The food industry is a hugely competitive. In our tenth series Niamh MacSweeney talks to Tim and Vanessa Greenwood founders of cooks academy, about their business’ crux at present. Later in the year we re-visit each entrepreneur for a progress update.

VITAL STATISTICS

Tim & Vanessa Greenwood, Cooks Academy

Business Name: Cooks Academy Year of Set Up: 2004 Founders: Tim & Vanessa Greenwood Location: Dún Laoghaire Business Type: Cookery School

Cooks Academy is Dublin’s Premier Cookery School. Cooks Academy has flourished in a considerably short time-frame and in a specialised market. It is a purpose built school that has a definitive edge both in terms of its marketing strategy and its ability to deliver a superior customer proposition.

Background

The business was started in the Autumn of 2004 with Vanessa Greenwood commencing lessons in a temporary site. After careful research, including a business plan, together with securing grant assistance from Dún Laoghaire Rathdown County Enterprise Board, Vanessa and Tim opened the doors of their purposely fitted out cookery school in Dun Laoghaire in May 2005.

Cooks Academy’s lessons cater, in the most part for the enthusiastic amateur. The school runs popular six and four week courses in Basic Cookery, Entertaining, Wholefood, Italian, Quick Cooking, and Seafood. The ethnic cuisines are very popular too, with Thai, Vietnamese, Moroccan and Indian being favourites. Saturdays are largely devoted to full day, hands on workshops in Pastries and Desserts, Bread Making, Italian Cuisine, Sushi and seasonal lessons such as Soups and Casseroles in the winter or Summer Buffets in the summer. Visits from celebrity chefs throughout the year are always a hit with customers.

Cooks Academy contains two teaching kitchens: a demonstration theatre and a hands on workshop. Such excellent facilities make the school a real hit with the corporate market and Cooks Academy’s clients already number several blue-chip companies. The demonstration theatre can hold up to 30 people and is wonderfully fitted out with a demonstration island, digital video cameras and flatscreen TVs so that participants can see in great detail what the tutor is preparing on the island. The "hands on workshop" is perfect for getting stuck in to practical cookery lessons. The fit out is superb with Siemens appliances and a contemporary SieMatic finish. The workshop can take up to 20 people for all sorts of lessons from bread to pastries to pasta and even Sushi.

It is also a big hit with corporate groups who love the teamwork aspect of cooking together at Cooks Academy. In September 2006, the school launched its Professional Certificate Course, a full time, month long course, training people to cook professionally for their careers or just as a life skill. The Company’s acclaimed website provides all the information customers require about the full range of classes and courses on offer in an interactive and visually appealing way. Customers can also book and pay for classes online. An e-Newsletter is sent out to the database at the beginning of every month.

Current Status

The business has grown considerably from year one and the Directors are on course to double turnover of first year. There are four full time employees including the Directors and the business contracts about 8-10 other Cookery Tutors regularly.

Financing

The business was financed by the Directors and this start-up funding was matched by Bank of Ireland.

Expansion

The business plans to expand even further by taking advantage of unused capacity and running a more diverse range of lessons for example – one week lessons, wine lessons and by running the Professional Certificate Course more often every year as opposed to the current twice a year. More celebrity chef appearances are planned for 2007 and Tim will be setting up an online and in-house cookware retail business.

The Crux Of The Matter

Tight margins, controlling costs and ensuring profitability year on year. Employing more staff so as to allow delegation which will free up Directors’ time to concentrate on strategic and management issues. What is the best way to go about developing the retail business? Maintaining quality and standards during expansion and motivating staff to be as focused on detail as we are.

What Is The Crux Of The Matter For Business Right Now?

Assistance with formulating a long term strategy for core business growth bearing in mind some form of work, life balance for the founders. Deciding whether this growth should be built on moving to multi site or a single larger site and which related business would be best advised to take advantage of. And finally the best way to finance this growth

QUESTIONS FROM COOKS ACADEMY TO THE PANEL

1. Would you advise on a Joint Venture with another organisation in a related industry such as a cookware retailer or gourmet food retailer?
   
