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Cookie Shop Business Plan [Sample Template]

Running a cookie shop can prove to be a rewarding experience, not only for you but also for your customers. This sort of business involves selling cookies as well as other baked goods.

However, note that your success in this line of business will more or less depend on your ability to make delicious treats and create a welcoming atmosphere for your customers. Read on to understand the process of developing and launching a successful cookie shop in the United States.

Steps on How to Write a Cookie Shop Business Plan

  1. Executive Summary

Grandma’s Recipe is an exciting and splendid cookie shop that will be established in 2024 in the streets of Knoxville, Tennessee. We intend to focus on providing a delicious array of handcrafted cookies inspired by time-honored family recipes.

To be built and operated in the heart of the community, Grandma’s Recipe will always strive to provide a warm, nostalgic atmosphere where our customers can enjoy freshly baked treats made with love.

With our eagerness and dedication to quality ingredients, personalized customer service, as well as the flamboyance of grandma’s secret touch, our shop will grow to become the preferred location for locals who want a mind-blowing escape into the world of compelling mouth-watering cookies.

  1. Company Profile

a. Our Products and Services

Grandma’s Recipe intends to wow our clients with a wide selection of freshly baked, artisanal cookies crafted from flavorsome family recipes.

Our menu will include a wide range of compelling classic favorites, creative flavor combinations, and well-known seasonal delights, guaranteeing a treat for every palate.

Aside from our signature cookies, Grandma’s Recipe will also provide personalized cookie gift boxes, and catering services for special events, in addition to a cool and relaxing ambiance for customers to relish cookies with a cup of locally sourced coffee or milk.

b. Nature of the Business

Our intention at Grandma’s Recipe is to start a customer-centric business model, where we strive every day to offer top-quality, freshly baked cookies with an evocative touch.

We will be generating revenue from direct sales at our storefront in Knoxville, Tennessee, in addition to online orders for local delivery and statewide shipping.

We will also offer catering services for events as well as accurately customized cookie gift boxes, providing additional avenues for growth.

To further bolster customer engagement, Grandma’s Recipe will put up a loyalty program while also taking part in community events.

c. The Industry

Grandma’s Recipe will be part of the US food and beverage industry, focusing on the artisanal cookie market. Will be offering handcrafted, high-quality cookies.

d. Mission Statement

At Grandma’s Recipe, our mission is to always delight our community with the flamboyance and warmth of homemade goodness, baking artisanal cookies that bring back loving and exciting memories while also creating new moments of joy.

At Grandma’s Recipe, we will always work to preserve the tradition of genuine hospitality, ensuring that every bite is accompanied by love and care.

e. Vision Statement

At Grandma’s Recipe, our vision is to become a beloved national brand well-known for the undiluted joy of indulging in timeless, handcrafted cookies.

We plan to become that beacon of nostalgia, making sure that we guarantee happiness and satisfaction, while steadily innovating and expanding our reach to broaden the love of Grandma’s Recipe with cookie lovers all over the United States.

f. Tagline or Slogan

“Grandma’s Recipe: A Place Where Every Bite Feels Like a Hug from Grandma!”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Grandma’s Recipe will first be registered as a Limited Liability Company in Tennessee. As the business grows and expands, we intend to switch to the S Corp to issue common stock and offer voting rights to potential shareholders.

h. Organizational Structure
  • President
  • Head Baker
  • Customer Service Specialist
  • Sales and Marketing Coordinator
  • Event Coordinator (Catering Specialist)
  • Store Manager
i. Ownership/Shareholder Structure and Board Members

Grandma’s Recipe will be registered as a Limited liability company but will convert to an S Corp with a share capital of $4,000,000.

Grandma’s Recipe will be managed by two partners: Benjamin Sutton who holds 59% of the shares and Martha Green who holds 41% of the shares.

