Are you about starting a gourmet popcorn business? If YES, here is a complete sample gourmet popcorn business plan template & feasibility report you can use for FREE.
A popcorn production business is a very lucrative business to start all over the world. This business can be started on a small scale with little capital although a large scale popcorn production business will provide greater profits in the future.
Popcorn is a favorite snack for most people in the United States of America and is sold almost everywhere in the country. It is sold in parks, malls, restaurants, amongst many other places. If this business is properly planned, managed and marketed, it can go on to be a long lasting business with plenty of profits.
Popcorn is an easy snack that is loved by a lot by people. Popcorn is a snack that can be eaten by anybody. This snack is known to be perfect for children and adults, making it easy going and lucrative. With Nigerians being fun loving people and people who love celebrations and events, a lot of ceremonies and occasions take place regularly, and popcorns tend to be on the menu.
So if you’re interested in this line of business, you have to first of all know that there are researches that should be carried out.
These researches are pretty important because of the light the knowledge to be gotten will shine on your path. Below is a simple business plan for a popcorn production business that will do you a world of good as you look at a starting a popcorn production business;
A Sample Gourmet Popcorn Business Plan Template
1. Industry Overview
A popcorn production business produces popcorn, including microwaveable, ready-to-eat and other consumer packages of unpopped popcorn. Popcorn production needs a medium to high level of capital input. In this modern age, manufacturing plants needs sophisticated technology and equipment to improve productivity without the need for additional manpower.
Most companies spend about 2.0% of their revenue on depreciation costs. Even with the highly mechanized level of the popcorn production industry, businesses still need workers to handle machinery and bring up innovative products.
The sales of popcorn accelerated originally in the 1980s with the invention of microwaveable popcorn. By 1995, microwave popcorn was responsible for 65% of all popcorn sales.
The same market share heightened to 72% by 1999. In this recent age, consumers’ tastes seem to be moving from popcorn to other processed snack foods. Sales of potato chips, nuts and seeds, and corn chips now have taken over from popcorn.
Almost all global popcorn production is contracted with processors. More than 80% of the world production is consumed domestically. Although popcorn is mostly consumed in movie theatres and at sporting events, away-from-home consumption of popcorn only represents one-third of total popcorn consumption in the world.
Popcorn being an edible snack faces substantial competition from other products. But the versatility and nutritional attributes of popcorn endures it closer to the heart of the people. Popcorn is known to be low in calories and fat, and has high in carbohydrates. In this industry, competition centers on individual flavors and packaging.
2. Executive Summary
Citi fries Inc. is a registered and standard popcorn production business that will be situated in one of the busiest sites in New York City. We have actually secured a standard facility along this major road that we believe will meet the specific business and target market that we intend to serve.
Citi fries Inc. Was established to produce, prepare, sale and distribution of a large varieties of popcorn and also shawarma, pizzas, ice creams, and soft drinks to our prospective customers. Citi fries also takes care of private deliveries when a customer order for our products it to be brought to them in any location within the city where we are situated.
We understand there are small businesses that offer or sale popcorns, shawarma, pizzas and most of our services, but after our extensive research and planning, we decided to start on a large scale to dominate the market and bring in new ideas to weaken our competitors.
We introduced the home delivery option, self – service options for our customers to enable them see or enjoy the treatment our competitors won’t be able to offer them.
With our innovative packaging and flavors, and with our customer care which is second to none in the whole of town of vicinity we are situated, and the neighboring Umbrella, we believe our customers will be fully satisfied with our services, and we will be going the extra mile to get them satisfied when they visit facility.
Citi fries Inc. will make sure that all our customers receive first class treatment whenever they come to our facility. We have introduced CRM software that will let us create and sustain a one on one relationship with our customers no matter how big and diverse our customer base may be.
We will also make sure we inculcate our customers when making some business decisions that will affect them directly. We at Citi fries Inc. Understand the trend in the restaurant / fast food industry and but we will be operating a system where our customers can visit an online bar to place orders for our products online and get them delivered to their precise location.
Citi fries is a family business which is owned by Mr. George Ndukwe and his immediate family members. Mr. George Ndukwe is a graduate of Food nutrition and dietetics from Michael Okpara University of Agriculture Umudike, in Nigeria before relocating to the United States of America.
