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Honors Theses Ogden Honors College

5-2022

Business Plan for Ổ Bánh Mì

Tiana Pham

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Pham, Tiana, "Business Plan for Ổ Bánh Mì" (2022). Honors Theses. 1203.
https://repository.lsu.edu/honors_etd/1203

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 Business Plan for Ổ Bánh Mì

by

Tiana Pham

Undergraduate honors thesis under the direction of

Dr. Daniel Whitman

Department of Management

Submitted to the LSU Roger Hadfield Ogden Honors College in partial fulfillment of
the Upper Division Honors Program.

May 2022

Louisiana State University

& Agricultural and Mechanical College
Baton Rouge, Louisiana
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Table of Contents
Table of Contents ............................................................................................................................ 2
Executive Summary......................................................................................................................... 3
Abstract........................................................................................................................................ 3
Stalemate ..................................................................................................................................... 3
Ổ Bánh Mì’s Proposition ............................................................................................................. 7
Company Description ...................................................................................................................... 9
Company Description .................................................................................................................. 9
Company History....................................................................................................................... 10
Product ....................................................................................................................................... 11
Market Analysis............................................................................................................................. 13
Industry in the Baton Rouge Area ............................................................................................. 13
Detailed Description of Target Customers ................................................................................ 14
Company Advantages ................................................................................................................ 16
Organization and Management...................................................................................................... 20
Regulations and licensing .......................................................................................................... 20
Staffing and Employment .......................................................................................................... 20
Marketing Strategy and Plan ......................................................................................................... 23
Branding and Business Layout .................................................................................................. 23
Networking ................................................................................................................................ 23
Marketing Channels................................................................................................................... 24
Customer involvement/reviews ................................................................................................. 25
Finances ......................................................................................................................................... 26
Methods of Payment and Collection ......................................................................................... 26
Fixed Costs ................................................................................................................................ 26
Variable Costs ........................................................................................................................... 27
Past Sales ................................................................................................................................... 29
Appendix A: Branding Initial Concepts (All Subject to Change) ................................................. 30
Full Logo ................................................................................................................................... 30
Branding Strategy Recap ........................................................................................................... 31
Tagline ....................................................................................................................................... 32
Icon Logo................................................................................................................................... 33
References ..................................................................................................................................... 34
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Executive Summary

Abstract

Baton Rouge has a thriving population and Vietnamese community. However, there is

no restaurant that specializes in the Vietnamese staple: bánh mì (Vietnamese-style baguette). In

typical Vietnamese cuisine, bánh mì is eaten almost every day. With no restaurant or Asian

supermarket serving fresh bánh mì, there is a large opportunity for Ổ Bánh Mì to fill the gap.

Ổ Bánh Mì will be a deli-restaurant that specializes in fresh bánh mì and bánh mì

sandwiches. With increasing food costs and waste, Ổ Bánh Mì will focus its efforts on reducing

waste through emphasis on reuse and other philanthropic measures. Ultimately, Ổ Bánh Mì will

be a unique, casual deli-restaurant that shares the Vietnamese flavors of bánh mì. This business

plan outlines the problems that face the Baton Rouge bánh mì market, Ổ Bánh Mì’s company

advantages, and the strategies that the deli-restaurant will use in order to be successful in the

market.

Stalemate

During a natural disaster, what is typically the first sold-out item at the supermarket?

Bread. This could be the result of panic-buying, herd mentality, or simply because bread does not

require refrigeration or a stove to be edible (Pinsker, 2016). Without a doubt, bread is a staple

food in most cuisines, and it can take many forms. Its importance is the reason why civilizations

made bread so early in human history, even before agriculture was practiced. For example, the

earliest evidence of bread has dated to 14,000 years old Jordanian bread made from cereals, the

predecessor of domestic wheat (Briggs, 2018). Bread has even been used as a social marker for

many societies such as Mexican society where it was used “as a signifier of class and race”

(Alfonso, I. D., 2014). The use of bread as a symbol of culture, wealth, status, and power are
 4

common throughout history and can be seen in the history of the humble Vietnamese ổ bánh mì

(translates to “loaf of bread”). Bánh mì came as a result of Vietnam’s French century. The

inspiration of bánh mì, the French baguette, was introduced with the first French colonists to the

country and was soon added to the common Vietnamese breakfast (Lien, 2016). However,

because of the rocky history between the French colonizers and the Vietnamese, the baguette

(also called banh tây at the time) transformed what is now known as bánh mì (Lien, 2016). The

bánh mì became versatile out of necessity and can now be eaten at any time of day for any

occasion.

As a staple in Vietnamese cuisine, bánh mì should be easy to find, however, that is not

the case in Baton Rouge. There are ten places in Baton Rouge that sell either plain loaves of

bánh mì or fully dressed sandwiches, yet none of them source their bánh mì from Baton Rouge.

The bánh mì comes from Houston, New Orleans, or another outside company. While there seems

to be a great supply, there is constantly a local shortage of both the sandwiches and the loaves.

This shortage is a result of the high density of Vietnamese in Louisiana. In Louisiana, 40% of the

Asian population is Vietnamese, making up 0.7% of the total population in the state (U.S.

