Sweet Tooth Ice Cream Shop
BUSINESS PLAN
Krista Young, Twila Gaines, & Karen Kilby
Limited Liability Company
Sweet Tooth Ice Cream Shop
800 Main Street
Arkadelphia AR 71923
Phone: 870-246-7842
sweettoothicecream@gmail.com
Date Prepared
April 11, 2013
Table of Contents
Executive Summary ..................................................................................................... 4-5
Financing Proposal.......................................................................................................... 5
Company Description ................................................................................................... 5-6
Industry Analysis .......................................................................................................... 6-8
Products & Service .................................................................................................... 8-9
Purpose of Product/Service .......................................................................................... 9
Market Analysis .......................................................................................................... 9-15
Customer Profile ...................................................................................................... 9-10
Growth Potential.......................................................................................................... 10
Industry Trends ...................................................................................................... 10-12
Other Characteristics .................................................................................................. 12
Competition ............................................................................................................ 13-14
Location ................................................................................................................. 14-15
Marketing Strategy ................................................................................................... 15-19
Customer Demand ................................................................................................. 17-18
Pricing Structure.......................................................................................................... 18
Price List ................................................................................................................ 18-19
Brand Identity .............................................................................................................. 19
Customer Service........................................................................................................ 19
Management & Organization .................................................................................... 19-21
Management Team ................................................................................................ 19-20
Organization ........................................................................................................... 20-21
Operational Plan ...................................................................................................... 21-23
Personnel .................................................................................................................... 21
Equipment, Technology, & Inventory .......................................................................... 22
Legal ........................................................................................................................... 22
Exit Strategy ........................................................................................................... 22-23
Financial Plan & Projection ...................................................................................... 23-25
Start-up expenses & capital ............................................................................................
Sales Projections ............................................................................................................
Financial History..............................................................................................................
Sources of Financing ......................................................................................................
Profit & Loss Projections (Income Statement) .................................................................
Cash Flow Projections ....................................................................................................
Balance Sheet Projections ..............................................................................................
Sample Menu……………………………………………………………………………………………26
References ............................................................................................................. ….27-28
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Executive Summary
Sweet Tooth Ice Cream Shop has two main items for sale which are ice cream and
frozen custard. Other menu items will be added as business increases, to include
shakes and blenders. The sweet treats will be enjoyed in the pleasant atmosphere
provided. Sweet Tooth will also sell ice cream cakes and take-home containers of ice
cream.
Revenue will come from ice cream and frozen custard and the other products
offered at our shop. The store will be located at 800 Main Street in Arkadelphia. The
primary customer’s will be students of Henderson State University, Ouachita Baptist
University, and students and parents of Arkadelphia Public School District. Anyone who
enjoys eating a snack outside the home will be a targeted customer. The store owners
anticipate that over the long run many customers will make the shop their primary
destination due to name recognition, product quality and excellent customer service.
Projected costs are $150,000 which includes $30,000 investment from the owners
and financing $120,000 through a local financial firm with the assistance of the Small
Business Administration.
The products will be fresh and served immediately upon the customer’s order
request. Ice cream and frozen custard does not have a long shelf life, so the inventory
will be turned over on a weekly basis, if not sooner. Products will be displayed in glass
enclosed cases in the front of the store. Take-home products will be offered in the lobby
of the store in a glass front refrigerator. Sweet Tooth will implement a strong advertising
and promotion strategy. Social media, newspapers, local radio, and fliers will be a main
source of advertising. These are reasonably cheap sources of advertising and well
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within our advertising budget and the best source of advertising to meet our needs, to
enhance our business’ success.
Financing Proposal
Start-up costs are expected to be around $150,000. With the investment of the
owners of $10,000 each, $120,000 will need to be financed to get the business
operational. Funds will be utilized for start-up costs such as lease deposit, equipment
purchases, and utility deposits. The loan amount includes funds for cash on hand for the
early months of the business. Refrigerators and ice cream housing will be the most
expensive start-up costs. Initial start-up costs for all the equipment necessary is
$86,105 (Business Plans Volume 3, 2013). Collateral to be put up for the loan will
include the personal assets of the owners. Homes and cars will be the largest
contribution to collateral. The business is expected to grow per quarter and include any
future collateral available. The loan is expected to be paid within five years with an
interest rate of 6%.
