smoothie bar-celona smoothie & juice bar business plan

Smoothie Bar-celonaSmoothie & Juice Bar Business Plan

Copyright © 2012 Smoothie Bar-celona. All Rights Reserved.

Business Proposal

• Smoothie-bar, named Smoothie Bar-celona, selling a variety of mixed and instantly prepared, 100% natural fruit juices and Smoothies to take away.

• The target group is composed of health conscious consumers looking for convenient fast-food alternatives

• The healthy benefits and tastes of our juices are the core of our organization and will be transmitted through our efficient service.


The Business

Vision• “To be perceived as the provider of the most delicious,

convenient and healthy grab and go alternative in Barcelona”.

Mission• “To provide a healthy, tasty and refreshing experience with

our 100% natural fruit juices and smoothies to take away. To serve and satisfy the nutrition needs of health conscious consumers through the high quality of our products. We contribute to make Barcelona a healthier city.”


Industry Analysis

Five forces: • Smoothie industry is in a growing stage, with few players;

differentiation is key.

Moderate Competitor

Rivalry

Potential Entrants

Buyers

Substitutes

Suppliers

High

Moderate

High

Low

Moderate Competitor

Rivalry

Potential Entrants

Buyers

Substitutes

Suppliers

High

Moderate

High

Low


Secondary Research

Consumer Trends:

• Constant growth rates of the juice market in Spain! • Soft drink market in Spain will rise up to 9 billion euros• “Resilience of health products during the recession to

customers´ desire to maintain their health / wellness habits while avoiding risky cheaper options”

• “Growing demand for “easy health” (convenience) in the shape of functional foods”

• “Widespread consumer interest in products positioned as health-boosting” → preventative care

• “Health benefits are driving sales of functional foods and beverages”→ value-added-products


Primary ResearchSurvey Results (90 respondents)• Positive attitude towards Smoothies / freshly made natural

juices• High demand – not saturated / growing market• Accepted by the target group / health-conscious people

perceived as healthy fast-food alternative (tourists and short-/long-term residents)

Main reasons for not consuming:• Doubts on quality / No confidence in cleanliness• Too expensive• Not available (in the variety that I would like them)


Target & Strategy

Low Cost Strategy Differentiation

Mass

“Traditional consumers of

drinks”

Coffee Beer

Regular sodasWater

Packed fruit juicesSoft drinks

Yogurt

Niche

“People in the healthy living

trend.”

Energetic drinksLight sodas

Vitamins

100% Natural fruit juices to grab and go

• “Smoothie Barcelona’s customers are likely to be followers of a healthy type of lifestyle. Additionally and as a result of the scarce restrictions that the product has in terms of age, gender and benefits, a secondary will be the tourists that come to city and young professionals that are adopting new trends”.


Positioning+ Aligned with healthy trend

- Aligned with healthy trend

Smoothie

Bar-celona

Expensive

Smoothie

Bar-celona

Cheap


Strategy• Focused Differentiation Strategy

• Strategically increase the number of locations within a short time-frame, expanding the reach, making the products more available to the consumers.

• Take advantage of economies of scale

• Strong brand management

• In comparison to the first store, the following kiosks are small in size, investment and running costs, and are flexible and easy to set-up.


Competitive Advantage

• Excellent value-for-money we offer to our customers • Superior product quality and positioning combined with a

price lower than that of the competition • Cost control and Economies of Scale • Diversified menu• Unique high traffic location • Clear shaped image and brand experience aligned to healthy

lifestyle concept


Promotion

• Brand proposition:

“Smoothie Barcelona is the most convenient, fresh and tasty option to nurture and energize your body and immune system at a reasonable price”.

Promotion:• Sampling • Flyers• Bonus / Loyalty Cards• Homepage• SEM / SEO • Newsletter• Sweepstakes• Alliances


Homepage

www.

.com

http://www.snellow.nl/chris/index.html


Operations

Value chain:

Reception, storage and quality control of fruits

and other raw materials

Inbound logistics

Preparation of SmoothiesPackaging

Maintenance of facilities

Sales

Procurement

Human Resources

Reception, storage and quality control of fruits

and other raw materials

Preparation of Smoothies.

Packaging. Maintenance of

facilities.

