SKFE FOODS

Group 1
April 28, 2010
David Kampmann
 Group 1, pg 1

Group 1

David Kampmann

CIS 105 3C

April 28, 2010

SKFE FOODS

One business that is familiar to people, is the grocery store. Grocery stores, ranking amongst the

largest of industries, are located throughout the country in many ranges of sizes and handling a variety

of goods. Some smaller towns no longer have grocery stores because of either small populations or they

are located within a short driving distance of a larger city.

After our research that we had complied we came up with some facts that we want to bring to

your attention. Our grocery store is going to consist of our customers basic needs. For our goods and

services we are going to have traditional grocery items, including but not limiting to, fresh meats that

our butcher will custom cut to your specifications, produce, such as tomatoes, fresh carrots from the

local grower, potatoes, and etc., canned and frozen foods, and dry goods such as flour and sugar. Our

nonfood items include household goods, health and beauty care items, pet products, and greeting cards.

We will cater any event that you may have, such as a birthday party, graduation, or just a get together.

Our local florists will provide fresh cut flowers every day for our customers.

SKFE Foods has chosen to bring a grocery store of 50,000 square feet carrying an average of

45,000 items on 5 acres of land into Harrisburg, SD. This size of store is above the average size of 46,000

square feet (FMI). Harrisburg is showing continuous growth and the older people in the community

want and need more convenience. What these bigger chain stores don’t take into consideration when

buying out smaller stores, closing them or down-sizing them is that those older, smaller communities

usually have many elderly people living there that can’t get around in the fast paced bigger cities causing

them to rely on their local marketplace.

 Group 1, pg 2

In researching grocery stores, we found that in 2008 there were approximately 85,200 grocery

stores of which approximately 25,900 were convenience stores (BLS). SKFE Foods has been in business

for 25 years bringing to their customers the finest fresh meats, produce, bakery goods, and a deli

department serving the public nutritious meals three times a day every day. We take pride in servicing

our customers in every way possible through excellent customer service. One of our many services to

the public is ordering by phone or online. By ordering ahead, the groceries will be ready for pick up at

the customers’ convenience. The customer also has the choice to have their groceries delivered to their

home.

After consideration with the hours a grocery store is the most active, and the times where there

is not much traffic, we have come up with a convenient time for our store open and close. We hope that

these hours and times will be the busiest and most profitable. Thus our hours are going to be from 6 am

to 12 am. Due to the rapid growth of Harrisburg, we do believe these will be the most effective times.

Upon our establishment in the community we would like to consider and evaluate being open 24/7.

Employment opportunity is excellent due to the variety of hours available for high school and

college students or anyone seeking a part-time position. Cashiers are the largest occupation in the

industry with courtesy clerks or baggers following. The store managers have multiple duties consisting

of: supervising all employees, setting rules or store policies, hiring employees, maintaining good

standing with the community and customers. They sometimes monitor inventory and the store’s profits

or losses. Usually the store owner or company has office management that handles the accounting

system so that the manager has more time to spend on overseeing the store. We have come up with a

plan to have stockers at night so our customers may shop in a clutter free environment and to be able to

use our employees in an efficient manner. The minimum requirement to work at our store is to be at

least sixteen. If you are applying for a position in the bakery, meats, or deli you need to have a high

school diploma or equivalent.

 Group 1, pg 3

Numerous job opportunities will be available for first-time job seekers, people with limited job

skills, and those seeking part-time or alternative work-schedules. There are many employment

opportunities in grocery stores, whether it is full-time or part-time because of the high turnover.

Grocery stores have a high turnover due to the younger employees moving on to better themselves

either through education or a better job. First-time job seekers usually start their work experience by

finding employment at a grocery store.

Our managers use business specific software to manage budgets, work schedules, track and

place food orders. To be qualified as a manager at our store you must have great communication skills,

strong initiative, excellent leadership ability, and be detail oriented. The larger conglomerate grocery

stores have front-end managers or supervisors that oversee the cashiers and baggers, train new

employees, schedule hours, and oversee sales activity. SKFE Foods has managers for every specific

department with a front-end manager to oversee the employees but will not be responsible for tracking

sales activity.

