A daiquiri shop is a type of establishment that specializes in serving daiquiris, which are alcoholic beverages typically made with rum, lime or lemon juice, and sugar or another sweetener. The Daiquiri is a popular cocktail that originated in Cuba but has gained popularity worldwide.
In a daiquiri shop, you can find a variety of daiquiris on the menu, offering different flavors and combinations. These establishments often have a wide selection of fruit-flavored daiquiris, such as strawberry, mango, pineapple, and watermelon, among others. Some shops may also offer specialty or seasonal daiquiris, incorporating unique ingredients or flavors.
The daiquiri shop business belongs to the food and beverage industry, specifically the bar and restaurant sector, and available data shows that the bars and cafes market is expected to grow to $529.76 billion in 2027 at a CAGR of 3.8 percent.
Steps on How to Write a Daiquiri Shop Business Plan
Drink King™ Daiquiri Shop, Inc. is a new daiquiri shop business that will be located in the heart of West Chester, Ohio, offering a unique shop for customers to enjoy an extensive selection of handcrafted daiquiris, as well as other alcoholic and non-alcoholic drinks, and food.
Our daiquiri shop business will feature a spacious shop and bar area with seating for up to 100 customers and will be designed to provide a relaxed and inviting atmosphere.
To enhance the customer experience, we plan to offer entertainment such as live music, games, and other events on a regular basis. We will also provide excellent customer service and hire a team of knowledgeable and friendly staff to ensure that every customer has a great experience.
Our business model is designed to be scalable and we plan to expand to other locations in the future. Isaac Freetown is the founder and CEO of Drink King™ Daiquiri Shop, Inc.
a. Our Products and Services
Drink King™ Daiquiri Shop, Inc. will differentiate itself by offering an extensive selection of handcrafted daiquiris. Key features of our product and service offering include:
- Varied flavors and combinations: The menu will include classic flavors as well as innovative creations, incorporating fresh fruits, herbs, and premium spirits.
- Customization options: Customers will have the ability to tailor their daiquiris by choosing from a range of flavors, sweetness levels, and garnishes.
- Seasonal specials: To encourage repeat visits, the shop will introduce seasonal daiquiris and limited-time promotions, showcasing new and exciting flavor profiles.
- Exceptional service: Highly trained and passionate staff will provide attentive and knowledgeable service, ensuring an enjoyable and memorable experience for all customers.
b. Nature of the Business
Our daiquiri shop will operate with a business-to-consumer business model.
c. The Industry
Drink King™ Daiquiri Shop, Inc. will operate in the food and beverage industry, specifically the bar and restaurant sector.
d. Mission Statement
At Drink King™ Daiquiri Shop, Inc., our mission is to delight and uplift our customers by providing an exceptional and immersive daiquiri experience. We are dedicated to crafting high-quality, innovative daiquiris using fresh ingredients and premium spirits.
With our vibrant atmosphere and warm hospitality, we strive to create a welcoming space where people can come together, celebrate, and create lasting memories.
e. Vision Statement
Our vision is to be recognized as the premier daiquiri destination, known for our unrivaled creativity, exceptional quality, and unparalleled customer experience.
f. Our Tagline (Slogan)
Drink King™ Daiquiri Shop, Inc. – Drink King™ Daiquiri Shop, Inc., The go-to destination for daiquiri enthusiasts, offering unparalleled flavors, service, and ambiance!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Drink King™ Daiquiri Shop, Inc. will be formed as a Limited Liability Company (LLC).
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Bar Manager
- Bartenders, Waiters, and Waitresses
- Security Guard
i. Ownership/Shareholder Structure and Board Members
- Isaac Freetown (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
- Edison Hadaway (Board Member) 18 Percent Shares
- Bob Jefferson (Board Member) 10 Percent Shares
- Raph McMillian (Board Member) 10 Percent Shares
- Tessy George (Board Member and Sectary) 10 Percent Shares.
- Drink King™ Daiquiri Shop, Inc. offers a wide variety of creative and signature daiquiri flavors that are not commonly found elsewhere.
- The Drink King™ brand has established a strong presence in the market, known for its quality, consistency, and customer satisfaction.
- Our daiquiri shop is strategically located in high-traffic areas, such as near popular tourist destinations, shopping centers, and entertainment venues, ensuring visibility and a steady flow of customers.
