dessert in my opinion would
be the frrrozen drinks Serendipity 3 has to offer like the frrrozen hot chocolate,
strawberry supreme, along with many more. The options in regards to food and
desserts are endless at Serendipity 3. Eating at Serendipity 3 can be a breakfast,
lunch, or dinner activity that can be done surrounded by friends or family.
In order to begin this project, I would need marketing individuals, critical thinkers,
researchers, and financial advisors to see if this project would be feasible in the
Pullman/Moscow area. If it were to be successful, the location of this
establishment would be downtown Pullman so college students and locals can
locate it faster without being too confused.
The skills necessary to join part of the team would be people who are hospitable
towards the clients, someone who truly enjoy their job, and wants to form part of
a great team. Team members will gain to plan and manage their time wisely,
receive feedback on their performance, stronger communication skills to develop
overtime, and lastly challenging themselves to collaborate as a team. These
skills could potentially help these small town employees stand out making them
more valuable employees for future jobs.
Recommendation
I would like you to examine the pitch proposal in bringing Serendipity 3 into the
Pullman/Moscow area to see if there is potential with this idea. Feedback on how
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this idea could work in the area or what I can do to improve it would be great. I
look forward to hearing back from you via my grade on Blackboard.
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