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Sandwich Shop Business Plan
Do you want to start sandwich shop business plan?
Do you want to start a sandwich shop? Well, the business is trendy and can surely help you in making a considerable profit, provided that you manage to overcome the huge competition ahead of you.
To strive among the well-known names in this and the related businesses, you have to come up either with unique ideas or a really strategic location. In any case, the first step will be to plan your business. So, if you need guidance regarding how to open sandwich shop, you can take help from this sample business plan of a sandwich business startup named, ‘Dallas Grills’.
2.1 The Business
Dallas Grills will be owned by Helena Walters, located in Dallas. It will basically a sandwich shop offering a variety of subs, burgers, and salads, with the facility of sitting inside, as well as buy and take away.
Sandwich businesses need a defined plan to manage things like buying fresh and quality ingredients, preparing sandwiches and advertising to take the audience attention. In her sandwich shop business plan, Helena has decided to supervise the task of preparing eatables by herself and to hire a manager to manage operations other than preparation of food items.
Fortunately, we’ll be having our customers of every age group, living near our shop, working in the offices near us, students and passersby. In this sandwich shop business plan example, we, later on, will express the ways and competitive edges we’ll adopt to gain these customers.
2.4 Target of the Company
Our target will be to meet the standards of our customers and to be the best and most visited sandwich shop in the whole Dallas.
3.1 Company Owner
Helena Walters has diplomas in various kitchen related services from the International Culinary Center. She has worked for one year in a restaurant and has gained enough fame because of the dexterity she has.
3.2 Why the Business is being started
Helena is starting this business to present and enhance her skills in the food industry while making considerable earnings.
3.3 How the Business will be started
After making a detailed business plan for a sandwich shop, Helena will rent the space for her shop, hire the general manager and two assistants to help her in making required arrangements, advertisement and hiring other staff. Our startup summary is as follows:
|Research and Development||$32,750|
|TOTAL START-UP EXPENSES||$187,300|
|Other Current Assets||$232,500|
|Start-up Expenses to Fund||$11,875|
|Start-up Assets to Fund||$15,000|
|TOTAL FUNDING REQUIRED||$0|
|Non-cash Assets from Start-up||$18,750|
|Cash Requirements from Start-up||$0|
|Additional Cash Raised||$18,750|
|Cash Balance on Starting Date||$21,875|
|Liabilities and Capital||$0|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$695,000|
|Loss at Start-up (Start-up Expenses)||$313,125|
|TOTAL CAPITAL AND LIABILITIES||$251,875|
The services provided by Dallas Grills are enlisted with a little detail in this burger house business plan.
- Variety of sandwiches including Bacon Sandwich, Cheese Sandwich, Grilled Cheese Sandwich, Tuna Sandwich, Clam Roll Sandwich, Club Sandwich, Patty Melt Sandwich, Italian Hero Sandwich, Breakfast Sandwich, and Cheese Steak Sandwich.
- Ham Burger and Onion Smashed Burger
- Soft Drinks
Our customers can enjoy our quality and delicious product while sitting inside the cafe or by taking away with them. They can also order us online to avail our home delivery services.
Marketing Analysis of Bookkeeper Business
Before starting up a sandwich business, it is very important to study the demographics of the market in which you will be serving, especially if you are setting up a sandwich bar in a big city. As there are many big names in the food business which have completely established by the course of time. So, you must be careful that you are choosing a place with no or at least fewer restaurants.
So, your success story for a sandwich bar depends upon the effectiveness of your sandwich business plan. To make an effective hamburger business plan, make sure that you are having this task done by a professional marketing analyst.
5.1 Marketing Segmentation
Instead of thinking how to start a sandwich bar, first, find out that who will be your customers. The way you will pave to meet their demands will surely answer your queries about how to start this new venture.
Dallas Grills has identified the following groups as our potential customers.
5.2.1 General Traffic: Our major customers will be the people who happen to pass by our cafe and decide to stay for a while to eat something. They will surely have a variety to choose the sandwich of their choice. Our food and the best environment will surely leave them with an exciting experience.
5.2.2 Students and Employees: The second biggest category of our target customers will comprise of the people who are either studying in the educational institutes near us or are working in a nearby office. We expect them to visit our shop in their lunchtime solo or with friends and have a great time while filling their appetite.
5.2.3 Local Residents: Despite being located in the commercial zone; we are not still far away from the residential community. So, the last category of our target customers will be the community living near to us. They are not only expected to come to our shop but also to avail our home delivery services.
The detailed market analysis of our potential customers is given in the following table:
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Students & Employees||48%||22,334||32,344||43,665||52,544||66,432||10.00%|
5.3 Business Target
Our target is to be the best and most renown sandwich center in whole Dallas. We also expect to open another branch within three years of the launch. Moreover, we aim at earning a profit margin of $10k per month by the end of the first year.
5.4 Product Pricing
Our prices are almost the same as our competitors as maintaining the quality of our products would not be possible if we have to compromise on prices. We believe that after trying our services for the first time, our customers will not mind spending cash over quality services.
After making the sandwich marketing plan, the next step is to create a strategy to target the identified customers. When you are starting your sandwich stand business, people don’t know about you in the initial stages. So, you have to identify the ways in your sandwich restaurant business plan through which you can gain customers.
