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1. Industry Overview
Snack bars belong to the snacks and coffee shop industry and this industry is made up of
establishments that prepare or serve specialty snacks and nonalcoholic beverages including ice
cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies and sodas et al. Please
note that purchases may be consumed on site, taken to go or delivered.
A close watch of happenings in this industry shows that the Coffee and Snack Shops industry has
been sustained by increased consumer spending, which was driven by higher disposable income
and greater confidence in the economy.
Demand for coffee and snack shops has increased at a faster rate than most segments of the food
service sector as consumers increasingly seek convenience at an affordable price. Major
operators are expected to expand their menus in the nearest future to increase sales and profit
margins. This expansion includes more offerings of nontraditional, high-margin menu items such
as iced coffee drinks, breakfast items and wraps.
A report published by IBISWORLD shows that The Coffee and Snack Shops industry has a
medium level of capital intensity, and in 2017, IBISWorld estimated that for every $1.00 spent
on wages, industry operators will spend $0.13 on the use and replacement of capital.
This industry relies heavily on labor because of the need for personal, face-to-face service and
labor input in all areas of operation including order taking, serving, food and beverage
preparation, acceptance of deliveries, cleaning and management. The report further stated that
the industry’s overall spend on labor is relatively low as most positions within coffee and snack
shops require little training or skills and can be undertaken by students or other low-skilled
workers.
The Snacks and Coffee Shops industry is a thriving sector of the economy of Canada, the united
states of America and in most countries in Europe and Asia. In the United States of America, the
snacks and coffee shops industry generates over $40 billion annually from more than 76,960
registered snacks and coffee shops scattered all around the United States of America.
The industry is responsible for the employment of over 717,961 people. Experts project the
industry to grow at a 3.7 percent annual rate between 2011 and 2016. Dunkin’ Brands,
Smithfield Foods and Tyson Foods are the leaders in the snacks and coffee industry.
The Snack and Coffee Shops industry has minimal barriers to entry, with low startup capital and
no specific licensing requirements. On the other hand, the high level of competition and market
saturation in a declining industry can prove challenging to aspiring entrepreneurs who want to
start their own snack bar. Most players in the snack and coffee shop line of business are small to
medium sized establishments that cater to the local community.
The snack and coffee shops industry is a profitable industry and it is open for any aspiring
entrepreneur to come in and establish his or her business; you can choose to start on a small scale
in a street corner like the average mom and pop business or you can choose to start on a large
scale with several outlets in key cities.
2. Executive Summary
Don Albertini® Snack Bar, LLC is a registered snack and coffee bar that will be located along
one of the busiest roads in Montgomery – Alabama. We have been able to lease a facility along a
major road that is big enough to fit into the design of the kind of snack bar that we intend
launching and the facility is located in a corner piece directly opposite the largest residential
estate in Montgomery – Alabama.
Don Albertini® Snack Bar, LLC will be involved in preparing and serving specialty snacks and
nonalcoholic beverages including ice cream, frozen yogurt, cookies, donuts, bagels, coffee,
juices, smoothies and sodas et al.
We know that that there are several snack bars and related businesses all around Montgomery –
Alabama which is why we spent time and resources to conduct our feasibility studies and market
survey so as to offer much more than our competitors will be offering. We have self – service
options for our customers, and our outlet has various payment options.
We are aware of the trend in the snack and coffee shops industry and we are not only going to
operate a system where our customers would have to come to our snack bar to make purchase
and eat or whatever they want, but we will also operate an online store where our customers can
place orders for our products online and they will get it delivered to their houses or any location
they want us to deliver the purchase to within Montgomery – Alabama.
Don Albertini® Snack Bar, LLC will at all times demonstrate her commitment to sustainability,
both individually and as a firm, by actively participating in our communities and integrating
sustainable business practices wherever possible. We will ensure that we hold ourselves
accountable to the highest standards by meeting our client’s needs precisely and completely.