  1. SWOT Analysis

a. Strength
  • Making use of time-honored recipes passed down through generations for exceptional and mind-blowing cookies.
  • Establishing a valid emotional connection with clients through a warm and familiar brand image.
  • Reiterating the artisanal, homemade nature of the cookies to differentiate from mass-produced alternatives vastly available in the United States
b. Weaknesses
  • Currently limited to just Knoxville, and this can prove to be a challenge especially when considering market saturation and growth potential.
  • Over-reliance on seasonal flavors might lead to fluctuations in demand during certain times of the year.
c. Opportunities
  • Leveraging e-commerce to expand our reach and cater to a broader audience not within our local market while also exploring nationwide shipping.
  • Establishing concrete and viable alliances with local businesses, cafes, or event planners to boost distribution and enhance brand visibility.
i. How Big is the Industry?

According to industry reports, the US cookies market generated around $11 billion in 2021 and has witnessed steady and exciting growth in recent times.

ii. Is the Industry Growing or Declining?

According to reports, the industry is expected to grow more than 3% annually through 2027.

 iii. What are the Future Trends in the Industry?

According to experts and industry reports, below are top trends to take into account;

  • It is believed that the industry is moving toward healthier cookie, biscuit, and snack options, such as natural ingredients, whole wheat, low-calorie sweeteners, and gluten-free
  • The industry has also witnessed fast-growing interest in ready-to-bake products as represented by a 20% growth in the refrigerated cookie as well as the brownie dough segment and a massive 86% growth in the frozen cookie dough segment
  • There is also a massive growth in the seasonal and limited edition cookies segments, and this makes it possible for producers to leverage holidays such as Halloween, Easter, and the Christmas season to offer enticing products and increase sales.
iv. Are There Existing Niches in the Industry?
  • Specialty Diet Cookies.
  • Gourmet Ingredients
  • Customizable Cookies
  • Health-Conscious Cookies
  • Seasonal and Limited Editions
  • Subscription Boxes
  • Catering and Events
  • Cultural Fusion Cookies
  • Miniature or Bite-sized Cookies
  • Interactive DIY Cookie Kits
v. Can You Sell a Franchise of Your Business in the Future?

Yes, we intend to consider a franchise model for Grandma’s Recipe in the future. We believe in the abilities of our management, staff, and products to build a strong brand presence, a proven and replicable operational model, as well as a loyal customer base.

This simply entails that franchising can become a valid option for expansion. This will enable willing entrepreneurs to invest in and operate their own Grandma’s Recipe cookie shops, sustaining and maintaining the brand standards and recipes while also benefiting from the nationally recognized success of the original business.

d. Threats
  • Having to deal with competition from established bakeries and emerging trends in the dessert industry.
  • Every present change in the prices of quality ingredients will most definitely impact profit margins.
  • Potential reduction in consumer spending owing to economic downturns affecting discretionary purchases like artisanal cookies.
i. Who are the Major Competitors?
  • Local Bakeries
  • National Chains
  • Specialty Cookie Shops
  • Grocery Store Bakeries
  • Online Artisanal Bakeries
ii. Is There a Franchise for the Cookie Shop Business?

Yes, there are numerous cookie shop franchises in the United States, such as;

  • Insomnia Cookies: $65,600-$111,400
  • Great American Cookies: $160,500 to $461,135.
  • Fields: $255,995 to $415,500
  • Nestlé Toll House Café by Chip: $145,400 to $499,100.
  • Tiff’s Treats: $121,000-$260,000
iii. Are There Policies, Regulations, or Zoning Laws Affecting Cookie Shop Business?

Note that every place is different, and your city/town may not require the same things as another. It falls on you as a business owner to understand developments, restrictions, and changes that impact your desired location.

Having a comprehensive insight into the zoning code of your neighborhood of choice will help determine your next move.

