Running head: CHOW CHOPPER FINANCIAL PLAN Chow Chopper Financial Plan 1 Running head: CHOW CHOPPER FINANCIAL PLAN Table of Contents Startup Funding 3 Use of Funds 3 Sales Forecast 4 Cash Flow 5 Balance Sheet 6 Income Statement 8 Break Even Analysis 8 Valuation After 5 Years 10 Exit Strategy...................................................................................................................................14 References 15 Appendix A: Excel Financial Spreadsheet 2 Running head: CHOW CHOPPER FINANCIAL PLAN Start-up Funding The Chow Chopper is seeking to obtain $400,000 in financing from an established bank in the form of a 7A small business loan. The co-founders of The Chow Chopper have jointly contributed $200,000 of their personal funds to invest in the company due to their significant conviction that this business proposition is one of great potential. According to fitsmallbusiness.com, in August 2016 the maximum interest on SBA 7A loans range from 5.75% to 8.25% therefore the business owners are pursuing a 5 year small business loan with an interest rate of 6% to 7%. The combined start-up budget of $600,000 will be used to secure operating locations, renovate and furnish the locations, purchase the unmanned aerial drones and execute our start-up marketing plan. [Sma16] Use of Funds Money raised will be put to use immediately towards the traditional fixed and variable costs associated with any new business. This includes expenses such as office space and hub locations, furniture, utilities, rent, insurance, hiring key employees, and Chow Chopper drones. We would also be using the money towards our technological concept to help efficiently manage our operations. In addition, we will be expensing some money towards Skyward since they will help operate and regulate our commercial drones. With all the important employees in place, the Chow Chopper company will be a well round company to provide a high quality customer service which is the key to a successful company. Another important area for Chow Chopper to be successful is customer service. In 3 Running head: CHOW CHOPPER FINANCIAL PLAN order to acquire customers, we will need a strong marketing campaign which is a vital and essential cost. This is create a foundation for all new customers that the Chow Chopper provides reliable services and wants to create relationships with each one. Our potential customers will learn that we care more about the quality than the quantity from the beginning. In the financials, it will be clear that the Chow Chopper plans to distribute the startup funds to highlight these important areas. As listed in the Operations Plan, a lot of the startup funding will go towards finding our office, buying our drones, setting up a high level technology application, and paying our employees. It will be tight for the first few years but the founders understand that this is how successful companies begin. Sales Forecast Sales projection for the company was carried out for a period of five years. The volume of sales grew monthly by four percent. Price grew annually by 2%. Also, cost of sales was rated at 45%. The projection anticipates profit making for the company. Some of the assumptions held during projection includes, assuming that no new entrants in the business will stifle business operations, and the government will not impose discriminative legislation that will negatively affect the business and more. All operational, management, administrative and direct costs are assumed to remain on the projected range. In summary, if the projected sales become reality, the company will remain viable and may make more investments using the profit generated from the operation. 4 Running head: CHOW CHOPPER FINANCIAL PLAN Cash Flows Chow Chopper's cash balance is enough to support business operations. The forecasted monthly cash flow for the first two years is in Appendix A. The net cash flow in the first month is positive from the requested $400,000 SBA loan. The net cash flow in the first six months is slightly positive due to costs of purchasing drones and technology costs balanced by the companies first sales associated with a brand new business in a new market. The minimum predicted cash balance is $78,561 for the first year, occurring in the second month of operations due to startup costs and business growth. The cash flows depicted in appendix A will enable Chow Chopper to conduct business by providing the capability of expansion in two years. The chart above depicts first year cash flows steadily rising and eventually offsetting initial investment costs ending with $1.89 million in ending cash balance. 5 Running head: CHOW CHOPPER FINANCIAL PLAN Balance Sheet At the end of five years the balance sheet shows the company's position as solidly established in the market with the capability to expand within the Portland market. The first year balance sheet estimates total liabilities and net worth at $1,184,891. 