Census Bureau, 2019c). According to the U.S. Census Bureau, the majority of the Baton Rouge

Metro area (2019a) and East Baton Rouge’s (2019b) Asian population are Vietnamese making

up approximately 40% of the Asian population and 1.4% of the total population. While the

percentages are low relative to the total population, the Vietnamese population makes up

thousands of people. The shortage is exacerbated because there are only a few bánh mì sources

in Baton Rouge. The only distributors of loaves are Asian supermarkets which have them

available only on the weekends. The loaves are sold on a first-come, first-served basis only to be

sold out by the end of Sunday or thrown away due to staleness on Mondays. The closest fresh
 5

bánh mì bakery is in New Orleans. Most people will not make the hour-long commute for just

bread and the inconvenience can leave thousands of people in just the Baton Rouge area wanting.

This dilemma of outsourcing bánh mì from another city has also highlighted the struggles of

local restaurants and stores that must deal with the deterioration of bánh mì in inventory.

The deterioration of bánh mì consists of how quickly it will go stale or bad. Bánh mì was

created based on the French baguette out of necessity for cheap and accessible bread. Since it

was based on the French baguette which stales within three days, the bánh mì also becomes stale

and hard after a three-to-five-day period. Since this bread is quick to lose quality, it is hard to sell

and will be thrown away if not sold in time. Food waste has a detrimental effect on the

environment and economy. Currently, food waste contributes to “approximately 24% of

municipal solid waste that is sent to wastelands” in the United States (Office of Resource

Conservation and Recovery, 2018). Also, 31 percent of the available food supply at the retail and

consumer level went uneaten in 2010 (Buzby et al., 2014, p. 3). A closer look at food waste

shows that it “can be broken into three segments: Farm or Production Level, Retail Level, and

Consumer Level” (Carson, n.d). The main segments where bánh mì would be wasted are at the

retail and consumer level which nationally contributed to $165.5 billion in 2008 (Carson, n.d).

Retail and consumer level waste deals with the standard issues of retail storage, damage, not

meeting consumer demands, mold, etc. (Carson, n.d). Bánh mì would be wasted at the retail level

whenever there are cosmetic imperfections, transportation damages, and when there is surplus

which will go bad within the week. On the consumer level, it would be wasted when the bánh mì

stales, loses moisture, or grows mold. Whether on the retail or consumer level, minimizing food

waste should be a concern for all consumers because of the negative impact it has on the

environment and the money that is wasted.

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Food waste does not just influence the environment and economy, it can also affect

businesses on an individual level by impacting profit margins. Food waste can harm a business’

profit margins since it affects the business’ food cost, the ratio of a restaurant’s costs of

ingredients and the revenue generated from them (Rankin, 2020). For a restaurant or food service

business, one of the most important costs to be aware of is food costs which along with labor

costs are “known in the industry as prime costs” (Buckley, 2019). Food costs are typically the

bulk of a business’ expenses with the average being in “the 28 percent to 35 percent range

depending upon the style of restaurant and mix of sales” (Buckley, 2019). Businesses with high

levels of food waste will have increased food costs with a lower level of total food sales

increasing the overall percentage of food costs. To minimize food costs while maximizing

profits, restaurants and food service businesses can often underbuy foods that are quick to go

bad. This practice can be seen in the places that sell bánh mì in Baton Rouge. Regardless of the

efforts made by markets in Baton Rouge to minimize waste, there still is a large amount of bánh

mì wasted weekly. The issues of food waste and cost are imperative to address especially since

bánh mì spoils and stales at a much more rapid rate than other foods. Baton Rouge markets and

restaurants’ reduction bánh mì purchases, however, has led to the cycle of bánh mì shortage and

food waste that can be remedied.

The purpose of this thesis is to introduce the restaurant Ổ Bánh Mì which can mitigate the

aforementioned issues of low supply and food wastes associated with outsourcing bánh mì. Ổ

Bánh Mì would provide a local, affordable source of fresh bánh mì to consumers and businesses

in the Baton Rouge area. By providing local and fresh bánh mì, businesses that are outsourcing

bánh mì will be able to buy locally which will help prevent overbuying and underbuying,

lessening food waste and resolving the low supply of bánh mì in Baton Rouge respectively.
 7

Ổ Bánh Mì’s Proposition

Ổ Bánh Mì will serve authentic modern Vietnamese bánh mì loaves and an assortment of

sandwiches to the Baton Rouge area. Ổ Bánh Mì’s versatility will allow consumers to buy

individual loaves and sandwiches as well as allow businesses and other restaurants to buy loaves

in bulk. By baking bread daily, Ổ Bánh Mì will mitigate the lack of bánh mì supply in Baton

Rouge. To further minimize food costs related to delivery fees and food waste, businesses will

typically buy less bánh mì. A correlated issue with the lack of supply is that individual

consumers will bulk buy bánh mì loaves and sandwiches for family, friends, and storage which

in turn exacerbates the shortage by stopping others from getting any. The driving factor behind

the bulk buying is that the closest bánh mì restaurant is in New Orleans. Most consumers will not

make the drive for bánh mì, so they will instead buy it to store at home. The only long-term

storage option is freezing the bread which negatively affects the quality of the bread and the

consumer’s enjoyment. By providing quality bánh mì daily, consumers will no longer need to

buy bread for storage. Ổ Bánh Mì’s locality and daily availability allow these businesses to

purchase bánh mì at a more consistent rate and throughout the week increasing the supply in

Baton Rouge. For individual consumers, Ổ Bánh Mì will serve fresh sandwiches and individual

loaves which will eliminate the need to bulk buy for storage and other people.

