A La Charleston

A La Charleston

40 Broad St, SC 29401 alachareston@gmail.com.

(843) 853-8111

December 11, 2013

Arden Gill

Courtney Hartline

Alexandra Manning

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A. Executive Summary

B. Company Description

Table of Contents

I. Executive Summary and Company Description

II. Industry Analysis

A. Industry Size, Growth Rate, Sales Projections

B. Nature of Participants/ NAICS Classification

C. Key Success Factors and Industry Trends

D. Long Term Prospects of Industry

III. Market Analysis

A. Feasibility Analysis, Market Segmentation, and Target Market

Selection

B. Buyer Behavior

C. Competitor Analysis and Competitive Analysis Grid

IV. Marketing Plan

A. Product List

B. Pricing Strategy

C. Location, Distribution. And Logistics

D. Promotional Strategies: Pre Opening

E. Promotional Strategies: After Opening

V. Management

A. Management Structure

B. Organizational Chart

C. Number of Employees, Job Descriptions, and Specifications

D. Store Hours of Operation

E. Recruitment and Selection

F. Compensation Structure

VI. Financials

A. Source of Funds

B. Assumptions Sheet

C. Start Up Costs

D. Opening Day Balance Sheet

E. Sales Projections

F. 12 Month Profit Loss

G. Pro-Forma Income Statement

2 pg. 4 pg. 4 pg. 6 pg. 8 pg. 8 pg. 8 pg. 9 pg. 10 pg. 11 pg. 11 pg. 13 pg. 14 pg. 16 pg. 16 pg. 18 pg. 19 pg. 19 pg. 21 pg. 24 pg. 24 pg. 25 pg. 26 pg. 30 pg. 30 pg. 31 pg. 33 pg. 33 pg. 33 pg. 34 pg. 40 pg. 42 pg 47 pg. 55

VII. 3 Year Projections

A. Marketing/Management Development

B. Financials Projections pg. 56 pg. 56 pg. 57

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I. Executive Summary and Company Description

A. Executive Summary

Introduction

Ice cream is a staple in almost all American household diets. There are many ice cream shops but not many that satisfy a specific need for ice cream sandwiches. Charleston,

South Carolina is a perfect location for our business because of its popularity with tourists who come because of its weather and historic charm. The area has many sweet shops, bakeries, and frozen novelty shops, but there is no business that allows customers to get these choices together and then combine them into one delicious treat.

Company Description

A La Charleston is a small made-to-order ice cream sandwich shop in the heart of

Charleston, South Carolina. Located on 40 Broad Street, our customers will be within walking distance of the historic sights, landmarks, and shopping attractions of the city.

Our business will focus on serving ice cream sandwiches made with our very own homemade cookies, which will come in a variety of flavors and can be sold separately.

The filling of the ice cream sandwich will be ice cream, which will be supplied from local ice cream manufacturer, Magill’s. We aim to provide a family-friendly environment where people of all ages can socialize and treat themselves to a product that is unique and relatively inexpensive.

Industry Analysis

A La Charleston would be classified under the NAICS as Food Services or more specifically, ‘Ice Cream and Frozen Dessert Manufacturer’ (NAICS 311520) and as a

‘Cookie and Cracker Manufacturer’ (NAICS 311821). Charleston’s local grocery stores sell brand name ice cream sandwiches, however there are no options to meet the demand to create your own homemade flavored combinations. In order to be successful in these industries, the key success factors are location, being adaptable based on the consumer, having knowledgeable staff, and providing moderately priced quality products.

Market Analysis

A La Charleston is centered downtown Charleston, South Carolina. There are 105,961 people in the city that has an average age of 33. This age group is most likely to have a family and therefore the business will be catered to the families in the area and influx of tourists during certain months of the year.

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Marketing Plan

A La Charleston’s marketing strategy will be to target Charleston families with children and tourists through radio, newspaper, magazine, social media and promotional events.

We will also be promoting a loyalty program, which means by being a frequent customer they will earn rewards for each purchase made. Through promoting itself through these outlets the business shows itself differently by promoting a unique product that aims to promote a sense of community.

Management Team

A La Charleston is run and owned by Alexandra Manning, age 20, Arden Gill, age 21 and Courtney Hartline, age 20. Alexandra’s major is business marketing and she has experience in retail, specifically utilizing customer service skills. Courtney is Business

Management major also with experience in retail dealing with customer service issues.

Arden’s major is business marketing and she has previous work in marketing and promotional events.

Operations and Development Plan

A La Charleston will be renting out a space that was previously used by a deli. If the business sees growth and has large projected success then the future plan will be to purchase the already fully furnished building from the previous owner who we will be renting from. The business aims to bring on more employees and expand the products and variety of flavors if there is ongoing success.

Financial Projections

A La Charleston has projected that by our second year of business we will break even and by the third year will start to see a small profit.

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B. Company Description

Introduction

A La Charleston is a small ice cream sandwich shop that will specifically target families with children and seasonal tourists. The business will be located in downtown Charleston,

South Carolina and will be led by Alexandra Manning, age 20, Arden Gill, age 21, and

Courtney Hartline, age 20. The business is located at 40 Broad Street and will have both indoor and outdoor seating for its customers. A La Charleston can be reached at

(843) 853-8111 or via e-mail at alachareston@gmail.com.

Company History

In fall 2013 in an Entrepreneurship class at Mercyhurst University, three students under the direction of Mr. Gossett came up with the idea of an ice cream sandwich shop. With their combined love for both ice cream and cookies, Alex, Arden and Courtney believed a shop that combined both of these treats into one could be highly successful in a popular area like Charleston.

By going through the process of creating a business plan, the members saw this as more than just an idea and more as an opportunity for a successful business. The business plans to open in the beginning of May.

Mission Statement

The mission statement of A La Charleston is to bring a nostalgic experience of a homemade ice cream sandwich to the people and visitors of Charleston.

Tagline

The business’s tagline, which will be displayed in the store and on promotional material, will be “Cookies by Us, Concoctions by You.” This tagline embodies the business’s concept of providing materials and then allowing the customer to create their own overall product.

Product and Service

A La Charleston came up with the product list through team brainstorming and looking at other ice cream sandwich shops ideas across the nation.

Based on the brainstorming, the product list is:



Ice cream sandwich (small and large sizes). Provided list or create their own through a variety of different flavors of ice cream and cookies.

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

Individual cookies (sold individually and in packs). Variety of flavors based on seasons and customer preferences.



Jones Soda.

Variety of different flavors.



Water.

Bottled for convenience.



Seating.

Safe and comfortable indoor and outdoor seating.



Positive Experience.

Customers will have an enjoyable and entertaining experience led by experienced, energetic, helpful and kind employees.

Current Status

A La Charleston will be opening May 10, 2014. The following steps in opening the business have already been completed and the following steps remain to be completed for the business to start operations.

Milestones Completed



Business plan completed



Management team is in place



Loans received from the bank (one loan worth $80,000)



Promotional plan and materials set



Relationship formed with ice cream supplier



Signed lease with landlord



Equipment purchased

Milestones Remaining



Obtain additional funding



Customize shop



Plan loyalty program



Hire front end employees and bakers



Implement plan for grand opening



Obtain business permits

Funding Sought

A La Charleston will take out a loan of $80,000 from the Bank of Charleston to pay for the business after we put in $30,000 of the founders’ own money.

Legal Status and Ownership

A La Charleston is a partnership between Alexandra Manning, Arden Gill and Courtney

Hartline created in South Carolina. The ownership of the company is discussed in more detail in the management section of the business plan.

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II. Industry Analysis

A. Industry Size, Growth Rate, Sales Projections

A La Charleston is part of two industries that deal with food that are constantly growing and expanding, and usually have favorable projected sales based on the broad range of products in these industries. This is confirmed by reports, such as the one made by the

International Dairy Foods Association (IDFA), stating that the U.S. ice cream industry

“generated total revenues of $10 billion…Frozen dairy production and sales follows a clear seasonal pattern.” In the summer it “is the unchallenged season for eating ice cream and other related products. Production kicks up in March and April to fill retail and foodservice pipelines in the late spring and early summer. June is the highest production month of the year, but production remains strong through August to satisfy summer demand. Production continues through the end of the year.” In researching these industries, sources such as the National Restaurant Association say that the “2013 industry project predicts more jobs, better sales and a trend toward locally sourced food.”(“Restaurant Industry…”) Both industries are scheduled to see increased growth and the projected sales for the industries combined in 2013 is projected to hit about

$660.5 billion in sales.

B. Nature of Participants/NAICS Classification

A La Charleston will be classified under the NAICS as Food Services or more specifically, ‘Ice Cream and Frozen Dessert Manufacturer’ (311520) and as a ‘Cookie and Cracker Manufacturer’ (311821).

The general background of these particular industries is described on the Bureau of Labor

Statistics’ website as, “Industries in the Food Services and Drinking Places subsector prepare meals, snacks, and beverages to customer order for immediate on-premises and off-premises consumption. There is a wide range of establishments in these industries.

Some provide food and drink only, while others provide various combinations of seating space, waiter/waitress services and incidental amenities, such as limited entertainment.

The industries in the subsector are grouped based on the type and level of services provided. The industry groups are full-service restaurants; limited-service eating places; special food services, such as food service contractors, caterers, and mobile food services; and drinking places”(“Food Services and Drinking Places”). On census.gov, it is said that “this industry comprises establishments primarily engaged in manufacturing ice cream, frozen yogurts, frozen ices, sherbets, frozen tofu, and other frozen desserts (except bakery products)” (“Introduction to NAICS”).

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C. Key Success Factors and Industry Trends

Beginning with the first industry, “Ice Cream and Frozen Dessert Manufacturer’

(311520), there are a few critical success factors to be help earn a profit. Key success factors include, “making customer service the priority”(pdf), “change things up in the store,” “promote value over price” and “self promote”(“Ice Cream and Frozen Dessert

Shops”).

In regard to the first critical success factors, making customer service a priority, it is important to greet customers in a helpful and respectful method as well as provide samples, have deals and promotional contests. As well, by changing things up in the store, such as introducing new flavors of ice cream regularly, it encourages customers to return and bring in new ones because of the opportunity to try something different. It is also important to promote value over price. A business will do this by providing an item that has so much value and added benefit to the customer that they “do not mind the price.” Lastly, it is important that small businesses self promote. A small business can do this through low cost options, such as samples, coupons, giveaways, and word of mouth.

