Are you about starting a soda pub? If YES, here is a complete sample soda pub business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a soda pub. We also took it further by analyzing and drafting a sample soda pub marketing plan template backed up by actionable guerrilla marketing ideas for soda pubs. So let’s proceed to the business planning section.
Why Start a Soda Pub Business?
Anyone can start a soda pub business. It isn’t financially tasking to start as you can purchase a soda pub even that of a popular brand at a cheap price, and still get the most out of it. The soda pub business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.
If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst others.
Below is a sample soda pub business plan template that will help you successfully write yours within record time.
A Sample Soda Pub Business Plan Template
- Business Overview
Soda pubs retail products from the soda production industry and companies in the industry manufacture soft drinks by blending various ingredients with artificially carbonated water. This industry also includes energy beverages. Producers of bottled water, ready-to-drink teas and coffees, as well as juice manufacturers are not part of the soda production industry.
Soda produced by industry manufacturers are bottled in cans, glass bottles and plastic bottles in either single-serve or multi-serve portion sizes. Manufacturers have added a variety of can and bottle sizes to their product lines, particularly smaller single-serve bottles, to appeal to busy consumers and also those who want to consume less calories in liquid form.
Producers have tried to combat declining demand for both regular and diet soda by extensions that are made with natural sweeteners such as stevia.
Industry revenue is anticipated to follow its downward trend as consumers continue to turn away from sugar- and artificially-sweetened beverages. Demand from downstream markets is expected to stagnate as state and local governments continue to push for the passage of additional taxes on soda. Also, growing health consciousness will cause some consumers to drink substitute beverages that are considered healthier than carbonated soft drinks (CSDs).
The Soda Production industry is indeed a large industry and pretty much active in most countries of the world. Statistics has it that in the United States of America alone, there are about 273 registered and licensed product manufacturing companies scattered all across the United States responsible for employing about 51,692 people and the industry rakes in a whooping sum of $45 billion annually.
The industry is projected to enjoy -0.4 percent annual growth within 2012 and 2017. Dr. Pepper Snapple Group Inc., Monster Beverage Corp., PepsiCo and The Coca-Cola Company have lion shares of the available market in this industry.
There are significant barriers to entry into the Soda Production industry including the high initial capital investments, market saturation, industry concentration and the declining demand for soda. However, as energy drinks are still in the growth stage of its life cycle, there are greater opportunities for new entrants to succeed by entering this niche market segment.
Nevertheless, significant capital investments are required to either purchase or lease facilities and acquire expensive machinery and equipment to produce soda. Additionally, new entrants must be able to offer differentiated products that either taste significantly better than the existing products in the market or invest heavily in marketing to position and promote their brand.
Any entrepreneur who wants to start a soda pub business in the US would definitely be confronted with tough competition. The truth is that you will not only compete with soda pubs in your location or city, but you would be competing with every other entertainment options such as night clubs, restaurants, casinos et al where sodas are retailed.
Lastly, it is important to state that in as much as starting a soda pub business can be profitable and rewarding, the success of any new soda pub business in the United States is not automatic. The chances of new pubs to struggle within the first 6 months of launching can’t be ruled out.
As a matter of fact, it can take between two to five years before most soda pubs can recover their initial investment. In order words, just like loads of new businesses, the statistics for soda pubs do not favor startups, you just have to have a long term investment plan if you intend starting your soda pub business.
Soda Pub Business Plan – Executive Summary
Ernesto Livermore® Soda Pub, Inc. is a neighborhood soda pub that will be located in downtown Los Angeles; at 300 S. Grand Central Parkway in Los Angeles, California. The facility is centrally located and it is close to the popular Market Center and a residential estate in LA.
We are set to make available assorted soda (regular carbonated soft drinks, diet carbonated soft drinks and sparkling water, energy and sports drinks and mixers) via our soda fountain machines to the people in Los Angeles in an environment that is specifically designed for socializing and networking and free from all forms of violence. Our soda pub facility is centrally located in a busy street and it has the capacity to accommodate 100 people per time.
Ernesto Livermore® Soda Pub, Inc. is designed to meet both health and safety standards as recommended by the local authority. Our customers are going to be treated with good music at all times. We have made provision for live band, karaoke, country side music and jazz et al. which will be played at the background to create the ambiance that our customers will cherish.