   
2. What about franchising for Cooks Academy?
   
   
3. How should we go about turning Cooks Academy into a nationwide business with international aspirations?
   
   

Kevin Sheehan, Partner, Owner Manager Group, Deloitte heads up the panel of experts below who give their advice on how best Cooks Academy can grow their business.

Cooks Academy is at a crucial stage in its development. Having got off the ground, Vanessa and Tim should now plan for steady growth, but elaborate ambitious plans should be avoided, as the business at this stage has not got a huge amount of capital to play with. The Franchising Option There is only so much two people can do in a day. If the business is to successfully grow and then branch into retailing, a well-known name and some positive publicity will be essential. One way to get the name and the brand more recognisable is to set up a franchise for the school. To achieve this, a package should be put together which makes the franchise both attractive to would be cookery teachers and viable to the company. A legal franchise agreement is essential. Start small with one or two franchisees and only add new locations as the first outlets become established and profitable to both parties. The World Is Your Oyster If the franchise option works well, the next phase is to grow organically. Ireland is an affluent country and there is nationwide potential. Remember that running a national franchise is a business in itself and commands significant administration resources, central purchasing, business support etc. Plans to grow outside of Ireland should be avoided at this stage – this is phase two of the business plan and should not be attempted until phase one is operating effectively. Kevin Sheehan, Partner, Owner Manager Group, Deloitte. Head of Panel for Crux of The Matter.

Franchising is an option that is being increasingly used by businesses to expand both domestically and internationally. Generally speaking, it tends to be a less capital and labour intensive method of funding business expansion. It does have some disadvantages such as loss of control, time and cost in attracting potential franchisees, legal agreements, etc. Finance There are a range of finance options open to Cooks Academy to fund the expansion of their business such as internal company sources, shareholders / directors loans, investors, state support and banks. The key challenge is to earn a return on these funds to repay the lender / investor and make a sufficient return for the business. Business expansion can place considerable pressures on a businesses financial health, e.g. if sales increase, as well as the business cost base growing, it can lead to higher levels of cash being tied up in debtors and stock. Often sales levels can exceed the cash coming in which can damage the business cashflow situation. Careful and regular financial monitoring is required. Adrian Moynihan, Business Strategy, AIB

In a competitive business environment, getting the most from your existing resources, while making sure that costs do not escalate is the key factor in business success. The directors of Cooks Academy need also to realise that controlling costs is not the same as cutting costs and although there are times when a period of belt tightening is required, it is more important to monitor, analyse and control costs on a continuous basis, while ensuring quality, reputation and profitability. Principles Of Profitability It is a mistake to think that big is best without making sure that the proposed expansion of turning Cooks Academy into a nationwide business with international aspirations is based on first principles of profitability and quality. The first priority of any business must be survival and the Vanessa and Tim must ensure that any plans or proposed changes will not threaten the survival of the business by over-reaching and expanding beyond their current capabilities. The prospects of franchising and joint ventures must be viewed in the context of the existing business being profitable with a tried and trusted process which can be replicated and repeated. The advice for these entrepreneurs is to consolidate, watch overheads and develop the courses, while preparing a strategic plan for expansion in a realistic manageable and achievable timeframe. Mark Fielding, Chief Executive, ISME

Future success will require in-depth consumer research, targeted marketing and brand development. Brand Development Cooks Academy is not a recognised brand and priority needs to be given to developing the brand and creating greater awareness in order to maximise the demand for its existing courses and set the foundation for franchising the Academy. A combination of methods could be employed including: greater exposure for the Academy on chef demonstrations on TV shows, targeted magazine reader competitions, endorsements from named corporate clients and increased linkages through the website. Expansion To test demand for potential franchise locations, Cooks Academy could take a number of its more successful courses to regional locations in conjunction with partners with suitable facilities (hotels/colleges). However the preference is to initially develop the brand based on the existing facilities prior to franchising. Role Models There are a number of highly successful Irish and international cookery schools that they should review in terms of developing their business model, establishing a brand identity and in particular to analyse successful joint ventures/partnerships. Mary Ryan, Assistant Director, WESTBIC

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