In regard to the trends surrounding this industry (Ice Cream and Frozen Dessert

Manufacturer’ (311520)), small businesses are advised to sell take-home options as well as single serve foods in their stores because people are attracted to quality and quick service options. Another growing trend in this industry is people looking for low fat and non-fat options. Recently it was found that “in the year 2003 low fat and non fat ice cream grew 4%”(“Ice Cream and Frozen Dessert”). People are becoming more mindful of what they are putting into their bodies (either because they have to or they want to) and therefore it is important that the business meets the demands of the consumer based on their health preferences or diet needs. Another emerging trend is people looking specifically for businesses that provide a family friendly atmosphere in shops.

Consequently, businesses are changing their stores in order to appeal to a broader audience.

The second industry is “Cookie and Cracker Manufacturer’ (311821). Such as the previously mentioned industry, there are also some key success factors that should be looked at by the business if they wish to remain competitive within the industry. The key success factors for this industry include: consider your market, competition, concise business plan, innovativeness, competitive pricing, and the environment.

The first key success factor is to consider the market in which your business is located.

Every market is different and therefore it is important to research and adapt to the businesses surroundings in order to help the business be successful. Another success factor is taking time to analyze the competition. Understanding the competition and

10 seeing what they do well aids your own business by helping it differentiate itself to compete in the marketplace. To help in understanding the competition, another important success factor is to have a concise business plan, which will help guide the business efficiently and effectively. Similar to the ice cream industry, consumers appreciate businesses that are innovative. Therefore, by broadcasting the business’ creativity and innovation, such as introducing new products regularly to keep the customer returning who will then tell others, this is demonstrating a key success factor (“Keys to Running a

Successful Bakery”). Being in this industry, there are many similar businesses. As a result, having competitive pricing is important in order to be successful. Pricing may be determined by researching the people in the area and finding out what they are willing to pay for the product based on its quality or value. Lastly, consumers are attracted to businesses that fit their personalities and values and therefore it is important that the business meet some of the market’s criteria for what they want in a business so that the business can be successful.

In regard to the trends in this industry, people are starting to broaden their product lists due to dietary and/or health reasons. Therefore, businesses must provide products that satisfy the customer’s demands. Popular new trends in food that people are looking for include: gluten-free, lactose-intolerant, nut-free, vegan friendly, kosher, fat free, low fat and no sugar options.

D. Long-Term Prospects of Industry

Both industries that fall under restaurant and food services will continue to experience continuous growth. Over the last couple of years, the National Restaurant Association has witnessed a general “3.8% year over year increase in total restaurant sales to $660.5 billion in 2013” (“Restaurant Stock Outlook”). It is projected that growth will eventually decrease when inflation increases. This industry will continue to remain because there will always be a population demanding food products.

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III. Market Analysis

A. Feasibility Analysis, Market Segmentation and Target Market Selection

A La Charleston will be a unique dessert shop providing customers with ice cream sandwiches created by customer request. The store will have a “coastal meets country” atmosphere, which will perfectly fit the surroundings of Charleston, South Carolina. Our shop will provide customers with a warm and inviting atmosphere and an opportunity to create their favorite combination with our products. The business will provide homemade cookies with varying flavors for a broad audience. Some of the cookie flavors will include Chocolate Chip, Snickerdoodle, M and M, Peanut Butter, Chocolate, Oatmeal,

Sugar, Brownie. Additional seasonal flavors, such as lemon and gingerbread will be introduced based on customer approval. The ice cream will come from Magill’s, which is a local ice cream supplier. A La Charleston will offer a broad range of flavors that will constantly be changing and introducing special flavors around the holidays and seasons.

Products will be sized either small or large and will come in a half moon holder made from recycled materials. With our varying flavors, the goal is to provide something that will satisfy all taste buds. To pick a flavor combination, customers will go through a stepby-step process in the shop where the customer first picks a cookie, then he or she will pick the ice cream flavor. They can pick add-ins to mix into the ice-cream as well, then a specialty treat such as nuts, chocolate chips, sprinkles or candy pieces to roll the sandwich in. There are other towns with places that serve ice-cream sandwiches, but so far Charleston is not one of them. This will allow us to serve a gap in the marketplace for ice cream sandwiches, which will make our product and our shop the unique treat it is.

For a business such as ours, location is one of the keys to its success. Research was done as to where our business should be located. We knew we wanted it to be in a place of high desire and low competition. After looking at cities such as Nashville, Portland,

Austin, San Antonio, and Atlanta, we found that there were already similar existing businesses that offered an option of an ice cream sandwich. Ultimately, we saw a gap in the market in one specific city and decided on Charleston, South Carolina. We finalized this choice because of its weather. Its average temperature in the month of January is 50 degrees and in the summer months it is 82 degrees (http://www.weather.com/weather).

We liked this information due to the fact that it did not get too cold for ice cream and that it did get warmer during the summer so that people would have an increase of desire for ice cream.

The demand for our product will most likely be seen in young suburban, working class families and couples, as well as tourists. More specifically, people ages 17-35 and young families will love this option as a way to take the kids out for ice cream some nights and for young couples to go on date night. The warm comfortable atmosphere will cater to our target market due to the more modern look. There is also a demand for our business because of the tourists in Charleston, who look for fun new places to dine and enjoy ice cream, since there are already locations in Charleston that sell only ice-cream.

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Americans are constantly aware of their diets but have no less of a sweet tooth. An ice cream cookie sandwich shop is a good idea for a small start-up business because it is similar to one of the trending industries, frozen yogurt. The business would be similar to frozen yogurt place by allowing customers to make their own dish, choose from a variety of flavors and toppings, and experience it all in a comfortable environment. People are always looking for the next big thing. In the research of businesses similar to our proposed one, we would be the only ice cream sandwich cookie shop in the region and would only face competition from the typical frozen novelty shops found in all towns, such as ice cream, gelato and frozen yogurt establishments.

This business would complement the pre-existing businesses located in the downtown core of Charleston. The area has a number of historical buildings, landmarks, luxury hotels and bed and breakfasts that are attractive to tourists. Since tourism is one of

Charleston’s major industries, the area is guaranteed a steady stream of new customers frequenting the area along with the local population.

We are targeting mainly Charleston families with children as our primary market. Our primary market involves the adults who are the purchasers who buy for themselves and their children ages 1-18. This is chosen as the primary market because they will be consistent business that can access our products year round. Our secondary market will focus on the tourists that travel to Charleston, both the families with children, and the retirees. Tourism is one of the biggest sources of income for the city of Charleston; catering to these tourists will give our shop the business it needs.

Primary Market: Charleston families with children

Demographic Segmentation

-

Age: 25-45

-

Gender: male and female

-

Family size: 2-4 people

-

Family lifecycle: married with children ages 1-18

-

Generation: Generation X and Generation Y

-

Income: $50,133 per household

-

Education: high school graduate or higher

-

Ethnicity: Caucasians

-

Nationality: American

-

Religion: Christian

-

Social class: middle class, full-nest I, II or III

Geographic Segmentation

-

Region: Charleston, South Carolina

-

Size of Metropolitan area: 122,689 (2011)

-

Population Density: urban

-

Climate: considered "temperate to subtropical." On average, the region enjoys 230 days of sunshine each year, and the average growing season lasts 294 days

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Psychographic Segmentation

-

Activities: recreational activities (ie. Sports, golf), water/fun parks, parades

-

Interests: performing arts, comedy shows, festivals, events, music, theatre, shopping, dining, art, music

Secondary Segmentation: Seasonal Tourists

Tourists during summer/spring months

Demographic Segmentation

-

Age: 25-45

-


-

Family size: 2-4 people

-

Family lifecycle: married with children ages 1-18

-

Generation X and Generation Y

-

Income: $75,000

-

Education: high school education and higher


-

Activities/Interests: site-seeing historical landmarks and areas of Charleston, beaches, shopping, dining, festivals

Tourists in off-season (October –April)

-

Age: retirees 55-75

-


-

Family size: husband and wife; partners

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Family lifecycle: empty nest

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Generation: baby-boomers

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Income: retirement funds

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Occupation: retired

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Education: high school graduate or higher

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Ethnicity: Caucasian

-

Religion: Christian

-

Social class: middle class – upper-middle class


-

Activities/Interests: sight-seeing historical landmarks and areas of Charleston, shopping, dining, art, music, theatre

B. Buyer Behavior

For the primary market, specifically Charleston families with children, they are looking for products that are not too expensive and that the whole family can enjoy. They enjoy loyalty programs with promotional deals and take home options.

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The secondary market includes both seasonal tourists during the summer spring months and those that come during the off-season. For the tourists that come during the summer and spring months, they most likely will have children and will be looking for options from a broad menu that can help satisfy everyone. People in this segment are very familyoriented and have traveled to Charleston to find something for everyone to enjoy. They enjoy well-priced items but good quality is important as well. A variety of flavors and items are necessary for this group because their children enjoy choices. People in this segment will visit stores that are welcoming to children, easily accessible, and friendly.

Places that appear overly crowded and dark will not appeal to these families seeing as their children will come first. People without children in this segment enjoy places with choices, and unique ideas that they have never seen before.

The tourists that come in the off-season are older or retired and are people who appreciate the basics and look for quality. People in this segment value free time now that they are retired. They are most comfortable in warm and welcoming shops that have families as their main customers. This segment also grew up with strong American pride and will enjoy this nostalgic treat.

C. Competitor Analysis and Competitive Analysis Grid

Competitive Analysis Grid

Name Ben and Jerry's Haagen-Dazs

Store

Sugar Bake

Shop

Yogurt

Mountain

Geographic Location

Staff

Product

Quality

Advertising

32 Degrees

A Yogurt

Bar

Advantage

Bake House

Bakery Café

Advantage

Advantage Advantage

Advantage Advantage

Advantage

Even

Advantage

Even

Disadvantage

Advantage

Even

Even

Disadvantage

Disadvantage

Advantage

Even

Even

Disadvantage

Even

Advantage

Advantage

Advantage

Even

Advantage

Advantage

Advantage

Advantage

Even

Direct Competitors

In Charleston, the only places where you can get ice cream sandwiches (which be the closest substitute to make your own ice cream sandwiches) are the grocery stores in the area.

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Indirect Competition

In Charleston most of the indirect competition for our business is not on Broad Street and is found elsewhere in the greater Charleston area.

Our closest competition would be:



32 Degrees a Yogurt Bar

 Ben and Jerry’s Store

 Bake House Bakery Café



Haagen-Dazs Store



Sugar Bake Shop



Yogurt Mountain

Future Competitors

A La Charleston is fulfilling a gap in the marketplace. If it does well it is believed that competitors will stay away from our specific industry due to the fact that it is very unique and specific and will hard to get into and compete in if A La Charleston becomes well established.

