Appendix A: North Dakota Requirements for Food and Beverage Establishments

Appendix

{food regulations}

Appendix B: Maps of Red Pepper Locations

1011 University Avenue Location

415 North 42nd Street Location

Appendix C: Map of North Dakota and MinnesotaCounties in Service Area

North Dakota Counties

Minnesota Counties

Appendix D: Financial Documents Provided by Red Pepper

[insert financial 2004 profit/loss]

[insert financial 2005 profit/loss]

[insert financial 2006 profit/loss]

[Insert financial 2004 bs]

[Insert financial 2005 bs]

[Insert financial 2006 bs]

Appendix E: Survey

The Red Pepper is doing research to better serve our customers. The information you provide will be used as aggregate data, as no personal information will be collected about you. We appreciate your input and participation.

How often do you eat at the Red Pepper (please circle one)?

Almost Daily Weekly 2-3 Times a Month MonthlyRarelyFirst-timer

What is your favorite Red Pepper menu item?

GrinderTacoBurritoEnchiladaTostadaOther______

What is your age range (please circle one)?

17 or Under 18-24 25-34 25-45 46-59 60 or older

Where do you hear the most Red Pepper advertising (please circle all that apply)?

RadioTVWord of MouthNever heard advertisingOther______

What is your occupation?

Comments or Suggestions:

Thanks for your participation!

Appendix F: Survey Results

Aggregate Overview of Survey Results

Frequency
Almost Daily / Weekly / 2-3 Times a Month / Monthly / Rarely / First-timer
9 / 38 / 25 / 15 / 9 / 4
Menu Items
Grinder / Taco / Burrito / Enchilada / Tostada / Other
70 / 37 / 4 / 10 / 34 / 7
AgeRange
17 and Under / 18-24 / 25-34 / 35-45 / 46-59 / 60 and Older
8 / 36 / 26 / 12 / 12 / 6
Advertising
Radio / TV / Word of Mouth / None / Other
38 / 6 / 55 / 10 / 4

Detailed Survey Results

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Appendix G: Red Pepper SWOT Analysis

Strengths

Quality product
Strong hold in community
Unique atmosphere
Competitive/reasonable prices

Weaknesses

Customer waiting times
Small market share
Lack of established marketing budget

Opportunities

Promotional activities in this plan
High growth rate in fast food market in Grand Forks
Word-of-mouth advertising (good customer service)

Threats

Many national competitors with more resources and greater market share
Word-of-mouth advertising (should someone have a poor experience)

Appendix H: Tables and Figures

Figure 2-1: Estimated Food Away From Home Purchases

Food Away From Home / 2003 Estimated / 2008 Projected / % Change
Breakfast & Brunch / 9, 749,100 / $12,661,000 / 29.87
Fast Food / $4,377,800 / $5,488,400 / 25.37
Full Service / $5,371,200 / $7,172,600 / 33.54
Lunch / $34,868,200 / $40,698,400 / 16.72
Fast Food / $21,924,400 / $24,875,100 / 13.46
Full Service / $12,943,700 / $15,823,400 / 22.25
Dinner / $50,516,200 / $60,385,800 / 19.54
Fast Food / $21,634,300 / $24,625,000 / 13.82
Full Service / $28,881,900 / $35,760,800 / 23.82

Source: Food Expenditures, based on data from USDA and Claritas Inc. (2004)

Figure 2-2: Annual Expenditures on Gasoline as a Percentage of Total Household Income

Source: National Restaurant Association, based on data from the Bureau of Labor Statistics

Figure 2-3: HyperActive Bob System

Source:

Figure 2-4: Taco Bell Menu Prices

Menu Item / Item Price
Soda / $1.25
Chips / $0.99
Tacos / $1.79
Burritos / $2.69
Gorditas / $1.49
Chalupas / $1.49
Nachos / $2.69
Quesadillas / $2.69
Salad / $3.99
Soup / $2.39

