Gelato Mobile Business Plan
April 8, 2009
ENGAGING SASKATOON’S ONLINE-SAVVY
RESIDENTS AND THEIR TASTEBUDS
Business Plan Submitted By:
Stephen Leask
Arvind Kumar
Stephanie Hughes
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Executive Summary
Gelato Mobile is a new and innovative way to market and sell gelato to Saskatoon. Gelato
Mobile is exactly what the name implies: it’s mobile, and offers delicious gelato to customers all
over Saskatoon. Gelato Mobile will offer 12 flavours of gelato on any given day. The location of
Gelato Mobile will depend on events scheduled around Saskatoon, as well as any high
pedestrian traffic areas that appear attractive and conducive to sales. The mobility factor of this
business plan is one of the key advantages. Gelato Mobile offers convenience and a unique
purchasing experience to its customers. By targeting events and high traffic areas, consumers
can purchase a great product without having to make a separate trip to a given location.
One of the key factors in this business plan is the marketing and promotion of the business. The
marketing is heavily based on a newer concept referred to as “social media”. This type of
marketing, which relies on the internet and mobile communications, has been rapidly
increasing in popularity over the past few years. The ability of the business to use social media
marketing techniques is almost as important as the product the business sells. Gelato Mobile is
not only selling Gelato, but an experience. Consumers will be actively engaged in the sales
process. Gelato Mobile will capitalize and promote social media techniques in an effort to
capture market share in Saskatoon.
Start up costs for Gelato Mobile will be about $6,000. Each of the 3 owners will contribute to
this evenly. This capital will be used to purchase initial inventory and help with expenses
occurred in the first month. No debt funding will be required due to the small size of the
business operation. Should the business require more capital, each owner will contribute
evenly. Based on the financial projections calculated, Gelato Mobile will be profitable,
averaging an annual net income of about $8,813 over the next five years, based on an annual
increase of 5% in sales.
Strategic use of social media marketing, careful cost control, and a fantastic product should
enable Gelato Mobile to be a successful small business opportunity.
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Table of Contents
Executive Summary ..................................................................................................................................... iii
1.0
Introduction ...................................................................................................................................... 3
1.1 Food Industry, Social Media Phenomenon & Social Media Marketing .............................................. 3
1.2 Mission Statement .............................................................................................................................. 5
1.3 Goals and Objectives........................................................................................................................... 5
2.0 Operations Plan....................................................................................................................................... 5
2.1 Location ............................................................................................................................................... 6
2.2 Floor Plan ............................................................................................................................................ 6
2.3 Average Business Cycles ..................................................................................................................... 7
2.3.1 Average Day ................................................................................................................................. 7
2.3.2 Average Week .............................................................................................................................. 8
2.3.3 Average Month ............................................................................................................................ 8
2.3.4 Average Year ................................................................................................................................ 8
2.4 Supply Analysis .................................................................................................................................... 9
2.5 Capital & Net Working Capital Budget ................................................................................................ 9
2.6 Operating Expense .............................................................................................................................. 9
2.7 Cost of Goods .................................................................................................................................... 10
3.0 Human Resource Plan ........................................................................................................................... 10
3.1 Job Descriptions ................................................................................................................................ 10
3.1.1 Owners ....................................................................................................................................... 10
3.1.2 Operational Staff ........................................................................................................................ 11
3.2 Scheduling ......................................................................................................................................... 12
3.3 Labour Costs Breakdown .................................................................................................................. 12
3.4 Training Programs ............................................................................................................................. 13
4.0 Marketing .............................................................................................................................................. 13
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April 8, 2009
4.1 Marketing Introduction..................................................................................................................... 13
4.1.1 Product ....................................................................................................................................... 13
4.1.2 Pricing......................................................................................................................................... 14
4.1.3 Promotion .................................................................................................................................. 14
4.1.4 Place ........................................................................................................................................... 15
4.1.5 Segmentation, Targeting, and Positioning ................................................................................. 16
4.2 Market Analysis ................................................................................................................................. 17
4.4 Marketing Strategy ........................................................................................................................... 18
4.5 Selling and Advertising ...................................................................................................................... 19
5.0 Financial Plan ........................................................................................................................................ 21
Table 5.1 Base case / Worst case / Best case Scenario variables ....................................................... 22
Table 5.2 Base case / Worst case / Best case Scenario results ........................................................... 22
Table 5.3 Summary of Financial Data ................................................................................................. 22
6.0 Conclusion ............................................................................................................................................. 23
Appendix A: Supplier Letters of Agreement
Appendix B: Facebook and Twitter Screen Shots
Appendix C: Competitive Industry Analysis
Appendix D: Saskatoon Events Calendar
Appendix E: Yearly Financial Projections
Appendix F: Assumptions
Appendix G: 2006 Industry Canada Small Business Profile for Mobile Food Services in Saskatchewan
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1.0 Introduction
1.1 Food Industry, Social Media Phenomenon & Social Media Marketing
The food industry in Saskatoon is somewhat diverse, with a variety of restaurants, fast food
places and shops to obtain anything from breakfast burritos and mouth-watering muffins to
Vietnamese bun and delectable desserts.
As in any food service establishment, ice cream places usually warrant about a 70% gross
margin, with an average ticket per person of $3.00-$5.60.1 In addition, start up costs can range
from $50,000-$250,000 depending on location and equipment, and fixed costs usually depend
on square footage.2 Typical of Saskatoon food establishments, more than just the quality of the
food is key: it’s the atmosphere, cleanliness, and customer experience that contribute to a
successful business.3
As for the Mobile Food Services industry, a 2006 Industry Canada Small Business Profile
indicated 1230 businesses in Saskatchewan.4 Saskatoon’s portion of these businesses is
approximated at 2535 (21%, assuming there is a correlation between high concentrated
population areas and number of businesses). From the report (see Appendix G), 79.2% of the
businesses are profitable, showing a net profit of 19.2% of total revenue.
Social media marketing, the basis of Gelato Mobile’s marketing, and business, strategy stems
from social media. Since it is relatively new and ever-evolving, a clear definition of social media
does not truly exist. However, social media can be defined as the “editor-less content
prioritized by popularity”6, “information content created by people using highly accessible and
scalable publishing technologies [. . .] intended to facilitate communications, influence
1
http://answers.yahoo.com/questions/index?qid=20070924111911AA4eM55
Ibid
3
Ibid
4
http://www.ic.gc.ca/app/sbp/prfpls/prfl/rprtStp/sv.do;jsessionid=0000ZslYz__NEm3c5AHPr8C13rF:1247mpv0c
5
Equals 2006 Saskatoon population of 202340 (http://www12.statcan.ca/english/census06/data/trends/
Table_1.cfm?T=CSD&PRCODE=47&GeoCode=11066&GEOLVL=CSD) divided by 2006 SK population of 985386
(http://www.stats.gov.sk.ca/pop/POP%20AGE%20GENDER%202006.pdf) multiplied by 1230
6
http://www.nudgelondon.com/blog/2008/07/define-social-media/
2
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April 8, 2009
interaction between peers and with public audiences [, . . .] typically done via the Internet and
mobile communications networks.”7 Also, social media “most often refers to activities that
integrate technology, telecommunications and social interaction”8 with [t]his interaction, and
the manner in which information is presented, depends on the varied perspectives and
"building" of shared meaning among communities, as people share their stories and
experiences.”9
Visit the following link for a You Tube video that explains “Social Media in Plain English”,
using ice cream production as an analogy for social media:
http://www.youtube.com/watch?v=MpIOClX1jPE
The social media phenomenon has caught fire in the past few years, and is now being adopted
by a variety of businesses to reach and engage customers. In the past year, “consumers’ use of
social media grew 48%”10 and “49% of consumers [interviewed] who use the Internet
technology do so at least once a day.”11 This ever growing use, and repetitive use, makes an
attractive two-way channel to reach people; in fact, “61% turn to social media when researching
potential purchases, with 31% saying they find the online sources more credible than
advertising.”12 Businesses have now caught on to exploiting social media which has led to the term
social media marketing to be dubbed. Social media marketing is “[u]tilizing social networking and
user-generated content platforms to promote a product, service or content [which] [o]ften
involves creating and participating in a dialogue with the target audience, rather than forcing
an advertisement upon them. [. . .] When approached properly, social networks can be
extremely effective channels for building product evangelism, reputation management or
corporate branding.”13
7
http://en.wikipedia.org/wiki/Social_media
Ibid
9
Ibid
10
http://www.upi.com/Top_News/2009/04/06/So-called-social-media-soaring-in-Canada/UPI-84441239050428/
11
Ibid
12
Ibid
13
http://www.yoursearchadvisor.com/glossary.php
8
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1.2 Mission Statement
To be innovative in the Saskatoon mobile food industry by combining the uniqueness of gelato
with the ever-growing trend and business strategy of social media marketing, to fully engage
the customer throughout the entire consumer process.
1.3 Goals and Objectives