6 Running head: CHOW CHOPPER FINANCIAL PLAN The end of year 5 balance sheet shows healthy growth and gains in cash and retained earnings, putting Chow Chopper in the comfortable position of $395,599,872 net worth. 7 Running head: CHOW CHOPPER FINANCIAL PLAN Income Statement Chow Chopper's income is based on projected sales from the marketing 8 Running head: CHOW CHOPPER FINANCIAL PLAN department, cost of goods sold, planned sales price,, and a four percent commission for the sales team. The cost of goods sold is based on the market price for the maintenance of equipment used for drone delivery. The return allowance is zero because it is assumed that once a customer places an order, the job will be completed and no items will be returned. The major monthly expenses for Chow Chopper are rent, technology costs, salary, benefits, marketing and advertisement budget, and insurance. As the company grows, the number of employees increase and salary, benefits, and insurance costs also increase, as shown in the jump in expense in 2018. The assumptions used to calculate costs are shown in Appendix A. The forecast for the first five months of operations results marginal net profit of less than $40,000 due to the high startup costs and establishing sales. In the next six months, Chow Chopper is profitable, and is forecast to sell enough to earn $482,043 in net profit by the end of year one. As sales increase, the net profit in the remainder of the first five years is positive and steadily increases with time. The net profit for the first five years is summarized in Appendix A. After five year of business, the projected net profit is $1,352,803. Break-even analysis The financial statements paint a clear picture of Chow Chopper as an adventurous new concept that will revolutionize food delivery in the Portland area. The figure below shows the graphical representation of the break-even point, which we estimate will occur in the 1st Quarter of year 2 of operation. 9 Running head: CHOW CHOPPER FINANCIAL PLAN 10 Running head: CHOW CHOPPER FINANCIAL PLAN 11 Running head: CHOW CHOPPER FINANCIAL PLAN The break even analysis shows a robust sales estimate and positive cash flow early in the company's growth cycle. Valuation after 5 years Gordon model was used in the valuation. The valuation was done as below; Total sales for 2020 = gross profit $21,015,513 - $1,306,779 = $19,708,734 Tax at 25% = 0.75 x $19,708,734= $14,781,546 Add depreciation $9,996 =$14,791,546 Annual growth rate =4% Project discount rate=10% = $14,791,546 x (1 + 0.04/0.1-0.04) = $14,791,546 x 1.04 0.06 Answer= $ 256, 386,797 Gordon model was preferred since it gives an appropriate valuation of the company. Since the incorporation of Chow Chopper Company's, the performance has been impressive. Despite fewer companies' offering related services, projections about the future depicts that profits will still be recorded. In reference to above valuation model, a record of $ 256,386,797 implies the company still have favourable trading environment. 12 Running head: CHOW CHOPPER FINANCIAL PLAN Graph for the valuation after five years. 25000000 20000000 15000000 profits 10000000 5000000 0 sep oct nov dec jan feb march april may jun july august Months The above gives an insight of monthly valuations during the entire period. Accurate valuation is important as management can rely on such information to formulate viable decision about the firm. The main downside with using the above data is that it doesn't factor competition and assumes business environment and industry changes insignificantly. 13 Running head: CHOW CHOPPER FINANCIAL PLAN We can also use a pie chart to present the above information. A pie chart shows the values in-terms of percentages as shown below; profit sep oct nov dec jan feb mar apr may june july august From the above chart, we can easily conclude that the percentage of profit growth during the year was very small. Practically, profits increased monthly by 4%. Exit Strategy At the end of 5 years according to the Gordon model used the business will be valued at $ 256, 386,797. This is robust income. The Chow Chopper will pay out ten percent of profit sharing to the co-owners of the business Shaina Turley and Edmund Miller Jr each receiving $135,280. The projected net profit after five years is 1,352,803. The remainder $1,082,242 will be reinvested into the business for growth and expansion into other viable areas of Portland. The Chow Chopper would have 14 Running head: CHOW CHOPPER FINANCIAL PLAN established a strong reputation over the first five years in the Northwest Portland areas and now would want to be established in the entire Portland area over the next two