- The company has implemented streamlined processes for daiquiri production, inventory management, and customer service, resulting in efficient operations and consistent quality.
- Drink King™ Daiquiri Shop employs skilled and knowledgeable staff who are trained in mixology, customer service, and promoting responsible alcohol consumption.
- Like most daiquiri shops, Drink King™ experiences fluctuations in demand due to the seasonal nature of the beverage.
- The daiquiri market is highly competitive, with numerous local and national competitors.
- Dependence on alcohol-related regulations
- Reliance on external suppliers.
- Expansion into new markets
- Introducing non-alcoholic versions of daiquiris, healthy variations, or low-sugar options can attract a broader customer base, including designated drivers, health-conscious individuals, and those seeking non-alcoholic alternatives.
- Online ordering and delivery
- Collaborations and partnerships
- Customer loyalty programs.
i. How Big is the Industry?
The daiquiri shop industry is a big and thriving industry and as a matter of fact, the market size of the Bars & Nightclubs industry is $36.4 billion in 2023.
ii. Is the Industry Growing or Declining?
Yes, the daiquiri shop business is a growing business. Available statistics show that the bars and cafes market is expected to grow to $529.76 billion in 2027 at a CAGR of 3.8 percent.
iii. What are the Future Trends in the Industry
Several future trends are emerging in the daiquiri shop industry. While these trends can vary based on regional preferences and market dynamics, here are some potential future trends to consider:
As consumers become more health-conscious, there is a growing demand for healthier and low-calorie options. Daiquiri shops can cater to this trend by offering low-sugar or natural sweetener alternatives, incorporating fresh fruits and ingredients, and providing nutritional information for their beverages.
As environmental awareness grows, customers are placing greater importance on sustainability. Daiquiri shops can embrace eco-friendly practices by using biodegradable or reusable straws, sourcing local and organic ingredients, implementing recycling and waste reduction measures, and promoting sustainable packaging options.
The digital landscape continues to shape consumer behavior. Daiquiri shops can leverage technology by developing user-friendly websites, and mobile apps for ordering and loyalty programs and engaging with customers through social media platforms. Online delivery services can also expand reach and convenience.
iv. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the daiquiri shop business because the daiquiri shop is a niche idea in the food and beverage industry, specifically the bar and restaurant sector.
v. Can You Sell a Franchise of Your Business in the Future?
Drink King™ Daiquiri Shop, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving beer markets in the United States of America.
- Shifts in consumer preferences towards healthier alternatives, lower alcohol consumption, or different beverage trends may impact the demand for daiquiris and the overall success of the business.
- During periods of economic recession or uncertainty, consumers may reduce discretionary spending, affecting the sales and profitability of luxury items like daiquiris.
- Fluctuations in ingredient prices, labor costs, or regulatory compliance requirements can increase operational expenses, potentially impacting profitability if not properly managed.
- Negative societal attitudes towards excessive alcohol consumption or public health concerns may lead to stricter regulations or public scrutiny, affecting the perception and popularity of alcoholic beverage businesses.
- Online competition and delivery services.
i. Who are the Major Competitors?
- The Daiquiri Bar
- Fat Tuesday
- The Daiquiri Shoppe
- The Daiquiri Factory
- Daiquiri Shack
- Wet Willie’s
- Big Easy Daiquiris
- Daiquiri Island
- The Daiquiri Spot
- Daiquiri Express
- Tropical Isle
- The Frozen Cactus Daiquiri Shop
- Fat Pat’s Daiquiri Factory
- Blue Daiquiri Bar
- Cajun Daiquiris
- The Daiquiri Deck
- The Frozen Daiquiri Factory
- Daiquiri Island Grill
- Daq’s Wings & Grill
- The Royal Daiquiri
ii. Is There a Franchise for Daiquiri Shop Business?
- Fat Tuesday
- Daiquiri Shoppe
- Daiquiri Express
- The Daiquiri Factory
- Daiquiri Island
- The Daiquiri Deck
- Daiquiri Hut
- Big Easy Daiquiris
- Frosty Factory
- Daiquiri Time Out.
iii. Are There Policies, Regulations, or Zoning Laws Affecting the Daiquiri Shop Business in the United States of America?
Yes, there are policies, regulations, and zoning laws that affect daiquiri shop businesses in the United States of America. These laws vary depending on the state, county, and city in which the business is located. For example, each state has its own Alcohol Beverage Control (ABC) laws that regulate the sale, distribution, and consumption of alcohol.
