CulinaryOn Milan 2020

CULINARYON GLOBAL

MILANO 2020

Opening strategy

EXECUTIVE SUMMARY

Location

The optimal size will be 550-600 sqm, with 3 studios, a conference room, a small office, kitchen and storage. Best location will be the center of Milan (Navigli, Isola, Gioia, Porta Nuova).

Event size

B2B/B2C events will have on average 23 guests, while open classes will have 15 guests. (This is in line with other locations, though Bucharest shows 25.5 guests per event due to high B2B weight).

Number of events

B2B/B2C: 450 events in year 1, +25% in year 2 and +20% in year 3, reaching 850 events per year. Open classes: 20% of the B2C/B2B (1-2 Classes per week in year 1, and 2-3 classes per week in year 3). Promo events - 5/month.

Average check

B2B/B2C: 130 euro/person (+15% service, including all the food, beverages, wine and other services) in year 1, growing at 3% per year. Open classes average check is -31% vs B2B/B2C at 90 euro net.

Food & Beverage

Food cost at 8 euro, Wine at 5 euro and Beverages at 1 euro per person, total food cost is 14 euro/guest.

Marketing

We expect to spend 6,5%-7,5% in online & offline marketing (on top of the promo events) in year 1 and 2, going to 5% after that.

Other expenses

We expect to spend for other expenses 8,5% in year 1, 7% in year 2, and 5% going onwards in other G&A expenses.

Rent

25 euro per sqm Rent + 4 euro Maintenance, equal to 348 euro/sqm/year.

Staff cost

The staff cost is quite high (54% of revenue in year 1 and 42% from year 3), so it will be necessary to use different types of contracts with flexible schedule and part time employees.

Capex

Aprox. 1800 euro/sqm

MILAN

General information

Milan is a city in northern Italy, capital of Lombardy, and the second-most populous city in Italy after Rome, with the city proper having a population of 1 372 810 while its metropolitan area has a population of 3 242 820.

Milan is considered a leading alpha global city, with strengths in the field of the art, commerce, design, education, entertainment, fashion, finance, healthcare, media, services, research and tourism.

Its business district hosts Italy's stock exchange and the headquarters of national and international banks and companies.

In terms of GDP, it has the third-largest economy among European cities after Paris and London, but the fastest in growth among the three, and is the wealthiest among European non-capital cities.

There are several important and symbolic events in Milan during the year: Fashion week, Furniture fair, Grand Prix, MITO music festival, Carnival Ambrosiano, Milano film festival etc.

CITY

City and it's zones

Milan city comprises nine zones:

1 - Centro storico
2 - Stazione Centrale, Gorla, Turro, Greco, Crescenzago
3 - Città Studi, Lambrate, Porta Venezia
4 - Porta Vittoria, Forlanini
5 - Vigentino, Chiaravalle, Gratosoglio
6 - Barona, Lorenteggio
7 - Baggio, De Angeli, San Siro
8 - Fiera, Gallaratese, Quarto Oggiaro
9 - Porta Garibaldi, Niguarda

Business & premium zones

There are several important zones in the city

Business zones

City Life
Fiera Milano
Fondazione Parada
Gioia
Milano Romolo
Maciachini

Luxury zones

Il quadrilatero della moda
Il centro storico – zona Duomo
Brera
Quartiere Isola

There are also two areas in the city - Navigli and Isola, with a lot of bars, restaurants and shops, where the milanese people spend their time in the evening. Isola is the new developing area to take into consideration, because of the relatively low rental prices at the moment.

CULTURE

Cultural features and traditions

Italians in general are very open, sociable and extroverted people who like enjoying good communication, sunny weather, delicious food, tart coffee in the morning, good wine in the evenings and a pleasant atmosphere.

FOOD

Wherever you are, whoever you talk to, talking about culinary art will sooner or later become the center of attention. Italians willingly share the recipes of their favorite dishes, scout places where you can buy the best and freshest products, and also experiment with food.

FAMILY

Family means a lot to any Italian. A modern family in northern Italy consists of parents and children, and the distribution of functions in it is less traditional. But for modern Italian families it is still important to bring all relatives together on weekends or holidays.