Resolving the issues of supply shortage inadvertently helps address bánh mì food waste

as well. Bánh mì’s quick deterioration essentially means that the bánh mì currently in Baton

Rouge is guaranteed to not be fresh because it is delivered and stored for a short period before it

can be presented for sale. With only a short period before bánh mì becomes unable to be sold,

businesses inevitably must throw away any surplus that they have. By baking bánh mì and
 8

making it available daily, which addresses the lack of supply, businesses and individuals will

have easy access to bánh mì and no need to bulk buy ultimately decreasing waste associated with

leftovers. Another way that Ổ Bánh Mì reduces food waste is that the bánh mì served is a more

modern version of bánh mì which is now the common type of bánh mì in southern Vietnam.

While there are other restaurants and markets that sell bánh mì in Baton Rouge, Ổ Bánh

Mì’s modernness and commitment to quality is something that other establishments cannot

provide since their bread is outsourced. The type of bánh mì that is available in Baton Rouge is

baked in an antiquated way which does not allow for longer shelf life. Ổ Bánh Mì will be the

first bánh mì restaurant to have the bread and all fillings made fresh, from scratch, and the first of

its style in Baton Rouge. The freshness, modern authenticity, and quality that Ổ Bánh Mì is

committed to ensuring will greatly impact how bánh mì is enjoyed in Baton Rouge by enhancing

the experience of consumers.

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Company Description

Company Description

Ổ Bánh Mì will be a deli-style restaurant specializing in modern, authentic Saigon-style

bánh mì loaves and sandwiches all made from scratch. Ổ Bánh Mì intends to serve an assortment

of sandwiches that consumers can personalize through topping choices. The restaurant will also

sell plain loaves. The long-term vision of Ổ Bánh Mì is to become the main supplier for bánh mì

loaves in Baton Rouge as well as flourish on its own as a bánh mì sandwich restaurant. Ổ Bánh

Mì is open to expansion dependent on the performance of the restaurant. Hue Pham will be the

sole owner and executive chef. Employees will be hired to work cashier, servers, and assembling

positions. Hue Pham plans to make Ổ Bánh Mì a Limited Liability Company (LLC) when the

restaurant is established.

Currently, Ổ Bánh Mì has primarily been a pop-up restaurant where consumers can place

orders for pick up from Pham’s home where he has a kitchen setup solely for bánh mì. Ổ Bánh

Mì’s audience will be the general Baton Rouge area. Pham will finance and assume complete

ownership of the restaurant. The main startup costs will be the restaurant’s location, related

baking supplies, and ingredients. The startup costs will not include baking appliances as Pham

already has Vietnamese commercial baking appliances for the business. Ổ Bánh Mì will continue

as a pop-up to gauge the market and demand until Hue Pham purchases a location for the

business and begins creating the restaurant which he intends to do within the next 5 years. While

Ổ Bánh Mì is still in its early stages, it already has a positive outlook by providing modern,

authentic Vietnamese bánh mì to the Baton Rouge area in its pop-ups.

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Company History

The concept of Ổ Bánh Mì started at the end of 2015 when Hue Pham turned his long-

time interest of bread baking into making bánh mì. He remembered that growing up in Vietnam

he was able to eat bánh mì occasionally because he was one of five children in a family that

could not afford much luxury. Bánh mì was one the rare luxuries he was able to enjoy because of

how cheap it was. After immigrating to America in the 90s, bánh mì was bought on when the

family was able to drive to New Orleans or Houston where it was the freshest. Pham remembers

waking up early in the morning to make it to New Orleans before the line to the restaurant got

too long. There were even times he remembers waking up even earlier for a trip to Houston

where the family would spend the night in the car to eat good Vietnamese food. Bánh mì was

still a bit of a luxury for the family while Pham was growing up in America. To be able to eat it

fresh, Pham’s family had to go out of their way to be able to get it fresh as well as feed all their

kids, an experience that many Vietnamese families in Baton Rouge have gone through. The

experience of having a fresh bánh mì sandwich was something so incomparable and precious that

Pham wanted to make it accessible to Baton Rouge. In 2016, Pham was able to take a trip to

Vietnam and utilized his time there to take courses in bánh mì making as well as apprenticing at

a bánh mì shop in Ho Chi Minh City (colloquially known as Saigon).

While in Vietnam, Pham was able to learn the history of the Saigon bánh mì and how it is

viewed in modern times. During French colonization, baguettes (banh tây) were introduced and

were generally for the “rich Vietnamese” (Eckhardt 2010). Banh tây became bánh mì (wheat

bread) when Vietnamese adaptations were made to make this bread more accessible to the

public. Eventually, the French rule ended in 1954 when Vietnam split in two and many

northerners moves to the noncommunist South (Eckhardt 2010). Northern bánh mì shop owners
 11

“made Saigon the new sandwich capital” (Eckhardt 2010). Food shortages in the 70s following

the war made the bánh mì something that only the rich could afford once again until the late ‘80s

when “bánh mì resurfaced, mostly as street food” (Eckhardt 2010). Bánh mì was introduced

globally after the Fall of Saigon in 1975 through refugees (Lam 2015). With so much rich culture

and heritage, Pham wanted the bánh mì’s story to be told in Baton Rouge where there are a lot of

parallels in cuisine history. For example, Louisiana’s colonization by the French and how the

cuisine here has changed to be affordable for the working class.