Figure 2-5: Subway Menu Prices

Menu Item / Item Price
Soda / $1.19
Chips / $0.89
6-inch Subs / $2.69 to $3.99
Foot-long Subs / $4.59 to $6.39
Salads / $4.69
Wraps / $3.59 to $4.59
Soup / $1.99

Figure2-6: Qdoba Menu Prices

Menu Item / Item Price
Soda / $1.25
Chips / $1.09
Salad / $4.49
Soup / $2.39
Nachos / $5.49
Quesadillas / $5.99
Chicken Burrito / $5.39
Steak Burrito / $5.79
Chicken Taco / $1.89
Steak Taco / $1.99
Box Lunches / $7.50
Catering / 20 People / $150

Figure2-7: Jimmy John’s Menu Prices

Menu Item / Item Price
Soda / $1.29
Chips / $0.89
8 “ Sub Sandwiches (Ham, Roast Beef, Tuna, Turkey) / $3.99
Giant Club Sandwiches (Ham, Roast Beef, Tuna, Turkey) / $4.99
Box Lunches / $8.00
Catering / 20 People / $78.00

Figure2-8: Red Pepper’s current Menu and Pricing

Menu Item / Description / Price
Grinders / Our grinders are our signature item. They are similar to a submarine sandwich and can be ordered half or whole. The standard ingredients are: our special white sauce, lettuce, hot sauce, and Swiss cheese.
In addition are these options:

Ham
Turkey
Salami

In addition to one or all of the above meats the following items may also be added:

Taco Meat
Colby Cheese
Double (Ham, Turkey, Salami, Swiss Cheese)

/ Half: $2.40
Whole: $4.35
Taco / Red Pepper’s tasty tacos, hard shell or soft with meat, lettuce, hot sauce, and Colby cheese. / $0.99
Beef, Bean, or Combo Tostada / A flat, hard corn tortilla shell with your choice of beef, beans, or combination, with lettuce, hot sauce, and cheese on top. / $1.90
Cheese Tostada / A customer favorite! A flat tostada shell with colby cheese and hot sauce melted on top. Great as a side for any menu item. / $1.15
Burrito / A soft flour tortilla shell with beef, beans, lettuce, and colby cheese. / $0.99
Taco Burger / Red Pepper’s taco on a round bun. / $1.15
Beef, Bean, or Combo Enchilada / Your choice of beef, bean, or combo meat rolled in a flour tortilla, with lettuce on the inside and out and our own special enchilada sauce and Colby cheese melted on the outside. / $2.75
Taco Salad / Lettuce, taco meat, Colby cheese and our famous chip sauce. / $5.75
Hot Ham and Cheese / Warm ham and Colby cheese on a fresh bun. / $1.15
Mexi Burger / A spicy Mexi meat and Colby cheese on a round bun. / $1.15
Coney Island / A hot dog smothered with Mexi meat and Colby cheese. / $2.50
Chili / Red Pepper’s chili is medium on the spicy meter, with beans, beef, tomatoes, and colby cheese on top. / $2.25
Chips and Sauce / Red Pepper’s world famous chip sauce served with a plate of our handmade corn tortilla chips. / $4.25
Tortilla Soup / Warm and spicy chicken tortilla soup. / $2.25
Pop / Coke and Pepsi Products Available / $1.15
Milk / $1.29

Figure: 3-1: Grand Forks Area Population Segmented By Age

AgeRange / Segment by Age / Total Population / Percent of Total Population
20-24 / 13,766 / 148,056 / 9.30%
25-29 / 8,947 / 148,056 / 6.04%
30-34 / 8,621 / 148,056 / 5.82%
35-39 / 10,649 / 148,056 / 7.19%
40-44 / 11,162 / 148,056 / 7.54%
45-49 / 10,435 / 148,056 / 7.05%
50-54 / 8,501 / 148,056 / 5.74%
55-59 / 6,497 / 148,056 / 4.39%
60-64 / 5,510 / 148,056 / 3.72%