Evidence of Market Need

Overview of the business and products:
Fresh Cafe is in the business of eco-responsible, quick-stop food establishment that provides high quality, healthy whole food to customers in the Central Business district of Los Angeles, and at four other affluent locations in Los Angeles. The customers can enter Fresh Cafe premises and can quickly access food of their choice because of the buffet format. The food will initially be sold by the pound. The products in the buffet will be cold prepared foods like the organic salad or prepared sandwiches. The business is likely to gain from the current trend of eating eco-friendly and organic food. The eco-friendly food also includes hot items like poultry fish, meat, and vegetarian dish. The customer can quickly make his/her choice, eat and leave. The visit at Fresh Cafe is likely to save time for the corporate customer as well as provide a variety to tempt the taste buds of a discerning customer.

Demographics
Type of consumer (income range, occupation)
The Fresh Cafe is targeting customers with an annual income between $50,000 and $100,000. The reason is that persons in the income range can afford Fresh Cafe food and are also environment conscious. In Los Angeles one in six persons are occupied in the creative industry. So employees of the creative industry, earning between $50,000 and $100,000 will be targeted. In addition, corporate employees in the target income range will also be targeted.

Business range (industry, sector,)
Fresh Cafe is in the restaurant industry. The sector is organic food and environmentally friendly food restaurants offering buffet of healthy food. Specifically, the segment targeted will be the healthy food seeking customer that is eco-friendly. Fresh Cafe will be an upper scale ecofriendly restaurant business that is targeted at the healthy food eating customers.

Area served (city, region, nation)
Fresh Cafe will currently have locations in Los Angeles, California, United States. Fresh Cafe will be located in the Downtown Central Business District, Benedict Canyon, Hancock Park, Brentwood, and Century City. There will be at least twenty Fresh Cafe located at the Downtown Central Business District. These locations will target the corporate office workers. The other locations will target the eco-friendly customers who are health conscious in affluent locations.

Density (urban, rural, suburban)
Fresh Cafe will be located in urban areas. Specifically, Fresh Cafe will be located at Los Angeles which has a population density of 7,544.6 people per square mile.

Nature of Location (mall, strip center, business center)
Fresh Cafe will be located in business centers at the Central Business District, and it will be located at strip centers at Benedict Canyon, Hancock Park, Brentwood, and Century City. The reason why Fresh Cafe will be located at business centers in the Central Business District is that Fresh Cafe is seeking to attract the corporate employees. On the other hand strip centers will be the locations at Benedict Canyon, Hancock Park, Brentwood, and Century City so that Fresh Cafe is visible and provide parking space to the clients.

Climate conditions;
Fresh Cafe will enjoy the climate of Los Angeles. It has a Subtropical-Mediterranean climate and receives precipitation only on an average of 35 days. The average precipitation at Los Angeles is 15.14 inches. In the Downtown Central District the annual average temperature is 66 degrees F during the day and 57 degrees F at night.

Purchasing pattern
Fresh Cafe will face purchasing patterns that is different in the Central Business District from that at locations in Benedict Canyon, Hancock Park, Brentwood, and Century City. At the Central Business District, there will be the rush of the corporate office goers who want a quick lunch or just a sandwich and coffee. In addition, there can be delivery orders from the offices. However, in the areas of Benedict Canyon, Hancock Park, Brentwood, and Century City there will be customers who want excellent food served in reasonable time. At both locations the main revenues will come in during lunch and dinner.

Describe your market:
Where is it? Fresh Cafe market is currently located in the Central Business District of Los Angeles and in Benedict Canyon, Hancock Park, Brentwood, and Century City areas of Los Angeles.
How big is it?
According to 2008 figures, the Central Business District of LA has a population close to 40,000. The areas of Benedict Canyon, Hancock Park, Brentwood, and Century City have a total population of 30,000. Most of the residents in these areas are at the peak of their careers. If 10% of the customers are eco-friendly and health conscious person who prefer eating outside, the market size is 7,000 persons.

What is the growth rate?
The growth rate of the market is related to the population growth. The population increase in Los Angeles between 2000 and 2010 was 3.1% and the population increase in the same period in California was 10.0%. These can be taken as indicators of growth rate of the market for Fresh Cafe services.

What are the unique features and dynamics of this market?
The central downtown district has city's skyscrapers and associated large multinational corporations. In addition, public are, art institutions, and sports facilities are located here. The Downtown is also the meeting point of different freeways and the Metro rapid transit system. The area of the central downtown district includes University Park, Exposition Park, the University of Southern California, and the Central City West neighborhoods. The dynamics of these areas is that many old buildings have been removed to make way for large parking lots. There has been a decline in the number of residents in the area. The dynamics of this market is that people come to this area with a specific objective and once that has been achieved, they leave the area. The areas of Benedict Canyon, Hancock Park, Brentwood, and Century City have residents that are mostly white, single-family and owner occupied and have at least two bed rooms. These areas have been selected because these neighborhoods are aware of the environment, safety, and beauty. The residents of these areas are likely to be the customers of Fresh Cafe.

What causes people to buy?
Fresh Cafe attracts hungry people. At the offices in the Central Business District and at other locations hungry people will be attracted to Fresh Cafe for tasty and tempting buffets. In addition, those that are environment conscious, eco-friendly, and are interested in eating organic and healthy food will be attracted to Fresh Cafe.

Evidence of Market Need

A survey of people working in the Central Business District and people residing at Benedict Canyon, Hancock Park, Brentwood, and Century City was carried out. This survey was carried out using e-mails. 700 e-mails were sent to the Central Business District, and 300 e-mails were sent to the Benedict Canyon, Hancock Park, Brentwood, and Century City. There were 435 responses received from the Central Business District and there were 112 responses received from residents in the Benedict Canyon, Hancock Park, Brentwood, and Century City. 85% of the respondents from the Central Business District showed a positive attitude towards an eco-friendly restaurant that served organic food and was easily accessible from their offices. 62% of the respondents from Benedict Canyon, Hancock Park, Brentwood, and Century City showed a positive attitude towards an eco-friendly restaurant that served organic food and was easily accessible from their homes. Those that showed positive attitudes are likely to visit Fresh Cafe restaurants at least once and try out the buffet.

References:
http://quickfacts.census.gov/qfd/states/06/06037.html
www.downtownla.com/
www.ladowntownnews.com/ - United States
http://discoverlosangeles.com/guides/neighborhoods/downtown/downtown-los-angeles-guide.html
http://dlanc.com/
www.lacity.org/
http://lacounty.gov/wps/portal/lac