He worked for a leading food production firm in Nigeria and can boost of having a substantial 25 years experience in food production and management. We plan to start our business with just one outlet but will expand when we have achieved our desire brand affinity and corporate identity.
3. Our Products and Services
Citi fries Inc. is a fast food business that produces, prepares, makes and distributes popcorns and other edible sneaks to our customers. Our product and service offerings are listed below;
- Potato chips
- Corn chips
- Soft drinks
- Ice cream
- Meat pie
4. Our Mission and Vision Statement
- Our vision at Citi fries Inc. Is to become the major fast food business in New York (and its environs) and also build a one stop fast food that produces popcorns and many other products in New York and in other cities in America.
- Our mission is to build a popcorn production business cum a fast food business that will produce a large variety of popcorns and other edible snacks at affordable prices to the good people of New York and America in whole.
Our Business Structure
Citi fries Inc. is not the usual mom and pop businesses we all see in the streets of America; the goal for establishing this business to build attractive one stop popcorn cum fast food restaurant in New York? Our fast food restaurant business may not be as big as some big brands, but will plan to invest the right business structure that will aid us build our business to the category of the major fast food businesses in the country.
We plan to hire individuals that are very qualified, truthful, customer centric, good communication skills and are open to help us build a business that will take the fast food industry by Storm and benefit everyone, which may include holders (the owners, workforce, and customers). We have also created a profit-sharing arrangement for all our senior management staff and it will be judged based on their performance for ten years duration.
In starting this prosperous business, we decided to hire qualified and competent hands to occupy the following offices;
- Chief Executive Officer
- Managing Director
- Admin and HR manager
- Popcorn, Sharwama, pizza and snack maker
- Marketing and Sales Manager
- Information director
- Company accountants
- Security guard
5. Job Roles and Responsibilities
Chief Executive Officer
- He will be in charge of providing work direction for the business
- He is charged with building, communicating, and implementing the vision, mission, and direction of the business – which also includes leading the achievement and implementation of the all the Agency’s strategy.
- He is responsible for fixing prices and signing business deals for the business
- His in charge of employment
- He also pays workers salary
- His responsible for Signing checks and documents for and on behalf of the agency
- He also evaluates the success of the organization
- In charge for managing the daily activities in the fast food
- Makes sure that the restaurant facility is in very good shape and conducive enough for customers
- Connects with third – party providers (vendors)
- In charge of supervising and training new staff members
- Reports to the Chief Executive Officer
- Settles all Customers complains and enquiries
- Creates budget and reports for the fast food
- Any other duty as assigned by the CEO
Admin and HR manager
- In charge of overseeing the running of HR and administrative tasks for Citi fries Inc.
- Monitors office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Stays updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Builds the Citi fries Inc. reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- State job positions for recruitment and managing interviewing process
- Organize staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Popcorn, Sharwama, pizza and snack maker
- Make popcorn, Sharwama, pizza and other snacks
- In charge for carrying out all casual or unskilled jobs in the restaurant
- In charge for packaging shawarma, pizzas and sandwiches meant for delivery
- Handles any other duty as assigned by the restaurant manager
Marketing and Sales Manager
- Oversees external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Creates demographic information and analyses the volumes of transactional data generated by customer purchases
- Understands, prioritizes, and reaches out to new partners, and business opportunities et al
- Understands development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- In charge for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Creates, executes and evaluates new plans for expanding increase sales
- Keeps all customer contact and information
- Represents the company in strategic meetings
- Aids to increase sales and growth for the business
- Is in charge of the organization website
- Takes care of the ecommerce aspect of the business
- In charge for installing and maintenance of computer software and hardware for the organization
- Take care of the logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Takes care of the organization’s CCTV
- Handles any other technological and IT related duties.
- In charge of preparing financial reports, budgets, and financial statements for Citi fries Inc.
- Gives the managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- In charge of financial forecasting and risks analysis.
- Understand cash management, general ledger accounting, and financial reporting
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensures compliance with taxation legislation
- Takes care of all financial transactions for Citi fries Inc.
- Serves as internal auditor for the organization
- Quickly attends to customers in a friendly and professional manner
- Make sure that un-occupied tables are always set and ready for customers
- Draws out chairs for customers as they arrive
- Takes care of any other duty as assigned by the Chief Operating officer / managing director
- Delivers customer’s orders on time
- Delivers correspondence for the restaurant
- Runs errand for Citi fries Inc.