Company Description
This prospective company was the idea of three women who wanted to bring a
sweet addition to Arkadelphia. The market exists for the product and is ripe with
consumers. The mission statement is to deliver a quality product in a consistent,
courteous, and timely manner in order to have the customer return again for another
satisfying, flavorsome treat, while at the same time earning a reasonable return to the
initial investment.
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In order to earn a reasonable return on the investment, along with the ability to
repay debt, strict cost-control measures will be implemented. These measures will
include, among others, proper and prudent purchasing practices, maximization of
product distribution through strict adherence to weights, amounts and recipes (portion
control), effective utilization of personnel, and the constant search for ways to reduce
the cost of sales of our products without sacrificing quality and service. The company
employees strive for excellence in the products we serve and the customer service we
offer. The staff is committed to provide a personal touch of value to the business.
Sweet Tooth offers a product line of hard ice cream and frozen custard. Ice Cream
flavors such as: chocolate, strawberry, pineapple, cookies & cream, coffee, classic
vanilla, etc. will be purchased in tubs, per gallon, from a vendor. The frozen custard
base will be purchased plain and mixed with a flavor specific to the customer’s order.
The customer base consists of students attending Henderson State University,
Ouachita Baptist University, and Arkadelphia Public School District. The location of the
business is within miles of these three learning centers. Close to the bypass and a
major intersection, the flow of traffic will keep the business running steady.
Industry Analysis
From its beginning in the 1940’s, the ice cream industry has been a sweet way for
entrepreneurs to pursue their business goals. During World War II, ice cream was the
edible moral symbol (Strauss, 2010). When the war ended, and dairy product rationing
was lifted, America celebrated its victory with ice cream (Strauss, 2010). In 1984,
President Ronald Reagan designated the month of July as National Ice Cream Month
and the 3rd Sunday of the month as National Ice Cream Day (Ice Cream).
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Ice cream is a nutritious and wholesome food, enjoyed by over 90 percent of the
people living in the United States (Strauss, 2010). The industry has contributed
substantially to the economic well-being of the Nation’s dairy industry. United States
dairy farmers produce 10 percent of all the milk used to produce ice cream (Strauss,
2010).
Ice cream production has increased because of technological innovations,
including steam power, mechanical refrigeration, the homogenizer, electric power and
motors, packing machines, and new freezing processes and equipment. Over time, the
industry has become more developed. There are now ice cream trucks and store
locations in shopping malls and strip centers. The motorized delivery vehicles changed
the industry dramatically.
Ice cream parlors are a part of the specialty eatery industry. The US specialty
eatery industry includes more than 50,000 establishments with combined revenue of
about 25 billion dollars (First Research, 2013). An ice cream shop includes limited
service establishments that focus on particular beverages and snacks and they also
include national and regional chains, franchises, and independent operators as well as
coffee shops and donut shops (First Research Industry Profile, 2013). An ice cream
parlor would be considered a small company within the specialty eatery industry, small
companies can compete effectively by offering high-quality menu items and providing
superior customer service. Ice cream parlors make up 15 percent of total revenue for
the industry (First Research, 2013). River Ridge Ice Cream and Desserts, a competing
ice cream specialtly shop, will be a threat to the Sweet Tooth operation.
The International Ice Cream Association (IICA) is the trade association for
manufacturers and distributors of ice cream and other frozen dessert products. Its 80
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member companies manufacture and distribute an estimated 85 percent of the ice
cream and frozen dessert products consumed in the United States (Ice Cream). The
top 3 flavors of ice cream are vanilla (27.8 percent), chocolate (14.3 percent), and
strawberry (3.3 percent) (Claudia). Flavor and sales ratios can be determined for each
flavor, determining the successful taste. The industry has been turned from a once
basic flavor to a mixture of flavors and ideas.
One entry barrier is the lack of appropriate property for rent. The only available
listings are too large for current needs but we will start with what is available. Although
the buidling is large, it is in a prime area and withing walking distance of several
neighboorhoods.
Products & Services
Product/Service
Customers will be able to choose from two different types of ice cream products, ice
cream or frozen custard. The difference between ice cream and frozen custard is the
amount of egg yolk used in the preparation process. The batter mixture must contain
more than 1.4% egg yolks, to be called frozen custard (National Ice Cream Retailers
Association). A plethora of flavors will be available to mix into the base of the
customer’s choice. This allows for extreme customization and gives our company a
competitive edge.