Back home, Pham noticed that the nearest bánh mì restaurant was too far for the Baton

Rouge community to have easy access and that the bánh mì that is available in Baton Rouge is

no longer what bánh mì is in Vietnam. The bánh mì that is now enjoyed in Vietnam incorporates

different baking methods for it to proof better which leads to a fluffier, lighter bread with

different textures and a longer shelf-life. For the past five years, on top of his profession as a

corporal at the Baton Rouge Police Department, Pham has been perfecting the technique to make

the modern bánh mì with hopes that Ổ Bánh Mì can enhance consumers’ experiences in Baton

Rouge with easier access to fresher, better bánh mì.

Product

Ổ Bánh Mì will be a deli-style restaurant with the fillings displayed for customers to

personalize their sandwich. Customers will also be able to select a standard sandwich from the

menu, similar to how Subway’s restaurants conduct business. The vegetable options are cilantro,

cucumber, julienned pickled daikon and carrots, and fresh jalapenos. The condiments are pate

and mayonnaise with optional soy sauce and sriracha. To create a sandwich, customers will

begin by picking one or mixing multiple proteins from the proteins list, selecting vegetables, and
 12

adding in the condiments. There will be five standard menu sandwiches with each sandwich

consisting of one of the proteins, all vegetables, mayonnaise, and pate. On top of sandwiches, Ổ

Bánh Mì will also sell plain loaves.

Protein list:
1. Đặc Biệt (“Special”): all of the cold cuts
2. Chả Lụa (“Vietnamese Ham/Sausage”): just the ham
3. Thịt Nướng (“grilled pork”): marinated grilled pork
4. Xíu Mại (“Vietnamese meatballs”): Pork meatballs in a Vietnamese tomato sauce
5. Nem Nướng (“grilled pork sausage”): Vietnamese savory, sweet grilled pork sausage
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Market Analysis

Industry in the Baton Rouge Area

As briefly mentioned before, Baton Rouge does not have an extensive bánh mì market.

There are ten locations that sell bánh mì or bánh mì sandwiches, and none source the bread from

Baton Rouge. The bánh mì industry in Baton Rouge is small which allows for an easier

opportunity to enter the market. One key point of the places that sell bánh mì is that bánh mì is

not the main menu item which leads to lower quality sandwiches and bread. Listed below are the

places in Baton Rouge that sell bánh mì, breakdown of what they sell, and where it is sourced:

I. Asian Supermarkets

a. Hong Kong - Loaves - Houston (Thursday) and New Orleans (Friday)

b. Vinh Phat- Loaves- New Orleans

c. Hung Thing- Loaves and sandwiches- Houston (Saturday and Sunday)

d. Asian Supermarket – Loaves - New Orleans (Weekends)

II. Restaurants

a. Bao's Vietnamese Kitchen – sandwich - Bread from New Orleans with fillings

made in house

b. Ava Street Café- Sandwiches – Bread is from a French company while fillings

are made in house

c. Pandan Tea House – Sandwiches - Bread from New Orleans with fillings

made in house

d. Café Dang- Sandwiches – All from New Orleans via Vinh Phat

e. Little Saigon – Sandwiches - All from New Orleans

f. Simply Pho & Tea- All from New Orleans

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Detailed Description of Target Customers

Ổ Bánh Mì’s target audiences are residents in the Baton Rouge metro area with an

emphasis on East Baton Rouge parish and stores that sell loaves of bánh mì. The metro area

includes Ascension, East Baton Rouge, West Baton Rouge, Livingston, East Feliciana, West

Feliciana, Ascension, and Point Coupee parishes. While Ổ Bánh Mì will be a Vietnamese food

establishment, everyone is welcomed. Vietnamese food can be enjoyed by all, and bánh mì

specifically would be an easy meal on the go.

Within the Baton Rouge metro area, there are 845,318 people and 443,763 people in East

Baton Rouge parish (U.S. Census Bureau, 2019a & 2019b). Bánh mì can be enjoyed by anyone

as young as 5. Making the serviceable population 798,182 people in the Baton Rouge metro area

and 414,516 people in East Baton Rouge. Such a large population base is a great opportunity for

Ổ Bánh Mì. Since bánh mì is a popular Vietnamese item, Ổ Bánh Mì will also market to the

Vietnamese population. The Vietnamese population is tight knit in Baton Rouge and has the

potential to make up a majority of Ổ Bánh Mì’s sales since it would be the first local bánh mì

restaurant. In the Baton Rouge metro area, there are 7,032 Vietnamese people making up most of

the Asian population in the area (U.S. Census Bureau, 2019a). While the target audience includes

all ethnicities, Baton Rouge’s Vietnamese population is a key audience that Ổ Bánh Mì should

consider because there is such a large population in Baton Rouge and, since bánh mì is a

Vietnamese dish, would be easier to attract business from.