- Any other duty as assigned by the floor / line manager
- In charge of cleaning the restaurant facility at all times
- Makes sure the toiletries and supplies don’t run out of stock
- Makes sure that both the interior and exterior of the restaurant facility are always clean
- Handles any other duty as assigned by the restaurant manager.
- In charge of protecting the agency and its environs
- Controls traffic and organize parking
- Gives security tips when necessary
- Patrols around the building on a 24 hours basis
- Presents security reports weekly
6. SWOT Analysis
Citi fries Inc. Was started with just one outlet to be used to test run the business for duration of 2 to 5 years to know if we will inject more funds, or expand the business and build more popcorn production cum fast food restaurants in other key cities.
We are fully aware that some small businesses offer most of the services we are to be offering in the same business location, which is reason why we are following the river of due process to establishing a business that will know that off the trail. We also know that to get a well detailed SWOT analysis, we need to let a professional do it for us we is why we consulted Shannon Consulting firm to conduct our SWOT Analysis.
Shannon Consultants are expert HR and Business Analyst with excellent experience in fast food line of business. We contacted them to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted by Shannon Consult for Citi fries Inc.
Our location, the business model we will be operating on (brick and mortar popcorn shop and online popcorn shop), different payment options, different flavors, packaging and innovation, and our excellent customer service culture will without doubt count as a strong strength for Citi fries Inc.
The main weakness that may count against Citi fries Inc. Will be the duration it might take to attract customers as a new popcorn production and selling shop cum fast food business. We also see our lack of financial power as a weakness and a barrier to our desired goal.
Starting a Popcorn production business cum fast food in New York along a busy express way gives us unlimited opportunities to offer our products and services to a lot of people. With our detailed analysis and excellent market feasibility, we already know and understand what our potential clients will be looking for when they visit our pop production shop cum fast food.
The major threat we at Citi fries Inc. will be facing is economic downturn. There is no denial that economic downturn affects purchasing/spending power. We may face threats also with increase in market competition and when students are on holiday s, but we have organized and put plans in place to attract the post graduate students who will be coming after the main students.
7. MARKET ANALYSIS
- Market trend
The online community is growing fast in this our modern age, and we plan to use it to our advantage by creating a breath taking online presence. We plan to make our presence felt and understood, we plan to take over right from the foundation up to the pinnacle of satisfaction and business.
We will also leverage social media platforms like Instagram, Facebook, and Twitter, and others to publicize our popcorn production business cum fast food. We also plan to open an online popcorn shop where people can place order from out production shop. We have also created a delivery system that is reliable efficient and fast.
The most important trend in the popcorn industry is to keep customers satisfied, we plan to do that by creating a new menu options that capitalize on the trend of increasing awareness of the health risks associated with a high-fat diet. The industry has also improved by creating products at price points enticing enough to weather the slow recovery, resulting in strong revenue growth. Therefore, these trends are expected to continue and contribute to revenue growth of our business.
8. Our Target Market
Our main target markets are:
- Students who, study and work in New York and its environs, who are looking for quality snacks and a standard outlet
- Surrounding businesses looking for tasty popcorns and other snacks to feed their customers.
- International and domestic travelers visiting or passing through New York.
- Families looking for quality, affordable popcorns and easy snack
- People looking for a comfortable environment in which to enjoy soft drinks, read a book, or just shop.
Each market segment consists of people who either live, work, or vacation in New York and its environs. Each market will be searching for an establishment that will meet their desire for authentic, healthy popcorn and unquestionable services.
Our Competitive Advantage
From our extensive research of the restaurant / fast food industry, we understood that the market has become very competitive over the last ten years. In order to be successful, one needs to be very creative, customer centric and produce good products. We at Citi fries Inc. are aware of the competition and we are well prepared to take the market by storm.
Citi fries will be establishing a standard popcorn production cum fast food that will dominate New York and its environs. Citi fries Inc. is located is located opposite a renowned ever busy University and on a major road that connects other cities. Citi fries has enough parking space that can contain 30 cars and a facility that can hold 60 individuals at a time.