years. This is expected to be relatively easy as the company has already established a reputation in the industry and will have many interested customers. Around years eight to years ten the Chow Chopper will look into mergers in a new city with franchise restaurants to have a solid stream of cash flows from already reputable companies in the industry that have many loyal customers looking for the benefits of the Chow Chopper. To summarize, the Chow Chopper's exit strategy at the end of five years will include payouts to co-founders, expansion in all of Portland years six through years eight, and mergers in other cities with franchise restaurants years eight to years ten. We believe these decisions will allow the Chow Chopper to establish an even stronger presence in the industry through these mergers as it will allow franchise restaurants to offer more to their customers and the customers will be more receptive towards the Chow Chopper as will have five years or more experience in the industry. 15 Running head: CHOW CHOPPER FINANCIAL PLAN References Association, S. B. (n.d.). SBA Loan Rates. Retrieved August 13, 2016, from Current Interest Rates and How They Work: http://fitsmallbusiness.com/sba-loan-rates/#504Rates 16 Running head: CHOW CHOPPER INDUSTRY ANALYSIS Chow Chopper Industry Analysis 1 Page |1 CHOW CHOPPER INDUSTRY ANALYSIS TABLE OF CONTENTS Introduction.........................................................................................................................Page 2 Industry Review..................................................................................................................Page 2 Regulation Review and Legal Concerns.............................................................................Page 4 Competitive Analysis..........................................................................................................Page 6 SWOT Analysis..................................................................................................................Page 8 Conclusion..........................................................................................................................Page 12 References..........................................................................................................................Page 14 Introduction The Chow Chopper is a company that aims to deliver fresh food in minutes with care via state of the art drone technology to the Portland, OR community. Currently, there are very few companies offering food delivery via drones and both Amazon.com and Walmart are initializing similar services in various cities. This company is different from competitors in that it will specialize in the Portland locality and offer restaurants an option to deliver food faster than ever before right to customer's doorstep or to a location unreachable via car delivery. People want their food fast and to get on with their day. The Chow Chopper is the solution. This on demand delivery service provides customers fresh food in less than 30 minutes. Our drone delivery service will deliver from local restaurants in an eco-friendly delivery container to your 1 Page |2 CHOW CHOPPER INDUSTRY ANALYSIS designated delivery point within the Portland area. This gives our customer an eco-friendly option to get their takeout rather than driving, saving our customers precious time, and decreasing air pollution emissions. Chow Chopper is unique because it will be the first local delivery service of its kind in the Portland area. Our delivery service caters to customers who are environmentally conscious and want another resource for getting their breakfast, lunch or dinner quick fast and in a hurry. Industry Review Unmanned Aerial Vehicles, UAV's, are about to change our lives. They are being used all around the world. Some examples include, energy companies using them to inspect power lines in the United Kingdom, Japanese farmers using them to spray crops, and the United Arab Emirates is working on a prototype to deliver government documents [Gui15]. In the United States, UAV's are being used in a variety of industries from real estate to construction. The first UAV created were mostly for the military. This industry required big budgets and cutting edge specs. For instance, MQ-9 Reaper, which is a UAV used in battlefields, cost about $12.5 million [Kay13]. The second UAV's were created for children and hobbyists. This industry had low budgets but enjoyed the advantages of using UAV's [The16]. The UAV's for children and hobbyist prices ranged from $100 to $5,000 according to the level of technology that the UAV was equipped. Both of these industries used some ideas in the advances of technology to create both UAV's for military and toys. The Chow Chopper is the drone we have designed to deliver fresh food in minutes with care via state of the art drone technology to the Portland, OR community. The cost for drone usage in delivering food is $50,000. The benefit 2 Page |3 CHOW CHOPPER INDUSTRY ANALYSIS for starting the Chow Chopper Company is it has the advantage of being one of the first to enter the market for this purpose. Currently we only have a dozen companies approved to operate drones commercially in the United States resulting in low competition and the ability to acquire more local businesses. This is a great opportunity for the Chow Chopper to set the standards for food delivery via drone technology and establish a reputation in the industry that will inspire others to follow. 