These laws may require daiquiri shop businesses to obtain licenses and permit to sell alcohol, limit the hours during which alcohol can be sold, and prohibit the sale of alcohol to certain individuals, such as minors and intoxicated individuals.
Some zoning laws may prohibit the operation of daiquiri shop businesses in certain areas, such as residential or industrial zones. Other zoning laws may require special permits or variances to operate a daiquiri shop business in a particular location.
Daiquiri shop businesses must comply with health and safety codes that regulate food preparation, storage, and service. These codes may also include regulations on outdoor dining areas, such as requirements for fencing, lighting, and seating capacity.
Many cities and counties have noise ordinances that limit the amount of noise that businesses can generate, particularly during late-night hours. Daiquiri shop businesses may need to comply with these noise ordinances to avoid complaints from nearby residents.
Daiquiri shop businesses must comply with fire codes that regulate the use of outdoor heating and cooking equipment. These codes may require the installation of fire extinguishers, smoke detectors, and other safety equipment. Daiquiri shop businesses must comply with the Americans with Disabilities Act (ADA), which requires that businesses provide accessible seating and facilities for individuals with disabilities.
a. Who is your Target Audience?
i. Age Range
Our target market comprises adults above 18 years old who have the finance to purchase daiquiris and other beverage drinks from us.
ii. Level of Educational
We don’t have any restriction on the level of education of those who we are ready to welcome in our daiquiri shop.
iii. Income Level
There is no cap on the income level of those who are looking to sell daiquiris and other beverage drinks.
There is no restriction when it comes to the ethnicity of the people we are looking forward to purchasing daiquiris and other beverage drinks from us.
There is no restriction when it comes to the language spoken by the people we are looking forward to purchasing daiquiris and other beverage drinks from us.
vi. Geographical Location
Anybody from any geographical location can buy our daiquiris and other beverages.
Drink King™ Daiquiri Shop, Inc. will not restrict any customer from purchasing daiquiris and other beverage drinks from us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand All Our Vans and Trucks.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the event planning and catering services industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Drink King™ Daiquiri Shop, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package.
In all our pricing strategy will reflect;
- Penetration Pricing
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the entertainment industry, and freelancers to help refer customers to us.
Drink King™ Daiquiri Shop, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need supplies such as daiquiris (alcoholic beverages typically made with rum, lime or lemon juice, and sugar or another sweetener), as well as a range of other beverages means that Drink King™ Daiquiri Shop, Inc. will operate an inventory strategy that is based on a day-to-day methodology to follow for ordering, maintaining and processing items in our warehouse.
We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business. Drink King™ Daiquiri Shop, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
c. Payment Options for Customers
Here are the payment options that Drink King™ Daiquiri Shop, Inc. will make available to her clients;
- Bank Transfers
- Credit or Debit Card
- Electronic Payment Systems such as PayPal or Venmo.
d. Return Policy, Incentives, and Guarantees
Drink King™ Daiquiri Shop, Inc. will offer a return policy, incentives, and guarantees to build trust and loyalty with customers. We will make sure the policy is clearly communicated on our website and in-store signage.
- If a customer is not satisfied with their order, we will offer a refund or replacement
- We will also offer a store credit for future purchases.
- We will implement loyalty programs where customers earn points or rewards for repeat purchases.
- We will offer special discounts or promotions for customers who refer friends or family members to the deli restaurant.
- We will organize social media contests and giveaways to increase engagement and attract new customers.
- We will guarantee the quality of our daiquiris and other products, and if a customer is not satisfied, they could receive a refund or a replacement meal.
- We will offer delivery guarantees such as a guaranteed delivery time or a discount on the next order if the delivery is late.
- We will implement satisfaction guarantees where customers are guaranteed to be satisfied with their experience, or we will take steps to make it right.
e. Customer Support Strategy
To ensure customer satisfaction, we will encourage customers to provide feedback and suggestions. This will help us provide excellent customer service to all our clients. We will work with effective CRM software to be able to achieve this.
On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Our operational plan will outline how the business will run on a day-to-day basis. It will cover areas such as staffing, inventory management, customer service, and marketing.
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. By developing a strong strategy and implementing it effectively, we will be able to run our daiquiri shop business smoothly.
a. What Happens During a Typical Day at a Daiquiri Shop Business?