The purchasing manager has now been replaced with a new type of manager, a category

manager. The category manager does basically the same thing as what a purchasing manager would but

they must understand the consumer preferences thoroughly. A category manager will order the correct

amount and the right package size of a specific category item. He or she will be able to market the item

successfully. Specific categories would be diabetic or sugar-free items, gluten-free or low in cholesterol

items, ethnic foods, gourmet, organic, and all the natural grains that were once and still are available at

health stores. Product demand, sales trends, and profitability will also be the responsibility of the

category manager. The category manager will listen to comments from customers and other

department heads on adjusting future orders, planning budgets and how to display new or slow selling

products. Managers receive a monthly salary and sometimes a bonus based on the stores’ performance.
 Group 1, pg 4

SKFE Foods offers excellent benefits for our full time staff consisting of: health and dental

insurance, an eyeglass plan, a cafeteria plan, sick pay, and vacation pay. We will employ approximately

45 part time people with wages competitive for the industry starting at $8.50 per hour and 30 full time

people. We are an equal opportunity employer.

Wages in the grocery store industry are lower than other industries which are due to the entry-

level or part time positions. The table below shows a comparison of our wages to the national median

average wages for the grocery store industry.

Occupation Our wages National Median Wages

Supervisors/Managers $17.50 16.90

Butchers/meat cutters $15.00 13.98
Bakers 12.90 11.39
Department Heads 10.75 10.00
Stock Clerks 9.50 9.38
Cashiers 9.00 8.59
Packagers/Baggers 8.50 8.00
Source: BLS Occupational Employment Statistics, May 2008

SKFE’s dress code is a casual code but yet professional. We want our employees to feel

comfortable while they work. Our employees must be able to bend, twist, and lift up to 50 pounds. The

employees must have an easy-going personality because work can be hectic and stressful at times.

In conclusion, SKFE Foods is a great place to work. If you have good customer skills and want to

make a difference, come join us at SKFE Foods.

 Group 1, pg 5

Works Cited

Business Labor Statistics, Career Guide to Industries, 2010-2011 Edition

<http://www.bls.gov/oco/cg/csg024.htm>.

FMI. Food Marketing Institute. <http://www.fmi.org>

Library of Congress, <http://www.flickr.com/photos/library_of_congress/2179931106/>

 Karla K. Fox
23496 455th Avenue
Madison, SD 57042
(605) 256-0390
Email: karla_fox@msn.com

Objective: To obtain an accounting or business position with the opportunity for growth
and challenges.

Education: Dec. 2011 | Southeast Technical, Sioux Falls, SD

Degrees: Accounting, AAS
Health Information Services, diploma

May 1989 | Dakota State University, Madison, SD

Degree: Modern Office Systems, AAS

Experience: April 2009 to Present | Cashier

Sunshine Foods, Madison, SD
Balance cash drawer
Customer service

Aug 1999 to July 1, 2010 | Administrative Assistant |A/P Clerk

Gehl Manufacturing, Madison, SD
Accounts Payable
Data entry of invoices
Finalize finished goods job orders
Timekeeping Clerk/Payroll
Assist with internal audits

Dec. 1996 to Aug. 1999 | Vault Teller

Wells Fargo Bank, Madison, SD
Reconciliation of currency transactions
Order currency for weekly operations
Handled customer relations with high most confidentiality

Aug. 1989 to Dec. 1997 | Customer Service Manager

Chuck’s Jack & Jill, Madison, SD
Department Supervisor
Did work schedules
Ordered inventory for stockroom and advertised items
Trained new employees

References: Available upon request

 Sheet1 4/28/2010

ID Department's Field2 Full Time Hours Part Time Hours Hourly Wage
1 Supervisor 480 0 $17.50
2 Manager 960 0 $17.50
3 Butchers 320 120 $15.00
4 Bakers 480 320 $12.90
5 Department he 1280 0 $8.50
6 Cashier's 800 490 $9.00
7 Packer's 800 490 $8.50
8 Total 5120 1420 $88.90
9

Page 1
 Sheet1 4/28/2010

Monthly Wage Part Time- Monthly

Yearly
WageWage
$8,400.00 $0.00 $1,764,000.00
$16,800.00 $0.00 $3,528,000.00
$480.00 $1,800.00 $102,600.00
$6,192.00 $4,128.00 $1,304,448.00
$10,880.00 $0.00 $2,284,800.00
$7,200.00 $4,410.00 $1,516,410.00
$6,800.00 $4,165.00 $1,432,165.00
$56,752.00 $14,503.00 $11,932,423.00