Summary

A La Charleston’s geographic location is to its advantage because it is located on the

Broad Street, which is within walking distance of main attractions. With regard to staff, the business will ensure that it has the best because it will spend the time interviewing employees to make certain they meet the what the business values and the community. Its products and quality will be unique and homemade giving it an advantage over most other business, although it will be on similar grounds with Haagen-Dazs and Ben and

Jerry’s, which have high quality products. Finally in regards to advertising, the business is at a disadvantage to Ben and Jerry’s and Haagen-Dazs, which are already well established reputation and therefore do not need to advertise. A La Charleston feels that establishing an absolute advantage in terms of tailored services is more than worth the tradeoff.

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IV. Marketing Plan

A. Product List

A La Charleston’s product list includes cookies, ice cream, outside garnish, old fashioned soda and bottled water. The process of building your own ice cream sandwich will consist of four basic steps. The menu will be a tool for customers to use and will resemble the following process:

Step 1 : Pick the size (small—4 inch round cookie or large, 6 in round cookie)

Step 2 : Pick the cookies



Chocolate Chip



Snicker doodle



Peanut butter



Double chocolate



Oatmeal



Sugar



Oatmeal Raisin



Almond



Chai



Spice



M&M



White chocolate chip macadamia



Seasonal flavors: lemon, peppermint, gingerbread, and pumpkin

The bakery will not be making all of our assorted cookie recipes at once; we will have 4 main flavors, and then 2 highlighted flavors of the week to cut down on waste.

Additionally, our cookies will be made in house, and we will also offer customers the option to purchase cookies in packages of 6 or 12 or individually. Customers can also purchase packs of ice cream sandwiches that they can choose themselves.

Step 3 : Choose from Magill’s Ice Cream flavors that will include:

Constant Flavors



Chocolate



Vanilla



Lemon sorbet



Peanut butter



Strawberry



Mint chocolate chip



Raspberry



Rocky road



Coffee



Red velvet



Map Nut



Maraschino Cherry



Pistachio



Bubblegum



Cotton Candy

Flavors will be supplied based on customer demand.

Seasonal Flavors



Pumpkin



Peppermint



Apple Pie



Eggnog



Watermelon sorbet



Strawberry Cheesecake



Cannoli

Turnover with flavors based on the season.

Step 4 : Pick “Whatchamacallits” garnish

The garnish is what will be rolled along the edges of the ice cream cookie sandwich.

Garnishes include:



Crushed Oreos



Peanuts



Sprinkles



Mini chocolate chips



Caramel sauce



Chocolate sauce



Coconut

 Candy pieces: Reese’s Pieces, peppermint pieces, or Toffee pieces

All of the outside garnishes will be prepackaged for quicker food preparation—candy specifically will be pre-packaged from vendor and stored in a temperature-controlled environment to ensure as much freshness as possible

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Also, there will be suggested flavors on the menu. Some examples of flavor combinations we might present to customers are:



Chocolate Deluxe —Chocolate chip cookie on top, chocolate ice cream, double chocolate chip cookie on bottom with a generous amount of mini chocolate chips rolled on the outside.



Luscious Lemon

—Lemon flavored cookies on top and bottom with a light coconut outside roll on.



Peppermint Pop— Peppermint cookies on both top and bottom with a scoop of delicious peppermint ice cream, rolled in mini chocolate chips and peppermint pieces.



The Tuxedo Chocolate cookies, vanilla ice cream in-between and mini chocolate chips on edge



Tiramisu

—Chocolate cookies, coffee ice cream, chocolate shavings on edge



Paradise Found – Lemon cookie, with vanilla and strawberry ice cream with coconut shavings



Throwback

– Sugar cookie, bubblegum ice cream and sprinkles

For beverages, the business will offer customers either bottled water or ‘Jones’s Soda.’

The soda flavors we will carry will be Root Beer, Cream Soda, Vanilla Cola, Orange

Cream, Green Apple, and Berry Lemonade.

B. Pricing Strategy

A La Charleston’s general pricing strategy will be value-based when it comes to pricing the ice cream sandwiches and cost-based for the ‘Jones’s Soda’s’ and extra cookies we sell on the side. We determined that our ice cream sandwiches are of value to our target markets because it is a unique product. For the Charleston families, it meets their requirements of not being too expensive. Purchasing our products will be an experience that both the parents and kids will enjoy. In regards to our other target market, seasonal tourists, those in the off season would be willing to pay more because they would be comfortable in our shop because of the nostalgic atmosphere and being retired they enjoy the simpler things in life (such as being surrounded by families with children). The other part of this target is the seasonal tourists who would be willing to pay a premium price because they have traveled here for an experience and will be looking for somewhere that offers an experience, is accessible for the whole family, is family-friendly and has many choices.

However, the sodas and cookies will be cost based because it’s a way for us to maximize our rate of return. Customers will be willing to pay for these products because even though they cost more than it would be to make them at home, they are still relatively inexpensive to the consumer. Cost based would be effective for the Charleston families and the tourists who might be looking for something a little extra to go along with the ice cream sandwiches and will not be too large of an expense.

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C. Location, Distribution, Logistics

A La Charleston will be located at 40 Broad Street in Charleston, South Carolina. Broad

Street is a popular street that is within walking distance from shopping, historical landmarks and tourist attractions. Currently this location is a hot-dog and lunch hot-spot for families and local Charleston people. This building is right on the sidewalk and has windows along the wall for those walking by to glance inside. There is space for outdoor seating for guests if they choose, as well as enough seating area for others to sit inside.

Also, Charleston has an airport that will help bring a constant influx of customers into the city. With nearby tourist spots such as the beaches and golf resorts, such as Kiawah and

Hilton Head, we will gain from travelers coming into Charleston, which is the closest city.

The building is already equipped with essential restaurant appliances such as a refrigerator, a freezer, an oven and stove top, as well as a counter for cashing people out and a display case up front. We will be able to purchase many of these additional pieces from the previous owners to cut down on the cost of new equipment. The space also has a bathroom already in place and looks to be easily made into a handicap friendly space. We will be renting this space at a price of $9400, which includes usage of the existing equipment but does not include utilities.

D. Promotional Strategies: Pre-Opening

A La Charleston has a series of promotional activities that the business will do to promote itself after signing the renting lease for the shop:

Put up temporary signage of shop



State our name, what we will be offering and opening date

Reach out to local media outlets



Meet with their advertising/marketing people to determine costs of advertising a small news story/press release about the store opening, specifically:



Newspapers



Post and Courier (daily newspaper)



Charleston City Paper (weekly)



Charleston Currents (online, twice-weekly)



Magazines



Charleston Home Magazine (cooking, decorating, gardening, nesting)



Charleston Magazine (eat and drink, arts and events, style and shop, house and garden)

 Charleston Weddings (wedding advice)



Radio

 Charleston’s At Work Radio Station (www.y1025.com). This is a family friendly radio station.

20

Have website designed

 Acquire services from “Charleston PR & Design”



Will be easy to navigate with only important information



Add articles and promotional information on opening of the business

YouTube



Free promotion tool



Upload videos about the products being offered and promote self at events

Facebook



Free promotion tool



Set up an account



Use it for ads, updates, promotions, coupons, upcoming events, competition details



Put link to Facebook on website

Twitter



Free promotion tool



Tweet updates leading up to opening of business



Seek insight from followers



Put link to Twitter on website

Use our own personal vehicles to promote business



Low cost



Must buy graphic design decals



Put the name, phone number and name of the business on rear window of owner car



Do not require permanent paint and can be changed frequently

Pinterest



Free promotion tool



Visual social media that business can make the most of by posting photos of our products and business



Shows creativity of the business

Instagram



Free promotion tool

 “Sneak peaks” of cookies, ice cream and the shop



Demonstrate creativity by showcasing our products appealingly

Have business stationary designed and printed



Charleston PR&Design



Works with small-medium sized businesses in the hospitality, tourism and restaurant industry

21



Can do web, logo and print



Letterhead, monarch paper, correspondence cards, business cards with business name, logo, contact information



Source of easy publicity

Join the Better Business Bureau, Chamber of Commerce, Rotary Club



Offers free publicity, networking with other businesses and additional credibility to the business

Hand out flyers and freebies at Charleston Beer Garden Festival



Free samples

Bring business cards to local stores around business



Free promotion tool

 Local businesses to approach: Tom’s Toys, Confederate Museum, Planter’s

Inn, Sweetwater Café, City Lights Coffee

Get listed in the Charleston business directory

E. Promotional Strategies: After Opening

After the store officially opens, the business will concentrate on implementing promotional activities for year one, which includes (“35 Ways…”).

Attend local public events



Relatively small business expensive and possibility of being free to have a booth at these events and festivals

 http://www.charlestoncvb.com/visitors/events_news/charleston-events/



Indicates upcoming festivals and events over the course of the year



Will pick ones that are more tourist and family friendly



Offer free samples to create traffic (will keep it simple due to cost therefore will use leftover cut cookies with dabs of ice cream on them)



Create a favorable impression with event and festival organizers in order to help in securing a spot for the following year

Be accessible to the customer



Have longer business hours



Hire an extra staff member in order to meet customers’ needs quickly to give them a better overall experience of our business



If people receive good service, will be willing to return again and therefore hiring extra staff for the first few months of business should pay off in the future

22

Hand out flyers downtown Charleston



Hire student to walk around with flyers during the warmer months May-

September



Have a promotional coupon on flyer to convince consumer to visit



Historic district of Charleston is always full of visitors and families who come in to the city to explore it by foot



Major streets to focus on: Calhoun St., Broad St., and Meeting St. (location of our business)

Have an attractive and changing window display



Create nostalgic atmosphere that will remind retired couples of their past and draw the curiosity of families and their children



Music playing



Bright colors



Attractive display draws in people to come and try the products



Base off of current seasonal flavors



Props do not need to be expensive and can be reused for future displays



Display menu

Partner with local food bank



Good business practice



Low Country Food Bank (http://www.lowcountryfoodbank.org/hope)



Donate day old cookies that have not sold to food bank on Sunday’s



Food bank updates website regularly and has a media and news section in which we could ask to be mentioned in

Continue to use social media (Facebook, Twitter, Pinterest, YouTube, and Instagram)

 Part of people’s everyday life



Use constantly so that customers can see products, deals, discounts, contests and what is happening currently with the business



Build customer base by updating and networking



Have social media specific goals (specifically, increasing awareness of our shop)



Facebook and Twitter



Use daily



Will be used for getting promotional information and events across quickly



YouTube



Have weekly postings

 Show footage of what’s happening inside and outside in the community



Instagram/Pinterest



Use daily



Will be used for pushing products visually

 Introduce weekly contest for best photo of someone’s ice cream sandwich taken in our shop

23

Advertise in the Post and Courier (daily newspaper)



Insert small weekly advertisement with a coupon or promotion



Most read newspaper in Charleston means more people will see it



Advertising cost would be higher than other newspaper but it is a good business decision in order to draw attract customers

Advertise in Magazines



Charleston Home Magazine (cooking, decorating, gardening, nesting)



Advertise in each new issue with some sort of color ad

Build Loyalty Program



Have loyalty punch cards made up



For each purchase one hole is punched and after ten purchases receive a small ice cream sandwich with the flavor and toppings of your choice

Keep Website Updated



Constantly update website



News articles



Coupons



Contest information



New products



Upcoming events that we will be attending



Loyalty program information

V. Management

A.

