The Smoothie Shop at
Thyme Café Business Plan
NTR 314: Quantity Food Production
Michelle Garvie, Bree Koetzner, and Katie Kovage
5/1/2014
Executive Summary
There is a growing trend of health-conscious eating and fitness-minded behaviors on the campus of Russell Sage College, and
the need is presently not being capitalized on by any service that is currently available to the students, faculty and staff. The
Smoothie Shop is determined to meet the needs of these urbane customers by providing made-to-order, healthful smoothies.
The Smoothie Shop will build a core group of repeat customers by bringing customizable, fresh and frozen fruit smoothies with
no added sugars or preservatives to the health-minded individual. The Smoothie Shop will provide the best drinks to satisfy our
consumers’ need for fresh, fast, and healthy options on campus with an array of delicious smoothies.
The standard smoothie offered will consist of a base, either dairy or non-dairy yogurt or milk combination and two to three fruit
additions. There will be options of add-ins available at an additional cost. All smoothies are promised to be low in added sugars,
customizable, can serve as a meal replacement, low in calories, and have “an aura of health” to them.
The Smoothie Shop will be operated in Buchman Pavilion where the soda fountain once stood in Thyme Café. This space is a
98.3 square foot bar in the central area of student gathering and eating. We have secured this location through a two-year
lease with the college with the option for it to be extended upon The Smoothie Shop being successful. With this two-year lease,
they have also provided half of our funding totaling to be $20,441.65 dollars. The remaining cost will be covered by capital
obtained through a bank commercial loan.
The company sales revenue will come from customers purchasing our smoothies. Each smoothie will cost a typical customer
about $5.00 but assuming that 30% of our customers will purchase an add-in for an additional $0.30, making the average check
$5.30. The price can be increased with the options for customers to purchase add-ins to boost the nutritional value of the
overall smoothie. We expect about 728 customers to purchase a smoothie each week, giving us weekly margin of $1,972.88.
The weekly margin has the potential to increase with future marketing and promotion tactics.
Market Analysis
1.1 Mission
The Smoothie Shop is an innovative food company that is dedicated to providing high quality, reasonably priced customizable
smoothies that are made with only natural ingredients. The partners of the Smoothie Shop view us as not only partners with
the company but partners with our customers, our employees, our community, and our environment as well. We aim to
become a go-to place for the students, faculty, and staff of Russell Sage College that allows them to find a quick and healthy
meal or snack. Our goal is moderate growth, annual profitability, and maintain cutting edge, healthy products tailored to our
customer’s wishes.
1.2 Objectives
The Smoothie Shop’s objectives for operations upon opening are:



Provide the student, faculty, and staff of Russell Sage College with a delicious smoothie at a reasonable and fair price.
Develop a smoothie menu that has the ability to cater to individual’s needs.
Use only natural ingredients to respect our clients’ dietary preferences and the environment.
1.3 Keys to Success
The keys to success will be:




An operation that will offer a welcoming and friendly environment with fast and efficient service.
An operation that offers completely customizable items based solely upon customer’s preferences and needs.
A well trained staff that is knowledgeable about food safety, food allergies, and diet preferences.
Marketing strategies that focus on building and maintaining a loyal client-customer relationship.
1.4 Competitor Analysis
Direct Competitors:
Starbucks
594 New Loudon Road Latham, NY 12110
(518) 783-4544
www.starbucks.com
Market and Segment



Customers are of all different ages; male and female
Target those who live, work, or pass through the Latham area
Customers are those who typically enjoy coffee, smoothies, tea, bakery items, and sandwiches
Product




Offers different flavors and varieties of coffee, tea, and smoothies
Offers different sandwiches, and bakery items
Smoothies come in chocolate, orange mango, and strawberry
Smoothies are made with fruit and added protein and fiber
Place




Café with a casual and relaxed atmosphere
Inside and outdoor seating with modern tables and chairs
Has a fireplace to add to the feeling of being at home
Brown, tan, and green color palette for a warm feeling
Price

Smoothies: $4.25
Promotion



Seasonal flavors
Coupons and special deals
Starbucks reward card
Summary



Strengths: Various locations with a relaxed atmosphere
Weaknesses: Can seem as expensive to some shoppers if being bought frequently
Compete with The Smoothie Shop because Starbucks is a well-known brand that offers a variety of products that
attract a wide variety of consumers. Starbucks is a convenient stop for those wishing to get their coffee, smoothie,
and food all at once. They are a main competitor because they are located about 5-10 minutes from campus with
healthy options and may be more convenient for customers.
Panera Bread
601 Troy-Schenectady Road
Latham, NY 12110
(518) 783-5980
www.panerabread.com
Market and Segment



