Manny's Farmers Market

Manny's Farmers Market came to life from the hearts and minds of four highly experienced individuals destined to open their own line of grocery stores instead of spending more time helping others build and prosper. Manolo Ake is the mastermind behind the business model of the grocery store. His knowledge and craftiness derives from 30 years working and helping grocery stores such as Whole Foods and other stores in southern California exceed their revenue expectations. The model is not your average grocery store you go to just by the basics. This model includes having a hot kitchen, fresh bakery, natural squeezed juice bar, fresh tortillas daily, and many more fresh items available daily. The strong relationship we have with vendors allows us to competitive pricing along with weekly deals for club members signed to our loyalty club. We also plan to create monthly, quarterly and yearly incentives to retain employees. One aspect of our store that will be of importance is our produce department. Alexis Hernandez Madrid, is of the most experienced working the produce industry for more than 20 years, gives us the competitive edge to source direct from many growers throughout the world and nearby in Mexico and the US. Solomon and Alicia Buckhanan are a husband and wife duo that has grown their grocery wholesale business over the last 7 years. Understanding the logistics and working with supreme companies from around the US and Mexico to strategically position brands will help to create a store with products proven to make sales and a connection to their network of lengthy clients. S&A Investment Group LLC will be the capital investing company behind Manny's Farmers Market. 

Manny's Farmers Market is proposing to first operate a 24,000+ square foot facility in the city of Riverside, CA and eventually a second store in Arizona. Riverside, CA is an ideal location for the first supermarket because of many clear and logical reasons. It is growing more than 0.5%/year over the last 10 years and has an Hispanic population of 53.6% (80%+ in 2-3 sq mile radius) of a population of 336,478 (122,000+ in 3 sq mile radius). Designing and operating a supermarket solely for visible minorities is a unique challenge. As a result, the operations of the supermarket will be geared toward (1) providing excellent service (2) cost efficiency, (3) achieving standardization and personalization, (4) maintaining continuous innovation and (5) creating strategic partnerships with local non-profits to provide food and nutrition education. The store is the anchor of a plaza in Riverside that generates roughly 47,000 + cars daily through the intersection. The store will maintain all equipment from previous grocery store (Stater Bros) which will allow us to generate customers naturally from the area already shopping there. Having the store prepared to move-in eliminates the risk of investing in your own equipment and purchasing of a building without knowing 100% the business will succeed. Compared to other grocery stores we have analyzed, the initial cost is greatly lower. The deadline to sign a lease is fast approaching due to Stater Bros moving at the end of August 2022. With this fast approaching deadline, it is imperative to secure the funds necessary for the store to begin operating middle of September.

 Many shoppers spend one or two hours a week in a grocery store. Grocery costs are also a significant part of most people’s monthly budget. Both factors indicate groceries are an important purchase, therefore requiring a high degree of specialization. On the other hand, grocery purchases are necessary, frequent, and nontechnical. That dictates a placement strategy with low specialization.
Manny's Farmers Market will adopt a low-specialization distribution strategy. An extensive product selection, and an appealing store layout also support a high-specialization approach.
As a result of the low-specialization features of our stores, our potential retail space should ideally be located in an area where there is high foot traffic, proximity to public transportation and highways, and lots of parking spaces. These characteristics make it convenient for shoppers to buy at our stores.

The revenue assumptions are based on the expected shoppers in the area. The information for these anticipated shoppers comes from the data provided by the U.S. Census for the municipality as reported in the 2021 census and with stipulated projections for 2022. Moreover, for comparison to actual store we are providing gross sales of 2021 from previous store.
Riverside has a population of 336,478 and an average household income of $85,486 and 90,663 households. If we take the total number of households and divided it by 6 which is the number of supermarkets within the immediate area of Manny’s Farmers Market, we can expect to have 15,110 households that will shop at the location; furthermore, since each household holds and average of 3.44, Manny’s Farmers Market can expect that those households will be spending minimum $16 per week. When we take that $16 purchase per household and we multiply it by15,110 which is the expected number of households that will be shopping at Manny’s Farmers Market we get $241,760, we then multiply this number by 52 weeks a year that Manny’s Farmers Market expected to be open, can expect to get a revenue of approximate $12,571,520; however, in an effort to reach a high level of certainty on the projections we can confidently affirm with high degree of certitude that Manny’s Farmers Market. 

Direct competitors are within every 1-2 miles such as Cardenas, Northgate Gonzalez, Stater Bros, Food 4 Less, Walmart and a few independent stores. The customers we are targeting are primarily your Hispanic community, but also creating a clean and authentic tasty shopping experience for non Hispanic shoppers as well. As aforementioned the Hispanic population in the 1 mile radius of the store is as high as 80%. Focusing on this sector is key to producing the revenue outcome we desire to keep growing and building a successful business. Our strengths will be our fresh high grade produce at an affordable/competitive rate along with supplying the community with many other fresh healthy food choices to keep up with the daily busy working life. Secondly, we believe that we can generate a strong following providing the community with competitive paying jobs and consistent community involvement. Our weaknesses include but not limited to our name recognition in the area and our store selling space to include more shelf stable product as our competitors . Our opportunities are high and due to the previous store (Stater Bros) offering a limited variety of products and generating 16-17 MM  a year. We have an opportunity to capture a customer base that may have gone a mile or 2 further to access the natural and fresh foods they love. 

The founders are seeking $1,000,000 in investment capital 
USE OF FUNDS:  lease store, purchase initial inventory and equipment (not store fixtures/fridges and freezers), and line of credit for monthly operational cost (paying employees, accounts payable and other expenses). 

Investing in Manny's Farmers Market will not only produce a high rate of return financially, but also a larger impact in the lives of the hardworking people in the local community and the suppliers/vendors we work with daily to bring these great products to the people. We know how important family is and what it means to truly take care of one another. We want to change the course for our family and we believe with our team and strategic financial partner, we can achieve this goal. Any further questions about the project or financials, we can discuss further at your convenience. Who is ready to invest in fresh?