Customers will enjoy the dine-in experience that Sweet Tooth has to offer. After
ordering a custom frozen desert, friends and family can chat in the comfortable
atmosphere provided by Sweet Tooth. Customers will be able to choose from a wide
selection of flavors as well as toppings. A downfall to the industry is fluctuating vendor
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prices. Although the price per gallon of ice cream changes in small increments, prices
are slowly rising. Along with the price of the ice cream, topping cost is also to be taken
into consideration. If the price of candy per pound increases, Sweet Tooth may have to
pass on increases to the customer. We will offer samples of our products for customers
to try so they can see if they like the flavor before ordering.
*See sample menu attached.
Purpose of Product/Service
Customers look for value in a product. Sweet Tooth will provide a personal touch to
enhance a wonderful experience. Rather than just waiting in line, employees will make
the entire visit a show of visual stimulation and pleasant conversation, not just routine
service. Employees will engage with the customers, drawing them in to the sweet
experience. The customers will enjoy participating in the production of his or her desired
final product. Since customers are curious, talking through the process will enlighten
them and will create a bond of customer loyalty.
The lack of a specialty ice cream shop in Arkadelphia creates a need. The abscense of
such a business led us to believe such a venture would be profitable. Already a luxury
item, customers will be treated with express services expected out of a luxury
experience.
Market Analysis
Customer Profile
Our customers are not limited to a particular age group. Anyone who enjoys a treat
outside the home will enjoy coming to Sweet Tooth Ice Cream Shop. Our target areas
will include the two local universities and the local public schools, and families. The
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number of students attending Henderson State this year is 3,774 and Ouachita Baptist
is 1,594 (Find the Best, 2012). The total number of students attending Arkadelphia
Public School District is 2,125 (Arkadelphia Promise, 2013).The surrounding
communities around Arkadelphia will enjoy coming to the ice cream shop.
Customers look for value in a product that we will provide for them time after time
and a personal touch to enhance the wonderful experience. We make the entire visit a
show by visual stimulation, not just a routine service. Employees will engage with the
customers making them feel like part of the sweet experience. The customer gets to
participate in the production of his or her desired product. Since customers are curious,
talking through the process will enlighten them and will create a bond of customer
loyalty.
Growth Potential
Although we are not immediately going to launch in the online market, it is a goal of
Sweet Tooth to move into an online market in the near future. Ice Cream products will
be able to be ordered online and shipped in cooled containers right to the buyer’s
house. Personalized messages can be attached to the order, adding value and
personalization to the customer. Ice cream specialty shops are expected to grow 3%
through the years 2012-2016 (First Research, 2013).
Industry Trends
According to First Research industry profile an ice cream shop is classified as a
specialty eatery. Companies included in this industry are Dunkin’ Brands (Dunkin
Donuts and Baskin-Robbins), Krispy Kreme Doughnuts, and Starbucks. The industry is
fragmented: the 50 largest firms generate about 45 percent of industry revenue. Special
10
eateries appeal to a large cross-section of consumers, but families with children and
younger patrons, ages 18-24, are the ideal target market.
Sales for specialty eateries can be seasonal with peaks occurring at different times
depending on the type of menu item being served. Summer is generally the peak sales
time for ice cream parlors. Gross margins can be 85 percent of sales. Inventories,
typically about 3 percent of assets for large companies, are kept low because of the risk
of spoilage.
The industry growth rate is moderate. Demand is tied to consumer income and
tastes. A store has to have a good location, store traffic, and offer a high-quality product
to attract consumers. The profitability of individual companies depends on efficient
operations and high volume sales. Large companies have advantages in purchasing,
finance, and marketing. Small companies can compete effectively by offering highquality menu items and providing superior customer service. The industry is laborintensive: annual revenue per employee is about $50,000 (First Research, 2013). A
specialty eatery is considered non-essential by consumers and the risk is tied to
economic health. Changes in the economic environment may positively or negatively
affect industry growth, such as consumer spending on goods and services.

US consumer spending on services, a measure of demand for specialty eateries,
rose 1.9 percent in November 2012 compared to same time in 2011 (First
Research, 2013).

US personal income, which drives consumer spending at specialty eateries, rose
4.21 percent in November 2012 compared to same time in 2011 (First Research,
2013).