Customers are of all different ages; male and female
Target those who live, work, attend school, or pass through the Latham area
Customers are those who enjoy bagels, sandwiches, soups, smoothies, and pastries
Product



Offers different bagels, sandwiches, coffee, smoothies, pastries, soups, salads and tea
Smoothies come in superfruit power smoothies, green smoothie, wild berry, mango and strawberry
Smoothies are typically low fat or fat free made with low fat yogurt and may have ginseng added
Place



Café like setting with a orange, tan, green, and maroon color palette creating a peaceful atmosphere
Has a fireplace to contribute to the home like feel
Area is well lit and have traditional tables and chairs, booths and comfortable chairs for relaxing
Price



Fat-free superfruit power smoothie: $4.29
Low-fat strawberry, wild berry, or mango smoothie: $4.09
Low-fat green power smoothie: $4.19
Promotion


MyPanera program: when becoming a member you get exclusive offers, coupons, and free items
Coupons and special deals
Summary



Strengths: Uses fresh ingredients and offers low fat and healthy options
Weaknesses: Prices are higher than fast food places
Compete with The Smoothie Shop because they are appealing to the more health conscious people. Panera offers a
place to eat that offers healthier options at a higher quality. All of their products are made fresh daily and have
minimally processed products. Being only about 10 minutes away and offering smoothies Panera becomes a direct
competitor. Panera offers a variety of food and drinks so it may be a deciding factor to consumers.
Mr. Smoothie
1 Crossgates Mall Road
Albany, NY 12203
(518) 218-1001
mrsmoothie.com
Market and Segment



Customers are of all ages; male and female
Target customers who enjoy smoothies
Customers are those who shop or work at Crossgates Mall
Product



Offers smoothies of various flavors including strawberry, peach, mango, banana, carrot, blueberry, peanut butter, etc.
Can combine two different flavors in one smoothie
Smoothies can be made low calorie and low fat
Place


Small smoothie kiosk in the upper level of the mall
No tables and chairs, it is very casual
Price



Small: $3.75
Medium: $4.15
Large: $4.55
Promotion

No promotions
Summary



Strengths: Uses fresh ingredients and offers a variety of flavors
Weaknesses: No seating area for customers and location is only a small kiosk
They are a direct competitor from The Smoothie Shop because they offer healthier options, for example, their
smoothies are made with fresh ingredients and no artificial additives. They also have a large variety of smoothies and
show their fresh ingredients by displaying them on the counter. Being only about 20 minutes away from campus and
having offering a more variety of smoothies, students and faculty may be more opt to go to the mall for their
smoothie.
Indirect Competitors:
Jamba Juice
Bruegger’s Bagels-Crossroads Plaza
263 Boston Post Road
Orange, Connecticut 06477
www.jambajuice.com
Market and Segment



Customers are of all ages; male and female
Target those who live, work, or go to school in the Orange area
Customers are those who enjoy fruit smoothies
Product



Offers different types of fruit smoothies: classic smoothies, whole food nutrition smoothies, all fruit smoothies, fit n’
fruitful smoothies, fruit and veggie smoothies, functional smoothies, and creamy treats
There are various flavors of each type; examples are aloha pineapple, banana berry, peach pleasure, strawberry wild,
etc.
Items are made with fruit, fruit juice, sherbet, and frozen yogurt
Place



Green, pink, and orange color palette for a fun environment
Has metal tables and chairs with seating inside and outside
Operation is full of colorful signs and menus to create an excitable area
Price




Smoothies come in three sizes: sixteen, original and power
Classic smoothies (Sixteen): $4.29
Original: $4.99
Power: $5.69
Promotion



JambaCard
$2.99 smoothie specials
Jamba Inside Rewards
Summary



Strengths: Establishment offers different types of smoothies and a wide variety of flavors
Weaknesses: The largest size is fairly expensive
They are an indirect competitor because although there are not a lot of locations near Troy, NY if customers visit a
Jamba Juice and come back to our establishment they may be seeking a more variety of flavors which could put
pressure on The Smoothie Shop to expand the menu.
Freshens
Airport, Terminal E, Gates E6
3200 East Airfield Drive
DFW Airport, TX 75261
www.freshens.com
Market and Segment


Customers are of all ages; male and female
Targets those who use the DFW airport
Product