Marketing Customer Service

Procurement

Accounting & Finance

Human Resources

Operations


Initial Investments• The main investment required to start the business is composed

by the following aspects:

• 2nd Store: 31.787 €

• 3rd Store: 34.966 €

Item Cost €

Licenses & Legal 8,000

Store remodeling and installation costs 12,000

Operation and management equipment 6,780

Consulting 3,000

Marketing 9,000

Other 3,000 Total 41,780


Operations

• Processes / Diagram path

Production process pathPath for storage fof cleaning and safety materials pathPath for storage of inputs and raw materials

Storage of cleaning and safety materials

Storage of raw materials

Storage of complementary

products

STORAGE AREA

Customer area / Bar customer

Frozen Raw Materials

Production Area

Cleaning area

Finish Products

area

5m 3m

5m

Storage Operation

Transport Inspection


Operations

• Project Management35 56 56 70 70 77 77 98 98 112

35 56 56 70 70 77 77 98 98 112

35 56

77 9835 49 49 91

14 28

56 70 70 11221 35

35 49 49 56 56 63

84 98 98 105 105 112 112 1190 7 7 14 14 28 28 35

35 56 56 63

112 1190 7 7 14 14 28 28 35

84 105 105 112

14 42

84 112

5

9

16

11

13 14 156

7

4

8

1 2 312

20

19

10

17 18

Item Activity Time (days)

1 Invest the shareholderes equity to create the business 72 Register the Company "Smoothie Bar-celona" 73 Research for a bank loan 144 Get a loan (sign contract with the bank) 75 Evaluate and select location for store 216 Rent of the selected location 14

13 Obtain construction license 714 Execution of construction and remodeling stage 2115 Installation of equipment and furniture 1420 Opening Day 7


Organizational Structure• Months 1-6: Shareholders will also

work in the operation activities of the business

• After 6th month: Incorporation of a General Manager plus two assistants

• After two years: Incorporation of a Assistant Manager plus one Assistant for the second kiosk.

General Manager

Store 2Coordinator

Store 1Assistant 1

Shareholders

Store 1Assistant 2Store 2

Assistant 1

General Manager

Share holders

Assistant 2Assistant 1


Financial Plan

• Capital Structure First store:Initial investment 41,780€ Working Capital 28,220€

Monthly Loan Payments 1,216.88€

Loan for 2nd store 32,000€Annuity for 3rd store

Smoothie Bar-celonaCapital Structure

Loan57%

40,000 €

Equity43%

30,000 €

Amount € %María del Carmen Matías 10,000 14%Christian Höller 10,000 14%Luis Fernando Recio 10,000 14%Bank Loan 40,000 57%

Total 70,000 100%

Capital Structure


Break-even Analysis

• Contribution margin: 2,75 €• To reach a positive cash flow in a yearly basis, Smoothie Bar-

celona has to sell at least 37.634 units or 131.718€

Cash Break - Even

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

10,000 20,000 30,000 40,000 50,000 60,000Units Sold

Euro

s

Gross Profit Fixed Costs


Financial Plan

Sales Forecast

Sales Forecast Smoothie Bar-celona

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

ene-1

1

mar-

11

may-1

1

jul-11

sep-1

1

nov-1

1

ene-1

2

mar-

12

may-1

2

jul-12

sep-1

2

nov-1

2

ene-1

3

mar-

13

may-1

3

jul-13

sep-1

3

nov-1

3

ene-1

4

mar-

14

may-1

4

jul-14

sep-1

4

nov-1

4

ene-1

5

mar-

15

may-1

5

jul-15

sep-1

5

nov-1

5

1 store + 1 kiosk1 store

1 store + 2 kiosk


Profit and Loss Accounts

Smoothie Bar-celonaNet Profit & Dividends

0 1,791 9,087 40,286

88,471

(50,000)

0

50,000

100,000

150,000

200,000

2011 2012 2013 2014 2015

Net Profit

Dividends

2011 2012 2013 2014 2015Net Profit (5,859) 3,582 18,173 80,572 176,943% of Sales -4.5% 2.5% 6.8% 20.4% 26.3%


Risk AnalysisProject Valuation

• The valuation indicates that the project is economically feasible

• Develop a Contingency plan

Realistic Optimistic PessimisticNet Present Value € 72,375 241,355 -74,244 Internal Rate of Return 25.50% 58.60% -11.78%Profitability Index 173.23% 577.68% -177.70%Investment Recovery Time 4.1 Years 2.8 Years > 5 Years

Scenarios


Ratio Analysis

• Financial ability to pay its short term debts.• Big part of the liabilities that are accounted at the end of each

year is assign to the concept of dividends payables.• The assets are more productive every year.• The business is generating enough profits to finance its own

expansion

2011 2012 2013 2014 2015Short - term liquidityWorking Capital 14,173 7,216 10,771- 3,913 93,093

Long - term credit riskDebt Ratio 0.53 0.64 0.46 0.40 0.37

ProfitabilityReturn on assets -0.12 0.09 0.43 0.91 0.97Return on equity -0.20 0.12 0.61 2.69 5.90

Financial Ratio Analysis

smoothie bar-celona smoothie & juice bar business plan

Documents

smoothie industry

business proposal smoothiebar

smoothie barcelonas

healthy benefits

healthy grab

health conscious consumers

healthy living trend

increasing healthy trend