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
US retail sales for food services and drinking places, an indicator of specialty
eatery sales, increased 7.3 percent in 2012 compared to 2011 (First Research
Industry Profile, 2013).
The output of US limited service eating places, including specialty eateries, is
forecast to grow at an annual compounded rate of 3 percent between 2013 and 2016
(First Research, 2013).
Specialty eateries can be significantly impacted by rising costs of commodity
ingredients such as coffee beans, sugar, and dairy products. Many chains enter into
long-term supply contracts to protect themselves against fluctuations in the commodity
markets. Because consumers can be highly sensitive to menu prices, restaurants may
not be able to completely pass through any cost increases.
According to BizMiner, the specialty eateries industry has had a steady increase in
sales since the economic downturn in 2007-2009. Sales and profits have almost
doubled since 2009. The industry is projected to grow over the next 4 years.
Other Characteristics
College semesters will affect the flow of customer traffic. During the fall and spring
semesters, there will be more students present than the summer semesters. While
some students may not live far from home, the majority of students travel away from
Arkadelphia during the semester break times. Since the majority of our marketing is
aimed towards college students, we can shift the focus of marketing to accommodate
the current customer fluctuation. According to USA Today Travel, the most popular ice
cream specialty store is Dolce Gelato located in Hot Springs, AR.
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Competition
One major competitive edge of the company is the lack of specialty shop
competition. As of today, there is only one specialty ice cream shop in Caddo Valley,
River Ridge Ice Cream and Desserts is the closest competition but does not have the
space to handle a large amount of customers.
Yellowpages.com lists 3 ice cream shops that are not within a competitive distance,
located in Malvern, Arkansas. The 3 competitive ice cream restaurants are Mel’s Dairy
Bar, Baskin & Robbins and JR’s Dairy Bar. Although Dino’s Main Street Café, in
Arkadelphia, does sell ice cream after a certain time of day, Sweet Tooth is the only
specialty ice cream shop in Arkadelphia that offers customers a dine-in experience all
day long.
The generic fast food locations that sell frozen treat deserts are Sonic, McDonalds,
Wendy’s, Burger King, Chick-Fil-A, and Arby’s. Each has its own unique competitive
advantage. Sonic can make any combination of flavor slushies’ or any number of
blended treat combinations. McDonalds offers 2 classic cones for the low price of $1.
Wendy’s, Arby’s and Chick-Fil-A each offer their own unique milkshake. Another
advantage of these fast food chains is the convenience of quick service. The drivethrough option is one we cannot currently offer and will remain one advantage unable
match.
Sweet Tooth adds value to our products by offering superb customer service
and a family friendly atmosphere. As the only dine-in ice cream shop in Arkadelphia,
advertising, and word of mouth will draw in customers. With two universities and a
public school district within a short distance, Sweet Tooth can be socially responsible by
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hosting fundraisers, offering students discounts, military discounts, and creating
relationships with social groups.
Location
The graphics of the building face must be colorful and attractive. The sign and
theme will be a chance to attract the attention of the customer. The furniture and interior
decoration will be retro, 50’s style. Brightly colored booths, chrome light fixtures, style
fitting tables and chairs will be ordered from New Retro Dining. New Retro Dining offers
the help of an interior designer to choose the most effective seating layout. With a
professionals help for theme, design, colors, and layout, we can optimize our chance at
creating a pleasant and welcoming atmosphere customers will enjoy returning to. The
building size of the ice cream shop could range from as small as 80 sq. ft. to as large as
4,000 sq. ft. Since the population size is small, only a small space is required.
Arkadelphia’s Chamber of Commerce hosts the Arkadelphia Regional Economic
Development Alliance website. This query finds available property in the area matching
specifications such as: square footage, ceiling height and proximity to the interstate
and/or the airport. The search indicated there are currently no available properties
smaller than 5,000 sq. ft. in Clark County. A building larger than that size would be more
area than what would serve our purpose. Overhead per month would be higher because
the rent would be more expensive. Since starting funds will be costly, buying a building
site is out of the question. The lease will be yearly, with estimated average rent costs
around $1,500 per month.
Any location for an ice cream shop has to be visibly attractive and easily accessible
from main roads. It must be located near the flow of traffic to increase visibility with
sufficient customer parking space. Ideally, the shop would be within walking distance of
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children’s' stores, a school, or family restaurants. Main Street in Arkadelphia would be a
prime location. There is a building for sale located at 800 Main Street, Arkadelphia, AR.
