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 real strategy for the business 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’.

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Executive Summary

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.

2.2 Management

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.

2.3 Customers

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

3 Years Profit Forecact - sandwich shop business plan

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.

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Helps the franchisee get business case approval from the franchisor

Company Summary

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

Startup Cost - sandwich shop business plan

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:

Start-up Expenses 
Research and Development$32,750
Expensed Equipment$32,750
Start-up Assets$0
Cash Required$332,500
Start-up Inventory$32,625
Other Current Assets$232,500
Long-term Assets$235,000
Total Requirements$245,000
Start-up Expenses to Fund$11,875
Start-up Assets to Fund$15,000
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
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$332,500
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313,125
Total Funding$255,000
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    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
    • Salads
    • 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 shop business plan. To make an effective hamburger business plan, make sure that you are having this task done by a professional marketing analyst.

    UK Start-Up Visa Business Plan

    5.1 Marketing Segmentation

    Marketing Segmentation - sandwich shop business plan

    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.

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    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:

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    General Traffic32%11,43313,34416,55318,74520,54513.43%
    Students & Employees48%22,33432,34443,66552,54466,43210.00%
    Local Residents20%12,86714,43315,99917,56519,13115.32%

    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.


    Marc Jacobs

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    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

    Unit Sales - sandwich shop business plan

    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:

    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Soft Drinks265,450322,390393,320
    TOTAL UNIT SALES3,494,1704,588,3704,807,410
    Unit PricesYear 1Year 2Year 3
    Soft Drinks$650.00$750.00$850.00
    Soft Drinks$139,350$194,600$249,850
    Direct Unit CostsYear 1Year 2Year 3
    Soft Drinks$3.00$3.50$4.00
    Direct Cost of Sales   
    Soft Drinks$19,400$67,600$115,800
    Subtotal Direct Cost of Sales$1,294,100$1,699,400$2,104,700

    6.4 Sales Monthly Sales Monthly - sandwich shop business plan

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    6.5 Sales Yearly Sales Yearly - sandwich shop business plan

    Personnel plan

    In this sandwich shop 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.

     Personnel Plan   
     Year 1Year 2Year 3
    Sales Executives$63,300$70,000$76,700
    IT Expert$85,000$92,000$109,000
    Total Salaries$784,300$855,600$963,700

    Financial Plan

    Although starting a sandwich shop doesn’t require a large investment group for a business plan, 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

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate10.00%11.00%12.00%
    Long-term Interest Rate10.00%10.00%10.00%
    Tax Rate26.42%27.76%28.12%

     8.2 Brake-even Analysis Brake-even Analysis - sandwich shop business plan

     Brake-Even Analysis 
    Monthly Units Break-even5530
    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

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     Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Direct Cost of Sales$15,100$19,153$23,206
    TOTAL COST OF SALES$15,100 $19,153 $23,206
    Gross Margin$293,969$366,781$439,593
    Gross Margin %94.98%94.72%94.46%
    Sales and Marketing and Other Expenses$1,850$2,000$2,150
    Leased Equipment$0$0$0
    Payroll Taxes$34,510$40,726$46,942
    Total Operating Expenses$188,766$220,744$252,722
    Profit Before Interest and Taxes$105,205$146,040$186,875
    Interest Expense$0$0$0
    Taxes Incurred$26,838$37,315$47,792
    Net Profit$78,367$108,725$139,083
    Net Profit/Sales30.00%39.32%48.64%

    8.3.1 Profit Monthly Profit Monthly - sandwich shop business plan 8.3.2 Profit Yearly Profit Yearly - sandwich shop business plan 8.3.3 Gross Margin Monthly Gross Margin Monthly - sandwich shop business plan 8.3.4 Gross Margin Yearly Gross Margin Yearly - sandwich shop business plan 8.4 Projected Cash Flow Projected cash Flow - sandwich shop business plan

     Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$40,124$45,046$50,068
    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
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$21,647$24,204$26,951
    Bill Payments$13,539$15,385$170,631
    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
    Cash Balance$21,823$22,381$28,239

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$12,613$14,493$16,373
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$201,259 $237,468 $273,677
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$12,420$14,490$16,560
    TOTAL LONG-TERM ASSETS$980 $610 $240
    TOTAL ASSETS$198,839 $232,978 $267,117
    Liabilities and CapitalYear 1Year 2Year 3
    Current Liabilities   
    Accounts Payable$9,482$10,792$12,102
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$9,482 $10,792 $12,102
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$9,482 $10,792 $12,102
    Paid-in Capital$30,000$30,000$30,000
    Retained Earnings$48,651$72,636$96,621
    TOTAL CAPITAL$189,360 $222,190 $255,020
    TOTAL LIABILITIES AND CAPITAL$198,839 $232,978 $267,117
    Net Worth$182,060$226,240$270,420

      8.6 Business Ratios

     Ratio Analysis    
     Year 1Year 2Year 3Industry Profile
    Sales Growth4.35%30.82%63.29%4.00%
    Percent of Total Assets4.35%4.71%5.80% 9.80%
    Accounts Receivable5.61%4.71%3.81%9.70%
    Other Current Assets1.75%2.02%2.29%27.40%
    Total Current Assets138.53%150.99%163.45%54.60%
    Long-term Assets-9.47%-21.01%-32.55%58.40%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.68%3.04%2.76%27.30%
    Long-term Liabilities0.00%0.00%0.00%25.80%
    Total Liabilities4.68%3.04%2.76%54.10%
    NET WORTH99.32%101.04%102.76%44.90%
    Percent of Sales    
    Gross Margin94.18%93.85%93.52%0.00%
    Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
    Advertising Expenses2.06%1.11%0.28%1.40%
    Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
    Main Ratios    
    Total Debt to Total Assets2.68%1.04%0.76%67.10%
    Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
    Pre-tax Return on Assets64.88%69.75%74.62%9.00%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin19.20%21.16%23.12%N.A.
    Return on Equity47.79%50.53%53.27%N.A.
    Activity Ratios    
    Accounts Receivable Turnover4.564.564.56N.A.
    Collection Days9299106N.A.
    Inventory Turnover19.722.5525.4N.A.
    Accounts Payable Turnover14.1714.6715.17N.A.
    Payment Days272727N.A.
    Total Asset Turnover1.841.551.26N.A.
    Debt Ratios    
    Debt to Net Worth0-0.02-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$120,943$140,664$160,385N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.450.480.51N.A.
    Current Debt/Total Assets4%3%2%N.A.
    Acid Test23.6627.0130.36N.A.
    Sales/Net Worth1.681.290.9N.A.
    Dividend Payout000N.A.

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