Fruit Smoothies: Caribbean Craze, Strawberry Kiwi, Citrus Mango, Tropical Pineapple, Strawberry Squeeze, and
others.
Offers low calories, high protein, and energy smoothies
Offers options to add boosters such as protein, mega energy, xtreme lean, focus, and green tea to smoothies
Place


Purple, orange, and green color scheme to attract customers
No seating, small stop and go store in airport
Price



Regular smoothie: $3.89
Large smoothie: $4.89
Additional boosters: $0.59 each
Promotion

No current promotion
Summary



Strengths: Freshens make their smoothies fresh and customers can add different boosters to fit their needs.
Weaknesses: Adding a variety of boosters can increase the smoothie price tremendously
They are an indirect competitor because they do not have many locations near the Sage campus however if any
future customers are traveling and pass through the DFW airport and receive a free booster with their smoothie, it
may put pressure on The Smoothie Shop to do the same.
1.5 Customer Feedback Analysis

Objective: The purpose of soliciting feedback on the healthy eating options on campus is to discover customer
satisfaction and expectations, evaluate the consumer perceptions of the Sage Dining Services’ shortcomings, and
determine if the customers would like to see an all-natural, made-to-order fruit smoothie bar implemented on
campus. Our goal is to provide the customers of the Sage community with healthful eating options driven by
customer choice, to increase the customers’ overall satisfaction in the healthy eating options available at Sage, and to
market ourselves as a purveyor of customer-centric healthy eating, increasing the desirability of the Sage Dining
Services to current and future students, faculty and staff.

Target Market Segment: The target market segment of this survey is students, faculty and staff currently using the
McKinstry Dining Services, Thyme Café, or Lucille’s, and students, faculty and staff who have used the dining services
in the past, but may not do so currently. The students will most likely be undergraduate students living on campus
with a meal plan, and undergraduate and graduate students living on or off campus without a meal plan. The faculty
and staff may or may not have any type of meal plan.

Methods of Feedback: Feedback will be solicited through a survey and through comment cards placed at each station
of the dining hall (e.g. pizza station, salad bar, etc.). The survey method will allow us to gather demographic,
preference and satisfaction information, and discover what the Sage community’s perceptions of the healthfulness of
the dining options are, and what it wishes to see in the dining services. The comment cards will allow us to see how
the existing services meet or fall short of customers’ expectations of healthy eating, and what they would prefer to
see instead. These comments will be coded for expectations, preferences and perceptions, and compared to the
survey questionnaires to determine true expectations of Sage diners, and what – if any – difference in preferences
they exhibit in the abstract (survey form) and in the practical (comment cards while choosing food).

Feedback Solicitation Plan: Feedback will be solicited through a questionnaire survey given out at McKinstry Dining
Hall, Thyme Café and Lucille’s Café at various dining hours, once during breakfast (starting 9:00 AM) once at
lunchtime (starting 12:00 noon) and once at dinner (starting 6:30 PM) for one week. This will enable us to determine
what segments of the Sage population use which dining option (meal swipes or a-la-carte), and when, and their
overall satisfaction with the healthy food choices offered by campus dining. Optimally, each survey time would give us
fifteen responses for a total of 45 from each dining location per day, for a grand total of 135 each day. This is a very
optimistic number, and it is possible that we would only get ten responses at each time, for a total of 90 from all
eateries throughout the day. While not optimal, 90 per day (or 630 per week) would be an acceptable number to
work with.