Although the building is too big for our needs, 10,800 sq. ft., the building is in a great
location. The size will offer an opportunity to have parties
Marketing Strategy
Our sales strategy focuses first on providing the highest quality products and
services to our target customers. It will be our job to make sure a customer has an
enjoyable experience from the time they walk through the front door until they leave the
store. We will display our prices and products on colorfully illuminated signs on the wall
behind the counter. Nutrition facts brochures will be fixed at each end of the counter so
customers can see the ingredients and the nutritional content of our products. The
flavors of the day will be listed on the glass case where the ice cream is displayed and
above each machine that mixes the frozen custard.
We will offer three sizes of ice cream and frozen custard:

1 scoop $2.50

2 scoops $3.50

3 scoops $4.50.
Additional toppings will be offered at $.25 a scoop. Ice cream cakes will be sold
for $15.00, which will serve 8-10 people. As business increases, we will expand our
menu to include shakes and blenders, these prices will be set at a later date. Freezers
with display windows will be in the lobby of the shop and will have a variety of flavors in
take home containers: 8 oz. $3.75 and 16 oz. $6.00.
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Sweet Tooth Ice Cream Shop will use multiple methods to approach its target
markets. Since attracting customers will be the first task to overcome, we will send
messages by way of social media, Twitter and Facebook, with coupons attached to
bring in for a free product during June and July. This will generate customer awareness
and will be a trial run to see the amount of response we will receive. The announcement
will also include our Grand Opening dates. The initial cost of this offer will be more than
offset by repeat sales later.
Sweet Tooth will also send flyers out to the schools and colleges to reach two of
the target markets. We can also get permission from surrounding apartment complexes
and businesses to hang fliers to generate public awareness of the new establishment.
By purchasing air time, we can advertise with the local radio stations to reach this part
of the market. We will advertise in the local newspaper and include the free coupon, as
some customers do not use social media. To reach families, we can sponsor a local
little league team and have tastings at the area schools and parks, possibly even offer
tours to younger students of the ice cream shop with free tastings and give free
coupons.
All of these marketing campaigns will be supplemented by ongoing “brand
awareness” campaigns, with advertisements in the local paper, interviews with the
college newspaper (as the owners are graduates), and fliers posted at local popular
events. We will highlight our community service involvements as part of our “good
neighbor” approach to doing business in this area.
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Customer Demand
Our sales will be largely determined by the weather, the time of year, and when
school is in session. We estimate first year sales of $260,000, second year sales of
$273,000, and third year sales of $286,650; we anticipate following this increase on a
yearly basis.
These sales forecast are based on foot traffic of one of our competitors. Each
one of the owners observed the flow of customers at different times of the day and
various weather conditions. One observed 40 customers on a rainy day, one observed
50 customers on a sunny day after lunch, and the other observed 35 right before dinner.
With these numbers and different scenarios as to what each customer might purchase,
we estimated what we expect our sales to be for the first three years of business. The
yearly sales were based on being open 350 days a year.
We will have a family and friends opening to give the store a trial run to see what
bugs might need to be worked out. We expect our sales to be slow in the beginning and
picking up as the summer season starts. Sales will peak in July and slow in December,
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possibly January. Each year we expect to see sales increase as we begin to establish a
customer base. We will have to adjust our sales expectations as prices of supplies
increase, such as sugar and dairy products.
Pricing Structure
The current pricing strategy of Sweet Tooth is to remain competitive in our prices,
yet earn a considerable gross marginal profit on the products we sell. Since the
economy has been through a recent depression, the price of candy has reached a high
point. Vendors are having to charge more and more for the necessary ingredients and
are then passing on the burden of higher cost of goods to its vendors. The vendors in
turn have no other choice than to pass on the higher costs to us. While Sweet Tooth
absorbs most of the cost of goods sold, if the price of sugar and toppings gets too
considerably high, it will eventually have to be passed on to the customer in the form of
higher prices per scoop.
Price List
Prices will be set per scoop of ice cream, and come with one topping per scoop. One
scoop of ice cream will come with one topping choice; two scoops of ice cream will
come with two topping choices and so on. The price per scoop of ice cream or frozen
custard will be $2.50, for two scoops, $3.50, and $4.50 for three scoops. For more
toppings per scoop, there will be a $.50 charge per extra topping. We can also offer ice
cream at a wholesale price per gallon, if necessary.