3 Page |4 CHOW CHOPPER INDUSTRY ANALYSIS Regulation Review and Legal Concerns For the business to operate the business must adhere to all the licensing policies from various departments of the City of Portland and or State. The first we have to ensure that we register our business with; 1. Office of Management & Finance Revenue Division will confirm and authorize us to collect any city sales tax. So that we comply with all Portland City sales tax on food and beverages we need to register our business in such. Everyone doing business in Portland or Multnomah County is required to register. (Revenue Division - Office of Management & Finance - the City of Portland) Portland Bureau of Transportation (PBOT) for the following; 2. Parking Permits City Code 16.20.220; in order to designate specific locations around the City of Portland to mark delivery locations our customers can pick up their food delivery, we must adhere to PBOT Central City Plan District including any ordinance restricting vending may not occur within 250 feet of any public library or park grounds, any stadium or grounds. (Department of Transportation, The City of Portland 2016) 3. Signs & Other Permits Title 32; Signs, A-Board and Banner; any signage, or advertisement around the City of Portland we must file the appropriate permit request through the Development Services Office and Portland Bureau of Transportation. Despite the beauty associated with this modern day delivery system we intend to use, there are also some challenges associated with the same. One of the limitations is with the Federal Aviation Authority (FAA). The Federal Aviation Authority has made it mandatory to register 4 Page |5 CHOW CHOPPER INDUSTRY ANALYSIS owned drones that is purchased and weighing over 55lbs. In addition, the FAA has enforced pilot requirements including our pilots passing an initial aeronautical knowledge test at approved FAA knowledge testing centers, they must also be verified by the Transportation Safety Administration (TSA) The complete list of requirements are as follows; First-Time Pilot To become a pilot you must: (Federal Aviation Administration - Unmanned Aircraft Systems) Be at least 16 years old Be able to read, speak, write, and understand English (exceptions may be made if the person is unable to meet one of these requirements for a medical reason, such as hearing impairment) Be in a physical and mental condition to safely operate a small UAS Pass the initial aeronautical knowledge exam at an FAA-approved knowledge testing center Pilot certificate Requirements Must be easily accessible by the remote pilot during all UAS operations Valid for 2 years - certificate holders must pass a recurrent knowledge test every two years Existing Pilots - What to Expect Eligibility: Must hold a pilot certificate issued under 14 CFR part 61 Must have completed a flight review within the previous 24 months Remote Pilot Certificate Requirements Must be easily accessible by the remote pilot during all UAS operations 5 Page |6 CHOW CHOPPER INDUSTRY ANALYSIS Valid for 2 years - certificate holders must pass either a recurrent online training course OR recurrent knowledge test every two years Other issues we may incur are our drones could be at risk in the hands of untrustworthy customers who may damage them or hack their systems and use them to their advantage leading to losses for the company. The introduction of drones in the market for food delivery will make it possible for food to be delivered even to places where some road condition gets worse, and they become impassable in inclement weather. They will also make it possible for food to be delivered in much less time and help to avoid the compensation costs experienced earlier when foods used to get cold on delivery by use of road transport. In conclusion, the use of drones to do business will be the most efficient and reliable means for food delivery. Competitive Analysis Direct Competitors A complete competitive analysis shows that there are no direct competitors at this time. Currently, in the Portland area there are no restaurants or fast food chains that provide drone delivery as