During the preliminary property search for Pham’s Texas barbeque restaurant, Offset

Smoker, along Mid City and Towne Center, Pham decided to use this opportunity to find a

location for both businesses to be located near or next to each other. Pham intends to open Offset

Smoker after retiring from the police force and before opening up Ổ Bánh Mì, which will all take
 15

place within the next 5-10 years. As the location will be in an up-scaled area, the target audience

will be a younger demographic and those who shop in the area. The two listed areas are known

for higher prices and trendy foods. Also, they are becoming more frequently visited, renovated,

and well-known among the Baton Rouge population. As such, rent is higher in this area and Ổ

Bánh Mì will alter prices accordingly to cover costs. The Vietnamese population typically shops

on Florida Blvd which is close to both areas of interest. Other local Asian businesses in the two

areas have had a positive outcome in attracting the local Vietnamese population. Having Ổ Bánh

Mì in an up-scaled area will narrow the audience that will come to the deli-restaurant, ultimately

creating a customer base that is the targeted, niche audience (younger demographic that prefers

“Instagrammable/trendy” foods, other shoppers, Vietnamese audience that supports Asian owned

businesses, and philanthropy-supporting customers).

Along with this large population base, Ổ Bánh Mì’s audience includes stores and

restaurants that sell bánh mì loaves. Ổ Bánh Mì wishes to be a sandwich store while also

supplying loaves to the places that sell loaves and sandwiches at their own establishments. Ổ

Bánh Mì will primarily sell sandwiches and supply loaves only to the stores and other restaurants

that make their own fillings or sell solely loaves. This would mean that restaurants would still be

able to sell bánh mì to customers that prefer their fillings. Ổ Bánh Mì aims to supply bánh mì

loaves to the three Asian markets listed in the industry analysis. While this seems

counterintuitive, many shoppers will buy bánh mì at these stores because it is convenient while

grocery shopping. Pham has already had early discussion with one of the Asian supermarkets

listed above to discuss bánh mì supplying. The discussion ended with promising opportunities

once Ổ Bánh Mì becomes established. With this strategy, Ổ Bánh Mì would be able to sell bread
 16

at multiple locations. Ổ Bánh Mì is fortunate to have a large target audience because of the

restaurant’s versatility.

Company Advantages

Ổ Bánh Mì has many company advantages that would make it an ideal business in Baton

Rouge. Currently, the issues with bánh mì in Baton Rouge are a lack of supply and associated

food waste from outsourcing. With those issues in mind, Ổ Bánh Mì has made its advantages its

location, care for quality ingredients, and thorough research in bánh mì making which leads to a

longer shelf life. These traits can cut costs for businesses who sell loaves and sandwiches, bring

convenience for consumers who want bánh mì, and minimize bánh mì food waste on the retail

and residential level.

Location plays an essential role in what Ổ Bánh Mì can provide since bánh mì in Baton

Rouge primarily comes from Houston and New Orleans during weekend shipments. Being

located in Baton Rouge is a great opportunity for restaurants and markets to purchase loaves of

bread for their sales since it can cut shipping and delivery costs incurred from outsourcing. Ổ

Bánh Mì will be able to sell loaves of bánh mì at a reasonable rate for businesses and restaurants

that need bread without the hassle of long-distance costs. Doing so would encourage local

businesses to buy bread locally since it would offset some costs and food wastes that it incurs

such as delivery fees or time to pick up bánh mì. Oftentimes, restaurants and markets that

outsource their bánh mì will run out within the first half of the week and if there are any

remaining at the end half of the week, then it has gone stale. From the consumer’s viewpoint,

these outsourced weekend shipments lead to bulk buying for friends, family, and storage. Bulk

buying along with businesses buying a small supply of bánh mì expedites the shortage in Baton
 17

Rouge since it limits others from getting any. A bánh mì provider in Baton Rouge will have a

tremendous impact on consumers since the closest place providing bánh mì daily is in New

Orleans which is not a feasible trip for the typical American that works every day. Making bánh

mì daily allows restaurants, businesses, and individual consumers to no longer under buy or over

buy in order to meet demand while minimizing costs and waste. Ổ Bánh Mì being located in

Baton Rouge would be able to resolve the issue by making fresh bánh mì available daily. Ổ Bánh

Mì’s location would be able to provide consumers the enjoyment of biting into a delicious,

freshly baked bánh mì and ultimately benefit the Baton Rouge area.

Quality is also where Ổ Bánh Mì shines. Many consumers in Baton Rouge currently bulk buy

from Baton Rouge, Houston, and New Orleans suppliers for storage as a response to the lack of

supply in the area. Ổ Bánh Mì will be the first fresh bánh mì restaurant in Baton Rouge. Rather

than going to a restaurant for a sandwich with days old bread, consumers can come to this local

business for guaranteed freshness. Vietnamese restaurants and markets in Baton Rouge can also

be benefitted because the freshness of the loaves would attract more consumers to buying bánh

mì at their establishment. The freshness and quality of Ổ Bánh Mì’s products will also be able to

enhance the enjoyment of bánh mì all around. Purchasing bánh mì from Ổ Bánh Mì is

purchasing guaranteed freshness because it will be baked fresh every day and the locality allows

for same day sales. The final immediate advantage of Ổ Bánh Mì’s quality product is that it is a

quickly assembled meal. Restaurants in Baton Rouge that serve Bánh mì sandwiches do not

specialize in it which leads to slower preparation times since this menu item is not ordered as

often as main menu items meaning the restaurants will not have the items on hand nor the proper

appliances for quick reheating. Ổ Bánh Mì’s specialization will be able to assemble sandwiches

made with quality ingredients and serve as a quick, hearty meal for consumers who are in a rush.
 18

Ổ Bánh Mì is a great alternative to fast food because a consumer can quickly get food without

sacrificing quality food. Ổ Bánh Mì’s commitment to quality is something that cannot be found

in other places that sell bánh mì in Baton Rouge and will positively affect a consumer’s bánh mì

experience.