  1. Marketing Plan

a. Who is your target audience?
i. Age range
  • Cookie Enthusiasts (60%)
  • Families and Kids (20%)
  • Gift Shoppers (10%)
  • Event Planners and Catering (5%)
  • Health-Conscious Consumers (5%)
ii. Level of Educational
  • High School Graduates (30%)
  • College Students (25%)
  • College Graduates (35%)
  • Professional Certification (5%)
  • Postgraduate Degrees (5%)
iii. Income Level
  • Lower Income (10%)
  • Middle Income (60%)
  • Upper Middle Income (25%)
  • Higher Income (5%)
iv. Ethnicity
  • White/Caucasian
  • African American/Black
  • Hispanic/Latino
  • Asian
  • Native American
v. Language

There are no language barriers or restrictions at Grandma’s Recipe.

vi. Geographical Location

Although our location of choice might not be as popular as the others where a cookie shop can survive, note that it is renowned as the gateway to the Great Smoky Mountains National Park, known to welcome over 11 million visitors each year. This creates a substantial target market for our cookie shop.

vii. Lifestyle
  • Community Engagement
  • Family-Centric
  • Educational and Professional Pursuits
  • Appreciation for Tradition
  • Health-Conscious Choices
b. Advertising and Promotion Strategies
  • Social Media Campaigns
  • Loyalty Programs
  • Seasonal Promotions
  • Collaborations and Partnership
  • Online Presence and E-commerce
  • Tasting Events and Samplings
  • Email Marketing
  • Referral Programs
  • Local Sponsorships
  • Interactive Social Challenges
  • In-Store Promotions
i. Traditional Marketing Strategies
  • Print Advertising
  • Direct Mail Campaigns
  • Radio Advertisements
  • Billboard Advertising
  • Local Event Sponsorships
  • Flyer Distribution
  • Television Commercials
  • Participation in Local Parades
  • Community Outreach Programs
  • Local Business Directories
ii. Digital Marketing Strategies
  • Search Engine Optimization (SEO)
  • Content Marketing
  • Social Media Advertising
  • Google Ads Campaigns
  • Email Marketing Automation
  • Influencer Marketing
  • Online Reviews and Testimonials
  • Mobile Marketing
  • Video Marketing
  • Social Media Engagement
  • Geo-targeted Ads
iii. Social Media Marketing Plan
  • Platform Selection
  • Content Calendar
  • Visual Content Creation
  • Engagement Strategies
  • Hashtag Campaigns
  • Influencer Collaborations
  • Contests and Giveaways
  • Behind-the-Scenes Content
  • Customer Spotlights
  • Local Community Engagement
  • Paid Advertising
  • Analytics and Optimization
c. Pricing Strategy

At Grandma’s Recipe, we intend to adopt a competitive pricing strategy, while also providing our customers with a wide array of delectable artisanal cookies at prices that buttress the top quality and handmade nature of our treats. Also, note that our pricing tiers will be well arranged to accommodate numerous customer budgets.

Aside from that, seasonal promotions coupled with loyalty programs will ensure customers have the opportunity to take part or enjoy our signature cookies at special rates. We intend to create a transparent pricing model to guarantee that customers understand the value of each bite.

  1. Sales and Distribution Plan

a. Sales Channels

The plan is to put up a multifaceted sales strategy that brings together an enticing in-store experience with a strategic online presence.

Keep in mind that the inviting atmosphere of our cookie shop in Knoxville, Tennessee, aligns with the hands-on approach of well-experienced staff who have to communicate with customers.

Aside from direct sales at the storefront, also note that our online platform guarantees seamless ordering for local delivery and nationwide shipping, further extending our reach outside the immediate community.

Our sales strategy at Grandma’s Recipe will focus on personalized customer interactions, guaranteeing a loving and exciting experience regardless of whether they visit our physical store or explore our offerings online.

b. Inventory Strategy
  • Diverse Cookie Selection
  • Freshness and Quality Assurance
  • Limited Batch Specials
  • Inventory Management Software
  • Seasonal Planning
  • Supplier Relationships
  • Customized Gift Boxes
  • Regular Audits and Quality Checks
  • Storage and Display
c. Payment Options for Customers

Below are the payment options we intend to make available to our customers at Grandma’s Recipe.

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards/Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Return Policy, Incentives and Guarantees

At Grandma’s Recipe, we are very dedicated to ensuring that our customers are always satisfied, which is reflected in our customer-friendly return policy.