A discount of 15% of the order will be applied to those who serve in the military and
can provide a military ID. A 10% discount will be given to customers who can provide a
student ID. Student ID’s from Universities, High Schools, and Elementary schools will
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be accepted. For the purpose of promoting the company name, business cards will be
collected in a jar from customers to enter a weekly drawing. The drawing price is a free
scoop of ice cream coupon sponsored by Sweet Tooth.
Brand Identity
The name Sweet Tooth was chosen to give our customers a hint of our sweet
intentions. Not only does the company serve an outstanding product, it is served with a
sweet disposition. We want our customers to leave thinking about their sweet
experience in our specialty eatery. While we want the employees to be happy, they will
not be overly courteous and invade customer privacy. While the décor of the eatery is
pleasantly attractive to the eyes, the look of the food is designed to be displayed in a
mouthwatering fashion. For those who crave exceptional service and taste, Sweet
Tooth is the place to visit.
Customer Service
The level of customer service offered by Sweet Tooth employees is very important to
the integrity and value of the company. While sticking to the tried and true mantra of
‘The customer is always right’, Sweet Tooth will always stand behind its employees in a
compromising situation. Our return policy consists of product replacement. Full refunds
will not be offered, but a credit to the store can be issued.
Management & Organization
Management Team
Krista Young, Karen Kilby, and Twila Gaines will be three equal partners in the
running of Sweet Tooth Ice Cream Shop. Krista will run the management part of the
shop with the other two responsible for training and overseeing daily operations. We will
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have part time employees that will be hired as needed throughout the year. If
necessary, additional consultation will be sought for legal matters through Jerry Myers
legal office.
Krista Young will be the primary manager due to her present job as a manager of
several employees. She is able to work full time and go to school full time to complete
her Business Administration degree with an emphasis in Finance by May 2014.
Karen Kilby will be a supervisor for the ice cream shop, since she worked in a
competitor’s shop many years ago and is more familiar with the product and daily
operations. She will complete her degree in Business Administration with an emphasis
in Management by December 2013. Karen doesn’t want to be the manager of the shop
though. She is ready to be the supervisor and trainer for the employees.
Twila Gaines will assist with daily operations as well as finances. She is currently
working on her Business Administration degree with an emphasis in Finance and will
graduate in May 2014. Twila has worked in an office setting and is comfortable
handling our everyday operations and finances.
We will each have equal responsibility for the ice cream shop, but will have our
individual specialized area. Each owner is going to give $10,000 startup investment and
finance additional amounts through a bank. We are expecting to live off of savings for
the first year, as we are not expecting to make a profit until year two.
Organization
The legal structure for this business will be a Limited Liability Company. The owners
are Krista Young, Twila Gaines, and Karen Kilby. A LLC structure is used to prevent
excess liability on the owners. Each owner can act on behalf of the company, take out
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loans and make decisions that will affect and be binding on all the partners. This is the
easiest form of legal structure for our needs. Company structure and goals will change
with the growth of the company.
Operational Plan
Personnel
Industry employment growth has declined since 2008. Specialty shop employment
dropped 8% and plunged to its lowest at -5%. After staying below average for several
years, the current employment rate has risen to 4% and is now constant (BizMiner,
2012). Due to this being a seasonal business, part time employees will be all that is
required. Three to four employees will work in 4 hour shifts. A maximum 2 shifts per day
will help to prevent overtime expenses. Since the positions are part-time, we decided to
pay a quarter over minimum wage to keep staff.
No special skills are required to work part-time in the ice cream shop. Benefits are
not available for part time employees. At the beginning of business, a minimum number
of employees will open the business and more will be hired as work increases.
Sweet Tooth Ice Cream Shop will be open 65 to 70 hours a week and most days of
the year. The business will be closed on major holidays such as Thanksgiving and
Christmas. During the summer we will extend our hours in the evening to accommodate
our customers’ needs.
One goal is staff retention. In order to have this retention, we will hold weekly staff
meetings to hear employees input and develop an employee recognition program within
the first three months of business. Part time employee payroll costs are expected to be
$1,800 per month.