Not only will Ổ Bánh Mì be able to mitigate a supply shortage, it will also be able to

minimize food waste associated with bánh mì. By conducting thorough research intỔ Bánh Mì

making, the bánh mì that Ổ Bánh Mì provides has a longer shelf life than the typical bread.

Typical bánh mì has a shorter shelf life because of the expedited molding or staling of the bread

that comes from the baguette’s influence. In proper storage, an airtight container or bag, Ổ Bánh

Mì’s bread will have a longer shelf life than a regular bánh mì (2-3 days) because of the baking

and cooking methods used. This will mean less food waste will occur on both a retail and

consumer level.

On both levels, bánh mì will be thrown away because of how quickly it stales and loses its

freshness. Ổ Bánh Mì’s bread does not stale at the rate a typical bánh mì would stale at because

of its modern style and how it is baked. During his trip to Vietnam, Pham discovered that the

bánh mì he had grown up eating had evolved. Now more commonly seen in Vietnam is a

modern-style bánh mì called “bánh mì Saigon.” This modern-style bánh mì uses different

processes that create a softer, fluffier bread with more crumb moisture. Crumb moisture is

essential because “bread staling is mainly associated with the firming of the crumb” which is

“quite often… solely attributed to the drying out of the crumb” (Cauvin 2015). Bánh mì was

created based off the baguette which had a quick rate of crumb drying. With the recent

advancements in technology and scientific understanding of bread, more techniques were

implemented while baking bánh mì to slow the drying of the crumb. However, these techniques
 19

did not carry to the suppliers in New Orleans and Houston as the main suppliers opened shop

during the peak of Vietnamese immigration after the Vietnam war in the 90s. These bakeries

kept the same technique of the past because business did well, but the newer techniques of

making bánh mì are better for shelf-life as well as for making the bánh mì softer and less dense.

Ổ Bánh Mì’s bread is carefully crafted with the modern technique of high-humidity proofing and

iced rising that is now commonly used in Vietnam. These methods along with the premium

quality ingredients leads to higher moisture retention in the bánh mì which will in turn prolong

the “freshness” of the loaf. Freshness of bread cannot be taken for granted. It would be like

comparing a day-old donut to one that just came out the fryer warm and soft. With the nature of

bánh mì being outsourced in Baton Rouge, freshness is not a luxury that everyone can afford. Ổ

Bánh Mì’s craft of bánh mì, quality ingredients, and location will ensure the freshness of bánh mì

in Baton Rouge and help consumers have a pleasant bánh mì experience.

 20

Organization and Management

Regulations and licensing

To open a food establishment in Louisiana, the owner must complete and submit the

Plans Review Questionnaire along with a detailed, scale-drawn floor plan. Once approved, the

owner may schedule a preliminary inspection and must undergo a final inspection at least 5 days

before opening once construction is complete and all equipment is in place and functioning.

Once the final inspection is completed and requirements are met, a State Health Department

Permit to Operate will be issued. A designated employee/owner must obtain a food safety

certificate within 60 days of permitting. Pham plans to complete the process explained above

once he has found a property for the business which will be within the next 5 years.

Staffing and Employment

Ổ Bánh Mì will be a deli-style establishment which means that all the toppings and

fillings will be prepared daily by the chef and sandwiches would be assembled to order

throughout the day. Ổ Bánh Mì’s staff would consist of 15 to 20 part-time employees with the

following positions:

• Executive Chef/Owner: Hue Pham

o Responsibilities: opening the restaurant, prepping fillings, and baking

bread

• Assemblers

o Responsibilities: Prepping stations (opening duty), turning on

appliances, taking orders, assembling sandwiches, assisting as

necessary, and cleaning up the assembling station (closing duty)

 21

• Cashiers

o Responsibilities: setting up chairs and tables (opening duty), starting

POS System, assisting as necessary, checking out customers, and

sweeping and mopping (closing duty)

• Bussers/ Kitchen Assistant

o Responsibilities: Putting up dishes and prepping tableware (opening

duty), assisting as necessary, bussing tables, dishes (through the shift

as well as closing duty)

Pham plans to have a soft opening for two weeks prior to fully opening. During that time,

Pham will be able to gauge if more employees will be needed. Depending on the audience

reaction from social media and pre-orders, the employment strategy is to have a majority of the

staff working during the first opening month.