Management Structure

A La Charleston is a partnership of limited liability shared between three individuals.

Each co-founder will own and invest equal amounts into the business. The co-founders of the business are:

Courtney Hartline— Co-founder; HR, Recruiting

Courtney was born and raised in Salt Lake City, UT. In high school she was captain of her volleyball team and co-captain of the women’s high school golf team. She won several awards in leadership and was a member of the National

Honors Society. After high school she moved to Erie, PA to attend Mercyhurst

University where she graduated with a degree in Business Management with a minor in Strategic Communications from the Walker School of Business. This degree was the foundation for her to build the dream of staring her own business.

She decided to team up with colleagues and begin their own ice cream sandwich business together.

Courtney’s primary focus areas are business development, hiring, and management. In her spare time, Courtney enjoys golfing, running, and traveling.

24

Alexandra Manning- Co-Founder; Money Management, Product & Quality

Management

Alex was born in Rochester, NY and attended Wheatland-Chili High School. In high school she participated in many sports and clubs including Varsity Soccer,

Yearbook Club, and National Honor Society. She then attended Mercyhurst

University in Erie, PA where she studied Business Marketing. With her degree in

Business marketing, she took many classes that focused on the basics of business, and understanding customers to satisfy their needs with marketing. In her free time, Alex enjoys cooking and baking, and being outside. With her degree in business marketing, Alex’s tasks will focus on new product creation to meet customer desire, marketing techniques to bring in new customers, and promoting the business. Another big focus for Alex will be baking with the hired bakers through training and orientation, as well as coming up with recipes for our business.

Arden Gill - Co-Founder; PR, Marketing

Arden was born in Nanaimo, British Columbia, Canada and attended boarding school at Shawnigan Lake School. In high school she was a varsity level rower and cross country runner and a member of the debate and Model UN team. She decided to pursue a degree outside of Canada and decided on Mercyhurst

University in Erie, PA based on their rowing program and Walker School of

Business. Arden’s degree focused mostly on the marketing, advertising and promotion aspects of business. Through this knowledge, she will contribute her knowledge of marketing and advertising the shop. In her free time she enjoys being outside, playing sports and traveling.

After reviewing our management team, there are a few gaps in the management plan, they include:

-

Payroll and Taxes

-

Health and Food Safety instruction

-

Website and Information Systems

-

Investor

The business has decided that it will outsource all accounting to a local firm. In regards to dealing with health and food safety instruction, the business will pay for employees to attend classes and for their assessment. In addition the business will hire the help of a local investor in making proper business investments. Also for the website and other information systems the business will deal with a local ad agency.

25

B.

Organizational Chart

A La Charleston co-founders decided that all three will evenly share responsibilities and power. The bakers and employees will work together and will come to the manager that is on duty during their shift.

General Manager

Arden Gill

General Manager

Alexandra Manning

General Manager

Courtney Hartline

Bakers/Employees

C. Number of Employees, Job Descriptions and Specifications

1. Manager

A good manager is essential for our start-up business. Therefore a successful manager requires certain skills and a level of expertise to ensure that the business achieves results

(“25 Qualities…”).

Traits of a successful manager would include:

-

Communication skills

Leadership skills (“How to Manage People”).

-

Being able to adjust quickly to unexpected circumstances

-

Strive to build personal relationships with their teams and customers

-

Help in the development of others

-

Aware of their own personal development

Objective : plan, direct and coordinate the operations of the ice cream sandwich shop.

Essential Functions:

-

Oversee the design, development and construction of the layout of the shop

26

-

Select contractors and equipment suppliers to complete the shop

-

Obtain and seek the necessary financing for the business

-

Plan, coordinate and execute marketing and promotion (including special events, promotional activities and Grand Opening activities)

-

Discuss with baker on goods to be sold in the shop and set sizes and prices

-

Seek the most cost effective suppliers for the ingredients that go into the products that are to be sold

-

Keep adequate levels of inventory, while maximizing inventory turnover and losing no sales due to out of stock

-

Ensure that product quality and shop cleanliness meet the necessary standard required

-

Recruit, interview, select and hire employees

-

Manage staff (state their responsibilities, duties, work schedules)

Direct business’s financial and budget activities to fund it and increase efficiency

-

Perform accounting for the business

Duties/Responsibilities :

-

Focus employees on achieving top performance to achieve desired outcomes

-

Analyze and plan shop sales levels and profitability

-

Plan marketing activities (discount schemes, events)

-

Prepare reports at the end of each week on sales, food, staff

-

Schedule with baker when certain products will/will not be offered

-

Manage staff and provide them with feedback

-

Ensure that all employees follow proper rules and regulations

-

Advise, train and motivate staff

-

Organize and supervise the shifts of the bakers and employees

-

Ensure that a standard of quality control is maintaining (including hygiene, health and safety)

-

Take responsibility for the business performance of the shop

-

Direct the overall operation of the business

-

Responding to customer complaints

-

Checking stock levels and ordering supplies (ingredients and housekeeping)

-

Preparing cash drawer

-

Supervise staff

-

Make crucial business decisions

Job Specification for General Management :

Cost Accounting, Developing Budgets, Financial Planning and Strategy, Decision

Making, Process Improvement, Strategic Planning, Verbal communication, Customer

Focus, Management Proficiency, Managing Profitability, Quality Focus

Education and Experience:

Bachelor’s degree in Business Administration o Specialization in management

-

Coursework: Principles of accounting, Applied Decision Methods for Business,

Finance, Business Ethics, Entrepreneurship

27

Working Conditions :

-

Work in a comfortable office in the back of the shop

-

Put in on average a 40 hour week

-

Flexible hours and overtime are often required based on business demand

2. Front Employee

Front-end employees will be the first and the last person that customers see. This employee is required to be personable, well trained and professional so that customers have a good experience and keep coming back (“The 10 Essential…”).

Traits of a successful front-end employee would include:

-

Personable

-

Organized

-

Able and responsible enough to handle money

-

Able and responsible enough to handle food products

-

Creative

-

Ambitious

-

Flexible

-

Upbeat

Objective:

Provide customers a great experience while preparing their ice cream sandwich and handling front end duties.

Duties/Responsibilities:

-

Make sure the front end area (seating and food prep area are clean and well stocked)

-

Refill food items and things such as napkins when needed.

-

Greet customers with a smile

-

Handle all transactions responsibly

-

Being able to handle non-cash transactions properly

-

Compute and record totals of transactions.

-

Count money in cash drawers at the beginning of shifts to ensure that amounts are correct and that there is adequate change.

-

Issue receipts, refunds, credits, or change due to customers

-

Being able to provide training assistance to any potentially new employees

-

Handling the opening and closing responsibilities (cleaning, organizing, restocking)

-

Answer customers' questions, and provide information on procedures or policies

Education and Experience:

Front end employees are entry-level positions and will mainly require customer service skills and being able to do basic math.

-

At least 2 years of high school completed

28

-

17 years or older

Must have a valid food handler’s permit

Any awards, scholarships, or other materials that would show good customer service or leadership skills are recommended.

Working Conditions:

-

Work in a front end setting mostly on your feet

-

Having flexible hours and willing and able to stay longer if needed

-

Be able to work up front alone while management is in back

3. Baker

Objective: To make and bake the cookies for the ice-cream sandwiches before the shop opens and during the hours of operation (“What Does a Baker Do”).

Traits of a good baker:

-On-time

-Dedication to quality products

-Good time-management skills

-Can take direction from management

Essential Functions

-

Use ingredients to prep and bake cookies for the day before store operating hours.

-

Properly bake the cookies to regulation and health codes.

-

Provide consistent quality bakery goods for the customers.

-

Efficiently maintain a clean and safe kitchen environment, including a general

-

Cleaning of machines, floors, utensils, and bakery surfaces.

-

Properly store excess cookies and ingredients

-

Work during operating hours in the back to maintain efficient amounts of cookies.

-

Stick to management recipes, or change with permission, while making the products.

Creative new ideas and cookie items for the customer’s enjoyment.

Duties/Responsibilities

-

Come into work before opening to prepare inventory

-

Work during hours of operation to prepare more cookie product

-

Maintain a clean work habit

-

Maintain a clean work/kitchen environment, with proper clean up when needed

-

Work with management to inform them of low kitchen/baking supplies

-

Store excess ingredients and cookies safely

-

Work with management to create new culinary ideas for the shop

29

Job Specification

Competency/Skills Required: Baking skills, quality management of products, time management, team skills, can follow instructions, responsible, efficient with duties, decision making, minimum strength for lifting heavy items, and an ability to stay on feet moving for long periods of time.

-

Must be a responsible individual who will consistently show up for work on time and is dependable.

-

Must be interested or have a desire to enhance baking skills.

-

Must be able to follow management instructions and recipes.

-

Must have the ability to work alone as well as communicate with management and front-room employees

Education and Experience

-

Must have at least one previous position in the food preparation or culinary industry (preferable if in a baking position or cooking.)

-

Must be 18 years or older

Working Conditions

The job will require the worker to constantly be on their feet working in the back kitchen preparing cookies. This employee will mostly stay in the back with a warm kitchen climate, and will often be working with one other working, or sometimes on their own.

This job requires the worker to show up early before the opening. Worker will typically work 5-hour shifts with two hours working before opening, and 3 hours maintaining product inventory.

D. Store Hours of Operation

The business will have a seasonal fluctuation in the months of May to August where all the tourists will visit Charleston. In the months of September to April, the main customers will be people who live in Charleston, and older tourists who have those months free.

September-April (bake 8-11, close for 45 minutes, open for 45 minutes)

Monday- Closed

Tuesday- 11AM- 7PM

Wednesday- 11AM 7PM

Thursday- 11AM-7PM

Friday- 11AM-9PM

Saturday- 11AM-9PM

Sunday- 11AM-6PM

May-August (bake 8-11, close for 45 minutes, open for 45 minutes)

30

Monday- Closed

Tuesday- 11AM-7PM

Wednesday- 11AM-8PM

Thursday- 11AM-8PM

Friday- 11AM- 10PM

Saturday- 11AM-10PM

Sunday- 11AM-7PM

Note: Employees and Bakers will work 4-6 hour-long shifts (plus opening and closing).