We are in business to make profits at the same to give our customers value for their money; we want to give people the opportunity to choose from the wide range of soda drinks that are manufactured in the United States of America. Ernesto Livermore® Soda Pub, Inc. will go all the way to give our customers value for their money.
Our goal is to make every day a day of celebration, networking and socializing for as many people that will patronize our soda pub. We intend to become the talk of town in Los Angeles because we have put plans in place to make our soda pub lively 24 hours a day and 7 days a week and highly secured because we want to attract everybody.
We will ensure that all our employees are selected from a pool of customer centric people in and around Los Angeles – California. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectation of the company and to compete with other players in the United States.
Ernesto Livermore® Soda Pub, Inc. is owned by Ernesto Livermore and his wife Rosemary Livermore. Ernesto Livermore has managed several businesses in Los Angeles and New York prior to opening his own. He has the magic wand to attract consumers of sodas on a regular basis.
- Our Product
Ernesto Livermore® Soda Pub, Inc. is going to operate a standard soda pub that will make available every product that can be found in a standard soda pub in the United States. We will ensure that we go all the way to make available assorted sodas and drinks in our soda pub and to make profits.
We will do all that is permitted by the law of the United States to achieve our goal of starting the business. These are some of the products that will be found in our soda pub;
- Diet carbonated soft drinks
- Regular carbonated soft drinks
- Sparkling water
- Energy and sports drinks
Our Vision Statement
Our vision is to establish a standard soda pub in Los Angeles – California that will be the melting pot of all lovers of soda drinks.
- Our Mission Statement
Our mission is to establish a one stop soda pub business that will make available all the brands of soda drinks in the United States and other parts of the world at every given time to our customers and a place where people can network and socialize.
- Our Business Structure
Ernesto Livermore® Soda Pub, Inc. is established to be a pacesetter when it comes to how a soda pub should be run. We have the goal of assembling a team of dedicated workforce who will give our customers excellent customer service at all times, a team that will ensure that we will continue to have repeated customers.
Will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Ernesto Livermore® Soda Pub, Inc. on;
- Chief Executive Officer (Owner)
- Pub Manager
- Greeters/Customer Service Agent/Table Attendant
- Security Officers
Roles and Responsibilities
Chief Executive Officer – CEO:
- 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.
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Designs job descriptions with KPI to drive performance management for clients
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing activities in the soda pub
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Interfaces with vendors
- Attends to Customers complains and enquiries
- Responsible for training and development in the organization
- Responsible for procuring of soda drinks, serving materials and equipment
- Handles any other duty as assigned by the CEO
- Interacts with customers, take orders for drinks and snacks.
- Plans and presents bar menu.
- Mixes drinks, cocktails and other bar beverages as ordered and in compliance with pub standard drink recipes.
- Serves soda and other drinks to guests.
- Arranges bottles and glasses to make attractive displays.
- Assesses customers’ needs and preferences and make recommendations
- Prepares inventory or purchase requisitions as needed to replenish supplies.
- Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
- 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 for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Disc Jockey (DJ)
- Ensures that customers are entertained with the best of music per time
- Responsible for developing music playlists.
- Responsible for mixing music tracks.
Greeters/Customer Service Agent/Table Attendant
- Opens door and welcome customers
- Ensures that customers feel relaxed and at home
- Handles customers’ enquiries
- Provides recommendations and suggestions to guests for choosing soda drinks and Snacks.
- Serves customers in a friendly manner.
- Demonstrates a thorough knowledge of food and beverage products, menus and Promotions.
- Handles any other duty as assigned by the pub manager
- Cleans up after customers
- Washes glassware and utensils after each use.
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the pub manager.
- Ensures that the facility is secured at all time
- Controls traffic and organize parking
- Gives security tips to staff members from time to time
- Patrols around the building on a 24 hours’ basis
Soda Pub Business Plan – SWOT Analysis
Ernesto Livermore® Soda Pub, Inc. is established with the aim of becoming the melting point of socialites and lovers of soda drinks in Los Angles – California which is why we have taken our time to conduct a SWOT analysis to be able to identify areas we need to work on if indeed we want to achieve our business goal.