Expected Results: We expect that the overall level of satisfaction in the healthy eating options of the Sage dining
services will be rather low, and that the customers will list fresh, wholesome and natural ingredients as desirable and
ideal. We expect that they will express that the current food choices offered on campus do not meet their needs for
healthy options, and that they would need to see more options for fruit and healthy treats in order to become more
satisfied diners. We expect that the diners would like to see more control over their food options, especially with
regards to the healthy food choice options, and that they would like the Sage dining services to provide them with a
way to meet their needs for healthy eating in a personal way. We expect that the Sage community does not feel that
they have any control over their healthy food options, and that this leads to less satisfaction.
We expect that a made-to-order smoothie bar would meet the needs of the Sage community for a healthy dining
option. We expect that the Sage community would have to see a variety of fruit and add-in options for smoothies in
order for them to feel as though their personal health food preferences would be met. We expect that the Sage
dining community would have to see protein, energy and “superfood” supplements as add-ins in order to feel as
though their need for customization had been met. We also expect that the Sage community would express that
there would need to be comparable options for those with dietary restrictions, in order for the smoothie bar to meet
the needs and expectations of truly healthy and customizable eating options on campus.
Example of Feed Back Questionnaire:
Healthy Dining at Sage: Questionnaire
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
What is your idea of healthy dining offerings on campus?
What is your level of satisfaction with the healthy food choice options dining services offers on campus?
What would you have to see in the healthy food choice options to be a more satisfied diner?
How well do the healthy food choice options offered by the Sage dining services meet your expectations?
What healthy food choice options, specifically, do you expect to be offered from Sage dining services?
How adequately do you feel that the Sage dining services meet your healthy food choice needs, and why?
How customizable do you feel the Sage dining options are?
How well do you feel that your individual or personal preferences are met by the healthy eating options offered by
Sage dining?
If Sage dining services offered a made-to-order smoothie bar, would you feel as though your needs for healthy eating
choices on campus had been met?
What options would the made-to-order smoothie bar have to have for your healthy food choice needs to be met?
What “add-ins”, if any, would you like to see offered by this made-to-order smoothie bar?
If there was a made-to-order smoothie bar on campus, what elements would it have to have for you to frequent it?
What sort of rewards/loyalty system would you like to see the made-to-order smoothie bar have?
Tell us a little about yourself!
-Age, faculty/staff/graduate/undergraduate, full-time, part-time, commuter, living on/off campus, preferred place to
eat on campus…
Example of Comment Card:
Company Summary
The Smoothie Shop, which will be located in Thyme Café in Buchman Pavilion, will sell customizable smoothies in its 98.3
square foot counter bar style operation on the campus of Russell Sage College. The Smoothie Shop will be open from 8:00 a.m.
to 5:00 p.m. Monday through Friday. These hours of operations would be well-suited for the high traffic periods of the week,
capturing a large portion of the market.
The operation will consist of two Vita-Mix Blending Station Advance smoothie blenders that will be programmable for ease of
use, additional blender pitchers to accommodate high volume of traffic if needed, and a Vita-Mix Rinse-O-Matic sink setup for
easy and efficient washing and sanitizing of the blender pitchers. There will be a refrigerator for the dairy and non-dairy milks
and yogurts, a chest freezer for frozen fruit, and a measured dispensing system for add-in powders.
2.1 Procurement Plan
When first opening operations, The Smoothie Shop would have acquire sweeteners, dairy and non-dairy milks and yogurts,
juice, and fruit to be on hand as staples. All items would be purchased through Sysco via a contract. The add-ins, being the
specialty items that they are, will be purchased from two reputable vendors, without a contract. These vendors are Bulk
Supplements and The Vitamin Shoppe. From Bulk Supplements we would obtain the whey powder, spirulina and caffeine while
the hemp, vegetable protein powders, green tea power, cocoa powder, and the wheatgrass powder will be purchased from the
Vitamin Shoppe. These items will be purchased in large quantities instead of contract due to the fact that the serving size is
relatively small and buying the add-ins on contract is not necessary. In addition, not having a contract for our add-ins will allow
us to change which add-ins the business has on hand based on the changing preferences and desires of the customers. This will
allow the business to grow and change along with the health desires of future customers.
2.1 Proposed Starting Inventory
The Smoothie Shop will have a starting inventory comprised of the items found in Appendix 1. The proposed starting inventory
cost is $893.93 which is the cost of the fresh and frozen fruit, the dairy and non-dairy yogurt and milks, the sweeteners and the
add-ins.
2.2 Proposed Starting Investment
The estimated starting investment needed for this business venture is comprised of the three following pieces; the renovations,
the equipment, and the initial marketing strategies. While marketing will be a yearly component of the business, the startup
marketing is separate.
Equipment: $4,621.53
Item
Vitamix Blending
Station Advance
Vitamix Blender
Pitcher
Vitamix Rinse-o-Matic
Casio SE-S700 Cash
Register
Unitech MS240 Credit
Card Reader
Avantco HF14 14 cu. ft.
chest freezer
Avantco Hanging
Basket
Danby Compact
Refrigerator
Avantco CFD-1RR
Number
2
Cost Per Item
$495.00
$
Total Expense
990.00
2
$80.00
$
160.00
1
$159.39
$
159.39
1
$59.99
$
59.99
1
$60.49
$
60.49
1
$433.99
$
433.99
5
$21.99
$
109.95
1
$434.75
$
434.75
1
$1,279.00
$
1,279.00
Standing Fridge
Regency 16-guage
stainless steel drop-in
sink
Advance Tabco DI-115-15 drop-in
handwashing sink
Marketing: $1,261.77
2
$354.99
$
709.98
1
$223.99
$
223.99
Marketing Tactic
Cost
Samples
$101.08
Loyalty Cards
$138.00
Coupons
$90.00 per month
Renovations: $35,000 (See Below)
The space that The Smoothie Shop will be set up in is in the back space in Thyme Café, where the soda fountain, water,
condiments and iced tea are set up. On this counter there are also trays and utensils which will have to be moved as well. The
trays, utensils and condiments will be moved to a small rack over closer to the sandwich station, for easy access for the
students interested in the deli items. The soda fountain and the iced tea will be moved around the corner, onto the coffee
counter, across from the pastry counter. There is enough room for the soda fountain and tea over next to the coffees, with the
sweeteners and other utensils moved to a rack on the wall. This is a good location for these drinks as the Thyme Café
employees will be better able to keep an eye on the beverages and cut down on the possibility of theft. The waters with fruit
will be moved to the counter space in between the coffee brewing machine and the soup warmer.
The renovations themselves will involve reversing the direction that the doors open to allow for a second counter to be
installed. This is the counter where customers will order their smoothies, and where the cash register will be. In addition, the
current counter will be resized to allow for more room for the employees to work. A large storage fridge would be placed in the
left corner of the space, where the back-stock of yogurts, milks and fruit juices would be. A second fridge will be installed below
the back counter where the yogurts and milks currently being used for smoothie preparation will be kept. This will reduce the
opening and shutting of the large fridge, saving energy, and allow for the ingredients to be more accessible during the rush
times. There will be cabinets below the counters for dry storage. The blenders will be set up between the fruit sink, at the left
end of the counter, to the right of the storage fridge, and to the left of the dish washing sink, set in the right-hand corner of the
back counter. A large chest freezer would be placed along the wall with the doors, and the frozen fruit will be stored in here. In
addition to these physical changes, water will need to be piped for three sinks – the hand-washing sink, the dish sink and the
fruit washing sink – and electric will have to be run for the refrigeration/freezer units. Wall mount lights will be added to give
the space a gentler feel than the current overhead lighting. The color scheme will be warm red/orange tones to create a
welcoming atmosphere. (See Appendix 2)
2.3 Marketing Tactics

