Thursday, May 27, 2010

Former Warrior players Kurt Milne and David Farmer launched a catering and food-delivery service

PBN = Pacific Business News


PBN Note: "Former University of Hawaii Warrior football players Kurt Milne and David Farmer have redirected their athletic energy into an equally exhilarating activity. Instead of running to the end zone, they are running food orders from local restaurants to their clients' doorsteps. On Feb. 8, the athletes launched Aloha 2 Go LLC, a catering and food-delivery service targeting busy professionals on the go. For a flat $8 fee, customers can get spaghetti from Auntie Pasto's or fish tacos from Wahoo's delivered straight to their door within the hour."


About how they new that their concept would work after doing a year of market research, even with Room Service in Paradise (opened in 1996) in the market, Farmer said:
"We saw something we knew worked, so rather than saying we don't have the experience, we just went out and gave ourselves an education. We had to actually go out and immerse ourselves in the industry. We had nothing to offer — no website, no menu guide and no money in the bank." (PBN)


Not afraid of the challenge of starting a new business, especially after they both walked on to UH and earned scholarships, Farmer said:
"We've been challenged plenty of times in our life. We received another education as a result of being a student athlete — work ethic, managing time, working out, working hard. Both of us earned scholarships — we weren't given them out the gate. That probably has more to do with our success [than anything]." (PBN)


PBN Note: "They were awarded a $66,000 loan from Hawaii National Bank and guaranteed by the U.S. Small Business Administration after being rejected by two larger banks. In their opening week, Milne and Farmer canvassed hundreds of offices within a half-mile radius of Bishop Street and all of Honolulu's major hospitals, handing out promotional flyers and coupons to professionals who often don't have the time to run out of the office for a one-hour lunch break."


About going after busy professionals who cannot leave their office for lunch, Milne said:
"We're selling convenience. We figured the demand of getting around town is getting harder and harder. What is a person's time worth?" (PBN)


PBN Note: "Marketing the convenience factor — particularly for office workers and medical professionals who would rather not deal with parking, traffic and commute time in downtown Honolulu — has been their primary strategy in convincing people to use the service. Their motto, "Why cook when you can just click?," also appeals to people who have had long days at work, sat in traffic and don't feel like cooking dinner."


About how they are marketing the convenience they provide, Farmer said:
"Lots of times the $8 delivery fee is worth their time if that means they can hang out at home with their family. It's not just a luxury or convenient service — that's what we're trying to brand ourselves." (PBN)


PBN Note: "Focusing their marketing efforts on mid- to higher-income clientele — including doctors, attorneys and other office workers — has proven successful. In just a few months, some have become regular customers with accounts on file, while others use the service to cater whole offices on special occasions."


About the appeal of the service, Maikiki resident Jason Nagamine said:
"If a person is sick or elderly and can't really go out all the time and doesn't want to cook at home, I think that's the main appeal. It's simpler." (PBN)


About how they explain to customers that there could be a delay if a restaurant has a long wait time, giving them the chance to cancel the order, Milne said:
"For the most part we're in constant communication with the customer." (PBN)


About how they have no hidden fees such as gas surcharges or increased menu prices, except a 15% tip tacked onto orders of $100 or more, Milne said:
"We really need to push value in this industry." (PBN)


PBN Note: "The business is advertised solely on Google, with the partners bidding on key words to ensure optimal placement on the website — a strategy that has kept advertising dollars to a minimum. They're averaging approximately 70 deliveries per week. A typical food order is about $43. While the partners run 80 percent of the deliveries themselves, they also contract five to seven drivers — or "mobile waiters" with restaurant experience — who work on commission and tips. The service currently is offered within a 10-ZIP code area from Honolulu International Airport to Hawaii Kai between 9 a.m. and 9:30 p.m. Sunday to Thursday and 9 a.m. to 10 p.m. Friday and Saturday. They operate the call center out of a small warehouse at 1258 Kamaile St., behind Walmart near Ala Moana Center. The business hasn't come without challenges. The former telephone directory ad salesmen fumbled during their first week in business when their website, with 20 restaurants and more than 1,500 menu items, crashed and had to be rebuilt from scratch."


PBN Note: "They plan to pay off their loan within three years and run between 100 and 300 deliveries a day. They also would like to expand into grocery delivery and dinners with movie rentals."


http://pacific.bizjournals.com/pacific/stories/2010/05/24/smallb1.html?b=1274673600^3394271

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