Our plan is to position the business to become one of the leading brands in the snack and coffee
shops industry in the whole of Montgomery – Alabama, and also to be amongst the top 20 snack
bars in the United States of America within our first 10 years of operation.
This might look too tall a dream but we are optimistic that this will surely be realized because we
have done our research and feasibility studies and we are confident that Montgomery is the right
place to launch our snack bar before opening our chains of outlets all across major cities in the
United States of America.
Don Albertini® Snack Bar, LLC is a family business that is owned by Donald Albertini and his
immediate family members. Donald Albertini is a snack specialist, he has a B.Sc. in Food
Science and a Diploma in Business Administration, with over 10 years’ experience in the
restaurant and fast food industry.
Although the business is launching out with just one outlet in Montgomery – Alabama, but there
is a plan to open other outlets all around Alabama and in other key cities in the United States of
America.
3. Our Products and Services
Don Albertini® Snack Bar, LLC is in the industry to make profits and we will ensure we go all
the way to make available a wide variety of snacks and nonalcoholic drinks to our clients. We
are prepared to make profits from the industry and we will do all that is permitted by the law in
the United States to achieve our business goals and objectives.
Our product and service offerings are listed below;
Snack foods such as potato and corn chips, pretzels, roasted and salted nuts, nut butters,
popcorn and other similar snacks
Hot dogs
Sausage
Coffee
Soft Drinks
Our vision is to become the leading snack bar in Montgomery – Alabama and in other
cities in the United States of America.
Our mission is to establish a snack bar that will make available a wide variety of snacks
and nonalcoholic drinks at affordable prices to the residents of Montgomery – Alabama
and other cities in the United States of America where we intend opening chains of snack
bars.
Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating
new products.
Ensures operation of equipment by completing preventive maintenance requirements;
calling for repairs
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office activities.
Bar Manager:
Responsible for managing the daily activities in the snack bar (kitchen inclusive)
Ensures that the bar facility is in tip top shape and conducive enough to welcome
customers
Reports to the Chief Executive Officer
Attends to Customers complains and enquiries
Snack Makers
Makes snacks such as potato and corn chips, pretzels, roasted and salted nuts, nut butters,
popcorn and other similar snacks as supervised by the kitchen supervisor
Responsible for carrying out all casual or unskilled jobs in the bar and kitchen
Responsible for packaging snacks meant for delivery
Handles any other duty as assigned by the snack bar manager
Manages external research and coordinate all the internal sources of information to retain
the organizations’ best customers and attract new ones
Models demographic information and analyze the volumes of transactional data generated
by customer purchases
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of
development projects.
Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
Develops, executes and evaluates new plans for increasing sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Information Technologist
Accountant/Cashier:
Responsible for preparing financial reports, budgets, and financial statements for the
organization
Provides managements with financial analyses, development budgets, and accounting
reports; analyzes financial feasibility for the most complex proposed projects; conducts
market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization
Waiters/Waitress:
Van Drivers:
Cleaners:
6. SWOT Analysis
Our plan of starting with just one outlet of our snack bar in Montgomery – Alabama is to test run
the business for a period of 3 to 5 years to know if we will invest more money, expand the
business and then open other outlets all over Alabama and key cities in the United States.
We are quite aware that there are several snack bars and similar businesses all over Montgomery
– Alabama and even in the same location where we intend locating ours, which is why we are
following the due process of establishing a business.
We know that if proper SWOT analysis is conducted for our business, we will be able to position
our business to maximize our strength, leverage on the opportunities that will be available to us,
mitigate our risks and be equipped to confront our threats.
Don Albertini® Snack Bar, LLC employed the services of an expert HR and Business Analyst
with bias in the restaurant and fast food line of business to help us conduct a SWOT analysis and
to help us create a Business model that will help us achieve our business goals.
This is the summary of the SWOT analysis that was conducted for Don Albertini® Snack Bar,
LLC;
Strength:
Our location, the business model we will be operating, varieties of payment options, wide
varieties of snacks and nonalcoholic drinks and our excellent customer service culture will
definitely count as a strong strength for Don Albertini® Snack Bar, LLC. So also, we have a
management team that has what it takes to grow a new business to profitability within a record
time.