an option nor are there drone delivery businesses in this area. All the restaurants in this area offer the standard dine in, carry-out and car delivery options which makes The Chow Chopper a unique business opportunity. The world of unmanned aerial vehicles is improving daily with drones that now come equipped with cameras and the ability to carry cargo (AlleyYoung, 2015). The companies currently testing and using drone delivery are limited to online retail stores such as Amazon, Walmart and Google however that does not pertain to hot food delivery (French, 2015). The UAV delivery services being offered by companies such as 6 Page |7 CHOW CHOPPER INDUSTRY ANALYSIS Amazon are for items typically purchased on their website such as clothes or household goods but not specifically for food. While Amazon is said to be \"experimenting with a restaurant delivery service in Seattle\" there is no evidence showing that they will use unmanned aerial vehicles to do so (Demmitt, 2015). The restaurant industry has yet to fully embrace the concept of drone food delivery which is why taking full advantage of UAV technology and cornering this market in a small localized area such as Portland can be the start of a ground-breaking change for the restaurant industry. Possibilities are endless and The Chow Chopper intends on tapping into these prospects. Indirect Competitors Although there are currently no direct competitors in the food delivery market in terms of the use of unmanned aerial vehicles, there are many driving delivery services that pose potential threats. Companies such as Grubhub and UberEats provide delivery options to restaurants that do not typically offer the option to deliver food orders. Customers can get their favorite foods from any restaurant with the help of these delivery service companies. Though a relatively new concept, companies like Grubhub are established and have been in use for a few years now. Currently, Grubhub is the nation's leader in online and mobile food ordering. They provide customers with the ability to \"order directly from more than 44,000 takeout restaurants in over 1,000 U.S. cities\" which is why it is just as important to consider our indirect competitors as it is to consider our direct competitors (grubhub.com, 2015). The Chow Chopper must differentiate itself amongst all competitors alike and the best method to establish itself is by appealing to the customers' needs and wants in regards to food delivery. One of the most difficult aspects with our new idea will be transitioning customers, who are comfortable using Grubhub, UberEats or traditional driving delivery services to using an unfamiliar option like drone delivery. People are hesitant when 7 Page |8 CHOW CHOPPER INDUSTRY ANALYSIS trying new things therefore The Chow Chopper must demonstrate exactly how it will supersede all other delivery options. Customers want quick service, low cost and good food with no hassle; The Chow Chopper can provide all of this and more by removing delivery drivers and using drones to get food to their customers quicker than ever. To win over customers The Chow Chopper must outperform the current competition and prove that it is a reliable and efficient delivery service. SWOT Analysis STRENGTHS Chow Chopper is uniquely suited to offer restaurants an option for food delivery that is unlike any other currently offered. According to the NPD Group, the average customer purchases 127 meals annually at restaurants for consumption elsewhere, compared to 81 meals annually at a restaurant[Nat15]. The percentage of adults who are likely to use delivery from a full service restaurant ranges from 52-68% depending on how frequent they are restaurant patrons, and over half of all consumers purchase takeout once a week or more, utilizing home delivery 45% of the time [Nat15]. What this data tells us is that the market for restaurant delivery is strong and an entrenched part of the way Americans consume restaurant food. Given that takeout and delivery split the market relatively evenly, we want to capitalize on saving restaurants and customers time between food preparation and consumption by using drones to take food immediately when prepared to the customers' location. This reduces time from production to delivery by allowing the company to send the food out immediately when the order is complete without hiring internal 8 Page |9 CHOW CHOPPER INDUSTRY ANALYSIS delivery personnel. For end user customers, they get their food faster than if they went and picked it up themselves. Chow Chopper is a strong concept due to its revolutionary use of brand new drone technology to reduce delivery time for restaurants and deliver food to a precise location marked by customers. It specializes in restaurant delivery, thus focusing on providing the best service to local