Serve a niche market in Saskatoon with a unique, healthier alternative

Provide Saskatoon with social media experience, engaging customers in the purchasing
process

Provide University of Saskatchewan Edwards School of Business co-op and high school
students an integrated business opportunity

Maximize sales at $77,859 by Year 2013

Achieve average monthly sales of $ 1,540 between May and September
2.0 Operations Plan
Gelato Mobile will be a retail initiative, selling gelato products to a Saskatoon market who want
an engaging purchasing experience through use of social media (Facebook, Twitter). Sales will
be based on one-on-one direct interaction through the window at the mobile unit, with this
traffic generated through social media channels. Staff will be Facebook / Twitter enthusiasts
and will be well trained on all aspects of this special gelato experience.
Gelato Mobile’s hours will be as follows:
Store Hours
Wednesday - Friday
11:00AM to 9:00PM
Saturday - Sunday
10:00AM to 9:00PM
Gelato Mobile will operate only on the weekends during the month of May and September;
however, June through August, the above hours will be in effect. Gelato Mobile will not operate
Monday and Tuesday, to allow for cleaning, any maintenance, review of traffic statistics and
planning.
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April 8, 2009
To provide a high level of customer service by managing customer flow, two employees will be
working in peak times (12pm – 6pm). In down times, the employees will be responsible for
analyzing traffic generated through various channels (i.e. Twitter, Facebook, etc) and providing
reports to Management. Traffic numbers will be recorded through the following:

Facebook ad click-through rates

Facebook Fans in Gelato Mobile Page

At unit site, for Twitter feeds generating immediate traffic (i.e. Gelato Mobile is at the
Centre Mall – first person to come up and say “Twitter” gets 2 free gelatos).
2.1 Location
Mobile by name, mobile by nature, Gelato Mobile will travel about Saskatoon, targeting
different high traffic areas, including major events (i.e. Prairieland Park for The Ex, car shows –
see Appendix X). A mobile unit was chosen rather than a stationary building due to the social
media integration in creating so much more than just another “ice cream truck.” Travel will be
partially determined based on Facebook / Twitter messages. Other factors influence location
choices are as follows:
1. Easy accessibility to pedestrian / car traffic
2. Visibility and neatness of the site
3. Unique shopping district
4. Synergy based on other food stores in the area
2.2 Floor Plan
The floor plan of the Gelato Mobile trucks is designed to allow for adequate storage for gelato,
cones, cups, spoons, napkins, a cash till, and a revolving passenger seat for the employees to
use during non-peak times for administration tasks. The floor plan is also designed to allow staff
to quickly access the product and to easily move around to quickly serve customers. The layout
can be seen below.
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The serving window will be located on one side of the unit to allow for good traffic flow,
efficient customer transactions, and for quick customer service for newly arriving customers.
On average, the unit will have three days’ worth of inventory stock piled in the freezers located
in the unit.
2.3 Average Business Cycles
2.3.1 Average Day
A typical day for Gelato Mobile would start before opening the service counter as per the predecided schedule/location for the unit. Every night before closing, staff will go through the preopening check list and get the unit ready for opening next day. This list may include interior
signage, cleaning, and checking inventory. Once the counter is open for sales, staff will simply
take the orders from customers and delight them with delicious gelato, friendly service and
satisfaction for finding the Gelato Mobile. It is anticipated that noon to early evening will be the
busiest time, especially on the weekends, while before noon and late in the evening will be
slower. During less busy times, one staff (the high school student) will be required to restock
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supplies and maintain a clean sales environment in and around the bus. At the end of each
business day, this employee will be expected to clean the shop including sweeping the floor and
wiping the counters for any spills, etc. The Manager (Co-op student) will be responsible for
performing the daily cash outs and making any bank deposits as necessary. In addition s/he will
also be responsible for basic bookkeeping and marketing.
2.3.2 Average Week
Every third day, the manager will assess the week’s sales and inventory levels and submit an
order to the Jerry’s (the supplier) to restock inventory. Inventory will be restocked in the
morning by driving to Jerry’s. A weekly special will be determined during the week to be
announced for the following week. The Manager will also do payroll twice a month.
2.3.3 Average Month
The operations will be very similar on daily, weekly, and monthly basis for many aspects.
However, at some point the Manager will need to generate and analyze monthly financial and
sales statement, and submit reports to the owners. This analysis will be used to assess the
business and adjust the marketing focus and supplies as required. In addition the manager will
also be doing monthly environmental analysis to find out trends in the gelato and ice cream
industry in Saskatoon.
2.3.4 Average Year
The Manager will need to produce season-end financial statements, for review by the Owners.
A complete analysis of Gelato Mobile will be carried out by the Owners to look into marketing,
sales, HR issues, and any issues that may arise. The environmental analysis will be compared
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April 8, 2009
with previous years of operation. This analysis should indicate if any change in the business and
marketing strategy is required.
2.4 Supply Analysis
All supplies (gelato, spoons, napkins, cups, cones) will be directly procured from a reliable and
quality manufacturer/distributor (Jerry’s) to reduce costs. Gelato is purchased from Jerry’s Food
Emporium in Saskatoon at a wholesale price of $88 per 11.4 L pail. The mobile unit will be
obtained from a rental company in Regina. Appendix A contains the supplier letters of
agreements, with conditions and details of the agreements, for the ice cream truck rental, the
gelato, cones, cups and spoons.
2.5 Capital & Net Working Capital Budget
The capital budget for Gelato Mobile is nil, since no capital expenditures are incurred. The total
net working capital required for this business is approximately $6000 ($2000 from each of the 3
owners). The majority of this net working capital will be used for inventory and salary expenses
in the first few months. Account Receivables is nil as all sales will be on cash/debit basis.
Accounts Payable is based on purchasing of the sales goods from suppliers, also on a cash basis.
2.6 Operating Expense
Gelato Mobile will be open 5 days a week (Wednesday-Sunday), June through August,
weekends in May and September, and Victoria Day (May) and Labour Day (September). Hours
may be adjusted during special events throughout the season. The anticipated operating costs
for the first year of operation are listed below.
Fixed Overhead Costs
Truck Rental
$3,250
Insurance
$1,000
Business License
$100
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Business Incorporation Fee
$265
Telephone/Internet
$450
Total Fixed Overhead
$5,065
Total Overhead
$9,826
2.7 Cost of Goods
The cost of goods for the gelato includes the price of gelato, and cones or spoons and cups, and
napkins.
Item
Unit Cost
Units Purchased
Total Cost
$88
202
$17,724
Cups
$0.25
8,864
$2,216
Cones
$0.20
8,860
$1,772
Spoons
$0.05
17,724
$886
Napkins
$0.15
17,724
$2,659
Ice-cream
Total $25,257
3.0 Human Resource Plan
3.1 Job Descriptions
3.1.1 Owners
Stephanie Hughes, Stephen Leask, and Arvind Kumar will be the owners and General Managers
of Gelato Mobile Inc. Each will have 33.3% of stake in the company and thus also will share the
responsibilities at same level. Their duties would include the following:
-
Oversee coordination of the scheduling of employees;
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-
Fill in if any employee quits or get sick;
-
Weekly meetings with staff to review business and peripheral issues;
-
Work with staff in any procurement or other problems;
-
Cash outs and deposits as needed, book-keeping and payroll duties when Supervisor is
on leave.
3.1.2 Operational Staff
Gelato Mobile will need to employ 2 full time employees. One direct-sales staff will be a co-op
student from the University of Saskatchewan and the other will be a high school student;
individuals that may have some or little experience in selling ice-creams, and are daily engaged
in social media. Great customer service and delivery on Twitter / Facebook contest and location
promises will be key to satisfying customers. The Operational Staff will report directly to the
Owners. Their duties will include the following:
Co-op Student (Supervisor)
-
Order inventory every third day (or as needed) to maintain proper inventory levels;
-
Bookkeeping and payroll duties;
-
Direct sales to customers;
-
Cash outs and deposits as needed;
-
Answer any general questions that may arise from the customer;
-
Restocking of inventory
High School Student (Assistant)
-
Direct sales to customers;
-
Answer any general questions that may arise from the customer;
-
Restocking of inventory
-
Daily cleaning
-
Anything else that the Supervisor asks him/her to do, including assessment of social
media traffic reports
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Both the Supervisor and Assistant will require a class 5 license to operate the mobile unit.14 As an
incentive for the operational staff, they and their immediate family will be allowed to purchase gelato
for personal consumption at cost plus 10%.
3.2 Scheduling
To maintain a high level of customer service to their customers, Gelato Mobile will have two
employees at the peak hours of operations. This will allow for better customer service as well
as allow for staff to take breaks. The two hourly employees will each work 40 hours per week
and they will close up the shop and park the truck at Jerry’s every night. Employees will be paid
through their lunch breaks, because they might have to respond to customer needs and not be
able to take their full breaks.
3.3 Labour Costs Breakdown
The 5 year projection for labour costs is shown below. The figures are based on the two directsales staff working 40 hours per week each.
2009
2010
2011
2012
2013
Total Labour Wages
Wage
Hours per worker
$
12.50
$
12.81
$
13.13
$
13.46
$
13.80
640
640
800
800
825
Total wages (Wage x Hrs x Staff)
$16,000
$16,400
$21,013
$21,538
$22,766
Total Direct Labour
$16,000
$16,400
$21,013
$21,538
$22,766
Employment Insurance
$493
$505
$647
$663
$701
Canada Pension Plan
$752
$771
$988
$1012
$1070
Holiday Pay
$928
$951
$1,219
$1,249
$1,320
Workers Compensation
$480
$492
$630
$646
$683
$2,653
$2,719
$3,484
$3,571
$3,775
Benefits for Labour
Total Benefits for Wage-Earning Employees
Total Direct Labour + Benefits
14
18,653
19,119
24,496
25,109
26,541
As stipulated by SGI, www.sgi.ca
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Owners Compensation
As indicated in the Income Statement, owners will be compensated with any profits that occur from
normal business operations. Startup capital of $6,000 will be left in the business at all times. Profits will
be split evenly between the three owners.
3.4 Training Programs
Minor training will be needed for Gelato Mobile, regarding scoop size, how to maintain the cold
plates and drive the truck. By hiring a co-op student, Gelato Mobile will benefit from lower-cost
salary, yet gain a young business student who has gained Management knowledge, and who
regularly uses social media. Training may need to occur each year, depending on retention of
the high school and co-op students. However, despite the high turnover, one of Gelato Mobile’s
objectives is to provide an integrated business opportunity to students, which by nature
recognizes turnover is inevitable. As for the Owners, they all are MBA Candidates and have
diverse experience in business planning and operations. Resumes are available for the Owners
upon request.
4.0 Marketing
4.1 Marketing Introduction
4.1.1 Product
While Gelato Mobile will offer a range of mouth-watering gelato flavours, it will be truly
providing a healthier, delectable cool escape on a summer day, accessible throughout the city
of Saskatoon through social media engagement. A niche market will be served, as gelato
products are not available elsewhere in Saskatoon in a traditional mobile unit.
“Gelato is Italian style ice cream with twice the flavour, half the butterfat and less air than ice
cream. These flavours are rich and creamy and have a more indulgent flavour profile.” 15
15
http://www.jerrys.ca/artisanicecreams/icecreams.shtml
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16
Partnering with the fun treat alternative will be the social media driving form behind Gelato
Mobile: creating a daily engagement with customers through use of social media marketing. As
described in the Industry section, social media has become main stream amongst people and is
being adopted more each day by firms to conduct business and reach target markets, making
the consumer process customizable and fun.
4.1.2 Pricing
Few places currently sell gelato, other than Jerry’s Emporium, and Gelato Mobile is the first to
offer gelato on wheels through social media engagement. Gelato Mobile will use a competitive
pricing strategy, to compete with other regular ice cream trucks and stores. Average sale of a
gelato serving will be $3.75 – a good deal when considering the higher quality of the product
versus regular ice cream. Competitive pricing will also tie in with the social media aspect; Gelato
Mobile will not want a higher price to deter people’s interest in becoming Facebook Fans or
Twitter Followers of the product.
4.1.3 Promotion
Gelato Mobile’s promotion strategy aligns with its business strategy: social media marketing,
using primarily Facebook and Twitter. As outlines in Appendix B, Facebook will be used to
create a Page, generating Gelato Mobile “Fans”, allowing Fans to write on the “Wall” and
communicate with each other, promoting events, polling Fans as to what location the unit will
be at or what flavours are favoured, and overall exploiting Facebook’s users’ own social
networks to virally expand Gelato Mobile awareness. Twitter will be used to instantly send
16
http://blogs.townonline.com/wellesley/wp-content/uploads/2009/01/gelato4.jpg
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“Tweets” to “Followers”, and allow Followers to send messages back to Gelato Mobile. Updates
from both promotional tools will instantly sent to Fans and Followers, some who will also
immediately receive these updates on their mobile phones (should they have their social media
accounts set up to redirect to mobile phones).
The Facebook page and Twitter account will go live by April 20, to build awareness prior to day
one of operations. Traditional advertising will be only the free Star Phoenix “New Business
Feature”, following the trend that “63 percent of global Chief Marketing Officers expect to
increase interactive/online marketing spend while 65 percent expect to decrease traditional
advertising.”17
Gelato Mobile’s Customer Value Proposition:
Engaging Saskatoon’s Online-Savvy Residents and Their Tastebuds
4.1.4 Place
Mobile by name, mobile by nature: Gelato Mobile will serve the Saskatoon public, moving
about high traffic areas, such as downtown, riverside parks (including River Landing), shopping
centres and near major events, such as car shows at Prairieland Park, Pet Day in the Park and
Fringe Festival on Broadway.
More importantly is the social media channel to reach the target market, using channels such as
Facebook and Twitter, since “[c]onsumers are accelerating their adoption of digital content
services such as Twitter, YouTube, and Facebook with varying levels of engagement. Between
2007 and 2008, the adoption of social networking tools soared to 60 percent from 33 percent;
online/portable music services more than doubled to 46 percent from 22 percent; mobile
internet data plans nearly tripled to 41 percent from 15 percent; and access to mobile music
and video quadrupled to 35 percent from seven percent.”18
17
18
http://tinyurl.com/cuooxc
Ibid
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4.1.5 Segmentation, Targeting, and Positioning
Segmentation of the market is vital to determine which Saskatoon residents actively engage in
social media and would like to try / re-try the delectable treat gelato. Segmentation by age
(those who can drive to the mobile unit’s location), and by current engagement with Facebook
and Twitter is key for this market. Other segmentation could include tourists, vehicular and foot
traffic, and people attending large Saskatoon events (where Gelato Mobile will park).
The target market will be Saskatoon and area residents who currently engage in social media
and not only like ice cream, but would enjoy a healthier alternative. Since Gelato Mobile is not
just another ice cream truck, the social media engagement is key. Therefore, it is truly those
currently engaged in social media, between the ages of 16-50 in Saskatoon, who will be
primarily targeted. Ages were chosen to incorporate the youngest drivers (as Gelato Mobile will
be “tracked down” some days) and baby boomers who would probably be on Facebook and
have cell phones. As shown below, there are 101,620 people who fall into this target market in
Saskatoon who currently are on Facebook – a user number that is almost 50% of Saskatoon’s
population.
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Gelato Mobile’s Positioning Statement:
Providing a unique product combined with convenience and innovative delivery
of the product through active customer online engagement.
4.2 Market Analysis
The market for Gelato Mobile can be estimated using a few sources, and although this venture
offers a unique product through unique channels, competition does exist in the form of other
mobile food units (ice-cream, hotdogs) and fixed food services (Dairy Queen, other restaurants,
as mentioned in Appendix C).