- The business is open for the day’s work
- The daiquiri shop serving area is cleaned and ready for the day’s business
- Supplies such as a wide selection of daiquiris, as well as other alcoholic and non-alcoholic drinks are purchased
- Customer’s orders are taken and they are served or their orders are delivered to them
- The cashier collects cash and reconciles accounts for the day
- Administrative duties are carried out
- The store or warehouse is restocked when required.
- The business is closed for the day.
b. Production Process
There is no production process for a daiquiri shop business.
c. Service Procedure
The service procedure for a daiquiri shop business starts with a customer requesting daiquiris and other beverage drinks. Once the request is gotten, it will be processed and the customer will be served or the order delivered to a location as requested.
d. The Supply Chain
Drink King™ Daiquiri Shop, Inc. will rely on a supply chain model that involves the process of sourcing, transporting, storing, and managing inventory of the various products and supplies needed to run our Daiquiri shop business.
e. Sources of Income
Drink King™ Daiquiri Shop, Inc. will generate revenue primarily through the sale of daiquiris, alcoholic and non-alcoholic beverages, as well as food items.
a. Amount Needed to Start Your Daiquiri Shop Business?
Drink King™ Daiquiri Shop, Inc. would need an estimate of $150,000 to successfully set up our Daiquiri shop business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $3,300.
- Marketing, Branding, and Promotions – $3,000.
- Business Consultant Fee – $2,500.
- Insurance – $3,400.
- Rent/Lease – $50,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $70,000
- Start-up Inventory – $35,000
- Bar Equipment (cash register, security, ventilation, signage) – $1,750
- Furnishing and Equipping the Daiquiri shop – $80,000
- Website: $600
- Opening party: $5,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
Drink King™ Daiquiri Shop, Inc. will not build a new facility for our daiquiri shop business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Daiquiri Shop Business?
- Rent or Mortgage Payments
- Employee Wages and Benefits
- Inventory and Supplies (rum, lime or lemon juice, and sugar or another sweetener, beer, wine, spirits, and other beverages, as well as food items and other supplies).
- Marketing and Advertising
- Maintenance and repairs such as cleaning supplies, pest control, repairs to equipment or furniture, and general upkeep of the physical space.
- Licenses and permits such as liquor licenses, health permits, or permits for outdoor seating or events.
e. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $65,000 Per Year
- Bar Manager – $55,000 Per Year
- Accountant – $42,630,000 Per Year
- Barman – $40,800 Per Year
- Bartender, Waiters, and Waitresses – $38,100 Per Year
- Cleaners – $35,000 Per Year
- Security Guard -$30,000 Per Year
f. How Do You Get Funding to Start a Daiquiri Shop Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for Your Product/Service?
The price range for a glass of daiquiri in our shop can be anywhere from $5 to $15.
b. Sales Forecast?
- First Fiscal Year (FY1): $360,000
- Second Fiscal Year (FY2): $480,000
- Third Fiscal Year (FY3): $750,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $26%
- Second Fiscal Year (FY2) (Profit After Tax): $30%
- Third Fiscal Year (FY3) (Profit After Tax): $35%
d. Profit Margin of a Daiquiri Shop Business Product/Service
Drink King™ Daiquiri Shop, Inc. will aim for a profit margin of 26 to 30 percent on sales. This means that for every dollar spent on a daiquiri or other beverages by a customer, the business should aim to earn 26 to 30 cents in profit.
a. How Do We Intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Drink King™ Daiquiri Shop, Inc. will grow our daiquiri shop business by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where do We intend to expand to and why?
Drink King™ Daiquiri Shop, Inc. plan to expand to
- Las Vegas, Nevada
- Houston, Texas
- Key West, Florida
- Baton Rouge, Louisiana
- Myrtle Beach, South Carolina
- Ocean City, Maryland
- Orlando, Florida
- Gulfport, Mississippi
- Washington, D.C.
- Baton Rouge, Louisiana.
The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest market for daiquiris and other alcoholic drinks in the United States. As a matter of fact, these cities are generally known for their thriving craft beer scenes, and have a large number of breweries and beer-related events and festivals.
The founder of Drink King™ Daiquiri Shop, Inc. plans to exit the business via family succession. The company has placed structure and processes in place to help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.
The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.