Number of Employees:

Employees- 3 during off season, 5 during busy season

Bakers- 2 during off season, 3 during busy season

Managers will also do baking and front-employee tasks to save money during the opening of the business

E. Recruitment and Selection

There will be various ways in which the business will go abut recruitment for the bakers and front-end employees (“How to Hire…”).

-

College flyers on bulletin boards

-

Facebook page will have a post about hiring (different applications for different openings to be filled)

-

Sign in the window will say now hiring (for multiple positions)

-

Newspaper Ad

-

Our website will have a job posting and application

-

Twitter account will announce when hiring

-

For entry-level, we will invite high school counselors to hand out applications to students 17 years or older who are interested.

Selection Process

Employee



Application-basic handwritten application which can be provided by a manager



Interview with a manager involving questions seen fit for the position



Basic food knowledge/sanitation knowledge



Look up references



Customer service questions/review



Situational questions

Baker



Application- basic handwritten application which can be provided by a manager



Interview with a manager involving questions seen fit for the position



Basic food knowledge/sanitation knowledge

31



Look up references



Culinary courses in past



Situational questions



Trial Run



Creativity questions regarding flavors and combinations

F. Compensation Structure

A La Charleston aims to be a quality business for our customer but also a good working environment for our employees. Therefore, we will pay both our employees and our bakers above minimum wage to ensure they will put forth effort in their position. The front employees will receive above minimum wage as an incentive to work for our business rather than other food-service businesses that pay only at minimum wage. The baker will receive a starting rate of $9.00 because their position requires both skill and background experience. Neither our bakers nor employees will receive full-time benefits seeing as their positions will only be part-time. We will only hold training and orientation sessions that will last as long as one regular shift (4-5) hours, making the pre-opening payroll very small.

Employee



$7.50 base pay



Raise of .20 every 2 or 3 months



Overtime $8.50

Baker



$9 base pay



Raise every 2 or 3 months of .20



Overtime $10

Managers



Get a % of the earnings based on time put in and net income generated

VI. Financials

A. Sources of Funds:

Source

Arden Gill

Courtney Hartline

Alex Manning

Line of Credit with Bank

Uses of Fund

Item

Amount

Cost

$ 10,000

$ 10,000

$ 10,000

$ 80,000

32

Furniture

Initial Inventory

Sales and Marketing

Equipment

Cash and Covering Losses

B. Assumptions Sheet

$2,000

$10,000

$26,000

$16,000

$26,000

A La Charleston assumes that:

-

Based on the prices per ingredient that we found, it will be .20 cents to produce a small cookie and .40 cents for a large cookie

-

The ice cream will be between .10 cents and .15 cents, depending on the sandwich size

-

The toppings will be between .2 cents and .4 cents per sandwich

-

The rent will remain the same (continuously be $9400 a month with all the costs of the building and the equipment already in it. Utilities will be $1000 a month because of the high usage of the electrical, lighting and kitchen equipment)

-

Opening on May 10, 2014, which is the first week of May, and is the day before

Mother’s Day, which will help bring in more sales

Magill’s will provide all the flavors and continue the same flavors we plan on purchasing

C. Start Up Costs

A La Charleston startup costs a month’s worth amount of supplies, product ingredients and then the rest of the costs will only be incurred once by the business unless they need to be replaced.

The startup costs are as followed:

Start Up Costs Manufacturer/Supplier Quantity Price Total

Kitchen Equipment

First Aid

Freezer bags

Storage Shelves

Gas Convection Oven

Knive Set

Cutting Board

Pot set

Manufacturer/Supplier Quantity

Target.com 1

Foodservicedirect.com Case of 1000

Amazon 2

Foodservicedirect.com 2




Price

$9.99

$54.35

$65.00

$5,282.85

$235.75

$80.35

$74.55

Total

$9.99

$54.35

$130.00

10,565.70

$235.75

$80.35

$74.55

Mixing Bowls

Mixer (12 Quart)

Sheet Trays

Cooling Racks

Garbage container

Large Garbage Bags

Stainless Steel Work Table

Food scale

Rolling Pins

Scissors

Aluminum Foil

Plastic Wrap Film

Spice Containers

Dough cutter

Oven Mitts

Sifter

Dough Tubs

Flour Bins

Wooden Spoons Set

Spatulas

Measuring Cups/spoons

Kitchen Equipment Total

Baking Ingredients

Solid Unsalted Butter

Whole Milk

All Purpose Four

Unbleached Cake Flour

Granulated Sugar

Light Brown Sugar

Confectioner's Sugar

Baking Soda

Table Salt

Cocoa Powder

Cornstarch

Canola Oil

Vanilla Extract

Almond Extract

Ground Cinnamom

Pumpkin


Foodservicedirect.com 2 webstaurantstore.com 20 webstaurantstore.com 1


Amazon.com 1 webstaurantstore.com 1


Foodservicedirect.com 1 cutleryandmore.com 1


Foodservicedirect.com 1 usplastic.com globalsugarart.com fab.com 1 webstaurantstore.com 1

20

1 doughexpress.com solutions.blair.com

Target.com katom.com amazon.cm 1

1

1

2

3


Foodservicedirect.com 4 cases of 36


Foodservicedirect.com 8 Cases of 8



Foodservicedirect.com 6 Case of 24

Foodservicedirect.com 2 25lbs Case










$37.35

$30.25

$16.75

$60.35

$86.65

$14.95

$62.75

$82.65

Price

$108.85

$35.25

$32.35

$30.35

$45.35

$29.05

$45.35

$65.35

$37.80

$2,590.25

$16.73

$202.99

$52.35

$12.96

$212.99

$40.35

$126.35

$14.95

$171.45

$51.85

$0.33

$6.99

$14.99

$10.49

$2.00

$19.98

$11.99

$20.61

$7.24

$37.80

$5,180.50

$334.60

$202.99

$52.35

$12.96

$212.99

$40.35

$126.35

$14.95

$171.45

$51.85

$6.60

$6.99

$14.99

$10.49

$4.00

$59.94

$11.99

$20.61

$7.24

$17,732.68

33

Total

$435.40

$176.25

$258.00

$121.40

$90.70

$224.10

$60.50

$67.00

$120.70

$173.30

$29.90

$125.50

$330.60

$58.10

$90.70

$130.70

Ground Ginger

Ground Gloves

Ground Nutmeg

Unsweetened Chocolate

Baking Bar

Smooth Peanut Butter

Old-Fashioned Rolled Oats

Lemon Extract

Semi-Sweet Chocolate Chips

Peppermint Extract

Cream of Tarter

Ground Gloves

Ground allspice

Ingredient Total

Kitchen Cleaning Supplies

Dustpan/Broom

Service Mat

Bucket/Wringer

Mop Head

Mop Handle

All Purpose Cleaner

Floor Soap

Hand Soap

Dish Soap

Roll Towel Dispenser

Paper Towels

Rags

Sprayer Bottles

Kitchen Cleaning Supplies

Total

Seating Area

Chairs

Tables

Paint

Trash Bins

Napkin Holders








Foodservicedirect.com 4 x 25lbs





$76.05

$50.15

$95.55

$36.35

$66.75

$54.25

$139.15

$65.75

$55.55

$81.05

$50.15

$66.95






Price

$24.85

$149.75

$69.65

$77.65





$14.05

$45.75

$67.05

$30.05



$34.65

$39.85

Foodservicedirect.com 6 x 25lbs $41.55

Foodservicedirect.com 2 Cases of 152 $31.65

Foodservicedirect.com 2 Cases of 6 $40.05

Manufacturer/Supplier

Ikea

Ikea

Lowes

Target

Target

Quantity

2

2

28

7

6

Price

$30.00

$39.00

$26.97

$22.99

$6.99

Total

$840.00

$273.00

$53.94

$45.98

$41.94

$152.10

$100.30

$95.55

$218.10

$267.00

$217.00

$139.15

$263.00

$55.55

$81.05

$50.15

$66.95

$4,198.75

34

Total

$24.85

$599.00

69.65

$77.65

$14.05

$137.25

$268.20

$90.15

$103.95

$39.85

$249.30

$63.30

$80.10

$1,817.30

Shelving

Décor

Frames

Seating Area Total

Cleanings Supplies

Ikea

Ikea/Flea Market

Ikea

5

10

$14.99 $74.95

$30.00 Budget $30.00

$1.99-$3.99 $53.92

$1,413.73

Cleaning Spray

Toilet Paper

Hand Soap

Soap Dispenser

Cleaning Supplies Total


Amazon

Amazon

Amazon

Amazon

Quantity

2

10

4 x 48 pack

8 pack

Price

$4.96

$21.29

$26.99

$17.95

Total

$49.60

$85.16

$215.92

$35.90

$386.58

Front End/Bills/Permits

Food Inspection and Licenses

Phone Service 8x8, Inc.

Insurance

Utilities

Internet

Rent

Wet Floor Caution Sign

Phone System/Answering machine

Fire Extinguisher

VERIFONE VX510 2MF credit card reader

Cash register

Receipt Paper

Chalk/Eraser

Pens

Accounting and Legal

Repairs and Maintenance

Vaccum

Front End/Bills/Permits

Total

Candy Toppings

Crushed Oreos

Chopped Peanuts


ATTsavings.com loopnet.com webstaurantstore.com 1

1 $19.95 $19.95

700 per sq. ft. $12 per square $9,400.00

$4.39 $4.39

Best Buy 1 $67.99 $67.99

Amazon

Verifone

2

1

1

Quantity

Office Depot

Staples

Amazon

Amazon

1

4 x 24 rolls

1

1 package

Arms Tax & Accounting 1 person

Amazon 1


Nuts.com

Nuts.com

Quantity

4 x 5lbs bags

4 x 5lbs bags

Price

$19.99

$21.39

$260.81

$249.00

$43.92

$7.27

$1.23

$100/hour

$33.95

Price

$37.90

$33.20

Total

$156.00

$19.99

$700.00

$2,500.00

$42.78

$260.81

$240.00

$175.68

$7.27

$1.23

$1,500.00

$600.00

$33.95

$15,730.04

Total

$151.60

$151.60

35

Sprinkles

Mini Chocolate Chips

Caramel sauce

Chocolate Sauce

Shredded Coconut

Reese's Pieces

Peppermint Pieces

Toffee Pieces

Candy Toppings Total

Ice Cream Flavors (Magill's

Ice Cream)