Note that if customers are dissatisfied with their purchase, we have put in place a stress-free return process as long as it is within a reasonable timeframe.

Aside from that, our loyalty program comes with incentives that include exclusive discounts, early access to new flavors, as well as special promotions to show our appreciation to our valued customers for their continued support

e. Customer Support Strategy
  • Responsive Communication
  • Knowledgeable Staff
  • User-Friendly Online Support
  • Feedback Mechanism
  • Problem Resolution Protocols
  • Personalized Assistance
  • Regular Training
  • Surprise and Delight Initiatives
  • Clear Policies
  1. Operational Plan

Our operational plan at Grandma’s Recipe features the seamless execution of our artisanal cookie production as well as the creation of a warm, exciting ambiance for our customers.

The basis of our operation encompasses our well-detailed baking process, with a focus on leveraging high-quality, fresh ingredients sourced from reliable suppliers.

To guarantee consistency and efficiency, we intend to make use of a just-in-time inventory system that will help to ensure that our cookies are always freshly baked.

Our online platform will also work to ensure easy ordering and nationwide shipping, further growing our reach. Also note that steady quality checks, staff training, as well as community engagement initiatives remain vital components of our operational strategy.

a. What Happens During a Typical Day at a Cookie Shop Business?

Just like with a typical cookie shop, day-to-day activities will more or less involve making and serving customers cookies and other baked items.

However, when not baking and speaking to customers, we will be refilling and restocking supplies, ordering more inventory, scheduling employees (if a shop has multiple employees), washing dishes, cleaning, and getting things ready for sale.

b. Production Process

Grandma’s Recipe will be renowned for our meticulous and artisanal cookie production process that starts with a careful selection of ingredients.

Our experienced bakers will adhere to our cherished family recipes, putting together premium flour, real butter, and top-tier chocolate to produce the perfect cookie dough. Aside from that, every single batch is mixed with love, shaped by hand, and baked to golden perfection.

To ensure we uphold our authenticity and homemade quality, we will never include preservatives to ensure that our customers can relish the true essence of Grandma’s Recipe. Remember that our production process focuses on freshness, with cookies baked throughout the day.

c. Service Procedure

At Grandma’s Recipe, our service procedure is properly designed to guarantee a welcoming and exciting experience for every customer:

  • Warm Welcome
  • Product Knowledge
  • Ordering Process
  • Interactive Experience
  • Prompt Service
  • Quality Check
  • Expressing Gratitude
  • Feedback Encouragement
  • Loyalty Program Information
  • Community Engagement
d. The Supply Chain
  • Create and sustain good working relationships with reliable suppliers for high-quality ingredients, such as flour, butter, chocolate, and other vital components needed in cookie production.
  • Put in place an efficient inventory management system to monitor ingredient levels, track usage, and guarantee timely reordering to prevent shortages.
  • Carry out the baking process in-house, putting together carefully sourced ingredients using family recipes.
  • Only go for eco-friendly and visually attractive packaging materials.
  • Work hand in hand with local businesses for supplementary needs, including coffee suppliers, to boost the in-store experience and provide complementary offerings.
  • Put in place a distribution system to ensure prompt delivery of fresh cookies to the storefront in Knoxville, Tennessee.
  • Establish quality control measures all through the supply chain, guaranteeing that all ingredients and final products align with Grandma’s Recipe standards for freshness and taste.
  • Establish and work on waste reduction and recycling measures.
e. Sources of Income
  • In-Store Sales
  • Online Orders
  • Catering Services
  • Customized Gift Boxes
  • Franchise Fees (In the future)
  • Loyalty Program Memberships
  • Collaborations and Partnerships
  • Seasonal Promotions and Limited Editions
  1. Financial Plan

a. Amount Needed to Start your Cookie Shop Business?