No investor would want to invest his or her hard earned money without assessing the risks involved in the venture and also his or her capability to deliver and make profits from the business. The ability to make profits from any business and to favorably compete with competitors in the industry starts with the result you get from your SWOT analysis.
In view of that, Ernesto Livermore® Soda Pub, Inc. hired a HR specialist to help conduct SWOT analysis for the business and below is a summary of the result that was generated;
Our strengths as a company are excellent customer service and a wide range of soda drinks both from the United States and other parts of the world. The business model we will be operating on, ease of payment, wide range of products, competent team members, excellent facility, excellent ambiance and perfect location for a soda pub in metropolitan city like Los Angles also count as strengths for us.
Our perceived weakness could be that we are a new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.
There are unlimited business opportunities available to soda pub businesses in busy cities like Los Angeles as Los Angeles is one of the cities in the world where social life is at its peak. Another opportunity that we stand to leverage on is the fact that we can easily order any brand of soda drinks directly from soda production companies in the United States with little or no stress.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new soda pub or even a vending machine or restaurant in the same location where our target market exists and who may want to adopt same business model like us.
Soda Pub Business Plan – MARKET ANALYSIS
- Market Trends
Because of health concerns, the consumption of soda drink is experiencing decline not just in the United States of America, but all across the world and the demand for regular and diet CSDs is anticipated to decline further. Many states will further limit the sale of CSDs in the upcoming years.
For instance, more states will implement a soda tax to discourage consumers from purchasing soda frequently. According to a study conducted by the American Journal that the price of regular CSDs can lower the sales of regular soft drinks and cause some people to turn to substitute beverages.
In addition, the possible passage of the soda ban in New York City will dampen demand for soda in one of the largest cities in the United States. The passage of such a law can also spur on similar regulations in other cities.
- Our Target Market
Before starting our soda pub business in Los Angeles – California, we conducted a market survey and feasibility studies and we are certain that there is a wide range of people who would patronize our soda pub on a regular basis. In view of that, we have created strategies that will enable us reach out to various groups of people who are likely going to become our loyal customers.
Below is our target market;
- Taxi Drivers
- Business People
- Sports Men and Women
- College Students
Our Competitive Advantage
Competition in the Soda Production industry will remain intense, stimulating industry consolidation. Major companies are expected to continue streamlining operations for cost saving. We are mindful of the fact that there are stiff competitions among soda pubs in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.
Our competitive advantages are control of distribution arrangements and aggressive marketing – given the high level of competition and economies of scale. So also, part of what is going to be our selling point in Los Angeles is the fact that we operate a standard soda pub in a perfect location for the kind of business that we run and also the fact that our pub is highly secured.
Other factors that will give Ernesto Livermore® Soda Pub, Inc. competitive edge is that we have enough packing space to accommodate the number of customers our pub can contain per time, and secure payment platforms. We are not ruling out the fact that we have a dedicated and customer centric workforce that are willing to go the extra mile to give our customers full value for their money.
We are not ignoring the fact that we are among the few neighborhood soda pubs in downtown Los Angeles that sells almost all the brands of wines available in the United States of America, crafted beers, distilled spirits, liquors et al, and that will surely count towards our advantage in the market place.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the 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.
Soda Pub Business Plan – SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
Top of the list on our marketing and sales strategy is generating a buzz for our soda pub via word-of-mouth and leveraging on road show.
We intend running a neighborhood soda pub hence we are not going to rely only on the conventional ways of marketing. We don’t have plans to run paid adverts on Local TV and radio stations or even newspapers but we will sure maximize every other available means to promote our business.
Our unique selling proposition is that we have almost all the brand of soda drinks produced in America in our pub. In view of that, we are going to adopt the following marketing strategies to ensure that we do not only attract customers but generate repeated sales from them.
The marketing and sales strategies we will adopt are;
- Open our soda pub in a grand style with a party for all.
- Introduce our soda pub by sending introductory letters alongside our brochure to organizations, households and key stake holders in Los Angeles – California
- Ensure that we have a wide range of soda drinks at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our pub
- Position our signage / flexi banners at strategic places in and around the location of our soda pub
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage in roadshows within our neighborhood to create awareness for our soda pub.
