Revenue Streams

Revenue Streams

From a combination of data gathered from Eurostat’s report for the economically affluent in Europe and the number of working individuals in different European countries (, we identified that approximately 10 million Europeans have the financial capability to use the service. According to the Diffusion of Innovation theory, 2.5% of the population are innovators and for our target market, this translates to approximately 250,000. As we mentioned in our customers segments this, people might not be willing to bring a chef at their place and allow him/her to roam freely in their kitchen. Our Hypothesis is that on the first month of operations we will manage to attract 1% of all the innovators and by the end of the Year 1, approximately 35% of the innovators will try our service.

Hypotheses Customer Attraction

1. 1% of innovators in January and a small drop of the number of new members in February
2. For the months March and April we expect a small rise at the number of New Members of approximately 10% per month
3. From May and until the end of the year we expect an average 29% increase per month that will bring the total number of customers that have tried our service up to 93800
4. We expect an attrition rate of 8% that means that by the end of the first year 17957 customers will try the service and will not keep using it

Hypotheses Average price per Reservation

• On their First Month all new members will book one reservation of 2-4 persons to try the service
• The average invoicing for these reservations is estimated at approximately 325, 2 person reservations are expected to cost about 250 and a 4 person 500 (average of 125 per person, 70% for 2 persons and 30% for 4 persons)
• We expect Returning Customers to book reservations for bigger numbers of people 2-12 with average cost per person 140 euros. (10% for 2 persons, 15% for 4 persons, 15% for 6 persons, 30% for 8 persons, 20% for 10 persons and 10% for 12%). Average cost per booking 1022
• Existing Members have a 25% chance of using the service within the month.  

Commission

The company’s revenues come from a 15% commission that it takes for each reservation closed. The customer pays the company that operates as a broker. Once the service is completed, 85% of the amount is transferred to the chef’s bank account.

Costs

Variable Costs

Since our platform operates as a connection between customers and professional chefs, the company bares no variable costs for the closing of each additional deal. The chefs when proposing a deal should calculate all the costs and add them in their pricing.  

Marketing (Customer Acquisition)

For the first six months of operations, the company will invest €0.80 per potential customer and thereafter €0.20 until the end of Year 1, to raise awareness for its service, mainly through digital advertising campaigns in Facebook, Twitter and YouTube.

Culinary School Donations

Demand for our services is expected to start rising in a fast pace once we achieve market fit. For fulfilling that demand, Chef at your table will donate five euros for each new customer to Culinary Schools all over Europe in order to attract new Chefs to use the platform.

Corporate Insurance

The Corporate Insurance covers the company from operational risks such as theft, financial losses, operational risk and accidents. The full amount of 1200 is paid every year in January.

Background Check for Chefs

A background check is required for every chef as any misbehavior or inability to deliver what they promise might be critical for the company’s image. We must ensure that chefs that close reservations are responsible professionals that will manage to satisfy and fulfil the demanding customer needs.

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