Team-C Elena, Anna, Raffa, David & Adrien

Social Entrepreneurship Barcelona, April 30th 2012 Team-C Elena, Anna, Raffa, David & Adrien

Design Thinking Methodology Barrio Solidario Key Learnings Agenda

Lacking experience, in the first round of the design thinking process we did not follow the steps in the right order Design thinking: 1st round Identifying Objectives Brainstorming Design Thinking Process Overview Designing Business Model Filtering Ideas Interviewing Agents Prototyping

Project Goals • Better manage food waste to feed those without access to proper meals • Create employment for people with less resources • Raise awareness on food waste Identifying Ovjectives

Brainstorming & Filtering Food waste capacity? Brainstorming & Filtering Low Cost? Social Impact? Engagement Power? Viability? Sustainability? • Kitchen Surfing • Food production plant using soon to be wasted vegetables as raw material • Clochard identification system • Food measure re-engineering ISO 007 • Re-balancing point in wealthy areas • Kitchen in supermarkets • B2B Platform linking mass food waste sources with mass canteens services

We developed the basic pillars of our chosen idea… The idea: Food Cycle 2.0 Online Platform, eBay style Cost-Saving Solution Filtering (1/2) Tackling food waste Efficiency gains in distribution Dr. Adrien van der Weid

…and created a concept for «Food Cycle 2.0» Food Production Farmers Wholesalers Retailers Customers Food manufacturing Restaurant, canteen, etc. We will do this Leftovers, Surplus, Unprocessed-, Older Food = Waste Filtering (2/2) = Food Goal bring waste food back into the economic cycle How Upcoming usable waste food is put on website » Other companies can bid/buy»Pick up & delivery by our - former unemployed - workers (possibly paid with a % of the price) Idea Build a platform to bring together producers (with food waste) and large consumers of food interested in cheap sources or in having a positive environmental impact

Then we made prototypes for Food Cycle 2.0 both as web platform and smartphone app… Prototyping

…but in the interviews we learned that restaurants were not receptive to our idea Pizzeria San Marino “I really feel bad about food waste because I come from the most humble roots. […] No, I would not use the platform as we have our traditional suppliers, our well established processes and we appreciate the quality products we receive.“ Interviewing (1/3): Some remarks José, pizzeria owner Restaurante El Gallego “ I’m not concerned with the food waste produced by the restaurant. What we throw away cannot be eaten ” Javier, restaurant owner

Unilever – Igone Bartumeu • Food wasted at marketing, sales & logistics stages • Waste from Unilever is in both food and household goods • Majority of food waste is given to Food Banks • Selling Charity • Food Banks cannot take on all the food because of: • Capacity reasons (e.g. not enough fridges) • Insufficient number of organizations available to take food from them • Community project already existing • Suggest to make donations easier • Recommend to involve authorities • ARAMARK – Manager • Limit waste by planning correct amount of food that will be consumed daily • Soon to be wasted food cannot be purchased because of hygienic reasons • Suppliers are chosen by the holding company ✗ ✓ Interviewing (2/3): detailed insights • RESTAURANTS • Desire to help poor people • Routine with traditional suppliers and established processes • Impossibility to sell and buy food close to the expiration date • Necessity to follow public health requirements

We realised that our idea will not be successful as we have... • Producers and shops rather want to give the food as charity than to sell it for a cheap price • Small food providers would not pay and distribution and logistics costs • Restaurants don‘t dare or don‘t want to use our platform • Large caterers cannot use the platform Interviewing (3/3): Conclusions ✗ No sellers Problem with logistics No buyers in the B2B model ✗ ✗ ...but there was awareness, so we went on, had ideas... make it B2C? make it local? make it non-commercial?

…and realized we did mistakes in the process in the first round. ✗ So we finally adopted the correct process and started… Identifying Objectives Brainstorming Designing Business Model Filtering Ideas Design thinking: 2nd round Interviewing Agents Prototyping Identifying Objectives 1st Interviewing & collect insights Realization of mistake Design Business Model Done in 1st round Done in 1st round Brainstorming Testing prototype through interviews ✓ Filtering Prototyping design

Following the insights collected in the interviews, we developed our persona Persona: Tarik Singh Nationality: Pakistani Age: 32 years old Status: Single Domicile: Spain, Barcelona, Gracia Family: moved to Europe with his parents, brothers and sister Education: private tuition Previous work experience: casual jobs such as delivery guy, plumber Actual job: greengrocer Values: Family, Dignity, Solidarity Brainstorming