Weakness:
A major weakness that may count against us is the fact that we are a new snack bar and we don’t
have the financial capacity to compete with multi – million dollars’ chains of snack and coffee
shops like Smithfield Foods and Tyson Foods et al.
Opportunities:
The fact that we are going to be operating our snack bar in one of the busiest streets in
Montgomery – Alabama, provides us with unlimited opportunities to sell our products to a large
number of people. We have been able to conduct thorough feasibility studies and market survey
and we know what our potential clients will be looking for when they visit our snack bar; we are
well positioned to take on the opportunities that will come our way.
Threat:
Just like any other business, one of the major threats that we are likely going to face is economic
downturn. It is a fact that economic downturn affects purchasing / spending power. Another
threat that may likely confront us is the arrival of a new snack bar or fast food restaurant in the
same location where ours is located.
7. MARKET ANALYSIS
Market Trends
One of the obvious trends in the snack and coffee industry is that the industry has experienced a
boost by rebounds in consumer spending and retailers have expanded the number of low-calorie
options due to rising health consciousness. The industry’s high level of competition is expected
to intensify in the coming years.
In this era when the online community is growing rapidly, you would do your snack bar business
a whole lot of favor if you create your own online presence. One of the easiest ways to get
people to see you as an expert in your line of business is to blog constantly about snacks.
You may also want to leverage on social media platforms like Instagram, Facebook, and Twitter,
and others to publicize your snack bar. You can as well go ahead to open an online snack bar
where people can place orders from your shop. You must ensure that your delivery system is
efficient if you intend to do well with your online sandwich shop.
So also, snack bars have created new menu options that capitalize on the trend of increasing
awareness for the health risks associated with high – fat diets. The industry has also thrived by
developing products at price points attractive enough to weather the slow economic recovery,
resulting in strong revenue growth.
8. Our Target Market
We have positioned our snack bar to service the residents of Montgomery – Alabama and every
other location where our chains of snack bars will be located in key cities all over the United
States of America. We have conducted our market research and we have ideas of what our target
market would be expecting from us.
We are in business to retail wide varieties of snacks and nonalcoholic drinks to the following
groups of people;
Event Planners
Vegetarians
Corporate Organizations
Households
Schools
Corporate Executives
Business People
Sports Men and Women
Students
Tourists
Sources of Income
Don Albertini® Snack Bar, LLC is in business to retail a wide variety of snacks and
nonalcoholic drinks to the residents of Montgomery – Alabama. We are in the snack and coffee
shop industry to maximize profits and we are going to go all the way out to ensure that we
achieve or business goals and objectives.
In essence, our source of income will be the retailing of the following products at affordable
prices;
Snack foods such as potato and corn chips, pretzels, roasted and salted nuts, nut butters,
popcorn and other similar snacks
Hot dogs
Sausage
Coffee
Soft Drinks
N.B: This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major
competitor offering same products as we do within the same location. Please note that the above
projection might be lower and at the same time it might be higher.
Before choosing a location for Don Albertini® Snack Bar, LLC, we conduct a thorough market
survey and feasibility studies in order for us to penetrate the available market and become the
preferred choice for residents of Montgomery – Alabama. We have detailed information and data
that we were able to utilize to structure our business to attract the number of customers we want
to attract per time.
We hired experts who have a good understanding of the snack and coffee shops industry to help
us develop marketing strategies that will help us achieve our business goal of winning a large
percentage of the available market in Montgomery – Alabama.
In summary, Don Albertini® Snack Bar, LLC will adopt the following sales and marketing
approach to win customers over;
Open our snack bar in a grand style with a party for all.
Introduce our snack bar business by sending introductory letters alongside our brochure to
corporate organizations, schools, event planners, households and key stake holders in
Montgomery – Alabama
Ensure that we make wide varieties of snacks, coffee and nonalcoholic drinks in our bar at
all times.
