The traditional food business model has not evolved in more than a century, with a failure rate of 90% within its first 3 years.
– High upfront capital expenditure,
– Substantive variable costs
– Quick spoilage
– Finite capacity, and
– With the most passive sales generation – open the door and hope people walk in, with food and people standing by waiting to go to waste
makes it extremely vulnerable.
watered-down product offerings
just to offset the irrational failures of a primitive operation model,
while exploiting every paying customer like you and I.
The problem is exacerbated in the GTA:
high costs, harsh winters, lack of tourism and food culture built over time,
despite a strong appetite and the financial wherewithal for better offerings.
Hospitality Landscape of the Greater Toronto Area:.
– 5th most affluent city in all of North America, the spending potential of New York City and Los Angeles
– Michelin Guide and flamboyant $680-per-cover restaurants, reserved only for Top 10 European Restaurants
– New Restaurants purpose built with Michelin Star aspirations (DaNico, Lucie, etc.)
– Arrival of international luxury brands, from food to fashion
Appetite for better luxury hospitality is apparent, for better or for worse due to exacerbated wealth disparity, local affinity for consumption, and increasing immigration.
Yet, with qualities of a first world class city, the GTA still lags behind European cities in food and culture.
The Catch-22: with operating cost of a first class city, but without the same degree of tourism, legislative advantage and hospitality culture.
Beginning with a under-served niche market:
A High-End, Specialty Large Format Cake Shop – focused on Special Occasions
One you would expect from an European 5-Star Hotel,
with a subscription based business model and crowdfunded ownership structure.
The Concept: The Birthday Cake Co. - TBCC
Liken an iconic brand associated to an occasion, TBCC fills a specific consumer category,
like Tiffany for an engagement ring, or Rolex for retirement or graduation,
creating the narrative that it would be blasphemous to not get a TBCC Cake for a loved one’s special occasion.
Appeal for targeting the Birthday niche:
– creates a habit loop
– emotional connection to our brand for a positive, celebratory moments
– predictable and recurring
– scalable to other synonymous occasions: Valentine’s, Mother’s Day, Christmas, etc.
What is the Subscription Based Service?
A Membership option that creates exclusivity with our product offering for our subscribed members, including:
– exclusive access to launches and limited edition product offerings
– access to special collaborations and events
– customization / personalization
– exclusive access to behind the scenes
catering to the current culture of exclusivity, experience-based, fear-of-missing-out mentality, with the benefit of a recurring revenue model, liken to Netflix and Amazon Prime.
And Why Crowdfunded?
You become an owner and capture all lost values in the traditional, passive approach of food businesses.
High upfront capital expenditure, substantive variable costs, quick spoilage, limited capacity, and with the most passive sales generation – open the door and hope people walk in, with food and people standing by waiting to go to waste – makes it extremely vulnerable.
In this new age of dispersion after globalization and digitization, value is created via access, efficiency and personalization.
The quality of life is no longer attained via economy of scale, but rather concentration of interest and niche to achieve deep immersion.
This model benefits from:
– creating a tribe of like-minded, supporters of our cause who are also essential consumers of our mission
– a readily group of Evangelist of our cause and building our community via shared experience
– feedback loop for product revision to better serve our owners and members
This is the edge necessary to succeed in today’s fast moving environment.
Ultimately, the goal is to allocate all resources to achieve the greatest value in our offerings, and as an owner, the value is returned to you in a superior product experience and return on equity
– Formerly Executive Pastry Chef, Forbes 5 Star Shangri-La Hotel Toronto
– Formerly Canadian Olympics Team Pastry Chef, Culinary Team Canada
– Formerly Bocuse D’Or Pastry Team Selection Panel Judge
– Formerly at Pierre Gagnaire, Paris, 3 Michelin Stars, World’s 3rd Best Restaurant
– Formerly at Pierre Herme, Paris, 2016 San Pellegrino World’s Best Pastry Chef
– Former Accountant & Auditor, Ernst & Young
– Former Instructor, Business Information Systems and Operations Optimization, Rotman School of Business
Differentiation and Factors for Success for TBCC:
Operational Efficiency: 3 Lives of Pastry Philosophy.
An operational Ideology coined by Chef Calvin Wat.
Separating Production Life into 3 phases: 1) Mise En Place and Production, 2) Effective Holding, and 3) Finishing
– Traditional operators maintain a 20-30-40 Production Life in Pastry, increases wastage and limit flexibility
– Design products with phases 1) and 2) at 90-95%, and keeping Finishing life at 5%, lowers spoilage, increases production flexibility, just-in-time demand
– Most notable in the styles of Pierre Herme and Cedric Grolet
– Proven record of maintaining 0 spoilage and under industry average food cost (5-20%)
Data and Innovative Edge:
Leverage Customer Data via:
– Capturing consumer preferences: ingredients, allergies, taste preference via Membership Program
– Tracking consumer buying habits and predictions
– Customization preferences from partners and members for targeted product launches
– Member’s birthdays records for push marketing opportunities
Prolific Product Catalogue Changes:
– a track record of constant innovation, menu changes every 6 weeks in the Shangri-La pastry program
– featured in publications (Zoomers, Fete Chinoise) and cable television (Breakfast Television, CP24)
– Currently, no specialty store offering large cakes due to higher cost of wastage avoided by traditional operators
– Presents a missed opportunity for inelastic demand in birthdays and other celebrations
Steering away from Diffuse Model of an everything shop:
– Mainstream operators adopt traditional model of being the everything store
– Resulting in a dilution of product quality and confusion as to brand identity and specialty
– TBCC offers a focused product line and filling a niche market with better quality, added service (customization)
You deserve a world class Pastry Boutique in Toronto.
We invite you on this journey with us to build a new Food Revolution.
- Crowdfunding Goal: $1,000,000 9.5% 9.5%
Sign up below to subscribe, inquire or pledge to our cause.
Capital Raised Current to Date (Aug 11,2023) : $95,000 CAD.
Funding Goal: $1,000,000 CAD.
Price per Share: $25.00 CAD.
Minimum Investment: $2,500 CAD.