Following a new filtering process, we chose and developed a new idea and designed the respective prototype Idea Idea will be elaborated in the Business Model Canvas section Prototype Filtering & Prototyping

In a second round of interviews our concept was better received. So we went on with it... • ORGANIC SHOP – BIO SI • Left overs are given to employees or customers • MEAT SHOP – SARROCA • Food waste is thrown because of strict sanitary rules • It is easy to throw food waste away. Any other solution must be even easier in order to work. • GREENGROCERS • TENTACION FRUITS • Minimal waste • Left overs are sold at discount or given to homeless people • SPAR GROCERY STORE • Waste comes from dairy products • NOT willing to buy almost expired food due to hygienic issue • FRUITES GRACIA • Damaged fruits and vegetables are thrown away • 2 boxes of fresh food wasted every day • “it would be better to give wasted food to people who don’t have anything than to throw it away. But it is difficult!” Testing Prototype – key insights • RESTAURANTS • Impossible to re-use left overs • Hygienic legal restrictions • No cost in waste management • SMALL SUPERMARKETS • Orders are made according to customers needs  no waste • Sensibility to waste issue • Mainly regular customers

Design Thinking Methodology • Barrio Solidario • Concept & Mission Statement • Business Model Canvas • Key Success Factors • Pilot • Scaling-up • Objectives’ check • Key Learnings Agenda

Barrio Solidario seeks to channel waste generated from food providers to households living in poverty • Users (underprivileged households) adhere to the program either by buying food vouchers for gaining them by serving for BarSol mission. BarSol sends vouchers by mail • Users present vouchersto adhering food providers (supermarkets, specialized food shops, restaurants etc.) in exchange of food that would otherwise go to waste • Regular customers donate food they would waste from home to food providers • Food providers return vouchers toBarrio Solidario. How it works 1 Barrio Solidario The Concept 2 1 4 Food Providers Users 3 2 3 4 Regular customers

Barrio Solidario has developed its vision, mission and set of values to focus its operations Values Vision • Solidarity • Excellence • Ambition To achieve solidal barrios in Spain where no edible food is wasted, and no family goes hungry Statement of vision, mission and values Mission Bringing poor families and food providers in the same programme to ensure that edible food produced is accessible at affordable prices

The business model will be described according to the business canvas framework The Business Canvas CUSTOMER RELATIONSHIPS KEY ACTIVITIES Business Canvas framework KEY PARTNERS VALUE PROPOSITION CUSTOMER SEGMENTS KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS

Our Customers are… • Interested in very cheap but diverse food • Preferring to pay a symbolic price rather than receiving donations • Not minding variations in how much food and where from • Aligned with our values Residents of Gracia People living below the poverty line of 650€ income per month Customer Segments Of the 123.000 inhabitants of Gracia an estimated 10% live below the poverty line (23% in whole Barcelona). One quarter might be interested in our service, making it around… mostly immigrants, elderly people, and long-term unemployed. … 3000 potential users

A triple value will be created for underprivileged households, the food providers and society Underprivileged Households • Cheap food • “Dignity” from avoidance of charity • Diversity of food • Integration in barrio • Reduction of waste • Support to poor households • Fostering of community feeling Value Proposition VALUE ADDED Food Providers & other customers Society • Gratification • Integration in barrio • Enhanced marketing

Households will be reached through several channels to create awareness, enable the sign-up and deliver value 9 channels for households Awareness Sign-up Value delivery Brochures Learn of BarSol from brochures located in strategic touch points Website Learn of programme from online platform Word-of-mouth Referral from other members of the community Website Purchase vouchers from online platform Mail Possibility to purchase vouchers via mail Telephone Possibility to purchase vouchers via telephone Mail Vouchers and service brochure delivered via mail Direct Contact BarSol representative to introduce new users to closest providers Website Available providers and collection times indicated on website Channels (1/2)

Also the food providers will be reached via multiple channels to guarantee easy access to the service 8 channels for Providers Awareness Sign-up Value delivery Direct contact Approached directly by the BarSol“sales” team Website Learn of programme from online platform Word-of-mouth Referral from other members of the community E-mail If interested to join, can contact BarSol via e-mail Telephone If interested to join can contact BarSol via telephone Direct contact BarSol to meet provider rep to finalize sign-up Website Details of the provider reported on online platform Direct Contact BarSol rep to introduce users to providers and to make periodic visits Channels (2/2)

Barrio Solidario wants to build a barrio network of associated food providers and clients • Provide information in various forms and languages • Introduce users to providers and other users • Regular contact through payment/community service • Check elegibility Customer Relationships (1/2) • Build a network between users for them to exchange experiences and better integrate • Community service: introduce new users • Word-of-Mouth