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Equipment, Technology, & Inventory
Product will be kept on hand and reordered on a weekly or as needed basis, since
the product has greater risk for spoilage if not used. Inventory will account for less than
3% of assets. Our products will be served out of two large chest freezers in the front of
the establishment and stored in a large walk-in cooler after business hours. The large
freezer will keep additional inventory until it is needed out front. A cash register will be
needed for the order area, and an inexpensive computer for the tracking and reordering
of supplies. We will eventually expand to a drive through window and will need an
additional cash register.
A batch freezer will be needed to mix the flavor into the custard to make it servable.
Equipment suppliers will be AliExpress, based in China, and Central Restaurant
Products, based in South Carolina. Since ice cream has a short shelf life, products
purchased will be pushed through the operation channel and sold to customers as soon
as possible.
Legal
We have contacted an attorney to establish the Limited Liability Company for the ice
cream shop and will keep in contact with him for any advice that we may need in the
future.
Exit Strategy
Should Sweet Tooth Ice Cream Shop not turn a profit within the first year, the
partners will seek alternatives regarding further operation of the shop. Options will be to
continue with the business while making adjustments to try to make a profit and cut
expenses. Any of the partners will have the opportunity to sell their portion of the
22
business to either an outside individual (approved by the other partners) or to another
partner. The last resort option would be to sell the business or close completely. All of
the options will be discussed with legal counsel prior to making a decision. If the
business is to close, all assets will be liquidated to help pay off debt that has been
incurred.
Financial Plan & Projections
Startup costs
Cost from
Item# Description
Lowest Bid
Vendor
1
16 Can Illuminated Dipping Cabinet
3,208
2
8 Can Illuminated Dipping Cabinet - 2 units
3,950
3
Dipper Well - 4 units
440
4
Upright Pie & Freezer Display Case
5,817
5
Refrigerated Pastry Display Case
4,663
6
27" Fountainette Cabinet
1,731
7
Drop-in Ice Cream Bar Freezer
1,238
8
Single Door Reach-in Freezer
1,903
9
Single Door Reach-in Flash Freezer
3,219
10
Single Door Reach-in Refrigerator
1,593
11
6 × 8 ft - 15 degree Walk-in Freezer
4,310
12
Medium Capacity (1 phase-air cooled) Ice Machine
2,360
13
Soft-serve (3 Phase-AC) Machine w/Faucet - 2 units
17,360
Dispensing & Topping Units
14
Dip-Coat Warmer - 2 units
242
15
Butterscotch & Fudge Warmet with Pump - 3 units
587
23
Cost from
Item# Description
Lowest Bid
Vendor
16
Milk Shake Machine
525
17
5-quart Mixer
384
18
Spoon Dispenser - 4 units
33
Sink Units
19
2-Compartment Sink
1,472
20
Counter MTD 2-Comp Hand Sink
295
21
Wall Mounted Hand Sink
252
Beverage Dispensing Equipment
22
23
24
Soft Drink Dispenser with Ice Bin (supplied by Coca-Cola at no
charge)
Carbonator with Double Check Valve (supplied by Coca-Cola
at no charge)
Wall Mounted Syrup Pumps (supplied by Coca-Cola at no
charge)
0
0
0
25
CO-2 Tanks (supplied by Coca-Cola at not charge
0
26
Automatic Coffee Maker
472
27
Coffee Grinder
534
28
Cup Dispensers - 10 units required
388
29
Lid Organizer
57
Storage Equipment Units
30
6 × 8 Freezer Storage Shelving Set
628
31
18" × 36" Storage Shelf Unit - 4 units required
685
32
18" × 38" Storage Shelf Unit - 4 units required
774
33
42" Overshelves - 2 units required
292
34
Electric Can Opener
47
Sales & Display Equipment
24
Cost from
Item# Description
Lowest Bid
Vendor
35
Cash Register - 2 units required
5,500
36
Menu Board - 1 8-panel unit and 1 4-panel unit required
5,000
37
Quality Statement Panel
90
36" × 33" Topping Unit (Cabinet work by gen. contr.-includ. in
38
his quote)
0
39
Dry Topping Bowls with covers - 8 units required
70
40
l/9th S/S Insert Pan - 4 units required
19
41
36" Sneeze Guard Assembly
1,410
Miscellaneous Equipment
42
Work Table
797
43
File Cabinet
250
44
7-Person Locker
174
45
Safe
1,000
46
Tackboard
150
47
Mop & Broom Holder
16
48
Acrylic Cone/Bowl Holders - 18 units required various sizes
500
49
Personal Computer, Printer and Software
3,000
50
2 Haagen-Dazs Logo Neon Signs (Incl. freight)
1,250
51
Translites (pictures/ads) for Menu Boards - 12 units incl. freight 750
52
Freight and Sales Tax for Major Equipment Purchased
Total
6,670
$86,105
A financial plan and estimated projections are attached.