We also plan to offer our customers a large variety of popcorns, Sharwama, meat pie and other snacks. We hope to create a facility where customers cannot afford to ignore. One of the goals of Citi fries is to establish an outlet which will be synonymous with excellent customer service culture, online store, various payment options and highly secured facility, which will serve as a competitive advantage
We have also made plans to take care of our employees, and also create a welfare package that will be among the best in the food industry, which will make them more than willing to give their all and aid us to build a classic business. Citi fries Inc. will also create a suitable working conditions and commissions to freelance sales agents that we will recruit.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Citi fries Inc. was established to offer an astounding variety of popcorns, Sharwama, ice cream etc. to the students and residents of New York. This business was founded to take over the market quickly and also to maximize profits, we plan to achieve these goals and objectives with any available means with the jurisdiction of the law. We plan to sell the following products;
- Potato chips
- Corn chips
- Soft drinks
- Ice cream
- Meat pie
10. Sales Forecast
A well located popcorn production business cum a fast food business, that offers astonishing products will always attract customers, which will in turn increase the income and revenue of the business. Citi fries Inc. is well positioned to be able to attract our ideal customers and we believe that we will be able to meet the expectations of our customers and also boost our revenue within the first six months.
With our extensive feasibility study, we looked into the available competition and we understood that we have a greater chance of taking over completely, and we have been able to come up with the following sales forecast.
- First Fiscal Year-: $100, 000
- Second Fiscal Year-: $500,000
- Third Fiscal Year-: $700,000
N.B: Our sales forecast was based on what we deemed achievable in the industry and with the assumption that the current economic recession in the country won’t affect us directly. We also hope we won’t be facing stiffer competitions, but we have already planned to review our marketing plan at the beginning of every business year. It is also crucial to note that these figures cam go high or lower due to unforeseen changes in the industry.
- Marketing Strategy and Sales strategy
We did an extensive market feasibility research and study before choosing our business location. We wanted a location that will help us to penetrate the already competitive market and become the main choice for the people and students in New York and the entire locality.
We invested a lot to decide and understand the demographics and Psychographics we wish to lay our business with and also to create a befitting marketing plan. We hire a firm which is renowned for their expertise in the food industry to aid us with creating a plan that will enable us take the market by storm.
We at Citi fries Inc. believe that with our carefully detailed business plan, our good products and an excellent customer service, the sky will actually be a starting point for us. Citi fries plans to will make use of the following sales and marketing approach which was outlined by Shannon consults for Citi fries Inc.
- Start our popcorn production shop cum fast food with a grand opening. .
- Send out introductory letters alongside our brochure to corporate organizations, colleges and departments, event planners, households around Umudike in order to introduce our product and service offerings.
- We will make sure we have an astounding variety of popcorns, Sharwama, potato chips, and pizzas et al in our facility at any given time
- We also plan to build attractive leaflets, Bill Boards and flex banners to create awareness and also give direction to Citi fries Inc.
- We also plan to mount the above at strategic points
- We also plan to train our employees to have good communication skills and treat the customer’s right at all time
- We also plan to create a toll free line to allow customers to page their complaints
- We also plan to create a loyalty program that will let us reward our regular customers
- We plan to go on road shows within our neighborhood to create awareness for Citi fries Inc.
11. Publicity and Advertising Strategy
Citi fries Inc. Is well located and we believe it will serve as a marketing and publicity strategy on its own. We also plan to use all available means to promote Citi fries Inc. We at Citi fries Inc. also have a long term plan put in place to establish more outlets after we must have achieved our desired identity in the market.
This is exactly the reason why our publicity and advertising strategy is not centered around winning customers or competitors alone but to create a breath taking brand awareness. Below are the strategic ways we plan to boost our brand awareness and create a corporate identity in the food industry;
- We plan to place adverts on community based newspapers, radio stations and TV stations.
- We will be encouraging the use of word of mouth publicity from our loyal customers
- We plan to make use of the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other sites available to us
- We plan to mount our Bill Boards and flex banners at strategic locations around New York.
- We also plan to give out flyers and leaflets to the students and residents of New York.
- We will be contacting corporate organizations, households, religious centers, and event planners et al to inform them of our products and services
- We plan to build a well-designed official website and devise ways that will help us pull traffic to the site
- We will also brand our delivery vans and motorcycles and also make sure our employees wear our well designed outfit.