Barrio Solidario wants to build a barrio network of associated food providers and clients • Personal relation and information exchange • Regular visits • Create Visibility: stickers, posters, badges • Engage providers through awards Customer Relationships (2/2) • Raise awareness • Include society in project through donation box and information • Provide way to reduce food waste in homes • Build trust and personal relationships • Shops/restaurants may receive community service from the users

Barrio Solidario will have to engage in three key sets of key activities to deliver its service 3 2 1 Key Activities Management & back-office activities Engagement of potential providers Contact with programme members • Visit potential food providers and present advantages of the programme • Conduct sign-up meetings • Web management • Management of mail • Analysis of service usage • Introduce new users to providers • Conduct periodic visits to providers

Barrio Solidario will start as a lean business with as little resources as possible Design + Development Home Office 1 FTE • 40% Management and Administrative capacity • 60% Sales and account management + + Key Resources + Funding Network +

Three types of key partners will have to be engaged to carry out the operations • Provide regular supplies of excess food • Collect waste from other regular customers Food Providers • Provide funding for early stage activities Key Partners Key Partners Key Partners Funders Community leaders • Spread awareness • Foster community spirit

The upfront costs to set up operations will be minimal, and operational costs will amount to about 1,700€ / month Capex • Incorporation of the company • Website with basic functions €1,000 €0 Cost Structure Opex • 1 FTE gross salary • Administrative overhead (mail, print etc.) €1,500 / mo. €200 / mo.

The major source of revenues to sustain operations will be raised from donations and subventions 2 1 Revenue Streams Voucher payments Donations and subsidies • To cover up-front of costs • Sources: • Government subsidies • Individual donations • Philanthropists €1 per voucher x 7.5 vouchers per month for average user €7.5 per user per month = Revenues

We understand that the realization of the described business model rests on a set of key success factors Matching Financing Build-up of network to raise sufficient funds Match demand for each provider with his respective food on offer Key Success Factors Trust building Ability to encourage community feeling and foster trust-based relationships

The Pilot • Duration: 2 months • Area: Vila de Gràcia • # Providers: 10 Small fruit & vegetable stores, provide up to 4 portions of food per work day • Max. # users: 180 users, buying 1.5 portions per week • Expected # users: 50, buying 1.5 portions per week • Revenue from vouchers: 300€ per month • Restriction: No community service, No professional design and development • Staff needed: max. 1 FTE • Costs: • Incorporation: Postponed • Staff: 5 Founders work for 0€ • G&A: 100€ per month • = 200€ in total •  400€ profits, to be saved for the incorporation expenses The Pilot

We have identified a set of next steps that must be undertaken in order to set-up the pilot Refine insights on service user Define terms and conditions for providers 1 2 Set up communication channels, finalize beta version of web platform 2 Scaling-up Strategy (1/2) Engage a limited number of first users Engage providers 4 3 Start creating a better world 5

In order to scale-up properly we have to check if the model is transferable and then find a promising strategy. Is the model transferable? Yes, Transferable 1 How can the five R‘s be answered? (Experience from Pilot needed) 2 Scaling-up Strategy (2/2) In which form should we scale up? Expectedly: Progam model 3 Which mechanism should be used? Expectedly: Dissemination 4

From Barcelona to… Expand to whole Gracia Gracia Duplicate the model in other barrios with high poverty Scaling-up geographically Besòs Maresme El Raval Poble Sec Replicate the model all over… Barceloneta Spain

Objectives’ check Objectives Check Provide channel to food establishments and households to offer excess food to those without access to proper meals «Better manage food waste to feed those without access to proper meals» Objectives’ Check Provide limited opportunities of employment once the business scales up to other barrios «Create employment for people with less resources» Visibility of badges, collection of monetary / food donations, and word-of-mouth builds awareness «Raise awareness on food waste » • Barrio Solidario meets all required objectives

Design Thinking Methodology Barrio Solidario Key Learnings Agenda

Key learnings • Stick to the Design Thinking Process! Interviews are important to gain insights about the potential users and understand their issues. • After the first engagement interviews are easier than they seem… What did we learn?? • Be ready to iterate the process and modify your original idea! • During the interview process make sure to use your POV as a reference but at the same time to gain insights from other stakeholders with different points of view!

¡Gracias! Please visit us on barriosolidario.wordpress.com

Team-C Elena, Anna, Raffa, David & Adrien