25
Sweet Tooth Ice Cream
Menu
Where customers are invited to create their own adventure. The only limitation
is your imagination.
ICE CREAM & FROZEN CUSTARD
By the scoop in cones or cups.
One Scoop -- $2.50 ~ Two Scoops -- $3.50 ~ Three Scoops -- $4.50
Available: Cake or Sugar Cones
Waffle cones .50 extra
Toppings available: Hot Fudge, Strawberry, Caramel, Pineapple, Peanut Butter,
Marshmallow, Chocolate Chips, Butterscotch, Crushed Peanuts, M&M's, Wet
Walnuts, Reese's Pieces, Chopped Almonds, Butterfinger, Snickers, Crushed Oreo
Cookies, Cookie Dough, Chocolate Syrup by Ghirardelli, whipped cream and
cherries.
26
References
(n.d.). Retrieved from Ashby's Sterlings Ice Cream:
http://ashbysicecream.com/events.asp
(n.d.). Retrieved February 27, 2013, from Homes.com:
http://www.homes.com/listing/176934297/800_Main_Street_ARKADELPHIA_AR
_71923
(n.d.). Retrieved February 27, 2013, from Yellowpages.com:
http://www.yellowpages.com/arkadelphia-ar/fastfood?g=Arkadelphia%2C+AR&q=fast+food+
(n.d.). Retrieved February 27, 2013, from National Ice Cream Retailers Association:
http://www.nicra.org/startbus.html
(n.d.). Retrieved February 13, 2013, from E-creamery: http://www.ecreamery.com
(n.d.). Retrieved 2013 , from Hoover's Inc: http://www.hoovers.com/industryfacts.specialty-eateries.1445.html
(2012). Retrieved from AliExpress: http://aliexpress.com/item/2012-New-ArrivalHICS180-Display-Refrigeration/562008255.html
(2012, December). Retrieved January 31, 2013, from BizMiner:
http://www.bizminer.com
(2012). Retrieved March 28, 2013, from USA Today Travel:
http://travel.usatoday.com/destinations/greatamericanbites/icecream/39857952/1
Industry Financial Report. (2012, December). Retrieved from BizMiner.
Perry's Selections. (2012). Retrieved from Perry's Ice Cream:
http://www.perrysicecream.com/wp-content/uploads/2012/06/Product-Guide2012.pdf
(2013). Retrieved from Central Restaurant Products:
http://www.centralrestaurant.com/Ice+Cream+Freezers+and+Dipping+Cabinetspl312.html
(2013). Retrieved from Custard Base: http://www.marntzu.hubpages.com/hub/FrozenCustard
(2013). Retrieved from The Ice Cream Club: http://www.icecreamclub.com
Business Plans Volume 3. (2013). Retrieved March 11, 2013, from Reference for
Business: http://www.referenceforbusiness.com/business-plans/Business-PlansVolume-03/Ice-Cream-Shop.html
First Research Industry Profile. (2013, December 10). Retrieved January 31, 2013, from
First Research: http://www.mergent.firstresearchlearn.com.Industry_full.aspx?pid=414
Arkadelphia Chamber of Commerce. (n.d.). Retrieved February 27, 2013, from
Arkadelphia Allliance: http://www.arkadelphiaalliance.com/pages/chamberscommerce/
Arkadelphia Regional Economic Development Alliance. (n.d.). Retrieved February 27,
2013, from Arkansas Site Selection:
http://arkansassiteselection.com/areda/search_map.aspx?searchtype=s&maptyp
e=county
Find The Best. (n.d.). Retrieved February 13, 2013, from Colleges:
http://colleges.findthebest.com
27
Ice Cream. (n.d.). Retrieved March 11, 2013, from International Dairy Foods
Association: http://www.idfa.org
Strauss, V. (2010, July 23). The Answer Sheet. Retrieved March 11, 2013, from
Washingon Post: http://voices.washingtonpost.com/answer-sheet/history/thehistory-of-ice-cream-july.html
28