Page 2
Full Time Hours
Part Time Hours
 SKFE
Emp

rs
H ou
e
Tim
Department's Ful
l
Supervisor 480
Manager 960
Butchers 320
Bakers 480
Department heads 1280
Cashier's 800
Packer's 800
Total =SUM(C6:C12)
 SKFE Foods inc.
Employee Wages

rs
ou e
e H ag
W
Tim rly
rt u
Pa Ho
0 17.5
0 17.5
120 15
320 12.9
0 8.5
490 9
490 8.5
=SUM(D6:D12) =SUM(E6:E12)
inc.

e
ag
l yW
th
ag
e on e
W e -M ag
thly Tim rly
W
on rt a
M Pa Ye
=SUM(C6*E6) 0 =SUM(12*F6*17.5)
=C7*E7 0 =SUM(12*F7*17.5)
=SUM(C9) =SUM(D8*E8) =SUM(12*F8*17.5+G8)
=SUM(C9*E9) =SUM(D9*E9) =SUM(12*F9*17.5+G9)
=SUM(C10*E10) 0 =SUM(12*F10*17.5)
=SUM(C11*E11) =SUM(D11*E11) =SUM(12*F11*17.5+G11)
=SUM(C12*E12) =SUM(D12*E12) =SUM(12*F12*17.5+G12)
=SUM(F6:F12) =SUM(G6:G12) =SUM(H6:H12)
SKFE FOODS

1301 South Walter Avenue, Wallensburg, SD 57008

Phone: 605-555-5100 * Website: www.skfefoods.com

April 13, 2010

Lincoln County Development Committee

1000 Main Street
Harrisburg, SD 57008

Dear Development Committee:

The SKFE Foods partnership would like to expand their business to your community. We have
surveyed your community and have concluded that your community would benefit from our services.
Your community is growing but is still located a distance away from Sioux Falls. This is where we come
in.

We would want to purchase 5 acres of land to construct a building of 50,000 square feet. Our
business would offer the best fresh produce, delivered daily, and the finest quality of meats which will
have a butcher on staff at all times to answer any questions. Our bakery department will bake daily;
while our deli department will be open for sit-down breakfast, lunch, and dinner 7 days per week, and a
small floral shop.

We will be offering online grocery shopping with optional delivery two times per week, and will
provide catering services for any event. We will be open from 6 am until 12pm seven days per week with
restocking the shelves done after 12pm. Our holiday hours will be limited so that our staff may spend
holidays with their families.

By allowing us to come into your community, we will bring in revenue and provide jobs with
excellent wages and benefits for qualified individuals. My partner and I have many years of experience
in the business, and we know that we can provide many benefits to you and your community.

I will contact you next week to set up an appointment to discuss our proposal for your
community. If you would like to speak to me before then, please call me at 605-555-5100.

Sincerely,

Karla Fox
 A list of questions that we need to research:

1. How do we know what products to carry?

a. Start with the basics, don't go overboard on inventory.

2. What package size would sell or do we carry all sizes?

a. Don't carry all sizes, supplier can tell you what is the most popular sizes.

3. How many varieties should we carry of each brand?

a. Start small, maybe 2-3 depends on what it is.

4. Do we need to consider the dietary needs of our customers?

a. Yes, to a certain degree.
b. You could get stuck with product

5. The biggest question is, how do we find our main suppliers?

a. Talk to other grocery stores.
b. The suppliers will find you, when they hear you are starting up.

6. Is there usually a limit on how much we would need to order before they will deliver?
a. Yes, there is a minimum order.

7. If you did a delivery day, what day of the week would you choose?
a. Monday & Thursday's are good the produce will look fresh.

8. Services offered:
a. Delivery
1. How many times a week
2. What day of the week do we want to deliver
3. Do we need to hire personnel for this

9. How many employees do we need

10. Location:
a. Building in Harrisburg

11. What do we need to build this (permits, land purchasing, city ordinances,
a. Permits
b. Land
c. Approval from the development committee for the area
d. Approvals from the city and county commissions
e. Financial backing