Make use of attractive hand bills to create awareness and also to give direction to our
snack bar
Position our signage/flexi banners at strategic places all around Montgomery – Alabama
Position our greeters to welcome and direct potential customers
Create a loyalty plan that will enable us reward our regular customers
Engage on roadshows within our neighborhood to create awareness for our snack bar.
11. Publicity and Advertising Strategy
Despite the fact that our snack bar is well located, we will still go ahead to intensify publicity for
the business. We are going to explore all available means to promote Don Albertini® Snack Bar,
LLC.
Don Albertini® Snack Bar, LLC has a long – term plan of opening chains of snack bars in
various locations all around Alabama and key cities in the United States which is why we will
deliberately build our brand to be well accepted in Montgomery before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers
over but to effectively communicate our brand. Here are the platforms we intend leveraging on to
promote and advertise Don Albertini® Snack Bar, LLC;
Payment Options
The payment policy adopted by Don Albertini® Snack Bar, LLC is all inclusive because we are
quite aware that different customers prefer different payment options as it suits them but at the
same time, we will ensure that we abide by the financial rules and regulation of the United States
of America.
Here are the payment options that Don Albertini® Snack Bar, LLC will make available to her
clients;
In view of the above, we have chosen banking platforms that will enable our client make
payment for snacks and nonalcoholic drinks purchase without any stress on their part. Our bank
account numbers will be made available on our website and promotional materials to clients who
may want to deposit cash or make online transfer for the purchase of our products.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting a place, then you would need a good amount of
capital as you would need to ensure that your employees are well taken care of, and that your
facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost analysis
for starting a snack bar business; it might differ in other countries due to the value of their
money. These are the key areas where we will spend our startup capital;
The total fee for registering the business in the United States of America – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – $1,300.
Marketing promotion expenses for the grand opening of Don Albertini® Snack Bar, LLC
in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for
the total amount of – $3,580.
The cost for hiring Business Consultant – $2,500.
The cost for insurance (general liability, workers’ compensation and property casualty)
coverage at a total premium – $2,400.
The cost for payment of rent for 12 months at $1.76 per square feet in the total amount
of $105,600.
The cost for construction of a standard snack bar and kitchen – $100,000.
Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al)
– $100,000
The cost for start-up inventory (supply of coffee, sodas, bottled water, flours, sugar, butter
and other snacks making ingredients and packaging materials) – $80,000
Storage hardware (bins, rack, shelves, food case) – $3,720
The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost of purchase of delivery vans – $50,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs,
Sound System, tables and chairs et al) – $4,000.
The cost of launching a website – $600
The cost for our opening party – $10,000
Miscellaneous – $10,000
We would need an estimate of two hundred and fifty thousand dollars ($250,000) to successfully
set up our snack bar in the United States of America.
Generating Startup Capital for Don Albertini® Snack Bar, LLC
Don Albertini® Snack Bar, LLC is a private business that is solely owned and financed by
Donald Albertini and his immediate family members. They do not intend to welcome any
external business partners which is why he has decided to restrict the sourcing of the startup
capital to 3 major sources.
These are the areas we intend generating our startup capital;
N.B: We have been able to generate about $50,000 (Personal savings $30,000 and soft loan from
family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000
from the bank. All the papers and documents have been signed and submitted, the loan has been
approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and
competence of their employees, their investment strategy and business structure. If all of these
factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Don Albertini® Snack Bar, LLC is to build a business that
will survive off its own cash flow without the need for injecting finance from external sources
once the business is officially running. We know that one of the ways of gaining approval and
winning customers over is to retail our products a little bit cheaper than what is obtainable in the
market and we are well prepared to survive on lower profit margin for a while.
Don Albertini® Snack Bar, LLC will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater heights and training and re training
of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands
we can get in the industry; they will be more committed to help us build the business of our
dreams.
Check List/Milestone
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