restaurants in the Portland area, providing true local service, and adjusting to customer needs quickly since we are designed specifically for this purpose. Our delivery isn't a part of some giant corporation, but a commitment to improving restaurant customer service. WEAKNESSES There are weaknesses to conducting restaurant delivery via drones. Chow Chopper is a small business serving the Portland area. Should growth opportunities arise quickly or large companies take over market share, Chow Chopper may not have the capital to outpace that growth. Additionally, delivery time is paramount to competing in this sector. If the company is unable to provide delivery service faster than car delivery and/or cheaper, it will be difficult to gain market share. A potential weakness is the pending and continual development of drone regulations in localities and by the FAA for nationwide drone use. Any change in these results unfavorable to this type of business and could be potentially disastrous. Another challenge is the effect of weather on drone delivery systems and their navigational components, which is an area that is still under development. Restaurants would have to adapt from having a person pick up the order from the restaurant to an employee placing the order in a designated drone delivery container. This requires training and even simple actions can present a barrier to hiring Chow Chopper for their food delivery needs. 9 P a g e | 10 CHOW CHOPPER INDUSTRY ANALYSIS OPPORTUNITIES Chow Chopper is uniquely suited to take advantage of brand new drone technology and the unveiling of new FAA regulations that allow for business use of drones. The restaurant delivery business is a growing sector, and according to the National Restaurant Association (NRA) 2015 Restaurant Industry Forecast, America's 365,000 independent restaurants sell about $70 billion in takeout food a year, and the percentage of online orders continues to increase. Also, 3 in 5 consumers order delivery or takeout once a week [Nat15]. The food delivery service market is a growing sector enabled by application technology that allows users to order food with their cellphone for quick delivery. The biggest opportunity for a drone-based food delivery company is the ability to deliver to remote locations and get food to the customer faster than a car could while avoiding any effect of traffic on the time to deliver. THREATS There are a number of competitors and large companies testing drone delivery systems, such as UberEATS, Grubhub, and EAT24 to name a few [Don151]. Grubhub uses mobile application technology to connect customers with a restaurant's online ordering mechanism and contracts out delivery to drivers. UberEATS uses its driver network that has been delivering people for years, to swing by and pick up your takeout for you. As this sector develops and the legalities are sorted out around drone technology, these companies will have the capital to invest in a drone option and will likely seek to either contract drone delivery, which would benefit Chow Chopper or directly compete in the drone takeout delivery business. Another potential threat is the expansion of large companies planning to leverage drone delivery for their own products, such as Amazon.com, moving that ability into the restaurant delivery sector. 10 P a g e | 11 CHOW CHOPPER INDUSTRY ANALYSIS OTHER Drone delivery via the Chow Chopper would revolutionize restaurant food delivery by offering takeout delivery faster than current methods to any location that can be set with a GPS-enabled device. Obstacles to overcome to successfully operate include navigating FAA regulations, finding an appropriate delivery vehicle, training restaurant staff to properly use the delivery system, and the small scale of Chow Chopper restricts its operations to the Portland area. Opportunities abound in the growing food delivery sector as more and more Americans eat restaurant food and are constantly seeking ways to save time. Threats to the Chow Chopper can come from numerous large companies and the alreadyoperating car delivery services that provide online ordering and relatively fast delivery via ground vehicle. RISK MANAGEMENT PLAN Risk is inherent in any new endeavor and drone delivery is no exception. In fact, there are numerous aspects of this business that must be taken into consideration. First, one must consider the risk of success. What are the specific factors that must be planned for and maximize to ensure Chow Chopper succeeds in this competitive market? The possibility that drone food delivery will dramatically reduce delivery times for restaurant food to customers is high. Given that, there are programs and processes that Chow Chopper can put in place to increase the risk that their delivery is faster. These include an integrated application that provides ordering and location services so that all orders arrive exactly where a customer selects and a drone is dispatched immediately to the delivering facility. 