Are you about starting a soda shop? If YES, here is a complete sample soda shop business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a soda shop. We also took it further by analyzing and drafting a sample soda shop marketing plan template backed up by actionable guerrilla marketing ideas for soda shops. So let’s proceed to the business planning section.
Why Start a Soda Shop Business?
A soda shop which is also called a malt shop, is a business similar to an ice cream parlor. A lot of people are beginning to take this business seriously in the United States of America. In fact it is one business that one can start and comfortable grow into a very profitable and enviable business.
Soda drinks appeal to nearly everyone and so it is one drink that can be sold in various places. This kind of business doesn’t need too much capital to start. One can start it with a minimal amount and still grow it to profitability.
If you are looking to start a soda shop business, then you may want to consider reading the business plan below.
A Sample Soda Shop Business Plan Template
- Business Overview
The counter service soda fountain came into being in 1903, and about that same time, drugstores started to entice noontime consumers by adding sandwiches and light lunches. The beverage menu at a soda shop usually comprised of ice cream sodas, chocolate malts, fountain colas and milkshakes.
Later on during the 1930s and 1940s, teenagers began to gather just so that they could have a taste of the soda drinks. Soda shops besides selling sodas were also often used as settings in films and TV shows. This to a large extent goes to show that everyone was a fan of the soda malt drinks and the entertainers weren’t left out.
Soda shops sell soft drinks that have various ingredients blended into it with artificially carbonated water. Uninterestingly, the 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 drink 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 soda shops 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 has the 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 this industry is 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 shop business in the US would definitely be confronted with tough competition out there. 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 shop 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 stores 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 new startups, you just have to have a long term investment plan if you intend starting your soda pub business.
Soda Shop Business Plan – Executive Summary
Just Soda is an all-time soda shop that will be located on the ground floor of one of the busiest airport facilities in the United States of America – The Los Angeles International Airport, California. We have done our homework and have been able to secure a two-year lease of a vacant shop within the airport’s facility. We are privileged to lock down a facility with an option of renewal for 5 years at an agreed rate.
We are looking to start our soda shop from here because it has the capacity to contain at least over 10 tables and 40 seats, plus sufficient space to accommodate our back office operations, storage rooms and kitchen. We will certify that our soda arena is designed and decorated to attract customers and to make them feel relaxed. The whole idea is to guarantee that if you visited our soda shop just once, you would look forward to visiting us again – any time you are traveling through Los Angeles Airport.
Just Soda is set to give soda lovers the finest of soda they can get in the whole of Los Angeles, California. We propose giving our customers the options to choose from a wide range of finely made sodas in our shop. Just Soda is set to produce an atmosphere where customers can blend with each other in a relaxed environment, whilst delighting in their soda drink.
We are aware that soda shops effortlessly appeal to intellectuals and business people and we also know that the airport is one of the places where these people can be gotten. This and many more are the reasons why we have decided to start the first outlet of our soda shop at the Los Angeles International Airport, which happens to be the second busiest airport in the United States of America.
By and large, we believe that we are not going to struggle to attract customers, but we will continue to strive to build a loyal customer base by offering a great tasting soda in a relaxed and conducive environment.
- Our Product
At Just-Soda, we serve nice soda drinks in various forms to our highly respected customers. We are pretty conscious of the fact that people have the choice of demanding the way they want their soda. This is why we have put in a lot of effort to study and learn how the best soda drinks are made not just in the United States of America, but also in other parts of the world.
Here are some of the products that will be available in our soda shop / bar;
- Soda drinks
- Carbonated drinks
Our Vision Statement
Our vision is to build a soda drinking business that will bring all and sundry together, and at the same time quench their thirsts.
- Our Mission Statement
To establish a soda shop business that will serve varied thirst-quencher drinks to our highly valued customers round the clock in a relaxed and conducive atmosphere.
- Our Business Structure
When it comes to the engagement of employees, we have strategies to only hire the best of hands to work with us. This is necessary because part of our selling point is to ensure that our services are rated high at all times and our shop is openhearted and relaxing.
As our soda shop is going to be situated in a rented facility with limited space for expansion, we have decided to engage the following key employees to help us drive the vision and mission of the organization. This is the structure we intend building our business on;
- Chief Executive Officer (Owner)
- Bar Manager
- Greeters/Customer Service Agent/Table Attendant
Roles and Responsibilities
Chief Executive Officer – CEO:
- 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.
