Looking for a frozen custard shop business plan template? The Toolkit builds yours with your own numbers.
Opening a food business costs more than most people plan for, and the margin for error is thinner than the menu prices suggest. The first six months can drain your reserves before you have built any real customer base.
This sample plan shows what a funded food and beverage business plan actually contains. You will see real financial targets, a practical staffing model, and a marketing approach that builds long-term repeat business rather than relying on expensive new customer acquisition.
Work through each section of Bauman’s Frozen Custard's plan below. When you are ready to build your own, our Business Plan Toolkit gives you the same structure with built-in financial tables and a step-by-step walkthrough.
Executive Summary
Bauman’s Frozen Custard and Italian Ice will be a scoop shop located on a busy street in downtown Eugene, Oregon. Bauman’s is a start-up shop and has long-term presence plans in the Eugene/Springfield market. Along with a $15,000 investment by Matthew Bauman, Bauman’s Frozen Custard plans to secure the rest of its start-up financing through a combination of investment and debt to establish the location. Bauman’s is looking to bring Frozen Custard and Italian Ice to the Eugene market, where the product is currently unavailable. The company’s initial offerings will be a mixture of rich, creamy Frozen Custard and bright, sweet Italian Ice in a selection of sizes. Through selective marketing we intend to create a loyal customer base.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $276,300 | $318,900 | $352,400 |
| Gross margin | 70% | 71% | 71% |
| Net profit / (loss) | $42,200 | $54,300 | $49,200 |
Company Overview
Bauman’s Frozen Custard is a frozen custard shop operating in Eugene, Oregon. The business was established to serve a growing demand for quality, specialist services in this sector, where many customers are underserved by larger, less responsive providers.
Mission: To deliver consistent, high-quality service to every client, building long-term relationships based on trust and results.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, build initial client base, reach monthly break-even |
| Year 2 | Grow revenue by about 15 percent, expand service capacity, hire additional staff |
| Year 3 | Consolidate market position, target new customer segments, achieve strong net margins |
Market & Customer Analysis
Industry context
Frozen custard carries a low ingredient cost per cup, so the shop's prime cost (custard ingredients plus wages, against sales) should be easier to control than a restaurant's. A rule of thumb operators often use is to stay under 60%, with 65% as the upper limit.
Bauman's sits just above the 60% target in its early years. Year-one product and food costs of $82,900 plus wages of $86,700 total $169,600, which is 61% of $276,300 revenue, and year two is 62%. In year three, $102,200 of food and $129,600 of wages make $231,800, or 66% of $352,400, just past the upper limit.
The plan does not give a reason for that last step. Food cost holds at 29 to 30% of sales, so the rise is payroll: wages go from 31% to 37% of revenue, as the scooping team grows from four to five and an administrator is added. Net profit drops from $54,300 in year two to $49,200 in year three.
Rent is the other figure worth a look. Rent and utilities of $36,200 are 13% of year-one sales, above the 10% that many operators use as a rule of thumb for occupancy. Monthly fixed costs of $12,600 against an $18,000 break-even point give a 70% contribution, and year-one sales of $23,025 a month could fall by about 22% before the shop stops covering its costs.
Target customer profile
Bauman’s Frozen Custard's primary customers are residents, families, students, and downtown visitors in the Eugene/Springfield area looking for a dessert they cannot get elsewhere in town. These customers prioritise quality and freshness over lowest price and are willing to pay a moderate premium for a richer product.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Ice cream parlors | Established local following, wide flavor range | No frozen custard or Italian Ice |
| Fast-food soft serve | Low prices, convenient | Lower-quality product, little choice |
| Grocery store ice cream | Cheapest option, eaten at home | No fresh-made product or scoop-shop experience |
Bauman’s Frozen Custard's advantage: Specialist focus, personal service, and deep knowledge of the target customer segment are the primary competitive differentiators.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong service quality; clear target market positioning | Weaknesses: Limited brand recognition at launch; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing target market; underserved customer segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic conditions affecting discretionary spend; potential new market entrants |
Sales & Marketing Plan
Bauman’s Frozen Custard reaches its target customers through a combination of digital marketing, referral programmes, and direct outreach. The primary acquisition channels are local search (Google Maps and organic SEO), word-of-mouth referral from satisfied clients, and targeted paid advertising on social media platforms where the target customer is active.
Pricing approach: Pricing is set at a modest premium to the local market average, reflecting the specialist quality and reliability of the service. All prices are shown clearly on the menu board.
Sales process:
- Customer orders at the counter from the menu board
- Custard or Italian Ice served in the chosen size
- Payment taken at the counter
- Loyalty card stamped to reward repeat visits
Operating Plan
Bauman’s Frozen Custard operates from Eugene, Oregon with a lean team focused on service delivery quality over volume. Standard operating procedures cover food safety, ingredient prep, customer service, and daily opening and closing checks.
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Founder / Managing Director | 1 | 1 | 1 |
| Scoopers and counter staff | 4 | 5 | 5 |
| Administration / support | 0 | 0 | 1 |
Key suppliers and partnerships: Bauman’s Frozen Custard maintains relationships with a small number of trusted suppliers and subcontractors to ensure consistent service quality and the ability to manage periods of high demand.
Management Team
Founder Matthew Bauman brings relevant industry experience and a clear understanding of the target market. He has worked in food service prior to starting the business and brings both technical expertise and commercial knowledge to the leadership of the organisation.
Hiring plan: As the business grows, the priority is to hire people who share the company's commitment to quality and client service. The business will promote from within where possible and invest in staff development to reduce turnover.
Financial Plan
3-year profit and loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $276,300 | $318,900 | $352,400 |
| Product and food costs | $82,900 | $92,500 | $102,200 |
| Gross profit | $193,400 | $226,400 | $250,200 |
| Gross margin | 70% | 71% | 71% |
| Salaries and wages | $86,700 | $104,200 | $129,600 |
| Marketing and advertising | $9,600 | $10,200 | $10,900 |
| Rent and utilities | $36,200 | $37,300 | $38,400 |
| Other operating costs | $18,700 | $20,400 | $22,100 |
| Total operating expenses | $151,200 | $172,100 | $201,000 |
| Net profit / (loss) | $42,200 | $54,300 | $49,200 |
Break-even analysis:
- Estimated monthly fixed costs: $12,600
- Monthly revenue required to break even: $18,000
- Break-even is projected within the first year of trading.
Need your own frozen custard shop business plan? Click here for the frozen custard shop business plan template.