Based on Facebook users who fall into the target market (101,620), if 4% (4064
customers) were engaged through social media enough to consume Gelato Mobile just
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once, and 40% of them (1625 customers) were retained for a second visit, Gelato
Mobile would receive 5689 customers.

Twitter user numbers in Saskatoon is not available. However, conservatively assuming
5% of Facebook target market users also use Twitter, and 8% of them were engaged
through social media enough to consume Gelato Mobile just once, 406 customers would
be obtained. With 40% retention for a second visit, this number increases to 569.

These numbers do not include children under 16, people above 50, or those non-social
media user who may accompany the social media target consumer. These
“accompaniers” would increase projected number of customers.

Foot and vehicle traffic: assuming 5% of the Saskatoon population (209,40019) would be
aware of Gelato Mobile through word of mouth and seeing the unit, and 1% of the 5%,
104 customers could be obtained.

These numbers also do not include the number of tourists who visit Saskatoon each
summer, both from surrounding areas in Saskatchewan and those from out-of-province,
who may come across Gelato Mobile in one of its high-traffic areas.
Based on the market analysis above, and on the viral nature of its social marketing channels,
Gelato Mobile is estimated to have on average 20 individual customers per hour, with a total
16,880 customers, as show in the Financial Section below.
4.4 Marketing Strategy
Gelato Mobile’s marketing strategy is social media marketing: utilizing two-way social media
channels to create community and awareness of; drive traffic to; and engage customers in the
total, fun purchasing process of gelato. This fun process engagement will be through letting
customers choose locations, flavours of the week, and track down Gelato Mobile to receive free
product. The channel of distribution is social media, such as Facebook and Twitter, which is
intricately part of the business strategy: “[s]ites will adopt Facebook Connect for two reasons:
19
http://www.city.saskatoon.sk.ca/org/quick_facts/index.asp
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April 8, 2009
First, their users are already actively using it. And second, because it’s not just a registration
system, it’s a marketing channel.”20
Other channels include foot/vehicular traffic unaware of the social media communications, who
may come across Gelato Mobile and want a delectable, cool treat on a summer day.
However, it is the two-way communication using social media channels, through social media
marketing, that is key to this business. Not only will Gelato Mobile communicate to potential
customers, it will be creating a community centered on Gelato Mobile. This community will be
fostered by customer engagement by allowing people to communicate with Gelato Mobile
through Facebook and Twitter, by voting to choose the unit’s location, and by overall creating a
fun purchasing process. In fact, 40% percent of Canadian interviews use social media “to
communicate with organizations”21 and “in the current stormy economy, as companies look for
new ways to market their products and engage their customers, chief executive officers are
finally looking more and more at how social networking tools can extend their brands, create
corporate cultures based on listening and learning [. . .] .”22
Due to the ever changing online environment, Gelato Mobile will need to closely monitor
competitors’ movements and emerging trends that could affect its position.
4.5 Selling and Advertising
The advertising objective will be to create high awareness, or “word of mouse”, through social
media marketing, to generate traffic to ultimately purchase gelato and be actively engaged in
the Gelato Mobile community. As discussed below, the advertising mix has been determined to
optimize social media channels and minimize advertising costs.
20
cnet News Article: (Facebook Connect officially open): http://news.cnet.com/facebook-connect-officiallyopen/
21
http://www.upi.com/Top_News/2009/04/06/So-called-social-media-soaring-in-Canada/UPI-84441239050428/
Forbes.com Article: (Yes, CEO’s should Facebook and Twitter): http://tinyurl.com/cb2swt
22
19
Gelato Mobile Business Plan
April 8, 2009
The advertising mix includes:
Facebook – Facebook’s number of users has grown exponentially in the past few years (77% of
Canadians interviewed use Facebook23) and continues to be one of the most popular social
media spaces. As shown above, there are currently 101,620 Facebook users who fall into Gelato
Mobile’s target market. A Facebook page will be created and published by April 20, promoting
Gelato Mobile, gathering fans listing events (i.e. Grand Opening) and informing fans of current
promotions – all of which is instantly sent to its fan base, either online or redirected to fans’
mobile phones. As well, once a week, Gelato Mobile will set up a poll through Facebook, asking
its fans where it should park for the day. The highest chosen answer (i.e. Centre Mall) is where
Gelato Mobile will park for that day. Facebook expenses will be $500 for the season.
Twitter – Twitter is relatively newer than Facebook, and immediately ‘Tweets” a specific
message to all your “Followers” about what you are currently doing. The following shows the
age of visitors to Twitter24 (US stats) indicating a favourable alignment to Gelato Mobile’s target
market.
Gelato Mobile will use Twitter to inform its Followers of location movement, of “2 Hour Price
Promos”, and to immediately drive traffic (i.e. sample Tweet Gelato Mobile is at The Centre
Mall – first 2 people to find us and say “Gelato” get a free scoop!”). These “Tweets” are
immediately sent to Twitter Followers’ accounts, and cell phones connected to the Twitter
23
24
Ibid
http://weblogs.hitwise.com/heather-dougherty/2009/01/twitter_catches_up_to_digg.html
20
Gelato Mobile Business Plan
April 8, 2009
account. This means these mobile phone users will immediately receive the messages,
wherever they are.
Newspaper Ad – The Star Phoenix will provide a “New Saskatoon Business” article, featuring
Gelato Mobile, to be published in May 2009, at no cost. This will be the only newspaper
advertising Gelato Mobile will do.
Website – A website in the first 5 years may not be necessary, since Gelato Mobile will be
creating awareness through social media, which is much more engaging and involves two-way
communication. Should Gelato Mobile grow to an unforeseen size, a website could be
developed in future years.
Signage – As outlined in the mobile unit supplier unit, Mr Cool will include customized signage
for the truck. This will include the logo, Jerry’s name (as per Jerry’s supplier letter of
agreement), as well as “Find us on Facebook” and “Be a Twitter Follower”.
For selling, co-op and high school students will be selected based on personality, experience
and expertise with social media outlets. Staff will be encourage to interact with customers,
asking them how they found out about Gelato Mobile, providing small samples to taste, and
encouraging them to become Gelato Mobile Facebook Fans and Twitter Followers to be
constantly updated about the location and current promotions Gelato Mobile offers.
5.0 Financial Plan
Based on the data presented in Appendix E, it appears that Gelato Mobile will make a profit in
2009 of about $7,100. The assumptions that contributed to this figure are listed in Appendix F.
Conservative estimates were used in almost every situation. After analyzing the variables for
revenues and expenses, it would appear that the most crucial variable is in fact sales. As noted
in Table 5.1 and 5.2, under the worst case scenario, if sales drop 25%, the NPV changes
substantially by $ 66,501, and becomes negative. Alternatively, under the best case scenario, if
sales were 25% higher than planned, the NPV changes to $91,668.
21
Gelato Mobile Business Plan
April 8, 2009
Table 5.1 Base case / Worst case / Best case Scenario variables
Variable
Base Case
Worst Case
Best Case
63,300
47,475
79,125
60%
47%
68%
Sales (Year 1)
Margin
Table 5.2 Base case / Worst case / Best case Scenario results
Scenario
Base Case
Worst Case
Best Case
NPV
IRR
Avg Annual Net
Income
30,612
-35,889
91,668
N/A
N/A
N/A
8,813
-6,990
23,342
Worst
Change in
Sales
Change in
NPV
Best
-25%
25%
$66,501.00
$61,056
Table 5.3 Summary of Financial Data
Year
Sales Revenue
Cost of Goods Sold
Gross Margin
Total Expenses
Net Income Before Taxes
Income Taxes
Net Income(Loss)
Net Present Value (NPV)
IRR
2009
2010
2011
2012
2013
63,300
68,127
71,371
74,615
77,859
25,257
25,888
26,535
27,199
27,879
38,043
42,239
44,835
47,416
49,980
28,564
29,278
34,909
35,782
37,481
9,480
12,961
9,926
11,634
12,500
1,765
2,348
1,799
2,108
2,265
7,714
10,612
8,128
32,417
9,526
10,235
N/A
22
Gelato Mobile Business Plan
April 8, 2009
The NPV calculated for the base case noted above in Table 5.3 is based on projected net income for 5
years, plus a multiple of 3 in the fifth year (2013).
To break even, Gelato Mobile will need $54,536 in revenue (to achieve $0 net income).
Should projected revenues not be realized and Gelato Mobile cannot survive financially, the exit
strategy is to simply close up shop. Gelato Mobile would simply sell remaining gelato at a
discounted price and return the leased equipment. Worst case scenario, the Owners are out
their initial investment of $2000 each, yet can chalk this business venture up to a social
experiment in Saskatoon.
6.0 Conclusion
As noted earlier, strategic use of social media marketing, careful cost control, and a fantastic
product should enable Gelato Mobile to be a successful small business opportunity. The
marketing and promotion methods presented are new and innovative, and should successfully
engage Saskatoon residents in the purchasing process.
Financially speaking, Gelato Mobile is projected to be profitable, and could consider
incorporating for tax and liability considerations. As with many businesses, the critical variable
for Gelato Mobile is sales. As noted in the sensitivity analysis, a 25% swing in customers in the
wrong direction would ultimately cause the business to have negative net income. In a worst
case scenario, the high school student position can be eliminated, and an owner can step in if
necessary, as each of the owners have the flexibility to do this.
Overall, a new market can be created, providing value for the owners from this unique
combination of gelato and social media, fully engaging Saskatoon’s online-savvy residents and
their taste buds.
23
Gelato Mobile Business Plan
Appendix A: Supplier Letters of Agreement
April 8, 2009
Gelato Mobile
3152 Cairns Avenue
Saskatoon, SK S7L 4R5
April 1, 2009
Re: Gelato & Cone Supplier Letter of Agreement
To the Owners of Gelato Mobile:
This letter confirms the agreement between Jerry’s Artisan Ice Creams and Gelato Mobile. Jerry’s will
supply the following:




Gelato at a wholesale cost of $8825 per 11.4 L pail of gelato (apprx. 192 pails in total needed
May-September)
Cones (regular and waffle) at a wholesale cost of $0.20 each (apprx. 10,640 cones in total
needed May-September)
Cups at a wholesale cost of $0.25 each (apprx. 10,640 cups in total needed May-September)
Spoons at a wholesale cost of $0.05 each (apprx. 10,640 spoons in total needed MaySeptember)
This agreement will be in effect from April 14, 2009 through October 14, 2013. Gelato Mobile will
receive the exclusive mobile distribution rights for Jerry’s gelato during this agreement. Gelato Mobile
will receive gelato supply of 12 different flavours and 528 each of cones, spoons and cups prior to May
1, 2009, with consistent weekly supply, or as based on demand, provided by Gelato Mobile
Management. Gelato Mobile will pick up supply from Jerry’s location and will pay for each supply by
cash or cheque. In exchange, Gelato Mobile will advertise that it sells ‘Jerry’s Gelato’ on its mobile unit
signage, on its Facebook page and any other promotion/social media outset. As well, Gelato Mobile will
not park and operate (sell its gelato products) within 1km of Jerry’s Emporium at 1115 Grosvenor
Avenue in Saskatoon. A contract will be drafted and signed prior to the start of this agreement.
Morgan Woodsen
Morgan Woodsen, Food Service Manager, Jerry’s Artisan
25
As per the April 4th, 2009 phone call
Gelato Mobile
3152 Cairns Avenue
Saskatoon, SK S7L 4R5
April 1, 2009
Re: Ice Cream Truck Rental
To the Management of Gelato Mobile:
This letter confirms the agreement between Mr. Cool Ice Cream Truck Rental and Gelato Mobile. This
agreement will be in effect from April 14, 2009 through October 14, 2013. Gelato Mobile will rent a 1990
GMC Ice Cream Truck (VIN# KZS1468JHW98) from Mr Cool for $650 per month, payable with 5 postdated cheques, for the months of May through September. The Ice Cream Truck comes totally outfitted
with the following:







Cold plates for 12 x 11.4L pails of ice cream/gelato
o These cold plates do not require power throughout the day. Just plug the truck in at
night and the plates will remain a consistent, cool temperature for 24 hours.
2 front row seats for driver and passenger (passenger seat revolves to face back of truck)
GPS System (Tom Tom system, with subscription covered by Mr Cool)
Storage, cash till, debit machine
All other regular ice cream truck features (to be further described in the contract)
Back up battery for lighting at night
Customized signage for one season
In exchange, Gelato Mobile will advertise the truck as a Mr Cool Ice Cream Truck on the back of the
truck. For a fee of $500, Mr Cool will create and place Gelato Mobile signage to the vehicle (Gelato
Mobile to forward creative). Gelato Mobile is responsible for insurance and registration of the vehicle
from May 1 through September 30 each year. Mr Cool will deliver the vehicle to Saskatoon prior to May
1 and pick the vehicle up in Saskatoon after September 30. A contract will be drafted and signed prior to
the start of this agreement.
Andrew Corrigan
Andrew Corrigan, CEO, Mr Cool Ice Cream Truck Rentals, 814 Albert Street N, Regina, SK S4V 0G7
Gelato Mobile Business Plan
April 8, 2009
Appendix B: Facebook and Twitter Screen Shots
Below are screen shots of Facebook and Twitter social media channels, showcasing the
following examples of how Gelato Mobile will be promoted:

Event notification which shows up on a Friend’s profile under Highlights, along with
Friends who are attending this event. Clicking on this link redirects someone to the
Event Page, which provides more information and the option to attend.

Facebook Event Page providing more information, along with everyone who’s attending,
and option to attend, which builds community amongst these Facebook Fans /
Attendees

Actual Facebook Page, promoting Gelato Mobile, what it’s about, who’s a Fan, the
option to become a Fan, again building community and a social group centered around
Gelato Mobile. This page would also provide daily updates (top of page) about where
Gelato Mobile will be that day, or special offers, along with photos of Gelato Mobile and
comments by Gelato Mobile fans: creating a social community where two way
communication and engagement occurs between Gelato Mobile and its Facebook Fans.