12. Our Pricing Strategy
We all know that pricing is a major decision to make when starting a business. Customers will always to go to outlets where they can get cheaper products We also understand that we don’t have the financial strength with bigger players of the food industry, but we plan to make sure that the prices of all the products rhyme with what is versatile in the industry.
We also understand that cooperate organizations, religious organizations etc. have a stagnant supply price and procedure. We plan to stand by the bidding pricing template when we bid for such contracts.
- Payment Options
Citi fries Inc. will adopt payment options that will ensure our different customers get any type of payment options that suits them at any given time. We will also abide by the financial rules and regulation of the Nigeria as a nation. Below are the payment options we have made available for our distinctive customers:
- Payment via bank transfer
- Payment with cash at our outlet or to our Deliverers
- Payment via POS machines at our outlet
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
We have also chosen several bank partners to enable us create astounding payment options for our customers. We will make our account numbers available in our website, leaflets and also on request by a customer.
13. Startup Expenditure (Budget)
The budget of starting any business solely depends on the size and intent on of the business. The startup fund goes a long way to decide the tools, equipment, ingredients and work force you will be employing. Startup fund can actually be lower or higher depending on your business goals, ideas, and vision.
The necessary things needed to start a popcorn production business cum a fast food business can actually be the same cost everywhere, even if there were to be any difference, it will be something that won’t be a problem to the startup fund. Below is a detailed cost analysis of starting Citi fries Inc.;
- Price of incorporating Citi fries Inc. in America – $500
- Obtaining the necessary licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $700
- Citi fries Inc. Promotional expenses I’d envisaged at $60, 000 and also the flyers (2,000 flyers) for the total amount of – $35, 000
- Hiring Business Consultant – $10, 000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3800
- Cost of buying, renovating and adding necessary things – $1,500
- Constructing a standard popcorn shop– $1500
- Other start-up expenses including stationery ($500) and phone and utility deposits – $200,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $2,000
- The cost for Start-up inventory (raw materials and packaging materials et al) – $1,000
- Storage hardware (bins, rack, shelves, food case) – $500
- Price of counter area equipment (counter top, sink, ice machine, etc.) – $1,000
- Cost for store equipment (cash register, security, ventilation, signage) – $1,000
- Purchasing distribution vans – $3,000
- Purchasing furniture and equipment (Grilling machine, computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $1000
- The cost of Launching a Website – $500
- The cost for Grand opening – $2,000
- Miscellaneous – $3,000
According to our carefully detailed analysis, we need $350,000 to start our popcorn production business cum fast food. George Ndukwe has been able to raise $150,000 from his personal savings and soft loans from friends and family.
Generating Funding/Startup Capital for Citi fries Inc
Citi fries Inc. is a lucrative enterprise that is owned and funded by Mr. George Ndukwe and his immediate family members. Citi fries Inc. has no plans to acknowledge any external fund or partners. That is the major reason why we have decided to generate fund and startup capital through these three basic ways;
- Raise part of the start – up capital from personal savings
- Get soft loans from family members and friends
Our loan procedure is almost complete since all the necessary documents has been signed and submitted, we are expect the loan any time soon.
14. Sustainability and Expansion Strategy
In this world of ours, the success of any business depends on its foundation, marketing strategy, customer retention and the level of brand awareness it has created. Businesses are struggling to make the limelight in this modern age, which is the reason why every hand must be on deck at Citi fries Inc. to be able to flourish on the food industry.
Citi fries Inc. is a business established to stand the test of time stand as a foundation to build more outlets and maximize profits to the gain of our workers, owners and customers. We understand that one of the methods of gaining approval and winning customers over is to retail our products at a cheaper rate than what is obtainable in the market and we have to survive on lower profit margin for a while.
Citi fries Inc. will make sure that we lay the right foundation, structures and processes to make sure our staff welfare are well taken of. Our company’s corporate culture is implemented to move Citi fries Inc. To a greater level
We also plan to keep our employees happy by implementing a profit strategy that will be available for hardworking workers and a period of 10 years. We also plan to inculcate them into the business as a family, which will in turn give them the zeal to work wholeheartedly for Citi fries Inc.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of a facility and renovating the facility as well: In Progress
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants of cooking gas: b
- Purchase of delivery truck: Completed