1st week free samples: During the first week of operations after the grand opening of The Smoothie Shop, we will
offer free samples of three types of smoothies; Berry Peach, Strawberry Fields, and Peachy Mango. Each customer
will be offered one free sample per visit each day. The sample size will be a 1 oz. cup. Samples will only be offered the
first week to try and recruit customers to come in and taste our smoothies.

Loyalty card: We will sell loyalty cards that will target our frequent customers. The loyalty card will be available for
purchase for $30.00 dollars each. The benefit of having this loyalty card is that once a month, upon the presentation
of the card the customer will receive a free “featured” smoothie, totaling up to be 11 smoothies as year (operation is
closed during December). The featured smoothie will be decided on by operation managers at the beginning of each
month.

Coupons: Through the first week of each month, The Smoothie Shop will give one coupon to each customer with
every purchase. The coupons must be used within the month that it was distributed. Only one coupon per person is
allotted. The coupons may vary each month. Examples of the coupons include and are not limited to, a free add in,
25% off total purchase, $2.00 dollars off your favorite smoothie, and so forth.
Financial Information
3.1 Marketing Cost
Samples: $133.77
Loyalty Cards: $138
Coupons: $90 per month



Samples: About 168 sample per day: $101.08 for the week, plus $32.69 for sample cups. Free samples will convince
about 50 people to purchase smoothies who otherwise would not. This will generate an additional $135.50.
Loyalty Card: We would print about 500 loyalty cards, which would cost about $138. If we sell 200 at $30 each that
would generate $6,000. We predict that the 200 people that bought the cards on average get 9 of their free
smoothies during the year that would cost us $4,662.00, with a profit of $1,338.00. If 100 of the people who bought
the loyalty cards purchase one additional smoothie each month in addition to their free one, that will generate
additional revenue of $271.00 each month.
Coupons: We will print about 500 coupons, which would cost about $90 a month. It will cost $990 to print coupons
for the 11 months we are open. For the first month if we give away coupons that give 25% off our customers’
purchase, they will be able to purchase a smoothie for $3.19. Assuming that the incentive of coupons would entice
approximately 250 customers to purchase smoothies who otherwise would not have, we would make $150.00 in
profit from the smoothies purchased with the coupons, and $677.50 in profit from the smoothies purchased to obtain
the coupons. This is a total of $827.50 of additional profit each month, totaling $9,102.50 for the year. Accounting for
the cost of printing the coupons, the additional profit from the coupon promotion will be $8,112.50.
3.2 Menu Cost and Planning
The menu will consist of a standard set of smoothies, as follows:













Triple Berry (blueberries, raspberries and strawberries)
Peachy Mango (peaches and mango)
Mango Pineapple (mango and pineapple)
Jamaican (banana and pineapple)
Berry Peach (peaches, raspberries and banana)
Apple Country (sweet apple, peaches and pears)
Strawberry Fields (peaches and strawberries)
Berry Cherry (cherries, strawberries and blackberries)
Matcha Melon (honeydew melon, sweet apple and matcha green tea powder)
Kiwi Strawberry (kiwi, strawberries and banana)
Tropical Delight (mango, pineapple and papaya)
Chocolate Covered Cherries (bananas, cherries and cocoa powder)
Slushies (replace the yogurt and milk with fruit juice, and some of the frozen fruit with crushed ice for a refreshing
summer option)
The cost of the yogurt or milk base product for a smoothie is $0.98 while the cost of one serving of fruit ranges from $0.20$1.09 making the average $0.64. This means that the average smoothie has a cost of $2.33, as a smoothie is comprised of two
servings of fruit. The smoothies on the standard menu consist of the more expensive fruit but are paired with less expensive
fruits such as bananas to keep food costs low.
The full costing of the menu can be seen in Appendix 3.
3.2 Break Even Analysis






Fixed Costs:
Renovation: $17,500 (Total: $35,000, half paid by school)
Marketing: $1229.08
Equipment: $2,310.77 (Total: $4,621.53, half paid by school)
Labor: $41,863.68
Total: $62,903.53
Break Even =
(Fixed Costs)
1 − variable cost %
Break Even =
$62, 903.53
. 51
Break Even =
$123, 340.25
= 23, 271.75
$5.30
2x15 (weeks per semester) + 2 weeks for summers session = 32 business weeks
Break Even = $ 123, 340.25
$23,271.75
= 728 smoothies needed to be sold each week
32 business weeks
728 smoothies needed to be sold
= 146 smoothies needed to be sold per day
5

In order to break even, over the course of the year, the business would need to sell 23,272 smoothies. To reach this
goal, 727 smoothies would need to be purchased each week for a total of 32 weeks. When broken down per day, 146
smoothies would need to be sold each day.

In order to see if this can be achieved, looking at the enrollment on the campus of Russell Sage is key. By the current
enrollment rate, there are plenty of potential customers to allow the business to break even during the first year.
- Undergraduates- 700
- Graduates- 150
- Faculty- 71
- Other employees- 120
- Total: 1040
3.3 Right Pricing
Our price for a typical smoothie is $5.30.
The average cost to make one of our smoothies is $2.59 making the average margin on one of our smoothies $2.71.
In and around the Troy area, there are numerous competitors that are also selling fruit smoothies. They offer different sizes,
some of which are smaller and some that are larger and thus more expensive. All of our competitors whom we examined make
their smoothies with a combination of yogurt, fruit juice, milk, and real fruit. Our smoothies are 20 oz. Our competitors, who
also sell a 20 oz. smoothie or similar size, sell their smoothies for about $3.89-$4.99. Our price therefore is typical and
reasonable.
The market for fruit smoothies is large. Fruit smoothies are a healthier and tasty option for consumers. It attracts many people
because of its nutrition and various flavors. People are becoming more health conscious and want to enjoy a product that is
delicious and healthy.
3.4 Measureable Results