Cannoli

Strawberry Cheesecake

Apple Pie

Cotton Candy

Bubblegum

Pistachio

Maraschino Cherry

Maple Nut

Pumpkin

Peppermint

Eggnog

Cotton Candy

Watermelon Sorbet

Chocolate

Vanilla

Lemon Sorbet

Peanut Butter

Strawberry

Mint Chocolate Chip

Raspberry

Nuts.com

Nuts.com

Capporder.com

Capporder.com

Nuts.com

Nuts.com

Nuts.com

Nuts.com

4 x5lbs bags

4 x 5lbs bags

2 x 4 gallons

2 x 4 gallons

4 x5lbs bags

4 x 5lbs bags

4 x 5lbs bags

4 x 5lbs bags


Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Quantity

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

$28.40

$24.20

$63.90

$59.10

$33.20

$75.90

$28.40

$75.90

$29.65

$29.65

$29.65

$29.65

$29.65

$29.65

$29.65

$24.75

$29.65

$29.65

Price

$29.65

$29.65

$29.65

$29.65

$29.65

$24.75

$29.65

$29.65

$29.65

$29.65

$177.90

$177.90

$177.90

$177.90

$177.90

$177.90

$177.90

$148.50

$177.90

$177.90

Total

$177.90

$177.90

$177.90

$177.90

$177.90

$148.50

$177.90

$177.90

$177.90

$177.90

$151.60

$151.60

$151.60

$151.60

$151.60

$151.60

$151.60

$151.60

$1,516.00

36

Banana

Rocky Road

Coffee

Red Velvet

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

Magill's Ice Cream

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

6 of 3 gallon tub

$29.65

$29.65

$29.65

$29.65

Ice Cream Flavors Total

Service Items

Food Cambros

Latex Free Gloves

Disposable Spoons

Bowls

Twist Ties

Cookie Carrier Containers

Napkins

Manufacturer/Supplier Quantity Price

Bigtray.com

Etundra.com uline.com plasticcontainercity.co

m thewebrestaurantstore.

com cellobags.com

4 selectysafetysales.com 2 Cases of

1000 restockit.com 4 cases of

1000

2 Cases of

1000

2 x 2000

$5.62

$45.45

$42.06

$115.83

$24.00

4 packs of 900 $73.75

1 pack of 8000

2 x 1000

$17.94

$29.99 Cookie Bags

Disposable Cups

Service Items Total

Beverages

Jones Soda

Arrowhead Bottled Water

Beverages Total ecoproductstore.com


Jones Soda

Sam's Club

10 packs

Promotion

Website

Front Sign


Charleston PR&Design elliot-design.net

Radio ad WSSX 95.1

Business Cards/Loyalty Cards FedExOffice.com

Ad Banner for Events

Static Vehicle Cling

Kinkos.com buildadesign.com

Quantity

1

1

1/2 month

2x250 cards

1

5 - "12 x 24"

$48.70

Quantity

70 packs of 12 $18.99

6 packs of 200 bottles

$39.80

Price

Price

$2,347

$1,000

$450

$29.89

$89.79

$53.32

$177.90

$177.90

$177.90

$177.90

$4,210.80

37

Total

$1,329.30

$238.80

$1,568.10

Total

$2,347

$1,000

$450.00

$59.89

$89.79

$53.32

Total

$56.20

$90.90

$168.24

$231.66

$48.00

$295.00

$17.94

$59.98

$48.70

$1,016.62

Promotion Total $4,000.00

Signange

Opening Soon'

Now Open'

Manufacturer/Supplier mydoordesign.com mydoordeisgn.com

Quantity

1 x 2'x6' banner

1x 3'x5' banner

1

Price

$29.50

$33.88

Total

$29.50

$33.88

Hours of Business' - vinyl window labels

Open/Close reversible sign mydoordesign.com displays2go.com 1

$12.95

$4.37

$12.95

$4.37

Hand washing sign

Name Tags

P-touch PT-70BM Electronic

Labeler

Signange Total safetysigns.com

Nametagcounry.com

Officedepot.com

1

30

1

$5.85

$57.00

$19.99

$5.85

$57.00

$19.99

$163.54

START UP COSTS GRAND TOTAL: $53,754.14

D. Opening Day Balance Sheet

For the following opening day balance sheet all numbers came from start-up costs and sales projections. For liabilities, we will take out an $80,000 loan and pay $1,286 per month for loan and interest.

A La Charleston

Assets

Current Assets

Cash in Bank

Inventory

Prepaid Expenses

Other

Total Current Assets

Fixed Assets

Machinery & Equipment

Furniture & Fixtures

Leasehold Improvements

Real Estate / Buildings

Other

Total Fixed Assets

Specify

$-

9,926

700

-

$10,626

$15,746

1,188

-

-

-

$16,934

-

38

39

Total Other Assets

Total Assets

Liabilities & Net Worth

Current Liabilities

Accounts Payable

Taxes Payable

Notes Payable (due within 12 months)

Current Portion Long-term Debt

Other current liabilities (specify)

Total Current Liabilities

Long-term Liabilities

Bank Loans Payable (greater than 12 months)

Less: Short-term Portion

Notes Payable to Stockholders

Other long-term debt (specify)

Total Long-term Liabilities

Total Liabilities

$-

$27,560

$-

-

-

11,424

-

$11,424

$80,000

1,286

-

-

$81,286

$92,710

Owners' Equity (Net Worth)

Total Liabilities & Net Worth

$(65,150)

$27,560

Current Assets:

-

For cash in bank: we will not have any we will be working with a line of credit

-

For inventory: We collected our amount by adding up the ingredients for cookies, the ice cream, and topping costs giving us $ 9926

-

For Prepaid expenses: $700 for insurance

Fixed Assets:

-

For machinery and equipment: We included the expenses of our new oven and mixers, the rest of the kitchen machinery will already be in the building and calculated as depreciation costs with the rent

-

For furniture and fixtures: We came up with a total amount (shown in start-upcosts document) of all the furniture and fixtures we will be purchasing

40

-

For real-estate/building: We will be renting the space for $9400 a month, which includes the depreciating equipment which will be in the kitchen

Current Liabilities:

-

Current Portion Long-Term Debt: This will be the payment on our loan

Long Term Liabilities

-

Bank Loans Payable: total loan which is $80,000

Short Term Portion: $1,286 which is the opening day’s payment on the loan (with interest)

E. Sales Projections

Category 1 : Small Ice Cream Sandwich (2 cookies, ice cream, edging)

-

$3.75

-

4 inches in diameter

Category 2 : Large Ice Cream Sandwich (2 cookies, ice cream, edging)

-

$4.50

-

6 inches in diameter

Category 3 : Cookies (Single Small)

-

$.99 each

Category 4: Cookies (Single Large)

-

$1.50 each

Category 5 : Cookies (Packs of Small)

-

6 for $5.00

Category 6 : Cookies (Packs of Large)

-

6 for $8.00

Category 7 : Multi-Ice Cream Sandwich Pack (Small size)

-

4 for $12.00

Category 8 : Multi-Ice Cream Sandwich Pack (Large Size)

-

4 for $15.00

All of the above categories used value-based costing to determine their prices. We chose value-based costing for these items because we recognize that the target market in this environment will be willing to pay the appropriate price for these items, due to their value. People will also pay for these higher prices because they are not only paying for the end product, but the convenience of getting to chose, and the experience of the shop.

41

Category 9 : Jones Soda (Variety of flavors, but all will be the same price)

-

$2.75 each

Category 10 : Water bottle

-

$1.75 each

Both of the above beverage categories use cost-based costing to determine their price. We chose to use cost-based costing for these items because we are not preparing these items.

We simply will buy the beverages in bulk and add a mark-up to their prices to receive a percentage of the sales. The water bottles will have a 40% mark-up on their original price of $1.25. The Jones soda will have less of a mark-up because their cost for us to purchase the sodas is already steep for a soda.

For each number representing a month’s sale of a product, we figured how many of each product we will sell on an average daily basis. This number is then multiplied by the days we are open (6), then multiplied by the weeks of each month (4) For the Summer months of May to August, our sales will be at their highest due to the tourists and warmer temperatures bringing in business. We figure more people will buy ice cream sandwiches over our other goods during these months. People will also buy the most water, and will primarily come in for the sandwiches. We will see our biggest sales in sandwiches in these months mostly on the weekends from families, and during the week from tourists.

For an average day in May/June/July/August we project we will sell :

Category 1)170 units for May, 180 June/July, 190 August Category 6) 30 units

Category 2) 90 units Category 7) 15 units

Category 3) 30 units



Category 8) 10

Category 9) 35

Category 10) 50

The total sales for May will be $50,483

The total sales for June will be $51,383

The total sales for July will be $51,383

The total sales for August will be $52,348

For the fall months of September to November, we will see less business than the summer because many of the tourists have left. In these months we will see a rise in customers coming in for just cookies and the Jones Sodas. These people will also have just started school and families will be busy, so more sandwich packs will be sold for families to bring back home. Our biggest sales will come from local college students and workers on their lunch break. These people will be more likely to come in for a cookie or packs of cookies to bring back home for their families, or to their work friends.

For an average day in September/October/November we project we will sell :

Category 1) 140 units for Sep/Oct, 130 in November Category 6) 35 units

42





Sep.

The total sales for September will be $49,328




Category 10) 30 units, 34 in

The total sales for October will be $49,160

The total sales for November will be $48,080

For the winter months of December to February, college students will be on Christmas break and many families will be traveling. These months will have the lowest amount of sales, and will see a larger amount of older customers. These customers will be workers who stop by during their lunch hour for a treat, or after dinner. Winter will be our slowest period, and we will have to draw in more customers will cookies and winter-themed items.

For an average day in December/January/February we project we will sell:

Category 1) 125 units Category 6) 40 units









Our total sales for December/January/February will be $51,314 a month

For the spring months of March to April, people will be starting to go into the city more and walk around for the weather and flowers. Students will be nearing the end of their school year and may be enjoying the city more. Families will come out more for the weekends and will buy more cookies and packs of sandwiches than previous months. Our single sandwich numbers will be rising and getting closer to our peak numbers that we see in the summer months.

