This week, the Eagles ventured more to understand their businesses and what it takes to make money. The week also turned out to have a little fast food theme.
Highlights:
- Wrapping up DTP
- Unit Economics Island
- McDonald brothers and Ray Kroc
- Market sizing fast food business
Wrapping up DTP
After the Design Thinking Programme (DTP) in the early part of this session, the Eagles wrote an email to invite Aunty Rosalind to come back and visit the studios. She gave thumbs up reviews for the changes, and noted that the room design can and should change depending on the need and feel of the users of the room. Thank you Aunty Rosalind for sparing your time to visit the Eagles.
Aunty Rosalind giving her thumbs up and giving more tips for the place
Unit Economics Island
This week, the Eagles began their work on the “Unit Economics Island”. In this challenge, they got introduced to business terms/jargon that like contribution per unit, cost (variable & fixed), pre-tax cash flow and break-even.
Discussion about break even analysis
In the end of day, Eagles will want to know if their business at the Children’s Business Fair will yield any profit, and work out much do they need to sell to cover their initial capital outlay.
Eagles working on their CBF, and even making a music jingle for their stall!
McDonald brothers and Ray Kroc
This week, we showed the movie called “The Founder”. It depicts the founding people of the iconic company that with the golden arches, McDonald’s.
Movie time
Discussions soon take place after the 2-part viewing. Not only were the discussion about the price of the meal (35 cents only), but about the McDonald’s business model, the innovations they brought to the F&B industry, and the fallout of a lucrative business partnership and the ethical questions that come with it.
“Ray Kroc: I know what you’re thinking, how the heck does a fifty-two year-old, over the hill, milkshake machine salesman build a fast food empire with sixteen hundred restaurants and an annual revenue of seven hundred million dollar? One word: persistence.”
Market sizing fast food business
“How many Big-Mac meals does the local McD’s and A&W need to sell to break even?”
Continuing on with the fast food theme from the movie viewing, the Eagles were given the problem question above.
Field trip to gather data points used to improve their cost and revenue estimates
Some Eagles took to the challenge and worked out the variable cost per burger and researched up the monthly “fixed-cost” associated with running a fast food outlet.
Those that went through the motions learnt the extent of their contribution to McD’s and A&W’s bottom line, each time they make a purchase.
Can Eagles bring Ray Croc’s persistence and McDonald’s lessons to their business at the Children’s Business Fair? Will they do more than breakeven? Come find out yourself on 17th June!
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