Sources of Income
Ernesto Livermore® Soda Pub, Inc. is established with the aim of maximizing profits in the soda pub line of business and we are going to go all the way to ensure that we do all it takes to attract our target market. The sources of income for Ernesto Livermore® Soda Pub, Inc. are stated below;
- Sale of diet carbonated soft drinks
- Sale of regular carbonated soft drinks
- Sale of sparkling water
- Sale of energy and sports drinks
- Sale of mixers
One thing is certain when it comes to the soda pub line of business, if your soda pub is well stocked and centrally positioned, you will always attract customers that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Los Angeles, California and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the soda pub market, 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 Los Angeles – California.
- First Fiscal Year: $200,000
- Second Fiscal Year: $400,000
- Third Fiscal Year: $600,000
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 same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
The prices of our diet carbonated soft drinks, regular carbonated soft drinks, sparkling water, energy and sports drinks and mixers et al will be what is obtainable in the market. In fact, we will try as much as we can to sell below the industry’s average so as to attract loads of customers.
We also have plans in place to discount our products once in a while and also to reward our loyal customers on a regular basis.
- Payment Options
The payment policy adopted by Ernesto Livermore® Soda Pub, Inc. 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 Ernesto Livermore® Soda Pub, Inc. 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 the purchase of our products without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
Soda Pub Business Plan – Publicity and Advertising Strategy
Despite the fact that our soda pub facility is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our soda pub business.
Ernesto Livermore® Soda Pub, Inc. has a long – term plan of opening our retail outlets in various locations all around California and key cities in the United States which is why we will deliberately build our brand to be well accepted in Los Angeles – California 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 Ernesto Livermore® Soda Pub, Inc.;
- 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 (music online forums) to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – California
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our soda pub business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
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 your workers.
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 soda pub business; it might differ in other countries due to the value of their money.
This is what it would cost us to start Ernesto Livermore® Soda Pub, Inc. in the United of America;
- The total fee for registering the business in Los Angeles – California – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost of accounting software, CRM software and Payroll Software – $15,000
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $80,600.
- The cost for facility remodeling – $25,000.
- The cost for the purchase of Soda Fountain Machines – $15,000
- Other start-up expenses including stationery – $500
- Phone and utility deposits – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (purchase of assorted diet carbonated soft drinks, regular carbonated soft drinks, sparkling water, energy and sports drinks and mixers) – $16,027
- The cost of storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for serving area equipment (glasses, flatware) – $3,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- 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 grand opening party – $5,000
- Miscellaneous – $2,500
We would need an estimate of two hundred thousand dollars ($200,000) to successfully set up our soda pub business in Los Angeles – California.
Generating Startup Capital for Ernesto Livermore® Soda Pub, Inc.
Ernesto Livermore® Soda Pub, Inc. is a private business that is owned by Mr. Ernesto Livermore and his wife Mrs. Rosemary Livermore and they intend to finance the business alone. Although they have plans to make the pub manager part owner of the business after 5 or 7 years of service, but that does not stop him from reserving over 80 percent stake of the business for himself and his family.
Since they are the sole financiers of the business, they have decided to adopt the following means to generate startup capital for the business;
- Generate part of the startup capital from his personal savings and sale of his stocks
- Source for soft loans from family members and friends
- Apply for loan from the banks
N.B: Mr. Ernesto Livermore and his wife have been able to generate $50,000. The breakdown shows that they generated $40,000 from their personal savings and sale of their stocks and they generated $10,000 soft loans from their family members and friends.
The balance of $150,000 will be generated as loan facility from his 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.
Soda Pub Business Plan – 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 the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Ernesto Livermore® Soda Pub, Inc. 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 properly position our soda pub, ensure adequate security, have various brand of soda drinks, various payment options and excellent customer service et al.
Ernesto Livermore® Soda Pub, Inc. 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 retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. 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
- Renting of facility and remodeling the facility: 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 Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, electronic appliances, office appliances and bar accessories: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Purchase of Soda Fountain Machines – Completed
- Establishing business relationship with vendors – suppliers of all our needed soda drinks: In Progress