For an average day in March/April we project we will sell :











Our total sales for April/March will be $50,483 a month

Cat 3 units sold

Sale price @ unit

Cat 3 TOTAL

Cat 4 units sold

Sale price @ unit

Cat 4 TOTAL

Cat 5 units sold

Sale price @ unit

Cat 5 TOTAL

Cat 6 units sold

Sale price @ unit

Cat 6 TOTAL

Twelve Month Sales Forecast Part 1

Ice Cream Sandwich Company

Opening In

May-

14

May-

2014

Jun-

14 Jul-14

Cat 1 units sold

Sale price @ unit

Cat 1 TOTAL

4080 4320 4320

Aug-

14

4560

Sep-

14

3360

Oct-

14

12-month Sales Forecast

Nov-

14

Dec-

14

Jan-

15 Feb-15

3360 3120 3000 3000 3000

Mar-

15

3360

Apr-

15

3360

Annual

Totals

42840

3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75

15,300 16,200 16,200 17,100 12,600 12,600 11,700 11,250 11,250 11,250 12,600 12,600 160,650

2160 2160 2160 2170 1440 1440 1400 1200 1200 1200 1680 1680 19890 Cat 2 units sold

Sale price @ unit

Cat 2 TOTAL

4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50

9,720 9,720 9,720 9,765 6,480 6,480 6,300 5,400 5,400

4.50 4.50 4.50

5,400 7,560 7,560 89,505

720

0.99

713

840

720

0.99

713

840

720

0.99

713

840

720

0.99

713

840

960

0.99

950

840

960

0.99

950

840

960 1200 1200

0.99 0.99 0.99

950 1,188 1,188

840 1080 1080

1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50

1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,620 1,620

1080 1080 1080 1080 1440 1440 1440 1560 1560

5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00

5,400 5,400 5,400 5,400 7,200 7,200 7,200 7,800 7,800

720 720 720 720 840 840 840 960 960

8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00

5,760 5,760 5,760 5,760 6,720 6,720 6,720 7,680 7,680

1200 1080 1080 11520

0.99 0.99 0.99

1,188 1,069 1,069 11,405

1080 840 840 10800

1.50 1.50 1.50

1,620 1,260 1,260 16,200

1560 1440 1440 16200

5.00 5.00 5.00

7,800 7,200 7,200 81,000

960 720 720 9720

8.00 8.00 8.00

7,680 5,760 5,760 77,760

43

Cat 7 units sold

Sale price @ unit

Cat 7 TOTAL

360 360 360 360 480 480 480 480 480

12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

4,320 4,320 4,320 4,320 5,760 5,760 5,760 5,760 5,760

Twelve Month Sales Forecast Part 2

480 432 432

12.00 12.00 12.00

5184

5,760 5,184 5,184 62,208

720

1440

2.75

720 720

Ice Cream Sandwich Company

Opening In

May-

2014

May-

14

Jun-

14 Jul-14

Cat 8 units sold

Sale price @ unit

Cat 8 Total

240 240 240

Aug-

14

240

Sep-

14

264

Oct-

14

264

12-month Sales Forecast

Nov-

14 Dec-14

Jan-

15

Feb-

15

264

15.00 15.00 15.00 15.00 15.00 15.00 15.00

3,600 3,600 3,600 3,600 3,960 3,960 3,960

360 360 360

Mar-

15

336

15.00 15.00 15.00 15.00

5,400 5,400 5,400 5,040

Cat 9 units sold

Sale price @ unit

Cat 9 Total

Cat 10 units sold

Sale price @ unit

Cat 10 Total

840

2.75

2,310 2,310 2,310 2,310 2,970 2,970 2,970

1200

1.75

840

2.75

1200

1.75

840

2.75

1200

1.75

840

2.75

1200

1.75

1080

2.75

816

1.75

1080

2.75

720

1.75

1080

2.75

720

1.75

1440

2.75

3,960 3,960 3,960 3,960

1.75 1.75

1440

2.75

1.75

1440

2.75

600

1.75

Monthly totals: All

Categories

2,100 2,100 2,100 2,100 1,428 1,260 1,260 1,260 1,260 1,260 1,050

Apr-15

336

2.75

600 10416

1.75

Annual

Totals

3504

15.00

5,040 52,560

1440 13800

3,960 37,950

1,050 18,228

50,483 51,383 51,383 52,348 49,328 49,160 48,080 51,314 51,314 51,314 50,483 50,483

44

Revenue (Sales)

Category 1

Category 2

Category 3

Category 4

Category 5

Category 6

Category 7

Category 8

Category 9

Category 10

Total Revenue

(Sales)

Cost of Sales

Category 1

Category 2

Category 3

Category 4

Category 5

Category 6

Category 7

Category 8

F. 12 Month Profit Loss Statement

Fiscal Year

Begins

May-13

May-

13 %

Jun-

13 % Jul-13 %

Aug-

13 %

Sep-

13 %

Oct-

13 %

Nov-

13 %

15,300 30.3 16,200 31.5 16,200 31.5 17,100 32.7 12,600 25.5 12,600 25.6 11,700 24.3

9,720 19.3 9,720 18.9 9,720 18.9 9,765 18.7 6,480 13.1 6,480 13.2 6,300 13.1

713

1,260

1.4

2.5

713

1,260

1.4

2.5

713

1,260

1.4

2.5

713

1,260

1.4

2.4

950

1,260

1.9

2.6

950

1,260

1.9

2.6

950

1,260

2.0

2.6

5,400 10.7 5,400 10.5 5,400 10.5 5,400 10.3 7,200 14.6 7,200 14.6 7,200 15.0

5,760 11.4 5,760 11.2 5,760 11.2 5,760 11.0 6,720 13.6 6,720 13.7 6,720 14.0

4,320

3,600

8.6

7.1

4,320

3,600

8.4

7.0

4,320

3,600

8.4

7.0

4,320

3,600

8.3

6.9

5,760

3,960

11.7

8.0

5,760

3,960

11.7

8.1

5,760

3,960

12.0

8.2

2,310

2,100

4.6 2,310

4.2 2,100

4.5 2,310

4.1 2,100

4.5 2,310

4.1 2,100

4.4 2,970

4.0 1,428

6.0 2,970

2.9 1,260

6.0 2,970

2.6 1,260

6.2

2.6

50,483 100.0 51,383 100.0 51,383 100.0 52,328 100.0 49,328 100.0 49,160 100.0 48,080 100.0

1,306 14.3 1,382 15.0 1,362 14.9 1,459 15.7 1,075 11.5 1,075 11.7 998 11.0

1,058 11.6 1,058 11.5 1,058 11.5 1,063 11.5

144 1.6 144 1.6 144 1.6 144 1.6

706

192

7.6

2.1

705

192

7.7

2.1

686

192

7.5

2.1

252 2.8 252 2.7 252 2.7 252 2.7 252 2.7 252 2.7 252 2.8

1,296 14.2 1,296 14.1 1,296 14.1 1,296 14.0 1,728 18.5 1,728 18.8 1,728 19.0

1,296 14.2 1,296 14.1 1,296 14.1 1,296 14.0 1,512 16.2 1,512 16.4 1,512 16.6

461

470

5.1

5.2

461

470

5.0

5.1

461

470

5.0

5.1

461

470

5.0

5.1

614

517

6.6

5.6

614

517

6.7

5.6

614

517

6.7

5.7

45

Net Profit

Category 9

Category 10

Total Cost of Sales

Gross Profit

Expenses

Payroll expenses

Salaries

Supplies

Repairs and maintenance

Advertising

Accounting and legal

Rent

Telephone

Interest

Utilities

Insurance

Food Permits and

Liscenses

Total Expenses

1,327 14.6 1,327 14.4 1,327 14.5 1,327 14.3 1,706 18.3 1,706 18.5 1,706 18.7

1,500 16.5 1,500 16.3 1,500 16.4 1,500 16.2 1,020 10.9 900 9.8 900 9.9

9,110 100.0 9,186 100.0 9,166 100.0 9,269 100.0 9,323 100.0 9,201 100.0 9,105 100.0

41,373 82.0 42,197 82.1 42,217 82.2 43,060 82.3 40,005 81.1 39,959 81.3 38,975 81.1

1,000

11,666

2.2 1,000

11,666

2.3 1,000

11,666

2.3 1,000

11,666

2.3 1,000

11,666

2.3 1,000

11,666

2.3 1,000

11,666

2.3

12,910 28.7 12,910 30.3 12,910 30.3 12,910 30.3 12,910 30.3 12,910 30.3 12,910 30.3

600

4,000

1.3 300

8.9 2,000

0.7 300

0.0 2,000

0.7 300

0.0 2,000

0.7 300

4.7 2,000

0.7 300

4.7 2,000

0.7 300

4.7 2,000

0.7

4.7

500 1.1 500 1.2 500 1.2 500 1.2 500 1.2 500 1.2 500 1.2

9,400 20.9 9,400 22.1 9,400 22.1 9,400 22.1 9,400 22.1 9,400 22.1 9,400 22.1

88

333

3,500

900

0.2

0.7

20

333

7.8 3,500

2.0 900

0.0

0.8

20

333

8.2 3,500

2.1 900

0.0

0.8

20

333

8.2 3,500

2.1 900

0.0

0.8

20

333

8.2 3,500

2.1 900

0.0

0.8

20

333

8.2 3,500

2.1 900

0.0

0.8

20

333

8.2 3,500

2.1 900

0.0

0.8

8.2

2.1

160 0.4 30 0.1 30 0.1 30 0.1 30 0.1 30 0.1 30 0.1

45,057 100.0 42,559 100.0 42,559 100.0 42,559 100.0 42,559 100.0 42,559 100.0 42,559 100.0