- Answerable for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the restaurant
- Ensures that the soda facility is in tip top shape and conducive enough to welcome customers
- Interfaces with third – party providers (vendors)
- Reports to the Chief Executive Officer
- Attends to Customers complaints and enquiries
- Responsible for Training and Development in the organization
- Responsible for procuring and distribution of beverages and pastries
- Any other duty as assigned by the CEO
- Responsible for preparing different flavors and styles of soda for customers
- Makes lists of supplies in conjunction with the store manager
- Ensures that each cup of soda that leaves the kitchen is tailor made and meets the request of each customer
- Answerable for quality control
- Receives payments on behalf of the store
- Issues receipt to customers
- Prepares financial report at the end of every working week
- Handles all financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Any other duty as assigned by the CEO / shop manager
Greeters / Customer Service Agent / Table Attendant
- Opens door and welcome customers
- Ensures that customers feel relaxed and at home
- Handles customers enquiries
- Takes customers’ orders
- Serve customer
- Any other duty as assigned by the bar manager
- Responsible for cleaning the soda shop facility at all times
- Washes the mugs, spoons and other utensils
- Ensures that toiletries and supplies don’t run out of stock
- Any other duty as assigned by the shop manager
Soda Shop Business Plan – SWOT Analysis
Our intention of starting a soda shop is to test run the business for a period of 3 years to know if we will add money, enlarge the business or sell franchise which is why we are only sticking with just an outlet for now. Notwithstanding the fact that we are running a small scale soda shop business, we still have gone ahead to undertake a SWOT analysis.
We have done this to ensure that we have what it takes to run a soda shop and perhaps even build an international soda brand like the aforementioned brands. Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Just Soda;
Our area of strength at Just Soda is not limited to the location of the shop and also the varieties of soda that we serve, but also extends our excellent customer service and the ambiance of our soda shop.
The supposed flaw for our business could be that we are beginning on a small scale; just one outlet and perhaps because we have a limited space to expand the bar if the need arises.
The fact that we are going to operate our soda shop in one of the busiest airports in the whole of the United States of America provides us with limitless occasions to sell our soda drinks. We are convinced that we may not have to struggle to appeal customers; all we have to do is to uphold the quality of our products and also offer excellent customer services in order to continuously welcome repeat customers.
One of the threats that is likely going to confront us is the guiding principles of the airport authority. If the airport authority decided to close down all the shops within its facility, there is hardly anything we may possibly do about it, other than to look for a shop elsewhere.
Soda Shop Business Plan – MARKET ANALYSIS
- Market Trends
If you are familiar with soda shops in the United States of America, you will quite agree that soda drinking has shown stable growth over the years and from all indications, this growth is not going to nose-dive anytime soon. Soda lovers would always go out of their way if possible to stop by a soda shop to have a drink.
However, the idea of the ideal and prosperous soda shop isn’t just about being well positioned; it is also about offering specialized services that is able to cause an indifferent potential customer into a repeat and loyal coffee consumer.
Although there are limitations to how far we can go when it comes to marketing soda drinks in the airport, but that does not stop us in improvising on ways to generate traffic at our soda shop. Some parts of the marketing and sales strategies that we will adopt include;
- Opening of soda shop in an outstanding style by serving free cups of soda to all those who step into the shop.
- Ensure that we have different types of soda at all times.
- Make use of attractive hand bills to create awareness and also to give direction to potential clients
- Position our signage/flexi banners at strategic places around the airport (subject to permission from the airport authority)
- Advertise our soda shop on local travelling magazines and yellow pages
Our Target Market
Quite a lot of people drink soda and we don’t intend to place restrictions on the type of customers that we intend attracting to our soda store. The fact that our soda shop will be located inside the Los Angeles Airport facility means that our target market can essentially be categorized into 2 groups (Travelers and Airport Workers).
The people we intend selling our products to are;
- Corporate Executives
- Business People
- Sports Men and Women
- Government Officials
- Airport Employees
Our Competitive Advantage
We plan to run an average soda shop business which is why we hired one of the foremost business consultants to work with us in setting up our business. The business consultant we have employed has over 11 years of experience in the soft drink industry and has successfully opened several soda shops in major cities across the United States of America.
So far, he has been able to deliver on key areas and he will continue to work with us on market research, customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities as regard opening other outlets and selling franchises when the need arises.