Twitter Page, showing the current “Tweet” (Free gelato for first 2 people who find the
Gelato Mobile), the number of followers Gelato Mobile has (number of people who will
instantly receive Gelato Mobile’s “Tweets” about location, promotion, events, etc), and
the number of people Gelato Mobile is following: creating an online social community
where two way communication and engagement occurs between Gelato Mobile and its
Twitter followers.
Gelato Mobile Business Plan
April 8, 2009
Gelato Mobile Business Plan
April 8, 2009
Gelato Mobile Business Plan
April 8, 2009
Gelato Mobile Business Plan
April 8, 2009
NAME: GELATO
MOBILE
LOCATION:
WHEREVER YOU
GELATO MOBILE WILL BE AT THE CENTRE MALL TODAY! FIRST 2
WANT US TO BE,
PEEPS TO FIND US AND SAY “GELATO” GET A FREE SCOOP!
SASKATOON!
Message
Nudge
Gelato Mobile Business Plan
April 8, 2009
Appendix C: Competitive Industry Analysis
Gilato Ice-Cream Shops near Saskatoon, SK, Canada
Ice-Cream Shops
Gilato Availability
Jerry's Food Emporium
Yes
Co-op Market Place at Attridge
Yes
Dad’s Nutritional Centre (Organic Gelato)
Yes
Noodle King & Ice Cream Queen
Yes
Mister Tasty Dairy Mobile
No
Sweet Memories Ice Cream Parlor
No
Dairy Queen
No
Laura’s Ice Cream
No
McDonald
No
Western Development Museum
No
Lynn’s Icedreams
No
Broadway Ice Cream Works
No
Tastebuds
No
Sweet Revenge
No
Harlan Fairbanks
No
Bus Stop Refershments
No
George Wakefield Foods Inc
No
Harden & Huyse Chocolates Ice Cream & Coffee
No
Parlour Treats
No
Homestead Ice Cream & Cappuccino
No
Harden & Huyse Chocolates Ice Cream & Coffee
No
The list above represents known gelato retailers in Saskatoon. Continuous analysis would have to be
pursued as other competitors could enter the market place at any time.
Gelato Mobile Business Plan
April 8, 2009
Appendix D: Saskatoon Events Calendar
Listed below are events that are scheduled for Saskatoon between May 2009 and September
2009. The events with a red star behind them denote a major event. While it may not be
possible, or realistic, for Gelato Mobile to be at all of these events, this list is meant to show just
how many events actually take place in Saskatoon over the months that Gelato Mobile will be
in operation.
Order of the Eastern Star Annual Meeting
May 3, 2009
April 30 - May 2, 2009
Street Legal Opener - Saskatchewan
International Raceway
Man Show
May 3, 2009
Apr 30, May 1, May 2, 2009
DOROTHY THE DINOSAUR
Western Canada Cosmopolitan Federation
Convention
May 4, 2009
May 1-3, 2009
Michael Kaeshammer
Hub City Conformation and Obedience Club
and Show
May 4, 2009
Montgomery Gentry in Concert
May 1 - 3, 2009
May 7, 2009
Comedian Lewis Black
Bad Jazz
May 1, 2009
May 8-10, 2009
Saskatoon Log & Cottage Show
May 1, May 2, May 3, 2009
Saluki Club of Canada Western Regional
Specialty
May 2, 2009
Gala Fundraiser for the Sasaktoon Cancer
Centre
Street Legal Racing - Saskatchewan
International Raceway
May 8, 2009
Alice in Wonderland - Off Broadway
Children's Lunchtime Theatre
May 9-June 13, 2009
Saskatoon Symphony Masters Series 7
May 2, 2009
May 9, 2009
Creedance Clearwater Revisited
May 2, 2009
Volunteer Race - Saskatchewan International
Raceway
Celtic Thunder
May 9, 2009
Shane Yellowbird in Concert
Gelato Mobile Business Plan
April 8, 2009
May 9, 2009
Bikes on Broadway
Emerson Drive in Concert
May 16-18, 2009
May 19, 2009
Changing Landscapes CCA/SSCA 2009
Billy Graham
May 19 - 22, 2009
May 9, 2009
5th Annual Metis Cultural Celebration
Video Games LIVE!
May 20-21, 2009
May 10, 2009
The Annual Canadian Association for Parish
Nursing Ministry (C.A.P.N.M.) Conference
Season Opener/Mother's Day - Auto Clearing
Motor Speedway
May 21 - 24, 2009
May 10, 2009
Thoroughbred Racing
Keeping Up With the Keepers - SOLD OUT
May 22-23, 2009
May 10, 2009
Street Legal Racing - Saskatchewan
International Raceway
Leadership Conference 2009
May 22, 2009
May 12 & 13, 2009
Bulls and Bikes
Bad Jazz
May 22-23, 2009
May 14-17, 2009
"The Littlest Showboat in North America"
Matt Andersen
May 22, 2009
May 14, 2009
Saskatoon Symphony Masters Series 8
Round 2 Racing - Auto Clearing Motor
Speedway
May 15, 2009
Association for International Agricultural &
Extension Education
May 15 - 20, 2009
May 23, 2009
Siemans Western Elite 125 - Auto Clearing
Motor Speedway
May 23, 2009
Test and Tune - Saskatchewan International
Raceway
National Canadian Chinese Language
Education Conference
May 23, 2009
May 15 - 17, 2009
George Fox Dinner Show
Olympian Sports City of Bridges AAA Hockey
Tournament
May 23, 2009
Saskatchewan Marathon
May 15-18, 2009
May 24, 2009
BILL GAITHER and the HOMECOMING
FRIENDS
May 16, 2009
Season Opener Race 1 - Saskatchewan
International Raceway
Gelato Mobile Business Plan
April 8, 2009
May 24, 2009
Jun 5-7, 2009
Rob Lutes
Thoroughbred Racing
May 25, 2009
Jun 5-6, 2009
Quilts Saskatchewan
Street Car Test Drive - Auto Clearing Motor
Speedway
May 27-30, 2009
Jun 5, 2009
Thoroughbred Racing
Broadway Art Encounter
May 29-30, 2009
Jun 5-6, 2009
Street Legal Racing - Saskatchewan
International Raceway
An Evening with Mpho Tutu
May 29, 2009
Jun 5, 2009
The Mudd Brothers
"The Littlest Showboat in North America"
May 29, 2009
Jun 5, 2009
WOOD'09
Knights of Columbus 8th Annual Show and
Shine
May 30-Jun7, 2009
Jun 6, 2009
Mac's ARCA West Late Model Challenge 150
- Auto Clearing Motor Speedway
Martensville A & W 100 and Super Trucks
100 - Auto Clearing Motor Speedway
May 30, 2009
Jun 6, 2009
Doors Open Saskatoon
May 31, 2009
Canadian Multidisciplinary Road Safety
Conference
Saskatchewan Children's Festival
June 7-10, 2009
Jun 2-6, 2009
La Boh�me
John Fogerty in Concert
Jun 10-20, 2009
Jun 2, 2009
Canadian Open Bowling Championships
June 3-6, 2009
CMT On Tour Featuring Jason Blaine, The
Higgins & Tara Oram
Jun 3, 2009
Soup du jour
Jun 5-Jul 25, 2009
Theology of the Body
Silence
Jun 11-14, 2009