The application process for the listed positions will begin a month before the soft opening

and will continue to occur as needed. There are no target knowledge, skills, abilities, or other

characteristics (KSAOs) necessary for these positions. Experience in the food industry is

preferred. The applicants will begin by submitting an online application blank. Then, applicants

that meet minimum requirements, age, and ability to work within the U.S., and have preferable

experience will be called back for an interview with Pham. Pham will make final selections

based on the candidate’s ability to answer a mix of structured, scenario-based, and fixed

questions and the candidate’s availability. Ổ Bánh Mì’s company culture will endorse open

communication between employees and management. An ideal candidate will be one that

contribute to a positive and harmonious work environment. Each employee will be trained for

every position and rotated daily/ weekly. Memorization of the menu is not required but is
 22

encouraged. Employees would be paid biweekly with a starting wage of $8-9/hr which is a

competitive wage among local businesses. Tips will be split evenly between employees (Pham

has the option of asking the staff once staffing has been established). Ổ Bánh Mì will not staff

managers as Pham will be working every day. Managers/shift leads may be appointed dependent

on Ổ Bánh Mì’s performance.

Ổ Bánh Mì’s hours will be 10:30 am – 8:00 pm. There will be two shifts, opening (10:00

am - 3:30 pm) and closing (3:00 pm – 8:30 pm). During the opening shift, Pham or another

designated employee will arrive one hour before opening to set up the stations for the day while

the rest of the opening shift comes in 30 minutes prior to opening. On weekdays, there will be a

total of 5 workers (Pham, 2 assemblers, 1 cashier, and 1 busser). On weekends, there will be 6

workers (Pham, 3 assemblers, 1 cashier, and 1 busser). For the closing shift, employees will stay

for 30-45 minutes post-closing time to clean. Employees coming in to relieve another employee

during the day will be expected to come in 30 minutes prior to the earlier shift’s end time.

Employees’ shifts will be assigned weekly based on availability. Pham will conduct semi-annual

meetings with the entire staff to cultivate open communication and implement productive

employee suggestions. Staffing and employment decisions will be modified to fit Ổ Bánh Mì’s

strategies once the restaurant is established and will continue to be modified based on the

restaurant’s performance.
 23

Marketing Strategy and Plan

Branding and Business Layout

Jessie Why Designs will be doing the branding for Ổ Bánh Mì. Designer Jessie Why has

a large portfolio with high success in her branding and business strategies. See Appendix A for

the initial concepts of the brand strategy. The package that was purchased with Jessie includes

the brand strategy, logo set, color palette, taglines/keywords, and a typographic palette. Once we

have completed branding, we will use this color palette and typography to design the layout of

the business. The variations of the logos and taglines which are not included in the appendix will

be multi-purposed and used for other marketing media. Why will provide more information

about logo usages for branding in her brand guide. A large focus for the brand is the

philanthropical motive behind the restaurant. Pham wants to focus on the restaurant’s reusability

and waste reduction. He plans to do so by tailoring a low-waste menu where many of the

products can be reused (e.g., stale bread can be reused to make the pate spread and meatballs)

and limit overproduction. Along with the reduction of waste, Pham intends to pay homage to

where bánh mì originated by working with local bánh mì vendors in poorer areas of Vietnam.

For every sandwich sold, Pham will provide a sandwich to someone in need in Vietnam on a

monthly basis.

As for the business layout, Pham also works in rental properties. Within that field, he will

hire his regular interior designer, contractors, real estate agent, and architecture to find and

design a property for the deli. As Pham does not plan to open a physical deli within the next 2

years, the plans for these costs are not included as they may change drastically during this period.

Networking
 24

As the Vietnamese community in Baton Rouge is tightly knit, Hue Pham has a large

network which has made his past pop-ups a success. As the first Vietnamese police officer in

Baton Rouge, Pham has become a leader in the Vietnamese community. Any time anyone in the

local Vietnamese community runs into a legal issue, Pham is typically the person called. He has

consistently acted as a counselor, translator, and mediator for many in the community. He also

has a large presence at St. Anthony of Padua Le Van Phung Parish Church in Baton Rouge

which serves over 3,000 individuals. Along with that, Pham is currently getting invitations for

pop-ups at events (such as local concerts) for his Offset BBQ food truck which he will use to

build a network and introduce to the bánh mì business as well.

Marketing Channels

Ổ Bánh Mì’s main marketing channels will be Facebook ads and Instagram posts. The

two pages will be run by Hue Pham. He expects to post every Tuesday and Thursday. As well as

extra posts for seasonal specials and holidays. These two accounts will be the primary contact

with customers concerning business updates. The color palette and topographical palette

provided by Jessie will be used to create posts for accounts. Business cards will be created with

Jessie Why whenever Pham gets closer to opening the business. Word of mouth will be another

marketing channel as well. Announcements made at the church and other pop-up events to

endorse the business will also attract customers. Joining restaurant week and networking with

other local restaurant groups to support each other will be a marketing tactic as well. Lastly,

Pham plans to use paid Facebook advertisements as well as purchasing an advertising spot on the

church’s newspaper to market the business as well.

To aid in creating the brand for Ổ Bánh Mì, social media will be used to emphasize the

deli-restaurant’s philanthropic brand. For example, on Instagram, stories and monthly posts will
 25

be used to highlight the amount of bánh mì that was donated and proceeds that go to small

Vietnamese craftsmen in Vietnam. The same can be done on Facebook. Emphasizing Ổ Bánh

Mì’s philanthropic mission through social media is imperative as it gives customers a story to

justify the cost of the meal. It also gives customers another reason to come back and attracts a

niche audience that is dedicated to supporting philanthropic organizations. Ổ Bánh Mì’s social

media presence will show that the deli-restaurant is more than just a humble sandwich.