We are therefore not in doubt that that with all these work that is being put in place, we shall no doubt be a force when we eventually commence operation.
Soda Shop Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Our sources of income for Just- Soda are limited to the sales of different types soda and carbonated drinks. But in the future, we may likely go into the sale of franchise which is going to be an additional source of income for the company.
- Sales Forecast
Our sale forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection based on the location (Los Angeles International Airport) of our soda shop and the traffic that the location attracts every day of the week;
Soda and carbonated drinks
- 1,000 Cups of soda Per Day
Pastries (Sandwich, Bread, Meat Pie, Scotch egg, Pizza, Burger, and Fish Pie et al):
- 1,000 pieces per day
N.B: Please note that thousands of travelers transit through this airport every week, hence there is the likelihood of the soda sale to increase especially when flights are delayed or cancelled and during winter periods. The idea is to attract as many people as possible to our shop.
In view of this, our annual projected sales for Just Soda is put at about $500,000 annually which translates into $254.00 of sales per square foot. This is in line with the industry averages for this size of soda shop in the United States of America. Over and above, as Just Soda gets established, our net profitability will likely increases from 17.06% in the first financial year (FY) to 17.63% in the third financial year (FY).
- Marketing Strategy and Sales Strategy
Just Soda does not intend to spend heavily when it comes to marketing our products that is the reason why we decided to rent a shop in a location that attracts loads of traffic all through the calendar year. The location of our shop is deliberately positioned to attract ample customers with little or no effort from our own part, which is why we do not make provisions for marketing and sales executives in our company’s structure.
In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeat sales from them;
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Position our flexi banners at strategic positions all around the airport facility
- Advertise our soda shop on local travel magazines
- Partner with traveling agencies to refer their clients to our soda shop whenever they are traveling via Los Angeles International Airport
Our Pricing Strategy
When it comes to fixing prices for the range of soda drinks and pastries we sell, we are going to ensure that we set pricing in line with what is available in the carbonated drink industry. We are very aware that we have to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies.
When this is achieved, then our customers will derive real satisfaction when they consume our soda and pastries. We also have plans in place to discount our drinks once in a while and also to reward our loyal customers with free cups of soda.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our plans without any hitches.
Soda Shop Business Plan – Publicity and Advertising Strategy
When it comes to publicity and advertising, we have got a low budget for it simply because our business is located in a place that can easily attract the customers we would need with little or no stress on our own part.
But for the fact that we hope to some day in the near future start selling our franchise, we have decided to create a budget for publicity and advertisement for the major aim of introducing our brand in the market place. Everything that we will do in this regard is geared towards communicating our brand.
Here are the platforms we intend leveraging on to promote and advertise our business;
- Place adverts in both print (travel magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
- Install our billboards in strategic locations
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions around the airport
Startup Expenditure (Budget)
This is the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in Los Angeles: $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
- Marketing promotion expenses for the grand opening of Just Soda 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.
- Cost for hiring Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $52,800.
- Cost for Shop remodeling – $10,000.
- 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) – $60,000
- The cost for start-up inventory – $16,027
- Soda recipes (12 regular brands) – $6,000
- Retail supplies (napkins, soda bags, cleaning, etc.) – $1,840
- The cost for office supplies (one month) – $287
- Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
- Storage hardware (bins, utensil rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for serving area equipment (plates, glasses, flatware) – $3,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Office equipment and furniture – $3,600
- 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: $5,000
- Miscellaneous: $2,500
We would need an estimate of about $132, 900 to successfully set up our soda shop business. The amount includes the salary of all employees and the CEO (Owner) for 3 months.
Generating Funding/Startup Capital for Just Soda
Our business is a private business that is solely owned by Mr. Atkins and he does not have the intention of welcoming any external partners except immediate family members which is why he has decided to restrict the sourcing of his 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 $60,000 (Personal savings $40,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $80,000 from our 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.
Soda Shop Business Plan – Sustainability and Expansion Strategy
Our plans of establishing Just Soda is basically to test run the soda shop business and we have decided to start our first outlet in a busy location – the Los Angeles Airport. Although we don’t have the intention of running chains of soda shops in different airports, but we would be selling franchises in the nearest future.
- 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 shop and remodeling the shop: 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, electronic appliances, office appliances and coffee brewing equipment: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the airport facility: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Compilation of our list of products and detailed recipe: Completed
- Establishing business relationship with vendors – suppliers of all our needed raw materials: In Progress