-3,685 -7.3 -363 -0.7 -342 -0.7 500 1.0 -2,554 -5.2 -2,600 -5.3 -3,584 -7.5

46

Dec-

13 %

Jan-

14 % Feb-14 % Mar-14 % Apr-14 % YEARLY

11,250 21.9 11,250 21.9 11,250.0 21.9 12,600.0 24.9 12,600.0 24.9 160,650

5,400 10.5 5,400 10.5 5,400.0 10.5 7,560.0 14.9 7,560.0 14.9

1,188 2.3 1,188 2.3 1,188.0 2.3 1,069.0 2.1 1,069.0 2.1

1,620 3.2 1,620 3.2 1,620.0 3.2 1,260.0 2.5 1,260.0 2.5

7,800 15.2 7,800 15.2 7,800.0 15.2 7,200.0 14.2 7,200.0 14.2

89,505

11,404

16,200

7,680

5,760

15.0

11.2

7,680

5,760

15.0

11.2

7,680.0

5,760.0

15.0

11.2

5,760.0

5,184.0

11.4

10.2

5,760.0

5,184.0

11.4

10.2

81,000

77,760

62,208

5,400 10.5 5,400 10.5 5,400.0 10.5 5,040.0

3,960 7.7 3,960 7.7 3,960.0 7.7 3,960.0

9.9 5,040.0

7.8 3,960.0

9.9

7.8

52,560

37,950

1,260 2.5 1,260 2.5 1,260.0 2.5 1,050.0 2.1 1,050.0 2.1 18,228

51,318 100.0 51,318 100.0 51,318 100.0 50,683 100.0 50,683 100.0 607,465

960

686

240

9.3

6.7

2.3

960

686

240

9.3

6.7

2.3

960

686

240

9.3

6.7

2.3

1,075

823

216

11.2

8.6

2.2

1,075

823

216

11.2

8.5

2.2

13,688

10,039

2,304

324 3.1 324 3.1

1,872 18.2 1,872 18.2

1,728 16.8 1,728 16.8

614 6.0 614 6.0

324 3.1

1,872 18.2

1,728 16.8

614 6.0

706 6.8 706 6.9

2,275 22.1 2,275 22.1

900 8.7 900 8.7

706 6.9

2,275 22.1

900 8.7

10,305 100.0 10,305 100.0 10,305 100.0

252

1,728

1,296

553

659

2.6

17.9

13.5

5.7

6.8

2,275 23.6

750 7.8

9,627 100.0

252

553

659

2.6

1,728 17.9

1,296 13.5

5.7

6.8

2,275 23.6

750 7.8

3,240

19,440

17,496

6,634

6,867

21,802

13,020

9,627 100.0 114,530

47

41,013 79.9 41,013 79.9 41,013 79.9 41,056 81.0 41,056 81.0 492,935

1,000

11,666

2.3 1,000

11,666

2.3 1,000

11,666

2.3 1,000

11,666

2.3 1,000

11,666

2.3 12,000

139,992

12,910 30.3 12,910 30.3 12,910 30.3 12,910 30.3 12,910 30.3 154,921

300

2,000

0.7 300

4.7 2,000

0.7

4.7

500 1.2 500 1.2

9,400 22.1 9,400 22.1

20 0.0 20 0.0

333

3,500

0.8 333

8.2 3,500

0.8

8.2

300

2,000

500

0.7

4.7

1.2

9,400 22.1

20

333

3,500

0.0

0.8

8.2

300

2,000

500

9,400 22.1

20

333

3,500

0.7

4.7

1.2

0.0

0.8

8.2

300

2,000

500

333

3,500

0.7

4.7

1.2

0.8

8.2

3,900

26,000

6,000

9,400 22.1 112,800

20 0.0 308

3,996

42,000

900 2.1 900 2.1 900 2.1 900 2.1 900 2.1 10,800

30 0.1 30 0.1 30 0.1 30 0.1 30 0.1 490

42,559 100.0 42,559 100.0 42,559 100.0 42,559 100.0 42,559 100.0 523,407

-1,546 -3.0 -1,546 -3.0 -1,546 -3.0 -1,503 -3.0 -1,503 -3.0 -20,274

48

49

50

51

For revenues we entered as:

May 2014- $50,483

June 2014- $51,383

July 2014- $51,383

Aug 2014- $52,328

Sep 2014- $49,328

Oct 2014- $49,160

Nov 2014- $48,080

Dec 2014- $51,318

Jan 2014- $51,318

Feb 2014- $51,318

Mar 2014- $50,683

Apr 2014- $50,683

For Cost of sales: We found the price of the ingredients and supplies for each individual product, and multiplied that by the amount we will sell that month to get the cost of sales per category.

For Salary: All of the bakers and employees will be paid on a wages basis. For the managers, we will not decide a salary for the year, but will take a portion of our earnings.

The more earnings the more the three of us managers can take home. We do not plan on receiving a large salary for the first year and recognize that the business’ success comes before our earnings. We will put aside an amount of $11,666 each month for payroll, with extra cash allowing for more hours in the future.

For Payroll: Our payroll and finance person will get paid $1000 a month for payroll services.

For Advertising: The first month will be $4000 because we will purchase our front sign then and will pay a website designer $2000 to create a web page. The rest of the months we will stick to our other forms of promotions and rely on social media and websites to cut down costs. The $2000 for the other months includes the $150 for upkeep of the website and new radio ads.

For Rent: It will $9400 just for the building, but will pay $3500 for utilities due to the high usage of lighting and machinery. Depreciation of the equipment is included in the rent.

For Phone Expense: The first month will be $87.98 because we will have to purchase the phone as well as pay for the services which are $19.99 a month.

For outside services: we will have a payroll employee/accountant who will work for

$1000 a month for payroll and $500 a month for accounting.

For Repairs and Maintenance: we will use a general budget for plumbing, electrical, oven and fridge maintenance of $300 a month. With $600 for the first month of installation of everything.

For permits/ licenses: SCDHEC: will be $160 the first month for an inspection fee, then a monthly amount of $30 for keeping up with standards and new requirements.

52

Conclusion in Profit Loss Statement: We will be operating at a loss of $-20, 274 for our first year . We will be bringing in sales of $607,465 but will have many costs including

$114,530 for cost of goods sold, and $523,407 for general operating costs for our business during the whole year.

G. Pro-Forma (Budgeted) Income Statement

Profit/Loss Statement A La Charleston

2014 2015 2016

Profit/Loss Statement

Net Sales

Total Cost of Goods Sold

Gross Profit

Gross Margin

Operating Expenses

Salary expenses

Payroll expenses

Supplies

Repairs and maintenance

Advertising

Accounting and legal

Rent

Telephone

Utilities

Insurance

Interest

Food Permits and Liscenses

Total Operating Expenses

Income from Operations

Operating Profit Margin

Interest Income

Interest Expense

Income Before Taxes

Taxes on Income*

Net Income (Loss)

Net Income (Loss) Margin

$607,465 $613,539 $622,742

114,530 116,820 118,572

$492,935 $496,719 $504,170

81% 81% 81%

$140,000 $140,000 $140,000

12,000

154,921

3,900

12,000 12,000

154,921 154,921

3,000 3,500

26,000

6,000

112,800

308

20,000

6,000

20,000

6,000

112,800 112,800

240 240

42,000

10,800

42,000

10,800

42,000

10,800

-

490

-

490

-

490

$509,219 $502,251 $502,751

$(16,284) $(5,532) $1,419

-3% -1% 0%

$- $- $-

3,996 3,996 3,996

$(12,288) $(1,536) $5,415

$- $-

$(12,288) $(1,536) $5,415

-2% 0% 1%

53

VII. 3 -Year Projections

A. Marketing/Management Development- Years 2 and 3

For A La Charleston’s second year of business, we plan on getting a better grasp on our costs and sales. With out first year concluding in a loss of $-20,274, we need to find a way to better make this amount into a profit. We plan on doing this by finding the best ways of promoting to our target market with a budgeted amount. We find that if we do receive $-20,274 in the first year of business, we should aim to increase sales by 2% in order to turn a profit. The best way to gain more sales is by bringing in new customers with new promotions. We will cut back on a website designer and learn to make and operate our website ourselves saving us money in our advertising. We will also rely heavily on a social media presence in order to save money in the marketing aspect.

With Charleston being such a tourist heavy area and our main source of business being tourists, we shall seek ways to put our business on a list on “to-try” places in

Charleston. Whether this be contacting a travel site or magazine, Food Magazines or

Food Network, or working with the chamber of commerce in Charleston, we will work on getting our name out there. We will also attend Charleston fairs and community gatherings to get the support of the community with us. By getting the community as a supporting factor in our business, their favoritism for our business could provide wordof-mouth marketing for our business.

For the marketing and promotions of A La Charleston for our third year, we will most likely have more income and money to work with for promotions. With this we can improve any signage we will still be using. We can also attend more events and provide more samples for the community or tourists, to help draw them into our business. With hopefully more net income, we can place our business in more advertisements in the newspapers, as well as newspapers in neighboring cities. A big amount of Charleston’s tourists are visiting from beach and golf resorts nearby, in our third year we will work to target drawing those people into Charleston for the day, with our business being on their schedules. By putting our names in smaller local papers for the resort islands and towns, people visiting the city for the day will be more inclined to try our business.

Regarding A La Charleston’s management development for the second year, the three co-owners Arden, Alex, and Courtney will be receiving a salary due to more profits.

Their salary’s could be put back into the business as funding for more improvements.

With the business growing, A La Charleston will be able to hire another general manager who will help lead the employees and bakers when the three owners can not be there.

This will allow the co-owners to work on paperwork during store hours, and train future managers to gain more and more responsibility when the owners have other tasks. In our second year, we will also have a better idea of when the store hours should be if different, how many employees are needed during each shift, and what products are most successful. By changing hours if necessary, or changing the amount of employees or

54 bakers, A La Charleston will be able to make better use of funds, and bring in the most profit.

For A La Charleston’s third year of business, management will further improve upon the factors discussed above. If net income and sources permit, A La Charleston can purchase the building from the owner and create a permanent being in the community.

While owning the space, the business can expand providing a back room for the managers to work in the store while doing managerial tasks. A La Charleston will also look further into hiring more general managers to take over store tasks so the owners could take over more marketing, HR, and management tasks.

B. Financial Projections- Years 2 and 3

For the second year of A La Charleston’s business, the business will work on turning their first year’s deficit of $-20,274 into a positive income. In our second year of business the store will break even. Finally, in the third year we will be capable of turning a profit, which will help pay back deficits and helps the company expand and improve.

55

Works Cited

Barringer, Bruce B. Preparing Effective Business Plans. New Jersey: Prentice Hall.

2008. Print.

“Food Safety for Industry.” South Carolina Department of Health and Environmental

Control. 2013. Web.

“Food Services and Drinking Places: NAICS 722.” Bureau of Labor Statistics. 2013.

Web.

“How to Hire Your First Employees.” The Wallstreet Journal. 2013. Web.

“How to Manage People.” WikiHow. 2013. Web

“Ice Cream and Frozen Dessert Shops.” Profile America: Industry IQ. 2006. Web.

“Introduction to NAICS.” United States Census Bureau: North American Industry

Classification System. 2013. Web.

“Keys to Running a Successful Bakery.” Chron: Small Business. 2013. Web

“Restaurant Industry Predicts Strong 2013 Growth.” Associations Now: Money &

Business. 2013. Web.

“Restaurant Stock Outlook- June 2013.” Zacks. 2013. Web.

“The 10 Essential Strengths of Front-Line Retail Employees.” Retail Experience.

2010. Web.

“What Does a Baker Do.” Craft Bakers Association. 2013. Web.

“25 Qualities and Characteristics of a Good Manager.” PHD in Management. 2013.

Web.

“35 Ways to Market Your Small Business Effectively: Part 1.” Social Media Today.

2013. Web.

The sources used to find the prices and supply of our start up materials (see page

34) are as follows:

Target.com

Foodservicedirect.com

Foodservicedirect.com webstaurantstore.com

Amazon.com cutleryandmore.com usplastic.com globalsugarart.com fab.com doughexpress.com solutions.blair.com

Target.com katom.com

Ikea.com

Lowes.com

ATTsavings.com

Loopnet.com

BestBuy.com

Officedepot.com

Staples.com

56

Nuts.com

Bigtray.com selectysafetysales.com restockit.com

Etundra.com uline.com plasticcontainercity.com thewebrestaurantstore.com cellobags.com ecoproductstore.com mydoordesign.com

57

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