Are you about starting a snack bar company? If YES, here is a complete sample snack bar business plan template & feasibility report you can use for FREE. Opening a snack bar may sound easy, but the reality is that you have to lay down well thought-out plans to make sure that the business stands the test of time. A lot needs to be done to see that your snack bar business takes off within the projected period.
A Sample Snack Bar Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
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
- Soft Drinks
4. Our Mission and Vision Statement
- 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.
Our Business Structure
Our intention of starting a snack bar business is to build a standard snack bar in Montgomery – Alabama. Although our snack bar might not be as big as Smithfield Foods and Tyson Foods, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Bar Manager
- Human Resources and Admin Manager
- Snack Markers
- Sales and Marketing Manager
- Information Technologist
- Van Drivers/Deliverers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
- Makes, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
- Fixes prices and signs business deals
- Responsible for providing direction for the business
- Evaluates the success of the organization
Admin and HR Manager
- 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.
- 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
- 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
Sales and Marketing 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
- Manages the organization’s website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, web servers, e-commerce software and POS systems
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
- 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
- Promptly attends to customers in a friendly and professional manner
- Ensures that unoccupied tables are always set and ready for customers
- Pulls out chairs for customers as they arrive
- Handles any other duty as assigned by the bar manager
- Delivers customer’s orders promptly
- Delivers correspondence for the restaurant
- Runs errands for the organization
- Any other duty as assigned by the manager
- Responsible for cleaning the bar facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the bar manager
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;
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.
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.
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.
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
- Corporate Organizations
- Corporate Executives
- Business People
- Sports Men and Women
A close study of the snack and coffee shops industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the competition and we are prepared to compete favorably with other snack bars in Montgomery – Alabama.
Don Albertini® Snack Bar, LLC is launching a standard snack bar that will indeed become the preferred choice of residents of Montgomery – Alabama. Our snack bar is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Montgomery – Alabama. We have enough parking space that can accommodate over 20 cars per time.
One thing is certain, we will ensure that we have varieties of snacks and nonalcoholic drinks available at our bar at all times. It will be difficult for customers to visit our snack bar and not make a purchase. One of our business goal is to make Don Albertini® Snack Bar, LLC a one stop snack and coffee shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the snack and coffee shops industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- 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
- Soft Drinks
10. Sales Forecast
One thing is certain when it comes to snack and coffee business, if your bar is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Montgomery – Alabama and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation and grow the business and our clientele base.
We have been able to critically examine the snack and coffee shops industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Montgomery – Alabama.
- First Fiscal Year: $220,000
- Second Fiscal Year: $50,000
- Third Fiscal Year: $950,000
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.
- Marketing Strategy and Sales Strategy
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;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Montgomery – Alabama
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise Don Albertini® Snack Bar, LLC business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and delivery vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Pricing is one of the key factors that give leverage to snack and coffee shops; it is normal for consumers to go to places where they can order snacks, coffee and soft drinks at cheaper prices which is why big players in the industry will continue to attract loads of consumers.
We know we don’t have the capacity to compete with well – established snack and coffee shops like Smithfield Foods and Tyson Foods, but we will ensure that the prices of all the products that are available in our snack bar are competitive with what is obtainable amongst snack bar and related businesses within our level.
- 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;
- 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
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;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
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.
- 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 facility and remodeling the facility to fit into a standard snack bar: 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
- Printing of Packaging and 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
- Compilation of the products that will be available in our shop: Completed
- Establishing business relationship with vendors – suppliers: In Progress
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