Transactions per Labor Hour (Weekly Transactions/Weekly Hours Scheduled): 6.28
Sales per Labor Hour (Weekly Revenue/ Weekly Hours Scheduled): $33.26
Labor as a Percentage of Sales (Weekly Hourly Labor with T&B/Weekly Revenue): 34%
Food Cost as a percentage of sales: 49%
These are the KRIs that we will track weekly to ensure that the margin is in line with our annual budget. By tracking these KRIs
weekly, we will be able to make changes quickly and efficiently to respond to the changing market.
The annual budget is based on weekly transactions of 728 smoothies being bought at an average of $5.30 totaling weekly
revenue of $3,358.40. With the food cost percentage of 49%, the food cost budget is $1,890.62 and a general expense
percentage of 12%, the general expense budget is $463.01. This brings the total weekly cost to $2,353.62. The available weekly
budget is then $1,504.78. The total weekly hourly labor cost is $1,308.24. The weekly margin is therefore a profit of $196.54.
Annually this is a profit of $6,289.28. (See appendix 4)
Operations
4.1 Scheduling and Staffing
Employee
Full Time
or Part
Time
Supervisor
Full Time
Smoothie Tech 1
Part Time
Smoothie Tech 2
Part Time
Smoothie Tech 3
Part Time
Smoothie Tech 4
Part Time
Smoothie Tech 5
Part Time
Monday
7:00 a.m.3:30 p.m.
9:00 a.m.5:30 p.m.
11:00 a.m.3:00 p.m.
OFF
2:00 p.m.5:30 p.m.
OFF
Tuesday
OFF
9:00 a.m.5:30 p.m.
12:00 p.m.5:30 p.m.
7:00 a.m.12:00 p.m.
11:00 a.m.3:00 p.m.
OFF
Wednesday
7:00 a.m.-3:30
p.m.
OFF
8:00 a.m.-12:00
p.m.
12:00 p.m.-5:30
p.m.
OFF
12:00 p.m.-5:30
p.m.
Thursday
7:00 a.m.3:30 p.m.
9:00 a.m.5:30 p.m.
OFF
OFF
1:00 p.m.5:30 p.m.
11:00 a.m.4:00 p.m.
Friday
Total
Hours Per
Week
7:00 a.m.3:30 p.m.
OFF
32
11:30 a.m.5:30 p.m.
7:00 a.m.12:00 p.m.
12:00 p.m.5:30 p.m.
OFF
19.5
24
15.5
17.5
7.5
4.2 Job Descriptions

Smoothie Tech – the duties of a Smoothie Tech involve: taking smoothie orders and ringing customer orders up on a
cash register; preparing made-to-order smoothies; washing, sanitizing and maintaining smoothie equipment; serving
smoothies to the patrons, and general customer service; setting up the smoothie bar and breaking down/cleaning the
smoothie bar. Smoothie Techs should be able to understand the importance of food safety protocol as it pertains to
food allergies, and should be able to become familiar with the menu and be able to answer customer questions. Fully
loaded hourly wage is $10.98 for all smoothie techs.

Full Time Supervisor- the duties of a Full Time supervisor include taking smoothie orders and ringing customer orders
up on a cash register; preparing made-to-order smoothies; washing, sanitizing and maintaining smoothie equipment;
serving smoothies to the patrons, and general customer service; setting up the smoothie bar and breaking
down/cleaning the smoothie bar. Supervisors should be able to understand the importance of food safety protocol as
it pertains to food allergies, and should be able to become familiar with the menu and be able to answer customer
questions. Supervisors should be able to manage a team and make sure all protocol and rules are being followed.
They also should demonstrate proper employee techniques as they are a leader during work hours. They should be
able to delegate task, monitor the team’s performance, help with training and development, complete paperwork,
handle complaints and reporting to senior management. Fully loaded hourly wage is $12.06 for the full time
supervisor.
4.3 HAACP Plan

The following HAACP inspection (4.3a) will be carried out by the Supervisor twice a month to ensure that the facility is
up to par in various categories. Corrective action will be reported in the following table (4.3b) after results are
examined and all problems must be fixed within seven days of inspection.
4.3a table:
HACCP Assessment Inspection Form
Date:
Time:
Inspector:
Location:
Points Available
Personal Hygiene:

Are gloves worn by employees?
1

Are employees wearing jewelry?
1

Are employee’s uniforms clean and worn
correctly? (Including proper shoes?)
1

Are employees hair restrained by a kitchen hat
or a hairnet?
1

Do employees look to be in good health?
1

Do employees wash hands?
1

Do employees know when to wash their
hands?
Are there wash stations near work areas?
1
Are wash stations stocked properly with paper
towels and soap?
1


1
Facility:

Is the facility well lit?
1

Is the facility ventilated properly?
1

Does the facility appear to be clean to the eye?
2

Are surfaces clean (walls and floors)?
1

Are all items stocked for the customers?
(Napkins, straws, etc.)
1
Dry Storage:

2

Are items stored at the correct temperature?
(50 °-70° F)
Are all items stored off the floor?

Is foo stored away from chemicals?
3

Is there a method of organization in place?
3
2
Points Received
Improvements Needed
(FIFO: first in, first out)

Are all foods labeled?
3
Refrigeration & Freezers:

Are thermometers readily available and visible?


Are temperatures appropriate?
Refrigeration: 0°-5° C
Freezers: -18° or colder
Are temperature logs kept for both places?