Very big names and fully established businesses will be there in our competition. Thus, Dallas Grills has come up with superb competitive edges and advertisement plan. You can take help from it even when you are looking for small sandwich shop business plan.
6.1 Competitive Analysis
Our biggest competitive advantage is our location. We are located in the commercial zone, nearer to educational institutions, residential community and above all linked with the streets which are thronged up with passersby even in early mornings and late nights.
Secondly, we’ll have a comfortable place to sit for our customers from where they can also see us preparing sandwiches for them. Our taste will be unique and people who will try our services for one time will surely come to us for the second time. Lastly, we’ll offer a home delivery service by receiving online payment through our website.
6.2 Sales Strategy
To advertise our services:
- We’ll have large billboards outside our cafe demonstrating our delicious foods while increasing the appetite of spectators
- We’ll carry out a campaign on social media through the pictures of our cafe, our foods, and the feedback of our customers
- We’ll be offering a 35% discount for the first two days of our launch
- We’ll send our delicious sandwiches to various companies and businesses located near us to get introduced
6.3 Sales Forecast
We expect our sales to increase by years due to the quality and taste we’ll be providing. Our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.
The detailed information about sales forecast, total unit sales, total sales is given in the following table:
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||3,494,170||4,588,370||4,807,410|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$1,294,100||$1,699,400||$2,104,700|
6.4 Sales Monthly
6.5 Sales Yearly
In this sandwich bar business plan, the staff, Dallas Grills will need is enlisted with a little detail. If you are starting a sandwich shop or a proper restaurant you can take help from it.
7.1 Company Staff
To ensure the proper quality and taste which Helena want to introduce through her sandwich bar, she has decided to supervise the food preparatory tasks by herself. Other staff which she’ll hire is as follows:
- 1 Manager to manage overall operations of Dallas Grills
- 4 Chefs to make sandwiches, burgers, and salads
- 3 Waiters to serve and to perform packaging service
- 1 Cashier to receive cash from the people
- 1 Accountant to maintain financial records
- 2 Drivers to perform home delivery services
- 2 Cleaners to clean the dishes and facility
- 2 Sales Executives responsible for advertising restaurant
- 1 IT Expert to manage Dallas Grills’ website and social site
7.2 Average Salary of Employees
The following table shows the forecasted data about employees and their salaries for the next three years.
|Year 1||Year 2||Year 3|
Although starting a sandwich shop doesn’t require large investments, but still, the financial plan should not be ignored in starting a sandwich shop business plan. Your financial plan should envisage how you will be able to earn the expected profits and how you will be able to achieve your financial goals within the time period set by you.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||11.00%||12.00%|
|Long-term Interest Rate||10.00%||10.00%||10.00%|
8.2 Brake-even Analysis
|Monthly Units Break-even||5530|
|Monthly Revenue Break-even||$159,740|
|Average Per-Unit Revenue||$260.87|
|Average Per-Unit Variable Cost||$0.89|
|Estimated Monthly Fixed Cost||$196,410|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$15,100||$19,153||$23,206|
|TOTAL COST OF SALES||$15,100||$19,153||$23,206|
|Gross Margin %||94.98%||94.72%||94.46%|
|Sales and Marketing and Other Expenses||$1,850||$2,000||$2,150|
|Total Operating Expenses||$188,766||$220,744||$252,722|
|Profit Before Interest and Taxes||$105,205||$146,040||$186,875|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$7,023||$8,610||$9,297|
|SUBTOTAL CASH FROM OPERATIONS||$47,143||$53,651||$59,359|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$47,143||$53,651||$55,359|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$35,296||$39,549||$43,582|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$35,296||$35,489||$43,882|
|Net Cash Flow||$11,551||$13,167||$15,683|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$201,259||$237,468||$273,677|
|TOTAL LONG-TERM ASSETS||$980||$610||$240|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$9,482||$10,792||$12,102|
|TOTAL LIABILITIES AND CAPITAL||$198,839||$232,978||$267,117|
8.6 Business Ratios
|Year 1||Year 2||Year 3||Industry Profile|
|Percent of Total Assets||4.35%||4.71%||5.80%||9.80%|
|Other Current Assets||1.75%||2.02%||2.29%||27.40%|
|Total Current Assets||138.53%||150.99%||163.45%||54.60%|
|Percent of Sales|
|Selling, General & Administrative Expenses||74.29%||71.83%||69.37%||65.20%|
|Profit Before Interest and Taxes||26.47%||29.30%||32.13%||2.86%|
|Total Debt to Total Assets||2.68%||1.04%||0.76%||67.10%|
|Pre-tax Return on Net Worth||66.83%||71.26%||75.69%||4.40%|
|Pre-tax Return on Assets||64.88%||69.75%||74.62%||9.00%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||19.20%||21.16%||23.12%||N.A.|
|Return on Equity||47.79%||50.53%||53.27%||N.A.|
|Accounts Receivable Turnover||4.56||4.56||4.56||N.A.|
|Accounts Payable Turnover||14.17||14.67||15.17||N.A.|
|Total Asset Turnover||1.84||1.55||1.26||N.A.|
|Debt to Net Worth||0||-0.02||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$120,943||$140,664||$160,385||N.A.|
|Assets to Sales||0.45||0.48||0.51||N.A.|
|Current Debt/Total Assets||4%||3%||2%||N.A.|
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