Note that it is possible to start a cookie business with as little as $1,500 especially if you intend to start and operate from home, with minimal equipment. However, if you plan to run a bigger operation with a commercial kitchen, then budget around $10,000 or more.

b. What are the Costs Involved?
  • Setting up a business name and corporation: $150 – $200
  • Business licenses and permits: $100 – $300
  • Business cards and brochures: $200 – $300 250
  • Baking equipment and supplies: $1,000 – $2,000
  • Labeling and package design: $2,000 – $3,000
  • Insurance: $100 – $300
  • Website setup: $1,000 – $3,000
c. Do You Need to Build a Facility?

Yes, a facility is required to ensure that we can carry out baking and retail operations. This facility would also serve as the primary location where the cookies are made, baked, and packaged.

This facility would have a storefront for in-store sales, ensuring that customers can enjoy a welcoming environment when looking to purchase cookies directly.

d. What are the Ongoing Expenses for Running a Cookie Shop Business?
  • Ingredient Costs
  • Labor Costs
  • Utilities
  • Rent or Mortgage Payments
  • Packaging Materials
  • Marketing and Advertising
  • Insurance
  • Employee Benefits
  • Equipment Maintenance
  • License and Permits
  • Professional Services
  • Loan Repayments
  • Technology and Software Subscriptions
e. What is the Average Salary of your Staff?
  • President: $55,000/Yearly
  • Head Baker: $43,519/Yearly
  • Customer Service Specialist: $39,830/Yearly
  • Sales and Marketing Coordinator: $32,410/Yearly
  • Event Coordinator (Catering Specialist): $28,900/Yearly
  • Store Manager: $41,012/Yearly
f. How Do You Get Funding to Start a Cookie Shop Business?
  • Equipment loan/financing program
  • Rollover for business startups (ROBS)
  • Business credit cards
  • Personal loan
  • Microloan from Small Business Administration (SBA)
  • Investors
  1. Financial Projection

a. How Much Should You Charge for Your Product/Service?

Since we will be serving high quality and premium products at Grandma’s Recipe, we intend to charge around $5 and $7 for a 4 oz. serving, or between $8 and $20 for a 16 oz. serving.

b. Sales Forecast?
  • First Fiscal Year (FY1): $490,000
  • Second Fiscal Year (FY2): $940,000
  • Third Fiscal Year (FY3): $2,330,000
c. Estimated Profit You Will Make a Year?

At Grandma’s Recipe, we expect to make;

  • First Fiscal Year (FY1): $146,000 (30% of revenue generated)
  • Second Fiscal Year (FY2): $471,500 (45% of revenue generated)
  • Third Fiscal Year (FY3): $900,600 (40% of revenue generated)
d. Profit Margin of a Cookie Shop Business Product/Service

Overall, profit margins in the food industry tend to range from 5% to 15%. Nevertheless, specialty or artisanal products, such as Grandma’s Recipe cookies, can have slightly higher margins.

  1. Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

Just as it was noted above, we intend to consider a franchise model in the future. We believe in the abilities of our management, staff, and products to build a strong brand presence, a proven and replicable operational model, as well as a loyal customer base.

This simply entails that franchising can become a valid option for expansion. This will enable willing entrepreneurs to invest in and operate their own Grandma’s Recipe cookie shops, sustaining and maintaining the brand standards and recipes while also benefiting from the nationally recognized success of the original business.

b. Where do you intend to expand to and why?

Due to the promising nature of these locations and the availability of cookie enthusiasts, below are the top locations we intend to expand to;

  • Columbus, Ohio
  • New York, New York
  • Boston, Massachusetts
  • Los Angeles, California
  • Philadelphia, Pennsylvania
  • Knoxville, Tennessee
  • New Orleans, Louisiana
  • Ocean City, Maryland
  1. Exit Plan

At Grandma’s Recipe, our exit strategy will involve selling the business to a bigger player in the food industry or a private equity firm eager to leverage the massive opportunities in the artisanal food market.

Aside from that, we also believe that franchising Grandma’s Recipe will ensure we have a scalable and lucrative exit, giving room for the founding members to still keep a percentage of the franchise fees and ongoing royalties.

We might as well consider the possibility of passing the business down to a family member or key employee, guaranteeing a legacy for Grandma’s Recipe while ensuring continuity in its operations.