Kern-Alls

t arcades” and “Limited-service eating places”, our mission states that we are ultimately in the business of customization. We believe that a demand exists for children to use their imagination and plan to capitalize on it. There are four revenue streams for Kern-Alls. The key source of revenue is closely tied to our value proposition: the customizable snacks. The main draw of this revenue stream is the popcorn which is tied to the name Kern-Alls and which offers the most customization. Customers will be able to choose between:

1.Types of kernels (such as “mushroom” or “butterfly” flavors)
2.Types of seasonings
3.Types of butter
4.Types of chocolate or caramel
5.Additional additives (blueberries, pretzels, etc.) In addition to the popcorn product, similar (though not as diverse) options will be presented with chips and ice cream. The ice cream is comparable to Menchie’s products; customers are able to choose between different flavors of ice cream and are able to add all sorts of candy and chocolate sweets. Furthermore, the customizable popcorn will be orderable online through the company’s website. Customers will use an app that allows them to fully customize their order and have it shipped to their door anywhere in Canada. Delivering specialty popcorn to customers is not done by competitors such as Kernels Popcorn and Sugar Creek Kettle Corn. When including the boost in sales this avenue is expected to bring, we estimate this revenue stream to account for about 70% of total sales revenue. Kern-Alls secondary revenue stream is it’s activities. Bowling, pool, air-hockey, and arcade games are offered to mold Kern-Alls into an entertainment venue. Revenue is earned by customers paying appropriate fees to participate in such activities. Furthermore, the venue is able to be booked for events such as birthday parties or kids sports team celebrations. This revenue stream is expected to account for 15% of total revenue. The final two revenue streams are brand name drinks and snacks sold at the retail location and advertising revenue generated from the website. The drinks and snacks (chocolate bars, Pepsi/Coke products, candy, etc.) are used to complement the venue’s main products and services, while the advertising revenue is just a small source of income that can be gained from the use of the order website. These streams are expected to account for ten and five percent of total revenue, respectively.