50th International Square and Round Dance
& Clogging Convention
June 11 - 13, 2009
Thoroughbred Racing
Jun 12-13, 2009
Legends Cars of Alberta Test Drive - Auto
Clearing Motor Speedway
Gelato Mobile Business Plan
April 8, 2009
Jun 12, 2009
Jun 19, 2009
Street Legal Racing - Saskatchewan
International Raceway
Siemans Western Elite 125 - Auto Clearing
Motor Speedway
Jun 12, 2009
Jun 20, 2009
Waterfront Craft Art Festival
Motorcycle Ride for Dad
Jun 13, 2009
Jun 20, 2009
Legends Cars of Alberta - Mac's Froster 50 Auto Clearing Motor Speedway
Aboriginal Day Celebrations
Jun 21-22, 2009
Jun 13, 2009
Keeping Up With the Keepers
Test and Tune/Big Bucks Jackpot 1 Saskatchewan International Raceway
Jun 13. 2009
Jun 21, 2009
Imagination Station: The Prequel - Off
Broadway Children's Lunchtime Theatre
University of Saskatchewan Amati Quartet �A Summer�s Evening in Vienna�
Jun 25-Jul 24, 2009
Jun 14, 2009
SaskTel Saskatchewan Jazz Festival
Points Race 2 - Saskatchewan International
Raceway
Jun 14, 2009
The Great Plains Comedy Festival
Jun 15-21, 2009
LAUGHTER & REFLECTION WITH CAROL
BURNETT
Jun 16, 2009
Charley Pride
Jun 17, 2009
Silence
Jun 18-21, 2009
Thoroughbred Racing
Jun 19-20, 2009
Street Legal Racing - Saskatchewan
International Raceway
Jun 26-Jul 5, 2009
Thoroughbred Racing
Jun 26-27, 2009
Round 3 Racing - Auto Clearing Motor
Speedway
Jun 26, 2009
Kinsmen Day at the Zoo
Jun 26, 2009
The Ricasso Duo
Jun 26, 2009
Fiddler on the Roof
Jun 27 - Jul 5, 2009
Jet Feature Race 3 - Saskatchewan
International Raceway
Jun 27, 2009
Shakespeare on the Saskatchewan Festival
Jun 19, 2009
"The Littlest Showboat in North America"
Jul 1-Aug 16, 2009
Gelato Mobile Business Plan
Optimist Canada Day Celebrations
April 8, 2009
Round 4 Racing - Auto Clearing Motor
Speedway
Jul 1, 2009
Jul 10, 2009
Master Bowlers Association of Canada
Championships
Street Legal Racing - Saskatchewan
International Raceway
July 1-4, 2009
Jul 10, 2009
Canada Day
"The Littlest Showboat in North America"
Jul 1, 2009
Jul 10, 2009
Xavier Rudd in Concert
Pion-Era 2009
Jul 2, 2009
Jul 11-12, 2009
Prairieland Junior Ag Showcase
July 3-6, 2009
Points Race 4 - Saskatchewan International
Raceway
Thoroughbred Racing
Jul 11, 2009
Jul 3-4, 2009
Pets In The Park
Street Car Test Drive - Auto Clearing Motor
Speedway
Jul 12, 2009
Victorian Tea and Fashion Show
Jul 3, 2009
Jul 12, 2009
On s’regaroche à Batoche ~ Fransaskois
Festival
Points Race 5 - Saskatchewan International
Raceway
Jul 3-6, 2009
Jul 12, 2009
Super Trucks Racing Series 100 - Auto
Clearing Motor Speedway
Fort Battleford Ghost Walk
Jul 4, 2009
Jul 13, 2009
StarPhoenix Family Day at the Zoo
Chicken Farmers of Canada Summer Meeting
Jul 5, 2009
July 13-16, 2009
Siege of Battleford
A Taste of Saskatchewan presented by
Conexus Credit Union
Jul 6, 2009
Jul 14-19, 2009
Canadian Tour - Saskatchewan Open
Jul 6-12, 2009
2009 ISF XII World Men's Softball
Championships
Experience Downtown Sidewalk Sale
Jul 17 - 26, 2009
Jul 9-11, 2009
Ness Creek Music Festival
Thoroughbred Racing
Jul 16-19, 2009
Jul 10-11, 2009
Thoroughbred Racing
Gelato Mobile Business Plan
April 8, 2009
Jul 17-18, 2009
Jul 26, 2009
Super Trucks Racing Series 100 - Auto
Clearing Motor Speedway
NASCAR Canadian Tire Series
Jul 29, 2009
Jul 18, 2009
Saskatoon Fringe Theatre Festival
Parks Day
Jul 30-Aug 8, 2009
Jul 18, 2009
Thoroughbred Racing
Siege of Battleford
Jul 31-Aug 1, 2009
Jul 20, 2009
Peters & Pilon Celebrity Golf Tournament in
support of Kidsport
Round 6 Racing - Auto Clearing Motor
Speedway
Jul 31, 2009
Jul 23-24, 2009
"The Littlest Showboat in North America"
Mass at Historic Church
Jul 31, 2009
Jul 23, 2009
Family Fun Fest
Rotary Club of Saskatoon Nutana Dragon
Boat Festival
Aug 1-2, 2009
Jul 24-25, 2009
Saskatoon Exhibition
Round 5 Racing - Auto Clearing Motor
Speedway
Aug 4-9, 2009
John Arcand Fiddle Fest
Jul 24, 2009
Aug 6-9, 2009
Street Legal Racing - Saskatchewan
International Raceway
Legends Cars of Alberta Test Drive - Auto
Clearing Motor Speedway
Jul 24, 2009
Aug 7, 2009
Back to Batoche Days
Jul 24-26, 2009
Points Race 6 - Saskatchewan International
Raceway
Street Legal Racing - Saskatchewan
International Raceway
Aug 7, 2009
Jul 25 ,2009
Legends Cars of Alberta - Auto Clearing
Motor Speedway
Community Appreciation Day
Aug 8, 2009
Jul 25, 2009
Test and Tune/Fastest Street Car Challenge Saskatchewan International Raceway
Victorian Tea and Fashion Show
Aug 8, 2009
Jul 26, 2009
Points Race 7 - Saskatchewan International
Raceway
Points Race 8 - Saskatchewan International
Raceway
Aug 9, 2009
Gelato Mobile Business Plan
April 8, 2009
Siege of Battleford
Aug 22, 2009
Aug 10, 2009
Alcohol Feature Race 9 - Saskatchewan
International Raceway
Folkfest 2009
Aug 22, 2009
Aug 13-15, 2009
Fort Battleford Ghost Walk
Thoroughbred Racing
Aug 24, 2009
Aug 14-15, 2009
Thoroughbred Racing
Street Car Test Drive - Auto Clearing Motor
Speedway
Aug 28-29, 2009
Aug 14, 2009
"The Littlest Showboat in North America"
"The Littlest Showboat in North America"
Aug 28, 2009
Aug 14, 2009
Siemans Western Elite 125 - Auto Clearing
Motor Speedway
Cameco Canada Remembers International
Airshow
Aug 29, 2009
Aug 15-16, 2009
Saskatoon Fireworks Festival
Siege of Battleford
Sep 4-5, 2009
Aug 15, 2009
Thoroughbred Racing
Siemans Western Elite 125 - Auto Clearing
Motor Speedway
Sep 4-5, 2009
Aug 15, 2009
Super Trucks 100 and Pro Trucks Points Final
- Auto Clearing Motor Speedway
Canadian Medical Assocation
Sep 5, 2009
Aug 16 - 19, 2009
Street Car Test Drive - Auto Clearing Motor
Speedway
Rock 102 Cruise Weekend
Sep 11, 2009
Aug 21-23, 2009
Broadway Street Fair
Thoroughbred Racing
Sep 12, 2009
Aug 21-22, 2009
Round 7 Racing - Auto Clearing Motor
Speedway
Mac's ARCA West Late Model Challenge 150
- Auto Clearing Motor Speedway
Sep 12, 2009
Aug 21, 2009
New York Islanders Training Camp
