Capstone – Project
Financial Modeling for Farina, the Restaurant + Wine-Focused Subscription Concept
A Collaboration Between
Hive Hospitality is building a blended subscription + retail concept called Farina. In addition to having physical stores, Farina will offer a wine-focused subscription. They need your help launching the business, including financial modeling paying careful attention to metrics like Customer Acquisition Cost, (CAC) and Lifetime Value (LTV). They’re also hoping you can help inform budgets for personnel, technology, and marketing. They also need to understand how their flagship locations will differ from the subscription model in terms of revenue and resources required. Should the business have two different P&Ls? What resources can they plan to share vs. what resources need to be individually itemized? Is the concept as synergistic and scalable as they think? What are the pros and cons of opening two stores (one in the Reston Town Center next to the Audi / Volkswagen HQ and one in Arlington next to Amazon) at launch instead of one?
Project Topics
Company Information
| Company | Hive Hospitality |
| HQ | Washington, DC |
| Revenue | Unlisted |
| Employees | 50-100 |
| Stage | High-Growth Startup |
| Hiring Potential | Follow-on Projects, Formal Internship, Entry Level Full-Time, Upper Level Full-Time |
| Website | https://www.brescadc.com/ |
Company Overview
Hive Hospitality is a Washington, D.C. based hospitality group with multiple restaurants and growing. Our team represents a diverse range of backgrounds & expertise – from building profitable businesses ground-up, to delivering award-winning full-service guest experiences – we are passionate professionals pioneering the future of hospitality. We're excited to expand our footprint of award-winning food & beverage concepts and best-in-class experiences.
Experiential Learning Program Details
| School | Washington University of Virginia |
| Engagement Format | - |
| Course | BUS 700 Business Research (Capstone) – Fall 2021 |
| Level |
|
| Students Enrolled | 30 |
| Meeting Day & Time | Tuesdays, 2:20pm - 4:50pm |
| Student Time Commitment | 4-7 Hours Per Week |
| Company Time Commitment | 3-5 Hours |
| Duration | 14 Weeks |
Program Timeline
Key Project Milestones
-
September 14, 2021 - Deep Dive on Concept, the Market and Competitive Analysis
- What’s the difference between brick and mortar retail vs. subscription models?
- How does this materialize with food service companies?
- What companies have been able to accomplish both within one model? (See Cooper’s Hawk as good reference)
- Who are the top players in subscription food service?
- What about subscription wine and spirits?
Suggested Deliverable:
Prepare for Q&A with Farina Leadership
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October 5, 2021 - Understanding Financial Model for Restaurants and other Food Service Concepts
- What components need to be included in the financial model?
- Deep dive into financial documentation from other Hive concept. How will Farina’s financial model be similar or different?
- What assumptions need to be made? What data do you already have to produce thte model? What data do you need that you don’t yet have?
Suggested Deliverable:
Develop a Financial Modeling Plan, Present that to Farina Leadership
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November 2, 2021 - Produce Financial Model for Farina
- How can you separate out brick and mortar revenues and resources from subscription revenues and resources? Why is that important?
- How much revenue is it reasonable for the company to produce over 1-3-5 year period?
- What personnel and technology costs are required to build this type of business?
- What assumptions are you making? How can we ensure assumptions are easy to update and refresh and new data and insights become available?
Suggested Deliverable:
Present preliminary working financial model
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November 30, 2021 - Improve Financial Model by Adding KPI Dashboard
- How does the company calculate customer Lifetime Value (LTV)?
- What about the Customer Acquisition Cost (CAC)?
- Produce a report on how the subscription model compares to the two core Farina locations?
- What about a table on technology costs? What about Human Resource costs?
Suggested Deliverable:
Produce Improved Financial Model with KPIs and Dashboards for Farina Concept
Project Resources
There are no resources currently available