Customer involvement/reviews

Ổ Bánh Mì will be extremely present on social media. Hue Pham will manage the

profiles of the deli on Yelp, Google, Facebook, and Instagram. Customers will be able to leave

reviews on all platforms. These customer reviews will be useful feedback for Pham to adjust

what customers prefer or want fixed at the restaurant. Pham will check reviews on a biweekly

basis to ensure quality control.

 26

Finances
Methods of Payment and Collection

Pham will utilize a POS system such as Clover or Square for Ổ Bánh Mì’s transactions.

Cash and card will be taken as methods of payment. Pham will determine which POS system

will be the best fit for Ổ Bánh Mì once the location is approved for opening. Money sending

apps such as Venmo, PayPal, and Zelle will not be acceptable as methods of payments once Ổ

Bánh Mì is no longer a pop-up.

Fixed Costs

Pham has already made most of the start-up purchases for Ổ Bánh Mì. The commercial

machinery used for the pop-up will be used for the store as well. The following start-up costs for

the pop-up are listed below.

Item Cost

Trailer for Pop-Up $1200

Machines: $8000

Oven, Proofer, Mixer, Roller

Digital Scale $15

Total $9,255.00
 27

Variable Costs

All ingredients are sourced from Restaurant Depot, Costco, Sam’s Club, Ideal Market,

and various Asian markets in Baton Rouge. Current ingredient costs are as listed:

Ingredients Cost
(Per 100 loaves: 60 Đặc Biệt and 40 Xíu Mại)
Carrots $9.95

Daikon $5.97

Cilantro $11.90

Jalapeños $2.00

Cucumbers $5.00

Vinegar $4.50

Sugar $1.75

Flour $15

Yeast $0.40

Salt $4.00

Homemade Mayonnaise $10.00

Pate $25.00

Pork Shoulder $49.35

Water and Electricity $40

Total $184.82

Compensation for human resources is excluded in the variable costs because Pham

performed all tasks. During the pop-ups, 4 of Pham’s siblings were asked to post about the pop-

ups which took about 5 minutes per person as Pham created the post that they could just upload.
 28

As for prepping, Pham used about 3 hours from start to finish for the bánh mì, and 8 hours for

preparing ingredients and assembling the sandwiches. These duties include mixing, proofing,

baking, marinating ingredients, making spreads/sauces, and assembling/packaging. The

preparation portion was split among two days. Pham has been using the extra revenue to invest

back into Ổ Bánh Mì but will soon start to compensate himself. His approach is to invest in

machinery and technique improvement with the extra money until July of 2022 as it will lead to

bigger profit margins for future pop-ups. After improvements are completed in July, starting

August 2022, Pham will start to invest 1/3 of revenue into the business (including paying himself

back for the fixed costs) and collect 1/3 of revenue as compensation for his work. This will

amount to the total revenue as current costs, seen in the next section, accounted for

approximately 1/3 of the revenue.

 29

Past Sales

Ổ Bánh Mì’s pop-ups are pre-orders only. In 2021, there were monthly pop-ups from

July- December. All were sold for $5 for each sandwich and $6 for 5 plain loaves. Pham

announces the pop-ups to family and friends as well as posting on his Facebook. Pre-orders are

taken the Tuesday-Thursday before the final Sunday of the month. Pick-ups from Pham’s house

occur from 7-noon on the final Sunday of the month. Pham may announce the end of pre-orders

when sold out. During July and August, Pham was working out of his own kitchen without the

commercial equipment and had a cap of 100 sandwiches/loaves. The following months, Pham

had a cap of 150 sandwiches/loaves. Many of the sales were repeat customers. The past sales are

as listed:

Month Amt Sold Amt Sold Amt Sold Sales Amt Costs
Đặc Biệt Xíu Mại Plain
$5/each $5/each $6/5
July 45 37 0 $410.00 $144.82

August 52 38 10 $254.00 $160.76

September 115 0 10 $587.00 $173.22

(No Xíu Mại)
October 92 43 15 $693.00 $197.43

November 100 35 15 $693.00 $204.98

December 82 33 35 $617.00 $183.80

Total: 486 186 85 $3,254.00 $1,065.01

 30

Appendix A: Branding Initial Concepts (All Subject to Change)

Full Logo
 31

Branding Strategy Recap

Brand Strategy Recap

PURPOSE
To share the joy and create nostalgia of Vietnamese cuisine in
the community

TONE OF VOICE
Hip, local, fresh, affordable, casual, quality

TARGET AUDIENCE
Baton Rouge residents, mostly of Vietnamese descent
Locals who miss travelling and would like food on the go
Local grocery stores and restaurants
 32

Tagline

Tagline

Different to “Vietnamese Sandwich Deli” this can be a lil saying

Feels “on brand” by using the “O” and can be switched up with other words
describing O Banh Mi
 33

Icon Logo

Icon Logo

Social media display pictures such as Facebook, Instagram, even Favicon for
website - 2 versions for choice
 34

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