Street Legal Racing - Saskatchewan
International Raceway
Aug 21, 2009
Sep 12-20, 2009
Test and Tune/Big Bucks Jackpot 2 Saskatchewan International Raceway
Ukraine Day in the Park
Sep 12, 2009
Gelato Mobile Business Plan
April 8, 2009
Season FInal Race 10 - Saskatchewan
International Raceway
Street Legal Racing - Saskatchewan
International Raceway
Sep 13, 2009
Sep 20, 2009
Keeping Up With the Keepers
Premier Festival
Sep 13, 2009
Sep 25-27, 2009
New York Islanders Alumni Celebrity Golf
Tournament
Annual Ultimate Enduro - Auto Clearing
Motor Speedway
Sep 18, 2009
Sep 27, 2009
NHL New York Islanders vs Calgary Flames
Street Legal Racing - Saskatchewan
International Raceway
Sep 19, 2009
Sep 27, 2009
Siemans Western Elite 125 and Points Final Auto Clearing Motor Speedway
Sep 19, 2009
NHL New York Islanders vs Edmonton Oilers
Sep 20, 2009
Saskatoon Tourism: (www.tourismsaskatoon.com/events.)
Gelato Mobile Business Plan
Appendix E: Yearly Financial Projections
(Please refer to Excel files for all details relating to the financial projections)
April 8, 2009
Gelato Mobile Business Plan
Appendix F: Assumptions
Derivation of Sales
-
The average selling price of a gelato product is $3.75
Sales target of 20 customers/hr on average
$75 Sales revenue/hr
Operating Hours for May = weekends only
Operating Hours for June/July/August = Wed-Sun;
Operating Hours for September = weekends only
Total Operating hours for 2009 = 844 Hours
Total estimated customers for 2009 = 844hrs x 20/hr = 16,880
Therefore, 844hrs x $75 = $63,300 Sales revenue for 2009
Derivation of Expenses
Truck
-
Ice Cream Truck rental = $650/month x 5 months = $ 3,250
Truck Maintenance = $200/month x 5 months = $1,000
Power for cold plates = $50/month x 5 months = $250
Insurance on truck = $200/month x 5 months = $1,000
Business License = $100 for 5 months
Fuel costs = 33litres/day x 112 days of operations in 2009 x $.95cents/litre = $ 3,511
Derivation on Inventory Costs
Cups – $0.25 x 8,440 customers (50% of sales) = $2,110
Spoons – $0.05 x 16,880 customers = $844
April 8, 2009
Gelato Mobile Business Plan
April 8, 2009
Cones – $0.20 x 8,440 customers (50% of sales) = $1,688
Napkins – $0.15 x 16,880 customers = $2,532
Gelato – Jerry’s Wholesale price is $88 for 11.4L. Based on about ½ cup serving size, there should be
about 88 servings per 11.4 L container. .4L will be a buffer for waste and taste samples for prospective
customers. Therefore, the gelato costs should be about $16,880.
** In order to be conservative in the estimated Inventory costs noted above, all cost figures in the
attached financial statements have been increased by 5%**
Derivation of Marketing Expenses
Facebook: $500 for sidebar ads, based on a pay-per-click rate of $0.28, which will generate 1786 click
throughs to the Gelato Mobile Facebook Page. Facebook Page and Events are no cost.
Promotions: $300 (free gelato giveaways, discounts)
Scenario Analysis
Worst
- The average selling price of a gelato product is $3.75
- Sales target of 15 customers/hr on average
- $56.25 Sales revenue/hr
Therefore, 844hrs x $56.25 = $47,475 Sales revenue for 2009
Best
- The average selling price of a gelato product is $3.75
- Sales target of 25 customers/hr on average
- $93.75 Sales revenue/hr
Therefore, 844hrs x $93.75 = $79,125 Sales revenue for 2009
Gelato Mobile Business Plan
April 8, 2009
Appendix G: 2006 Industry Canada Small Business Profile for Mobile
Food Services in Saskatchewan26
Report Criteria: 2006
Canada
All Businesses
% of Total Revenue
722330
STATISTICS CANADA
2006 SMALL BUSINESS PROFILES - Canada
NAICS Number:
722330 - Mobile Food Services
Average of all Businesses
Number of Businesses
Revenue Range:
Low Value ($ 000)
High Value ($ 000)
Whole
Industry
(Reliability)
Lower
Half
(50%)
Upper
Half
(50%)
Bottom
Quartile
(25%)
Lower
Middle
(25%)
Upper
Middle
(25%)
Top
Quartile
(25%)
Percent of
Businesses
Reporting
1230
30
5000
30
82
82
5000
30
50
50
82
82
126
126
5000
(percent of total revenue)
Total revenue
Cost of sales (direct expenses)
Wages and benefits
100.0
49.8
2.9
100.0
41.3
1.8
100.0
52.0
3.2
100.0
40.1
1.0
100.0
42.1
2.3
100.0
46.4
2.0
100.0
53.8
3.6
100.0
92.1
11.8
Purchases, materials and
sub-contracts
46.9
39.2
48.9
38.5
39.7
44.6
50.3
90.9
Opening Inventory
2.8
1.4
3.2
1.8
1.2
1.3
3.8
39.2
Closing inventory
Operating expenses (indirect
expenses)
Labour and commissions
2.8
1.1
3.2
1.2
1.0
1.5
3.8
38.1
40.2
46.6
38.6
49.7
44.8
39.8
38.1
99.9
10.9
7.7
11.7
7.1
8.1
7.7
13.1
47.7
Amortization and depletion
3.5
5.1
3.0
5.3
5.0
4.0
2.7
74.6
Repairs and maintenance
2.3
2.8
2.1
3.3
2.5
2.0
2.2
66.7
Utilities and
telephone/telecommunication
3.0
3.6
2.8
3.9
3.5
3.3
2.7
83.5
Rent
3.4
4.0
3.3
4.4
3.7
3.2
3.3
45.1
Interest and bank charges
2.3
3.0
2.1
3.8
2.5
2.2
2.0
65.8
Professional and business
fees
1.3
1.2
1.3
1.3
1.1
1.4
1.3
77.9
Advertising and promotion
0.5
0.5
0.5
0.5
0.5
0.6
0.4
50.9
Delivery, shipping and
warehouse expenses
0.2
0.2
0.1
0.3
0.2
0.2
0.1
13.5
Insurance
Other expenses
Total expenses
Net profit/loss
1.3
1.7
1.2
1.9
1.5
1.5
1.1
71.6
11.7
90.0
10.0
16.9
88.0
12.0
10.3
90.5
9.5
17.9
89.7
10.3
16.3
86.9
13.1
13.8
86.3
13.7
9.1
92.0
8.0
98.8
100.0
100.0
5.4
50.2
5.0
58.7
5.5
48.0
3.7
59.9
6.2
57.9
7.1
53.6
4.9
46.2
FINANCIAL RATIOS
Interest coverage ratio
Gross margin (%)
PROFITABLE vs NON-PROFITABLE
BUSINESSES
Profitable
Percent of businesses (%)
Total revenue
Total expenses
Net profit
Non-Profitable
Total revenue
Total expenses
Net loss
26
(thousands of dollars)
79.2
128.2
108.9
19.2
52.7
40.5
12.1
194.7
169.2
25.5
39.3
29.3
9.9
65.2
51.1
14.2
102.4
83.2
19.2
287.3
255.4
31.9
120.7
133.2
-12.4
51.4
61.9
-10.5
234.2
249.8
-15.6
40.1
51.0
-10.9
65.1
75.1
-10.0
99.7
113.6
-13.9
366.6
384.0
-17.4
http://www.ic.gc.ca/app/sbp/prfpls/prfl/rprtStp/sv.do;jsessionid=0000ZslYz__NEm3c5AHPr8C13rF:1247mpv0c