CULTURE AND AESTHETICS

Every city, every street, every square in Italy is history. Beautiful architecture, sculpture, murals, painting affect people in their daily lives. Life in this aesthetically beautiful environment shapes the creative character of people there.

MILANESE PEOPLE

As with the city, Milanese people are renowned for their lifestyle and their looks. Beyond the pretentious image of mobile-toting fashion victims, the Milanese are self-assured, hard-working business people, leaving in high dynamics.

ECONOMY

Milan economy trends

Over the past five years, GDP (Gross Domestic Product) growth in Milan and the surrounding area has increased by some 9.7 % – more than twice as fast as the national increase of only 4.6 per cent.

Milan has now left the crisis behind and is the leader among European 'growth locomotives' for reputation. Its strong point is its production system.

Milan's GDP in 2018 registered + 6.4 per cent compared to 2008, compared with a national average still negative by -3.3 per cent, and a + 9.7 % in comparison with 2014 (+ 4.6 % in Italy)

Milan is home to many of Italy's major corporations, and 27 of the world's 100 largest companies, including Italy's largest bank (UniCredit) and the world's biggest eyewear company (Luxottica) are headquartered in the Lombard metropolis.

Other major Milan-based corporations and banks include Luxottica, Borsa Italiana, Telecom Italia Mobile (TIM), Intesa Sanpaolo, Banca Popolare di Milano, Vodafone Italy, Odeon TV, Fininvest, Edison, Esselunga, FinecoBank, Versace, Gucci, La Rinascente, OVS, Alfa Romeo, Prada, Etro, Pirelli, Compagnia Generale di Elettricità, 10 Corso Como, Valentino, Armani, Missoni, Moschino, Telelombardia, RCS MediaGroup, Anfatis SpA and BBPR.

Learn more about Milan's economy

TAXES

Payroll & Taxes in Italy

In Italy the standard Vat rate is 22% and reduced rates are provided for several supplies of goods and services, such as 4% for listed food, drinks and agricultural products or 10% for electric power supplies for listed uses and listed drugs. Specific supplies of goods and services are exempt from Vat, for example education, insurance services, specific financial services, supply, leasing of particular immovable property.

Italian corporate entities are subject to a corporate income tax, known as imposta sul reddito sulle società or IRES (24%), and to a regional production tax, known as imposta regionale sulle attività produttive or IRAP.

Italian individual income tax. Taxation of an individual's income in Italy is progressive. In other words, the higher the income, the higher the rate of tax payable.
In 2019 the tax rate for an individual is between 23%-43%, In addition to direct taxation (IRPEF), there is also a Lombardia regional tax of 1,23%-1,74% and a Milan municipal tax of 0,8%.

The Italian employer, in order to pay social security contributions for employees, must register with the Italian Social Security Administration (Instituto Nazionale Previdenza Sociale or INPS). Employer's charge is around 30%. Employee's charge is around 10%.

There are no laws in Italy regulating the frequency with which employees should be paid; in most cases, employers are expected to pay their employees on a monthly basis by the 27th of each month.

Despite the variances payment timelines, most employers in Italy universally provide a 13th month bonus to their employees, often paid in December.

A 40-hour workweek is standard in Italy and overtime applies to hours exceeding the 40-hour threshold, at a cap of 8 hours per week and 250 hours per year. Overtime rates and other wage considerations are stipulated under the collective agreements.

The minimum length of annual holiday leave is 4 weeks per year. Employees are entitled to 3 days paid sick leave, 5 months' maternity leave, and other potential leave options.

As of September 2019, the general unemployment rate in Italy is 9.9% and in Milan is 2.9%

COMPETITORS

What's on Culinary schools market?

There are several studios in Milan, which propose different open classes for adults and kids, some of them organize team buildings and private parties as well.

The price for 1 open course is about 80-90 euro. Some of these studios propose packages of 2-5 lessons.

The main cuisine is Italian, but there are also numerous Japanese classes (Sushi & Ramen). Some studios propose Chinese, Oriental and Thai cuisines.

There are also degustations of wines, beers, olive oils; cocktail master classes; market tours.

The prices are from 35 to 120 euro.

Main competitors

TOP 6 of culinary schools in Milan

La scuola de La cucina Italiana

Capacity: max 60 pax
Activities: open, corporate and private classes
Menu: 1-4 dishes
Average check: 90 euro