11 P a g e | 12 CHOW CHOPPER INDUSTRY ANALYSIS Other risks exist that would negatively affect Chow Chopper, and they must be planned for and mitigated. This could include FAA regulations that negatively impact our ability to do business. Mitigation efforts will be undertaken to lobby the FAA for favorable laws, ensure a presence in local government to provide drone operators perspective to any local ordinances, and to submit waivers for any ruling that would curtail our operations. Additionally, employees must operate drones within current guidelines, and because of this there is always a risk of FAA violations. Chow Chopper will mitigate this through the use of a comprehensive training program and annual reviews to test employees' knowledge of regulations. Delivery errors could also negatively affect consumer satisfaction and must be reduced to the maximum extent practical. The delivery application must be simple to operate and be continually adapted to better suit the needs of customers. Risk is inherent in any new venture, but with integrated planning solutions, and the ability to adapt and overcome any obstacle, Chow Chopper can lead the charge in delivery efficiency. Conclusion Chow Chopper is a revolutionary new concept, and one that brings with it the possibility for fast delivery of restaurant food to the customer, no matter where they may be. With any new technology, growing pains and challenges can be anticipated, planned for and risks of all types mitigated through detailed analysis and execution. The restaurant delivery sector has undergone rapid transformation since the advent of application-based order and delivery systems. Chow Chopper is another step in that evolution, taking existing ordering technology and adding the efficiency of drone delivery, effectively reducing delivery times and increasing the flexibility of 12 P a g e | 13 CHOW CHOPPER INDUSTRY ANALYSIS current delivery systems. Of course, this company does not exist in a bubble and many companies compete in this sector and will attempt to maximize their own market share. Anytime a new idea is introduced, running with it is a risk. With Chow Chopper, success would revolutionize food delivery and create a new standard for convenience and speed of delivery. References 13 P a g e | 14 CHOW CHOPPER INDUSTRY ANALYSIS Guillot, C. (2015). Drone's Eye View. Planning, 30-33. Kay, R. (2013, December 4). Drawbacks of Delivery Drones May Outweight the Benefits. Retrieved from Forbes: http://www.forbes.com/sites/rogerkay/2013/12/04/the-drawbacksof-delivery-drones-may-outweigh-the-benefits/#4770a0b16737 The Drone Revolution is Coming. (2016). Trends Magazine, 17-23. Portland Bureau of Transportation, City of Portland - Parking Permits - City Code 16.20.220 (https://www.portlandoregon.gov/transportation/article/64547) Revenue Division, Office of Management & Finance - The City of Portland - New Business Registration (https://www.portlandoregon.gov/revenue/59484) Unmanned Aircraft Systems - Become a Pilot (https://www.faa.gov/uas/getting_started/fly_for_work_business/becoming_a_pilot/ Alley-Young, G. P. (2015). Drone (Unmanned aerial vehicle). Salem Press Encyclopedia, French, S. (2015, December 15). Drone delivery is already here - and it works. Retrieved July 20, 2016, from http://www.marketwatch.com/story/drone-delivery-is-already-here-and-itworks-2015-11-30 Demmitt, J. (2015, August 26). Amazon expands Prime Now into Portland, will deliver food from local groceries. Retrieved July 20, 2016, from http://www.geekwire.com/2015/amazon-expands-prime-now-into-portland-will-deliverfood-from-local-groceries/ 14 P a g e | 15 CHOW CHOPPER INDUSTRY ANALYSIS Overview. (2015). Retrieved July 20, 2016, from http://about.grubhub.com/aboutus/overview/default.aspx Barnburry, D. (2015). Drones: Designed for Product Delivery. DMI . Elzweig, B. (2015). Civilian Commercial Drones Are Coming; Are We Ready? Southern Law Journal, 161-177. Fenn, D. (2015, August 31). The (Almost) Complete Guide to Food Delivery Services. Fortune.com. Guth, D. J. (2016). Restaurants Take a Chance on Tech-Based Food Delivery. Crain's Cleveland Business Vol. 37 Issue 10. Logic Manager, Inc. (2016, July 17). Risk Assessment Template. Retrieved from Assessment Best Practices and Free Download: http://www.logicmanager.com/erm-software/knowledgecenter/best-practice-articles/risk-assessment-templates/ National Restaurant Association. (2014/2015). Takeout and Delivery. Restaurant, Food & Beverage Market Research Handbook. Wehrspann, J. (2015, April 21). What You Didn't Know About Drones. Farm Industry News Exlusive Insight. 15 P a g e | 16 CHOW CHOPPER INDUSTRY ANALYSIS 16