Are units clean?
1

Is there are method of organization within the
units?
Are all foods wrapped and labeled?
3

2
3
2
2
Cross Contamination:





Are separate utensils used for each smoothie
being made? (Ex. different scoops for add ins,
different utensil for peanut butter, or milk)
Are the fruits washed properly before use?
2
Are there separate cutting boards for different
fruits?
Are employees knowledgeable of food
allergies?
Do employees change their gloves regularly
when preparing different smoothies?
2
2
3
3
Time & Temperature Controls:

Are temperatures checked every 4 hours?
2
Cleaning and Sanitation:

Is the dishwashing station clean?
1

Are there buckets filled with corresponding
sanitations or soap for cleaning in the kitchen?
Are wiping cloths stored in solutions while in
use?
Are the solutions mixed correctly and tested
for chemical concentrations?
Is there a compartment sink for cleaning?
1
Is the sink properly set up (rinse, wash,
sanitizing)?
If there is water in the sink, is it clean?
2





1
2
2
2
Utensil & Equipment Washing:

Are work surfaces clean to the eye?
1

2

Are work surfaces cleaned and sanitized after
each use?
Are drawers/shelves/racks/storing units clean?

Are utensils and small equipment air-dried?
2

Are the utensils and equipment handled and
put away properly?
Is equipment washed after each use?
2
Is there a cleaning checklist to do daily or log
that is kept?
2


1
3
Purchasing/Receiving:


Does an employee check all items for dents or
damage before putting them away?
Do foods go straight to refrigeration after being
brought off the truck?
2
3


3
Do employees check truck refrigeration
temperatures?
Are foods separated appropriately on trucks?
2
Pest Prevention:

Is there evidence of pests present?
3

Is there a regular schedule of pest control by a
pest control operator?
Are all windows, doors, and screens in good
condition?
2

*A grade of 83/97 which is 85% is needed in
order to receive a passing grade.
3
Total Points Available:
Points earned:
Pass/ Fail Result:
97
Inspector Signature:
Manager Signature:
4.3b table:
Critical
Control Point
Hazard/
Observed
Challenged
Corrective Action
Monitoring
What
Who
How
Frequency
Verification of
Completion
4.4 Product Flow Chart
The Smoothie Shop
HAACP Production Flow Chart
Frozen Fruit,
Ice
Dairy (Milk,
Yogurt)
Fresh Fruit,
Dry Goods (sugar, honey,
add-ins) and 100% juice cans
)
Receiving
Freezer Storage
Cooler Storage
Dry Storage
Preparation
Taken out of freezer when needed:
- 2 cups of fruit for simple smoothie
- 1 cup of fruit for slushie recipe
Taking out of dry storage when needed:
- Sugar/honey is available as optional to customer
-Add-ins are on request
Ice needed in slushie recipe (1 cup)
Taken out of cooler storage when needed:
-1/2 cup yogurt needed for simple smoothie
-1 cup milk needed for simple smoothie
-1 cup 100% fruit juice needed for slushie recipe
-2 cups fruit needed for simple smoothie
-1 cup fruit needed for slushie recipe
Creation of smoothie
Given to customer
Potential Hazards
Critical Limits
Monitoring Processes
Corrective Action
Cross Contamination
Employees not changing
gloves, using dirty
equipment, not sanitizing
correctly, using wrong
scoops
The supervisor on duty
would do visual checks
every day to ensure that
procedures were being
followed
Staff Retraining
Misuse of TCS foods
Fridge/freezer
temperatures
The supervisor on duty
would check the fridge
and freezer logs to make
sure that temperatures
were being recorded
accurately
Staff Retraining
4.5 Recommended Future Actions
Comment cards and other customer feedback would influence how our business changes and what actions are taken. If the
business is a success and the sales of our smoothies are high, we could make additions to our shop. We could expand the
selection of our smoothies to include other flavors that our competitors may have but we don’t. This could help satisfy our
customers by providing more flavors that they would like to see in the operation. If the demand is high for our product, we
could also possibly increase the prices of our smoothies. Increasing the prices of our smoothies would generate more revenue
and allow us to make further improvements and changes to our business. We could also purchase additional equipment if
needed to provide for the increased demand. Additional revenue would also enable us to do more marketing and promotions
to hopefully increase business further.
If business wasn’t as successful as we would have wanted, we could also make some changes. We could change items that are
already on the menu or replace those with different flavors that the customer base may like better. We would find out this
information from customer comment cards. To draw in more customers we could lower the prices of our smoothies to entice
customers. In addition, we could spend more time and money on marketing and promotions. We could make more flyers and
advertise our business more. We could have special offers and additional coupons.